 "Jammu and Kashmir Bank Q1 net profit nearly doubles to Rs 326 crore")
Jammu and Kashmir Bank on Monday reported a 96 per cent jump in net profit at Rs 326 crore in the June quarter, aided by decline in bad loans.
The Srinagar-based lender had posted a net profit of Rs 166 crore in the year-ago period.
The Union Territory of Jammu and Kashmir holds 63.41 per cent stake in the bank.
Total income in the first quarter of the current fiscal rose to Rs 2,885 crore from Rs 2,306 crore in the same period a year ago, J&K Bank said in a regulatory filing.
Interest earned by the bank improved to Rs 2,657 crore as against Rs 2,103 crore in June 2022.
The bank's asset quality showed an improvement as gross non-performing assets (NPAs) declined to 5.77 per cent of gross advances at the end of the June quarter, from 9.09 per cent a year ago.
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Similarly, net NPAs, or bad loans, declined to 1.39 per cent, as against 3.02 per cent in the year-ago period.
As a result, provision for bad loans came down to Rs 56 crore, as against Rs 135 crore allocated in the same quarter a year ago.
Capital adequacy ratio of the bank increased to 14.83 per cent, as against 13.02 per cent at the end of June 2022.