Shares in Jammu & Kashmir Bank (J&K Bank) slumped nearly 20 per cent to a fresh 52-week low Rs 108.70 on Monday after the lender reported disappointing earnings for the third quarter of FY15 on Saturday.
Its net profit decreased 67 per cent year-on-year to Rs 105 crore, led by a significant increase in its provisions for bad assets. Its provisions for bad assets increased 32 per cent sequentially to Rs 220 crore against Rs 168 crore in the September quarter.
J&K Bank's net interest income or interest earned over interest expended also decreased over 1 per cent to Rs 639 crore, against Rs 647 crore in the same quarter last fiscal.
Analysts say increase in its bad assets has raised concerns about its future profitability. Gross non-performing assets of the company increased by 108 basis points to 5.81 per cent of total advances in the December quarter, from 4.73 per cent sequentially.
Shares in J&K Bank ended 18.07 per cent lower at Rs 110.65, underperforming the broader Nifty, which closed 1.56 per cent lower.
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