Amid stressed economy, we performed really well: Mushtaq Ahmad
SRINAGAR: J&K Bank today posted net profit of Rs 610.58 Cr for Half-year (H1) ended September 2013, up by 18.42percent from Rs 515.62 Cr earned during the corresponding H1 of the previous financial year.
The bank recorded an increase of 12.29 percent for the second quarter, registering Rs 302.66 Cr as net profit against Rs 269.53 Cr for the corresponding quarter last year.
The Bank announced its reviewed Q2/H1 financial results following approval of its Board of Directors at a meeting held here today.
The total business of the Bank is up (YoY) by 14.67 percent in comparison to the corresponding quarter of the previous year and has reached to Rs 102292 Cr.
The advances of the bank have grown considerably by 19.98percent to Rs 41120.81 Cr from Rs 34272.09 Cr, while as the deposits grew by 11.37 percent to reach Rs 61171.15 Cr as against Rs 54926.49 Cr recorded during the corresponding period of the previous year.
The asset quality of the bank remains stable as Gross NPAs are at 1.69 percent for the second quarter. The Net NPA ratio of the Bank stands at 0.19 percent, which is one of the best in the industry. The NPA Coverage ratio is 92.06 percent, again among the best in the industry.
The Bank’s operating profit witnessed a Year on Year (YoY) growth of 17.46 percent and reached to Rs 496.48 Cr from Rs 422.68 Cr.
The Net Interest Margin (NIM) has appreciated to 4.33 percent from 3.94 percent recorded for the corresponding period of the previous year.
The Earnings per Share jumped to Rs 62.43 which is up (YoY) by12.28 percent from Rs 55.60 recorded during the corresponding period of the previous year.
The Return on Assets (RoA) has increased to 1.86 percent from1.79 percent as recorded for the corresponding period of the previous year.
The Bank’s net interest income increased by 23.36 percent (YOY) to Rs 681.82 Cr during the quarter from Rs 552.67 Cr earned during the corresponding period of the previous year.
Commenting on the performance for the quarter, Mushtaq Ahmad, Chairman and CEO of Jammu & Kashmir Bank said, “Despite stressed economy, we feel confident by our H1 results. Going by the current industry scenario we have performed really well.”
Our focus for the last two quarters has primarily been driven by twin objectives of sustaining growth and maintaining a quality asset book. So far, we have pulled it through. Notably, we have improved our NIM on account of better liability management, he added.
The bank, he said, shall continue to increase its priority sector lending in J&K which is mainstay of our local economy, so as to give boost to the agriculture and allied activities, craft economy, trade and industry within the state.
Meanwhile, we shall pace-up our efforts to tap every grower across the state under Apple Project, which also forms a part of our broader plan on financial inclusion. Going forward, the bank envisions tapping of almost all the apple growers across the valley which in financial terms would mean credit off-take of at least Rs 5000-6000 crores, he said.
About the banks expansion plan outside the state, he said, This year, we have already opened 5 business units in Bangalore, Delhi and Hyderabad. We are prospectively looking at opening 15 more such units this fiscal in Maharashtra, Kerala, Karnataka and Delhi. And our corporate loan-book outside the state shall grow though on a very selective basis, he added.
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