Jammu and Kashmir Bank Ltd Q4 FY20 loss at Rs. 336.74 crore

JAMMU & KASHMIR BANK LTD. has reported financial results for the period ended March 31, 2020.

Financial Results (Q4 FY19-20) - QoQ Comparison

The company has reported total income of Rs.2278.58 crores during the period ended March 31, 2020 as compared to Rs.2197 crores during the period ended December 31, 2019.

The company has posted net profit / (loss) of Rs.(336.74) crores for the period ended March 31, 2020 as against net profit / (loss) of Rs.48.43 crores for the period ended December 31, 2019.

The company has reported EPS of Rs.(4.72) for the period ended March 31, 2020 as compared to Rs.0.87 for the period ended December 31, 2019.

Financials	Q4 FY19-20	Q3 FY19-20	% Change
Total Income	₹ 2278.58 crs	₹ 2197 crs	3.71%
Net Profit	₹ (336.74) crs	₹ 48.43 crs	-795.31%
EPS	₹ (4.72)	₹ 0.87	-642.53%

Financial Results (Q4 FY19-20) - YoY Comparison

The company has reported total income of Rs.2278.58 crores during the period ended March 31, 2020 as compared to Rs.2478.32 crores during the period ended March 31, 2019.

The company has posted net profit / (loss) of Rs.(336.74) crores for the period ended March 31, 2020 as against net profit / (loss) of Rs.213.73 crores for the period ended March 31, 2019.

The company has reported EPS of Rs.(4.72) for the period ended March 31, 2020 as compared to Rs.3.84 for the period ended March 31, 2019.

Financials	Q4 FY19-20	Q4 FY18-19	% Change
Total Income	₹ 2278.58 crs	₹ 2478.32 crs	-8.06%
Net Profit	₹ (336.74) crs	₹ 213.73 crs	-257.55%
EPS	₹ (4.72)	₹ 3.84	-222.92%

Financial Results (12 months ended FY 19-20) - YoY Comparison

The company has reported total income of Rs.8996.66 crores during the 12 months period ended March 31, 2020 as compared to Rs.8493.04 crores during the 12 months period ended March 31, 2019.

The company has posted net profit / (loss) of Rs.(1183.38) crores for the 12 months period ended March 31, 2020 as against net profit / (loss) of Rs.466.67 crores for the 12 months period ended March 31, 2019.

The company has reported EPS of Rs.(16.59) for the 12 months period ended March 31, 2020 as compared to Rs.8.38 for the 12 months period ended March 31, 2019.

Financials	Year Ended FY19-20	Year Ended FY18-19	% Change
Total Income	₹ 8996.66 crs	₹ 8493.04 crs	5.93%
Net Profit	₹ (1183.38) crs	₹ 466.67 crs	-353.58%
EPS	₹ (16.59)	₹8.38	-297.97%

As per the yearly numbers, the Net interest income (NII) of the bank increased by around 10% Year-on-Year (YoY) and stood at Rs 3706.67 Cr for FY 19-20 as against Rs 3383.93 Cr reported during last financial year. The bank's advances stood at Rs 64399 Cr while as the deposits witnessed growth of over 9 % reaching up to Rs 97788 Cr from Rs 89639 Cr thereby increasing the total business of the bank by 4% to Rs 162187 Cr.

The operating profit of the bank before provisioning stood at Rs 1525.05 Cr. Owing to substantial increase in provisions to the tune of Rs 2523 Cr made towards bad and doubtful assets against Rs 1053 Cr made during the previous year, the bank registered a net loss of Rs 1139.41 Cr for the FY ended March 2020.

As a way to strengthening its bottom-line in near future, the bank increased its Provisioning Coverage Ratio (PCR) to 78.59% from 64.30 % YoY. The net NPA for the Q4 has come down considerably to 3.48 % when compared to the figure of 4.89 % reported during the corresponding quarter of last FY.

Commenting upon the results, the bank's Chairman R K Chhibber said, "The numbers are quite evident and adequately mirror the times wherein the financial institutions around the globe appear grappling with impact of unprecedented lockdowns amid the ongoing pandemic while highlighting the resilient nature of our Human Capital to deal with such crisis of colossal proportions."

"Being an institution of systemic importance for the region, our entire focus continues to remain on managing the crisis well while taking all the measures to serve people safely and adequately besides spurring the demand during the eased-out lockdowns. Moreover, throughout the challenging period in the region beginning August last year our entire staff successfully managed to keep all the financial services available to the people despite odds", he added.

Regarding the bank's focus areas, he further said, "Amid all the uncertainty around, we kept a sustained focus on strengthening our balance-sheet. Taking cognizance of the continued pressure on asset quality due to COVID-19 and its lasting impact, we increased our NPA Coverage ratio by more than 14 % from 64.30 % to 78.59 % while bringing down our net NPAs considerably from 4.89 % to 3.48 %", adding that the NIM at 4.10 % was among the best in the industry and the cost of deposits were brought to 4.73% from 4.98% by improving the CASA base to 53.66%.

"Liability franchise of the bank is improving with significant growth in CASA component. Saving bank deposits recorded growth of 18 % on YoY basis", he said.

"Notably, the loan-book of UTs of J&K and Ladakh have witnessed 13 % growth thereby reorienting the lending composition of the bank with J&K and Ladakh getting 63 % of total advances in country", the CMD said while explaining the bank's studied shift from corporate to retail lending.

Acknowledging the government's support throughout the history of bank especially since last year, the Chairman said, "As the promoter and majority stakeholder of J&K Bank, the UT Government of J&K has remained ever committed in its support towards the bank and timely capital infusions in recent times glaringly exemplify the same. The infusions - most recent being the Rs 500 Cr capital infused during Q4 of FY 2020 - have played a significant role in maintaining the bank's Capital Adequacy Ratio (CAR) as per Basel-III requirements besides boosting the confidence of all other stakeholders in the bank."

"Notably, the Bank staff has been working tirelessly during the recent crisis", the Chairman asserted, "and living up to the people's expectations by providing banking services across its branch networks, ATMS, digital platforms and remotely operating Business Correspondents.."

Pertinently, under the Central Government's Guaranteed Emergency Credit Line (GECL) scheme, the Bank has so far disbursed an amount of Rs 1068.74 Cr to 31069 borrowers. Besides Govt sponsored financial support to economically weaker sections, the Bank has been continuously innovating its financial offerings in order to provide much needed liquidity support and business continuity plans to the stressed business community of the region. "With inclusion of SMA2 and SMA1 borrowers under the recently launched bank's schemes i.e. JK Bank Business Support Loan and JK Bank Business Support Loan - Hotels and Guesthouses; it is expected that substantial credit shall be pumped into the regional economy on a consistent basis in order to lubricate the market with funds and mitigate the harmful shocks of devastated demand.", the chairman added.

Meanwhile, the bank has been on the forefront in terms of providing the much needed Govt funded support to economically vulnerable sections of the society during the Covid19 pandemic. An amount of Rs 126.66 Cr has been transferred to 2533288 PMJDY women accounts in three phases while as Rs 187.85 Cr were deposited into 939277 farmer accounts under the PM - Kisan.

Shares of JAMMU & KASHMIR BANK LTD. was last trading in BSE at Rs.19.08 as compared to the previous close of Rs. 19.81. The total number of shares traded during the day was 970283 in over 32592 trades.

The stock hit an intraday high of Rs. 19.6 and intraday low of 18.83. The net turnover during the day was Rs. 18506103.

Source : Equity Bulls

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