Excelsior Correspondent
SRINAGAR, May 4: In a record-breaking performance, J&K Bank has posted a net profit of Rs 1767 Cr for the fiscal 2023-24 – a remarkable improvement of 48% over the previous high of Rs 1197 Crore achieved last year.
The Bank declared its annual and Q4 results today after its Board of Directors approved the numbers in a meeting held here at the Bank’s Corporate Headquarters.
On the occasion, the Board of Directors of the Bank also recommended a handsome final dividend of Rs 2.15 per share of Face Value Re 1.00 for its shareholders.
The Bank’s net profit for the Q4FY23-24 also rose by 34% to Rs 638.67 Cr when compared to Rs 476.33 Cr recorded last financial year. This also is a historic high for quarterly profits. The Bank’s notable metrics include 3.92% net interest margin (NIM), over 15% capital adequacy ratio (CAR), around 4% gross NPA and below 1% net NPA.
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The Bank’s total revenue grew by 19% to cross the Rs 12000 Cr mark while as the net interest margin (NIM) stood at 3.92%. Bank’s Yield on Advances rose annually to 9.54% from 8.91%, while as the Return on Assets (RoA) reached quite healthy levels at 1.22% – crossing the 1% barrier after a decade – as against 0.89% recorded last fiscal.
Expressing his satisfaction about the good set of numbers posted by the Bank for FY 2024, the Bank’s MD & CEO Baldev Prakash said, “Our record-breaking annual profit and impressive financial metrics reflect the changing culture of the Bank where delivering streak of new records period after period is becoming a habit. It also underscores the Bank’s resilience and strategic prowess in navigating dynamic market conditions. More so, it reflects the dedication of our staff, the unwavering trust of our customers, and the continued support of our major shareholders i.e. UT Government.”
He further informed that J&K Bank’s total deposits rose 10.44 % YoY to Rs 134774.89 Cr as of March 31, 2024, from Rs 122037.74 Cr recorded a year ago, while as the Net Advances of the Bank stood at Rs 93762.51 Cr in Q4FY24 rising up 14 % YoY from Rs 82285.45 Cr in Q4FY23.
On a sequential basis (QoQ), deposits grew by 5% and advances increased by 4.5%. Meanwhile, the Bank’s CASA Ratio at 50.51% as of March 31, 2024, despite industry-wide pressures on liability side, is among the best in the industry.
“Moreover, the Bank’s deposit growth, in line with the industry average of 11%, and advances increasing by approximately 14%, highlight its robust growth trajectory and market leadership in its core operational geography”, said Mr Prakash.
Strengthening its asset quality further, the Bank has brought down the Gross NPA (GNPA) to 4.08 %, while the net NPA are below 1 percent at 0.79%.
MD further stated, “Our strong asset quality metrics underscore our methodical approach to risk management and our unwavering focus on maintaining a healthy balance sheet. While exceeding our annual guidance, these results validate our efforts to build a resilient and sustainable banking franchise. With a Provision Coverage Ratio (PCR) at 91.58%, J&K Bank continues to demonstrate its commitment to prudential provisioning and risk mitigation.”
Ensuring adequate availability of capital to support its business growth while maintaining the regulatory buffer comfortably, the MD said that the Bank is well cushioned with its Capital Adequacy Ratio at 15.33 % as on March 2024.
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