Srinagar, Jan 30 (PTI) Jammu and Kashmir Bank has posted over 19 per cent rise in net profit at Rs 139.99 crore for the third quarter of 2009-10 on the back of high non-interest income.
The Bank had registered a net profit of Rs 120.67 crore during the same quarter last financial year, a J&K Bank spokesman said today. The bank's board of directors at a meeting held yesterday reviewed the financial results for the quarter ended December 2009.
The operating profits of the bank increased by 31 per cent during the same period.
Income earned by the bank other than interest doubled to Rs 95.81 crore during the quarter under review from Rs 39.39 crore earned in the quarter ended December 2008. The boost in the income has been primarily by the earnings on commission or exchange and profit on investments, he added.
The bad loans of the bank decreased by almost 100 crore compared to March 2009. The J&K Bank now has coverage of its NPAs at 88 per cent, is well above the RBI stipulation of 70 per cent which Banks have to do by October this year. It indicates the stability of the bank, he said.
On the quarterly results, J&K Chairman Haseeb A Drabu said, "This has been a difficult quarter as the macro-economic environment has become adverse.
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"We have outperformed the market, because our balanced policy approach that aims to achieve our short-term targets while keeping in mind our long-term objectives as the leading financial organisation of the state."
"That is one of the reasons why we have maintained a steady focus on the development of all the segments of local economy through enhanced credit deployment and smooth disbursement mechanisms in J&K," Drabu said.
"We are a commercial bank but we are also a developmental organisation of our state. Under the JK specific lending, the advance portfolio in the J&K state has seen a spectacular leap from mere Rs 1,200 crore to Rs 12,000 crore in just four years. Besides, the credit-deposit ratio has risen from 20 per cent to 65 per cent," Drabu said.
He said the total Balance Sheet size of the bank as on December, 2009 increased to Rs 39,204 crore by 11 per cent from Rs 35,282 crore a year ago.
The bank registered a net profit of Rs 392.33 crore for the nine months ended December 2009, up by 18 per cent compared to net profit of Rs 331.16 crore of the corresponding period of the previous financial year.