The state-owned lender, Jammu and Kashmir Bank (J&K) has reported rise in net profit by 36 per cent to Rs 289 crore for the third quarter of the current financial year. The jump in net profit was because of the higher interest income and strong loan growth in the October-December period.
Net interest income (NII) increased by 32 per cent to Rs 594 crore in Q3FY13 against Rs 451 crore in the corresponding period of the last fiscal. Non-interest income increased by 23 per cent to Rs 91 crore against Rs 74 crore for year ago period.
As on December 31, 2012, total advances grew by 20 per cent at Rs 35,658 crore, while deposits increased by 17 per cent at Rs 57,075 crore. Provisions during the third quarter increased to Rs 22 crore as compared to Rs 18 crore for the corresponding period of the previous year.
Net interest margins (NIM) increased to 4.07 per cent against 3.60 per cent for a year ago period. Capital adequacy ratio stood at 13.82 per cent as on December 31, 2012.