Jammu & Kashmir Bank Ltd. · NSE:J&KBANK
Jammu & Kashmir Bank — Q3 FY2022-23 Earnings Presentation
32 slides from Jammu & Kashmir Bank's earnings presentation, December 2022
Slide 1: Investor Presentation – Q3 / 9M FY 2022-23
Investor Presentation – Q3 / 9M FY 2022-23
Slide 2: Disclaimer
Disclaimer This presentation has been prepared for informational purpose only by the Jammu and Kashmir Bank Limited (the “Bank”). The Bank, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accu
Slide 3: Snapshot of J&K UT and J&K Bank
SNAPSHOT OF J&K UT AND J&K BANK DEMOGRAPHY, PROFILE Banking habits of J&K
Slide 4: Demography of Jammu & Kashmir (J&K)
Demography of Jammu & Kashmir (J&K) 42,241 Sq. Kms. - The UT is bounded on the South by Himachal Pradesh and the Punjab, on the South-West and West by Pakistan, on the Total Area of the State North by China, Afghanistan and a little of Tajikistan, and on the East by Chinese Tibet. The State ranks 17
Slide 5: Highlights – Dec 2022
Highlights – Dec 2022 Founded: 01 October, 1938 Headquarters: Srinagar, Jammu and Kashmir One of the oldest Private Sector Bank. Founded 1938. Promoters: J&K and Ladakh UT Governments Government of JK and Ladakh UTs share holding of 68.03% | Listed on BSE & NSE (68.03%) Number of Branches: 989
Slide 6: Dominance of J&K Bank in JKUT
Dominance of J&K Bank in JKUT INR Crore JKB Share in J&K (Dec-2022) Regional Dominance • 825 Branches / 1286 ATMs in J&K UT JK Bank Other SCBs • Branch in every block of J&K UT and 37% 39% 38% Ladakh UT • Over 10 Million account holders in J&K UT 63% 61% 62% • Captive Clientele – J&K / Ladakh Govern
Slide 7: J&K Bank - Brief Financial Profile
J&K Bank - Brief Financial Profile INR. Crore Particulars FY 2021-22 Q3 2021-22 Q3 2022-23 9M 2021-22 9M 2022-23 Geographic Distribution (Dec’2022) Capital 93.30 93.30 96.16 93.30 96.16 Reserves 8013.86 7808.16 8732.06 7808.16 8732.06 Region J&K UT Rest of India Total Deposits 114710.38 109298.40 11
Slide 8: Performance Analysis
PERFORMANCE ANALYSIS PAST PERFORMANCE AND COMPETITIVE BENCHMARKING 8
Slide 9: Historical Performance Parameters
Historical Performance Parameters Profit & Loss Balance Sheet INR Cr INR Cr Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Particulars Particulars Mar’ 18 Mar’ 19 Mar’ 20 Mar’ 21 Mar’ 22 Mar’ 18 Mar’ 19 Mar’ 20 Mar’ 21 Mar’ 22 Interest I
Slide 10: Historical Performance Parameters Cont.
Historical Performance Parameters Cont. Interest Spread/Margins Capital Adequacy/Asset Quality 9.38% 9.48% 13.23% 8.77% 12.46% 12.20% 8.54% 8.32% 11.42% 11.40% 10.97% 9.96% 9.67% 8.97% 5.01% 4.98% 4.96% 8.67% 4.10% 3.65% 4.90% 4.89% 3.84% 3.92% 3.65% 3.64% 3.50% 3.48% 2.95% 2.49% FY 17-18 FY 18-19 F
Slide 11: Historical Performance Parameters Cont.
Historical Performance Parameters Cont. Book Value Per Share (INR) Return on Equity 110.6 108.11 8.04% 7.68% 7.77% 3.42% 82.04 75.65 75.72 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 -19.96% FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Return on Assets Cost to Income Ratio 0.49% 0.38% 0.42% 77.18%
Slide 12: Liability Trends
Liability Trends INR Crore Deposit Mix (INR Crores) CASA Ratio (%) 56.32 56.56 55.74 54.69 53.71 47737 49836 49637 52435 54596 48955 50477 50095 50639 50644 Q3' 21-22 Q4' 21-22 Q1' 22-23 Q2' 22-23 Q3' 22-23 12606 14398 12412 12640 12696 Q3 21-22 Q4 21-22 Q1 22-23 Q2 22-23 Q3 22-23 CASA + Retail term
Slide 13: Key Performance Indicators
Key Performance Indicators …Gradually Improving Parameters (Q3’FY22-23) Steady Developments Leading To… Net Interest Income Non Interest Income Operating Profit KPIs Q3 ‘21-22 Q4 ’21-22 Q1 ’22-23 Q2 ’22-23 Q23’22-23 RoE (%)# 2.54 1.60 2.31 3.27 4.03 1257 242 RoA (%)# 0.14 0.09 0.13 0.18 0.23 CR CR 5
Slide 14: Key Performance Indicators (INR Crore)
Key Performance Indicators (INR Crore) Income Statement Q3 FY2022-23 Balance Sheet Dec. 2022 Change Particulars Dec’21 Mar’22 Jun’22 Sept’22 Dec’22 YoY Particulars Dec’21 Mar’22 Jun’22 Sept’22 Dec’22 % YoY Assets (Total B.S) 123809.40 130602.41 128375.77 131346.31 133939.40 8% Net Interest Income 99
Slide 15: Income & Expenditure Highlights
Income & Expenditure Highlights INR Crore Income Highlights Q3 FY 22-23 Expense Highlights Q3 FY 22-23 Q3 Q4 Q1 Q2 Q3 Change Q3 Q4 Q1 Q2 Q3 Change Interest Income 21-22 21-22 22-23 22-23 22-23 YoY% Interest Exp 21-22 21-22 22-23 22-23 22-23 YoY% Loans And Advances 1534.50 1497.34 1536.47 1747.17 185
Slide 16: Income & Margins Highlights
