JKB stock hits record 52-week high of Rs 57.55

The share price increased 9.98 percent on December 5 (Monday), reaching a high of Rs 51.75. Over 26 million shares were exchanged on the stock exchange during the day, with a closing price of Rs 51.25.
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Srinagar: J&K Bank shares attained new heights as the bank's stock on Wednesday reached a 52-week high of Rs 57.55 at the National Stock Exchange (NSE) and closed at Rs 56.80, gaining 4.41 percent from the day before (December 6). The day's trading volume exceeded 25 million shares.

J&K Bank's share price increased by Rs 11.75 i.e., 24.7 percent, in the past five trading days alone.

The share-performance on the stock exchange has been steady. The bank's shares closed at Rs 46.60 on a volume of 7 million shares during last week's trading session on December 2. However, this week's market opening saw the bank share continually soaring and touching an all-time high.

The share price increased 9.98 percent on December 5 (Monday), reaching a high of Rs 51.75. Over 26 million shares were exchanged on the stock exchange during the day, with a closing price of Rs 51.25.

The following day, December 6, the boom persisted as the share price once more surpassed its previous 52-week high, reaching a high of Rs 54.85 before settling at Rs 54.40. More than 38 million shares were traded during the day, recording a gain of more than 6 percent.

The bank has been able to rebuild investors' confidence after it had been shaken a few years ago, as seen by the share's constant success. When Baldev Prakash joined the bank as MD and CEO on December 30 of the previous year, the share price was just above Rs 36.

In the last two quarters of this calendar year (January to September), the bank under the leadership of Baldev Prakash showed signs of recovery and consistency in its performance is visible to strengthen the balance sheet. The bank recorded over two-fold jump in net profit at Rs 243.49 Cr for the September quarter 2022-23 on healthy growth in interest income and a fall in bad loans. The bank had posted a net profit of Rs 111.09 Cr for the year-ago period. Total income during the quarter rose to Rs 2,444.59 Cr from Rs 2,184.20 Cr a year ago.

Interest income grew 15.5 per cent to Rs 2,298.85 Cr during the quarter. Gross non-performing assets (NPAs) were reduced to 7.67 per cent of gross advances as of September 30, 2022, from 8.95 per cent by the end of September 2021.

Net NPAs were also brought down to 2.10 per cent from 3.02 per cent.

In value terms, gross NPAs stood at Rs 6,064.68 Cr in the quarter as against Rs 6,524.87 Cr. Net NPAs were Rs 1,566.77 Cr, down from Rs 2,063.65 Cr in the period, a year-ago.

The fall in the bad loans ratio helped cut the provisions towards NPAs and contingencies for Q2FY23 substantially to Rs 76.90 Cr from Rs 175.62 Cr a year ago.

These financials have been rebuilding the investors’ confidence and they are showing appetite in the bank’s stock. Remarkably, amid this continuing boom of the bank’s share, a section of market experts are pegging the share to cross Rs.70 in the long term.

MD & CEO Baldev Prakash called it a big moment for the Bank and thanked all the stakeholders especially the governments of twin UTs (J&K and Ladakh) for their continued support, the Bank's Board of Directors for their valued guidance and above all Bank valuable customers and clients for their unflinching trust and loyalty.

While talking to Greater Kashmir, he said, “Riding on the back of healthier financial numbers, planned organisational transformation and improving work culture; our market perception is on a rising curve with the value proposition being acknowledged by the market players. We must ensure that the scrip maintains the upward trend by delivering improved results on a sustained basis. And I assure all the stakeholders that we won’t allow anything to impede our journey towards growth and glory.”

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