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J&K Bank has reported 45% growth in net profit at Rs 550.92 crore for the quarter
ended September 2024 (Q2FY2025). The bank has posted healthy 8% growth in net
interest income (NII), while the core fee income of the bank also improved 59%
in Q2FY2025. The Net Interest Margin (NIM) of the bank eased to 3.90% in
Q2FY2025 compared to 4.07% in the corresponding quarter of previous year.
On business front, the
bank as has posted 9% growth in business with 8% rise in loan book. The asset
quality of the bank was stable in Q2FY2025. Bank has reduced the credit to
deposit ratio to 72.0% at end September 2024 from 72.5% at end September 2023.
CASA ratio of the bank has eased to 48.6% at end September 2024 from 50.6% at
end September 2023.
Asset quality stable: The bank has maintained
stable asset quality in Q2FY2025.
The fresh slippages of
loans stood at Rs 256 crore in Q2FY2025 compared with 174 crore in previous
quarter and Rs 225 crore in the corresponding quarter last year.
The recoveries of NPAs
stood at Rs 88.9 crore, upgradations at Rs 93.41 crore and the write-off of
loans was at Rs 15.22 crore in Q2FY2025.
The standard
restructured loan book of the bank stood at Rs 674 crore end September 2024
compared to Rs 718 crore a quarter ago.
Provision coverage ratio
was steady at 90.54% at end September 2024 compared to 91.57% a quarter ago and
89.99% a year ago.
The capital adequacy
ratio of the bank stood at 15.0% with Tier I ratio at 12.7% at end September
2024.
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Asset Quality
Indicators: J & K Bank
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|
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Sep/24
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Jun/24
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Mar/24
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Dec/23
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Sep/23
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Variation
|
|
QoQ
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YTD
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YoY
|
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Gross NPA (Rs Crore)
|
3916.26
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3857.59
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3956.19
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4526.48
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4826.68
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2
|
-1
|
-19
|
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Net NPA (Rs Crore)
|
813.39
|
727.58
|
736.85
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740.83
|
917.36
|
12
|
10
|
-11
|
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% Gross NPA
|
3.95
|
3.91
|
4.08
|
4.84
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5.26
|
4
|
-13
|
-131
|
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% Net NPA
|
0.85
|
0.76
|
0.79
|
0.83
|
1.04
|
9
|
6
|
-19
|
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% PCR
|
90.54
|
91.57
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91.58
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91.61
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89.99
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-103
|
-104
|
55
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% CRAR - Basel III
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14.99
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15.07
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15.33
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14.18
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14.53
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-8
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-34
|
46
|
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% CRAR - Tier I -
Basel III
|
12.70
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12.81
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13.09
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11.74
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11.68
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-11
|
-39
|
102
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Moderate business
growth: The
business of the bank has increased 9% YoY to Rs 237160 crore end September
2024, driven by 8% rise in advances to Rs 99242 crore. Deposits rose 9% to Rs
137918 crore at end September 2024.
CASA deposits ratio
declines: The
CASA deposits of the bank increased 5% YoY to Rs 67035 crore at end September
2024. The current account deposits increased 6% to Rs 13629 crore, while saving
account deposits rose 4% to Rs 53406 crore end September 2024. The CASA ratio
declined to 48.6% at end September 2024 compared to 50.6% at end September
2023, while declined from 49.8% a quarter ago. The term deposits have increased
13% to Rs 70883 crore end September 2024.
Double digit retail loan
growth: Advances
growth was driven by retail loans rising 11% YoY to Rs 38726 crore at end
September 2024, while credit to agriculture increased 9% to Rs 9685 crore and
MSME 4% to Rs 21088 crore at end September 2024. The corporate credit has moved
up 7% to Rs 29742 crore end September 2024.
Investment book of the bank declined 19% YoY to Rs 38741 crore at end September
2024. The SLR book moved up 8% to Rs 31423 crore, while non SLR book surged 105%
to Rs 7318 crore at end September 2024. The AFS book galloped 184% to Rs 13282
crore, while HTM book fell 12% to Rs 24616 crore at end September 2024. The
duration of the overall investment portfolio stood at 3.18 years end September
2024 compared with 3.21 years at end September 2023.
Margins ease: The bank has showed 42
bps YoY jump in cost of deposits to 4.80%, while yield on advances increased 7
bps YoY to 9.57% in Q2FY2025. Thus, the NIM has declined 17 bps YoY, while rose
4 bps qoq to 3.90%
Branch expansion: The bank has added 2
branches in Q2FY2025, taking overall tally to 1008 branches and 1424 ATM`s end
September 2024.
