Stock Market

J&K Bank plunges 18% on growth woes, may see losses in FY17

Shares of Jammu and Kashmir Bank crashed 18 percent intraday Thursday on growth concerns. According to CNBC-TV18 sources, the bank is likely to post losses for next couple of quarters and FY17. It is learnt that, the management in its conference call with few analysts, said that the bank’s consolidation of balance sheet may take 4-6 quarters.

The management also said that the bank will not declare dividend for next two years and all exposures in J&K state are under SMA-2 category. The bank is expecting restructuring of Rs 10,000 crore of loans in J&K.

The Srinagar-headquartered bank’s net profit plunged 85.6 percent to Rs 22.88 crore for the first quarter ended June 30.

However, the bank fared better when sequentially compared, as it had reported a loss of Rs 56.02 crore in the last quarter of the previous fiscal. Total income fell to Rs 1,789.05 crore during the quarter under review as against 1,888.35 crore in the same period a year ago, the bank said in a regulatory filing. Provisioning of Rs 313.70 crore was made for bad loans in the first quarter over Rs 212.87 crore year ago.
Its gross non-performing assets (NPAs) rose to 9.31 percent of gross advances as on June 2016, up 6.63 percent a year ago. Net NPAs were at 6.19 percent of net advances as against 2.95 percent a year ago. Gross NPAs stood at Rs 4,714.92 crore in the June quarter against Rs 2,994.50 crore year ago. The net NPAs increased to Rs 3,023.47 crore from Rs 1,276.76 crore.

At 13:16 hrs Jammu and Kashmir Bank was quoting at Rs 72.40, down Rs 14.70, or 16.88 percent on the BSE.