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Jammu and Kashmir Bank Ltd.

BSE: 532209 Sector: Financials
NSE: J&KBANK ISIN Code: INE168A01041
BSE 16:01 | 20 Mar 49.95 -0.95
(-1.87%)
OPEN

50.90

HIGH

51.65

LOW

49.60

NSE 15:59 | 20 Mar 50.05 -1.05
(-2.05%)
OPEN

51.10

HIGH

51.80

LOW

49.75

OPEN 50.90
PREVIOUS CLOSE 50.90
VOLUME 60454
52-Week high 63.00
52-Week low 35.05
P/E 9.99
Mkt Cap.(Rs cr) 2,782
Buy Price 49.95
Buy Qty 1000.00
Sell Price 50.50
Sell Qty 3490.00
OPEN 50.90
CLOSE 50.90
VOLUME 60454
52-Week high 63.00
52-Week low 35.05
P/E 9.99
Mkt Cap.(Rs cr) 2,782
Buy Price 49.95
Buy Qty 1000.00
Sell Price 50.50
Sell Qty 3490.00

Jammu and Kashmir Bank Ltd. (J&KBANK) - Chairman Speech

Company chairman speech

Esteemed Shareholders

It is a moment of honour for me as Chairman and CEO to present my first Annual Reportfor the Financial Year 2016-17. The organizational acumen for running any business is putto test in times of crisis. The institutions which succeed in braving tough times do soonly by applying that acumen through the requisite skills adapting to the changingframeworks of functioning while drawing upon their institutional memory in the process.And that is precisely what we have been doing the entire past year.

As we all know the year 2016-17 has been very tough. The Business horizon remainedclouded with hostilities. The political and economic developments across the globecontinued to cast their shadows of uncertainty on the business environment. Brexit USPresidential elections war in Syria and deepening conflicts in other significantgeographies impacted the global economic environment thereby extending slowdown withsubdued growth numbers.

The Banking Industry which has been grappling with grim circumstances for last someyears again went through a very difficult year with uncertainties still looming large forfew more quarters in future. The pressure of deteriorating asset quality derailed theconsolidation initiatives of many of our peers. The revised Prompt Corrective Action (PCA)protocol from the regulator has found in its ambit majority of the PSU Banks. The creditoff-take reached its historical low of last sixty years. The liquidity created in thesystem due to demonetization further squeezed the margins. Amid fears of complete capitalerosion due to mounting asset quality issues strong body of opinions emerged in favor ofMergers and Acquisitions (M&A) which became the buzz-word in the country’schanging banking landscape. Besides the reversing interest rate cycle put huge pressureon the margins leading to decline of Net Interest Margin (NIM) to its historical low insome segments.

Having said it all our Bank which was just coming out of the after-effects ofSeptember 2014 deluge witnessed a dreadful summer in Kashmir Valley which further shookand choked the sustaining pulse of the state economy. In such a context we had to shiftour focus towards making conditions of our borrowers better to meet the fall-out of summerturmoil rather than betting on their capability. At this crucial juncture the SpecialRestructuring Package fully backed by the Government of Jammu and Kashmir and approved bythe Reserve Bank of India (RBI) came as a perfectly timed enabler to ensure streaming ofcash-flows.

Upgrade of our Recovery and Resolution Methodology assumed the highest significancepost recognition of asset quality woes. And creation of Impaired Assets PortfolioManagement (IAPM) vertical complimented our resolve of effecting recoveries at enhancedpace which also helped to release the squeezing pressure on our capital base. Furthermorethe Demonetization of Specified Bank Notes during third quarter fundamentally transformedthe way people perceived Banking. The digital platforms across various banking channelsphenomenally transformed mode and medium of financial transactions. It offered us theopportune time and platform to push for complete digitization of our service deliverymodels through our specialist technology vertical. It is the dividend of this technologydriven transformation which shall remain our cherished memory of this most difficult yearin the history of our Bank.

Loss is always the hardest and at times the best of task-masters to make us learn.That is why the "year of Losses" as we remember it now has taught us veryvaluable lessons. As an organisation the pain of loss has pushed some of our hiddencapacities to the fore and in the process is bringing the best out of us. We have learnedour lessons well and remain poised for a new and promising beginning. Our strategy isrepositioned to come out of this slump soon.

For in the midst of such situation we partially augmented our capital and arefuturistic in capital planning programme with an open window for more tranche infusionsduring the current year. Also our onboarding programme to develop our Human Resource forfuture growth and expansion plans too remained uninterrupted. In this regard we havealready engaged the services of globally reputed consultants M/S Delloitte Touche TohmatsuIndia LLP to advise us on the swiftly changing dynamics in the already complex bankinglandscape besides various aspects of organizational transformation technologyintervention and business process re-engineering. We are working on changing of ourBusiness Model to explore opportunities in geographies matching our appetite. Our spiritsare not dampened. We have covered around two third of our NPAs by sufficient provisioning.In terms of business we are on the path of recovery. Our consolidation and subsequentclean-up process has prepared us for the rejuvenated growth path. We are confident of theturn-around in business ahead of our earlier understanding. We are very optimistic ofresuming the dividend distribution soon.

Dear Shareholders

I derive all my strength from the unrelenting support and complete trust that you havevested in us for conducting the business of this Bank. I am confident that with ourperseverance and dedication we shall meet all the challenges and emerge stronger and moreresilient. So be there besides us to see our numbers going up.

Parvez Ahmed

Chairman and CEO