The Board of Directors of J&K Bank approved the Bank’s accounts for the quarter ended June 30, 2007 at its meeting held at Srinagar on July 27, 2007.

FINANCIAL RESULTS			(Rs. Crore)
	Q1 2007-08	Q1 2006-07	Percentage change
Net profit	83.24	62.38	33%
Fee & other income	35.82	21.75	65%
Operating profit	131.18	117.48	12%
Net interest Margin	2.90%	2.93	-1%
Cost of Deposits	5.93%	4.89%	21%
Net NPAs	169.31	94.48	79%
Net NPA Ratio (%)	0.98%	0.72%	36%
NPA Coverage Ratio (%)	65.25%	72.67%	-10%
Return on Assets (%) annualized	1.18%	1.05%	12%
Return on Equity (%) Annualized	16.24%	13.63%	19%
Earnings per share (Rs) (Annualized)	68.65	51.46	33%
CRAR	13.01%	12.99%	0.2%

The Bank recorded a net profit of Rs 83.24 crore in the first quarter of 2007-08, an increase of 33.44% from Rs 62.38 crore in the corresponding quarter of 2006-07. The bank’s operating profit is up by 12% at Rs 131.18 crore in Q1 FY 2007-08 as compared to Rs 117.48 crore in Q1 of 2006-07.

The total deposits stood at Rs. 24744 crore registering thereby a growth of 20%. The advances of the Bank were of the order of Rs. 17351 crores as on 30.06.2007  registering YOY growth of 32% which is far above the industry average of 16%. Net NPAs have decreased from Rs 193.57 crores as on 31-03-2007 to 169.31 crores as on 30-06-2007.

The Net NPAs are down from 1.13 % as on 31-03-2007 to 0.98% as on 30-06-2007.  Net NPA coverage ratio of has gone up to 62.25% as on 30th June 2007 from 61.43% as on 31st March 2007.  The non interest income of the bank registered a YOY year of 65% at Rs. 35.82 Crore compared to Rs. 21.75 Crore during the corresponding period of the previous year.

The Net interest Margin has stood at 2.90% (Compared to 2.93% for the corresponding period of previous year) despite the increase in business volumes and cost of funds.

For the quarter ended 30.06.2007, the yield on Advances registered an increase 113 basis points at 10.23-% over that of 9.10-% of corresponding period of previous year, up from 8.57- % of FY07.

The return on assets was up from 1.05 %( Q107) to 1.18 % (Q108)

The Capital Adequacy Ratio stands at 13.01% comfortable above the mandatory level of 9%. The tier I CAR is 12.37% and tier II is 0.64% for the quarter ended 30th June 2007.

Appetite of foreign investors in the bank’s stock continues to grow. In the light of this, the bank FII’s holding currently stands at 34.74 %.

For more information, please contact:

Mr. Parvez Ahmed             
Dy General Manager                       
(Company Affairs & Taxation)                      
The Jammu & Kashmir Bank Ltd.           
+91 194 248 1927/28     

             
parvazahmad@jkbmail.com

Parvez.ahd@gmail.com

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Adfactors PR Pvt Ltd

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