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Thursday, June 30, 2022

In process of assessing impact of Roshni Act nullification, J&K Bank Q3 profit up 33%

Jammu & Kashmir Bank on Tuesday reported a 32.8 per cent rise in its net profit at Rs 65.94 crore for the quarter ended in December.

The bank had posted a net profit of Rs 49.64 crore in the year-ago period.

Press Trust of India reported that the bank’s total income increased to Rs 2,348.02 crore in the third quarter of financial year 2020-21 as against Rs 2,195.02 crore in the same quarter of the last year.

The J&K Bank said in a regulatory filing that the gross non-performing assets or NPAs of the bank fell to 8.71 per cent of gross advances by the end of December 2020 as against 11.10 per cent by end-December 2019.

Value-wise, PTI reported, that the gross NPAs were of Rs 6,196.06 crore as against Rs 7,711.60 crore in the year-ago period.

Net NPAs or bad loans were 2.50 per cent (Rs 1,664.32 crore), down from 4.36 per cent (Rs 2,810.32 crore).

However, provisions for bad loans and contingencies rose to Rs 457.61 crore during the quarter as against Rs 283.22 crore.

The government-owned lender said that it has the provision of Rs 3,812.48 crore as of December 31, 2020, in respect of selected borrower accounts under the Insolvency and Bankruptcy Code against a total outstanding of Rs 3,958.98 crore.

Also, a cumulative provision of Rs 295 crore has been made for accounts granted a moratorium on payment of installments and interest, falling due between March-August 2020 as part of the Covid-19 regulatory package by Reserve Bank of India.

Besides, the bank said it is in the process of assessing the impact of nullification of the erstwhile Roshni Act.

On 1st November 2020, the Jammu & Kashmir government declared actions taken under the J&K State Land (vesting of ownership to the occupants), also known as the Roshni Act, as null and void.

The erstwhile J&K state was divided into two union territories with effect from October 31, 2020.

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