J&K Bank Q1 profit down 86% at Rs 23 crore

Jammu & Kashmir Bank has reported a 85.6% plunge in net profit at Rs 22.88 crore for the first quarter ended June 30.

The Srinagar-headquartered bank had reported Rs 158.76 crore net profit in the corresponding quarter last financial year.

However, the bank fared better when sequentially compared, as it had reported a loss of Rs 56.02 crore in the last quarter of the previous year.

Total income fell to Rs 1,789.05 crore during the quarter under review as against 1,888.35 crore in the same period a year ago, the bank said in a regulatory filing.

Provisioning of Rs 313.70 crore was made for bad loans in the first quarter over Rs 212.87 crore year ago.

"The technical write off in gross NPAs of Rs 781.08 crore (March ending 2016 quarter Rs 315.66 crore and corresponding previous quarter June 2015 Rs 0) have been made in this quarter," the bank said in the filing.

There was asset quality dent to the bank's balance sheet as gross non-performing assets (NPAs) rose to 9.31% of gross advances as on June 2016, up 6.63% a year ago.

Net NPAs were at 6.19% of net advances as against 2.95% a year ago.

Gross NPAs stood at Rs 4,714.92 crore in the June quarter against Rs 2,994.50 crore year ago. The net NPAs increased to Rs 3,023.47 crore from Rs 1,276.76 crore.

Shares of the bank were down 5.24% at Rs 69.60 in the pre-close session on BSE.