ZT NEWS NETWORK
Srinagar: J&K Bank today reported a net profit of Rs 43.93 Cr for the second quarter (Q2), of the current financial year (CFY), ended September, 2020.
The bank announced its reviewed financial results for the Q2 and H1 of CFY today after its Board-of-Directors approved the quarterly and half-yearly numbers during a meeting held in Jammu. For the half-year ended September, 2020 (H1), the bank’s net profit is at Rs 50.43 Cr.
The bank reported that the net NPA ratio has sharply come down to 3.03 % from 4.48 % recorded as on September 30, 2019 while as the Gross NPA ratio has decreased considerably to 8.87 % from 10.64 % recorded last September. The provisioning for bad loans is at 80.40 %, which is one of the highest in the industry as against 71.46 % recorded during the corresponding quarter last year. The bank’s NIM for the quarter reviewed is 3.68 % while as the bank’s Capital Adequacy Ratio is at 11.86 % as against 11.17 % recorded as on September 30, 2019.
Commenting upon the financial results of the bank, Chairman and MD Rajesh Kumar Chhibber said, “Although during the last four quarters, business across the UTs of J&K, Ladakh has been severely affected due to ongoing pandemic and unavoidable disturbances prior to that; but we have managed to brave the crisis and have come out with promising numbers. These Q2 results certainly reflect the trend of turn-around that J&K Bank has scripted on YoY basis.”
“Notably, to strengthen the Bank’s Board further, the bank has today inducted Ex Director General (Accounts & Treasuries) J&K, Dr. Mohammad Ishaq Wani as Additional Director on BoD”, he added.
The bank, he further said, is already working to avoid any further slippages while remaining open to help and support its clients.
“However, we have to be very cautious and vigilant”, the CMD cautioned while stressing that the bank shall now lay more emphasis on its recovery measures as things have begun to improve on ground.
Meanwhile, the bank’s cost of deposits during the quarter has improved to 4.20 % from 5.11 % recorded for the corresponding quarter of previous year. The advances in J&K UT that form 67 % of the bank’s total advances registered a growth of 15 % while as the total net Advances of the bank grew by 2 % to Rs 66813.87 Cr as on 30th September, 2020 from Rs 65609.51 Cr recorded on September 30, 2019. The total deposits rose by around 10 % to Rs 100469 Cr from Rs 91620 Cr recorded during the corresponding quarter last year with CASA figure at 53.32 % as against 50.61 % recorded on September 30, 2020. Notably 88 % of the bank’s total deposits are from J&K UT alone.
On the occasion, the Chairman and MD once again extended his heartfelt gratitude to the Government of J&K UT for the timely and effective economic relief package, which he termed as the game-changing intervention both for people and the banks operating in the region. “The package is well thought-out; comprehensive in its conception and swift in implementation. We have already received the first tranche of the package in the form of Rs 250 Cr as interest subvention, which have been passed on to the eligible beneficiaries’ accounts including all of restructured accounts of 2014 and 2016. The rest of the relief amount under the package will also be passed on to the eligible beneficiaries very soon”, he observed.
“Following the regulatory directions”, he added, “the bank has also made the ex-gratia payment of around Rs 21.53 Cr – as the difference between compound interest and simple interest for six months – to 673505 eligible borrowers well before the deadline provided by the regulator.”