J&K Bank, the state's premier financial institution, withstanding inclement market conditions has posted a net profit of Rs. 210.48 crore for the half year ended September 30 registering an increase of10.18%. On quarterly basis, the second quarter of the current fiscal witnessed a jump in net profit to Rs 115.92 crore from Rs.107.80 Crore compared with a year a go period. While commenting on the performance of the bank, Dr. Haseeb A. Drabu, Chairman and Chief Executive of the bank said, "Even as the current global meltdown saw most of the banks in the country posting lower growth in their business and profit during the period, J&K Bank emerged unscathed as we have been able to maintain robust business growth and posted impressive profits for the quarter ended September 2008." Notably, the growth in profit was witnessed when the state was gripped in uncertainty where all business establishments and government offices remained closed for most of the time during the second quarter (July – September). The Loan Book as on September 30, 2008 stood at Rs.21272 crore up 17.51% from last year's Rs.18101 crore. Due to the volume growth in Advances and improvement in yields, the interest income on advances went up by 26.10% from Rs. 459.98 crore for the quarter ended Sept. 07 to Rs. 580.02 for the quarter ended Sept. 08. As on September 30, 2008 banks deposit base stood at Rs.30978 crore from Rs.25953 crore a year back registering an increase of 19.36%. The major strategic shifts in the business operations of the bank include greater focus on lending portfolio instead of investment portfolio and lending more in J&K than in rest of the country. With the continued focus on investments in the state, the bank has considerably increased its credit portfolio in J&K. "The growth in advance has been the result of our focus on J&K state. We have tailored specific products for different sectors of local economy. Over a period of last three years of performance, J&K Bank has emerged as the most relevant bank to the people of J&K state and has made it an intrinsic part of the development of the state. The business strategy evolved by the bank three years ago to engender and catalyse the economic transformation of J&K state has a dramatic impact on its performance. The bank has been reaching out to people with less means and belonging to each segment of local economy through its specific products and services," said Dr. Drabu. Meanwhile, the Bank has maintained its NPA at 0.96% for the 2nd quarter of the financial year. The CASA deposits grow by 25% to Rs.11397 crore from Rs. 9137 crore a year back. The CASA Ratio has improved to 36.79%. Despite the increase in Interest expenses by 21.14%, attributed to rising cost of deposits, bank has been able to increase its net Interest income by 34% over the corresponding period of last fiscal and Net Interest Margins to 3.41% due to the concurrent increase in the lending rates. 􀃂 Operating Income (Net Interest Income + Other Income) was Rs.302.36 Crores for the quarter ended September 30, 2008 as against Rs. 253.20 Crores for the quarter ended September 30, 2007 registering an increase of 19.42%. 􀃂 The Capital Adequacy Ratio stands at 12.44% at the end of September 30, 2008 and Tier I capital amounted to 11.78%. Net Worth of the Bank stood at Rs. 2519.41 Crores as at end September 2008 as compared to Rs. 2199.77 Crores a year earlier, a growth of 14.53% YoY. It is worth mentioning that the Board of Directors of the bank approved the bank's accounts for the quarter ended September, 2008 at its meeting held at New Delhi on October 30, 2008.