Jammu & Kashmir Bank ends higher after Q4 net turns around to net profit due to lower provisions

Full year revenues for FY21 were 1.75% lower at Rs8,840cr on COVID impact.

Jun 18, 2021 04:06 IST India Infoline News Service

Jammu & Kashmir Bank Ltd shares end higher on the BSE after net profits in the Mar-21 turned around to Rs322.22cr from a net loss of Rs336.74cr in the Mar-20 quarter. This turnaround was largely on account of a sharp fall in the loan loss provisions from Rs620cr to Rs28cr in the current quarter. Despite the fall in wholesale banking revenues, it led to EBITDA turnaround.

The stock ended at Rs32.80 up by Rs2.7 or 8.97% from its previous closing of Rs30.10 on the BSE.

The bank reported 6.44% yoy fall in consolidated net revenues for the Mar-21 quarter at Rs2131.94cr. On a sequential basis, net sales revenues were down -9.27% compared to total revenues in the Dec-20 quarter at Rs2,349.81cr.

Full year revenues for FY21 were 1.75% lower at Rs8,840cr on COVID impact. On a yoy basis, treasury income was up and retail banking was flat but wholesale banking revenues were sharply lower.

Gross NPAs at 9.57% and net NPAs at 2.95% trended lower yoy, but are high in absolute terms.

The scrip opened at Rs31.70 and touched a high and low of Rs33.40 and Rs30.15 respectively.

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