MEMBER'S LOGINX
| Login Failure | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
- Home
- Outlook Arena
- Jan 11, 2002 - J&K Bank: Strong 3Q performance
J&K Bank: Strong 3Q performance
The third quarter earnings season for the banking sector started on a positive note with encouraging financial performance from Jammu & Kashmir Bank (JKB). The bank recorded a 41% rise in earnings and 27% growth in interest income for the nine months ended December 2001.
| (Rs m) | 3QFY01 | 3QFY02 | Change | 9mFY01 | 9mFY02 | Change |
| Income from operations | 2,719 | 3,355 | 23.4% | 7,866 | 9,954 | 26.5% |
| Other Income | 259 | 633 | 144.7% | 695 | 1,439 | 107.0% |
| Interest expense | 1,855 | 2,248 | 21.2% | 5,312 | 6,825 | 28.5% |
| Operating Profit | 559 | 733 | 31.1% | 1,495 | 1,779 | 19.0% |
| Operating Profit Margin (%) | 20.5% | 21.8% | 19.0% | 17.9% | ||
| Other expenses | 305 | 374 | 22.7% | 1,060 | 1,350 | 27.4% |
| Provisions and contingencies | 91 | 452 | 395.3% | 396 | 770 | 94.4% |
| Profit before Tax | 726 | 913 | 25.8% | 1,794 | 2,448 | 36.5% |
| Tax | 215 | 250 | 16.3% | 550 | 700 | 27.3% |
| Profit after Tax/(Loss) | 511 | 663 | 29.8% | 1,244 | 1,748 | 40.5% |
| Net profit margin (%) | 18.8% | 19.8% | 15.8% | 17.6% | ||
| No. of Shares | 48.1 | 48.2 | 48.1 | 48.2 | ||
| Diluted Earnings per share* | 42.4 | 55.1 | 34.4 | 48.3 | ||
| P/E Ratio | 0.8 | 1.0 | ||||
| *(annualised) |
Unlike other banks, JKB's interest on advances income grew by 48% in the first nine months accounting for 46% of total interest income. The bank's 25% of total loans are to the retail sector (home loans, personal loans and auto loans), which has fueled its overall interest income growth. Income from investments on the other hand grew at a slower rate of 16%.
The bank has successfully improved its operating margins by about 130 basis points on the back of more than proportionate reduction in deposit cost (compared to lending rates) and cost control measures. JKB's cost to income ratio declined to 22% in 3QFY02 from 27% in the comparable previous quarter. For the first nine months, the ratio stood at 30% (33% in 9mFY01). JKB’s cost of deposits at about 7% is amongst the lowest in Indian banking sector, as 40% of its deposits are low cost deposits.
Over 100% growth in other income figure was the key earning driver in the third quarter. The proportionate contribution of other income to total income jumped to 16% from 9% in 3QFY01. However, a five fold increase in provisions and contingencies amount trimmed the bottomline growth of the bank. The bank's net NPA to advances ratio stood at 2.5% as on March 2001.
At the current market price of Rs 46 JKB is trading at a P/E of 1x and Price/Book value ratio of 0.3x nine months FY02 annualised earnings. The bank's lower valuations are the result of its public sector status (53% stake held by the government of J&K), regional nature and risk of concentration of business in one region (most part of its deposits are from J&K but lending is spread across India).
More Views on News
J&K BANK Announces Quarterly Results (1QFY20); Net Profit Down 58.4% (Quarterly Result Update)
Aug 5, 2019 | Updated on Aug 5, 2019For the quarter ended June 2019, J&K BANK has posted a net profit of Rs 219 m (down 58.4% YoY). Sales on the other hand came in at Rs 21 bn (up 17.5% YoY). Read on for a complete analysis of J&K BANK's quarterly results.
How the YES Bank Collapse Unfolded - 10 Points (Sector Info)
Mar 9, 2020A timeline of how YES Bank went from a stock market darling to a pariah.
Today's Stock Market Crash: 10 Points (Sector Info)
Mar 6, 2020Top factors that dragged the markets lower today.
J&K BANK Announces Quarterly Results (4QFY19); Net Profit Up 656.1% (Quarterly Result Update)
May 17, 2019 | Updated on May 17, 2019For the quarter ended March 2019, J&K BANK has posted a net profit of Rs 2 bn (up 656.1% YoY). Sales on the other hand came in at Rs 21 bn (up 30.0% YoY). Read on for a complete analysis of J&K BANK's quarterly results.
More Views on NewsMost Popular
How to Find the Best Stocks for Day Trading - 1 (Fast Profits Daily)
Jul 2, 2020In the first of two videos, I'll show you how to identify the best stocks for intraday trading.
Two Agri Stocks Are Likely to Outperform Even in this Market (Profit Hunter)
Jul 2, 2020Why we have recommended two agriculture stocks for our Hidden Treasure subscribers. Read on...
These 3 Recent Events Will Impact the Price of Gold (Fast Profits Daily)
Jul 1, 2020Recent developments in the bullion market may put some short term pressure on gold prices.
Smallcaps Are in a Sweet Spot Again: Are You Buying? (Profit Hunter)
Jul 3, 2020This is why I believe smallcaps are the place to be in the near future.
MoreOUR TOP 5 IDEAS
- Free Report: Multibagger Stock Ideas 2020
- Are You Making One of These 15 Costly Mistakes While Investing. Learn more!
- A Guide to some of the Most Lucrative Stocks in the Market. Download For Free!
- Free Report: The Secret to Increasing Your Trading Profits Daily!
- No Guessing, No Hunches, and No Missed Trends Ever! Join Us on YouTube Now.
J&K BANK SHARE PRICE
Jul 14, 2020 (Close)
TRACK J&K BANK
- Track your investment in J&K BANK with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
- Add To MyStocks
MORE ON J&K BANK
J&K BANK - DEUTSCHE BANK COMPARISON
COMPARE J&K BANK WITH
FEATURED VIDEOS
![]( "What No One Told You About Finding the Best Penny Stocks")
What No One Told You About Finding the Best Penny Stocks![]( "Using Price Action to Identify Trading Opportunity in Defense Stocks")
Using Price Action to Identify Trading Opportunity in Defense Stocks![]( "Three Charts on One of the Quickest Bull Markets in History")
Three Charts on One of the Quickest Bull Markets in History![]( "This is Where You Will Find the Most Promising Bets for Post Covid Rebound")
This is Where You Will Find the Most Promising Bets for Post Covid Rebound![]( "Here")
Here's How You Can Make Big Money from Penny Stocks
MARKET STATS
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
FREE NEWSLETTERS
PREMIUM PRODUCTS
QUICK LINKS
APPS
Copyright © Equitymaster Agora Research Private Limited.
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
Equitymaster Agora Research Private Limited (Research Analyst) 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster requests your view! Post a comment on "J&K Bank: Strong 3Q performance". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!