Q4 2024 Jammu and Kashmir Bank Ltd Earnings Call Transcript
Key Points
- Jammu & Kashmir Bank Ltd (BOM:532209) reported a strong Q4 performance with double-digit deposit growth and 14% loan growth, in line with market guidance.
- The bank's gross NPA ratio improved to 4.08%, and net NPA ratio to 0.79%, with a provision coverage ratio (PCR) of 91.58%, reflecting strong asset quality.
- The bank achieved a record-breaking profit of INR 1,767.27 crore for FY24, a 48% increase YoY.
- Retail deposits constitute 88% of the total deposits, and the bank maintained a CASA ratio of 50.51%, indicating a strong deposit base.
- The bank's capital adequacy ratio improved to 15.33%, with a CET1 ratio of 12.02%, ensuring a strong capital position.
- The bank's net interest income (NII) growth was limited to 10% YoY due to a higher rise in interest expenditure at 30% YoY.
- The cost of deposits increased, putting pressure on margins, with the weighted average term deposit rate rising to 7.2%.
- The bank's fee income as a percentage of assets remains suboptimal at 40 basis points, compared to the industry average of 90-100 basis points.
- There were significant slippages in the MSME and agriculture sectors, although the amounts were small and recoveries are expected.
- The bank's exposure to infrastructure projects with pending DCCO (Date of Commencement of Commercial Operations) is INR 1,416 crore, which may require higher provisioning.
Ladies and gentlemen, good day, and welcome to Jammu and Kashmir Bank Q4 FY24 results conference call hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Chetan Shah from ICICI Securities.
Thank you, and over to you, sir.
Yeah. Thank you, Sagar. Good evening, everyone, and welcome to the Q4 FY24 Results Conference Call for Jammu and Kashmir Bank. We have with us from the management, Mr. Baldev Prakash, Managing Director and CEO, along with the management team.
Before starting, I would like to congratulate the management of our excellent set of numbers and a healthy Q4.
So yeah. Now without further delay, I would now like to hand over the floor to the management. Thank you, and over to you sir.
Thank you, Chetan. Very good afternoon and a warm welcome to all the participants in the J
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