Jammu & Kashmir Bank announced Q1FY25 results: The Bank’s Net interest income (NII) grew by 7% YoY to Rs 1,369.22 crore in the first quarter of current financial year, while as, the Net Interest Margin (NIM) has improved by 9 basis points QoQ to 3.86% from 3.77% registered in Q4FY24. Core operating profit of the Bank witnessed an increase of 13% YoY and reached Rs 594.67 crore from Rs 528.05 crore. The Bank’s Return on Assets (RoA) for the June quarter stood at 1.08% as against 0.94% recorded during the Q1 of the last financial year. Advances of the bank grew over 13% YoY and stood at Rs 95,449.77 crore as against Rs 84,475.63 crore in the corresponding quarter a year ago. The deposits also increased by 9% to Rs 1,32,573.13 crore from Rs 1,21,297.49 crore recorded last year. During the quarter, the Bank’s CASA Ratio stood at 49.77%. In sequential terms, the Bank's gross non-performing assets (GNPA) have reduced by 17 basis points to 3.91% from 4.08% registered in March quarter of FY 2023-24. The net NPA for the Q1 has also improved further to 0.76% QoQ as against 0.79% recorded during Q4 of previous financial year. NPA Coverage Ratio for Q1 stood at 91.57% when compared to 87.55% recorded for the Q1 last year. During the quarter, the Bank’s Capital Adequacy Ratio (BASEL III) has improved to 15.07% as against 14.83% recorded last year. Commenting upon the results, MD & CEO of J&K; Bank, said, “With improved bottom line, our performance in the first quarter reflects the resilience and strength of the Bank. The key financial metrics have shown notable improvements, reflecting healthy progress. And with our Return on Assets above 1%, we have also maintained the NIM in the upper band of our market guidance, i.e. near 4 percent at 3.86% despite pressure on margins.” Commenting on the business growth, MD said, “There is a healthy growth in our advances and deposits, demonstrating the trust and loyalty of our customer base especially in our core operational geography.” He further said, “However, on account of the increased outflows of Govt. funds witnessed usually during our first quarter, there is a temporary dip in CASA ratio this time but we are confident to maintain it above 50% annually. And we have already sharpened our focus to augment our strong liability franchise.” “We also foresee growth in business, coming from the developmental drive of massive infrastructure being put into place to meet the growing requirements of the increasing tourist inflow into J&K.;", he added. Regarding asset quality, the MD & CEO asserted, “We have brought our GNPA to below 4% this quarter and trend will continue to be healthy in our asset quality, which continues to be our star metric”, adding “Besides, as per our market guidance, we have maintained our NPA Coverage Ratio above 90% level at 91.57%”, he added. MD & CEO also spoke about the steady transformation of the Bank, “In terms of operational excellence, we are steadily emerging as a lean, agile and digitally driven financial institution.” “During the last many quarters, we have transformed the digital interface of the Bank and are on track to accomplish the goal of becoming 100 percent digital not only in our services framework but also in our internal work processes. By the end of current financial year, we are planning to digitally on-board our remaining products, thereby, opening up infinite possibilities for online journeys within the country's banking sector. The strategic objective is to become 'Bank for all generations’.” “Our commitment to innovation and customer-centric growth shall continue while delivering value to our customers, stakeholders and maintaining the Bank’s position as the leading financial institution in the region and the country”, the MD said. On capital position of the Bank, the MD & CEO remarked, “With CRAR at above 15% level, I think we are adequately capitalized to fund our future growth plans.” Result PDF
Jammu & Kashmir Bank announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Net profit for Q4FY24 at Rs 638.67 crore, a 34% increase over the previous financial year. Total deposits rose 10.44% YoY to Rs 1,34,774.89 crore. Net Advances of the Bank stood at Rs 93,762.51 crore in Q4FY24, rising up 14% YoY. Deposits grew by 5% sequentially (QoQ). Advances increased by 4.5% sequentially (QoQ). CASA Ratio at 50.51% as of March 31, 2024. FY24 Financial Highlights: Net profit for FY24 at Rs 1,767 crore, a remarkable improvement of 48% over the previous high. Total revenue grew by 19% to cross the Rs 12,000 crore mark. Net interest margin (NIM) stood at 3.92%. Yield on Advances rose annually to 9.54% from 8.91%. Return on Assets (RoA) reached quite healthy levels at 1.22%. Gross NPA (GNPA) brought down to 4.08%. Net NPA below 1% at 0.79%. Capital Adequacy Ratio at 15.33% as on March, 2024. Board of Directors recommended a final dividend of Rs 2.15 per share. Bank’s MD & CEO Baldev Prakash said, "We are thrilled to report such stellar annual numbers, which reflect our unwavering commitment to excellence and prudent financial management. Our record-breaking annual profit and impressive financial metrics reflects the changing culture of the Bank where delivering streak of new records period after period is becoming a habit also underscores the Bank’s resilience and strategic prowess in navigating dynamic market conditions. More so, it reflects the dedication of our staff, the unwavering trust of our customers, and the continued support of our major shareholders i.e. UT Government.” “Recommendation of a handsome dividend of Rs 2.15 per share of face value Re 1.00 for FY24 by the Board of Directors, is an acknowledgement of the trust and support of our shareholders and we are keen to share the rewards with our valuable shareholders. The success is the outcome of establishing synergies between the core elements of personnel, processes and technology; wherein capabilities have been fortified through planned