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J & K Bank has reported 34% growth in net profit at Rs 638.67 crore
for the quarter ended March 2024 (Q4FY2024). The bank has posted 5% growth in
net interest income (NII), while the core fee income of the bank zoomed 229% in
Q4FY2024. The Net Interest Margin (NIM) of the bank declined to 3.77% in
Q4FY2024 compared to 3.94% in the corresponding quarter of previous year.
On business front, the
bank as has posted 11% growth in business with strong 13% rise in loan book.
The asset quality of the bank has further improved in Q4FY2024. Bank has raised
the credit to deposit ratio to 72.0% at end March 2024 from 70.6% at end March
2023. The CASA ratio of the bank was stable on sequential basis at 50.5% at end
March 2024, while eased from 54.1% at end March 2023.
Asset quality improves: The bank has improved asset
quality in Q4FY2024.
The fresh slippages of
loans stood at Rs 325 crore in Q4FY2024 compared with 278 crore in previous
quarter and Rs 995 crore in the corresponding quarter last year.
The recoveries of NPAs
stood at Rs 172.27 crore, upgradations at Rs 170.6 crore and the write-off of
loans was at Rs 552.37 crore in Q4FY2024.
The standard
restructured loan book of the bank stood at Rs 749 crore end March 2024
compared to Rs 904 crore a quarter ago.
Provision coverage ratio
was steady at 91.58% at end March 2024 compared to 91.61% a quarter ago and
86.20% a year ago.
The capital adequacy
ratio of the bank stood at 15.3% with Tier I ratio at 13.1% at end March 2024.
The risk weighted assets
of the bank has increased 20% YoY to Rs 93029 crore end March 2024,
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Asset Quality
Indicators: J & K Bank
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|
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Mar/24
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Dec/23
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Sep/23
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Jun/23
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Mar/23
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Variation
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QoQ
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YTD
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YoY
|
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Gross NPA (Rs Crore)
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3956.19
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4526.48
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4826.68
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5103.68
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5204.43
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-13
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-22
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-24
|
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Net NPA (Rs Crore)
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736.85
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740.83
|
917.36
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1176.91
|
1334.24
|
-1
|
-37
|
-45
|
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% Gross NPA
|
4.08
|
4.84
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5.26
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5.77
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6.04
|
-76
|
-169
|
-196
|
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% Net NPA
|
0.79
|
0.83
|
1.04
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1.39
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1.62
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-4
|
-60
|
-83
|
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% PCR
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91.58
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91.61
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89.99
|
87.55
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86.20
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-3
|
403
|
538
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% CRAR - Basel III
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15.33
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14.18
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14.53
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14.83
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15.38
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115
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50
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-5
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% CRAR - Tier I -
Basel III
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13.09
|
11.74
|
11.68
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11.87
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12.34
|
135
|
122
|
75
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Double digit business
growth: The
business of the bank has increased 11% YoY to Rs 231757 crore end March 2024,
driven by 13% surge in advances to Rs 96982 crore. Deposits rose 10% to Rs
134775 crore at end March 2024.
CASA deposits steady
sequentially: The CASA deposits of the bank increased 3% YoY to Rs 68073 crore
at end March 2024. The current account deposits increased 6% to Rs 14824 crore,
while saving account deposits rose 2% to Rs 53249 crore end March 2024. The
CASA ratio declined to 50.5% at end March 2024 compared to 54.1% at end March
2023, while remained steady from 50.6% a quarter ago. The term deposits have
increased 19% to Rs 66702 crore end March 2024.
Strong loan growth: Advances growth was
driven by retail loans rising 15% YoY to Rs 37009 crore at end March 2024,
while credit to MSME moved up 12% to Rs 20231 crore at end March 2024. The
corporate credit has jumped 14% to Rs 30320 crore end March 2024. The
agriculture credit declined 1% to Rs 9422 crore end March 2024.
Investment book of the bank rose 3% YoY to Rs 36004 crore at end March 2024. The
SLR book moved up 3% to Rs 29921 crore, while non SLR book declined 11% to Rs
5066 crore at end March 2024. The AFS book dipped 14% to Rs 6934 crore, while
HTM book rose 8% to Rs 29069 crore at end March 2024. The duration of the
overall investment portfolio stood at 3.29 years end March 2024 compared with
2.26 years at end March 2023.
Margins eases: The bank has showed 70
bps YoY jump in cost of deposits to 4.71%, while yield on advances increased 41
bps YoY to 9.48% in Q4FY2024. Thus, the NIM has declined 17 bps YoY and 6 bps
qoq to 3.77% in Q4FY2024.
