Srinagar: In yet another record-breaking performance, J&K Bank has posted a net profit of Rs1767 Cr for the fiscal 2023-24 – a remarkable improvement of 48% over the previous high of Rs. 1197 Crore achieved last year.
The Bank declared its annual and Q4 results today after its Board of Directors approved the numbers in a meeting held here at the Bank’s Corporate Headquarters. On the occasion, the Board of Directors of the Bank also recommended a handsome final dividend of Rs. 2.15 per share of Face Value Re 1.00 for its shareholders.
The Bank’s net profit for the Q4FY23-24 also rose by 34% to Rs 638.67 Cr when compared to Rs 476.33 Cr recorded last financial year. This also is a historic high for quarterly profits.
Performance Highlights
Beating its previous highest-ever profit of Rs. 1197 Crore achieved only last year, the Bank’s net profit surged by 48% to record a new high of Rs 1767 Cr. In line with its promise of meeting annual guidance, the Bank’s notable metrics include 3.92% net interest margin (NIM), over 15% capital adequacy ratio (CAR), around 4% gross NPA and below 1% net NPA – a reflection of strong operating results reinforcing further financial soundness and resilience to the balance-sheet.
The Bank’s total revenue grew by 19% to cross the Rs 12000 Cr mark while as the net interest margin (NIM) stood at 3.92%. Bank’s Yield on Advances rose annually to 9.54% from 8.91%, while as the Return on Assets (RoA) reached quite healthy levels at 1.22% – crossing the 1% barrier after a decade – as against 0.89% recorded last fiscal.
Expressing his satisfaction on the occasion about the good set of numbers posted by the Bank for FY 2024, the Bank’s MD & CEO Baldev Prakash said, “We are thrilled to report such stellar annual numbers, which reflect our unwavering commitment to excellence and prudent financial management. Our record-breaking annual profit and impressive financial metrics reflects the changing culture of the Bank where delivering streak of new records period after period is becoming a habitIt also underscores the Bank’s resilience and strategic prowess in navigating dynamic market conditions. More so, it reflects the dedication of our staff, the unwavering trust of our customers, and the continued support of our major shareholders i.e. UT Government.”
“Recommendation of a handsome dividend of Rs. 2.15 per share of face value Re. 1.00 for FY 2024 by the Board of Directors, is an acknowledgement of the trust and support of our shareholders and we are keen to share the rewards with our valuable shareholders. The success is the outcome of establishing synergies between the core elements of personnel, processes and technology; wherein capabilities have been fortified through planned transformation and change management”, he said adding further, “Now with laid-out platform, enhanced capabilities and strengthened core, we are ready to scale newer heights while embracing the dynamically evolving industry practices.”
He further stated, “Such stupendous success has been achieved while following principles of ethical business practices and maintaining highest standards of corporate governance.”
Business Growth
J&K Bank’s total deposits rose 10.44 % YoY to Rs 134774.89 Cr as of March 31, 2024, from Rs 122037.74 Cr recorded a year ago, while as the Net Advances of the Bank stood at Rs 93762.51 Cr in Q4FY24 rising up 14 % YoY from Rs 82285.45 Cr in Q4FY23.
On a sequential basis (QoQ), deposits grew by 5% and advances increased by 4.5%. Meanwhile, the Bank’s CASA Ratio at 50.51% as of March 31, 2024, despite industry-wide pressures on liability side, is among the best in the industry.
“Moreover, the Bank’s deposit growth, in line with the industry average of 11%, and advances increasing by approximately 14%, highlight its robust growth trajectory and market leadership in its core operational geography”, he said.
Asset Quality
Strengthening its asset quality further, the Bank has brought down the Gross NPA (GNPA) to 4.08 %, while the net NPA are below 1 percent at 0.79%.
MD further stated, “Our strong asset quality metrics underscore our methodical approach to risk management and our unwavering focus on maintaining a healthy balance sheet. While exceeding our annual guidance, these results validate our efforts to build a resilient and sustainable banking franchise. With a Provision Coverage Ratio (PCR) at 91.58%, J&K Bank continues to demonstrate its commitment to prudential provisioning and risk mitigation.”
Capital Adequacy
Ensuring adequate availability of capital to support its business growth while maintaining the regulatory buffer comfortably, the Bank is well cushioned with its Capital Adequacy Ratio at 15.33 % as on Mar, 2024.
Transformative Projects
J&K Bank’s transformative projects are progressing smoothly, with a focus on enhancing digital initiatives and ensuring zero-disruption of services, even during high-demand festive occasions. The bank has improved its overall customer services and launched innovative digital customer journeys to enhance the banking experience.
“Internally, our ESG efforts have led to the implementation of e-office across the organization, drastically reducing paper usage. However, remaining cognizant of environmental concerns, we continue to engage in sensible lending practices contributing to sustainability and enhanced operational efficiency.”
On upgrading the Bank’s Human Resource, he asserted, “We continue to invest in our workforce through HR initiatives focused on re-skilling and up-skilling, creating change champions prepared to meet future challenges. An online learning system titled e-Pathshala has been established, integrating knowledge acquisition into the career progression journeys of employees, thereby incentivizing personal and professional growth – an overall strengthening of employee value proposition the Bank offers to its existing and prospective staff members.”
Corporate Social Responsibility
Commenting briefly upon the Bank’s CSR Program, MD said, “The Bank also contributes to the overall social good through its Corporate Social Responsibility (CSR) programs. With an annual spend of around Rs 19 Cr under our CSR programs during FY 2023-24, we have supported initiatives aimed at empowering marginalized communities, promoting eco-friendly measures, and providing assistance to persons with disabilities besides supporting programs focussed on skill development of youth. And on the back of improved profitability, such initiatives are bound to witness a further boost owing to the enhanced budgetary allocations.”
Fostering Entrepreneurship
Furthermore, J&K Bank remains steadfast in its commitment to extend employment benefits to thousands of youth, with a special focus on fostering entrepreneurship and driving socio-economic development in the region. “We are proud to be at the forefront of employment-generating initiatives,” said Baldev Prakash.
“As we celebrate this remarkable milestone, I would like to extend my heartfelt gratitude to our stakeholders and the communities we serve. Together, we will continue to grow, innovate and create sustainable value for all our stakeholders”, he concluded.
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