Jammu & Kashmir Bank Ltd. · NSE:J&KBANK

Jammu & Kashmir Bank — Namaste – DB Access India Conference 2012

56 slides from Jammu & Kashmir Bank's conference presentation, Mar 7, 2012

  1. Slide 1: Namaste – DB Access India Conference

    REE ESEEEREREE pleloaleaeaaeeaas Gael eelele clea Gaal bball Deutsche Bank Corporate & Investment Bank Namaste — DB Access India Conference 5-7 March 2012 — Mumbai, India

  2. Slide 2: Slide 2

  3. Slide 3: An Overview

    An Overview

  4. Slide 4: Basic Facts

    Basic Facts  Incorporated in 1938  Listed on the NSE and BSE  Rated P1+ by S&P: highest degree of safety  Four decades of uninterrupted profitability and dividends  Adjudged Best Bank in the Old Private Sector Banks category by Financial Express for FY ended March 2011 4 Notes

  5. Slide 5: One of a Kind

    One of a Kind  Private sector bank, despite government’s majority holding  Only private sector bank designated as RBI’s agent for banking business  Conducts banking business of the Central Government: — Direct Tax collection — Indirect Tax collection — Utility payment collection  Interest Subven

  6. Slide 6: Facets and Roles

    Facets and Roles  Commercial Bank  Development Financing Institution  Financial Services Provider 6 Notes

  7. Slide 7: Regional Goliath

    Regional Goliath  Dominates a region — 455 branches in the state — 399 ATMs  Controls a geography — Branches in every block of J&K  Serving a community — 86 lakh Adult population — 47 lakh Account holders of J&K Bank  Business leadership in J&K 7 Notes

  8. Slide 8: Shareholding Pattern (%)

    Shareholding Pattern (%) (24.02.2012) 7.90 11.14 2.46 0.49 53.17 24.84 Government of J&K Foreign Inst. Investors Non-Resident Indians Indian Mutual Funds Resident Individuals Bodies Corporates/ Insurance Cos/Banks/Clearing Mem. 8 Notes

  9. Slide 9: Best of both Worlds

    Best of both Worlds  Private Bank in terms of earnings, and  PSU Bank in terms of cost structure  Public ownership − Stability − Safety  Private functioning − Efficiency − Growth 9 Notes

  10. Slide 10: Subsidiaries and Investments

    Subsidiaries and Investments  J&K Bank Financial Services Ltd — Providing Depository Services — Offering Stock Broking Services  Insurance JV with MetLife International  Distributor of — Life Insurance products; partner: MetLife — General Insurance; partner: Bajaj Allianz  Shareholder in J&K Gra

  11. Slide 11: Consistent Growth & Stability

    Consistent Growth & Stability

  12. Slide 12: Decade of Development - I

    Decade of Development - I (in Rupees Crore) Year Year Year Year Year Particulars ended ended ended ended ended Mar, 02 Mar, 03 Mar, 04 Mar, 05 Mar, 06 Net Worth 937.08 1242.00 1593.74 1665.40 1799.47 Deposits 12911.1 14674.9 18661.4 21645.0 23484.6 Advances 6423.9 8011.0 9284.9 11517.1 14483.1 Inves

  13. Slide 13: Decade of Development - I

    Decade of Development - I (in Rupees Crore) Year Year Year Year Year Particulars ended ended ended ended ended Mar, 07 Mar, 08 Mar, 09 Mar, 10 Mar, 11 Net Worth 2008.73 2280.82 2622.86 3010.46 3478.68 Deposits 25194.3 28593.3 33004.1 37237.2 44675.9 Advances 17079.9 18882.6 20930.4 23057.2 26193.6 I

  14. Slide 14: Decade of Development - II

    Decade of Development - II (%) Year Year Year Year Year Ratios ended ended ended ended ended Mar, 02 Mar, 03 Mar, 04 Mar, 05 Mar, 06 Net Interest Margins 3.61 3.67 3.58 2.90 2.83 Interest Spread 3.20 3.34 3.26 2.61 2.61 Yield on Advances 11.43 10.53 9.50 8.42 8.48 Yield on Investments 11.66 10.01 8.

