Jammu and Kashmir Bank profit rises 59% to Rs 170 crore in June quarter

Jammu & Kashmir Bank on Wednesday reported a 59 per cent jump in net profit at Rs 165.9 crore in the first quarter of FY23 on the back of higher income.

It had reported a net profit of Rs 104.3 crore in the year-ago period.

In the April-June quarter of FY23, total income increased to Rs 2,306.26 crore from Rs 2173.92 crore in the same period a year ago, Jammu & Kashmir Bank said in a regulatory filing.

During the quarter, the bank's Net Interest Income (NII) rose 6.7 per cent on an annual basis to Rs 1,034.23 crore. The Net Interest Margin (NIM) was 3.46 per cent as against 3.41 per cent recorded on March 31, 2022, it said.

The lender's gross non-performing assets fell to 9.09 per cent of the gross advances as on June 30, 2022. In the same period a year ago, it was 9.69 per cent. However, net NPAs (Non-Performing Assets) rose to 3.02 per cent from 2.94 per cent.

The overall provisioning and contingencies for June quarter was increased to Rs 381.45 crore as against Rs 360.62 crore in year ago quarter.

Deposits grew 6 per cent to Rs 1,12,145.18 crore from Rs 1,05,688.89 crore recorded during the corresponding quarter last year, while advances have increased 7.71 per cent year-on-year from Rs 66,779.52 crore to Rs 71,926.56 crore.

During the quarter, the bank continued to maintain its CASA (Current Account Savings Account) ratio well above 55 per cent.

The bank's capital adequacy ratio stood at 13.02 per cent, well above the regulatory requirement and up 101 basis points year-on-year when compared to 12.01 per cent recorded last year.

Baldev Prakash, MD and CEO of the bank, said the reported capital adequacy ratio does not take into account the quarterly profit of Rs 165.97 crore, which otherwise would have made a positive impact of around 20 basis points.

"However, we are adequately capitalised and will get further cushion to comfortably fund our future growth plans after the board-approved capital raising plan of Rs 2,000 crore for the current financial year gets realised," he added.