2nd July 2012
Srinagar
J&K Bank share crosses Rs 1010<i> ‘Bank's growth record commendable'</i>
J&K Bank share today crossed Rs.1000 mark per share. The share hit of Rs 1010 at BSE and Rs 1011 at NSE. The share closed at Rs. 1001 at BSE and Rs.993.55 at NSE. More than 1.2 lac shares were traded during the day at both the stock exchanges.
Meanwhile, advising investors to look at J&K Bank as a stock to add up to their portfolio, PN Vijay, a renowned Portfolio Manager recently told CNBC-TV18, "I have been trying to do some value mining in the public sector bank space which has been hit hard due to fears of bad performing loans. Jammu and Kashmir Bank is not normally on investors' radar but it is an excellent bank with an excellent balance sheet and growth. For the last quarter, J&K bank reported a net profit increase of more than 50% for the year as a whole which was commendable given the general scenario in the banking space."
He further added, "The net interest margins in J&K Bank one of the highest at 3.86% because a large portion of their deposits come from the state of Jammu and Kashmir and the return to normalcy there is making people invest more in banks and that sort of things and so their cost of deposits is one of the lowest in the country which leads to an NIM of 3.86%."
"On the whole, the balance sheet is very healthy by any standards and I would say it is far better than most of the private sector banks, which are trading at about 6 times its price earnings multiplier", he said.
In terms of valuations, J&K Bank is around 0.9 times adjusted book of the current year and in terms of price to earnings, it is quoting at about 5.5 times its price to earnings. So one is looking at a pretty smart upside and one is putting a target of about Rs 1,050 on this counter, he added.
Meanwhile, advising investors to look at J&K Bank as a stock to add up to their portfolio, PN Vijay, a renowned Portfolio Manager recently told CNBC-TV18, "I have been trying to do some value mining in the public sector bank space which has been hit hard due to fears of bad performing loans. Jammu and Kashmir Bank is not normally on investors' radar but it is an excellent bank with an excellent balance sheet and growth. For the last quarter, J&K bank reported a net profit increase of more than 50% for the year as a whole which was commendable given the general scenario in the banking space."
He further added, "The net interest margins in J&K Bank one of the highest at 3.86% because a large portion of their deposits come from the state of Jammu and Kashmir and the return to normalcy there is making people invest more in banks and that sort of things and so their cost of deposits is one of the lowest in the country which leads to an NIM of 3.86%."
"On the whole, the balance sheet is very healthy by any standards and I would say it is far better than most of the private sector banks, which are trading at about 6 times its price earnings multiplier", he said.
In terms of valuations, J&K Bank is around 0.9 times adjusted book of the current year and in terms of price to earnings, it is quoting at about 5.5 times its price to earnings. So one is looking at a pretty smart upside and one is putting a target of about Rs 1,050 on this counter, he added.