J&K Bank Net Profit rose 35% year-on-year (YoY) to Rs 421.08 Cr for the October-December Quarter (Q3FY 2024) when compared to Rs 311.59 Cr registered for the same period last fiscal. The bank announced the results today after its Board of Directors reviewed and approved the numbers for Q3 and 9-months for FY 2023-24 in a meeting held at Bank’s Zonal Office in Jammu.
The bank’s profit for 9-months has jumped 57% in Q3 to Rs 1128.60 Cr from Rs 721.05 Cr clocked during nine-months of the last financial year.
Performance Highlights
For the quarter, Gross NPA Ratio of the Bank has come down to 4.84% i.e. 241 basis points (bps) YoY and 42 bps QoQ. The Net NPA ratio has also remarkably reduced by 125 bps YoY and is below 1% at 0.83%. Provision coverage ratio (PCR) of the Bank has vastly improved by 678 bps annually to 91.61% for the quarter ended December, 2023 from 84.83% recorded last year.
Commenting upon the Bank’s asset quality, MD & CEO said, “Asset quality continues to be our star metric and the numbers are fast converging towards the best in the industry. Backed purely by steady recoveries coupled with lower-to-negligible slippages, our GNPA has further reduced and we remain on track to meet our annual market guidance of GNPA around 4.5% while our net NPA is already below 1%. In terms of provisioning too we are very comfortably placed at PCR of above 90% after a very long time.”
Operating Numbers
On the back of recoveries, the Bank’s Profit after Tax (PAT) for the Q3 increased by 35% to Rs 421.08 Cr while as the 9-month net figure jumped 57% to Rs 1128.60 Cr.
The Net Interest Income (NII) has grown 11% YoY for 9-months to Rs 3897.57 Cr for the December quarter when compared to Rs 3495.73 Cr recorded last year, while increasing 2% YoY for Q3 to Rs 1280.44 Cr. The Bank’s Operating Profit stood at Rs 550.54 Cr.
The Bank’s NIM for the quarter stood at 3.83%. The Return on Assets (RoA) increased by 23 bps YoY to 1.15% for the October-December quarter with Yield on Advances improving by 44 bps to 9.78% from 9.34% recorded last year. Meanwhile, the Bank’s steadily moderating cost-to-income ratio has come down further to 62.36% for the third quarter.
In his remarks on operating numbers, MD & CEO Baldev Prakash said, “We have continued our growth momentum by delivering another set of quarterly numbers reflecting progress in bottom-line parameters. I am confident that we are well on course to meet our annual growth guidelines.”