Srinagar, May 12: J&K Bank today posted net profit of Rs 208.12 crores for Q4 ended March 2012 which is up by 50.20 % from Rs 138.56 crores recorded for the corresponding period of the last financial year.
Surpassing its set target for the FY 2011-12, J&K Bank registered net profit of Rs 803.25 crores for the financial year 2011-12 against net profit of Rs 615.20 crores for the previous year thereby registering growth of 31 % (YOY). The Board recommended an all time high dividend of 335 % subject to the approval of shareholders at the ensuing Annual General Meeting.
The audited financial results for the fourth quarter ended March 2012 were announced following the approval of Bank’s Board of Directors in their meeting held at Corporate Headquarters here today.
The Business of the Bank registered an increase of Rs. 15549 crores during the year and reached Rs 86419 crores from Rs. 70870 crores thus recording a growth of 22%. Deposits during the period increased by 19 % to Rs 53342 crore against Rs. 44670 crores for the previous financial year.
The Loans and Advances at Rs 33077 crore recorded growth of 26% in comparison to Rs 26194 crores as at the end of March-2011.
Commenting on the results, Chairman & CEO Mushtaq Ahmad said “we are right on the track and within our planned trajectory towards celebrating our Platinum Jubilee next financial year”.
“Besides, the very sluggishly recovering economic scenario at the national and international levels further illuminates its encouraging effect. Invested with confidence, we hope to meet mid-way all the upcoming challenges at home and outside,” he said.
“However, we would be more thorough and reflective as we move ahead to achieve our business target of one lac crores and profit of one thousand crore by the end of current financial year”, he added.
In his brief remarks on the Bank’s Platinum Jubilee next year the Chairman stated, “It is a strong call of trust for the Bank and we would exclusively focus on adding value to the immense financial and emotional equity that all our stake holders have invested us with.”
The operating profit of the Bank during this period has increased from Rs. 1149.49 crores to Rs 1370.33 crores.
All significant ratios have registered satisfactory improvement during the year.
The Net worth at Rs. 4093.20 crore (up by 17.66%), Earnings per share at Rs. 165.69 (up by 31%) and Net Interest Margin (NIM) at 3.84% (up by 22 bps), return on assets has gone up from 1.38% to 1.56% while as yield on advances has increased from 10.86% to 12.12% reflect strong fundamentals of the Bank.
As a result of various measures taken by the Bank the net NPA ratio declined to 0.15% against 0.20% for the previous year.
Against the regulatory norm of 70%, the Provision Coverage Ratio (PCR) of the Bank is at 93.76% for the year ended March 2012.
Besides, the Chairman said, following the Business Correspondent (BC) model we will be persistently following up on the programme of financial inclusion by extending basic banking services through our large network of Khidmat Centers across the state, thereby penetrating deeper and wider into our areas of operation.
Further, he said, “As a measure to counter the growing menace of unemployment, the Bank has taken a lead role in implementing the Government sponsored Sher-i-Kashmir Employment and Welfare Programme for Youth (SKEWPY). To achieve the objective as per the requirements of the scheme, the Bank’s special task force is monitoring the implementation of scheme across the state.”
During the year 2011-12 the Bank opened 55 new Business Units (B/U) thereby increasing its branch network to 603 while as 147 ATMs were commissioned taking their number to 508.