• Bank decided to share these historic profits with shareholders
• Customers can update their bank app, and use QR scanner
• More than 80 percent of the govt schemes financed by J&K Bank
• At high volume transitions ATMs, guards will be deputed
Srinagar, May 06: The Managing Director & CEO of Jammu and Kashmir Bank, BaldevPrakash, announced on Monday that J&K Bank has achieved remarkable financial growth for the fiscal year 2023-2024, marking the highest in its 85-year history.
Addressing the J&K Bank Corporate Headquarters, Prakash revealed that the bank’s annual net profit surged by an impressive 48% to reach a historic high of Rs 1767 crore. This milestone profit, he stated, would be shared with the bank’s shareholders, highlighting the institution’s commitment to its stakeholders.
The CEO and MD J&K Bank PrakashBaldevwas flanked by Bank’s Executive Director Sudhir Gupta, General Manager Syed RaisMaqbool.
Prakash emphasised the significance of this achievement, stating, “The bank has recorded a staggering profit of 1767 crore rupees, marking a significant milestone in its 85-year history. I thank the board management and stakeholders for their support in achieving this record-breaking profit.”
Prakash said this is yet another record-breaking performance, J&K Bank has posted a net profit of Rs1767 Cr for the fiscal 2023-24 – a remarkable improvement of 48% over the previous high of Rs. 1197 Crore achieved last year.
In addition to the impressive profits, Prakash highlighted the bank’s robust operational metrics, including a net interest margin (NIM) of 3.92%, capital adequacy ratio (CAR) exceeding 15%, and a gross NPA below 4%, showcasing the bank’s financial soundness and resilience.
“The Bank’s net profit for the Q4FY23-24 also rose by 34% to Rs 638.67 Cr when compared to Rs 476.33 Cr recorded last financial year. This also is a historic high for quarterly profits,” he said.
While highlighting the performance of the bank, the previous highest-ever profit of Rs. 1197 Crore achieved only last year, the Bank’s net profit surged by 48% to record a new high of Rs 1767 Cr.
“In line with its promise of meeting annual guidance, the Bank’s notable metrics include 3.92% net interest margin (NIM), over 15% capital adequacy ratio (CAR), around 4% gross NPA and below 1% net NPA – a reflection of strong operating results reinforcing further financial soundness and resilience to the balance-sheet,” he said.
CEO J&K Prakash said that Bank’s total revenue grew by 19% to cross the Rs 12000 Cr mark while the net interest margin (NIM) stood at 3.92%.
“Bank’s Yield on Advances rose annually to 9.54% from 8.91%, while the Return on Assets (RoA) reached quite healthy levels at 1.22% – crossing the 1% barrier after a decade – as against 0.89% recorded last fiscal,” he said.
Prakash said they are thrilled to report such stellar annual numbers, which reflect our unwavering commitment to excellence and prudent financial management.
“Our record-breaking annual profit and impressive financial metrics reflects the changing culture of the Bank where delivering a streak of new records period after period is becoming a habitIt also underscores the Bank’s resilience and strategic prowess in navigating dynamic market conditions,” he said.
Prakash said these results also reflects the dedication of our staff, the unwavering trust of our customers, and the continued support of our major shareholders i.e. UT Government.”
Prakash said the highest ever annual profit was reported by the Bank, almost two months after Prime Minister NarendraModi said that his government saved J&K Bank from bankruptcy. During his rally in Srinagar then, Modi had alleged that J&K Bank was a “big victim of nepotism and corruption” under previous governments.
“There were some governance issues in the Bank in the past and the capital of Rs 1000 crore was granted by the union government to the J&K Bank.”
He said that ( Rs 1000 crore capital amount) was very critical because capital adequacy ratio of the bank has to be upto minimum expectations as per the regulatory guidelines,” Prakash said when asked about PM’s statement about the bank.
He said there were some governance issues earlier and because of that it had come under the scanner of the Anti-Corruption Bureau. We have taken very concrete steps to ensure that there are no governance and compliance issues.
