Karnataka Bank up 4% on signing MoU for insurance business

NEW DELHI: Shares of Karnataka Bank climbed nearly 4 per cent in Tuesday’s trade after the lender said it had inked a memorandum of understanding with Bajaj Allianz General Insurance for general insurance business.

In a filing to BSE, Karnataka Bank's Managing Director & CEO P Jayaram Bhat said the bank would be able to provide a vast choice of non-life insurance products to customers across all its 747 branches, supported by the customer-centric products of BAGICL.

The stock rose 3.56 per cent to hit a high of Rs 141.30 on BSE. At this price, the stock was trading at 9.42 times its trailing 12-month earnings per share.

The MD said there was a need to improve the insurance business and cover assets of customers wherein the interest of all the concerned is protected.

The lender has reported a 29.3 per cent YoY drop in net profit for December quarter at Rs 68.52 crore on a 6.4 per cent increase in total income at Rs 1,457.52 crore during the same period.