Continuing with its profit-making momentum, J&K Bank has posted a net profit of Rs 21.87 crore for the quarter ended June (Q1)-2019.
A statement issued by the bank announced its reviewed financial results for the first quarter of current financial year following the approval of its Board of Directors at a meeting held here at its corporate headquarters.
The bank’s operating profit for Q1 increased to Rs 410.85 crore as against Rs 349.73 crore recorded during the corresponding period of the previous year. The Net Interest Margin (NIM) has improved to 3.90 percent as against 3.66 percent recorded for the corresponding period of the previous year.
The advances of the bank grew Year on Year (YoY) by 13.55 percent and stood at Rs 67949.45 crore as against Rs 59841.05 crore for Q1 of the financial year 2018-19, while the deposits have increased by 14.91 percent to Rs 88963.39 crore from Rs 77419.57 crore recorded during the corresponding period of the previous financial year.
The total business of the bank is up by 14.31 percent to Rs 156912.84 crore when compared with the corresponding period of the previous year.
The gross NPA ratio of the bank has come down to 8.48 percent for the quarter as against 9.83 percent, while as the net NPA ratio is 4.36 percent as against 4.65 percent for the corresponding period of the previous financial year.
The NPA coverage ratio stood at 66.61 percent. The Capital Adequacy Ratio of the bank under BASEL III is 11.76 percent as on 30 June 2019.
On the expansion front, the bank added two Business Units and commissioned 28 ATMs to its expanding network across the state and beyond during the quarter.
The Chairman and Managing Director of the bank RK Chhibber said “by preferring provisioning over profits we have laid a solid foundation for a strong performance in the coming quarters of the financial year”.
He said this has been made possible by the support of the state government- bank’s majority shareholders, the counsel of the bank’s board, the loyalty of bank customers and the utter devotion of human resource of the institution.
“The recent implementation of RTI Act in the bank besides adoption of CVC guidelines shall further strengthen governance and compliance framework thus reinforcing the bank’s operational and administrative stability besides ensuring greater transparency,” Chhibber said.
He said recovery of NPAs and containment of further slippages remains top priority of the bank as “we sustain our focus on providing best-in-class service to all stakeholders”.
Chhibber said the bank shall continue to focus on increasing low-cost deposits and scaling up the flow of credit to priority sector within the state to boost lending to agriculture and allied activities besides handicrafts, tourism and SME sectors.
“In the rest of country, our lending focus shall remain on retail sector besides top rated corporate entities and PSUs,” Chhibber said.