26th October 2010
Srinagar
JK Bank posts H1 net profit of Rs 309 Cr.<br>‘Sustainable growth inspite of difficult conditions, reflects our operational strength' – Mushtaq Ahmad
In spite of the difficult conditions here for the state economy during the last five months, J&K Bank has registered a net profit of Rs 163.27 crore for the quarter ended September 2010, which is up by 22% from Rs 134.27 crore earned during the corresponding quarter of previous financial year.
The net profit for the half-year that ended September 2010 has also increased by 22% to Rs 309 crores from Rs 252 crores recorded during the corresponding half of previous financial year.
The reviewed financial results for the quarter and half year ended Sep, 2010, were announced following the approval of its Board of Directors in a meeting held here on Oct 25, 2010.
Commenting on the results, Chairman and CEO Mr. Mushtaq Ahmad said, "Driven by better liability management and operating efficiency, our financial results for the year 2009-10 adequately reflect our operational strength for robust and sustainable growth in spite of the difficult business conditions prevalent in the state".
He said, "This also provides an insight into the capability of the bank to adapt its functional competence according to the prevailing conditions of the economy. Two decades of turmoil, in this regard, is a long duration for an organization like ours which stand witness to our robust performance during all these years. During these years the bank successfully expanded its area of operation across the country and also diversified its operations into insurance sector and other third party product segments. Growth of around 1000 per cent in different spheres during 1996 to 2005 is result of all this."
Functioning as the premiere developmental institution of the state, the Chairman emphasized, the bank would continue to play its role as a strong partner for all the viable and sustainable projects which are directed towards the overall development of the J&K state.
In the last couple of months the bank has launched certain initiatives, which include massive drive to combat unemployment in the state. In order to encourage the educated unemployed youth towards self employment ventures, the bank has adopted and launched the Seed Capital Fund scheme. The bank shall be providing hassle free finance to the youth for their ventures and will even guide and monitor the progress of the ventures of the borrowers beyond disbursement of the loan
The chairman said, "The Bank shall ensure that entrepreneurs of the state face no problems in timely finances once their Detailed Project Reports (DPRs) under SKEWPY get clearance from the relevant departments. Moreover, the process of clearance has already been put on fast-track and there is completely hassle-free mechanism in place that will facilitate the financial support to our first generation entrepreneurs in the best possible way." The Chairman further said, "The policies of bank are driven by the commitment to empower the people of state in socio-economic sense. And we see our youth as a huge resource to drive and lead this socio-economic model of development through entrepreneurship, efficiency and honesty".
The bank also launched easy finance scheme for local small traders at soft terms and conditions, which has evoked appreciating response from the business community.
The bank has also introduced e-statement facility for its credit card holders to avoid delays in clearing their outstanding well on time. By virtue of this facility, the JK Bank credit card holders can download their statements from the bank's website.
Notably, the bank has been leveraging technology to ensure customers' delight. During turmoil, the ATM network of the bank has provided tremendous support to the people in the state, particularly in Kashmir. Fund transfer facility offered by the bank for the local business community and the students through different modes like RTGS, NEFT, Internet Banking etc has resulted in their delight. The fund transfer facility has been a big support to the parents here during these disturbed conditions, as they have been able to transfer money to their wards across the world.
Meanwhile, providing a financial boost to all the sectors of local economy through innovative sector-specific products, the bank has already geared its operational side to revive and give a fillip to our relationship with the corporate world, he added.
The NPA Coverage Ratio (including technical write-off) of the bank as on Sep, 2010 is at 95% up from 82% a year ago and well above the RBI stipulated norm of 70%.
The business turnover moved to Rs 62871 crore, increasing by 17 % YoY over Rs 53671 crore a year ago. The bank recorded total advances of Rs 23183 crores as on September 30, 2010, which is up by 10 % from last September's Rs 21108 crore. Notably, the bank has granted around 51% of loans in J&K state, whileas 49% loans have been given in rest of the country.
The Bank's Deposit base stood at Rs 39688 crore up 22 % from Rs 32563 crore as on Sep 30, 2009. The low cost Demand and Savings Deposits of the Bank as on Sep, 2010 are at Rs 16329 crore registering a substantial increase of 36 % from Rs 12041 crore as on Sep, 2009, improving the CASA Ratio further to 41 % from 37 % a year ago.
The Net Interest Margins (Annualised) of the Bank for the half-year ended Sep, 2010 improved to 3.69 % from 2.96 % for the corresponding half year of the previous fiscal year. The Cost of Deposits has declined by 73 basis points from 5.83 % to 5.10 % respectively.
