J&K Bank tumbles more than 18 per cent after FY17 result guidance
DSIJ Intelligence / 13 Oct 2016
The share price of Jammu and Kashmir Bank (J&K Bank) tumbled by 18.37 per cent on bourses in early trades and is trading at Rs 74.7 on an intraday basis. According to media reports the bank is likely to post losses for next couple of quarters and FY17
The share price of Jammu and Kashmir Bank (J&K Bank) tumbled by 18.37 per cent on bourses in early trades and is trading at Rs 74.7 on an intraday basis. According to media reports the bank is likely to post losses for next couple of quarters and FY17. Its consolidation of balance sheet may take four to six quarters. J&K Bank will not declare dividend for next two years and all exposures in J&K state are under SMA-2 category. J&K Bank is expecting restructuring of Rs 10000 crore of loans in J&K.
On financial front, J&K Bank’s net profit dropped 85.6 per cent to Rs 22.88 crore in Q1FY17 on a yearly basis. The bank’s total income has declined by 5.26 per cent to Rs 1789 crore in Q1FY17 as compared to same period in previous fiscal.
On asset quality front, J&K Bank’s gross NPA stood at 9.31 per cent amounting to Rs 4715 crore in Q1FY17 against 6.63 per cent to Rs 2995 crore in Q1FY16. The bank’s net NPA increased by 6.19 per cent to Rs 3023 crore in Q1FY17 against net NPA of 2.95 per cent to Rs 1277 crore in Q1FY16.