Jammu & Kashmir Bank announced Q2FY25 results Net profit rose substantially by 44.6 % YoY to Rs 550.92 crore for the September Quarter (Q2) of current financial year (CFY) when compared to Rs 381.07 crore recorded for the corresponding quarter of previous year. The Bank’s net profit for half-year (H1) grew 36.6% to Rs 966.41 crore from Rs 707.52 crore recorded for H1 last FY. Backed by both core and non-core income growth, the Bank’s operating profit for Q2 rose more than 47% YoY and 32% QoQ to Rs 787 crore. The Bank’s Net Interest Income (NII) is up by 7.7 % YoY to Rs 1435.93 crore for the September quarter from Rs 1,333.83 crore and has increased by 7.2 % to Rs 2,805.15 crore for the H1 when compared to corresponding periods of previous year. The Bank’s other income surged 55.6% YoY to Rs 296.08 crore for the September quarter. The Bank’s NIM improved to 3.90% QoQ from 3.86% recorded for the Q1 of CFY, while as the Cost to Income Ratio has improved significantly to 54.56% YoY from 64.93% and in sequential terms from 61.96% recorded in June quarter, 2024. Asset Quality: The Bank’s Gross NPA Ratio has decreased by 131 basis-points YoY to 3.95% as against 5.26% recorded in September, 2023. The Net NPA ratio has also moderated by 19 basis-points to 0.85% YoY from 1.04%. Meanwhile, during the quarter the Return on Assets (RoA) has jumped to 1.41% YoY as well as QoQ as against 1.08%. Provision Coverage Ratio (PCR) of the Bank has also improved 55 basis-points YoY to 90.54%. Business Growth: Deposits and Advances of the Bank have grown YoY 9% and 9.5% respectively to Rs 1,37,918 crore and Rs 96,139 crore. The Bank’s CASA stood at 48.60%, which continues to be one of the highest in the industry. Baldev Prakash, MD & CEO, Jammu & Kashmir Bank, said: “Our Q2 results are almost in line with our expectations. The bottom-line growth underscores our financial prudence and operational excellence while reflecting our commitment to deliver consistent value for our stakeholders as we stay steady on course to achieve the annual numbers.” “I believe, with a healthy balance sheet, a diversified portfolio and consistent focus on digital transformation, we are well-positioned to maintain this growth momentum and capitalize on emerging opportunities”. “Keeping our gross NPA below 4% highlights the success of our robust risk management practices. We have been focusing on proactive asset-quality management and ensuring long-term sustainability in lending. Another highlight of this quarter is RoA, which has surged to 1.41%.” “With continued improvement in key performance indicators, the Bank is reinforcing its position as a leading financial institution focused on profitability and sound asset management”. “Since our role as a developmental financial institution here is not just to provide credit, we have to take care that businesses are equipped with the tools they need to manage growth sustainably. Therefore, by carrying forward our digital momentum, we are also revolutionizing the way our customers experience banking, making it more convenient, swift, secure and efficient for them with every passing day.” “Moreover, by embracing cutting-edge technology, we have embarked upon a digital journey that enables our customers to manage their finances online and with ease, from account opening and transactions to applying for a range of our loan products. Going forward, we have devised a comprehensive road-map to help businesses particularly MSMEs get equipped with beneficial, convenient and efficient management solutions, through collaborative banking with our fintech partners, so that these enterprises sustain growth and enjoy prosperity”. Result PDF