J&K Bank has been ranked number one bank in the country in productivity & efficiency in mid-sized category in the Business Today – KMPG Best Bank 2013 study. The jury was highly impressed the way the bank has not just expanded its business in the past few years but also improved its productivity.
The No 1 ranking has been awarded to the J&K Bank when Indian banking industry is facing multiple challenges owing to economic slowdown and mounting loan defaults. The J&K Bank faced the headwind strongly, says the study.
Notably, the study has listed 13 toppers in different segments of banking operations this year.
While commenting on being ranked number one in productivity and efficiency, the chairman & Chief Executive officer, Mushtaq Ahmad said, “Despite stressed economy and going by the current industry scenario we have performed really well. We have remained focussed primarily by twin objectives of sustaining growth and maintaining a quality asset book. So far, we have pulled it through. Notably, we have improved our NIM on account of better liability management.”
About the expansion plan, Mushtaq Ahmad said, “We are targeting 1000 branches, business of about Rs.170000 crore and net profit of Rs.1700 to Rs.1800 crore by March 2016.” While giving details of expansion outside the state this year, he said, “This year, we have already opened 5 business units in Bangalore, Delhi and Hyderabad. We are prospectively looking at opening 15 more such units this fiscal in Maharashtra, Kerala, Karnataka and Delhi.”
It’s worth mentioning that the Business Today – KPMG study has highlighted that in the past few years through March 2013, it has grown its branch network to 725 from 575. Business per branch rose to Rs150 crore from Rs.101 crore while business per employee grew Rs. 11 crore from Rs.7 crore. During the sae period, the return on assets climbed to 1.7 per cent from 1.1 per cent. The bank’s net interest margin – an important indicator of profitability – widened to four per cent from three per cent.
At the moment, the bank has over 1500 delivery points which includes 750 plus business units and over 750 ATMs spread across different states of the country. In J&K state, the bank has over 650 business units and over 500 ATMs spread across the state.