SRINAGAR: In a momentous stride towards financial excellence, Jammu and Kashmir Bank has unveiled an exceptional performance for the fiscal year 2023-24. Addressing a packed audience at the bank’s Corporate Headquarters on Monday, Managing Director and CEO Baldev Prakash, divulged a series of staggering figures and provided an in-depth analysis of the bank’s commendable journey marked by record-breaking profits and robust growth.
The highlight of the press conference was the revelation that J&K Bank has achieved a remarkable net profit of Rs 1767 crore for the fiscal year, representing an astounding 48 per cent increase from the previous year’s figure of Rs 1197 crore. This achievement, Prakash emphasised, underscores the bank’s unwavering commitment to excellence and prudent financial management, positioning it as a beacon of success in the banking sector.
Expressing his gratitude to the board management and stakeholders, Prakash particularly acknowledged the support received in overcoming challenges related to asset quality, citing a significant reduction in Non-Performing Assets (NPA) from 9.67 per cent to 4.08 per cent gross NPA and 0.79 per cent net NPA. This transformation, he noted, was a result of concerted efforts and strategic initiatives aimed at enhancing asset quality and minimising risk.
The bank declared a dividend of Rs 2.15 per share, reflecting its commitment to rewarding stakeholders for their trust and support. This dividend announcement comes alongside a series of other impressive financial metrics, including a net interest margin (NIM) of 3.92 per cent and a return on assets (ROA) of 1.22 per cent, showcasing the bank’s strong operating results and financial resilience amidst a dynamic economic landscape.
Prakash also provided insights into the bank’s substantial growth in deposits and advances, painting a picture of robust financial expansion. Deposits reached an impressive Rs 13,47,75 crore, registering a substantial year-on-year growth of 10.4 per cent, while advances surpassed the one lakh crore rupee mark for the first time, totalling Rs1,00,17,78 crore and representing a notable 14 per cent year-on-year growth. Notably, 70 per cent of credit is deployed in the union territories of Jammu Kashmir and Ladakh, underscoring the bank’s regional focus and commitment to driving economic growth in its core operational geography.
Prakash said there were “governance concerns” at the Bank in past. He acknowledged the infusion of Rs 1000 crore by the government as a critical measure to ensure compliance with regulatory guidelines. He emphasised the importance of maintaining a sufficient capital adequacy ratio, stating, “That (Rs 1000 crore capital amount) was very very critical because the capital adequacy ratio of the bank has to be up to minimum expectations as per the regulatory guidelines.”
Responding to queries regarding the Bank’s scrutiny by the Anti-Corruption Bureau due to previous governance issues, Prakash reassured stakeholders of concrete actions taken to address these challenges. He affirmed, “We have taken very very concrete steps to ensure that there are no governance and compliance issues. The policies of the Bank are well defined and well institutionalised now and we expect that with the establishment of the state of art technology and as well as the best policies, we will be able to handle all these issues more effectively.”
Prakash and his officers admitted that the bank has lost more than ten per cent of the market share in the last few years. “We have improved our technology platforms and we are working to regain that,” the CMD said. He also admitted a marginal fall in the bank’s topline income and insisted part of the profits were driven by recoveries. However, he insisted that all recoveries were carried out strictly as per the regulatory restrictions.
Asked about the understaffing in the branches, Prakash said they have hired a consultancy and it will act upon its suggestions. The officers flanking Prakash said while the bank has the best CASA ratio, provisioning stands at the best in the market, but it is still unable to manage the higher cost-to-income ratio. This could be the reason why the bank will think seriously before going for new recruitments.
Asked about why the JK Bank employees are being deputed on election duty like the PSU banks, one officer claimed that the JK Bank for all practical purposes is a PSU Bank.
Besides, the Bank has demonstrated a steadfast commitment to Corporate Social Responsibility (CSR) initiatives, allocating approximately Rs 19 crore towards various social welfare programmes during the fiscal year. This dedication to social good aligns with the bank’s broader mission of fostering socio-economic development in the region, embodying its role as a responsible corporate citizen, the Chairman said
Looking ahead, Prakash expressed confidence in the bank’s ability to scale newer heights while embracing evolving industry practices. He emphasised the bank’s focus on enhancing digital initiatives, investing in its workforce through HR initiatives, and fostering entrepreneurship to drive socio-economic development in the region.
