JK Bank’s Q1 net profit up by 22%

Srinagar: J&K Bank’s net profit in the Q1 of the ongoing fiscal has increased by Rs 158.76 crore, marking a growth of 22.08 per cent over the corresponding quarter of the previous financial year.
In a release issued here on Monday, the bank announced its reviewed financial results for the quarter ending June 2015 following the approval of its Board of Directors at a meeting held here at Corporate Headquarters of the Bank.
The bank’s net interest income for the Q1 increased by about 9 per cent, standing at Rs 694.84 crore as against the previous figure of Rs 637.69 crore.
Its Non-interest income has improved to Rs 135.62 crore as against Rs 130.99 crore recorded during the corresponding quarter of the previous year.
The Net Interest Margin (NIM) jumped to 3.93 per cent as against 3.63 per cent while the Return on Assets (RoA) has improved to 0.88 per cent as compared to 0.72 per cent recorded during the corresponding period of the previous year.
The operating profit is Rs 458.31 crore as against Rs 447.52 crore recorded during the corresponding period of previous year.
The deposits of the bank were at Rs 62,264.91 crore while its advances have reached Rs 43,267.28 crore, taking the total business of the bank to Rs 1, 05,532.19 crore.
The Net NPA ratio of the bank stood at 2.95 per cent for the quarter while as the Provision Coverage Ratio (PCR) is 60.68 per cent
The Capital Adequacy Ratio of the bank under BASEL (II) is 13.11 per cent while under BASEL (III) it is 12.93 per cent as on June 30, 2015 against the regulatory stipulation of 9 per cent. During the quarter, the bank added 21 ATMs and four Business Units, raising the total number of its branches to 821 and ATMs to 906.
The bank said its Q1 profits have increased by 56.24 per cent when compared with the bank’s profits earned in Q4 of the FY 2014-15.
Meanwhile, the bank has reorganised its zonal structure by creating four more business zones, two each for Kashmir and Jammu division, in order to increase its operational efficiency in the state.
The number of business zones in the state has reached to 11, it said, adding the decision “is part of a consolidation process that augments the banks expansion plans”.