Following the business strategy set in motion last fiscal, J&K Bank posted a net profit of Rs.213 crore for the third quarter ended December 2011, which is up by 27 percent from a net profit of Rs.168 crore earned during the corresponding quarter of the previous financial year.
The net profit of the bank for the nine months ended December 31, 2011 also witnessed an increase of 25 per cent as it jumped to Rs.595 crore from Rs 477 crore in the corresponding period of the previous year.
The total business turnover of the Bank as on Dec 31, 2011 is around Rs 79, 000 Crores, which has witnessed an increase of Rs 3,000 Crores in the quarter. Business turnover was Rs 66000 crore as on 31st December 2010.
Commenting on the results, Chairman and CEO Mushtaq Ahmad said, “In the 12-month period from January 1st, 2011, the Bank’s overall business has grown up by around Rs. 13,000 crores, which means more than Rs. 1,000 crores on average per month.
“We do feel happy to see our balance sheet further firmed up. Such performance puts our growth trajectory on a sound basis while heading towards the proposed target of Rs 85,000 Crores of business and Rs 800 crores of profit by the end of current financial year, besides affirming the efficacy of major policy decisions the Bank has taken in this direction.”
The Chairman appreciated the efforts of colleagues whose efforts have generated the results
However, we do not feel complacent in the face of challenges posed by the concerns about the sluggish economic scenario and growing competition at home, he added.
He further stated, “We will consolidate the business growth through up-gradation of procedural systems, better risk-management practices, and optimization of techno-based services and development of requisite human resource.”
During the quarter ended December 31, 2011, the bank's total income rose by 33 per cent to Rs 1,340.16 crore as against Rs 1012.22 crore in the year-ago period. The interest earned by the bank in the third quarter increased by over 35 per cent to Rs 1266 crore from Rs 934 crore in the year ago period.
In the nine-month period of the current financial year ended December 31, 2010, the bank has earned nearly 29 per cent more interest at Rs 3,478 crore, over Rs 2,699 crore in the corresponding period of the previous year.
The asset quality of the bank has further improved, as the gross NPAs (Non Performing Assets) of the Bank have declined to 1.80 per cent in the third quarter of this fiscal, from 1.95 per cent in the same period of the previous year.
Notably, the bank has expanded its branch and ATM network in the J&K state and has been contributing extensively to the development of various sectors of the economy. The bank has been major contributor to the priority sector credit in the state.
The bank alone has disbursed Rs.1,380.63 Crore at the end of the first half of the current financial year against the annual target of Rs.1,492.44 Crore, thereby achieving 93% of its annual ACP target, which accounts for 76% of the total priority sector credit disbursed by all banks in the State.