KL Desk
Srinagar
All set to achieve a net profit target of Rs.1000 crore and business target of Rs.100000 crore by March 2013, the Jammu and Kashmir Bank Ltd registered a net profit of Rs 515.62 in the first six months ended September 2012.
The increase in the net profit is 35 per cent when compared with Rs 381.94 crore of the corresponding period of the last financial year (2011-2012).
Registering an increase of 35 per cent for the second quarter (Q2), the bank registered a net profit of Rs 269.53 Cr as against Rs 199.65 Cr recorded for the corresponding quarter of last financial year.
The half yearly results ending September 30, 2012 were announced following the approval of its Board of Directors in a meeting held in Srinagar.
The bank witnessed an increase of 17.89 per cent increase in business, which has reached to Rs 89,198 Cr from Rs 75,660 Cr recorded during the corresponding period last FY.The interest income has grown by 34.60 per cent to Rs 2976.75 Cr.
The operating profit has gone up by 33.17 per cent from Rs 629.15 Cr to Rs 837.85 Cr. The NPA Coverage Ratio increased to 93.30 per cent from 92 per cent recorded during the corresponding period last FY.
The Bank’s Earnings per Share have considerably increased by 35 per cent reaching 212.72 from 157.57.
Commenting on the results, Chairman and CEO of the bank Mushtaq Ahmad said, “The results are encouraging and we hope to achieve our target figures for the FY 2012-13 well in time. Our key ratios have improved further.”
However, in the coming quarters we will speed up the consolidation of expanding structural and systematic frameworks.”
With Bank’s massive out-reach campaign unfolding across production belts of the state, he said, “Agriculture have received special focus in our lending policy during the current financial year.”
Dwelling briefly upon the lending policy in agriculture, Chairman said, “Under the Apple Project in two districts of Baramulla and Shopian, the Bank has already financed 16300 growers to the tune of Rs 343 Cr. Besides, 1.38 lacs Kissan Credit Cards (KCC) have been issued to farmers across the state till date amounting to Rs 471 Cr.”
The Bank plans to extend the Apple Project to all districts of J&K soon. This is in addition to the finances pumped by the Bank in the agricultural sector, which is more than Rs 1200 Cr, he added.
Pertinent to mention that shortly after the Bank posted 35 per cent increase in its Q2 results, there was surge in the stock price. With an appreciation of 9.4 per cent in its share price, J&K Bank today topped gainers list as its stock hit an all time high of Rs 1225 and Rs 1224.55 at Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) respectively.
The share price witnessed a sharp increase of Rs 105 at both the stock exchanges.
Commenting on the unprecedented surge in the Bank’s share price, Chairman and CEO said, “We value the trust of our investors as one of the key factors responsible for our uninterrupted growth story. This is the shareholders confidence in the bank.”
Notably, more than 7.4 lakh shares were traded during the day at both the bourses.
