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| J&K Bank net up at Rs 138 cr; to pay 260% dividend | | | EARLY TIMES REPORT
Srinagar, May 14: J&K Bank has posted record net profit of Rs 615.20 crores for the financial year 2010-11 against net profit of Rs. 512.38 Crores for the previous year thereby recording growth of 20%. During this period, operating profit of the Bank has increased from Rs. 958.20 crores to Rs. 1149.49 crores. The Business of the Bank recorded increase of Rs. 10000 crores during the year and the total business reached Rs. 70870 crores, recording a growth of 18%. Deposits increased by 20% to Rs. 44675 crores against Rs. 37237 crores for the previous financial year. The Loans and Advances at Rs 26194 crores recorded growth of 14% in comparison to Rs. 23057 crores as at the end of March/2010. The growth in loans and advances is in spite of the fact that Government of Jammu & Kashmir repaid in full the Ways and Means facility of Rs. 2300 crores in March 2011.
The results were announced after the Board of Directors of the Bank adopted the audited results for the financial year 2010-11 in a meeting held here today. The Board recommended an all time high dividend of 260% (Rs. 26/- per share) subject to the approval of shareholders at the ensuing Annual General Meeting scheduled to be held on July 9, 2011.
Commenting on the results, Chairman & CEO Mushtaq Ahmad said “the financial results reflect implementation of business strategy aimed at qualitative and quantative growth in business of the Bank. The performance during the year has put the bank on a growth trajectory for achieving the planned target of business of Rs. 100000 crore and profit of Rs. 1000 crore by March 2013.”
In his brief remarks on the functioning of the Bank, Chairman & CEO stated that inspite of the challenges faced during the last financial year the new business strategy has enabled the Bank to convert the challenges into opportunities. As a result of these measure net NPA ratio declined to 0.20% against 0.28% for the previous year. Against the regulatory norm of 70%, the provision coverage ratio of the Bank is at 92.71% as on 31/03/2011. All significant ratios have registered satisfactory improvement during the year. Net worth at Rs. 3478.68 crore (up by 15.55%), Earnings per share at Rs. 126.90 (up by 20%), Book value at Rs. 717.58 (up by 15.55%), NIM at 3.62% (up by 58 bps) and yield on advances at 11.15% (up by 50 bps) reflect strong fundamentals of the Bank.
The Chairman & CEO stated that the Bank will focus on playing its role of a developmental financial institution in the State of Jammu and Kashmir and lay emphasis on the growth and development of agriculture, industry, and services sector. He further stated that the policies of the Bank would be aimed at socio economic development of the State by active participation in financing employment generation and poverty alleviation programmes of the State Government. The Bank has taken a lead role in implementing the Sher-i-Kashmir Employment and Welfare Programme for Youth (SKEWPY) promoted by the State Government as a mission. As a hand holding measure and to achieve the objective of alternate employment generation the Bank has constituted a task force for monitoring implementation of this scheme.
It was disclosed by the Chairman that for registering high volume business in rest of the country new branches would be opened at all important commercial centers.
During the year 2010-11 the Bank opened 16 new branches and thereby increased its branch network to 548 branches in addition to 35 extension counters. The new branches were opened in under banked rural areas for providing basic banking facilities to unbanked population. 94% of branches covering more than 99% of the Bank’s business are networked under Core Banking Solution (CBS). All CBS branches have been enabled for RTGS and NEFT facilities. During the year, 73 new ATMs have been commissioned taking the network strength to 361.
In order to cover the unbanked population in rural areas, the bank has formulated the comprehensive financial inclusion plan for providing basic banking services in 535 SLBC allotted villages and in other 725 unbanked villages of the State in a phased manner up to March-2013. The bank is implementing plan to increase its branch and ATM network to 600 each during the current year to further supplement its direct reach. It was stated by the Chairman & CEO that all these measures were aimed at providing banking services and other facilities of international standards to its customers.
The bank maintained its reputation of being remarkably responsible premier institution by implementing a well conceived Corporate Social Responsibility (CSR) policy. The key initiatives undertaken by the bank in this regard have focused primarily on providing educational facilities to under privileged sections of the society, extending financial assistance for medical treatment of destitute and taking meaningful initiatives for preserving and promoting, heritage and handicrafts in the State.
The chairman & CEO expressed his gratitude to the customers & all stake holders of the Bank for their support and patronage.
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