Jammu and Kashmir Bank reported a 10.6% year-on-year increase in standalone net profit to Rs 546.36 crore for the September quarter, compared with Rs 494.11 crore a year earlier. Net interest income rose 5% to Rs 1,502 crore from Rs 1,434 crore in the year-ago quarter, according to the bank's earnings release dated Oct. 22.
Other income more than doubled to Rs 314.90 crore from Rs 153.76 crore a year earlier. Provisions stood at Rs 72.34 crore, compared with a write-back of Rs 10.93 crore in the year-ago quarter and provisions of Rs 84.04 crore in the June quarter.
J&K Bank (Q2, Standalone YoY)
- Net profit up 10.5% at Rs 546 crore versus Rs 494 crore.
- Net interest income up 5% at Rs 1,502 crore versus Rs 1,434 crore.
- Other income at Rs 315 crore versus Rs 154 crore.
- Provisions at Rs 72.3 crore versus a write-back of Rs 10.9 crore.
Asset Quality Improves
Gross non-performing assets declined to 2.23% in the September quarter from 2.37% in the June quarter. Net non-performing assets fell to 0.51% from 0.60% over the same period.
The provision coverage ratio stood at 91.76% as of Sept. 30, compared with 90.53% as of June 30, according to the bank's press release.
Operating Performance
The bank's cost-to-income ratio declined to 56.57% from 60.79% a year earlier. Return on assets stood at 1.07% for the September quarter, up from 0.87% in the June quarter.
J&K Bank's total business grew 19.4% year-on-year to Rs 3.10 lakh crore as of Sept. 30. Gross advances increased 23.7% to Rs 1.34 lakh crore, while total deposits rose 16.3% to Rs 1.77 lakh crore.
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