Srinagar, Oct 22: Jammu and Kashmir Bank on Thursday reported a 10.6 per cent rise in net profit to Rs 546.36 crore for the second quarter ended September 30, driven by earnings growth and improvement in asset quality.
The bank earned Rs 494.11 crore net profit in the year-ago period.
Sequentially, its profits surged 28.8 per cent from Rs 424.18 crore in the first quarter of the current fiscal year, a bank spokesperson said.
The bank announced the financial results after its Board of Directors reviewed and approved the quarterly and half-yearly figures at a meeting held at its corporate headquarters here on Thursday.
Its net interest income rose 5 per cent during the quarter to Rs 1,502 crore. The lender’s other income more than doubled to Rs 314.90 crore from Rs 153.76 cr a year ago.
For the first half of the current fiscal year, the bank’s operating expenditure grew 1.5 per cent, and its operating profit rose over 15 per cent to Rs 1,492 crore.
The cost-to-income ratio stood at 56.57 per cent for the quarter, up from 60.79 per cent in the year-ago period.
The bank’s return on assets jumped 20 basis points sequentially to 1.07 per cent in the quarter.
J&K Bank MD and CEO Amitava Chatterjee said, “The growth in net interest income, doubling of other income and over 26 per cent year-on-year increase in operating profit for this quarter mark an encouraging strengthening of our earnings performance. The recovery in return on assets to above 1 per cent further underlines the improvement over the June quarter”.
In the first quarter, the bank emphasised building its business base and positioning for stronger earnings over time, he added.
“This quarter’s operating performance represents progress in that direction. Our focus for the second half is on sustaining core income growth, strengthening recurring revenue streams and enhancing recoveries, while addressing funding costs through deeper deposit relationships.
“These priorities remain central to delivering our annual objectives and translating business expansion into sustainable profitability,” he added. (Agencies)