The state might be facing great turmoil but this bank seems to be doing not just fine but very fine. While the rest of the sector grappled with sustaining margins, J&K Bank, is all set to achieve a net profit target of Rs.1000 crore and business target of Rs.100000 crore by FY13. It posted a net profit of Rs 516 crore in H1FY13. Its asset quality, unlike others has improved and at end of Q2FY13, Gross NPA was at 1.59% v/s 1.6% and Net NPA was at 0.16% v/s 0.14% (QoQ). NPA Coverage Ratio at 93.30 % well above RBI stipulated norm of 70 %.

The equity of the bank is very small at Rs.48.49 crores with face value of Rs.10. As at 30-09-12, Jammu & Kashmir state hold 53.17% stake of the bank, while FIIs hold 24.56%. The bank is the first in the country being state owned bank and termed as private sector bank. In FY13, the bank hopes credit to show a growth of 25%. It hopes to increase lending to tourism, infra and lending to apple growers by five-fold over the next two years. The stock has been virtually hitting a new high everyday on the back of these very strong numbers, especially when others are still grappling to survive. It is surely a value pick for the long term.