J&K Bank has reported improved performance in the quarter ended December 11 with 27% increase in the Net Profit at Rs 213.19 crore over 16% increase in the NII at Rs 450.79 crore. The marginal 5% dip in the other income has been moderated by 160 bps dip in the cost to income ratio, there by leading Operating profit up15% to Rs 323.56 crore. Finally, dip in the provisions and contingencies by 41% have drived growth in the Net profit. On sequential basis NII improved 4% and Net Profit by 7% in the quarter under review.
For the quarter ended December 11, JK bank has reported 36% jump in the Interest earned at Rs 1266.53 crore, thanks to 35% jump in the interest on advances at Rs 880.15 crore and 34% jump in the income on investments at Rs 374.70 crore. Spike in the cost of deposits by 150 bps to 6.62% coupled with 18% increase in the term deposits has boosted interest expended on deposits up 55% to Rs 796.36 crore. Thus the interest expended jumped up 50% to Rs 815.74 crore. NII was thus curtailed by 16% to Rs 450.79 crore. NIM slipped marginally to 3.63% against 3.70% in the corresponding previous quarter and 3.69 in Q2FY12%.
While the core fee income grew 13% to Rs 38.71 crore and the insurance commission remained flat at Rs 6.11 crore, the treasury income slipped 51% to Rs 8.80 crore and led noninterest income down 5% to Rs 73.63 crore. Thus Net total income was up 12% to Rs 524.42 crore. Further marginal increase in the staff cost by 2% to Rs 130.82 crore and 19% increase in the other operating profit at Rs 70.04 crore has totaled the operating expenses up 8% to Rs 200.86 core. The cost to income ratio slipped 160 bps to 38.3% and led Operating Profit up 15% to Rs 323.56 crore.
Provisions and contingencies slipped 41% to Rs 18.16 crore with flat loan loss provisions at Rs 15 crore, on the back of stable asset quality. However, the bank has witnessed small write back of Rs 2.91 crore on provision for funded interest on term loans in quarter under review against provision of Rs 8.54 crore in the corresponding previous year. After accounting 12% increase in the provision for taxation at Rs 92.21 crore, Net Profit was up 27% to Rs 213.19 crore.
For the nine months ended December 11, the bank has reported 25% jump in the Net Profit at Rs 595.13 crore over 17% increase in the NII at Rs 1322.26 crore. Dip in the other income by 14% to Rs 211.85 crore coupled with flat cost to income ratio at 37.9% has led Operating profit up 12% to Rs 952.71 crore. Finally 39% dip in the provisions and contingencies at Rs 84.97 crore has aided 25% growth in the Net Profit.
J&K Bank: Financial Performance