Book value of the bank stood at Rs
109.6 per share at end September 2024, while the adjusted book value (net of
NNPA and 10% of restructured advances) was Rs 101.6 per share at end September
2024.
Quarterly Performance
Moderate NII growth: Bank has recorded 13%
increase in the interest earned at Rs 3123.55 crore, while interest expenses
increased 18% to Rs 1687.62 crore in Q2FY2025. NII improved 8% to Rs 1435.93
crore in the quarter ended September 2024.
Healthy growth in the
core fee income: Bank has posted strong 59% growth in core fee income to Rs 77
crore, while the treasury income declined 48% to Rs 29 crore. The overall
non-interest income jumped 56% to Rs 296.08 crore in the quarter ended
September 2024.
Expenses ratio dip: The operating expenses
of the bank declined 5% to Rs 945.02 crore, as employee expenses dipped 9% to
Rs 657.89 crore in Q2FY2025. Other expenses moved up 7% to Rs 287.13 crore.
Cost to income ratio dipped to 54.6% in Q2FY2025 compared with 64.9% in
Q2FY2024, helping the Operating Profit to increase 47% to Rs 786.99 crore.
Provisions and
contingencies rise: The bank has created provisions to Rs 32.53 crore. The loan loss
provisions were reversed amounting to Rs 27.52 crore, while investment
provisions increased to Rs 10.14 crore and standard asset provisions jumped to Rs
49.30 crore.
Effective tax rate declined to 27.0% in Q2FY2025 from 30.0% in Q2FY2024. Net Profit rose by 45%
YoY to Rs 550.92 crore during quarter ended September 2024.
Financial Performance
H1FY2025:
Bank has posted 37%
increase in net profit to Rs 966.41 crore in the half year ended September 2024
(H1FY2025). The net interest income increased 7% to Rs 2805.15 crore, while
non-interest income moved up 17% to Rs 490.18 crore, pushing up net total
income by 9% to Rs 3295.33 crore in H1FY2025. The operating expenses declined 3%
to Rs 1913.67 crore, while provision and contingencies dipped 77% to Rs 15.05
crore, allowing profit before tax to increase 37% to Rs 1366.61 crore in
H1FY2025. The cost-to-income ratio improved to 58.1% in H1FY2025 compared to
65.0% in H1FY2024. An effective tax rate declined to 29.3% in H1FY2025 compared
to 28.9% in H1FY2024. The net profit has increased 37% to Rs 966.41 crore in
H1FY2025.
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J & K Bank: Results
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Particulars
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2409 (3)
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2309 (3)
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Var %
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2409 (6)
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2309 (6)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Interest Earned
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3123.55
|
2764.15
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13
|
6117.93
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5421.23
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13
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11212.37
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9355.11
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20
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Interest Expended
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1687.62
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1430.32
|
18
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3312.78
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2804.10
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18
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6008.68
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4609.83
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30
|
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Net Interest Income
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1435.93
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1333.83
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8
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2805.15
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2617.13
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7
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5203.69
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4745.28
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10
|
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Other Income
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296.08
|
190.31
|
56
|
490.18
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418.58
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17
|
825.48
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756.81
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9
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Net Total Income
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1732.01
|
1524.14
|
14
|
3295.33
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3035.71
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9
|
6029.17
|
5502.09
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10
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Operating Expenses
|
945.02
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989.67
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-5
|
1913.67
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1973.19
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-3
|
3752.29
|
3643.60
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3
|
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Operating Profits
|
786.99
|
534.47
|
47
|
1381.66
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1062.52
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30
|
2276.88
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1858.49
|
23
|
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Provisions &
Contingencies
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32.53
|
-9.94
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PL
|
15.05
|
66.79
|
-77
|
-107.69
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74.13
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LP
|
|
Profit Before Tax
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754.46
|
544.41
|
39
|
1366.61
|
995.73
|
37
|
2384.57
|
1784.36
|
34
|
|
Provision for tax
|
203.54
|
163.34
|
25
|
400.20
|
288.21
|
39
|
617.30
|
586.98
|
5
|
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PAT
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550.92
|
381.07
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45
|
966.41
|
707.52
|
37
|
1767.27
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1197.38
|
48
|
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EPS*(Rs)
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20.0
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13.8
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|
17.6
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12.8
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|
16.0
|
10.9
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Adj BV (Rs)
|
101.6
|
81.1
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|
101.6
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81.1
|
|
92.2
|
69.9
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* Annualized on current equity of
Rs 110.13 crore. Face Value: Rs 1, Figures in Rs crore
PL: Profit to Loss, LP: Loss to
Profit
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Source: Capitaline Corporate
Database
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