1st November 2009
Srinagar
Half year financial results announced.J&K Bank earns net profit of Rs. 252 crores in 6 months
Despite adverse market conditions following global recession, J&K Bank has posted a net profit of Rs 134.27 crores for the quarter ended September 2009, which is up by 16% compared to Rs 115.92 crores earned during the corresponding quarter of previous financial year.
With this the profits for the half-year ended September 2009 increased by 20% to Rs 252.33 crores from Rs 210.48 crores recorded during the corresponding half of previous financial year.
The bank announced its reviewed financial results for the quarter and half year ended Sep, 2009, following the approval of its Board of Directors in a meeting held in Srinagar on Oct 30, 2009.
Commenting on the financial results, Chairman and CE of J&K Bank Dr Haseeb Drabu said, "Our healthy performance speaks itself about the kind of result-oriented thinking and operational efforts that are being invested in our bank".
Dr Haseeb Drabu attributed a good measure of growth in profits to the recent initiatives that bank took to hedge the local economy from the adverse impact of the global recession. "The initiatives have not only resulted in effecting a turnaround in these export-oriented segments of economy, to an extent, but have actually reassured the associated people of the support of J&K Bank that is there to safeguard their interests and empower them financially", he emphasized.
Dr Drabu further said, "Keeping focus on policy of JK specific lending, out of the total advances portfolio of Rs 21282.33 crores, we have given loans to the tune of over Rs 11000 crores in the J&K state itself, which has yielded us the results for everyone to see".
"Our CD Ratio in the state has gone up to 55%. The bank has registered a marked improvement in NPA Coverage Ratio, which stood on Sep, 2009 at 75.55 % from 58.43 % a year ago", Dr Drabu added.
The Operating Profit for the half year ended Sep, 2009 increased by 30 % Y on Y to Rs 478.88 crores from Rs 369.07 crores. Operating Income (Net Interest Income + Other Income) for the current half year was Rs. 735.88 crores as against Rs. 593.49 crores for the corresponding period of last fiscal registering an increase of 24 %.
Meanwhile, driven by profit on revaluation/sale of investments, the other income earned by the bank has improved considerably during the quarter by 147% to 101.19 crores from Rs 41.05 Crores.
The Trading Income for the current half-year steeply rose from Rs 22.34 crores to Rs 119.03 crores, the main components of which are Rs 43.32 crores earned on Revaluation of Investments and Rs 10 crores on Debt Securities.
The Return on Assets for the current quarter has improved to 1.44 % (annualized) compared to 1.32 % for the corresponding quarter of last financial year. The bank has been able to maintain its margins around the 3 % level and the Net Interest Margins ratio for the half year ended September, 2009 is at 3.01 % (annualized). For the same period the Bank has been able to further bring down its Cost to Income ratio to 34.92 % from 37.81 % for the corresponding period of last fiscal.
Leveraging the technology efficiently, the Bank has been able to further bring down its Cost to Income ratio to 34.92 % from 37.81 % for the corresponding period of last fiscal.
The total Balance Sheet size of the bank as on Sep, 2009 has increased to Rs 37420.60 crores increasing by 6 % from Rs 35207.76 a year ago. For the same period, the Investments of the bank grew by 25 % Y on Y to Rs 12368.09 crores. Of the total investments 71 % are in the HTM category, 29 % in the AFS category and rest in the HFT category. The SLR securities form 79 % of the total Investments. Net Worth of the Bank stood at Rs. 2875.19 crore as on Sep 30, 2009 compared to Rs. 2519.40 crore a year earlier, registering a growth of 14.12 %.
As far as asset quality is concerned, the Gross NPAs and the Net NPAs as proportion of Gross and Net Advances as on September, 2009 came down to 2.23 % and 0.55 % respectively from 2.29 % and 0.96 % a year ago. The NPA Coverage Ratio as on September, 2009 has improved to 75.55 % from 58.43 % a year ago.
The Capital Adequacy Ratio (CAR) under the Basel I norms stood at 13.98 % as on Sep 30, 2009 out of which Tier I capital amounted to 13.39 %. The CAR under the Basel II norms was at 15.23 % as on Sep, 2009 with Tier I capital amounting to 14.59 %.
