J&K Bank heads north after lowering deposit rates

Jammu & Kashmir Bank rose 2.33% to Rs 81.40 at 14:30 IST on BSE after the bank said that it has revised lower the interest rate on saving bank deposit accounts with effect from 12 September 2017.

The announcement was made during market hours today, 12 September 2017.

Meanwhile, the S&P BSE Sensex was up 226.76 points or 0.71% at 32,108.92. The BSE Mid-Cap index was up 143.52 points or 0.9% to 16,009.40.

On the BSE, 19,106 shares were traded on the counter so far as against the average daily volumes of 66,138 shares in the past one quarter. The stock had hit a high of Rs 81.65 and a low of Rs 80.65 so far during the day. The stock had hit a 52-week high of Rs 95.65 on 20 June 2017 and a 52-week low of Rs 54.60 on 24 November 2016.

The stock had outperformed the market over the past one month till 11 September 2017, gaining 9.95% compared with 2.14% gains in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 4.84% as against Sensex's 1.98% rise. The scrip had also underperformed the market in past one year, gaining 1.6% as against Sensex's 10.71% rise.

The mid-cap bank has equity capital of Rs 55.69 crore. Face value per share is Re 1.

Jammu & Kashmir Bank said that interest rate on domestic/non-resident ordinary/non-resident external rupee savings bank deposits have been reduced from 4% per annum to 3.5% per annum.

Jammu & Kashmir Bank's net profit rose 31.9% to Rs 30.19 crore on 0.1% growth in total income to Rs 1790.53 crore in Q1 June 2017 over Q1 June 2016.

Jammu & Kashmir Bank is the only bank in the country with majority ownership vested with a state government. The J&K state government holds 53.27% stake in the bank as at 30 June 2017.

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