J&K Bank on Thursday posted a net profit of Rs 117.68 Cr for the quarter ended December 2015which is up by 12.46 pc up from Rs 104.64 Cr earned during the corresponding quarter of the previous financial year. The Bank announced its financial results for the third quarter today following the approval of its Board of Directors in a meeting held in Mumbai. The advances during the Q3 grew by 5.31 pc to Rs 46718.26 Cr from Rs 44360.84 Cr as recorded during the corresponding period of the previous year, while as the deposits reached Rs 64363.57 Cr as against Rs 63906.34 Cr recorded for the corresponding period of previous year. Net interest Margin (NIM) of the bank for the quarter is3.85 pc while as the NPA Coverage ratio of the Bank is 66.18 pc. The Gross and Net NPA ratios of the Bank during the quarter have been recorded at 6.81 pc and 2.60 percent respectively. Return on Assets (RoA) has is0.65 pc. The net profit for nine months ended December 31, 2015 was recorded at Rs 472.06 Cr as against Rs 508.60 Cr registered during the corresponding period of the previous year. Meanwhile, as the total business of the Bank in Q3 increased to Rs 111081.83 Cr from Rs 108267.18 Cr recorded during the corresponding period of the previous year, the bank’s other income reached Rs 102.72 Cr from 99.82 Cr recorded last year. In the given circumstances wherein entire banking industry especially public sector banks are reeling under the growing volumes of bad loans, we are comparatively better. Banks are really struggling to sail through the tough times, but it’s going to take some more time when the economic situation improves. Quarter on Quarter basis, our Gross NPA’s too have increased to Rs 3339.46 Cr from Rs 3081.68 Cr and consequently we have increased our Provision Coverage Ratio to 66.18 pc from 61.92 pc. Our focus will continue to be on strengthening the balance sheet. Since the worst seems yet to be over, the next 3 to 4 quarters may call for some painful decisions across the banking spectrum of the country. Closely following the progression of things within and outside the state, we are moving forward with caution and prudence.
2015 Kashmir Despatch