transformation and change management", he said adding further, “Now with laid-out platform, enhanced capabilities and strengthened core, we are ready to scale newer heights while embracing the dynamically evolving industry practices.” He further stated, “Such stupendous success has been achieved while following principles of ethical business practices and maintaining highest standards of corporate governance.” MD further stated, "Our strong asset quality metrics underscore our methodical approach to risk management and our unwavering focus on maintaining a healthy balance sheet. While exceeding our annual guidance, these results validate our efforts to build a resilient and sustainable banking franchise. With a Provision Coverage Ratio (PCR) at 91.58%, J&K; Bank continues to demonstrate its commitment to prudential provisioning and risk mitigation.” "Internally, our ESG efforts have led to the implementation of e-office across the organization, drastically reducing paper usage. However, remaining cognizant of environmental concerns, we continue to engage in sensible lending practices contributing to sustainability and enhanced operational efficiency." On upgrading Bank’s Human Resource, he asserted, “We continue to invest in our workforce through HR initiatives focused on re-skilling and up-skilling, creating change champions prepared to meet future challenges. An online learning system titled e-Pathshala has been established, integrating knowledge acquisition into the career progression journeys of employees, thereby incentivizing personal and professional growth – an overall strengthening of employee value proposition the Bank offers to its existing and prospective staff members.” Commenting briefly upon the Bank’s CSR Program, MD said, “The Bank also contributes to the overall social good through its Corporate Social Responsibility (CSR) programs. With an annual spend of around Rs 19 crore under our CSR programs during FY 2023-24, we have supported initiatives aimed at empowering marginalized communities, promoting eco-friendly measures, and providing assistance to persons with disabilities besides supporting programs focussed on skill development of youth. And on the back of improved profitability, such initiatives are bound to witness a further boost owing to the enhanced budgetary allocations.” "As we celebrate this remarkable milestone, I would like to extend my heartfelt gratitude to our stakeholders and the communities we serve. Together, we will continue to grow, innovate and create sustainable value for all our stakeholders", he concluded. Result PDF
Conference Call with Jammu & Kashmir Bank Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.
Jammu & Kashmir Bank announced Q3FY24 & 9MFY24 results: Financial Performance: - J&K; Bank's net profit increased by 35% YoY, reaching Rs 421.08 crore for the quarter ended December 31, 2023. - For the nine months leading up to this period, net profit jumped by 57% to Rs 1,128.60 crore. - The net interest income (NII) for the nine months grew by 11% YoY to Rs 3,897.57 crore. - Quarterly NII rose by 2% YoY to Rs 1,280.44 crore. - Operating profit for the quarter was reported at Rs 550.54 crore. Asset Quality: - Gross NPA Ratio decreased by 241 basis points YoY to 4.84%. - Net NPA ratio significantly reduced by 125 basis points YoY and stands below 1% at 0.83%. - Provision coverage ratio improved by 678 basis points annually to 91.61%. Operational Metrics: - Net Advances increased by 16% YoY to Rs 89,752.36 crore. - Deposits saw a 9% growth YoY, reaching Rs 1,28,542.47 crore. - Overall business grew by 11.61% to Rs 2,18,650 crore. - The cost-to-income ratio dropped further to 62.36%. Capital Adequacy: - The Capital Adequacy Ratio (BASEL III) reached 14.18%. - Net worth has surpassed Rs 10,000 crore for the first time, currently above Rs 11,000 crore. Commenting upon the Bank’s asset quality, MD & CEO said, “Asset quality continues to be our star metric and the numbers are fast converging towards the best in the industry. Backed purely by steady recoveries coupled with lower-to-negligible slippages, our GNPA has further reduced and we remain on track to meet our annual market guidance of GNPA around 4.5% while our net NPA is already below 1%. In terms of provisioning too we are very comfortably placed at PCR of above 90% after a very long time.” In his remarks on operating numbers, MD & CEO Baldev Prakash said, “We have continued our growth momentum by delivering another set of quarterly numbers reflecting progress in bottom line parameters. I am confident that we are well on course to meet our annual growth guidelines.” “Our bottom line got the boost with major recoveries contributing to provision write-backs despite making additional provisions for NPAs at higher than RBI prescribed rates resulting in negative credit costs for the Quarter/9-month period”, he added. Commenting on growth numbers, MD & CEO said, “Driven by the robust retail growth especially in Housing (21%), SME (21% and mostly driven by services) and credit Card (24%), the Bank’s loan book has gone up 16%. And led by Housing (24%) and Car finance (36%), our Rest-of-India advances portfolio has also grown by 19% quite in line with our ROI focus during the December quarter.” “Our deposits witnessed a 9% growth YoY against the industry average of 13% while maintaining the industry-best CASA Ratio at above 50%”, he added. Regarding the capital position, MD & CEO Baldev Prakash stated, “The recent successful QIP - with an aggregate value of Rs 750 crore has sufficiently strengthened our capital position while boosting our perception in the market because of the unprecedented and swift response from the market. We will use this CET1 capital of Rs 750 crore as growth capital to augment our capacity to fund our business plans.” “With the QIP, our net worth has crossed Rs 10,000 crore for the first time and is currently above Rs 11,000 crore”, MD & CEO added. Result PDF