India's Karnataka Bank hits record high; Ambit Capital initiates coverage with 'buy'

Karnataka Bank

12/01/2024 07:57

** Shares of Karnataka Bank  KBNK.NS  up 8.4% to 274.80
rupees, hitting a record high 
    ** Ambit Capital initiates coverage with a 'buy' rating and
target price of 340 rupees, ~24% higher than current price
    ** Initiatives on loan sourcing and collections, and secured
loan book to drive credit-cost decline - brokerage
    ** Adds improvement in tech, new channels and products like
co-lending to better competitive position, drive 18% compound
annual growth rate of loans over FY23-26E 
    ** Net interest margin to settle 70 bps higher than
pre-COVID levels due to better credit-deposit ratio - Ambit 
    ** KBNK on track for best day since late June 2023 
    ** Busiest session since late September; more than 10.5 mln
shares change hands, over 5 times the 30-day avg
    ** Stock rose 54% in 2023, third straight year of gains
    

 (Reporting by Dimpal Gulwani in Bengaluru)
 ((dimpal.gulwani@thomsonreuters.com))