Despite tough challenges, we are on track to achieve our annual guidance numbers: MD & CEO
Srinagar: J&K Bank on Saturday said that it has posted a net profit of Rs 494.11 crore for the July-September quarter of the current financial year, maintaining its trajectory to meet annual market guidance despite higher provisioning requirements due to regulatory compliance.
In a statement issued here on Saturday the J&K Banks’s CEO and Managing Director Amitava Chatterjee said that the bank’s half-year net profit increased to Rs 978.95 crore from Rs 966.41 crore in the same period last year. The financial results were approved by the Board of Directors during a meeting at the bank’s headquarters. The bank’s net interest income (NII) for the first half of the year rose by 3.4% year-on-year to Rs 2,899.43 crore, with a NII of Rs 1,433.99 crore for the second quarter. The net interest margin (NIM) was maintained at 3.64% for the half-year, while other income reached Rs 405.19 crore, and the cost-to-income ratio stood at 60.80%.
The managing director and CEO, Amitava Chatterjee, highlighted the bank’s resilience in the face of disruptions caused by natural disasters, noting that profitability was impacted by an additional impairment provision of Rs 92 crore. In terms of asset quality, the bank’s gross non-performing asset (NPA) ratio improved to 3.32%, down 18 basis points quarter-on-quarter and 63 basis points year-on-year. The net NPA ratio also decreased to 0.76%. The provision coverage ratio remained above 90%, and the return on assets was recorded at 1.17% for the half-year. Chatterjee expressed optimism about achieving the annual guidance of below 3% GNPA by year-end, supported by robust risk management practices. Business growth was notable, with deposits increasing by 10.23% year-on-year to Rs 152,030 crore and net advances rising by 9.38% to Rs 105,153 crore.
The bank’s CASA ratio improved to 45.89%, reflecting strong operational discipline. Chatterjee emphasized that the bank’s performance demonstrates a commitment to sustained, quality growth, particularly in the agricultural and corporate segments. The capital adequacy ratio (CAR) for the quarter was 15.27%, up from 14.99% the previous year, indicating a well-capitalized position to support future growth. Chatterjee noted that the CAR would exceed 16% when accounting for the half-year profit. Looking ahead, the bank is focused on expanding operations beyond Jammu and Kashmir, forming strategic partnerships with top-tier corporates across India, and enhancing its presence in the personal banking segment. Chatterjee concluded by underscoring the importance of the bank’s people, processes, and technology in driving transformation and ensuring operational excellence.
