SRINAGAR: J&K Bank on Wednesday declared the reviewed results for the quarter and nine months ended December 2017 subsequent to adoption of the numbers by the board of the bank in a meeting held in Jammu, reporting a net profit of Rs 174 cr.
Commenting post declaration of the results, J&K Bank Chairman and CEO Parvez Ahmad said that over the past nine months the bank has been successful in fine tuning and stabilising its business model.
“Today we are confident about the growth of our balance sheet as during the first nine months we have achieved steady growth across all zones of the bank,” Parvez said.
He said that on the NPA side the accretions have tapered off though provisioning pressure will remain for a few more quarters, an official handout read.
According to the handout, the bank has achieved an incremental credit growth of 16% in the first 9 months of the FY 17-18 which is predominantly retail within the state and highly rated corporate/PSUs in rest of India.
On YOY basis the bank’s credit portfolio has grown 28% from Rs 45,086 cr as on 31.12.2016 to Rs 57,929 cr as on 31.12.2017. “The bank is improving lending to productive sectors within the state as we see a large base of credit demand which remains untapped,” Parves added.
To make the credit dispensation hassle free the bank is simultaneously driving the push to sourcing of new retail loans to digital channels and during the quarter being reported 30% of its retail loans have been processed through digital channels.
Delineating the business numbers for the 9 months period Parvez said,” Deposits and advances stood at Rs73,155 cr and Rs 57,929 cr as on Dec 2017 against Rs 72,463 cr and Rs 49,816 cr as on March 2017.”
Aided by a better liability mix with CASA ratio of close to 50% the NIIM (index of profitability) has improved by 58 basis points to 3.83% during the first nine months, he said.
The NIIM for the 3rd quarter crossed the 4% mark and the cost of deposits moderated to below 5% level as on 31st December 2017.The NPA coverage ratio of the bank has improved to 69.51% from 61.73 % a year ago, read the handout further.
Lauding the support of the state government that also promotes of the bank, J&K Bank Chairman said, “We are being supported very well by the state government that has infused additional equity of Rs.532 crores to help the bank to meet the regulatory capital requirements.”
By rolling out Chief Minister’s Business Interest Relief Scheme for all the RBI approved re-structured accounts, the state government is incentivising the restructured account holders to repay the bank’s dues timely which shall have a salubrious effect on the repayment in restructured accounts by the affected borrowers who will have to repay their 2/3rd part of interest to avail of the 1/3rd part as incentive from the government, the handout added.