J&K Bank recorded a Net Profit of Rs 104.32 Cr for the first quarter (Q1) of the Current Financial Year (CFY) 21-22. This represents a significant rise from last year when they recorded Rs 6.50 Cr during the Q1.
The results for Q1 were announced after the Bank’s Board of Directors approved the quarterly numbers in a meeting held at the Bank’s Corporate Headquarters today.
Highlights.
Growing 16% Year-on-Year (YoY), the bank’s operating income has gone up to Rs 1190.30 Cr from Rs 1023.97 Cr recorded last year, while as other income has shot up by 85%YoY to Rs 221.01 Cr from Rs 119.62 Cr.
UP by 27% in sequential terms, Bank’s operating profit grew by 21 %Y-o-Y to Rs 398.18 Cr as against Rs 330.22 Cr recorded on June 30, 2020. The Net Interest Margin (NIM) is 3.62 % as against 3.43% in Q4 of last financial year. The Net Interest Income has increased 7% YoY to Rs 969.29 Cr from Rs 904.35 Cr recorded on June 30, 2020.
Commenting upon the Bank’s results, CMD R K Chhibber said, “It’s really a good going amid apprehensions of 3rd Covid wave. With all major performance indicators showing an upward trend, the Q1 numbers are fine and in line with the strategy. Quarter-on Quarter basis, we have improved Cost to Income Ratio and reduced Cost of Deposits further. So we feel quite confident that the bank is on its way to leverage the increasing prospects of growth in coming quarters amid the swift and steady nation-wide vaccination drive”.
“In the meantime, guided by a professional Board, the management is laying more emphasis on increasing the operational efficiency and service delivery systems to effectively capitalise on the much anticipated growth momentum of post-vaccination economy”, the CMD added.
The CMD said, “An industrial package of Rs 28000 Cr from Central Government to boost the region’s economy and create employment opportunities, gradual opening up of the economy after second Covid-wave and growing tourist influx to J&K and Ladakh are the signs that herald the kicking off of growth cycle in the region” adding, “Therefore the Bank is also positioning itself accordingly and planning to enhance its financial and operational capacities to leverage the growth momentum and become the biggest contributor in the fast-track economic development that is about to usher in and help in making Jammu & Kashmir prosperous.
”During the course of deliberations, the CMD stressed upon the operative levels to make all out efforts to increase business while working efficiently and improving the customer service.