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Karnataka BankNSE:KTKBANK -0.15%53 Return-on-Tangible-Equity is 12.35% as of Mar. 2026, which is 32% above its 10-year median of 9.39. GuruFocus rates NSE:KTKBANK with a GF Score™ of 53/100 and a GF Value™ of ₹196.19 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,523 Banks companies, Karnataka Bank ranks worse than 55.29% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Karnataka Bank's annualized net income for the quarter that ended in Mar. 2026 was ₹16,330 Mil. Karnataka Bank's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹132,242 Mil. Therefore, Karnataka Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.35%.
The historical rank and industry rank for Karnataka Bank's Return-on-Tangible-Equity or its related term are showing as below:
NSE:KTKBANK'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.17 Med: 9.39 Max: 15.41
Current: 10.38
During the past 13 years, Karnataka Bank's highest Return-on-Tangible-Equity was 15.41%. The lowest was 6.17%. And the median was 9.39%.
NSE:KTKBANK's Return-on-Tangible-Equity is ranked worse than 55.29% of 1523
companies
in the Banks industry
Industry Median: 11.23
vs NSE:KTKBANK: 10.38
Karnataka Bank (NSE:KTKBANK) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Karnataka Bank Return-on-Tangible-Equity Related Terms
Karnataka Bank Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Karnataka Bank's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Karnataka Bank Return-on-Tangible-Equity Competitor Comparison
For the Banks - Regional subindustry, Karnataka Bank's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Karnataka Bank Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Karnataka Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Karnataka Bank's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.35% mean?
Karnataka Bank (NSE:KTKBANK) has a Return-on-Tangible-Equity of 12.35% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Karnataka Bank and its competitors. This is 32% above median its historical median of 9.39. Over the past decade, Karnataka Bank's Return-on-Tangible-Equity has ranged from 6.17 to 15.41. According to the industry distribution chart, Karnataka Bank ranks #842 out of 1523 companies in the Banks industry, placing it in the top 55.3%.
Is Karnataka Bank's Return-on-Tangible-Equity too high?
Karnataka Bank's current Return-on-Tangible-Equity of 12.35% is 32% above median its 10-year median of 9.39. Over the past 10 years, this metric has ranged from a low of 6.17 to a high of 15.41. The Banks industry median Return-on-Tangible-Equity is 11.23. Karnataka Bank's value of 12.35% is 10% above this industry median. Based on the distribution chart, Karnataka Bank ranks #842 out of 1523 companies in the Banks industry, which is below the industry midpoint. Overall, Karnataka Bank has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Karnataka Bank's Return-on-Tangible-Equity compare to competitors?
According to the Banks industry distribution chart, Karnataka Bank ranks #842 out of 1523 companies for Return-on-Tangible-Equity. This places Karnataka Bank in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.23. Karnataka Bank's value of 12.35% is 10% above this benchmark. Historically, Karnataka Bank's own Return-on-Tangible-Equity has ranged from 6.17 to 15.41 over the past decade. While the company's 10-year median is 9.39 vs. the industry median of 11.23, Karnataka Bank has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.23, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karnataka Bank's current Return-on-Tangible-Equity of 12.35% is 10% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Karnataka Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karnataka Bank's current Return-on-Tangible-Equity is 12.35%, which is 32% above median its own 10-year median of 9.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karnataka Bank stock overvalued right now?
Based on GuruFocus' analysis, Karnataka Bank (NSE:KTKBANK) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹196.19, compared to a current price of ₹273.15 — trading 39.2% above its estimated fair value. The current Return-on-Tangible-Equity is 12.35%, which is 32% above median its 10-year median of 9.39 and 10% above the Banks industry median of 11.23. Karnataka Bank's overall GF Score™ is 53/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Karnataka Bank (NSE:KTKBANK), the current Return-on-Tangible-Equity is 12.35% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Karnataka Bank (NSE:KTKBANK) Overvalued in 2026?
Based on GuruFocus' analysis, Karnataka Bank stock appears to be overvalued.
The current stock price of ₹273.15 is trading 39.2% above its estimated GF Value™ of ₹196.19.
GuruFocus considers Karnataka Bank to be Significantly Overvalued.
Key valuation signals for NSE:KTKBANK:
Return-on-Tangible-Equity: 12.35% (32% above median its 10-year median of 9.39)
GF Value™: ₹196.19 vs. price of ₹273.15 (39.2% above fair value)
Industry Position: 10% above the Banks median (#842 of 1523)
No single metric tells the full story. See the NSE:KTKBANK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Karnataka Bank Ltd is an Indian banking company. Its operating segment includes Treasury operations, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. It generates maximum revenue from the Retail Banking segment. Geographically, it operates only in India. The company's products and services include savings accounts, certificates of deposits, cash management accounts, money market accounts, loans and advances, and others.
53GF Score
Get the complete analysis for NSE:KTKBANK
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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