Industry Profile: The banking industry is different from other industries. No other industries come into direct contact with the general public. Banking is a business where the Raw material and Final product are the Same. Money. The assets in banking are far different from other businesses. No other business is as essential as banking in the Economy. That is why they called it the equivalent of the economy. The health of the economy is often analyzed from the health of Banking. As Banking comes into contact with the general public and industrial customers, it is essential for Govt also. No other businesses hold this level of importance. Naturally, it attracts the highest amount of regulation.
Banking is a Good industry where you can earn money. But for that, you need to do the right things. The reason is that Banking is not Manufacturing, where you buy Raw material, process it, and then manufacture something else. Banking is simply the process of earning money from the money you have. If you do it right, you are a winner. An essential thing in this is pretty simple. Make successful Formula and keep repeating it until you succeed. In the language of Saurabh Mukherjee, Ambit Capital, The word repeatedly mentioned in the context of HDFC BANK is execution. For Axis Bank, you may realize that it is Consumer satisfaction and Technology.
As India is emerging economy, the healthy banking is more and more important for Indian economy.
Running a bank is as tricky as analyzing a BANK and its Fundamentals. Many Small, Check and Uncheck, many small things, Many parameters to check. But there is a reason for that as Bank business comes into contact with Public money which makes it essential role player in Country’s economy. If handled by the wrong person, you are inviting disaster. So for running the Bank, Management and how they run it is crucial. The parent Institution is also essential for the bank as it can use a brand name or develop one. If they are strong, the bank will eventually follow it.
Company Profile: The Karnataka Bank Limited was incorporated in 1924 and is headquartered in Mangalore, India.
The Karnataka Bank Limited provides business and personal banking products and services in India. The company operates in four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. It accepts savings and current accounts, cash certificates, fixed and cumulative deposits, non-resident rupee accounts, ordinary non-resident accounts, and foreign currency accounts. In addition, it offers loan products, such as a vehicle, home, education, personal, MSME, mortgage, women entrepreneur, gold, and other loans, as well as loans against property and fixed deposits. The company also provides debit, credit, gift, deposit only, image, and travel cards, life, general, and health insurance products; investments services; and remittance and other services. In addition, it offers forex services, which include pre and post-shipment, export collection bills, export LC advising, inward remittance facility, import letter of credit, import bill collection, buyer’s honor, and outward remittances.
Further, the company provides a point of sale service for merchant’s payment solutions: and KBL e-COLLECT, a fee payment processing platform, which enables the institution to offer parents and students a convenient way to pay their fees through a range of payment options. Additionally, it provides various loans to agriculture; and other services, such as Internet banking, mutual funds, Demat services, locker facility, and funds transfer services. As of November 16, 2018, the company operated through a network of 824 branches.
Shareholding Pattern: BSE Filing
Financials and ratios: [table id=206 /]
Future Prospects: A Bank with good leverage, Liquidity in excellent shape is a good bank poised for growth. No excessively lent, nor keeping huge cash with itself. Many banks are fighting with NPA issue. Karnataka bank is a private sector bank, and 3% is not good.