29th January 2009
Srinagar
Impressive growth despite poor market conditions J&K Bank's net profit up by 10%
Notwithstanding financial meltdown, J&K Bank has registered a net profit of Rs331.16crore for the nine months ended December 31,2008 up by 10% compared to the corresponding nine months ended December 31,2007. This was approved at the meeting of Board of Directors of J&K Bank which reviewed the Bank's accounts for the quarter and Nine months ended December, 2008 at its meeting held at Gurgaon, Haryana.
For the nine months ended December 31, 2008, the Bank earned total income of Rs. 2344.54 crores as against Rs. 1954.41 crores in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the nine months ended December 31, 2008 were Rs. 895 crores, up by 19% over Rs. 750.46 crores for the nine months ended December 31, 2007. Net Profit for the nine months ended December 31, 2008 was Rs. 331.16 crores, up from 300.20 crore for the corresponding nine months ended December 31, 2007.
Banks deposit base stood at Rs.31248.97 crore from Rs.26526.98 crore a year back registering an increase of 18%. The Loan Book as on December 31, 2008 stood at Rs. 20686.06 crore up 13% from last year's Rs.18286.71 crore. The interest income on advances went up by 23% from Rs. 1381.25 crore for the period ended Dec. 07 to Rs. 1697.94 crore for the period ended Dec. 08. On the quarterly basis the yield on advance increased to 11.69% from 10.58% for the quarter ended December, 2007.
Pertinent to mention here that growth in advances has been result of banks focus on J&K State and the tailor made products it has developed to cater to different sectors of state economy.
The CASA deposits grew by 20.21% to Rs.11476.69 crore from Rs. 9547.45 crore a year back. The CASA Ratio has improved to 36.73%. Despite an increase in Interest expenses on deposits by 20%, attributed to rising cost of deposits, bank has been able to increase its Net Interest Income by 28% over the corresponding period of last fiscal and Net Interest Margins to 3.24% due to the concurrent increase in the lending rates.
The business per branch and per employee increased to Rs. 98.35 Crore and Rs. 6.76 crore up from Rs. 89.09 crore and 6.37 crore respectively for the period ended December, 2007. Post Tax return per Branch and per employee also improved to Rs. 83.63 Lakhs (from Rs. 79.58 lakhs for period ended Dec. 07) and Rs. 5.75 Lakhs (From 5.69Lakhs) respectively.
The Bank ended third quarter with Gross NPA's of 2.60% (2.52% a year back) and Net NPA at 1.22% (0.82% a year back).
The Bank's total balance sheet size increased by 17% from Rs. 30,050.65 crores as of December 31, 2007 to Rs. 35,281.89 crores as of December 31, 2008. Total business of the Bank for the period ended Dec. 2008 increased to Rs. 51,935 crore from Rs. 44,813 crore for the period ended Dec. 2007 registering an increase of 16%.
The Capital Adequacy Ratio stands at 13.24% at the end of December 31, 2008 as against the regulatory minimum of 9.0%. Tier I capital amounted to 12.57%. Net Worth of the Bank stood at Rs. 2640.08 Crore at the end of December 2008 as compared to Rs. 2308.93 crore a year earlier, a growth of 14% YoY.
For the nine months ended December 31, 2008, the Bank earned total income of Rs. 2344.54 crores as against Rs. 1954.41 crores in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the nine months ended December 31, 2008 were Rs. 895 crores, up by 19% over Rs. 750.46 crores for the nine months ended December 31, 2007. Net Profit for the nine months ended December 31, 2008 was Rs. 331.16 crores, up from 300.20 crore for the corresponding nine months ended December 31, 2007.
Banks deposit base stood at Rs.31248.97 crore from Rs.26526.98 crore a year back registering an increase of 18%. The Loan Book as on December 31, 2008 stood at Rs. 20686.06 crore up 13% from last year's Rs.18286.71 crore. The interest income on advances went up by 23% from Rs. 1381.25 crore for the period ended Dec. 07 to Rs. 1697.94 crore for the period ended Dec. 08. On the quarterly basis the yield on advance increased to 11.69% from 10.58% for the quarter ended December, 2007.
Pertinent to mention here that growth in advances has been result of banks focus on J&K State and the tailor made products it has developed to cater to different sectors of state economy.
The CASA deposits grew by 20.21% to Rs.11476.69 crore from Rs. 9547.45 crore a year back. The CASA Ratio has improved to 36.73%. Despite an increase in Interest expenses on deposits by 20%, attributed to rising cost of deposits, bank has been able to increase its Net Interest Income by 28% over the corresponding period of last fiscal and Net Interest Margins to 3.24% due to the concurrent increase in the lending rates.
The business per branch and per employee increased to Rs. 98.35 Crore and Rs. 6.76 crore up from Rs. 89.09 crore and 6.37 crore respectively for the period ended December, 2007. Post Tax return per Branch and per employee also improved to Rs. 83.63 Lakhs (from Rs. 79.58 lakhs for period ended Dec. 07) and Rs. 5.75 Lakhs (From 5.69Lakhs) respectively.
The Bank ended third quarter with Gross NPA's of 2.60% (2.52% a year back) and Net NPA at 1.22% (0.82% a year back).
The Bank's total balance sheet size increased by 17% from Rs. 30,050.65 crores as of December 31, 2007 to Rs. 35,281.89 crores as of December 31, 2008. Total business of the Bank for the period ended Dec. 2008 increased to Rs. 51,935 crore from Rs. 44,813 crore for the period ended Dec. 2007 registering an increase of 16%.
The Capital Adequacy Ratio stands at 13.24% at the end of December 31, 2008 as against the regulatory minimum of 9.0%. Tier I capital amounted to 12.57%. Net Worth of the Bank stood at Rs. 2640.08 Crore at the end of December 2008 as compared to Rs. 2308.93 crore a year earlier, a growth of 14% YoY.