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Jammu & Kashmir Bank surges 10% on improved asset quality in Q1

So far in 2017, the stock outperformed the market by surging 54% against 21% rise in Sensex

SI Reporter  |  Mumbai 

J&K Bank
J&K Bank

Jammu & Kashmir (J&K) Bank surged 10% to Rs 91.90 on BSE in early morning trade on improvement in asset quality in April-June quarter (Q1FY18) as against the previous (January-March) quarter.

The bank’s gross non-performing assets (as a percentage of gross advances) in improved to 10.79%, against 11.20% for the quarter ended March 2017 (Q4FY17). Net NPAs stood at 4.65%, compared with 4.87% in Q4FY17. Gross NPA and Net NPA stood at 9.31% and 6.19%, respectively, at the end of June 2016 quarter.

In absolute terms, GNPAs were Rs 5,641 crore for the first quarter of FY18, against Rs 6,000 crore in the last quarter while net NPAs stood at Rs 2,267 crore, against Rs 2,425 crore (QoQ).

The lender reported 32% year-on-year (Y-o-Y) rise in net profit to Rs 30.19 crore in Q1FY18 against Rs 22.88 crore in Q1FY17. Net interest income (interest earned minus interest expended) grew 12.5% to Rs 712 crore from Rs 633 crore in previous year quarter.

At 9:42 am, the stock was up 6.4% to Rs 89.25 on BSE, as compared to 0.26% rise in the S&P BSE Sensex. Trading volumes on the counter more than doubled. 1.04 million shares have changed hands on the BSE and NSE so far.

So far in 2017, the stock outperformed the market by surging 54% against 21% rise in the benchmark index.

First Published: Mon, July 24 2017. 09:46 IST
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