 "Jammu & Kashmir Bank hits 52-week low on heavy volumes")
Shares of Jammu & Kashmir (J&K) Bank were down 4% to Rs 104.65, hitting 52-week low on the BSE, on the back of heavy volumes.
The trading volumes on the counter jumped more than doubled with a combined 3.65 million shares changed hands on BSE and NSE.
At 1023 hours, around 2.04 million equity shares representing 0.42% of total equity of private sector lender changed hands at price of Rs 106.75, the BSE data shows. The name of buyers and sellers not immediately ascertained.
The trading volumes on the counter jumped more than doubled with a combined 3.65 million shares changed hands on BSE and NSE.
At 1023 hours, around 2.04 million equity shares representing 0.42% of total equity of private sector lender changed hands at price of Rs 106.75, the BSE data shows. The name of buyers and sellers not immediately ascertained.
Meanwhile, the stock has underperformed the market by falling 31% so far in February, compared to 2.8% decline in Bank Nifty and 0.68% rise in the benchmark CNX Nifty.
Jammu & Kashmir Bank had reported a sharp 67% year on year decline in its net profit at Rs 105 crore for the quarter ended December 31, 2014, mainly led by higher interest reversal coupled with increased provisions of towards bad loans.
Asset quality deteriorated quarter on quarter (QoQ) with absolute gross non-performing assets (NPA) at Rs 2,658 crore (GNPA: 5.81% vs. 4.73% in Q2FY15) from Rs 2,187 crore. Consequently, net NPA rose to Rs 1,428 crore from Rs 1,109 crore QoQ.
Analysts at ICICI Securities believe it will take at least two or three quarters for the bank to get on track owing to a surge in NPA in past three quarters and floods in J&K.
However, we do not rule out a faster revival in return ratios as incremental slippages related to flood cease to add further stress, added analysts.