J&K Net Profit Down By 57%
Nutan Gupta / 13 Aug 2014
State-run Jammu and Kashmir bank announced its financial results for the quarter ended June 2014. We give you the highlights of the banks performance. The bank announced its financial results during the trading hours. The shares of the bank closed down by 5% from its previous close after reporting weak set of numbers.
The net profit of the bank tanked by 57.76% on yearly basis to Rs 130.05 crore for Q1FY15 against Rs 307.92 crore in the corresponding quarter of previous year. This is despite the increase in the other income by 41.8%. The reason net profit of the bank declined in net interest income and huge growth in provisions and contingencies.
The bank reported decline in the net interest income (NII) by 2.62% on yearly basis to Rs 637.70 crore against Rs 654.89 crore for Q1FY14. Bank witnessed huge growth in provisions and contingencies almost 6 times to Rs 246.7 crore for Q1FY15 compared to Rs 36.2 crore for Q1FY14. Tax expenses of the bank declined by 48.3% to Rs 70.7 crore against Rs 136.84 crore in the corresponding quarter of previous year.
The asset quality of the bank deteriorated considerably on sequnetial basis. The gross non-performing assets (NPA) and net NPA increased drastically by 16 times and 10 times for the quarter ended June 2014 compared to the previous quarter. As a proportion to advances gross NPA and net NPA stood at 4.16% and 2.18% for Q1FY15 up by 250 basis points and 196 basis points respectively in the same period.
The shares of the bank is currently trading at Rs 1498 which is 1.25x its book value.
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