‘Record-breaking’: J&K Bank posts net profit of Rs1767 cr

SRINAGAR: In yet another record-breaking performance, J&K Bank has posted a net profit of Rs1767 Cr for the fiscal 2023-24 – a remarkable improvement of 48% over the previous high of Rs. 1197 Crore achieved last year. 

The Bank declared its annual and Q4 results today after its Board of Directors approved the numbers in a meeting held here at the Bank’s Corporate Headquarters. On the occasion, the Board of Directors of the Bank also recommended a handsome final dividend of Rs. 2.15 per share of Face Value Re 1.00 for its shareholders.  

The Bank’s net profit for the Q4FY23-24 also rose by 34% to Rs 638.67 Cr when compared to Rs 476.33 Cr recorded last financial year. This also is a historic high for quarterly profits.

Beating its previous highest-ever profit of Rs. 1197 Crore achieved only last year, the Bank’s net profit surged by 48% to record a new high of Rs 1767 Cr. In line with its promise of meeting annual guidance, the Bank’s notable metrics include 3.92% net interest margin (NIM), over 15% capital adequacy ratio (CAR), around 4% gross NPA and below 1%  net NPA – a reflection of strong operating results reinforcing further financial soundness and resilience to the balance-sheet.  

The Bank’s total revenue grew by 19% to cross the Rs 12000 Cr mark while as the net interest margin (NIM) stood at 3.92%.   Bank’s Yield on Advances rose annually to 9.54% from 8.91%, while as the Return on Assets (RoA) reached quite healthy levels at 1.22% –  crossing the 1% barrier after a decade – as against 0.89% recorded last fiscal. 

Expressing his satisfaction on the occasion about the good set of numbers posted by the Bank for FY 2024, the Bank’s MD & CEO Baldev Prakash said, “We are thrilled to report such stellar annual numbers, which reflect our unwavering commitment to excellence and prudent financial management. Our record-breaking annual profit and impressive financial metrics reflects the changing culture of the Bank where delivering streak of new records period after period is becoming a habitIt also underscores the Bank’s resilience and strategic prowess in navigating dynamic market conditions.”

“Recommendation of a handsome dividend of Rs. 2.15 per share of face value Re. 1.00 for FY 2024 by the Board of Directors, is an acknowledgement of the trust and support of our shareholders and we are keen to share the rewards with our valuable shareholders.”

J&K Bank’s total deposits rose 10.44 % YoY to Rs 134774.89 Cr as of March 31, 2024, from Rs 122037.74 Cr recorded a year ago, while as the Net Advances of the Bank stood at Rs 93762.51 Cr in Q4FY24 rising up 14 % YoY from Rs 82285.45 Cr in Q4FY23.

On a sequential basis (QoQ), deposits grew by 5% and advances increased by 4.5%. Meanwhile, the Bank’s CASA Ratio at 50.51% as of March 31, 2024, despite industry-wide pressures on liability side, is among the best in the industry. “Moreover, the Bank’s deposit growth, in line with the industry average of 11%, and advances increasing by approximately 14%, highlight its robust growth trajectory and market leadership in its core operational geography”, he said.

Strengthening its asset quality further, the Bank has brought down the Gross NPA (GNPA) to 4.08 %, while the net NPA are below 1 percent at 0.79%.

MD further stated, “Our strong asset quality metrics underscore our methodical approach to risk management and our unwavering focus on maintaining a healthy balance sheet. While exceeding our annual guidance, these results validate our efforts to build a resilient and sustainable banking franchise. With a Provision Coverage Ratio (PCR) at 91.58%, J&K Bank continues to demonstrate its commitment to prudential provisioning and risk mitigation.”