J&K Bank reports over 12% rise in advances during fourth quarter

J&K Bank has reported 11.96% year-over-year growth in its total business for the fourth quarter of fiscal year 2024 at ₹2.28 lakh crore, according to an exchange filing posted by the lender.

The bank witnessed a 12.67% y-o-y rise in its gross advances to ₹97,072.47 crore during the fourth quarter. Total deposits increased 10.44% to ₹1.34 lakh crore in the period. The lender’s current account savings account (CASA) deposits increased 3.11% on a y-o-y basis to ₹68,072.94 crore during the fourth quarter.

The bank recently announced to stock exchanges that its chief financial officer Pratik D. Punjabi has tendered his resignation on April 5 to explore professional opportunities outside the bank. ‘While the process of appointing CFO is likely to be completed in next two weeks, the Bank has identified Mr. Fayaz Ahmad Ganai as “officer in-charge” to take over from Mr. Pratik D Punjabi from April 05, 2024 (A.N.) onwards,” the bank said in the statement.

The bank witnessed a 35% y-o-y increase in its net profit during the third quarter at ₹421.08 crore. J&K Bank also witnessed a significant improvement in its asset quality.

The lender’s net interest income (NII) increased 2% y-o-y to ₹1,280.44 crore while its operating profit stood at ₹550.54 crore. The Bank’s net interest margins (NIM) for the quarter stood at 3.83%.

Gross non-performing assets (NPA) ratio of the bank dropped by 42 basis points sequentially to 4.84%. Net NPAs reduced to 0.83%. At the same time, provision coverage ratio (PCR) of the bank vastly improved by 678 bps annually to 91.61% for the third quarter.

During the third quarter, the bank’s net advances grew 16% y-o-y at ₹89,752.36 crore while deposits grew 9% to ₹1.28 lakh crore.

Shares of J&K Bank closed 1.91% lower on Monday. The stock has returned over 168% in the last one year as compared to 94.95% gains registered by the Nifty PSU Bank index.