Branch expansion: The bank has added 3
branches and 3 ATMs in Q4FY2024, taking overall tally to 1004 branches and 1417
ATM`s end March 2024.
Book value of the bank stood at Rs
99.6 per share at end March 2024, while the adjusted book value (net of NNPA
and 10% of restructured advances) was Rs 92.2 per share at end March 2024.
Quarterly Performance
Moderate growth in NII,
as NIM declines: Bank has recorded 16% increase in the interest earned at Rs
2910.18 crore, while interest expenses increased 27% to Rs 1604.06 crore in
Q4FY2024. NII improved 5% to Rs 1306.12 crore in the quarter ended March 2024.
Healthy growth in the
core fee income: Bank has posted strong 229% growth in core fee income to Rs 88
crore, while the treasury income rebounded to Rs 26 crore. However, the other
declined 23% to Rs 111 crore. The overall non-interest income increased 35% to Rs
224.56 crore in the quarter ended March 2024.
Expenses ratio improves:
The operating expenses
of the bank declined 10% to Rs 866.85 crore, as employee expenses dipped 33% to
Rs 483.94 crore in Q4FY2024. Other expenses moved up 56% to Rs 382.91 crore, Cost
to income ratio improved sharply to 56.6% in Q4FY2024 compared with 68.2% in
Q4FY2023, helping the Operating Profit to increase 48% to Rs 663.83 crore.
Provisions and
contingencies decline: The bank has written back provisions of Rs 165.05 crore. The bank
has written back loan loss provisions amounting to Rs 47.41 crore, investment
provisions of Rs 7.37 crore, standard asset provisions of Rs 115.12 crore. The other
provisions were at Rs 4.85 crore.
Effective tax rate declined to 22.9% in Q4FY2024 from 23.8% in Q4FY2023. Net Profit rose by 34%
YoY to Rs 638.67 crore during quarter ended March 2024.
Financial Performance
FY2024:
Bank has posted 48%
increase in net profit to Rs 1767.27 crore in the year ended March 2024
(FY2024). The net interest income increased 10% to Rs 5203.69 crore, while
non-interest income moved up 9% to Rs 825.48 crore, pushing up net total income
by 10% to Rs 6029.17 crore in FY2024. The operating expenses increased 3% to Rs
3752.29 crore, while provision and contingencies were written back amounting to
Rs 107.69 crore, allowing profit before tax to increase 34% to Rs 2384.57 crore
in FY2024. The cost-to-income ratio improved to 62.2% in FY2024 compared to
66.2% in FY2023. An effective tax rate declined to 25.9% in FY2024 compared to
32.9% in FY2023. The net profit has increased 48% to Rs 1767.27 crore in
FY2024.
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J & K Bank: Results
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Particulars
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2403 (3)
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2303 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Interest Earned
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2910.18
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2512.12
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16
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11212.37
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9355.11
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20
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Interest Expended
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1604.06
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1262.57
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27
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6008.68
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4609.83
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30
|
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Net Interest Income
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1306.12
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1249.55
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5
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5203.69
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4745.28
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10
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Other Income
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224.56
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166.28
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35
|
825.48
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756.81
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9
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Net Total Income
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1530.68
|
1415.83
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8
|
6029.17
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5502.09
|
10
|
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Operating Expenses
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866.85
|
966.23
|
-10
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3752.29
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3643.60
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3
|
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Operating Profits
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663.83
|
449.60
|
48
|
2276.88
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1858.49
|
23
|
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Provisions &
Contingencies
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-165.05
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-175.21
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-6
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-107.69
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74.13
|
-245
|
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Profit Before Tax
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828.88
|
624.81
|
33
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2384.57
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1784.36
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34
|
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EO
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
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PBT after EO
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828.88
|
624.81
|
33
|
2384.57
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1784.36
|
34
|
|
Provision for tax
|
190.21
|
148.48
|
28
|
617.30
|
586.98
|
5
|
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PAT
|
638.67
|
476.33
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34
|
1767.27
|
1197.38
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48
|
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EPS*(Rs)
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23.2
|
17.3
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|
16.0
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10.9
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Adj BV (Rs)
|
92.2
|
69.9
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92.2
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69.9
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* Annualized on current equity of
Rs 110.13 crore. Face Value: Rs 1, Figures in Rs crore
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Source: Capitaline Corporate
Database
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