J&K Bank profit to reach Rs. 2,000 crore by 2022
Jammu & Kashmir Bank has embarked on a transformation plan to scale up business and aims to grow its total business to Rs. 2.45 lakh crore by 2020 from the current Rs. 1.57 lakh crore.
Post transformation, the management is expecting a total business of Rs. 2.45 lakh crore with a targeted profit of Rs. 2,000 crore, net interest margin ranging between 3.5-4 per cent, return on assets of 1.3 per cent, return on equity of 16 per cent and credit cost below 1 per cent at the end of FY 2022. For the quarter ended December 31, the bank posted a 43 per cent increase in net profit to Rs. 104 crore while for the nine months of the current financial year, profit grew likewise at 43 per cent to Rs. 250 crore.
The bank met its third quarter profit estimates despite downgrading the much publicised IL&FS exposure and making adequate provisions. According to management, ‘cleaning up’ of the balance sheet is almost complete. However, credit costs would take some more quarters to align to the long-term averages, due to provisioning pressure on account of IL&FS and the ageing of NPAs, the management said.
The bank has a deposit base of Rs. 86,210 crore and a loan book of Rs. 71,069 crore.
On Monday, the J&K bank stock opened at Rs. 37.70 per share and touched a high/low of 38.10/36.80 per share.