JAMMU, Sept 6: The J&K Bank has become top performing bank as its share price has gained by more than 107 per cent in last one year. SBI along with J&K Bank, is the only other bank that has doubled its performance.
Dalal Street Investment Journal, a financial magazine, reported this in its latest on-line edition on Sept 5, 2021. According to the journal, assessed on the basis of one year returns on stocks, J&K Bank has topped the list with 107.93 % as one year returns, out of the country’s 18 banks, followed by SBI with 102.39 % and Indian Bank 94.27 %.
“J&K Bank has literally led the pack this time. In one of the most visible acknowledgements of bank’s improving performance, the markets have responded positively that too, in a sustained manner. The share price even zoomed past Rs 40 when the bank announced its annual financial results (2020-21) in June. Since then, it has maintained its upward trend,” a market observer said.
“ I think the timely issue of JK Bank’s Employees Stock Purchase Scheme-2021, which according to the bank has already over subscribed, will boost the stake holders’ confidence further to reflect positively upon the Bank’s stock price. Going forward, it surely is a stock to watch,” he added.
It is pertinent to mention here that exhibiting sharp turn around in its fortunes, J&K Bank has been performing exceptionally well during the last five quarters despite the advent of Covid-19 pandemic, leaving no society immune to its unprecedented economic disruptions.
Commenting upon the Report, another economic analyst said, “ To my understanding, with Bank’s net NPA less than 3 %, Provision Coverage Ratio (PCR) of 82 %, increased transparency in the recruitment, coupled with cost cutting are the factors that have definitely renewed the organizational momentum. Moreover, Bank’s performance during Govt’s ‘Back to Village’ program has also been outstanding where thousands of young entrepreneurs were financed by the Bank, out of which 35 % are women. This has enhanced the Bank’s image. Also, the agreed upon capital infusion of Rs 500 crore from the J&K Govt will push the fortunes of the Bank,” he added.