“The policies of the Bank are well defined and well institutionalized now and we expect that with the establishment of the state of art technology and as well as the best policies, we will be able to handle all these issues in a more effective manner,” the MD asserted.
Prakash said it is a moment of pride for the bank that achieved the highest net profit in the history of the bank.
Sharing financial details, Prakash said J&K Bank’s total deposits rose 10.44 % YoY to Rs 134774.89 Cr as of March 31, 2024, from Rs 122037.74 Cr recorded a year ago, while as the Net Advances of the Bank stood at Rs 93762.51 Cr in Q4FY24 rising up 14 % YoY from Rs 82285.45 Cr in Q4FY23.
On a sequential basis (QoQ), deposits grew by 5% and advances increased by 4.5%. Meanwhile, the Bank’s CASA Ratio at 50.51% as of March 31, 2024, despite industry-wide pressures on the liability side, is among the best in the industry.
“Moreover, the Bank’s deposit growth, in line with the industry average of 11%, and advances increasing by approximately 14%, highlight its robust growth trajectory and market leadership in its core operational geography”, he said.
MD and CEO J&K Bank said that the bank is strengthening its asset quality further, the Bank has brought down the Gross NPA (GNPA) to 4.08 %, while the net NPA is below 1 percent at 0.79%.
“Our strong asset quality metrics underscore our methodical approach to risk management and our unwavering focus on maintaining a healthy balance sheet,” he said.
While exceeding our annual guidance, these results validate our efforts to build a resilient and sustainable banking franchise. With a Provision Coverage Ratio (PCR) at 91.58%, J&K Bank continues to demonstrate its commitment to prudential provisioning and risk mitigation.”
He said that with adequate availability of capital to support its business growth while maintaining the regulatory buffer comfortably, the Bank is well cushioned with its Capital Adequacy Ratio at 15.33 % as on March, 2024.
“J&K Bank’s transformative projects are progressing smoothly, with a focus on enhancing digital initiatives and ensuring zero-disruption of services, even during high-demand festive occasions. The bank has improved its overall customer services and launched innovative digital customer journeys to enhance the banking experience.”
Prakash said that internally, our ESG efforts have led to the implementation of e-office across the organization, drastically reducing paper usage. However, remaining cognizant of environmental concerns, we continue to engage in sensible lending practices contributing to sustainability and enhanced operational efficiency, he said.
“We continue to invest in our workforce through HR initiatives focused on re-skilling and up-skilling, creating change champions prepared to meet future challenges,” he said.
Regarding Corporate Social Responsibility, Prakash said that the Bank also contributes to the overall social good through its Corporate Social Responsibility (CSR) programs.
“With an annual spend of around Rs 19 Cr under our CSR programs during FY 2023-24, we have supported initiatives aimed at empowering marginalized communities, promoting eco-friendly measures, and providing assistance to persons with disabilities besides supporting programs focussed on skill development of youth.”
He said on the back of improved profitability, such initiatives are bound to witness a further boost owing to the enhanced budgetary allocations.
“J&K Bank remains steadfast in its commitment to extend employment benefits to thousands of youth, with a special focus on fostering entrepreneurship and driving socio-economic development in the region. We are proud to be at the forefront of employment-generating initiatives,” Prakash said.
On ATM guards issue, MD and CEO J&K Bank said that those ATM’s where there are high volumes of transitions, apart from CCTV surveillance, guards will be deployed to these various ATM’s.
He also urged customers to update their applications of J&K Bank as the bank has recently added a new feature of QR Scanners to its features. Customers can now directly scan and pay, receive payments, the CEO added.
He said banks need to popularize these features across our areas of operations so that more and more people become beneficiaries of our state-of-the-art digital offerings.
“Feedback is vital in our pursuit of excellence. The customer survey feature allows us to understand our users’ preferences and modify our services to align with their tastes accordingly. It’s a win-win for both the Bank and our valued customers,” Prakash said.
