JK Bank - Q1FY2014 Result Review - Angel Broking

J&K Bank reported healthy operating performance for the quarter. NII for the bank grew 22.3% yoy. Non-interest income marginally declined by 1.2% yoy. Overall, pre-provisioning profit for the bank grew by 15.9% yoy. On the asset quality front, the bank reported moderate performance, as Gross and Net NPA levels increased sequentially by 3.4% and 1.5% respectively. Provisioning expenses declined by 28.1% yoy. Overall, bottom-line grew at a healthy pace of 25.1% yoy.

At CMP, the stock is trading at 0.8x FY2015E ABV. We maintain our Neutral recommendation on the stock.

Source : Equity Bulls

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