Tarun Upadhyay
Jammu, Jan 21: Amitava Chatterjee, MD & CEO Jammu & Kashmir Bank said today that the financial result of the bank for the October-December quarter (Q3 FY 2025) is reflective of the fact that bank is on right trajectory with bright future.
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In the Q3 result the net profit of the bank surged by 26.2% year-on-year (YoY) to Rs 531.51 Cr compared to Rs 421.08 Cr reported during the same period last fiscal.
Amitava, who assumed office last December, in an interview with Excelsior News- digital platform of Daily Excelsior- said the data and functioning post 2020 shows a marked difference with huge improvement
“In 2020, the bank went into loss but today we are at threshold of Rs 2000 Cr profit. Earlier NPA- Non Performing Assets- were 16% but now they are just 4%, In fact, the net NPA is less than 1%. There are very few banks with this NPA ratio, ” said the CEO
Prior to assuming charge as CEO J&K Bank, Amitava held key position in SBI as DMD Commercial Clients Group (CCG) and also headed banking circles of SBI.
Reflecting on the banking health of the bank, he said, J&K Bank is well positioned as far as banking parameters are concerned. “The Capital adequacy ratio of bank is 15%, though the regulatory requirement is 11.5% . Net Interest Margin (NIM)- which measures the profitability of a bank -in comparison to peer banks is quite good. The bank is at a steady and definite trajectory and it will show good results.”
The MD said the bank has health buffer of capital adequacy which gives it option of diversifying growth in advances and an opportunity to grow.
Amitava acknowledged competition in banking sector and rules out complacency but added the fact remains that J&K Bank is in strong position in this region primarily due to loyalty of citizens and support of promoters-UT Government- which, he said puts bank at a strong position.
J&K Bank is primarily concentrated and focused in J&K and Ladakh , though, it has presence in 20 States and UT. The MD said the pan-India presence brings forth growth potential and efforts are underway to tap it by branding bank as nimble footed with good customer service. He said: “there is definitely pan-India opportunity and here I can add value addition .”
The major turnout in J&K Bank has come out with focus on reducing NPA and this, the MD said, will continue. Amitava said a key fact is that most of the NPAs of the bank are not in J&K as repaying tendency is better here but in other parts of the country and the focus in on their recovery.
The CEO said bank will continue to focus on extending financial help to agriculture and MSME in J&K and there has been 10% growth in this sector. He added that as far as corporate advances are concerned, bank will evaluate quality advances .
As Central Government is pushing major industrial and infrastructure growth in J&K, Amitava said it brings in lot of potential in corporate advances and the bank would like to have participation in every major project in J&K and Ladakh
“The investors who are coming from outside J&K have their own banking connections . So bank has to be pro-active, but I would like to have my share in such investment as ‘right’. So we will focus on this sector,” said Amitava.
Technology is playing huge role in banking sector and in the past not much investment has been made in it in J&K Bank. Though, off late significant steps are being taken.
” In banking you can survive only through technology and growth . We want J&K Bank to be efficient and nimble footed institution and it can happen with technology,” said Amitava
The MD & CEO said the focus would be on CASA deposits- funds deposited into a bank’s current and savings account- and to regain customers which we have lost.