J&K Bank net profit increases by 30.31% to Rs 338 crore

The total income of the bank has increased by Rs 103.70 crore to Rs 1,714.56 crore. The total business of the bank has recorded an increase of 17 per cent during the period. The credit portfolio of the bank has registered a growth of 25 per cent and the deposits have increased by 14 per cent during the said period. The net non-performing assets (NPAs) have reduced to 1.58 per cent against 1.88 per cent of the previous year, which is the lowest in the industry.

The board of directors of the bank, in their meeting held in Srinagar, recorded the above-audited working results for the year 2002-03. The annual results of the bank for the year 2002-03 have revealed that the bank has achieved a business turnover of Rs 22,686 crore against the last year''s figure of Rs 19,335 crore, recording an appreciable growth of 17.33 per cent.

The core segments of banks business — deposits, advances, foreign exchanges and treasury options — have shown an impressive growth. The capital and reserves of the bank have increased from Rs 937 crore of the previous year to Rs 1,242 crore, registering an impressive growth of 33 per cent. The bank was able to post an all-time-high net profit of Rs 337.75 crore for the financial year 2002-03, recording an incredible increase of 30 per cent over the last year''s net profit of Rs 259.80 crore.

The total income of the bank has risen to Rs 1,714.56 crore during the financial year 2002-03. The non-interest income has recorded a growth of 12 per cent from Rs 257 crore of the previous year to Rs 287 crore for the year ending March 2003. The aggregate deposits of the bank have recorded an appreciable accretion of 14% to Rs 14675 crores at the end of financial year 2002-03 against the previous year figure of Rs 12,911 crore, which is much higher than the national average growth of 12.2 per cent.

The credit of takeoff of the bank recorded a remarkable growth of 25 per cent as against the average national growth of 17 per cent at the end of 31 March 2003. The total advances of the bank stood at Rs 8,010 crore against Rs 6,424 crore of the corresponding period of the previous year.

The investment portfolio of the bank recorded an increase of 17.13 per cent from Rs 5,753 crore to Rs 6,738 crore at the end of March 2003. The bank continued its efforts to reduce its NPAs. With the strenuous efforts and enhanced recovery drive, coupled with a stress on sound asset quality and prevention of fresh slippages, the bank has been able to further reduce its NPA level. The NPAs reduced to 1.58 per cent against 1.88 per cent of the previous year, which is one of the lowest in the industry.