Continuing with its profit-making momentum, J&K Bank has posted a net profit of Rs 21.87 crore for the quarter ended June (Q1)-2019.
A statement issued by the bank announced its reviewedfinancial results for the first quarter of current financial year following theapproval of its Board of Directors at a meeting held here at its corporateheadquarters.
The bank’s operating profit for Q1 increased to Rs 410.85crore as against Rs 349.73 crore recorded during the corresponding period ofthe previous year. The Net Interest Margin (NIM) has improved to 3.90 percentas against 3.66 percent recorded for the corresponding period of the previousyear.
The advances of the bank grew Year on Year (YoY) by 13.55percent and stood at Rs 67949.45 crore as against Rs 59841.05 crore for Q1 ofthe financial year 2018-19, while the deposits have increased by 14.91 percentto Rs 88963.39 crore from Rs 77419.57 crore recorded during the correspondingperiod of the previous financial year.
The total business of the bank is up by 14.31 percent to Rs156912.84 crore when compared with the corresponding period of the previousyear.
The gross NPA ratio of the bank has come down to 8.48percent for the quarter as against 9.83 percent, while as the net NPA ratio is4.36 percent as against 4.65 percent for the corresponding period of theprevious financial year.
The NPA coverage ratio stood at 66.61 percent. The CapitalAdequacy Ratio of the bank under BASEL III is 11.76 percent as on 30 June 2019.
On the expansion front, the bank added two Business Unitsand commissioned 28 ATMs to its expanding network across the state and beyondduring the quarter.
The Chairman and Managing Director of the bank RK Chhibbersaid “by preferring provisioning over profits we have laid a solid foundationfor a strong performance in the coming quarters of the financial year”.
He said this has been made possible by the support of thestate government- bank’s majority shareholders, the counsel of the bank’sboard, the loyalty of bank customers and the utter devotion of human resourceof the institution.
“The recent implementation of RTI Act in the bank besidesadoption of CVC guidelines shall further strengthen governance and complianceframework thus reinforcing the bank’s operational and administrative stabilitybesides ensuring greater transparency,” Chhibber said.
He said recovery of NPAs and containment of furtherslippages remains top priority of the bank as “we sustain our focus onproviding best-in-class service to all stakeholders”.
Chhibber said the bank shall continue to focus on increasinglow-cost deposits and scaling up the flow of credit to priority sector withinthe state to boost lending to agriculture and allied activities besideshandicrafts, tourism and SME sectors.
“In the rest of country, our lending focus shall remain onretail sector besides top rated corporate entities and PSUs,” Chhibber said.