BRICS Securities: Buy Karnataka Bank at Rs 129-130

Bangalore: Abhijit Paul of BRICS Securities is very optimistic about Karnataka Bank and has recommended buying Karnataka Bank in the range of Rs 129-130, using a stop loss at Rs 125 and on the upside the target are at Rs 139 and 142. The previous day close price was Rs. 130.25.

Karnataka Bank a premier bank,have developed comprehensive range of customized products and services suitable for every kind of market, trade or perceived need - Business or Personal. They include, borrowing facilities, deposits, providing optimum returns on surplus funds or helping with overseas transactions. Their mission is to be a technology savvy, customer centric progressive bank with a national presence, driven by the highest standards of corporate governance and guided by sound ethical values.

The bank posted a net profit of Rs. 204.61 crore for the year 2010-11 recording a growth rate of 22.43 percent. The business turnover of the Bank has touched Rs.44,684 crore registering a growth rate of 17.08 percent. On an year on year basis, the deposits of the Bank grew from Rs. 23,731 crore to Rs.27,336 crore (15.19 percent increase) and advances grew from Rs.14,436 crore to Rs. 17,348 crore (20.17 percent increase).

The Bank introduced a new Savings deposit scheme called KBL Vanitha exclusively for women, with insurance coverage for jewellery worth Rs.50,000. The Bank is eyeing a business turnover of Rs.54,000 crore for the year 2011-12 with deposits of Rs.32,500 crore and advances of Rs.21,500 crore.