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Informist, Saturday, Jul 27, 2024

--J&K Bank Apr-Jun total income 31.88 bln rupees vs 28.85 bln 
--J&K Bank Apr-Jun net profit 4.15 bln rupees vs 3.26 bln 

NEW DELHI – The net profit of Jammu & Kashmir Bank rose 27.3% on year to 4.15 bln rupees in the quarter ended June due to the reversal in provision on account of improvement in the bank's asset quality. This is the fourth consecutive quarter that the Srinagar-based bank has reported a reversal in provision.

Sequentially, however, the bank's profit fell 34.9% from 6.39 bln rupees in Jan-Mar. The bank's extraordinary profit for the period ended Mar 31, was supported by a provision reversal as well as a sharp fall in employee costs. In Apr-Jun, the bank's employee costs, at 6.90 bln rupees, were up 42.5% on quarter, but down 5.7% on year.

Jammu & Kashmir Bank reported a 174.80-mln-rupee provision reversal in Apr-Jun as its net non-performing asset ratio marginally improved to 0.76% as of Jun 30 from 0.79% as on Mar 31. The bank's reversal of provision for non-performing assets was 237.80 mln rupees at the end of June.

The gross non-performing asset ratio of the bank also improved to 3.91% as of Jun 30 from 4.08% as of Mar 31. Jammu & Kashmir Bank's net non-performing assets fell to 7.28 bln rupees in Apr-Jun from 11.77 bln rupees in the same period a year ago and 7.37 bln rupees in Jan-Mar.

The bank's gross non-performing assets came down to 38.58 bln rupees in the quarter ended June from 51.04 bln rupees during the same period last year, and 39.56 bln rupees in Jan-Mar. Jammu & Kashmir Bank was holding a total provision of 1.27 bln rupees as of Jun 30 for accounts admitted under the Insolvency and Bankruptcy Code.

The bank's total income was 10.5% higher on year at 31.88 bln rupees in Apr-Jun. Sequentially, the bank's total income was up 1.7% from 31.35 bln rupees. The other income declined 15% on year to 1.94 bln rupees in Apr-Jun, and was down 13.6% on a sequential basis. The provision coverage ratio was 91.57% as of Jun 30. 

The share price of the bank has improved 78.7% in the last four quarters since it started posting a provision reversal. On Friday, the shares of Jammu & Kashmir Bank closed up 0.5% at 108.41 rupees on the National Stock Exchange.  End

Reported by Krity Ambey

Edited by Vandana Hingorani

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