While the entire banking sector is wary of the dwindling economy, and rising bad loans, Srinagar based lender, Jammu& Kashmir Bank is hopeful of a better performance in this fiscal.
The bank has seen an improvement in its asset quality in the past two quarters, and has increased its profitability mainly through better margins. The bank also hopes to capitalize the economic growth the state has shown and increase its advances by 25%.
The government of J&K owns 53% of the stake in the bank, and it is the leading bank in the state. The bank saw an increase of 14.3% in its loan book over the past 5 years compounded annually.
The lender intends to increase the advances by capturing horticulture and apple farmers.
The net interest income or the income from core operations has increase by 16-24%; the bottomline grew by over 25%.
There has been an increase in its current account savings account (CASA), which increased from 40.48% to 40.71% over the year. The deposits and advances grew by 19% and 26%, well above the industry average of 16%.