in ,

J&K Bank earns Rs 243.49 cr net profit in Q2; Gross NPAs below 8%

Ziraat Times News Network

SRINAGAR, OCT 21: J&K Bank reported a 119% net profit Year-on-Year (YoY) at Rs. 243.49 Cr in September Quarter of current financial year when compared to Rs 111.09 Cr recorded for the corresponding quarter previous year, while as, its half-yearly (H1) profit rose 90% to Rs 409.46 Cr from Rs 215.41 Cr recorded for H1 last year.

The Bank announced its financial numbers after its Board-of-Directors reviewed and approved the quarterly and half-yearly numbers during a meeting held here at Corporate Headquarters.
Performance Highlights

The Bank’s Net Interest Income (NII) is up 24% YoY at Rs 1204.12 Cr for the September quarter and 15% up at Rs 2238.35 Cr for the half year compared to corresponding periods of previous year, while the Operating Profit rose YoY by 56% and 29% for respective periods.

The Bank’s NIM has also improved to 4.04% against 3.51% recorded for the corresponding quarter last year, while as the Return on Assets has improved to 0.71% for the quarter and 0.62% for the HY. The Bank’s steadily moderating cost-to-income ratio has also come down to 64.19% for the Q2 from the above 70% levels recorded last year, according to a media statement issued today.

Commenting on the Bank’s healthy growth, MD & CEO Baldev Prakash said, “Along with markedly improved bottom-line, our Q2 numbers do reflect Bank’s ability to deliver on its commitments and to improve upon all its key financial indicators necessary to redirect its focus on realizing the short-term business goal of Rs 2.2 Lac Cr by the end of current fiscal.”

“While setting right tone for the future course of our action, I see these numbers heralding a new era of productivity and growth for the Bank and all its stakeholders”, he added.
Improved Asset-Quality

The Gross NPA Ratio has sharply come down 142 basis-points in sequential terms to 7.67% from 9.09% while as by 128 basis-points on Year from 8.95% recorded in September, 2021. The Net NPA ratio has also moderated by over 90 basis-points to 2.10% from 3.02% recorded a year ago, he said.

“With resolution process of NPAs gathering more steam post activation of the Bad Bank (NARCL) – our bank too has a significant share of above Rs 900 Cr in the NPA pie being assigned to NARCL in the first phase,” he added.
Business Growth

Deposits and Advances of the Bank have grown by 9% each on YoY basis to Rs 115714.57 Cr and Rs 74549.73 Cr respectively with an increase of 3% and 4% respectively over the June quarter, 2022. The Bank’s overall business increased to Rs 190264.30 Cr against Rs 174609.19 Cr recorded last year. The Bank’s Yield on Advances has significantly improved to 9.01% for the quarter from 8.34 % while as the CASA is slightly down but still near the 55% mark.

“Despite single-digit increase in overall loan-book, we have maintained about 10% growth in advances in J&K and 15% in Ladakh, which form the bulk of our business”, said MD & CEO while commenting on growth numbers, adding, “With improved operational parameters during the September quarter, I feel encouraged to believe that we will achieve our top-line growth numbers as envisaged in our business plan.”

 

Leave a Reply

Your email address will not be published.

Loading…

0

International conference on ‘Climate Change’ inaugurated at SKUAST Jammu

German-Switzerland Mountaineering Expedition-2022 culminates in Kishtwar