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Informist, Friday, Oct. 25, 2024

--J&K Bank provision coverage ratio 90.54% as on Sept 30 
--J&K Bank Basel III capital adequacy ratio 14.99% as on Sept 30 
--J&K Bank net NPA ratio 0.85% as on Sept 30 vs 0.76% qtr ago 
--J&K Bank gross NPA ratio 3.95% as on Sept 30 vs 3.91% qtr ago 
--J&K Bank Apr-Sept net profit INR 9.66 bln vs INR 7.08 bln year ago 
--J&K Bank Jul-Sept provisions INR 325.3 mln 
--J&K Bank Jul-Sept total income INR 34.20 bln vs INR 29.54 bln year ago 
--J&K Bank Jul-Sept net profit INR 5.51 bln vs INR 3.81 bln year ago 

By Krity Ambey

NEW DELHI – Jammu & Kashmir Bank broke its provision reversal streak of four quarters by making a provision of INR 325.30 million for loans in Jul-Sept. The bank's net profit for the September quarter rose 44.6% from a year ago on account of faster growth in interest income.

The Srinagar-based bank reported a net profit of INR 5.51 billion for Jul-Sept due to 13% growth in interest income. Sequentially, the bank's net profit grew 32.6%.

Shares of the bank, which were in the red for most of the day, Friday closed 4% higher at 97.63 rupees on the National Stock Exchange due to the higher than expected net profit. Anand Rathi Share and Stock Brokers had projected the bank's profit to grow 18.4% on year to INR 4.51 billion in Jul-Sept. 

The lender's total income rose 15.7% on year to INR 34.20 billion, out of which interest income was INR 31.24 billion. On-quarter, the bank's total income was up 7.3%, and interest income was 4.3% higher.

The bank's total expenditure for the September quarter rose by only 8.8% to INR 26.33 billion due to a fall in operating expenses. The operating expenses declined 4.5% to INR 9.45 billion as employee costs were lower by 8.9%.

Jammu & Kashmir Bank's provision coverage ratio as on Sept. 30 was 90.54%, against 91.57% at the end of June. The bank had last made a loan provision of INR 767.30 million in Apr-Jun 2023, and the provision coverage ratio then was 87.55%.

The lender's net non-performing ratio rose to 0.85% at the end of September from 0.76% as of Jun. 30. The gross NPA ratio increased to 3.95% from 3.91% a quarter ago. Its Basel III capital adequacy was 14.99% as on Sept. 30.

For the Apr-Sept period, the bank's profit was up 36.6% at INR 9.66 billion and interest income grew 12.9% to INR 61.18 billion.  End

Edited by Ashish Shirke

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