Meanwhile, Dr. Drabu while commenting on the low credit growth said that the fall in credit growth was due to slack in credit demand. "The impact of global meltdown squeezed the capacity of expansion of manufacturing corporates," he said and revealed that further sanctions to the tune of Rs 4009.59 crore are yet to be disbursed by the bank.
With this the profits for the half-year ended September 2009 increased by 20% to Rs 252.33 crores from Rs 210.48 crores recorded during the corresponding half of previous financial year.
The bank announced its reviewed financial results for the quarter and half year ended Sep, 2009, following the approval of its Board of Directors in a meeting held in Srinagar on Oct 30, 2009.
Commenting on the financial results, Chairman and CE of J&K Bank Dr Haseeb Drabu said, "Our healthy performance speaks itself about the kind of result-oriented thinking and operational efforts that are being invested in our bank".
Dr Haseeb Drabu attributed a good measure of growth in profits to the recent initiatives that bank took to hedge the local economy from the adverse impact of the global recession. "The initiatives have not only resulted in effecting a turnaround in these export-oriented segments of economy, to an extent, but have actually reassured the associated people of the support of J&K Bank that is there to safeguard their interests and empower them financially", he emphasized.
Dr Drabu further said, "Keeping focus on policy of JK specific lending, out of the total advances portfolio of Rs 21282.33 crores, we have given loans to the tune of over Rs 11000 crores in the J&K state itself, which has yielded us the results for everyone to see".
"Our CD Ratio in the state has gone up to 55%. The bank has registered a marked improvement in NPA Coverage Ratio, which stood on Sep, 2009 at 75.55 % from 58.43 % a year ago", Dr Drabu added.
The Operating Profit for the half year ended Sep, 2009 increased by 30 % Y on Y to Rs 478.88 crores from Rs 369.07 crores. Operating Income (Net Interest Income + Other Income) for the current half year was Rs. 735.88 crores as against Rs. 593.49 crores for the corresponding period of last fiscal registering an increase of 24 %.
Meanwhile, driven by profit on revaluation/sale of investments, the other income earned by the bank has improved considerably during the quarter by 147% to 101.19 crores from Rs 41.05 Crores.
The Trading Income for the current half-year steeply rose from Rs 22.34 crores to Rs 119.03 crores, the main components of which are Rs 43.32 crores earned on Revaluation of Investments and Rs 10 crores on Debt Securities.
The Return on Assets for the current quarter has improved to 1.44 % (annualized) compared to 1.32 % for the corresponding quarter of last financial year. The bank has been able to maintain its margins around the 3 % level and the Net Interest Margins ratio for the half year ended September, 2009 is at 3.01 % (annualized). For the same period the Bank has been able to further bring down its Cost to Income ratio to 34.92 % from 37.81 % for the corresponding period of last fiscal.
Leveraging the technology efficiently, the Bank has been able to further bring down its Cost to Income ratio to 34.92 % from 37.81 % for the corresponding period of last fiscal.
The total Balance Sheet size of the bank as on Sep, 2009 has increased to Rs 37420.60 crores increasing by 6 % from Rs 35207.76 a year ago. For the same period, the Investments of the bank grew by 25 % Y on Y to Rs 12368.09 crores. Of the total investments 71 % are in the HTM category, 29 % in the AFS category and rest in the HFT category. The SLR securities form 79 % of the total Investments. Net Worth of the Bank stood at Rs. 2875.19 crore as on Sep 30, 2009 compared to Rs. 2519.40 crore a year earlier, registering a growth of 14.12 %.
As far as asset quality is concerned, the Gross NPAs and the Net NPAs as proportion of Gross and Net Advances as on September, 2009 came down to 2.23 % and 0.55 % respectively from 2.29 % and 0.96 % a year ago. The NPA Coverage Ratio as on September, 2009 has improved to 75.55 % from 58.43 % a year ago.
The Capital Adequacy Ratio (CAR) under the Basel I norms stood at 13.98 % as on Sep 30, 2009 out of which Tier I capital amounted to 13.39 %. The CAR under the Basel II norms was at 15.23 % as on Sep, 2009 with Tier I capital amounting to 14.59 %.
Meanwhile, Dr. Drabu while commenting on the low credit growth said that the fall in credit growth was due to slack in credit demand. "The impact of global meltdown squeezed the capacity of expansion of manufacturing corporates," he said and revealed that further sanctions to the tune of Rs 4009.59 crore are yet to be disbursed by the bank.