January 22, 2024
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J&K Bank’s net profit up 35% in Q3
J&K Bank net profit rose 35% year-on-year to Rs. 421.08 crore for the October-December quarter as compared to Rs.311.59 crore in the same period last fiscal.
The bank announced the results on Saturday night after its board of directors reviewed and approved the numbers for the third quarter and nine-months for financial year 2023-24 in a meeting held at bank’s zonal office in Jammu.
The bank’s profit for nine-month period has jumped 57% in the third quarter to Rs.1,128.60 crore as against Rs.721.05 crore in the nine-month period of the last financial year.
For the quarter, gross non-performing assets (NPA) ratio of the bank has come down to 4.84% i.e. 241 basis points year-on-year and 42 bps quarter-on-quarter. The net NPA ratio has remarkably reduced by 125 bps year-on-year and is at 0.83%. Provision coverage ratio (PCR) of the bank has vastly improved by 678 bps annually, to 91.61% for the quarter as compared to 84.83% recorded last year.
Commenting on the bank’s asset quality, managing director and chief executive officer Baldev Prakash 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 gross NPA has further reduced and we remain on track to meet our annual market guidance around 4.5%. Our net NPA is already below 1%. In terms of provisioning, we are very comfortably placed.”
“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,” he added.
“Our bottom-line got the boost with major recoveries contributing to provision write-backs despite making additional provisions for NPAs at higher than Reserve Bank of India prescribed rates resulting in negative credit costs for the quarter/9 nine-month period”, Prakash said.
The Bank has TTM EPS of Rs. 13.57 and the scrip is available at PE multiple of 9.75. From Technical analysis angle, the scrip is expected to show rangebound trend before it starts upmove.
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