Bank stocks to buy with a good dividend yield, a P / E of only 5 and low NPAs

0

Fantastic results for the quarter ending September 30, 2021

The bank reported a very good quarter ending September 30, 2021. The bank’s net profit increased from Rs 125 crore to Rs 119 crore during the corresponding period of the last quarter. The net interest margin also increased from 3.03% to 3.31%. Overall, the numbers were quite good in the context of the observed economic growth.

Turnover was placed at Rs 1.31,390 crore for the quarter ended 30.09.2021. The bank also introduced 2,288 points of service with 857 branches, one extension kiosk, 952 ATMs and 479 recyclers across India as of 30.09.2021. The 36 e-lobbies and 428 mini e-lobbies activated by recyclers.

NPAs under control

NPAs under control

The bank saw its non-performing net assets decline to 2.82% in the quarter ended September 30, 2021, from 3.00% in the June quarter. The bank also has very effective risk management systems. Credit exposure above Rs 25 lakh is rated according to borrower and credit facilities below Rs 25 lakh and all schematic advances including farm credit proposals are rated under “based approach”. on the pool ”. In addition, the “KBL96” scoring model is developed for all sanctions within the framework of the digital journey. The bank also has an Enterprise Level Fraud Risk Management System (ELFRMS) to effectively monitor / prevent suspicious online transactions made by customers and other transactions on digital channels.

Buy Karnataka Bank Stock, as stocks remain undervalued

Buy Karnataka Bank Stock, as stocks remain undervalued

Karnataka Bank shares currently trade at a book price of only 0.31 times and at a price / earnings multiple of only 4 times the futures price multiples over a year. The bank has a strong net worth, and the dividend yield on the stock itself is around 3%. The stock is one of the most undervalued stocks in the banking industry. Once the action catches the eye, it has the potential to straighten out. The stock is a good bet for investors who wish to invest over a period of 3 to 4 years. He also has a strong capital adequacy and high net worth. Buy Karnataka Bank stock, which is expected to experience strong growth as economic momentum continues.

A little cautious in the markets

We remain a little cautious on the markets with the Sensex at 58,000 points. We advise investors to buy only small amounts, as the returns seen in 2021 are unlikely to occur in 2022. It’s time to buy only small amounts and avoid large-scale exposure. Buying in falling markets would be a good strategy.

Warning

Warning

Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author and the brokerage are not responsible for any losses caused as a result of decisions based on the article.

Share.

About Author

Comments are closed.