  15. Slide 15: Decade of Development - II

    Decade of Development - II (%) Year Year Year Year Year Ratios ended ended ended ended ended Mar, 07 Mar, 08 Mar, 09 Mar, 10 Mar, 11 Net Interest Margins 2.98 2.94 3.10 3.04 3.62 Interest Spread 2.79 2.64 2.84 2.79 3.32 Yield on Advances 8.58 10.44 11.53 10.65 10.68 Yield on Investments 6.20 6.70 6.

  16. Slide 16: Decade of Development - III

    Decade of Development - III Year Year Year Year Year Ratios ended ended ended ended ended Mar, 02 Mar, 03 Mar, 04 Mar, 05 Mar, 06 Cost to Income Ratio (%) 33.68 31.94 31.81 47.59 43.32 CD Ratio (%) 49.75 54.59 49.75 53.21 61.67 CASA Ratio (%) 34.05 33.39 30.26 32.00 34.17 Business per Employee (in R

  17. Slide 17: Decade of Development - III

    Decade of Development - III Year Year Year Year Year Ratios ended ended ended ended ended Mar, 07 Mar, 08 Mar, 09 Mar, 10 Mar, 11 Cost to Income Ratio (%) 40.13 38.24 37.81 37.60 39.77 CD Ratio (%) 67.79 66.04 63.42 61.92 58.63 CASA Ratio (%) 37.02 39.16 38.11 40.69 40.48 Business per Employee (in R

  18. Slide 18: Decade of Development - IV

    Decade of Development - IV (%) Year Year Year Year Year Ratios ended ended ended ended ended Mar, 02 Mar, 03 Mar, 04 Mar, 05 Mar, 06 Operating Expenses to AWF 1.71 1.65 1.54 1.41 1.36 Operating Expenses to Total Income 14.54 15.16 16.08 19.62 19.00 Operating expenses to Other Income 91.10 90.49 97.1

  19. Slide 19: Decade of Development - IV

    Decade of Development - IV (%) Year Year Year Year Year Ratios ended ended ended ended ended Mar, 07 Mar, 08 Mar, 09 Mar, 10 Mar, 11 Operating Expenses to AWF 1.35 1.31 1.34 1.44 1.63 Operating Expenses to Total Income 18.08 15.06 14.56 16.62 18.61 Operating expenses to Other Income 232.47 164.73 19

  20. Slide 20: Decade of Development - V

    Decade of Development - V Year Year Year Year Year Ratios ended ended ended ended ended Mar, 02 Mar, 03 Mar, 04 Mar, 05 Mar, 06 Earning per Share (in Rupees) 53.57 69.64 83.78 23.74 36.48 Net Asset Value / Book Value (in Rupees) 193.21 256.08 328.61 343.54 371.20 Adjusted Book Value (in Rupees) 168.

  21. Slide 21: Decade of Development - V

    Decade of Development - V Year Year Year Year Year Ratios ended ended ended ended ended Mar, 07 Mar, 08 Mar, 09 Mar, 10 Mar, 11 Earning per Share (in Rupees) 56.62 74.26 84.54 105.69 126.90 Net Asset Value / Book Value (in Rupees) 414.36 476.28 541.04 621.00 717.58 Adjusted Book Value (in Rupees) 37

  22. Slide 22: Slide 22

  23. Slide 23: Financial Results 9M Dec, 2011

    Financial Results 9M Dec, 2011

  24. Slide 24: Financial Results – December, 2011

    Financial Results – December, 2011 (in Rupees Crore) Financial Results Analysis (Quarter to Quarter and Nine Months ended Dec, 2011) Q3 Q3 Q1 Q2 Q3 Particulars % Change 2011-12 2010-11 2011-12 2011-12 2011-12 Interest Earned 1266.53 934.66 35.51% 1055.91 1155.60 1266.53 Interest Expended 815.74 545.

  25. Slide 25: Financial Results – December, 2011

    Financial Results – December, 2011 (in Rupees Crore) Financial Results Analysis (Quarter to Quarter and Nine Months ended Dec, 2011) % Change Q3 9M 9M Year end Particulars % Change over Q2 Dec, 11 Dec, 10 Mar, 11 Interest Earned 9.60% 3478.04 2699.27 28.85% 3713.13 Interest Expended 13.09% 2155.78 1

  26. Slide 26: Ratio Analysis – I

    Ratio Analysis – I (%) Quarter Quarter Quarter Quarter 9M 9M Year Profitability Ratios ended ended ended ended ended ended ended Dec, 11 Dec, 10 Jun, 11 Sep, 11 Dec, 11 Dec, 10 Mar, 11 Net Interest Margins 0.91 0.93 0.95 0.92 2.73 2.75 Annualized 3.63 3.70 3.82 3.69 3.64 3.67 3.62 Interest Spread 0.

