Mushtaq Ahmad, CM & CEO & Parvez Ahmad, Executive President add the call. Highlights of the call by Capital Mkt:
During the quarter ended Dec, 2014, Net Profit fell 67% to Rs 104.64 crore compared to Rs 321.29 crore earned during the quarter ended Dec, 2013.NIMs for the quarter stood at 3.66% (annualized) vis–vis 3.97% for the corresponding quarter.Post tax Return on Assets stood at 0.57% (annualized) compared to 1.88% y-o-y.Post Tax Return on Average Net-Worth (annualized) stood at 6.89% compared to 22.80% y-o-y.
Cost of Deposits (Annualized) stood at 6.71% compared to 6.94% y-o-y.Yield on Advances (annualized) was at 11.29% against 12.24% y-o-y.Business per Employee and Net profit per Employee (annualized) were at Rs 11.63 crore and Rs 4.50 lakh respectively for the quarter ended Dec, 2014 compared to Rs 11.36 crore and Rs 13.71 lakh pertaining to the quarter ended Dec, 2013.
Gross and Net NPA’s as percentages to Gross and Net Advances was at 5.81% and 3.22% respectively compared to 1.65% and 0.22% a year ago.NPA Coverage Ratio as on Dec, 2014 stood at 51.00%.Cost to Income Ratio stood at 48.47% for the quarter as compared to 39.94% y-o-y.Capital Adequacy Ratio (Basel III) stood at 12.78% as on Dec. 2014 against RBI stipulated norm of 9%.The total provisions, excluding for income tax, rose to Rs 220.39 crore as against Rs 4.60 crore in the year-ago period
For the nine months
Net Profit stood at Rs 406.99 crore, down 56 % as compared to Rs 931.87 crore.NIMs stood at 3.77% (annualized) vis–vis 4.18%.Post tax Return on Assets stood at 0.75 % (annualized) compared to 1.88 %Post Tax Return on Average Net-Worth (annualized) stood at 9.16 % compared to 23.31 %
Cost of Deposits (Annualized) was at 6.79% compared to 6.70%.Yield on Advances (annualized) stood at 11.58% as compared to 12.25%.Business per Employee and Net profit per Employee (annualized) were at Rs 11.63 crore and Rs 5.83 lakh respectively for the nine months compared to Rs 11.36 crore and Rs 13.25 lakh.Gross and Net NPA’s as percentages to Gross and Net Advances as on Dec. 2014 stood at 5.81% and 3.22%.NPA Coverage Ratio as on Dec. 2014 stood at 51.00 %.Cost to Income Ratio stood at 44.81% for the nine months as compared to 37.31 %
Other details
Restructured assets rose 27% y-o-y from 1415.76 crore to Rs 1269.30 crore.Cash & Bank Balance stood at Rs 2756.34 crore up 9.1% y-o-y.Saving Deposits increased 7.4% to Rs 20605 crore.Term Deposits fell 3.3% to Rs 37407 crore.Deposits in J&K state grew 12% to Rs 46787 crore as of December 2014.Deposits in rest of India fell 19% to Rs 17118.82 crore as of December 2014.
Business outside J&K fell as the Bank was not aggressive.The management expects business in J&K to grow by 25% and that outside J&K to grow along with industry average of around 15%.Gross advances in J&K state grew 17% to Rs 21899 crore as of December 2014.Gross advances in rest of India fell 6% to Rs 24087 crore as of December 2014Outstanding NPA from one shipping company is around Rs 180 crore.
For REI Agro account the bank had given loans of Rs 650 crore. As per RBI norms it has to provide for 15% or 25% as the case may be. But the bank has provided Rs 230-240 crore. The bank expected it to go to CDR but the consortium denied it. It hopes to sail through this account but will take time.
The bank provided Rs 500-600 crore for loss due to floods. More Rs 300 crore needs to be provided.J&K state has submitted package of Rs 44000 crore to the central government and it expects Rs 30-35000 crore to be sanctioned. Most of it should be routed through J&K Bank.NIM in J&K state stood at around 6% while NIM outside J&K state stood at below 3%.CASA improved from 39% to 41% during the nine months.
The bank will make more provisioning in March 2015 quarter, so that next FY does not carry big provisions.