Srinagar, May 16: Weathering global recession, the J&K Bank, state’s only listed company, has registered a staggering Rs 512.38 crore net profit for 2009-10 representing a 25 growth from Rs.409.84 crore a year before.
Addressing a press conference at SKICC Chairman and Chief Executive of J&K Bank, Dr Haseeb A Drabu said the J&K Bank was a leading bank not only in the state, but throughout the country also, with a good network in the foreign countries as well.
He said the Bank had won laurels throughout the  country  for its best performance and working as a family bank.
He said the net profit for the quarter ended Mar, 2010 increased by 53 per cent and stood at Rs 120.04 crore compared to Rs.78.68 crore for the corresponding period a year before.
Dr Drabu said:  “Due to softening of interest rates during 2009-10 the yield on advances came down by 88  basis points to 10,65%,which was more than compensated by a decline of 98 basis points in the cost of Deposits from 6.22% to 5.24%.”
The net interest margins ration (annualized) of the Bank for the quarter ended Mar, 2010 was at 3.27 % compared to 2.97 % for the corresponding period of the previous fiscal year while for the year ended March, 2010 was at 3.04 % compared to 3.15% a year ago.
The Chairman said the Bank had considerably improved its Free Based income during the current financial year by 70% from RS.425 crore to Rs.416 crore, the major contributor being Treasury/Trading income.
He said the operating profit for the year up to March,2010 increased by 24% year on year to Rs 958 crore from Rs.774 crore  earned during the previous financial year. He further said the Operating income for the current year was 1536 crore as against Rs.1245 crore for the last fiscal registering an increase of 23%.
Moreover, the Return on Assets for the current year improved to 1.20% compared to 1.09 % for the previous financial year. With the leveraging of technology and managing costs efficiently, the Bank continues to bring down its Cost to income ratio which is at 37.60% for the year ended March,2010 compared to 37.81% a year ago
The Chairman said the total balance sheet size of the bank as on March, 2010 increased further to Rs.42547 crore by 13 per cent from Rs.37693 crore a year ago. The total business turnover moved to Rs.60294 crore, increasing by 12 per cent year-on-year over Rs  53935 crore.
The loan book as on March 31, 2010 stood at Rs.23057 core up to 10% from last year’s Rs.20930 core, while the bank’s deposit base at the same date stood at Rs.37237 crore up to 13% from Rs.33004 crore as on March ending ,2009.
Dr Drabu said the low cost demand and savings deposits of the Bank as on March,2010 were at Rs.15153 crore up by 20% year wise from Rs.12579 crore as on March,2009 taking the CASA ration up to 40.69% from 38.11% a year ago.
He said the Gross NPAs as on March, 2010 have declined considerably to Rs 462.31 crore from Rs.559.27 crore a year ago.
The Gross and Net NPAs proportion of Gross and net Advances as on March, 2010 came further down to 1.97 % and 0.28% respectively from 2.64% and 1.37% a year ago.
Drabu said from the last two to three years, the bank has touched to newer heights and said the Bank has introduced Insurance, healthcare, financial patronage to the under privileged members of the society as also loans for almost all commercial, agricultural, educational and personal needs.
Dr Darbu said: “There is no any hurdle to get loan from bank, however, one has to fulfil all the obligations required for and has to complete all the paperwork.”
 He said in fact the J&K Bank had reduced many hurdles and there is no question that the people are not getting loans from the Bank easily.

Lastupdate on : Sun, 16 May 2010 21:30:00 Makkah time
Lastupdate on : Sun, 16 May 2010 18:30:00 GMT
Lastupdate on : Mon, 17 May 2010 00:00:00 IST