Earnings Review
Provision reversal, interest gain push J&K Bk profit up 26%
This story was originally published at 19:28 IST on 20 January 2025
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--J&K Bank Apr-Dec total income INR 100.57 bln vs INR 89.03 bln year ago
--J&K Bank Apr-Dec net profit INR 14.98 bln vs INR 11.29 bln year ago
--J&K Bank Basel-III capital adequacy ratio 15.09% as on Dec 31
--J&K Bank Oct-Dec reversed INR 98 mln provisions vs INR 94.3 mln year ago
--J&K Bank: Net NPA ratio 0.94% as on Dec 31 vs 0.85% qtr ago, 0.83% yr ago
--J&K Bank: Gross NPA ratio 4.08% as on Dec 31 vs 3.95% qtr ago, 4.84% yr ago
--J&K Bank Oct-Dec total income INR 34.48 bln vs INR 30.63 bln year ago
--J&K Bank Oct-Dec net profit INR 5.32 bln vs INR 4.21 bln year ago
By Krity Ambey
NEW DELHI – Steady interest income and provision reversal pushed Jammu & Kahsmir Bank's net profit 26.3% higher in the December quarter. The lender reported a provision reversal of INR 98 million again, after breaking its four-quarter streak of provision reversal in Jul-Sept.
The bank reported a net profit of INR 5.32 billion for Oct-Dec, higher than the analyst expectation of INR 5.01 billion. Sequentially, however, the profit was slightly lower from INR 5.51 billion in Jul-Sept.
The Srinagar-based bank's total income grew 12.6% to INR 34.48 billion in the quarter ended December, out of which interest income was INR 32.10 billion. On quarter, total income and interest income were up only marginally from INR 34.20 billion and INR 31.24 billion, respectively.
As Jammu & Kashmir Bank detailed its earnings post market hours, its share price was not influenced by the quarterly results. The shares traded in the range of INR 94.80 to INR 98.47 on Monday on the National Stock Exchange and closed 3.6% higher at INR 97.96.
Jammu & Kashmir Bank's provision coverage ratio was 89.67% as of Dec. 31, against 90.54% at the end of September. The bank had made a loan provision of INR 325.30 million in Jul-Sept. Before that, it had reported a 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 asset ratio rose to 0.94% at the end of December from 0.85% as of Sept. 30. The gross NPA ratio increased to 4.08% from 3.95% a quarter ago. Its Basel III capital adequacy was 15.09% as of Dec. 31.
For Apr-Dec, the bank's net profit was up 32.7% at INR 14.98 billion and interest income grew 13% to INR 100.57 billion. End
Edited by Akul Nishant Akhoury
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