J&K Bank pockets Rs 308 crore profit in Q 1

J&K Bank pockets Rs 308 crore profit in Q 1

SRINAGAR: J&K Bank on Thursday, posted a net profit of Rs 307.92 crores for the quarter ended June 2013, which is up by 25.12 percent from Rs 246.09 crores earned during the corresponding quarter of the previous financial year. The Bank announced its financial results for the first quarter today following the approval of its Board of Directors at a meeting held here on August 1. The Bank’s operating profit witnessed a Year on Year (YoY) growth of 15.85 percent and reached to Rs 480.99 crores from Rs 415.17 crores recorded during the corresponding period of the previous year. The Earnings per Share jumped to Rs 63.52 which is up (YoY) by 25.11 percent from Rs 50.77 recorded during the corresponding period of the previous year. The Net Interest Margin (NIM) has appreciated to 4.15 percent from 3.84 percent recorded for the corresponding period of the previous year. The Return on Assets (RoA) has increased to 1.89 Percent from 1.68 percent as recorded for the corresponding period of the previous year. The Bank’s net interest income increased by 22.27 percent YOY to Rs 654.90 crores during the quarter from Rs 535.63 crores earned during the corresponding period of the previous year. The asset quality of the bank remains stable as Gross NPAs stood 1.67 percent for the quarter. The Net NPA ratio of the Bank stands at 0.14 percent, one of the best in the industry. The NPA Coverage ratio is at 94.01 percent. The total business of the Bank is up by 13.37 percent when compared with the corresponding period of the previous year. The Deposits grew by 10.32 percent for Q1 FY13-14 to stand at Rs 58601.09 crore as against Rs 53117.10 crore for Q1 FY 12-13. The advances have increased by 18.23 percent to Rs 39282.20 crores from Rs 33225.27 crores as recorded during the corresponding period of the previous year. The Bank added 162 business units and around 300 ATMs to its expanding network across the state. Commenting on the performance for the quarter, said Mushtaq Ahmad, Chairman and CEO of Jammu & Kashmir Bank, “The first quarter results are healthy to sustain our growth momentum well into future despite the severely stressed economic conditions in the country. Our strategic focus on the potential sectors within the state economy will sharpen considerably to push our CD Ratio further up.” He said, “We feel encouraged by the results. As of now, we are streamlining our business policy, plan and processes following up with a multipronged approach i.e. total financial inclusion, vigorous business expansion, formulation of risk-based systems and procedures, consolidating processes of growth and most significantly building a capable and unmistakable work-force to meet the challenges of future banking” “In terms of staff, the Bank shall keep pace with its fast expanding foot print across the country. We took a major stride in this direction by appointing 1050 Relationship Executives through a selection process quite in line with our recruitment policy”, he added.

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