Jammu & Kashmir Bank (J&K Bank) posted excellent numbers for Q1FY18, showing an improvement in profitability as well as asset quality.  Net Interest Income rose 13% (YoY) at Rs.712 crore and net profit for the quarter was up 32% at Rs.30 crore. Expenditure of the Bank has been brought down by 7%(YoY) through better liability management and cost rationalization.  The CASA ratio of the Bank is at healthy 51%, riding on a growth of 24 pc YoY with Bank retaining most of the deposits mobilized during demonetization contrary to the industry trend of downward movement in such deposits.

In terms of asset quality, Gross NPA came down from 11.2% to 10.79% and Net NPA was down from 4.87% to 4.65%.  The Bank significantly improved its Provision Coverage Ratio (PCR) to 70% by making provisions of Rs 471 crore during the current quarter. The the Bank recovered around Rs 200 crore during the current quarter which is in addition to the Rs 350 crore recovered by the bank during Q4FY17.

It reported a total business of Rs 120477  crore with deposits of Rs 71744 crore and Advances of Rs 48733 crore, as at June 30, 2017. The Bank has shown a marked reduction in cost of deposits from 6% to 5.27% (YoY). The Capital Adequacy Ratio of the Bank improved by 30 bps to 11.10% (YoY), indicating better financial strength. 

The market is thrilled with the performance and the stock is currently amongst the top gainers on the BSE, going up over 9.5% to Rs.91.90, close to its 52-week high of Rs.95.65