Within the state, the bank reported a credit growth of20 per cent in line with the state focused lending strategy of the current leadership of the bank.
Commenting on the numbers, Chairman and CEO of the bank Parvez Ahmed said the banking industry has seen a very difficult and challenging 4thquarter with the RBI coming out with revised guidelines on NPA identification and treatment besides quashing the restructuring schemes leading to some major slippages across the industry.
"Then there was the Nirav Modi effect which lead to one of our accounts M/S Gitanjali Gems getting downgraded. In the JK state rehabilitated portfolio, RBI notified some divergence in classification. All this resulted in enhanced provisioning and interest reversals which precipitated in muted bottom-line for the quarter," Ahmed said.
He said on the brighter side, the bank was able to complete the cleanup and consolidation act.
"In the current fiscal though there will still be pressure on the balance sheet but we do not anticipate any major downgrade in the pipeline," he added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)