With the leveraging of technology and managing costs efficiently, the Bank continued to bring down its Cost to Income ratio which is at 36.38 % for the quarter ended Sep, 2010 compared to 37.32 % for the quarter ended Sep, 2009.
The net profit for the half-year that ended September 2010 has also increased by 22% to Rs 309 crores from Rs 252 crores recorded during the corresponding half of previous financial year.
The reviewed financial results for the quarter and half year ended Sep, 2010, were announced following the approval of its Board of Directors in a meeting held here on Oct 25, 2010.
Commenting on the results, Chairman and CEO Mr. Mushtaq Ahmad said, "Driven by better liability management and operating efficiency, our financial results for the year 2009-10 adequately reflect our operational strength for robust and sustainable growth in spite of the difficult business conditions prevalent in the state".
He said, "This also provides an insight into the capability of the bank to adapt its functional competence according to the prevailing conditions of the economy. Two decades of turmoil, in this regard, is a long duration for an organization like ours which stand witness to our robust performance during all these years. During these years the bank successfully expanded its area of operation across the country and also diversified its operations into insurance sector and other third party product segments. Growth of around 1000 per cent in different spheres during 1996 to 2005 is result of all this."
Functioning as the premiere developmental institution of the state, the Chairman emphasized, the bank would continue to play its role as a strong partner for all the viable and sustainable projects which are directed towards the overall development of the J&K state.
In the last couple of months the bank has launched certain initiatives, which include massive drive to combat unemployment in the state. In order to encourage the educated unemployed youth towards self employment ventures, the bank has adopted and launched the Seed Capital Fund scheme. The bank shall be providing hassle free finance to the youth for their ventures and will even guide and monitor the progress of the ventures of the borrowers beyond disbursement of the loan
The chairman said, "The Bank shall ensure that entrepreneurs of the state face no problems in timely finances once their Detailed Project Reports (DPRs) under SKEWPY get clearance from the relevant departments. Moreover, the process of clearance has already been put on fast-track and there is completely hassle-free mechanism in place that will facilitate the financial support to our first generation entrepreneurs in the best possible way." The Chairman further said, "The policies of bank are driven by the commitment to empower the people of state in socio-economic sense. And we see our youth as a huge resource to drive and lead this socio-economic model of development through entrepreneurship, efficiency and honesty".
The bank also launched easy finance scheme for local small traders at soft terms and conditions, which has evoked appreciating response from the business community.
The bank has also introduced e-statement facility for its credit card holders to avoid delays in clearing their outstanding well on time. By virtue of this facility, the JK Bank credit card holders can download their statements from the bank's website.
Notably, the bank has been leveraging technology to ensure customers' delight. During turmoil, the ATM network of the bank has provided tremendous support to the people in the state, particularly in Kashmir. Fund transfer facility offered by the bank for the local business community and the students through different modes like RTGS, NEFT, Internet Banking etc has resulted in their delight. The fund transfer facility has been a big support to the parents here during these disturbed conditions, as they have been able to transfer money to their wards across the world.
Meanwhile, providing a financial boost to all the sectors of local economy through innovative sector-specific products, the bank has already geared its operational side to revive and give a fillip to our relationship with the corporate world, he added.
The NPA Coverage Ratio (including technical write-off) of the bank as on Sep, 2010 is at 95% up from 82% a year ago and well above the RBI stipulated norm of 70%.
The business turnover moved to Rs 62871 crore, increasing by 17 % YoY over Rs 53671 crore a year ago. The bank recorded total advances of Rs 23183 crores as on September 30, 2010, which is up by 10 % from last September's Rs 21108 crore. Notably, the bank has granted around 51% of loans in J&K state, whileas 49% loans have been given in rest of the country.
The Bank's Deposit base stood at Rs 39688 crore up 22 % from Rs 32563 crore as on Sep 30, 2009. The low cost Demand and Savings Deposits of the Bank as on Sep, 2010 are at Rs 16329 crore registering a substantial increase of 36 % from Rs 12041 crore as on Sep, 2009, improving the CASA Ratio further to 41 % from 37 % a year ago.
The Net Interest Margins (Annualised) of the Bank for the half-year ended Sep, 2010 improved to 3.69 % from 2.96 % for the corresponding half year of the previous fiscal year. The Cost of Deposits has declined by 73 basis points from 5.83 % to 5.10 % respectively.
With the leveraging of technology and managing costs efficiently, the Bank continued to bring down its Cost to Income ratio which is at 36.38 % for the quarter ended Sep, 2010 compared to 37.32 % for the quarter ended Sep, 2009.