Onlykashmir.in News Desk
Srinagar, July 27: J&K Bank has reported a robust financial performance for the first quarter of the current fiscal year, with net profit soaring by 27% YoY to Rs 415.49 Cr, compared to Rs 326.45 Cr in the same period last year. This significant growth underscores the bank’s strategic vision of becoming a “Bank for all Generations,” as highlighted by the MD & CEO.
Performance Highlights:
Net Interest Income (NII): Increased by 7% YoY, reaching Rs 1369.22 Cr.
Net Interest Margin (NIM): Improved to 3.86% from 3.77% in the previous quarter.
Core Operating Profit: Rose by 13% YoY to Rs 594.67 Cr.
Return on Assets (RoA): Improved to 1.08%, up from 0.94% last year.
MD & CEO Statement:
“Our Q1 performance reflects the resilience and strength of the bank. With improved bottom line and key financial metrics showing notable improvements, we are on a healthy growth trajectory. Our Return on Assets above 1% and maintained NIM near 4% indicate strong financial health despite margin pressures.”
Business Growth:
Advances: Grew by 13% YoY, standing at Rs 95449.77 Cr, up from Rs 84475.63 Cr.
Deposits: Increased by 9% YoY to Rs 132573.13 Cr.
CASA Ratio: At 49.77%.
The MD highlighted the trust and loyalty of their customer base, particularly in their core operational regions, as key drivers of this growth. He noted a temporary dip in CASA ratio due to increased government fund outflows but expressed confidence in maintaining it above 50% annually.
Asset Quality:
Gross NPA: Reduced to 3.91% from 4.08% in the previous quarter.
Net NPA: Improved to 0.76% from 0.79%.
NPA Coverage Ratio: Stood at 91.57%, up from 87.55% YoY.
MD & CEO Statement on Asset Quality:
“Our GNPA is now below 4%, and we expect this healthy trend to continue. Maintaining our NPA Coverage Ratio above 90% is a testament to our robust asset quality.”
Operational Excellence:
J&K Bank is becoming a lean, agile, and digitally driven financial institution. The MD & CEO emphasized the bank’s progress towards achieving 100% digitalization in services and internal processes by the end of the current financial year.
Capital Position:
Capital Adequacy Ratio (BASEL III): Improved to 15.07% from 14.83% last year.
MD & CEO Remark:
“With our CRAR above 15%, we are well-capitalized to fund our future growth plans. Our commitment to innovation and customer-centric growth will continue to deliver value to our customers and stakeholders.”
J&K Bank’s Q1 results reflect a solid financial performance, strategic growth, and operational excellence, positioning it as a leading financial institution in the region and the country.
