Future of Karnataka Bank?

Query: I have 100 shares of Karnataka bank , what is the future of this bank? should I hold or sell? Kesavan

Thebullishtrends: Karnataka Bank share price closed yesterday at Rs.255.75. Karnataka Bank share has given 68.20% of returns to its investors in a year time. Karnataka Bank Limited, a leading 'A' Class Scheduled Commercial Bank in India, was incorporated on February 18th, 1924 at Mangalore, a coastal town of Dakshina Kannada district in Karnataka State. The bank took shape in the aftermath of patriotic zeal that engulfed the nation during the freedom movement of 20th Century India.

Over the years the Bank grew with the merger of Sringeri Sharada Bank Ltd., Chitladurg Bank Ltd. and Bank of Karnataka.Now the bank is having a national presence with a network of 413 branches spread across 19 states and 2 Union Territories.

Karnataka bank recently issued equity shares to International Finance Corporation (IFC) Washington it issued 63,73,000 equity shares of Rs. 10 each on preferential basis, issued at a price of Rs.225 per share including the premium of Rs.215 per share. S IFC is also subscribing to Bank's Upper Tier 2 Bonds to the extent of USD 10 million. With the issue of these shares and the bonds the Capital to Risk weighted Assets Ratio (CRAR) of the Bank will improve significantly.

Karnataka Bank is performed well in the last Q2, it improved it's profit margins. The bank is trying to improve its income. We advised you to hold this scrip for decent gains over the period of time.