J&K Bank Posts 12% Rise in Q3 Profit

New Delhi: Jammu and Kashmir Bank on Thursday reported a 12.4 per cent increase in net profit at Rs 117.6 crore for the fiscal third quarter ended in December 2015, despite an increase in provisions for bad loans.

The lender had registered a net profit of Rs 104.6 crore for the corresponding period of the previous financial year (2014-15).

However, total income decreased to Rs 1,806 crore in the reporting quarter, from Rs 1,849.4 crore in the corresponding period a year ago, the bank said in a statement.

Total provisions excluding income tax rose to Rs 239.7 crore as against Rs 220.4 crore in the year-ago period.

Gross NPAs  (non-performing assets) as a percentage of total advances rose significantly to 6.81 per cent, from 5.81 per cent a year earlier.

However, the bank's net NPAs declined 2.60 per cent, from 3.22 per cent at the end of December 2014.

The Jammu and Kashmir government holds a 53.17 per cent stake in the bank.

Net interest margin (NIM) of the lender for the quarter stood at 3.85 per cent while the NPA coverage ratio was 66.18 per cent.

Jammu and Kashmir Bank chairman Mushtaq Ahmad said, "In the given circumstances wherein the entire banking industry, especially public sector banks, is reeling under the growing volumes of bad loans, we are better."

It is going to take some more time when the economic situation improves and the next 3-4 quarters may call for some painful decisions across the banking spectrum of the country, he added.