JK Bank share finds favour with stock market analysts

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Srinagar

At a time when the banking industry is going through challenging times and most of the government-owned banks are not finding favour with the market analysts, the state-owned Jammu and Kashmir Bank have become the cynosure of the stock market analysts with majority of the analysts recommending a buy on the share of the bank to their clients with an expected return of 70% in the near term, said JK Bank spokesman in a statement.

“A report titled ‘5 Banking Stocks that Look Attractive Again’ compiled by the ETIG Database wherein they have recommended five banking sector stocks including the J&K Bank, has been published by a leading business daily,” said the spokesman.

The spokesman said that about the Jammu and Kashmir Bank the report has stated, ”This bank enjoys a dominant position in Jammu & Kashmir (85% of its deposits and 51% of its loan book comes from J&K.”

“Due to its high CASA ratio of 53%, net interest margin (NIM) is also at a high 4%. Improvement in business environment and reduction in stressed assets are other points worth mention. Net profit for the quarter jumped 31% y-o-y and 78% q-o-q. Its gross and net NPA fell to 9% and 3.91% during the second quarter of 2018-19. With the pace of stressed asset accretion moderating, credit cost should moderate further,” he said.

“Credit growth will get a boost from the resumption of tourism, tapping of the under-penetrated market of credit to apple growers, the rise in investment activity, etc. The report has further added that the analysts believe this trend will continue,” said spokesman in a statement.

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