Karnataka Bank - Credit, Deposit Growth To Be Strong: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Nirmal Bang Report.We recently hosted the management of Karnataka Bank Ltd. as part of our week-long investor conference. The management is confident about the overall business environment in terms of credit growth and deposit growth. Also, it does not envisage any major slippages going forward and expects the same to be on a downward trajectory. Moreover, the return on asset on a sustainable basis is likely to be in the range of 1.14% to 1.25% going forward. Management Meet Key Takeaways -On business growthFocus will be on growing agri loans, contractor loans, gold loans, auto loans and home loans. The bank has already automated the underwriting process for retail loans. The micro small and medium enterprise portfolio is also faring well and will be in focus going forward. Home loans comprise ~16% of the book. In the housing segment, focus is on the premium segment as well as the affordable housing segment. Overall, the management expects credit growth to be ~15% going forward.Asset qualityThe management highlighted that all the negative surprises on slippages are largely over.Karnataka Bank has been doing some stress asset identification and has also been in an accelerated provision mode.The management indicated that it would take almost a year for the draft on expected credit loss and another year for the final guidelines to be released; it expects the process to be completed within three years. The management expects gross/net non performing asset to be below 3.0%/1.5% going forward..Click on the attachment to read the full report:.ICICI Bank Management Meet Update - Positive Growth Outlook, Earnings Trajectory: Nirmal Bang.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Karnataka Bank - Credit, Deposit Growth To Be Strong: Nirmal Bang

The return on asset on a sustainable basis is likely to be in the range of 1.14% to 1.25% going forward.

Choose a plan