  27. Slide 27: Ratio Analysis – II

    Ratio Analysis – II Quarter Quarter Quarter Quarter 9 M 9M Year Efficiency Ratios ended ended ended ended ended ended ended Dec, 11 Dec, 10 Jun, 11 Sep, 11 Dec, 11 Dec, 10 Mar, 11 Cost to Income Ratio (%) 38.30 39.88 37.25 38.13 37.90 37.86 39.77 CD Ratio (%) 60.96 62.05 61.29 59.54 60.96 62.05 58.6

  28. Slide 28: Ratio Analysis – III

    Ratio Analysis – III (%) Quarter Quarter Quarter Quarter 9 M 9M Year Operating Ratios ended ended ended ended ended ended ended Dec, 11 Dec, 10 Jun, 11 Sep, 11 Dec, 11 Dec, 10 Mar, 11 Operating Expenses to AWF (Ann.) 1.49 1.63 1.51 1.51 1.47 1.56 1.63 Operating Expenses to Total Income 14.99 18.40 1

  29. Slide 29: Ratio Analysis – IV

    Ratio Analysis – IV Quarter Quarter Quarter Quarter 9M 9M Year Valuation Ratios ended ended ended ended ended ended ended Dec, 11 Dec, 10 Jun, 11 Sep, 11 Dec, 11 Dec, 10 Mar, 11 Earnings per Share 43.98 34.63 37.60 41.18 122.76 98.32 (in Rupees) Annualized 175.91 138.52 150.41 164.74 163.68 131.10 1

  30. Slide 30: Geographical Break-up

    Geographical Break-up (in Rupees Crore ) As on Dec 31, 2011 From J&K State From Rest of India S. Particulars No. Amount % age Amount % age 1 Deposits 32008.2 71 13315.8 29 2 CASA Ratio - 52 - 13 3 Gross Advances 12006.5 40 18005.3 60 4 Gross Profit (Excluding Controlling Offices) 637.15 71 254.80 29

  31. Slide 31: Deposits, Compositional Break-up (Dec 11)

    Deposits, Compositional Break-up (Dec 11) (in Rs crore) 4621 14974 29184 Current 9 % Savings 31 % Term 60 % 31 Notes

  32. Slide 32: Advances – Sector-wise (Dec 11)

    Bank as Whole (%) 9 Agriculture 9 Trade Personal Advances – SME 56 17 Others Sector-wise Corporate 8 (Dec 11) 1 In Rest of India (%) 6 4 5 3 1 81 Agriculture Trade Personal SME Others Corporate Within J&K (%) 13 17 1 16 16 36 Agriculture Trade Personal SME Others Corporate 32 Notes

  33. Slide 33: Investments, (Dec 11) – I

    Investments, (Dec 11) – I (in Rs crore) 6636 13203 Held to Maturity 67 % Available for Sale 33 % Duration 3.88 3.71 6 2.86 4 2 0 HTM AFS Total 33 Notes

  34. Slide 34: Investments, (Dec 11) – II

    Investments, (Dec 11) – II (in Rs. crore) 8847 10992 SLR Securities 55 % Non-SLR Securities 45 % Yield (on daily average balances for 9M 7.63 7.19 7.34 10 8 6 4 2 0 SLR Securities Non-SLR Securities Total Portfolio 34 Notes

  35. Slide 35: Industry Review

    Industry Review

  36. Slide 36: Return on Assets (%)

    Return on Assets (%) For 9M ended Dec, 2011 2.00 1.80 1.7 1.61 1.60 1.42 1.43 1.45 1.40 1.26 1.16 1.20 1.07 1.11 0.95 1.00 0.79 0.72 0.80 0.61 0.60 0.40 0.20 0.00 36 Notes

  37. Slide 37: Return on Equity (%)

    Return on Equity (%) For 9M ended Dec, 2011 24.15 25.00 20.77 21.01 19.86 20.04 18.89 20.00 18.05 18.57 14.17 15.00 12.65 13.3 11.10 10.00 5.00 0.00 37 Notes

