J&K Bank net profit jumps over two-fold to Rs 175 cr in Dec quarter

State-owned Jammu & Kashmir Bank on Tuesday reported a more than two-fold rise in its net profit at Rs 174.81 crore for the quarter ended December 2021 on the back of a significant drop in its provisioning requirement.

The bank had posted net profit of Rs 66.37 crore in the same quarter a year ago, and Rs 111.60 crore in the preceding quarter ended September 2021.

Total income during Q3 FY22, however, was down at Rs 2,178.57 crore as against Rs 2,349.81 crore in Q3FY21, J&K Bank said in a regulatory filing.

It also fell sequentially from Rs 2,203.36 crore in the September quarter of this fiscal.

Interest income during the quarter fell to Rs 2,019.77 crore as against Rs 2,076.37 crore.

The lender's provisioning for bad loans and contingencies for the quarter came down significantly to Rs 8.22 crore, as against Rs 457.61 crore it had put aside in the year-ago period.

As of December 31, 2021, the government of Jammu & Kashmir held 70.12 per cent stake in the bank.

Provision coverage ratio as on December 31, 2021 was 81.45 per cent, the bank said. It excludes the floating provision of Rs 348.72 crore held by the bank, which is now part of tier-II capital, it added.

The board of directors at their meeting also approved the issuance of up to 2 crore equity shares of the bank under employees stock option scheme, it added.

Stock of the bank closed at Rs 41.25 apiece on BSE, up by 0.49 per cent from the previous close.