J&K Bank earns net profit of Rs. 252 crores for half year ended September 30, 2009

Srinagar, November 1, 2009: Despite adverse market conditions following global recession, J&K Bank has posted a net profit of Rs 134.27 crores for the quarter ended September 2009, which is up by 16% compared to Rs 115.92 crores earned during the corresponding quarter of previous financial year.

With this the profits for the half-year ended September 2009 increased by 20% to Rs 252.33 crores from Rs 210.48 crores recorded during the corresponding half of previous financial year.

The bank announced its reviewed financial results for the quarter and half year ended Sep, 2009, following the approval of its Board of Directors in a meeting held in Srinagar on Oct 30, 2009.

Commenting on the financial results, Chairman and CE of J&K Bank Dr Haseeb Drabu said, “Our healthy performance speaks itself about the kind of result-oriented thinking and operational efforts that are being invested in our bank”.

Dr Haseeb Drabu attributed a good measure of growth in profits to the recent initiatives that bank took to hedge the local economy from the adverse impact of the global recession. “The initiatives have not only resulted in effecting a turnaround in these export-oriented segments of economy, to an extent, but have actually reassured the associated people of the support of J&K Bank that is there to safeguard their interests and empower them financially”, he emphasized.

Dr Drabu further said, “Keeping focus on policy of JK specific lending, out of the total advances portfolio of Rs 21282.33 crores, we have given loans to the tune of over Rs 11000 crores in the J&K state itself, which has yielded us the results for everyone to see”.

“Our CD Ratio in the state has gone up to 55%. The bank has registered a marked improvement in NPA Coverage Ratio, which stood on Sep, 2009 at 75.55 % from 58.43 % a year ago”, Dr Drabu added.

The Operating Profit for the half year ended Sep, 2009 increased by 30 % Y on Y to Rs 478.88 crores from Rs 369.07 crores. Operating Income (Net Interest Income + Other Income) for the current half year was Rs. 735.88 crores as against Rs. 593.49 crores for the corresponding period of last fiscal registering an increase of 24 %.


(This is a press release from J&K Bank)