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J&K Bank Q1 results: Net profit falls 66% to Rs 7.30 crore

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NEW DELHI: Jammu & Kashmir Bank upon Thursday reported a 65.5 per cent decline around consolidated net profit on Rs 7.30 crore in the three months ended Summer.

It had a consolidated online profit of Rs 21.15 crore in the year-ago period. The bank had placed a net loss of Rs 293.82 crore from the 1 / 4 ended March 2020.

In the June quarter, total income fell to Rs two,160.51 crore from Rs 2,257.42 crore from the same period a year ago, in accordance to a regulatory processing.

On a standalone schedule, the bank’s net profit in the first quarter with the current fiscal stood on Rs 6.50 crore. This is a decline of 70 per cent from a net profit of Rs 21.87 crore reported in the year-ago period.

Standalone total cash flow stood at Rs two,157.94 crore from the latest June quarter while against Rs 2,256.25 crore in the similar period a year ago.

The lender’s gross non-performing assets went up by to 10.73 percent of the gross advances while on June 30, 2020. In the same period last year, it was 8.48 percent. However, net NPAs (Non-Performing Assets) fell to several.05 per cent from some.36 per cent.

The total provisioning and contingencies with regard to June quarter was along at Rs 266.37 crore as against Rs 293.21 crore around year ago quarter.

The bank said that an interest volume to Rs 39.74 lakh for the period by November 3, 2019 to May 4, 2020 upon Tier-II perpetual bonds to the tune of Rs 11.67 crore given to J&K Grameen Bank has not been booked as cash flow. This is due to often the CRAR (Capital to Risk-Weighted Assets Ratio) of the relate bank falling below the lowest regulatory requirement prescribed by simply NABARD/ RBI.

The fascination is non-cumulative in dynamics, it added.

J&K Grameen Bank is an associate associated with J&K Bank.

As every the regulatory norms, Territorial Rural Banks (RRBs) are expected to maintain a minimum CRAR of 9 per cent upon an ongoing basis, consisting of the two Collection 1 and Tier 2 capital.

On often the COVID-19 impact, J&K Bank said that despite the challenges plus present conditions, there examine be any significant influence on the bank’s results plus going concern assumptions.

During the quarter ended Summer, the bank made further COVID-19-related opportunity of Rs 147.50 crore (cumulative provision of Rs 295 crore in terms of RBI guidelines).

“We have focused on strengthening the balance sheet further and I really feel our (June) quarterly quantities are quite encouraging despite trouble due to the pandemic-hit scenario,” the bank’s Chairman and Managing Home R K Chhibber explained.

“Having higher Provision Policy Ratio (PCR) above 80 per cent is a strong warning of the fact that the asset excellent issues have been suitably looked after plus adequately provided for to focus on the future business and to improve the profitability with the bank. That is why we see the Q1 profit more a sign of our envisaged trajectory as compared to an achievement in quantities,” Chhibber noted.

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