Despite an increase in bad loans, Jammu and Kashmir Bank reported a 22 per cent rise in net profit for the June quarter at ₹159 crore driven by lower provisions and healthy interest margins. Net profit for the year-ago quarter was ₹130 crore. During the quarter, provisions and contingencies fell 14 per cent from a year ago to ₹213 crore even as bad loans rose.
Gross non-performing assets (NPAs) rose 6.63 per cent during the April-June quarter from 4.16 per cent a year ago. Similarly, net NPAs rose to 2.95 per cent from 2.18 per cent. Net interest income (NII), or the difference between interest earned on loans and interest paid on deposits, increased 9 per cent to ₹695 crore from ₹638 crore a year ago. Non-interest income (including commissions and fees) inched up 3.5 per cent to ₹136 crore from ₹131 crore.