Following a robust growth in fee income, Jammu & Kashmir Bank (J&K Bank) has reported a 30 per cent rise in net profit for the quarter-ended December 31, 2007. | |
| The bank's net profit rose to Rs 109.16 crore from Rs 83.89 crore in the corresponding quarter last financial year. |
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| Net interest income, however, grew a marginal 3.21 per cent to Rs 201.34 crore during the quarter from Rs 195.08 crore a year earlier. Net interest margin fell to 2.98 per cent at the end of the December quarter from 3.55 per cent in the 2006 quarter. Other income surged 115.76 per cent to Rs 70.48 crore from Rs 32.67 crore. |
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| The bank's advances grew 23.3 per cent to Rs 18,287 crore from Rs 14,381 crore a year earlier. Deposits rose 30.7 per cent to Rs 26,527 from Rs 20,296 crore. The ratio of low-cost deposits (current account and savings account) dropped to 35.99 per cent from 40.42 per cent a year earlier. |
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| During the quarter, net non-performing assets (NPA) rose to 0.82 per cent from 0.73 per cent a year earlier. The ratio of gross NPAs came down to 2.52 per cent from 2.68 per cent. |
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| The bank's capital adequacy ratio slipped to 13.82 per cent from 14.57 per cent in the December 2006 quarter, of which tier I capital amounted to 13.12 per cent. |
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| The bank plans to raise capital by March 2008 through a issue of global depositary receipts (GDR) to be listed on the London Stock Exchange. The bank has already allotted 40.92 lakh convertible warrants on a preferential basis to the Jammu and Kashmir state government, the majority stakeholder, to help it retain its stake at 53.17 per cent. |
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