J&K Bank Q2 Results: Profit doubles to Rs 243 crore

‘GNPA below 8% after 7 years’
Representational Image
Representational ImageSource: Twitter@JandKBank

Srinagar, Oct 21: J&K Bank’s net profit is 119 percent up Year-on-Year (YoY) at Rs. 243.49 Cr in the September Quarter of the current financial year, when compared to Rs 111.09 Cr, recorded for the corresponding quarter previous year, while as, it’s half-yearly (H1) profit rose 90 percent 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.

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

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

Commenting on the Bank’s healthy growth, MD & CEO BaldevPrakash 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 lakh crore by the end of current fiscal.”

“While setting the 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.

The Gross NPA Ratio has sharply come down 142 basis points in sequential terms to 7.67 percent from 9.09 percent while as by 128 basis points on Year from 8.95 percent recorded in September 2021.

The Net NPA ratio has also moderated by over 90 basis points to 2.10 percent from 3.02 percent recorded a year ago. The provision coverage ratio (PCR) of the Bank has improved to 85.58 percent from 81.57 percent a year ago.

Expressing satisfaction over the Bank’s asset quality, MD & CEO said, “With a single-minded institutional focus on improvement of asset quality during the September quarter, I feel very proud that we have brought down the GNPA figure to below 8 percent mark – a feat achieved after seven years is like icing on the cake. And with proactive monitoring and management of SMAs, we are on course to deliver what we have assured to our stakeholders.”

“With the 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.

Deposits and Advances of the Bank have grown by 9 percent each on YoY basis to Rs 115714.57 Cr and Rs 74549.73 Cr respectively with an increase of 3 per cent and 4 percent 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 percent for the quarter from 8.34 % while as the CASA is slightly down but still near the 55% mark.

“Despite the single-digit increase in overall loan-book, we have maintained about 10 percent 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.

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