J&K Bank Posts Robust Q1 Profits Driven by Strong Financials and Digital Transformation

Jammu and Kashmir Bank reports a remarkable 27% YoY increase in Q1 profits, reaching Rs 415.49 crore. Key financial metrics show significant improvements, with advances and deposits up by 13% and 9%, respectively. The bank continues to focus on digital transformation and maintaining robust asset quality.

Srinagar (Jammu and Kashmir) [India], July 27: J&K Bank has announced a substantial rise in quarterly profits, reporting Rs 415.49 crore as profit-after-tax (PAT) for the April-June quarter. This marks a 27% year-on-year increase from Rs 326.45 crore recorded in the same period last year. The results were approved by the Bank's Board of Directors at its Corporate Headquarters.

According to a statement from the Jammu and Kashmir Bank, net interest income (NII) grew by 7% YoY to Rs 1369.22 crore. Additionally, the bank's net interest margin (NIM) has risen by 9 basis points quarter-on-quarter, reaching 3.86% from 3.77% in the previous quarter. The core operating profit also saw a 13% increase YoY, standing at Rs 594.67 crore. Return on assets (RoA) improved to 1.08% from 0.94% in last year's Q1.

MD & CEO of J&K Bank highlighted the bank's resilience and strength, noting significant improvements in key financial metrics. Advances grew by over 13% YoY to Rs 95449.77 crore, while deposits increased by 9% to Rs 132573.13 crore. The CASA ratio stood at 49.77% for the quarter. The CEO also emphasized the bank's ongoing digital transformation, aiming for 100% digital services by year's end and maintaining strong asset quality with a GNPA of below 4% and an NPA coverage ratio of 91.57%.

(With inputs from agencies.)