Jammu, Jan 31: J&K Bank on Friday posted a net profit of ₹ 49.64 Cr for the third quarter (Q3) of the current financial year (CFY). The Bank announced the Q2 and Q3 numbers, after its Board of Directors adopted the reviewed financial results in a meeting held today in Jammu.
The bank’s operating profit for nine months stood at ₹ 1142.91 Cr as against ₹ 1117.30 Cr recorded for the corresponding period of last FY.
Net NPAs as percentage to net advances has come down to 4.36per centon December 31, 2019 as against 4.69 per cent recorded earlier during the same period. The NPA coverage ratio of the bank improved to73.30per cent as compared to 65.82 per cent during the same period of the previous fiscal while the Capital Adequacy Ratio stood at 11.10 per centagainst RBI stipulated levelof 10.88 percent. CASA which forms the base of bank’s deposits stood at 51.54 percent – one of the best in industry.
Commenting on the bank’s financial results, Chairman and Managing Director R K Chhibber said, “The numbers for the Q3 are quite better than our expectations despite constraints in J&K especially across the valley.”
“Having said that, the fundamentals of our balance sheet are quite healthy while as other financial indicators like operating profit, NIM, Yield on Advances, cost of deposits etc.are quite promising and sufficient to keep us on our growth trajectory so that we meet our future business targets well in time”, the CMD added.
Elaborating further upon the bank’s performance, the CMD further asserted, “Overall, the bank has performed well in the given conditions wherein the bank had to deal with challenges both from within and without. After, I was entrusted with the responsibility of leading this institution in June 2019, my first and foremost priority was to get the bank out, unharmed from the situation besides ensuring continuity of business, firming up the bank’s board, to ensure compliance culture, implementing RTI Act and extension of CVC guidelines for strengthening the transparency and governance frameworks of the bank.
“And so far I believe we have succeeded. For this success I express my gratitude to my entire JK bank family for their relentless support and dedication towards the realization of organisational goals, Board of Directors for their continuous guidance besides the unflinching trust of our customers, society at large and most importantly to the J&K Government for their unfailing backing at such a crucial juncture of the bank’s history.”
Notably, Net Interest Margin (NIM), a benchmark for the profitability of the bank for the nine months remained healthy and stable at 3.86per cent while the cost of deposits is 5.03per cent. The bank also registered a healthy percentage of Yield on Advances which stood at 9.45 percent for nine months ended December 31, 2019.
The deposits of the bank in J&K and Ladakh grew from ₹72831 Crto₹ 83705 Crshowing a growth of 14.93 per cent YoY and the advancesduring the same period increased from₹ 37162 Crto₹ 42871 Crrecording a growth of 15.36 per cent Whereas the deposits of the bank recorded a year-on-year (YoY) growth of over 8 per cent and stood at ₹ 93170.08 Cr as compared to ₹ 86210.29 Cr on December 31, 2018, while as the Advances stood at ₹ 64488.06 Cras on December 31, 2019.
Meanwhile, during the last three quarters, the Bank expanded its footprint across channels with 13 new Business Units, 03Easy Business Units and as many as 62 ATMs.