Srinagar, 27-07-2024: J&K Bank has announced a remarkable 27% increase in its net profit for the April-June quarter of 2024-25, reaching ₹415 crore, up from ₹326 crore in the same period last year. The bank’s total income for the first quarter of the current fiscal year climbed to ₹3,188 crore, compared to ₹2,885 crore the previous year.
Interest income for the bank also saw a rise, totaling ₹2,994 crore, an increase from ₹2,657 crore in the previous year’s quarter. Net Interest Income (NII) grew by 7% to ₹1,369 crore. The bank’s gross Non-Performing Assets (NPAs) decreased to 3.91% of gross advances, down from 5.77% a year ago, while net NPAs also fell to 0.76% from 1.39%.
The capital adequacy ratio improved to 15.07% by June, up from 14.83% in the previous year. The Net Interest Margin (NIM) increased by 9 basis points to 3.86%, compared to 3.77% in the last quarter of the previous financial year. Core operating profit rose 13% year-on-year to ₹594.67 crore from ₹528.05 crore.
Return on Assets (RoA) for the quarter stood at 1.08%, up from 0.94% in the first quarter of the last financial year. J&K Bank’s MD and CEO highlighted the improved financial performance as a testament to the bank’s resilience and strength, noting that despite margin pressures, the bank has maintained a NIM close to 4%.
Advances grew by over 13% year-on-year to ₹95,449.77 crore from ₹84,475.63 crore, and deposits increased by 9% to ₹1,32,573.13 crore from ₹1,21,297.49 crore. The CASA Ratio was at 49.77% during the quarter. The CEO acknowledged the temporary dip in the CASA ratio due to increased government fund outflows but expressed confidence in maintaining it above 50% annually.
Looking ahead, the MD and CEO emphasized the bank’s focus on leveraging infrastructure development and increasing tourist inflow in J&K to drive business growth. The bank is also advancing towards becoming a fully digital institution, with plans to onboard remaining products digitally by the end of the current financial year.
The bank’s improved Capital Adequacy Ratio (BASEL III) stands at 15.07%, providing a strong foundation for future growth. “With a CRAR above 15%, we are well-positioned to support our expansion plans,” the CEO concluded.