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Jammu and Kashmir Bank Ltd.

BSE: 532209 Sector: Financials
NSE: J&KBANK ISIN Code: INE168A01041
BSE 00:00 | 07 Feb 51.20 -0.50
(-0.97%)
OPEN

52.00

HIGH

52.05

LOW

50.55

NSE 00:00 | 07 Feb 51.20 -0.55
(-1.06%)
OPEN

52.10

HIGH

52.10

LOW

50.50

OPEN 52.00
PREVIOUS CLOSE 51.70
VOLUME 483526
52-Week high 62.75
52-Week low 23.80
P/E 4.60
Mkt Cap.(Rs cr) 4,923
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 52.00
CLOSE 51.70
VOLUME 483526
52-Week high 62.75
52-Week low 23.80
P/E 4.60
Mkt Cap.(Rs cr) 4,923
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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

Company chairman speech

Esteemed Shareholders

Hope you are all in good health safe and doing well.

I feel immensely pleased to present the83rd Annual Report of the Bank and place beforeyou the highlights of the Bank's performance for the FY2020-21. Details of the initiativesand achievements are provided in the enclosed Annual Report of the Bank.

It has been one and a half year now since the onset of unprecedented world-wide healthcrisis caused by the COVID-19 pandemic leading to complete economic disruption and theconsequent devastation unleashed across the globe. The financial year gone by wasenormously affected by the damage caused by the pandemic. COVID-19 brought the entireplanet to a grinding halt forcing restrictions on movement thereby crippling businessescompletely. During the period many of us lost near and dear ones to the pandemic. J&KBank Family too lost few of its brave souls to the pandemic. We firmly stand with andshare the grief with their loved ones and wish them well.

Although the ongoing pandemic brought extremely challenging circumstances halting everyaspect of the economy yet the prompt and significant interventions instituted by theCentral Government as also the Reserve Bank of India to save the lives besides introducingfiscal and monetary measures to keep the businesses going and revive the economycontrolled the damage to a large extent. Consequently due to the slew of measures takenthe economy grew by 1.6 per cent in the fourth quarter of the year and 20.1 per centduring the first quarter of current fiscal albeit reflecting the base effect while it hadcontracted by 24.4 per cent at the end of the first quarter of the FY 20-21. After therollout of the world's largest vaccination program in the country economic growth isexpected to take the driver's seat. According to some forecasts India is expected to beone of the fastest growing economies in the world in the current financial year.

Coming to our home territory the economy in J&K and Ladakh is gaining momentum andis expected to be on a much stronger footing by the end of half-year. Businesses arefinding their path-to-recovery through various revival schemes launched by the CentralGovernment under 'AtmaNirbhar Bharat'ably complemented by the business revival schemeslaunched by your Bank. Further the industrial developmental package of Rs. 28400 Croreapproved by the Center for UT of J&K will prove to be a game- changer which shallgreatly improve the region's economy besides generating employment opportunities in bothmanufacturing and service sectors with a host of incentives that will lead tosocio-economic development boost domestic manufacturing and help UT of Jammu &Kashmir in becoming self-reliant. Bank with its massive outreach and across-the-spectrumclient base will contribute in a major way and act as the catalyst for the fast-trackeconomic development that will usher in following implementation of the package.

Performance of your Bank

Your Bank - flagship financial institution of UTs of Jammu & Kashmir and Ladakh -has successfully pulled itself out of the pandemic-induced turbulence. The financialresults announced by the Bank for the financial year 2020-21 have been historic in natureas it registered a progressive performance with an annual net profit of Rs. 432.12 croreas against a net loss of Rs. 1139.41 crore for the previous year. Backed by highernon-Interest Income that increased by 32% YoY to Rs 718.99 crore Our Operating profitincreased 6% to Rs.1611.23 Crore as on March 31 2021 against Rs.1525.05 Crore recorded onMarch 31 2020. The net NPA as percentage to net Advances has significantly declined to2.95 % from 3.48 % while as the Gross NPA ratio has reduced sharply to 9.67% from 10.97%recorded as on March 31 2020. The Provision Coverage Ratio for the FY2020-21 improved to81.97% as against 78.59% recorded as on March last year. Bank has vastly improved itsnumbers in terms of key financial parameters like NIM Gross NPA Net NPA ProvisionsCoverage CASA and Capital Adequacy besides gradually improving bottom line.

