Jammu and Kashmir Bank Chairman Haseeb Drabu outlined the rise of the bank at the national level and claimed that it has made its mark as front line banking institution across the country as also in some of the foreign countries.
The bank has registered a profit of Rs 512.38 crore in the year 2009-2010.
While Announcing the JK Bank’s annual financial results for the year 2009-10, Drabu said, “We are looking ahead to increase our total business turnover to a record Rs one lakh crore in 2012 from Rs 60,294 crore the bank has marked by March 2010 end, and to achieve net profit of Rs 1000 crore.”
He said J&K bank that has emerged as face of the economy of the state and is a participant in the active development of the state has also created a “good network” in many foreign countries.
Drabu credited this achievement to the employees of the bank and trust of customers. He said d that the J&K Bank is a leading bank not only in the State, but throughout the country and also have a good net work in the foreign countries.
He said the Bank has won laurels throughout the country also for its best performance and working as a family bank and quoting the J&K Bank the States strongest bank with strong and steady income growth rates .
He said that bank has received a net profit of Rs, 512.38 crore up by 25% from Rs409.84 crore recorded during the previous financial year driven by a 70% rise in fee based income up to the end the last financial year 2009-2010.
He said as compared to the 2009, there was increase of 53% net profit in the quarter ended March, 2010.
The chairman of the J&K Bank further said that the total balance sheet size of the bank as on March, 2010 increased further by 13% as compared to previous year.
The total business turnover moved to Rs.60294 crore, increasing by 12% year on year over Rs.53935 crore. The loan book as on March 31, 2010 stood at Rs23057 core up to 10% from last year’s Rs20930 core, while the bank’s deposit base at the same date stood at Rs.37237 crore up to 13% from Rs.33004 crore as on March ending ,2009.
He claimed that the Gross NPAs as on March, 2010 have declined considerably to Rs.462.31 crore from Rs.559.27 crore a year ago.
Drabu said the J&K Bank NPAs were the lowest in the country. He said the gross NPAs of the Bank had declined considerably to Rs 426.31 crore ended March 2010 from Rs 559.27 crore a year before. He said the gross and net NPAs as proportion of gross and net advances as on March 2010 had further come down to 1.97 per cent and 0.28 per cent respectively from 2.64 per cent and 1.37 per cent a year ago. He said the bank had increased the NPA coverage ratio as on March 2010 by 37 per cent to 86 per cent from 49 per cent a year ago. “This means even if all NPAs of the bank go bad, it will not collapse the bank,” he said, adding that this limit was well above the RBI stipulated norm of 70 per cent.
On the low value of the Bank share he said, “Over 50 per cent of our shares are being held by the government; they are not transacted in the equity market. 33 per cent of the stocks held by FIIs also don’t come on the bourses. Again, there is 3 to 4 per cent equity which is not in the liquidity form. So only a small portion of our stocks that is actually in the floating form is traded on the bourses,” he said. He said another reason for the Bank share being low at stock market was the risk associated by investors with the J&K region and not with J&K Bank per cent.
Drabu further said that from the last last two –three years, the bank has touched to newer heights and said the Bank has introduced Insurance, healthcare, financial patronage to the under privileged members of the society as also loans for almost all commercial, agrticultural, educational and personal needs.