J & K Bank, the leading financial institution in state ownership, reported Rs 456 crore net profits for the 2018-19 financial year, which is 129 percent higher compared to the crs of the previous tax Rs 202.
The bank reported a profit of 214.8 crore for the March quarter
compared to Rs 28.41 crore in the corresponding quarter of FY 2017-18.
Stimulated by strong growth in retail loans, sale of a shareholding in PNB MetLife and
resolution of some major NPL & # 39; s total bank income increased to Rs 8487
crore in FY 2018-19 compared to Rs 7116 crore a year ago.
The results for the FY 2018-19 and Q4 FY 18-19 were
announced by the Bank on Wednesday after the Board of Directors of the Bank has adopted
the audited numbers of the Bank at its meeting with Bank & # 39; s Corporate
Srinagar head office. The growth of J & K's state credit was reported on
23% over the past year and net interest income, the difference between interest
earned on loans and those paid on deposits grew 42% in the 4th quarter of the
financial year 2018-19. The NIM of the bank that is an indicator of
Profitability was calculated at 4.05 for the 4th quarter and based on the full year
it improved to 3.84% compared to 3.65% in the previous fiscal year.
The Chairman and CEO J & K Bank acknowledge the
support and guidance of the board of directors when navigating through the bank
challenging times attributed the reversal & stellar growth in the top and
bottom-line from the bank to the unwavering trust of the initiators and customers
from the Bank, especially from the State of J & K. He praised the management
team, business leaders and operational staff for robust credit growth, management
of NPA & # 39; s, NPA recovery, improvement of the Compliance culture etc. despite a
"Our figures are unfolding in accordance with our strategic
business plan to focus the focus of our credit expansion on J&K
especially in retail & SME segments. We are constantly gaining market
share in J & K, in addition to improving the penetration of credit to date credit
starved geographical areas / segments, in particular in the consumer and housing sectors. like you
see our segment numbers in the retail sector, housing grew by 79% from 3117 Cr to
5384 Cr, Consumer Finance has grown exponentially from 195 Cr to 1978 Cr, Auto
the loans grew by 37% from 2,000 Cr to 2,741 Cr, resulting in aggregated retail
credit growth of 33%. The mix from Corporate to retail is our overall progress
now 43 Corporate to 57% retail as
compared 53 Corporate with 47 Retail a few years ago. "announced the
"The results also confirm our medium-term growth strategy
which ranges as provided to achieve
a total turnover of approximately 2.5 Lakh crore with a targeted profit of Rs
2000 Cr, NIIM ranging between 3.5-4%, ROA of 1.3%, ROE of 16% and credit costs
less than 1% at the end of FY 2022. We will review the momentum
robust business growth from the previous financial year to the current financial year and determined
the tone of exponential growth for reinforcing the new paradigm of persistence
profitability. I can safely say that these are our supply requirements
due to the aging of NPA & # 39; s past, can be in 3-4 quarters, the best in terms of
the bottom line is yet to come ", Parvez Ahmed added.
Overview of his vision for growth and business
Bank to the next level inform the chairman of the rollout of new Zonal
structure at the District level w.e.f. K2 of the current financial year
align the budget / development plan of the central government with the business plan
of the bank with a vision of socio-economic development of the state. The couch
He added to expand his scope to facilitate the major
majority of the rural population of the state including the bottom of the pyramid
population, which depends on informal channels for their financial needs.
This said he will further strengthen the bank's low-cost CASA franchise
at 50.7%, it is one of the best in the banking sector.
"As I said before, we see many unfulfilled points
demand and potential for increased lending in SMEs, tourism
Infrastructure, agriculture & allies, infrastructure (government spending),
Home Loan, Personal Finance to Govt. Employees, horticulture, gold loans etc.
this is confirmed by exponential growth in recent quarters. Promotion of the
Startups and new entrepreneurs also remain our priority as we go deeper
in the geographical areas in accordance with the policy support for startups on the
at the state and central government level and we will act as an enabler for the good
young people of our state, "Parvez Ahmed said in the statement to the press.
The total activities of the bank on 31 March 2019
touched 1.61.854 Cr consisting of deposits of Rs 89638Cr and gross outputs of
Rs72226 Cr compared to 1.42.466 Cr an
recorded an increase of around 14% years ago. The bank reported a stable low point
costs of funds at 4.90% with a CASA contribution of 50.7%. The NPA coverage
ratio has seen a slight dip on a sequential basis up to 64.30%, mainly due to
downgrade of IL & FS and its group companies. As a percentage of total loans,
the gross and net NPA ratios of the bank improved to 8.97% and 4.89% as
compared with 9.96% and 4.90% a year ago. Remarkably, the bank has recovered NPA & # 39; s from Rs
2750 Cr during the year in addition to making provisions of more than Rs. 1000 crore for
bad and doubtful debts.