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| JK Bank op profit up 31% | | |
EARLY TIMES REPORT
Srinagar, Jan 29: Continuing its steady performance, J&K Bank registered a net profit of Rs. 392.33 crore for the nine months ended December 2009, up by 18 per cent when compared to the net profit of Rs.331.16 crore of the corresponding period of the previous financial year. For the third quarter ended December 2009, the net profit was registered at Rs 139.99 crores as against Rs 120.67 crores during the same quarter last financial year. The operating profits of the Bank increased by 31 per cent during the same period.
This was announced during the review of the financial results for the quarter ended December, 2009, by the bank’s Board of Directors in a meeting held yesterday.
The distinguishing feature of the Q3 results is the remarkable increase of 143% in the income earned by the bank other than the interest during the period ended December, 2009. The income of the Bank rose to Rs 95.81 crore from Rs 39.39 crore earned during the quarter ended December, 2008. The boost in the income has been primarily by the earnings on Commission/Exchange and profit on investments.
The other highlight of the quarter is that the bad loans of the bank have decreased by almost 100 crores compared to March 2009. The J&K Bank now has coverage of its NPAs at 88 per cent, is well above the RBI stipulation of 70 per cent which Banks have to do by October this year. In fact, it is among the highest in the banking industry. It indicates the stability of the bank.
Commenting on the quarterly results, Dr Haseeb A Drabu, Chairman and CE said, “This has been a difficult quarter as the macro-economic environment has become adverse. We have outperformed the market, because our balanced policy approach that aims to achieve our short-term targets while keeping in mind our long-term objectives as the leading financial organization of the state”.
Dr Drabu further stated, “That is one of the reasons why we have maintained a steady focus on the development of all the segments of local economy through enhanced credit deployment and smooth disbursement mechanisms in J&K”.
“We are a commercial bank but we are also a developmental organization of our state. Under the JK specific lending, the advance portfolio in the J&K state has seen a spectacular leap from mere Rs.1200 crores to Rs.12000 crores in just four years. Besides, the credit - deposit (CD) ratio has risen from 20% to 65%”, said Dr. Drabu.
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