Bank stocks have been buzzing in the recent times on the back of logging healthy earnings growth during the third quarter ended December 2022 (Q3 FY23). Amid the rise in the banking stocks, Karnataka Bank, South Indian Bank and UCO Bank shares have given multibagger return during the last six months.
South Indian Bank: The private lender reported a net profit of ₹102.7 crore in the quarter ended December, compared to a net loss of ₹50 crore in the same period last year, and a profit of ₹223 crore in the September quarter. Its total operating income increased about 13% to ₹1,898 crore from ₹1,671 crore year-on-year (YoY).
Karnataka Bank: Karnataka Bank witnessed a growth of 105% in its net profit for the third quarter ended December 2022 to ₹301 crore as compared to ₹146 crore during the same period last year. The asset quality improved as gross non-performing assets (NPA) declined to 3.28% from 3.36% as compared to the sequential previous quarter and net NPA also dipped to 1.66% from 1.72%.
“Strong NII growth in Q3 and lower opex kept operating performance strong for Karnataka Bank with its C/I ratio holding below 50%. Strong PPOP combined with moderate provisions kept profitability strong with the RoA coming at 1.21%. Asset quality and PCR slightly improved. Ahead, with credit growth picking up and moderating credit costs, earnings are expected to be strong with RoA expected to stabilise at ~1%,” said brokerage house Anand Rathi. The multibagger stock has nearly doubled in value in the last six months.
UCO Bank: Kolkata-based UCO Bank posted a profit of ₹653 crore during Q3, 110% higher than ₹310 crore in the third quarter of the previous fiscal. The bank stock has given multibagger return of more than 115% in the last six months period, from trading at ₹11 per share level to currently hovering around ₹25 apiece on the BSE.