Income & Margins Highlights Net Interest Income (INR Crores) Net interest margins (%) 1,257.38 1,204.12 4.04 4.10 3.56 3.46 1,034.23 3.41 993.29 975.50 Q3 21-22 Q4 21-22 Q1 22-23 Q2 22-23 Q3 22-23 Q3 21-22 Q4 21-22 Q1 22-23 Q2 22-23 Q3 22-23 Cost of deposits (%) Yield on advances (%) 3.85 9.34 9.01
Slide 17: Liability Trends
Liability Trends INR Crore Maturity Profile Of Term Deposits • Highly Diversified and Stable Liability Franchise. 3014, 6% 8537, 16% 3553, 6% • Top 20 depositors contribute just 8% of total deposits. 0 to 1 year • Inter-bank deposits less than 1.50% of total deposit. 1 to 3 years • High roll over of
Slide 18: Loans & Advances – Asset Quality & Diversification
Loans & Advances – Asset Quality & Diversification INR Crore • 79% of Standard rated Corporate Loan portfolio rated ‘A’ & Above. ADVANCES REGION WISE • Retail Advances constitute 67% of total Loan Book; Retail growth @ 11% YOY • Personal Loans constitute 54% of Retail Book and 36% of Total Loan Book
Slide 19: Loans & Advances - NPAs
Loans & Advances - NPAs INR Crore Non-Performing Assets – Movement Q 3 FY Q 4 FY Q 1 FY Q 2 FY Q 3 FY Particulars ’21-22 ’21-22 ’22-23 ’22-23 ’22-23 % Change YoY Balance at the start of the period 6524.86 6508.80 6520.54 6982.02 6064.67 -7% Additions during the period 803.06 1010.66 2205.94 1761.25
Slide 20: NPA Sector Wise
NPA Sector Wise INR Crore Non-Performing Assets – Sector Wise Breakup as on 31.12.2022 • Personal Finance mainly constituted of Loans to Governmet Sector Gross Advances Exposure % Gross NPA GNPA% Employees / Pensioners of JK and Ladakh Uts – lowest delinquency. Personal Finance 30817.03 38% 359.05 1
Slide 21: Loans & Advances – Restructured Loans
Loans & Advances – Restructured Loans INR Crore Restructured Loans – Dec’22 Sector-wise re structured Loans – Dec’22 700 Particulars Standard NPA Total Restructured 600 500 J&K Amount Prov. Amount Prov. Amount Prov. 400 Flood 2014 / Unrest 2016 300 39.24 1.96 350.49 266.43 389.73 268.39 200 Rehab-20
Slide 22: Investment Book
INR Crore Investment Book Investment – Dec’22 B&D - Rating Profile in Percent (Dec’22) NPIs: Rs 876 Cr 951.50 Prov. Ag NPIs: Rs Dec, 2021 781.25 19.98% 28573.01 Coverage 89%Cr AAA 18.79% 61.23% B 5162.26 Dec, 2022 * Investment D 28311.09 predominantly in SLR NON SLR SECURITIES SLR securities; 85% Yi
Slide 23: Capital Position
Capital Position INR Crore CRAR & Components of Capital Recent Capital Infusion by J&K Govt Component FY 19-20 FY 20-21 FY‘22 Q3 FY’23 FY Shares Issue Price (Rs.) Amount CET-I % 8.42 8.82 10.35 9.45 2016-17 36555051 68.39 250.00 Tier -I % 9.88 10.28 11.73 10.77 2017-18 35525321 79.38 282.00 Tier -II
Slide 24: Digital Journey
DIGITAL JOURNEY 24
Slide 25: Accelerating Digital Delivery
ACCLERATING DIGITAL DELIVERY More than 1.8 Million M-pay Customers. New user-friendly M-Pay Delight App launched with multiple features. Mpay About 86K and 37.5 L Credit and Debt card users with an average spend of Rs. 43K on credit cards. Credit/Debit Cards About 84% of the total transactions are c
Slide 26: Digital Channels - The Way Ahead
Digital Channels - THE WAY AHEAD Loyalty programs on all digital channels of the Bank. Interactive Phone banking services like SMS, Missed Call banking etc. WhatsApp Banking and chat bots EMI on debit cards Virtual Cards TAB Banking 26
Slide 27: Future Strategies
FUTURE STRATEGIES Sustained growth & Profitability 27
Slide 28: Overall Business Strategy
Overall Business Strategy 1 Business Plan • Adoption & implementation of 3 - 5 year business plan. • Product strategy and roadmap on various business offerings. • Capital planning in line with the five year business plan. • Business Focus & Objective – Retail, High quality Corporate / PSU, Better As
Slide 29: Targets FY 2023
Targets FY 2023 EXPECTED PARAMETERS DEPOSIT GROWTH MISSION ADVANCES GROWTH of ~ 10% 2022-23 of ~ 15% GNPA NNPA NIM ~ 6% ~ 2% PCR CRAR ~ 3.90% ~ 85% ~ 15% CASA Credit ~ 53% Cost ROA ROE < 1% ~ 80% ~ 13% 29
Slide 30: J&K Bank – A Value Proposition
J&K BANK – A VALUE PROPOSITION 30
Slide 31: Investment Rationale
Investment Rationale JK Bank - One of A Kind A Regional Goliath Unique blend of Commercial Bank, Development • The dominant bank in J&K and Ladakh with 825 & 37 branches, 1286 & 53 ATMs respectively in the two UTs, thus Financial Institution & covering the entire 2 UTs with branches in every block
Slide 32: Thank You.
Thank You. 32
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