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J&K Bank Q3 net profit up 79% YoY to Rs 312

as the Net NPA ratio has moderated YoY by 94 bps to 2.08%.

Provision coverage ratio (PCR) of the Bank stood at 84.83% for the quarter ended December, 2022.

 

“Through an ensured institutional focus on the asset-quality, we have brought down our Net NPAs to 2.08%, which is the lowest in last eight years. While each passing quarter is witnessing an improvement in our GNPA figure, we have reduced it further to around 7%, and our Provision Coverage Ratio for the quarter is about 85%”, said the MD & CEO regarding the bank’s asset-quality.

 

“And with strict regime of early-warning systems, pro-active monitoring and review mechanisms at all levels coupled with rolling out of timely OTS schemes, we are confident of reducing our gross NPAs to around 6% by the end of fiscal”, he added.

 

Business Growth

 

Meanwhile, the Bank’s net advances are up 14% YoY and 4% QoQ to Rs 77639 Cr during the quarter reviewed while as the deposits have grown 8% from Rs 109298 Cr to Rs 117935 Cr. However, the Bank witnessed 21% YoY growth in advances in its operational geographies across Rest-of-India (RoI).

 

The Bank’s overall business increased by 10% to Rs 195574 from Rs 177664 Cr recorded last year while as the Bank’s CASA Ratio continues to remain as one of the industry best at about 54%.

 

“Both our advances and deposits have grown by 14% and 8% respectively, which are quite in line with industry averages. However, witnessing growth at 21%, the Rest-of-India share in the overall loan-book has crossed 30% mark during the December quarter in line with the financial-year guidelines”, said MD & CEO while commenting on growth numbers.

 

Comfortable Capital Cushion

 

With tier-II capital augmentation of over Rs 1000 Cr, the bank’s Capital Adequacy Ratio rose up to 13.82% as against 12.38% recorded as on December 31, 2021.

 

“The capital augmentation through raising of tier-II bonds worth Rs 1021 Cr during the December quarter has cushioned us to comfortably execute our envisaged growth plan especially in rest of India. Our CRAR has improved to 13.82%”, asserted MD & CEO Baldev Prakash.

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