J&K Bank shares shed 4% despite Q1 net profit doubling to Rs 326.5 crore

Shares of J&K Bank dropped 4 percent on July 25, despite solid Q1 results put up by the lender. At 12:38pm, the stock was trading 3.74 percent lower at Rs 68.25 on the NSE.

Jammu and Kashmir Bank has nearly doubled its net profit to Rs 326.5 crore for the first quarter of FY24 from Rs 166 crore a year ago, according to the lender’s financial results declared on July 24. The private sector bank’s asset quality too improved in Q1FY24 with gross non-performing assets (GNPA) declining to 5.77 percent from 9.09 percent last year. Net non-performing assets (NNPA) dropped to 1.39 percent from 3.02 percent in this period.

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“With an almost doubled year-on-year PAT, our Q1 performance gives us a very encouraging start to meet our annual guidance. Reflecting the gradual but marked improvement in our operations, our core operating profit has jumped 38 percent YoY while witnessing 17 percent rise on QoQ basis,” MD and CEO Baldev Prakash said.

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“With our NIM at almost 4 percent along with 24 percent YoY increase in Net Interest Income, I see promising topline growth unfolding in the coming quarters,” Prakash added. “For the last six quarters, we have continued to strengthen and stabilise key operational parameters. The idea is to keep strengthening the core to ensure continuous and sustainable growth going forward.”

Stock Performance

J&K Bank has given a return of 25.55 percent over the last six months, outperforming the benchmark Nifty Bank index which gave a return of 10.27 percent over the same duration.

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