J&K Bank while showing resilience during turbulent times in banking industry has registered a profit of Rs 202.72 crore for financial year 2017-18. The board of the bank adopted the audited financial results for the Q4 and financial year 2017-18 here today.
The audited results reveal that the bank registered a total business of Rs 140304.78 crore comprising deposits of Rs 80006.50 crore and advances of Rs 60298.28 crore as on 31 March 2018, showing a growth of 11.3 percent over previous fiscal. Within the state, the bank reported a robust credit growth of 20 percent in line with the state focused lending strategy of the current leadership of the bank.
Commenting on the numbers for the 4th quarter, chairman and CEO Parvez Ahmed said: “The banking industry has seen a very difficult and challenging 4th quarter with RBI coming out with revised guidelines on NPA identification and treatment besides quashing the restructuring schemes leading to some major slippages across the industry. Then there was the Nirav Modi effect which led to one of our accounts M/S Gitanjali Gems getting downgraded. In the J&K state rehabilitated portfolio RBI notified some divergence in classification. All this resulted in enhanced provisioning and interest reversals which precipitated in muted bottom-line for the quarter.”
“On the brighter side,” he added “we were able to complete the cleanup and consolidation act. In the current fiscal though there will still be pressure on the balance sheet but we do not anticipate any major downgrade in the pipeline. We have concomitantly completed the succession planning exercise along with revamping of the organization structure with the aim of improving the systems and procedures to strengthen the culture of compliance. The focus has been on the risk management and capital planning too for regulatory compliance and growth over a longer period of time”.
“Our promoters the state government and the regulator Reserve Bank of India supported us well during the tough preceding year with their guidance and support particularly in the management of rehabilitated portfolio of J&K state, the former supporting the business community with Chief Minister business interest relief scheme and the latter by allowing us the staggering provisioning for interest capitalized in rehabilitated accounts.”, acknowledged the Chairman.