J&K Bank gains on strong Q2 earnings

Q2 net profit at Rs 270 crore was better than average analyst estimate of Rs 226 crore.

Jammu and Kashmir (J&K) Bank has surged 5% to Rs 1,174 after reporting a better-than-expected 35% year-on-year (yoy) jump in net profit at Rs 270 crore for the second quarter ended September 2012. Analyst on an average expected profit of Rs 226 crore from the private sector bank. Total income grew 29% at Rs 1,592 crore on y-o-y basis.

The bank’s gross non performing assets (NPA) has reduced to 1.59% from 1.89%, while Net NPA to 0.16% from 0.22% on y-o-y basis," J&K Bank said in a filing.

The stock opened at Rs 1,131 and hit a high of Rs 1,188 after the announcement of results on the BSE. A combined 194,440 shares have changed hands on the counter till noon deals on both the exchanges.