J&K Bank Results 2014-15: Strengthening Balance Sheet Remained Top Priority, says CEO


J&K Bank posted net profit of Rs 508.60 Cr for the Financial Year 2014-15.

The audited financial results for the fourth quarter of the year ended March 2015 were announced today following the approval of Bank’s Board of Directors in their meeting held here at Corporate Headquarters, a bank statement said Saturday evening.

“For Q4 ended March 2015, the Bank posted net profit of Rs. 101.61 Cr,” the statement said.

The bank earned an interest income of Rs. 7061.13 Cr which is up by 4.35 pc from Rs 6767 Cr recorded during the last FY.

“The Business of the bank stood at Rs 110342 Cr as against Rs 115720.46 Cr recorded during the last FY. The Loans and Advances of the bank stood at Rs 44585.82 Cr while as the deposits of the bank reached Rs 65756.19 Cr at the end of March, 2015,” the statement said.

The total income of the bank is up by 6.96 pc having increased to Rs 7655.10 Cr from Rs 7157.26 Cr recorded during the previous year, it added.

The statement detailing about the bank’s performance said that the bank’s operating profit during the year has reached Rs 1835.83 Cr while as the net worth of the bank increased to Rs 6110.05 from Rs. 5723.61 Cr which is up by 6.75 pc.

“The key ratios are on the improving curve during the year. The NPA Coverage Ratio is at 59.02 pc as against 51 pc on December31, 2014,” it said.

Net Interest Margin (NIM) for the 4th quarter of current FY is 3.92 pc while as it stood at 3.81 pc for the financial year 2014-15. The CASA Ratio has increased from 39.06 pc to 41.79 pc while as the Yield on Advances is 11.52 pc.

During the FY 2014-15 the bank has opened 40 new Business Units besides commissioning 83 ATMs across the country.

The meeting recommended dividend of 210 pc to shareholders subject to the approval at the upcoming Annual General Meeting – AGM.

Speaking in the meeting, the CEO and Chairman J&K Bank, Mushtaq Ahmad said, “the stress in country’s economy is far from over. Very slow economic growth across the country has compounded the revival of stressed assets in the banking system which in turn has resulted in continuation of stress on asset-quality of the banks during the FY 2014-15.”

“As such there is a course correction going on across the industry and we too had to go for higher provisioning with the objective of having a higher Provision Coverage Ratio (PCR). We have provided Rs 105 Cr in excess of required regulatory requirements thereby improving our PCR to 59 pc from 51 pc as recorded in the quarter ending December 31, 2014,” he said adding that the cleansing and consolidating of balance sheet has led to a major slash in the bank’s profits because strengthening balance sheet remained our top priority.

Even now the bad loans continue to swell across the industry, which analysts and rating agencies predict will increase during the current year as well, he said.

“Thus improving our asset quality shall engage our total focus till economic growth starts picking up and NPA scenario improves. Besides, we have put in place a robust mechanism for NPA management enabling us to track down early warning signals in our loan-book.”

Having said that, Mushtaq said that they will maintain our growth momentum and profitability with an improved Net Interest Margin (NIM) during the current fiscal.

“At home front in J&K, we are slowly but surely coming out of the effects of damaging September deluge and I expect a steady increase in lending here particularly in infrastructure, agriculture and SMEs in the current financial year,” he said.

Playing the developmental role in revival of state economy, the bank has already taken all possible measures aimed at rehabilitation of units affected by floods.

Post-floods, Mushtaq said that bank has disbursed around Rs 700 Crores additionally through our relief and rehabilitation package in the state. Besides, our business partner Bajaj Allianz has already paid out more than Rs 1,000 Crores while settling 30,000 claims of our customers from different sectors of economy including SMEs, handicrafts and small businesses.


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