J&K Bank earns net profit of Rs. 252 crores for half year ended September 30, 2009
Meanwhile, driven by profit on revaluation/sale of investments, the other income earned by the bank has improved considerably during the quarter by 147% to 101.19 crores from Rs 41.05 Crores.
The Trading Income for the current half-year steeply rose from Rs 22.34 crores to Rs 119.03 crores, the main components of which are Rs 43.32 crores earned on Revaluation of Investments and Rs 10 crores on Debt Securities.
The Return on Assets for the current quarter has improved to 1.44 % (annualized) compared to 1.32 % for the corresponding quarter of last financial year. The bank has been able to maintain its margins around the 3 % level and the Net Interest Margins ratio for the half year ended September, 2009 is at 3.01 % (annualized). For the same period the Bank has been able to further bring down its Cost to Income ratio to 34.92 % from 37.81 % for the corresponding period of last fiscal.
Leveraging the technology efficiently, the Bank has been able to further bring down its Cost to Income ratio to 34.92 % from 37.81 % for the corresponding period of last fiscal.
The total Balance Sheet size of the bank as on Sep, 2009 has increased to Rs 37420.60 crores increasing by 6 % from Rs 35207.76 a year ago. For the same period, the Investments of the bank grew by 25 % Y on Y to Rs 12368.09 crores. Of the total investments 71 % are in the HTM category, 29 % in the AFS category and rest in the HFT category. The SLR securities form 79 % of the total Investments. Net Worth of the Bank stood at Rs. 2875.19 crore as on Sep 30, 2009 compared to Rs. 2519.40 crore a year earlier, registering a growth of 14.12 %.
As far as asset quality is concerned, the Gross NPAs and the Net NPAs as proportion of Gross and Net Advances as on September, 2009 came down to 2.23 % and 0.55 % respectively from 2.29 % and 0.96 % a year ago. The NPA Coverage Ratio as on September, 2009 has improved to 75.55 % from 58.43 % a year ago.
The Capital Adequacy Ratio (CAR) under the Basel I norms stood at 13.98 % as on Sep 30, 2009 out of which Tier I capital amounted to 13.39 %. The CAR under the Basel II norms was at 15.23 % as on Sep, 2009 with Tier I capital amounting to 14.59 %.
Meanwhile, Dr. Drabu while commenting on the low credit growth said that the fall in credit growth was due to slack in credit demand. “The impact of global meltdown squeezed the capacity of expansion of manufacturing corporates,” he said and revealed that further sanctions to the tune of Rs 4009.59 crore are yet to be disbursed by the bank.
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(This is a press release from J&K Bank)
