J&K Bank Q3 net profit up 11% at Rs 321.3 crore

Focus is more to protect asset quality than grow numbers: CEO

Srinagar-based Jammu & Kashmir  Bank (J&K Bank) has posted a 11.02% rise in net profit at Rs 321.29 crore for the third quarter ended 2013 as against Rs 289.4 crore in October-December 2012.

 

Its net interest income (NII) for the reporting quarter (Q3 of Fy14) rose by 8.2% to Rs 647 crore up from Rs 594 crore in the Q3 of 2012-13. However, its other income comprising fees, commissions and earnings from trading declined to Rs 87.45 crore in Q3 of FY14 from Rs 90.53 crore a Q3 of Fy13.

 

Commenting on the Q3 results, Chairman and CEO Mushtaq Ahmad said, In spite of the economic distress the bank has reported growth. The focus has been more on maintaining quality of assets rather than raising the numbers, he said.

 

Its advances during the Q3 grew by 21.48 percent to Rs 43,317.84 crore from Rs 35,657.69 crore, the bank said in statement. 

 

Its deposits rose by 10.66% to reach Rs 63,157.11 crore at end of December 2013 up from Rs 57,074.55 cr a year ago.

 

The Gross non-performing assets (NPAs) stood at 1.65% while net NPAs were 0.22%. The NPA Coverage ratio during the quarter was 90.24 percent, it added.

 

 “With elections looming amid economic downturn, we feel the going would get tougher for at least couple of quarters to come”,  Ahmed said adding bank will growth of around 15 % besides preserving our key quality parameters.

 

Its capital adequacy (Basel II norms) was 13.01 at end of December 2013.