Jammu and Kashmir Bank (J&KBANK) Q4 23/24 earnings summary

Executive summary

• Achieved record net profit of ₹1,767.27 crore for FY 2023-24, up 47.6% year-over-year, the highest in the bank’s history.

• Deposits grew 10.44% to ₹1,34,774.89 crore; gross advances increased 12.57% to ₹96,981.86 crore.

• Asset quality improved: Gross NPA ratio reduced to 4.08% (from 6.04%), Net NPA to 0.79% (from 1.62%).

• Board recommended a dividend of ₹2.15 per share, subject to shareholder approval.

Financial highlights

• Net Interest Income rose 10% to ₹5,203.69 crore; Operating Profit up 23% to ₹2,276.88 crore.

• Cost-to-Income ratio improved by 398 bps to 62.24%.

• Return on Assets (ROA) at 1.22%, Return on Equity (ROE) at 18.01%.

• Capital Adequacy Ratio (Basel III) at 15.33%; CET1 at 12.02%.

• Net Worth stood at ₹10,966.77 crore as of March 31, 2024.

• Earnings per share (EPS) increased to ₹16.80 from ₹12.43.

Outlook and guidance

• RBI projects India’s GDP growth at 7.2% for FY 2024-25; bank expects continued business growth and digital expansion.

• Strategic focus on expanding digital capabilities, deepening customer relationships, and maintaining robust risk management.

• Plans to further improve cost-to-income ratio and asset quality under a 5-year business plan.