J&K Bank's net profit rises 119 pc to Rs 243 crore

The Jammu and Kashmir Bank on Friday posted a 119 per cent growth in its net profit to Rs 243.49 crore for the quarter ended September 30 against Rs 111.09 crore in the year-ago period.

The Bank's net interest income (NII) rose 24 per cent y-o-y to Rs 1,204.12 crore for the September quarter and 15 per cent up at Rs 2,238.35 crore for the half year compared to corresponding periods of previous year, while the operating profit rose y-o-y by 56 per cent and 29 per cent for respective periods.

The Bank's NIM has also improved to 4.04 per cent against 3.51 per cent recorded for the corresponding quarter last year, while the return on assets (RoA) has improved to 0.71 per cent for the quarter and 0.62 per cent for the half year. The Bank's steadily moderating cost-to-income ratio has also come down to 64.19 per cent for the September quarter from the above 70 per cent levels recorded last year, a release said.

Commenting on the Bank's healthy growth, Managing Director and Chief Executive Officer Baldev Prakash said, "Along with markedly improved bottom line, our Q2 (second quarter) numbers do reflect Bank's ability to deliver on its commitments and to improve upon all its key financial indicators necessary to redirect its focus on realizing the short-term business goal of Rs 2.2 lakh crore by the end of current fiscal."

"While setting right tone for the future course of our action, I see these numbers heralding a new era of productivity and growth for the Bank and all its stakeholders," he added.

The net NPA ratio has moderated by over 90 bps to 2.10 per cent from 3.02 per cent recorded a year ago.

Provision coverage ratio (PCR) of the Bank has improved to 85.58 per cent from 81.57 per cent a year ago.

The MD & CEO said: "I feel very proud that we have brought down the GNPA figure to below 8 per cent mark - a feat achieved after seven years is like icing on the cake. And with proactive monitoring and management of Special Mention Accounts (SMAs), we are on course to deliver what we have assured to our stakeholders."

( With inputs from ANI )