[sbinews] J&K Bank NPA less than 1%??

  • From: sbistcbangalore@xxxxxxxx
  • To: sbinews@xxxxxxxxxxxxx
  • Date: Wed, 24 Dec 2003 13:10:09 +0500

J&K Bank hopes to cut bad loans to below 1% in FY04

KOLKATA: Jammu & Kashmir Bank (J&K Bank), which has achieved manifold growth in 
business over the last few years, now aims to bring down its non-performing 
assets below the 1% mark by the end of the current year. 

Targeting a net profit of Rs 425-450 crore in ‘03-04, the bank is also open to 
acquisition of branches in future. 

Addressing newspersons here on Tuesday, MY Khan, chairman, J&K Bank said, “We 
have 465 branches across the country and plan to increase our coverage further 
in states outside J&K too. Good branches with the right fit may be considered 
for expansion when the need arises.” The bank has 160 branches outside J&K. 

J&K Bank, which is likely to gross a turnover of over Rs 25,000 crore this 
year, will also launch its credit card by the end of this fiscal. It posted a 
net profit of Rs 338 crore last year. The net NPA and capital adequacy of J&K 
Bank stood at 1.6% and 16.5% respectively. 

“This is a huge jump from 1998 when the bank made a net profit of just Rs 18 
crore and had a net NPA of over 9%. The networth stands at Rs 1,200 crore at 
present. Incidentally, this is the only bank in the country, through which plan 
and non-plan funding of the government is routed.” 

According to Mr Khan, the first six months of the current year has seen a 
30-35% jump in profits and going by this trend, the bank is likely to end up 
with a net profit between Rs 425 and Rs 450 crore by year end. 

While the main jump in profits has been attributed to the increase in net 
interest income, treasury and fee-based income has also contributed a fair 
amount to profits. 

“Retail business is a major thrust and we expect Rs 700-750 crore from the rent 
securitisation portfolio alone. 

This apart, personal loans are a major segment within the retail portfolio,” Mr 
Khan added. 

On the insurance front, J&K Bank is exploring a relationship with National 
Insurance Co. 

Mailing list (sbinews@xxxxxxxxxxxxx) related information:

News/articles about SBI and Banking related matters published  in the print 
media, Internet etc will be circulated through this Mailing List. 

The messages in this list will help in improving awareness of SBI and its 
activities vis-a-vis the happenings in the Banking industry. This should be of 
help to all staff members of SBI, particularly those who are preparing for 
promotional written tests/interviews/group discussions. Subscription to this 
Mailing List is simple and FREE. Please check the procedure below. Please share 
this information with other colleagues/branches that could be interested in 
subscribing to this Mailing List. 

The messages circulated here should not be deemed to have the official 
endorsement of the SBI or any of its employees. The correct factual position 
may be ascertained from official sources. 

To join this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx 
with the word 'subscribe' without the quotes in the subject of the email 

To leave this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx 
with the word  'unsubscribe' without the quotes in the subject of the email 

Archives (old messages) are available for viewing at:
Click on the month-year at the lower left corner to view messages posted during 
that month. 

This is an announcements/newsletter type mailing list i.e. only the Moderator/s 
can post messages to the list. 

This mailing list is maintained and moderated by Sri. R.S.Pai, currently 
working as Chief Manager(IT-Internet Banking), SBI, Corporate Centre, Mumbai. 
Moderator: Smt. S. Vijaya, CM (Training), SBI, STC, Bangalore.
Visit http://rspai.tripod.com for some useful Banking, Reference and Utilities 

Other related posts:

  • » [sbinews] J&K Bank NPA less than 1%??