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J&K Bank hits 52-week low after Q1 result

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Capital Market
Last Updated : Aug 05 2019 | 12:50 PM IST

Jammu & Kashmir Bank slumped 3.41% to Rs 34 at 12:17 IST on the BSE after net profit declined 58.4% to Rs 21.87 crore on 18.9% rise in total income to Rs 2256.25 crore in Q1 June 2019 over Q1 June 2018.

The result was announced on Saturday, 3 August 2019.

Meanwhile, the S&P BSE Sensex was down by 475.79 points or 1.28% at 36,642.7.

On the BSE, 1.37 lakh shares were traded in the counter so far compared with average daily volumes of 37000 shares in the past two weeks. The stock had hit a high of Rs 35 so far during the day. The stock hit a low of Rs 32.4 in intraday trade today which is also a 52-week low for the counter. The stock hit a 52-week high of Rs 65.95 on 10 April 2019.

The bank's gross non-performing assets (NPAs) stood at Rs 6030.84 crore as on 30 June 2019 as against Rs 6221.35 crore as on 31 March 2019 and Rs 6241.67 crore as on 30 June 2018.

The ratio of gross NPAs to gross advances stood at 8.48% as on 30 June 2019 as against 8.97% as on 31 March 2019 and 9.83% as on 30 June 2018.

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The ratio of net NPAs to net advances stood at 4.36% as on 30 June 2019 as against 4.89% as on 31 March 2019 and 4.65% as on 30 June 2018.

The bank's provisions and contingencies rose 15% to Rs 293.21 crore in Q1 June 2019 from Rs 255.01 crore in Q1 June 2018.

The bank reported a provision coverage ratio of 66.61% as on 30 June 2019.

The bank's capital adequacy ratio (Basel III) declined to 11.76% in Q1 June 2019 from 12.42% in Q1 June 2018.

Meanwhile, Article 370, which confers special status to Jammu and Kashmir (J&K), will be removed, said Home Minister Amit Shah in parliament this morning. The announcement came after Prime Minister Narendra Modi held a meeting of his cabinet at his house this morning.

Article 370 gave J&K its own constitution and decision-making rights for all matters barring defence, communications and foreign affairs. The removal of this part of the constitution ends special status for Kashmir, which was key to its accession to India in 1947. Article 370 made it necessary for the centre to get the state legislature's approval for introducing any policies or constitutional powers to the state.​

Making the announcement on bifurcation of J&K in Rajya Sabha, Union Home Minister Amit Shah said the Union Territory (UT) in Ladakh will have no legislature like Chandigarh while the other UT of J&K will have a legislature like Delhi and Puducherry. Shah introduced the J&K Reorganisation bill.

Jammu and Kashmir Bank offers banking services under the three major divisions as Support services, Depository services and Third party services.

The state government of Jammu and Kashmir (J&K) held 59.23% stake in the bank as of 30 June 2019.

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First Published: Aug 05 2019 | 12:21 PM IST

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