J&K Bank Q3 net profit jumps 35% to Rs 421 cr

New Delhi: J&K Bank on Saturday reported a 35 per cent rise in net profit to Rs 421 crore in the third quarter ended on December 2023 on the back of a decline in bad loans and improvement in core income.

The bank had earned a net profit of Rs 311 crore in the October-December quarter of 2022.

The total income of the bank increased to Rs 3,063 crore in the quarter as compared to Rs 2,682 crore in the December quarter of the previous fiscal, J&K Bank said in a regulatory filing.

The bank's interest income rose during the third quarter of the current fiscal to Rs 2,881 crore, as against Rs 2,441 crore in the same period last fiscal.

The gross non-performing asset (NPA) ratio improved to 4.84 per cent as of December 31, 2023, as against 7.25 per cent as of December 31, 2022.

Similarly, the net NPA also declined to 0.63 per cent as compared to 2.08 per cent at the end of December 2022.

The provision coverage ratio as of December 31, 2023, is 91.61 per cent without taking into account the floating provision of Rs.124.48 crore held by the bank which is part of Tier-II capital, it said.

During the quarter, the bank raised equity share capital including a share premium of Rs 750 crore through Qualified Institutional Placement on December 15, 2023.

As a result, the Capital Adequacy Ratio of the bank improved to 14.18 per cent as compared to 13.82 per cent at the end of December 2022.