JK Bank Nets Rs 312 Cr Profit In Q3

SRINAGAR: Jammu and Kashmir Bank’s net profit witnessed a 79 per cent rise on a year-on-year (YoY) basis to Rs 311.59 crore for the December quarter of fiscal 2022-23. In the same quarter, last year, the profits were at Rs 173.95 crore.

A man shows new Rs 2000 currency after exchanging old Rs 500 and 1000 denominations at Srinagar on Thursday 11 November 2016. KL Image Bilal Bahadur

The bank announced the results after its Board of Directors reviewed and approved the numbers for the third quarter and nine months ended December 31, 2022, in a meeting held today at Bank’s Gurugram Office in Delhi.

Bank officials said they are on the anticipated trajectory to meet annual profit targets. The bank’s profit for nine months is up 85 per cent to Rs 721.05 crore from Rs 389.36 crore recorded during nine months of the last fiscal.

The Bank’s Net Interest Income (NII) surged by 27 per cent YoY to Rs 1257.38 crore for the December quarter when compared to Rs 993.30  crore recorded last year, while growing 19 per cent YoY for nine months to Rs 3495.73 crore. The Bank’s Operating Profit grew by 65 per cent YoY to Rs 544.11 crore for the December quarter, of 2022.

The Bank’s NIM has also improved by 54 basis points (bps) YoY to 4.10 per cent – the highest in the last seven years – while as the Return on Assets rose to 0.92 per cent for the December quarter from 0.57 per cent recorded last year. With Yield on Advances improving by 90 bps to 9.34 per cent, the Bank’s steadily moderating cost-to-income ratio has come down further to 63.71 per cent for the third quarter.

The Gross NPA Ratio of the Bank has further come down 168 bps YoY and 42 bps QoQ to 7.25 per cent for the quarter, while as the Net NPA ratio has moderated YoY by 94 bps to 2.08 per cent. The provision coverage ratio (PCR) of the Bank stood at 84.83 per cent for the quarter that ended in December 2022.

The top bank executive said they have brought down our Net NPAs to 2.08 per cent, which is the lowest in the last eight years.

Meanwhile, the Bank’s net advances are up 14 per cent YoY and 4 per cent QoQ to Rs 77639 crore during the quarter reviewed while as the deposits have grown 8 per cent from Rs 109298 crore to Rs 117935 crore. However, the Bank witnessed 21 per cent YoY growth in advances in its operational geographies across Rest-of-India (RoI).

The Bank’s overall business increased by 10 per cent to Rs 195574 crore from Rs 177664 crore recorded last year while as the Bank’s CASA Ratio continues to remain one of the industry’s best at about 54 per cent.

With the tier-II capital augmentation of over Rs 1000 crore, the bank’s Capital Adequacy Ratio rose up to 13.82 per cent as against 12.38 per cent recorded as on December 31, 2021.

The capital augmentation through the raising of tier-II bonds worth Rs 1021 crore during the December quarter has cushioned the bank to comfortably execute its envisaged growth plan, especially in the rest of India. Bank’s CRAR has improved to 13.82 per cent.


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