J&K Bank back on growth trajectory

Srinagar, July 23: In a significant development, the Jammu & Kashmir Bank, state’s premier financial institution, has successfully started pulling itself out of the financial stress by posting a net profit of Rs 30 crore for the quarter ended June 2017. Gross operating profit in the three months (April to June 2017) stood at Rs 368 Cr.
The reviewed results were declared by the Bank today after the Board of the Bank adopted the numbers in its meeting held here at the bank’s Corporate Headquarters.
“We are on a journey to reinvent ourselves as stronger and valued Bank with our strategy of strengthening balance sheet by adopting highest standards of transparency. Understanding fully well the importance of providing growth capital to our entrepreneurs in the state there has been no letup in our focus on credit expansion within the state while as we continue to follow a conservative approach to balance sheet expansion by lending to only the “A” rated Corporates in the rest of India”, said JK Bank Chairman and CEO Parvez Ahmed post declaration of results.
It’s worth mentioning that the turn-around in the performance of the bank after registering Rs1600 crore loss in the previous financial year ended March 2017, is in line with the commitment of the bank’s chairman & CEO Parvez Ahmed, which he had made in an exclusive interview with this newspaper in May this year.
After taking over last October, Parvez Ahmed was put to a very tough task of pulling the Bank back to its growth trajectory after its earnings graph nosedived due to rising bad-loan portfolio. Facing the uphill task, Parvez Ahmad along with his team has been all socks up to deal with the challenges which were posed by deteriorating asset quality, stagnant business growth amid non-conducive business environment.
While analyzing the performance of the bank in the past few quarters, financial experts dished out that bank’s consistent focus on consolidation and clean-up of balance sheet had resulted in recoveries of around Rs 900 Cr in its Bad Loan portfolio ended March 2017. “This was a significant achievement during the financial year 2016-17. The bank’s efficiency parameters are well upto the mark and so are operating ratios. Asset quality ratios are on path of recovery while as the bank has maintained Capital Adequacy Ratio well above the regulatory requirements,” said a financial analyst.
Notably, the chairman had already indicated ‘ample hope of turn-around during the current fiscal and had stated that with improvement in the business environment; the bank’s growth trajectory shall take a high flight route.’
A banking expert said, “The most important achievement was witnessed in recoveries of bad loans to the extent of around Rs 200 Cr during the current quarter which is in addition to the Rs 350 Cr recovered by the bank during the fourth quarter of the last financial year. This is quite remarkable achievement.”20257931_1484582894931618_3889933702014499969_n

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