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| J&K Bank’s half-yearly net profit up at Rs 979 Cr, Q2 net at Rs 494 Cr | | Despite tough challenges, we are on track to achieve our annual guidance numbers: MD & CEO | | Early Times Report
SRINAGAR, Oct 18: While maintaining higher provisioning requirements owing to regulatory compliance, J&K Bank posted a net profit of Rs 494.11 Cr for the July-September Quarter (Q2) of current financial year (CFY), remaining well on course to meet its annual market guidance. The Bank’s net profit for half-year (H1) witnessed an increase to Rs 978.95 Cr from Rs 966.41 Cr recorded for H1 last FY.
The Bank announced financial numbers after its Board-of-Directors reviewed and approved the quarterly and half-yearly figures during a meeting held at the Bank’s Corporate Headquarters.
Key Highlights
Moderated by the provisioning of Rs 92 Cr towards its investment in the Regional Rural Bank — Jammu and Kashmir Grameen Bank — following the amalgamation of EllaquaiDehati Bank with the erstwhile J&K Grameen Bank under Central Government’s "One State, One RRB’ direction, the Bank today recorded a net profit of Rs 494.11 Cr for the Q2 and Rs 978.95 Cr for H1 of the CFY.
Reflecting steady core operations, the Bank’s Net Interest Income (NII) for the half-year (H1) is marginally up by 3.4% Year-on-Year at Rs 2899.43 Cr, while for Q2 NII stood at Rs 1433.99 Cr. In line with its market guidance, the Bank has maintained its NIM at 3.64% for the half-year (H1). The Bank’s other income for H1 was at Rs 405.19 Cr while the Cost to Income Ratio for the half-year stood at 60.80%.
Commenting on the Bank’s Q2H1 numbers, MD & CEO Amitava Chatterjee said, “In spite of widespread disruptions during the first quarter following the Pahalgam incident and the extensive damage caused by floods in the second quarter, the overall growth we have recorded is both encouraging and reassuring.” “Even though profitability for Q2 was moderated due to an additional impairment provision of Rs 92 Cr made during the quarter in compliance with regulatory requirements, the performance is better than what was anticipated under the challenging circumstances.”, he added. Notably, the Bank has made a total provisioning of Rs 180 Cr towards Jammu and Kashmir Grameen Bank during the first two quarters of the current financial year. Excluding the impact, the Bank’s H1 profitability would be upwards of 15% YoY.
Asset-Quality
Despite difficult situation arising out of Pahalgam attack in Q1 and floods, landslides thereafter in Q2, the Bank has gained further stability in asset quality. During the quarter, the Bank’s Gross NPA Ratio has declined 18 basis-points QoQ to 3.32% and decreased by 63 bps YoY from 3.95% recorded in September, 2024. |
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