J&K Bank Q3 net loss at Rs 498 cr

Provisions for bad loans shoot up; bank had posted a Rs 118 cr profit a year ago

Jammu and Kashmir Bank today reported a net loss at Rs 498.47 crore for the third quarter ended December 2016, mainly due to sharp jump in provisions for bad loans.

The bank had reported a net profit of Rs 117.68 crore in October-December quarter of 2015-16.

Its total income also decreased to Rs 1,770.2 crore in the reporting quarter, from Rs 1,806.08 crore in the same period last fiscal, the bank said in a BSE filing.

The total provisions excluding income tax increased over three-fold to Rs 726.28 crore, as against Rs 239.67 crore in the year-ago period.

Gross NPA as a percentage of total advances rose significantly to 11.84 per cent, from 6.81 per cent a year earlier. The bank's net NPA stood at 5.99 per cent, from 2.60 per cent at the end of December 2015.

In a separate filing, Jammu and Kashmir Bank said its board of directors have approved the proposal for further issue of equity shares of the bank up to a maximum of Rs 250 crore (including the premium amount) on a preferential allotment basis to the government of Jammu and Kashmir, the promoter and majority shareholder of the bank, subject to approvals.