Q2 results reflect trend of turn-around: CMD
Precious Kashmir News
Srinagar, Nov 6: J&K Bank posted a net profit of Rs 43.93 Cr for the second quarter (Q2), of the current financial year (CFY), ended September, 2020.The bank announced its reviewed financial results for the Q2 and H1 of CFY today after its Board-of-Directors approved the quarterly and half-yearly numbers during a meeting held in Jammu. For the half-year ended September, 2020 (H1), the bank’s net profit is at Rs 50.43 Cr.
Indicative of bank’s markedly improved asset-quality as on 30th September, 2020, the net NPA ratio has sharply come down to 3.03 % from 4.48 % recorded as on September 30, 2019 while as the Gross NPA ratio has decreased considerably to 8.87 % from 10.64 % recorded last September. The provisioning for bad loans is at 80.40 %, which is one of the highest in the industry as against 71.46 % recorded during the corresponding quarter last year. The bank’s NIM for the quarter reviewed is 3.68 % while as the bank’s Capital Adequacy Ratio is at 11.86 % as against 11.17 % recorded as on September 30, 2019.
Commenting upon the financial results of the bank, Chairman and MD Rajesh Kumar Chhibber said, “Despite difficulties we have come out with promising numbers. These Q2 results certainly reflect the trend of turn-around that J&K Bank has scripted on YoY basis.”
“With improving financial indicators, posting net profit of Rs 43.93 Cr after the quarterly loss of Rs 916.82 Cr last September, is quite encouraging for us as we move ahead on the envisaged trajectory of growth towards institutional excellence. For all this I thank the entire J&K Bank family for putting in best of their efforts as always, our Board of Directors for their generous guidance and our promoter and major shareholder i.e. the Government of J&K UT – led by the Lt Governor Manoj Sinha– for their continuous support and all other stakeholders for reposing their trust in this premiere financial institution of the region”, he added.
“Having said that, I strongly believe that the profit for last two quarters, significantly improved asset-quality with an attendant upward trend in other key financial indicators”, the CMD asserted, “will definitely send positive signals to the markets and boost the bank’s ability and prospects to mobilize the Rs 4500 Cr capital already approved by its board of Directors and the shareholders.”
“Notably, to strengthen the Bank’s Board further, the bank has today inducted Ex Director General (Accounts & Treasuries) J&K, Dr. Mohammad Ishaq Wani as Additional Director on BoD”, he added.
The bank, he further said, is already working to avoid any further slippages while remaining open to help and support its clients. “However, we have to be very cautious and vigilant”, the CMD said and stressed that the bank shall now lay more emphasis on its recovery measures as things have begun to improve on ground.
Meanwhile, the bank’s cost of deposits during the quarter has improved to 4.20 % from 5.11 % recorded for the corresponding quarter of previous year. The advances in J&K UT that form 67 % of the bank’s total advances registered a growth of 15 % while as the total net advances of the bank stood at Rs 66813.87 Cr as on September 30, 2020. The total deposits rose by around 10 % to Rs 100469 Cr from Rs 91620 Cr recorded during the corresponding quarter last year with CASA figure at 53.32 % as against 50.61 % recorded on September 30, 2020. Notably 88 % of the bank’s total deposits are from J&K UT alone.