Karnataka Bank hits 52-week low on finding deficiencies in reconciliation

Karnataka Bank shares slipped 2.5 per cent in trade on Tuesday (February 18, 2025), and hit a 52-week low at Rs 169.5 per share on BSE. The stock dropped after the bank found certain deficiencies in the reconciliation process during its review of suspicious UPI Global transactions 

 

Around 12:23 PM, Karnataka Bank share price was down 2.56 per cent at Rs 169.5 per share on BSE. In comparison, the BSE Sensex was down 0.37 per cent at 75,718.93. The market capitalisation of the company stood at Rs 6,405.62 crore. The 52-week high of the stock was at Rs 259.4 per share.

 

"We inform that the Bank, during the course of its review of suspicious UPI Global transactions has identified certain deficiencies in the reconciliation process. The Bank confirms that owing to this, there is no impact on the operations of the Bank nor on customer servicing," the filing read. 

 

The private sector bank estimates the loss amount at Rs 18.57 crore and the impact on the bank is estimated at Rs 18.87 crore. It informed the Reserve Bank of India (RBI) on February 17, 2025, about the crisis and will initiate necessary actions toward recovery of the amount involved and has also put in place additional control processes to prevent recurrence, as per the filing.  

 

Karnataka Bank is has grown to become a well-recognised player in the Indian banking sector. The bank offers a wide range of financial products and services, including savings and current accounts, loans, credit cards, and insurance, catering to both individual and business customers.

 

Karnataka Bank operates through a vast network of branches and ATMs across India and provides digital banking services, ensuring convenient and secure banking for its customers. The bank's focus on technology-driven services, along with traditional banking, has made it a preferred choice for many. Karnataka Bank has a strong presence in retail, corporate, and rural banking sectors and is known for its customer-centric approach, innovation, and commitment to community development.

 

In the past one year, Karnataka Bank shares have lost 30.7 per cent against Sensex's rise of 4.5 per cent.