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J&K Bank half-yearly profit jumps over four-times to Rs 215.41 crore

Last Updated on November 12, 2021 at 7:17 pm

J&K Bank’s half-yearly (H1) net profit for the Current Financial Year (2021-22) jumped over four-times Year-on-Year (YoY) to Rs215.41 Cr when compared with Rs 50.43 Cr recorded during the corresponding period of the last financial year. For the September quarter (Q2), 2021, the Bank posted Rs 111.09 Cras net profit registering 153%rise as compared to Rs 43.93 Cr recorded for the corresponding quarter previous year.

During the reported quarter, J&K Bank’s net interest income (NII) rose by 3 per cent YoY to Rs 973.14 Cr as compared to Rs942.61 Cr recorded last year. Meanwhile, the net interest margin (NIM) for the quarter was at 3.65%.

The announcement came after the Bank’s Board-of-Directors reviewed and approved the quarterly and half-yearly numbers during a meeting held here at the Bank’s Corporate Headquarters.

Attributing the improved bottom-line to the growing synergy between Bank’s strategy, operations and supervision, Chairman &MD R K Chhibber expressed his satisfaction over the results delivered by the Bank.“It’s a good result in given circumstances. We are poised for a long-term growth as the numbers clearly reflect the momentum steadily gaining across our performance indicators. With astronger and healthier balance-sheet, we can foresee conditions obtaining favorably for realizing our short-term business objectives besides meeting the long-term challenges”, the CMD said.

The bank’s cost of funds during the half-year came down significantly to 3.78% YoY from 4.31%recorded for the corresponding period of previous year. Over the course of last many quarters we have markedly brought down the cost of funds besides other expenses, improved recoveries and maintained the margins”, asserted the CMD.

Meanwhile, the Bank’s asset-quality remained stable as net NPA’s of the Bank as percentage to net Advances ratio stood at3.02 %while as the Bank’s gross NPA ratio has improved by 74 basis points in sequential terms to 8.95 % from9.69% recorded for earlier quarter. The Provision Coverage Ratio (PCR) of the Bank increased by 117 basis points to81.57%from 80.40% recorded last year.

“Every measure is put in place to improve the asset-quality and so far we have successfully maintained the quality of our loan book. We are also maintaining the NPA coverage ratio at over 80 percent”, commented the CMD.

The Bank’s Return on Assets (RoA) has risen sharply YoY from 0.16% to 0.38% while as the Return on Equity (RoE) has more than doubled YoY to 6.98% from 3.23%.

Driven by the 11% YoY increase in the advances from J&K UT, the total net advances of the bank stood at Rs 68341.84 Cr as on September 30, 2021 compared to Rs 66841.73 Cr recorded last year. The total deposits rose by around 6% to Rs 106267.35 Cr from Rs100469.15 Cr recorded during the corresponding quarter last year with CASA figure at 55.34 % as against 53.32 % recorded on September 30, 2020.