Jammu and Kashmir Bank stock in focus after record profit, 215% dividend announcement | 6 key points

The shares of Jammu and Kashmir Bank (J&K Bank) are likely to remain in focus during the trading session on Monday, May 6, as the private lender declared solid financial results over the weekend. Apart from posting a record profit for the fiscal year 2023-24 (FY24), JK Bank also announced a dividend of 215%.

The bank’s standalone net profit in FY24 peaked to an all-time high of ₹1,767 crore, higher by 48% as compared to the previous record of 1,197 crore in FY23, as per the results declared on Saturday, May 4.

The lender’s board of directors also declared a dividend of 215% or ₹2.15 per equity share, which is subject to the approval of shareholders.

J&K Bank stock in focus: Here are six key points

• In the last trading session on May 3, the bank’s shares settled at ₹139.35 on the NSE, up 0.5% as against the previous day’s close. Year-to-date, the stock has gained by 11.7%.

• The stock has emerged as a multibagger in the last one-year period, with its value growing by a massive 150%.

• Apart from declaring its results for the year-ended March 31, 2024, the bank on May 4 also declared its results for the final quarter of the fiscal. The standalone net profit in Q4FY24 increased by 34% year-on-year (YoY) to ₹639 crore, as against ₹476 crore in Q4FY23.

• The net interest income (NII) in the March 2024 quarter increased by 4% YoY to ₹1,306 crore, as against ₹1,249 crore in the year-ago period. The NII during the entire FY24 period came in at ₹5,204 crore, higher by 9% from ₹4,746 crore in FY23.

• The bank’s gross non-performing assets (NPA) ratio improved to 4.08% in Q4FY24, from 6.04% in the year-ago quarter. In the same period, the net NPA ratio declined to 0.79% from 1.62%.

• The bank's total deposits increased by 10.4% YoY to ₹1.34 lakh crore as of March 31, 2024, whereas net advances surged by 14% YoY to ₹93,763 crore.

Notably, J&K Bank is the largest private lender operating in the Union territory of Jammu & Kashmir. It has been operating in the frontier region since 1939.