Shares of Jammu & Kashmir
bank surged 3% on the BSE after the bank reported a 43% increase in its net profit at Rs104cr for the third quarter ended December 2018, the bank said in a statement. The bank earned a profit of Rs72.5cr in the October-December quarter of the previous fiscal (FY18).
The NPA coverage ratio, though flat on a yoy basis and still comparable with the best in the industry, has seen a dip on sequential basis to 65.82% mainly on account of the downgrade of IL&FS, which reflects that the bank has been able to tide over the IL&FS shock without any major deterioration in the balance sheet parameters.
The gross non-performing assets (NPAs) fell to 9.94% by the end of December 2018 vs. 10.08% as on December 31, 2017, the bank said.
The bank reported a stable net interest margin (NIM) of 3.76% largely driven by the bank’s low cost of funds at 4.90% with a CASA contribution of 49%.
Jammu and Kashmir Bank Ltd is currently trading at Rs37.30 up by Rs1 or 2.75% from its previous closing of Rs36.30 on the BSE. The scrip opened at Rs37.55 and has touched a high and low of Rs38.70 and Rs37 respectively.