Buy Karnataka Bank; target of Rs 195: Axis Direct
Axis Direct’s research report on Karnataka Bank
Karnataka Bank (KBL) operating parameters were strong on all fronts with loan growth acceleration, margins improvement, strong fee income growth and moderation in slippages. Commentaries on each of the above key parameters remain encouraging. Higher credit costs however impacted profits during the quarter. Capital position remains strong. With huge liquidity in terms of deposits, the new management with focus on credit growth along with branch expansion envisages business growth of 17% by FY18 to Rs 1,10,000 cr.
We retain our buy rating and assign P/ABV of 1.05x arriving at a target price of Rs 195/share.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.