Jammu and Kashmir Bank Q3 net profit rises 79% to Rs 311 cr; NII up 27%

Jammu and Kashmir Bank on Monday said its December quarter net profit rose 79 per cent to Rs 311.59 crore.

The net profit rose to Rs 311.59 crore as against Rs 173.95 crore registered for the same period last fiscal, a bank spokesperson said during its December quarter results announcement.

The bank was well on its trajectory to meet annual profitability targets, the spokesperson added.

"The bank's profit for nine months is up 85 per cent to Rs 721.05 crore from Rs 389.36 crore clocked during nine months of the last fiscal," he said.

Its Net Interest Income (NII) increased 27 per cent to Rs 1,257.38 crore for the October-December quarter as compared to Rs 993.30 crore reported previous year. It posted a growth of 19 per cent Year-on-Year (Y-o-Y) for nine months to Rs 3,495.73 crore.

The bank's operating profit grew 65 per cent Y-o-Y to Rs 544.11 crore during the quarter under review.

"Driven largely by an improving asset-quality through better SMA management and vigorous recoveries, we have achieved a better set of numbers in our December quarter.

"We remain committed to sustained improvement in our overall functioning and the operating results as communicated in our financial-year guidelines," its MD and CEO Baldev Prakash said.

The Gross NPA Ratio of the bank further came down 168 basis points YoY and 42 basis points Quarter-on-Quarter (QoQ) to 7.25 per cent for the third quarter of FY23.

Meanwhile, the bank's net advances were up 14 per cent YoY and 4 per cent QoQ to Rs 77,639 crore during the period under review. Deposits have grown 8 per cent from Rs 1,09,298 crore to Rs 1,17,935 crore.

However, the bank witnessed 21 per cent YoY growth in advances in its operational geographies across Rest-of-India (RoI).