J&K Bank late Monday announced its quarterly (Q4) and yearly results for the financial year 2019-20, after its Board of Directors adopted the audited numbers of the Bank in its meeting.
Owing to a substantial increase in provisions to the tune of Rs 2523 Cr made towards bad and doubtful assets against Rs 1053 Cr made during the previous year, the bank registered a net loss of Rs 1139.41 Cr for the FY ended March 2020, a statement received by Ziraat Times late Monday said.
The operating profit of the bank before provisioning stood at Rs 1525.05 cr.
Regarding the bank’s focus areas, he further said, “Amid all the uncertainty around, we kept a sustained focus on strengthening our balance-sheet. Taking cognizance of the continued pressure on asset quality due to COVID-19 and its lasting impact, we increased our NPA Coverage ratio by more than 14 % from 64.30 % to 78.59 % while bringing down our net NPAs considerably from 4.89 % to 3.48 %”, adding that the NIM at 4.10 % was among the best in the industry and the cost of deposits were brought to 4.73% from 4.98% by improving the CASA base to 53.66 %.
“Liability franchise of the bank is improving with significant growth in CASA component. Saving bank deposits recorded growth of 18 % on YoY basis”, he said.
“Notably, the loan-book of UTs of J&K and Ladakh have witnessed 13 % growth thereby re-orienting the lending composition of the bank with J&K and Ladakh getting 63 % of total advances in country”, the CMD said while explaining the bank’s studied shift from corporate to retail lending.
Acknowledging the government’s support throughout the history of bank especially since last year, the Chairman said, “As the promoter and majority stakeholder of J&K Bank, the UT Government of J&K has remained ever committed in its support towards the bank and timely capital infusions in recent times glaringly exemplify the same. The infusions – most recent being the Rs 500 Cr capital infused during Q4 of FY 2020 – have played a significant role in maintaining the bank’s Capital Adequacy Ratio (CAR) as per Basel-III requirements besides boosting the confidence of all other stakeholders in the bank.”
Pertinently, under the Central Government’s Guaranteed Emergency Credit Line (GECL) scheme, the Bank has so far disbursed an amount of Rs 1068.74 Cr to 31069 borrowers.
Pertinently, under the Central Government’s Guaranteed Emergency Credit Line (GECL) scheme, the Bank has so far disbursed an amount of Rs 1068.74 Cr to 31069 borrowers. (ZIRAAT TIMES)
