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| At 94.56 Crores, J&K Bank rides high | | | Early Times Reporter
Srinagar | July 31
Buoyed by its JK Centric business strategy, the J&K Bank posted an impressive net profit of Rs.94.56 crore for the first quarter (Q1) ended June 30, 2008 of the current financial year, an increase of 14% over the corresponding period of the previous year.
The bank's operating profits went up by 38% at Rs 181.50 crore. Importantly, the bank has been able to withstand current adverse banking scenario, wherein almost all major banks of the country are posting negative or very little growth in their profits. Bank officials attribute this performance to the bank's strategy of lending more within the state.
"The driver of this growth has been the new business strategy adopted by the bank, which envisages major focus on the State of Jammu and Kashmir. Under the new strategy, the aim of the bank is to increase lending in J&K, which is high margin low volume. For this the bank has been developing JK specific products suiting the local small economies of the state", said Dr. Haseeb A. Drabu.
Dr. Drabu further stated: "For us, new financial products come about because people in the economy find them useful. Our stream of new products has a common thread in their design and development and they fulfill the basic economic objectives of people in the local economy.
The Board of Directors of the Bank approved the Bank's accounts for the quarter ended June 30, 2008 at its meeting held in Delhi today. Posting not only impressive profits, the bank has been able to considerably improve all its ratios indicative of the bank's efficient management. The Net Interest Margins of the Bank have improved to 3.09% for the quarter ended June 30, 2008 as compared to 2.90% for the corresponding quarter of the last fiscal. Breaking away from the Industry trend, cost of deposits of the bank has come down to 5.71% for the quarter ended 30th June 2008 as compared to 5.93% for Q1 of
2007-08. The total business turnover increased to Rs 48,579 crore in Q1 FY09, an increase of 15% over the corresponding period of the previous year. The loan book as on June 30, 2008 stood at Rs.20075 crore up 15.70% from last year's Rs.17351 crore. Due to the volume growth in Advances and improvement in yields from 10.23% for Q1FY 2007-08 to 10.37% for the current quarter, the interest income on advances went up by 15% over the corresponding period of pervious year. |
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