J&K Bank profits up by 17.20%

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Srinagar: J&K Bank today posted net profit of Rs 354.38 Cr for Half-year (H1) ended September 2015, up by 17.20 pc from Rs 302.35 Cr earned during the corresponding H1 of the previous financial year.
The Bank announced its reviewed H1/Q2 financial results following approval of its Board of Directors at a meeting held in Jammu today.
Recording an increase of 13.53 pc for the second quarter, the bank registered Rs 195.62 Cr as net profit against Rs 172.30 Cr for the corresponding quarter last year.
The total business of the Bank stood at Rs 108164 Cr.
The advances of the bank have reached to Rs 45721.91 Cr from Rs 45072.37 Cr, while as the deposits stood at Rs 62442.06 Cr as against Rs 62972.35 Cr recorded during the corresponding period of the previous year.
The bank’s other income for H1 rose by 21.57 pc for the quarter under review reaching Rs 262.14 Cr as against Rs 215.62 Cr recorded during the corresponding period.
The Net Interest Margin (NIM) for the H1 has reached 4.02 pc while as the Earnings per Share stood as Rs 16.14. The Return on Assets (RoA) has also increased to1.10 pc from 0.88 pc as recorded for the corresponding period of the previous year.
The Gross NPA Ratio for Q2 is at 6.46 pc as against 6.63 pc recorded during Q1 of the current financial year, while as the Net NPA ratio of the Bank stands at 2.78 pc as compared to 2.95 pc recorded during the first quarter of the current year The NPA Coverage ratio is 61.92 pc.
The Bank’s net interest income stood at Rs 694.47 Cr during the quarter under review. The Capital Adequacy Ratio (CAR) of the bank under BASEL-II and BASEL-III is 13.07 pc and 12.76 pc respectively.
JK Bank chairman Mushtaq Ahmad said: “We have improved our performance somewhat when compared to the corresponding period of the last year and with growth forecasts brightening for the country’s economy we expect a turnaround in the next 3 to 4 quarters.”
“In the floods aftermath and amid stagnation in the economy, we remained focussed on balance-sheet cleansing and consolidation, improving the deposit mix besides provisioning enhancement. On all these counts we are moving ahead successfully,” he said.
He further said, “We will continue to increase our market share in J&K through increased priority sector lending thereby giving boost to the agriculture and allied activities and craft economy.”
“Increasing our brick and mortar presence across the rural landscape of J&K shall remain at the heart of its economic transformation. We also plan to increase our lending to tourism sector especially for infra-structural needs.”
“However, outside the state, the top rated businesses shall remain our preference within the niche lending markets”, he added.

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