Jammu & Kashmir Bank rebounds over 10% from intra-day lows

The stock moved higher by 5% to Rs 63.80, bouncing back 12% from intra-day low of Rs 57.15 on the BSE.

Jammu & Kashmir (J&K) Bank has moved higher by 5% to Rs 63.80, bouncing back 12% from intra-day low on the BSE.

The stock dipped 6% to Rs 57.15 in early morning trade after the bank reported a standalone net loss of Rs 602 crore for the quarter ended September (Q2FY17), mainly on account of higher provisioning for bad loans. It had posted  a net profit of Rs 196 crore in the same quarter last year (Q2FY16).

The provision for bad loans increased by nearly eight-fold to Rs 992 crore in Q2FY17 from Rs 127 crore in Q2FY16. It was Rs 313 crore in previous quarter (Q2FY17).

The gross non-performing asset (NPA) ratio rose to 11.33% from 9.31% at the end of the previous quarter. Net NPA’s of the bank have reached 6.81% from 6.19% due to fresh slippages during the quarter. The increased provisions are largely on account of fresh slippages, restructuring and under?provisioning of earlier periods.

Commenting on the numbers, Mr. Parvez Ahmed Chairman & CEO J&K Bank said efforts were on to finding innovative and contemporary solutions to effectively reduce the NPAs which shall pave way for completely focusing on quality growth during ensuing financial year.

The declaration of financial results which got delayed due to pending approval of its Rehabilitation package by the Reserve Bank of India that was finally cleared in the previous week.

At 02:08 pm; the stock was up 4% at Rs 63.20 on the BSE as compared to 0.05% rise in the S&P BSE Sensex. The trading volumes on the counter surged eight-times with a combined 6.14 million shares changed hands on the BSE and NSE.