Jammu and Kashmir Bank stock has clocked strong gains during the last few trading sessions after the company reported a strong set of numbers for the quarter ended March 2021.
For the full year 2020-21, the bank posted a net profit of Rs 432.12 crore compared to a net loss of Rs 1,139.41 crore in 2019-20.
J&K Bank share rose 13 per cent to hit a 52-week high of Rs 44.35 on the BSE in intra-day trade today. It opened 10.3 per cent higher at Rs 43.40 against the previous close of Rs 39.35. Market cap of the firm rose to Rs 2,921.58 crore.
As per the share price history, J&K Bank's share on BSE closed at Rs 29.3 on May 31, 2021. It hit an intraday high of Rs 44.35 in today's morning session. In a week, the stock has delivered 51 per cent returns.
The share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages. It has gained 159 per cent in the last 12 months and risen 78 per cent since the beginning of this year.
The company reported a net profit of Rs 316 crore for the quarter ended March 2021. The company informed that it is the highest quarterly profit since March 2014. The lender had posted a net loss of Rs 294.10 crore in the corresponding quarter of the previous financial year.
Net interest income increased to Rs 3,770.78 crore during the year from Rs 3,706.67 crore, while the net interest margin for the year stood at 3.64 per cent.
The bank's asset quality improved with the gross non-performing assets falling to 9.67 per cent of the gross advances as of March 31, 2021, from 10.97 per cent by March 2020. Net NPAs or bad loans came down to 2.95 per cent from 3.48 per cent.
"It is because of the war-footing efforts put in at all levels of operations by the staff soon after Honourable Supreme Court withdrew its direction to banks to withhold the classification of accounts as NPAs," said R K Chhibber, Chairman & Managing Director, J&K Bank.
"Notably, we were able to restrict our slippages to below Rs 1000 Cr as against the proforma NPA figure of about Rs 4600 Cr disclosed in our Q3 results. Despite getting a short window of just 7 days post revocation of earlier directions by the honorable Supreme Court, we successfully conformed with the assertions and assurances given to the market," he said.
"However, remaining alert to any fresh slippages while making further necessary provisions, we shall remain guided by prudence and long-term assessment of the current situation," he noted.
"In this regard, directions have already been issued to all the operative levels for implementing necessary corrective measures, including a more robust and proactive performance monitoring system with a focus on maintenance of asset quality", he added.
The CASA ratio of the bank during the quarter has improved to 56.84% as against 53.66% recorded as on March 31, 2020, whereas, the ratio stood at 58% for the UT of J&K and 71% for the Ladakh UT.
Recently, the bank said its board has approved the proposal to raise up to Rs 150 crore by allotting shares to employees.
"The board of directors in its meeting on June 18, 2021, approved the issuance and allotment of up to 7.5 crore shares of the face value of Re 1 each aggregating up to Rs 150 crore (including premium) in one or more tranches to eligible employees of the bank," J&K Bank said in a regulatory filing on Friday.
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