SRINAGAR: Jammu and Kashmir Bank (JKB) has announced a significant increase in quarterly profits, posting Rs 415.49 crore as profit-after-tax (PAT) for the April-June quarter of the current financial year. This marks a 27 per cent year-on-year (YoY) increase from Rs 326.45 crore recorded for the same quarter in the previous financial year. The announcement followed the approval of the quarterly numbers by the Bank’s Board of Directors at a meeting held at the Bank’s Corporate Headquarters.
JK Bank Headquarters in Srinagar
The Bank’s Net Interest Income (NII) grew by 7 per cent YoY to Rs 1369.22 crore in the first quarter, with the Net Interest Margin (NIM) improving by 9 basis points quarter-on-quarter (QoQ) to 3.86 per from 3.77 per cent in Q4 of FY 2023-24. The core operating profit increased by 13 per cent YoY, reaching Rs 594.67 crore from Rs 528.05 crore. The Bank’s Return on Assets (RoA) stood at 1.08 per cent, up from 0.94 per cent during the same period last year.
“Our performance in the first quarter reflects the resilience and strength of the Bank,” a bank statement quoted its Managing Director and CEO saying. “The key financial metrics have shown notable improvements, reflecting healthy progress. With our Return on Assets above 1%, we have also maintained the NIM near 4 per cent despite pressure on margins.”
The Bank’s advances grew over 13% YoY, standing at Rs 95449.77 crore compared to Rs 84475.63 crore in the corresponding quarter a year ago. Deposits increased by 9% to Rs 132573.13 crore from Rs 121297.49 crore last year. The CASA Ratio for the quarter was 49.77%.
“There is a healthy growth in our advances and deposits, demonstrating the trust and loyalty of our customer base, especially in our core operational geography,” the MD said. He acknowledged a temporary dip in the CASA ratio due to increased government fund outflows but expressed confidence in maintaining it above 50% annually. “We foresee growth in business from the developmental drive of massive infrastructure being put into place to meet the growing tourist inflow into J&K,” he added.
The Bank’s gross non-performing assets (GNPA) reduced by 17 basis points to 3.91% from 4.08% in the March quarter of FY 2023-24. The net NPA for Q1 improved to 0.76% QoQ from 0.79% in Q4 of the previous financial year. The NPA Coverage Ratio for Q1 stood at 91.57%, up from 87.55% last year.
“We have brought our GNPA below 4% this quarter, and the trend will continue to be healthy in our asset quality, which continues to be our star metric,” the MD & CEO asserted.
Highlighting the Bank’s “transformation”, the MD and CEO said, “We are steadily emerging as a lean, agile, and digitally driven financial institution. We have transformed the digital interface of the Bank and are on track to achieve 100% digitalization in our services and internal processes. By the end of the current financial year, we plan to digitally onboard our remaining products, opening up infinite possibilities for online journeys within the banking sector.”
“Our commitment to innovation and customer-centric growth shall continue, delivering value to our customers and stakeholders while maintaining our position as the leading financial institution in the region and the country,” he added.
The Bank’s Capital Adequacy Ratio (BASEL III) improved to 15.07% during the quarter, up from 14.83% last year.
“With CRAR above 15% level, we are well-positioned to sustain our growth trajectory,” the MD and CEO remarked.
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