J&K Bank Reports 27% Increase in Quarterly Profits
Srinagar (Jammu and Kashmir) [India], July 27: J&K Bank has announced a significant increase in its quarterly profits. For the April-June quarter of the current financial year, the bank posted a profit-after-tax (PAT) of Rs 415.49 crore, which is up by 27% from Rs 326.45 crore recorded in the same quarter of the previous financial year.
The bank’s Board of Directors approved the quarterly numbers in a meeting held at the Bank’s Corporate Headquarters. The net interest income (NII) grew by 7% YoY to Rs 1369.22 crore, while the net interest margin (NIM) improved to 3.86% from 3.77% in the previous quarter.
The core operating profit increased by 13% YoY to Rs 594.67 crore. The return on assets (RoA) for the June quarter stood at 1.08%, up from 0.94% in the same quarter last year.
MD & CEO of J&K Bank commented, “With improved bottom line, our performance in the first quarter reflects the resilience and strength of the Bank. The key financial metrics have shown notable improvements, reflecting healthy progress.”
Advances grew by 13% YoY to Rs 95449.77 crore, and deposits increased by 9% to Rs 132573.13 crore. The CASA ratio stood at 49.77% for the quarter.
The MD noted, “There is a healthy growth in our advances and deposits, demonstrating the trust and loyalty of our customer base.”
The bank’s gross non-performing assets (GNPA) reduced to 3.91% from 4.08% in the previous quarter, and the net NPA improved to 0.76%. The NPA coverage ratio stood at 91.57%.
The MD & CEO also spoke about the bank’s digital transformation, aiming to become 100% digital by the end of the current financial year. The capital adequacy ratio improved to 15.07%.
“Our commitment to innovation and customer-centric growth shall continue while delivering value to our customers and stakeholders,” the MD said.
Doubts Revealed
J&K Bank -: J&K Bank stands for Jammu and Kashmir Bank. It is a bank that operates mainly in the Indian states of Jammu and Kashmir.
Quarterly Profits -: Quarterly profits are the earnings a company makes in three months. Companies report these profits to show how well they are doing.
Profit-after-tax (PAT) -: Profit-after-tax (PAT) is the money a company has left after paying all its taxes. It shows the actual profit the company made.
Rs 415.49 crore -: Rs 415.49 crore means 415.49 crores of Indian Rupees. One crore is equal to 10 million, so this is a large amount of money.
Net interest income -: Net interest income is the money a bank earns from its loans and investments after paying interest on deposits.
YoY -: YoY stands for Year-over-Year. It means comparing one period of time with the same period from the previous year.
Net interest margin -: Net interest margin is the difference between the interest a bank earns on loans and the interest it pays on deposits, shown as a percentage.
Advances -: Advances are loans given by the bank to people or businesses. It means the bank is lending money.
Deposits -: Deposits are the money people or businesses keep in the bank. It is the money the bank holds for its customers.
Gross non-performing assets -: Gross non-performing assets are loans that people or businesses are not paying back to the bank. It shows the amount of bad loans.
Capital adequacy ratio -: Capital adequacy ratio is a measure of a bank’s financial strength. It shows how much capital the bank has compared to its risks.
MD & CEO -: MD & CEO stands for Managing Director and Chief Executive Officer. This is the person who leads and manages the bank.
Digital transformation -: Digital transformation means using technology to improve how the bank works and serves its customers.