Overall we are well positioned to gain momentum and transcend our envisaged trajectoryof growth. The performance of your Bank reflects the spirit of resilience and relentlesscommitment of the staff towards this wonderful institution. I am proud of my colleaguesand thank all of them for putting up this performance despite odds and let me reiteratethat the human capital of the Bank remains the cornerstone in the legacy of itsinstitutional achievements.

Capital Requirement

Owing to regulatory requirements of capital coupled with maintenance of adequatebuffers to support envisaged growth Bank is contemplating toraiseEquity Share Capital upto Rs. 1000 Crore in one or more tranches. The regulator has approved raising of capitalby issue of 16.76 crore equity shares aggregating to Rs. 500 crore through preferentialallotment to Government of J&K the promoter and majority shareholder of the Bank.

Also I feel delighted to share with you that the Bank has successfully implemented theboard-approved Employee Share Purchase Scheme (ESPS - 2021) to raise up to Rs 150 Crore byissuing equity shares to eligible employees of the Bank. As our long legacy alwaystestifies the members of J&K Bank Family participated whole-heartedly and made thescheme a roaring success as the issue got over-subscribed within few days after it wasopened.

Way Forward

Pursuing our strategy that strikes a balance between long-term objectives and immediateimperatives we have strengthened the balance sheet enough to generate a longtermorganisational momentum for the steady growth of business while cementing our collectiveresolve to march ahead and complement the implementation of government's vision ofself-reliant entrepreneur-friendly and socially- inclusive economy.

The focus of the Bank will continue to remain on sustained growth without compromisingon asset quality while enhancing human capacities through up skilling improving oursystems and procedures upgrading technological platforms to meet our growth objectivesand envisaged institutional excellence.

At the same time we shall continue to bring in more excellence in providing qualityservices and products to our growing number of valuable customers.

Besides fortifying the corporate governance frameworks within the organisation wehave reinforced the compliance culture and that has played an important role in oursuccess. Your Bank as you know is covered under RTI Act besides conforming to the CVCguidelines and I assure you that all the affairs of the Bank are being conducted in ahighly transparent manner. The future balance sheets of the Bank will reflect theenvisaged and properly strategized growth by implementing the well thought out and plannedreforms in the Bank.

Bank is also working continuously to improve the quality of service which is gaugedthrough customer satisfaction surveys and customer advisory forum meets regularlyconducted at operative levels as per regulatory guidelines.

Dear Shareholders

Our core strength originates from the wellsprings of emotional equity that the peopleof J&K Ladakh and rest of the country have invested in the Bank for decades now. Ourcustomers are our forte and the increasing competition will only further strengthen ourresolve to deepen our bonds with our people improve our customer services and stimulateus to keep offering them with best-in-class innovative easily accessible financialproducts banking services and facilities at competitive rates across the physical anddigital domains.

We perceive our role in the region as that of a developmental financial institutionwhich extends our resolve to work for the overall socio-economic empowerment and progressof the people in this region. Financial empowerment of people being the quintessence ofour vision we have always envisaged our home region J&K and Ladakh as financiallyinclusive economically vibrant with expanding avenues for entrepreneurship andprogressive enterprises. In the rest of India we are pursuing increasing our footprint inniche markets and augmenting our share in the retail segment while capitalizing on lendingopportunities in PSU and higher rated corporate segments.

On behalf of my colleagues on the Board-of-Directors of the Bank my heartfeltgratitude to our customers who continue to repose faith in us and continue to inspire usto perform with renewed vigor. I would like to take this opportunity to express my deepsense of gratitude to our promoters the Government of UT of J&K and Government ofLadakh UT for lending their kind unflinching support in toughest of the times. I am alsograteful to the esteemed Board of Directors for their support and guidance. And I amhighly thankful to the members of J&K Bank Family whose commitment sincerity andpersistent efforts have made the Bank's exceptional annual performance possible.

Looking forward for your continued support and patronage. Thank You All!

R.K. Chhibber

Chairman & Managing Director

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