J & K Bank To Cut Npa To Below 1% By 2004

Jammu and Kashmir Bank (J&K Bank) will reduce its non-performing assets (NPA) level to below one per cent by 2004, said chairman M Yousuf Khan. The average NPA level was 2.45 per cent in the last fiscal, which the bank expects to lower to below two per cent by March 31, 2002.

The bank's net profit stood at Rs 168 crore in 2000-01 and this year the projected profit is between Rs 225 crore and Rs 230 crore, Khan said. The bank expects its total business to rise to Rs 20,000 crore from Rs 16,000 crore recorded last year.

J&K Bank has signed a memorandum of understanding with Infosys for implementing e-banking and tele-banking in all of its 438 branches. In the current fiscal 270 branches will be fully computerised. Khan also said the bank would put in place a network 150 ATMs by March 2002.

 

Consultancy firm PricewaterhouseCoopers, who was appointed to pen a revamp plan for the bank, has submitted a detailed working plan for five years.

According to the plan, on an annualised basis net profit of the bank would surge 40 per cent and total volume of business would increase by 20 per cent. According to Yousuf Khan, net profit during the first half of the current fiscal is Rs 108 crore and total revenue stands at Rs 740 crore.

The bank has already forged an alliance with Metlife and Tata AIG Life Insurance Company for marketing insurance products in life and non-life sectors.

The products will be launched by December. J&K Bank has opened its first two branches in Kerala at Kochi and Thiruvananthapuram. Both the branches were opened by union minister for state for external affairs Omar Abdullah.