SRINAGAR: Jammu and Kashmir Bank reported a 35 per cent YoY increase in Net Profit to Rs 421.08 Cr for Q3FY 2024, compared to Rs 311.59 Cr in the same period last fiscal. The 9-month profit surged by 57 per cent to Rs 1128.60 Cr. Notably, the Gross NPA Ratio improved to 4.84Per cent, down 241 bps YoY and 42 bps QoQ, with Net NPA ratio below 1Per cent at 0.83Per cent. The Provision Coverage Ratio (PCR) strengthened by 678 bps annually to 91.61 per cent.
MD & CEO, Baldev Prakash, highlighted the bank’s asset quality as a standout metric. He emphasised the reduction in GNPA, stating, “Our GNPA has further reduced, and we remain on track to meet our annual market guidance of GNPA around 4.5Per cent, while our net NPA is already below 1Per cent. In terms of provisioning, we are comfortably placed at PCR of above 90 per cent.”
Operating numbers reveal a 35 per cent increase in Profit after Tax (PAT) to Rs 421.08 Cr for Q3, with the 9-month net figure rising by 57 per cent to Rs 1128.60 Cr. Net Interest Income (NII) grew 11 per cent YoY for 9 months to Rs 3897.57 Cr, and Operating Profit stood at Rs 550.54 Cr. The Net Interest Margin (NIM) for the quarter was 3.83Per cent, and the Return on Assets (ROA) increased by 23 bps YoY to 1.15Per cent.
Baldev Prakash expressed confidence in achieving annual growth guidelines, noting, “Our bottom line got the boost with major recoveries contributing to provision write-backs despite making additional provisions for NPAs at higher than RBI prescribed rates, resulting in negative credit costs for the Quarter/9-month period.”
Business growth is evident with a 16Per cent YoY increase in net advances to Rs 89752.36 Cr, while deposits grew by 9Per cent to Rs 128542.47 Cr. The overall business expanded by 11.61 per cent to Rs 218650 Cr. The CEO attributed growth to robust retail performance, especially in Housing (21Per cent), SME (21Per cent), and Credit Card (24Per cent). The Rest-of-India (RoI) portfolio saw a 19 per cent YoY increase in advances.
Capital position strengthened with a Tier 1 capital augmentation of over Rs 750 Cr through Qualified Institutional Placement (QIP), resulting in a Capital Adequacy Ratio (BASEL III) of 14.18 per cent. Baldev Prakash noted, “The recent successful QIP has sufficiently strengthened our capital position, boosting our perception in the market. We will use this CET1 capital of Rs 750 Cr as growth capital to augment our capacity to fund our business plans.”
He added, “With the QIP, our net worth has crossed Rs 10000 Cr for the first time and is currently above Rs 11000 Cr.”
