Srinagar, Oct 25(KNS): J&K Bank’s net profit rose by 44.6% Year-on-Year (YoY) to Rs 550.92 Cr for the September Quarter (Q2) of the current financial year (CFY), compared to Rs 381.07 Cr in the same quarter last year. The Bank’s net profit for the first half (H1) increased by 36.6% to Rs 966.41 Cr from Rs 707.52 Cr recorded in H1 of the previous financial year.
The financial results were announced after a Board of Directors meeting at the Bank’s Corporate Headquarters.
The Bank’s operating profit for Q2 increased by more than 47% YoY and 32% Quarter-on-Quarter (QoQ) to Rs 787 Cr. The Bank’s Net Interest Income (NII) rose by 7.7% YoY to Rs 1,435.93 Cr, with a total of Rs 2,805.15 Cr for H1. Other income surged by 55.6% YoY to Rs 296.08 Cr for Q2.
The Bank’s Net Interest Margin (NIM) improved to 3.90% from 3.86% in Q1. The Cost to Income Ratio improved to 54.56% YoY from 64.93% and from 61.96% in the June quarter.
MD & CEO Baldev Prakash stated, “Our Q2 results align with our expectations. The growth underscores our financial practices and operational efficiency, reflecting our commitment to deliver value for stakeholders.”
He added, “With a healthy balance sheet and a diversified portfolio, we are positioned to maintain growth and capitalize on opportunities.”
The Bank’s Gross Non-Performing Asset (NPA) Ratio decreased by 131 basis points YoY to 3.95%, down from 5.26%. The Net NPA ratio also moderated by 19 basis points to 0.85% YoY. The Return on Assets (RoA) increased to 1.41% YoY and QoQ, while the Provision Coverage Ratio (PCR) improved by 55 basis points YoY to 90.Click Here To Follow Our WhatsApp Channel54%.
Prakash expressed satisfaction with the asset quality, noting, “Keeping our gross NPA below 4% highlights our risk management practices. We focus on proactive asset management and sustainability in lending.”
Deposits and Advances grew YoY by 9% and 9.5% to Rs 137,918 Cr and Rs 96,139 Cr, respectively. The Bank’s CASA stood at 48.60%.
Prakash mentioned, “In the September quarter, our advance growth is near 10% while deposit growth is within the industry average. We will strengthen our deposit base and increase the loan book for top-line growth.”
The Bank’s Capital Adequacy Ratio (CAR) for the quarter was 14.99%, compared to 14.53% last year. Prakash stated, “With a CAR of almost 15%, we are well-capitalized to support future growth while maintaining financial discipline.”
Prakash emphasized the importance of digital growth, stating, “Our role as a developmental financial institution is not just to provide credit; we must equip businesses with tools for sustainable growth. By enhancing our digital services, we improve customer experiences in banking.”
He added, “We are on a digital journey that allows customers to manage finances online, from account opening to loan applications. We aim to support businesses, especially MSMEs, with efficient management solutions through collaborations with fintech partners.”(KNS).