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J&K Bank has reported a 43 per cent increase in net profit for the quarter ended December 31, 2018 at Rs 103.75 crore (Rs 72.47 crore).
For the nine months ended December 31, 2018, J&K Bank recorded net profit of Rs 250.09 crore, up 43.7 per cent over net profit of Rs 174 crore recorded in same period in previous year.
"We met our third quarter profit estimates despite downgrading the much publicized IL&FS exposure and making adequate provisions, though a number of banks are still maintaining the account as standard", Parvez Ahmed, Chairman & CEO, J&K Bank said in a statement. "Our focus on expansion of credit in J&K has strengthened our core income with a credit growth of 22 per cent which is spread across all the regions of the State with traction in all the sectors especially retail and SME".
Going forward, J&K Bank will consolidate further and maintain its strategy of J&K State focused growth which offers a reasonably high absorption capacity with pull across sectors in alignment with development oriented budget and recently announced industrial policy of the State, he said. Ahmed also said that J&K Bank is targeting a profit of Rs 2,000 crore by FY 2022. This bank reported a net interest margin (NIM) of 3.76 per cent as of December 31, 2018 -- largely driven by bank's low cost of funds at 4.90 per cent and CASA contribution of 49 per cent.
Ahmed maintained that the bank has been able to ride over the IL&FS shock without any major deterioration in the balance sheet parameters. The Gross and net NPA ratios of the bank by and large remained unchanged at 9.94 per cent and 4.69 per cent respectively.
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