At a time when various banks have recorded much lower profit, J&K Bank said that its net profit had gone up by over 12 per cent during the three-month period ended September 30, 2013.
The bank registered a Rs 302.66-crore net profit against Rs 269.53 crore for the corresponding quarter of 2012-13.
The total business is up (year-on-year) by 14.67 per cent compared with the corresponding quarter last year and crossed Rs 1 lakh crore.
“Our focus for the last two quarters has primarily been driven by the twin objectives of sustaining growth and maintaining a quality asset book. So far, we have pulled it through.
“Notably, we have improved our NIM (net interest margin) on account of better liability management,” Chairman and CEO Mushtaq Ahmad said on Saturday.
The bank’s NIM appreciated to 4.33 per cent from 3.94 per cent recorded in the same period last year.
At the same time, gross non-performing assets (NPAs) as a percentage of advances was 1.69 per cent, while net NPA stands at 0.19 per cent.
The bank, he said, would continue to increase its priority sector lending in J&K, which is the mainstay of the local economy, to boost agriculture and allied activities, craft economy, trade and industry.
“Meanwhile, we shall step up our efforts to tap every grower under the Apple Project, which also forms a part of our broader plan on financial inclusion.
“The bank envisions tapping almost all the apple growers across the valley which, in financial terms, would mean credit offtake of at least Rs 5,000-6,000 crore”, he said.
On the bank’s expansion outside the State, Ahmad said: “This year, we have already opened five business units in Bangalore, Delhi and Hyderabad.
“We are prospectively looking at opening 15 more units this fiscal in Maharashtra, Kerala, Karnataka and Delhi.
Our corporate loan-book outside the State shall grow, though on a very selective basis.”