  38. Slide 38: Cost to Income (%)

    Cost to Income (%) For 9M ended Dec, 2011 59.80 60.00 55.00 48.36 50.00 45.97 44.42 44.70 42.97 43.5 45.00 41.56 40.45 41.08 40.00 37.89 37.90 38.94 35.00 30.00 38 Notes

  39. Slide 39: CASA Ratio (%)

    CASA Ratio (%) As on Dec, 2011 50.25 47.7 43.6 44.69 45.25 42 40.17 40.25 36.2 35.25 32.54 32.59 30.74 31.3 30.25 24.07 25 25.25 21.1 20.25 15.25 10.25 5.25 0.25 39 Notes

  40. Slide 40: Net Impaired Loans (%)

    Net Impaired Loans (%) As on Dec, 2011 2.50 2.22 2.04 1.88 2.00 1.49 1.50 1.11 0.96 1.00 0.79 0.8 0.83 0.50 0.31 0.39 0.16 0.2 0.00 40 Notes

  41. Slide 41: Coverage Ratio (%): Highest in India

    Coverage Ratio (%): Highest in India As on Dec, 2011 100.00 94.07 90.00 80.3 84.98 78.03 78.9 80.00 75.28 76.50 70.01 70.00 62.52 62.88 63.14 60.00 51.22 50.00 40.00 30.00 20.00 41 Notes

  42. Slide 42: Tier I Capital (%) (Basel II)

    Tier I Capital (%) (Basel II) As on Dec, 2011 14.00 13.13 12.00 10.99 11.2 11.44 9.48 9.55 10.00 8.91 8.25 7.59 7.79 7.85 7.87 7.98 8.00 6.00 4.00 2.00 0.00 42 Notes

  43. Slide 43: Earnings per Share (Rs.)

    Earnings per Share (Rs.) For 9M ended Dec, 2011 120.59 122.76 120.00 109.22 100.00 77.15 80.00 71.98 55.39 60.00 39.61 40.00 30.80 31.80 19.33 23.32 13.64 15.9 20.00 0.00 43 Notes

  44. Slide 44: Book Value (Rs.)

    Book Value (Rs.) As on Dec, 2011 1200 1,134 1100 1000 900 840 800 742 700 529 537 560 600 500 423 400 233 261 300 210 217 200 97 126 100 0 44 Notes

  45. Slide 45: Price to Book Value

    Price to Book Value As on Dec, 2011 4.0 3.39 3.5 3.0 2.5 2.0 1.43 1.51 1.5 1.29 1.05 1.11 0.85 0.86 0.95 1.0 0.63 0.73 0.47 0.55 0.5 0.0 45 Notes

  46. Slide 46: PE Ratio

    PE Ratio As on Dec, 2011 30.0 25.0 20.13 20.0 15.0 12.96 8.42 9.34 10.07 10.0 6.59 5.36 4.36 4.89 4.94 5.0 2.50 2.80 3.40 0.0 46 Notes

  47. Slide 47: Dividend Yield (%)

    Dividend Yield (%) For FY ended Mar, 2011 4.0 3.5 3.14 3.21 3.22 3.0 2.61 2.5 2.30 1.87 2.0 1.76 1.81 1.5 1.25 1.08 0.93 1.00 1.0 0.70 0.5 0.0 47 Notes

  48. Slide 48: Slide 48

  49. Slide 49: J&K Bank - Ground work done for growth

    J&K Bank - Ground work done for growth  Capital Adequacy at 13.62%, Tier I 11.43% & Tier II 2.19% — No constraints for raising additional Tier I capital  Raised Rs 600 crore as long-term resource in the form of Tier II capital — Headroom of about Rs 1246 crore more available  Made liabilities the

  50. Slide 50: J&K State – Potential

    J&K State – Potential  J&K accounts for 0.6% of India’s GDP, and yet absorbs only 0.30% of total national credit  J&K accounts for 1% of India’s population and yet accounts for only 0.2% of India’s personal credit  Credit in J&K needs to increase five-fold and Personal Credit in J&K has to triple

  51. Slide 51: J&K State – Business Strategy

    J&K State – Business Strategy  Increase lending in J&K, which is high margin, low volume  Leveraging our core competence of domain and geographical expertise.  Bridging Credit Gap in J&K with focus on potential and under-serviced sectors 51 Notes

  52. Slide 52: Outside State – Business Strategy

    Outside State – Business Strategy National focus on  Rebuilding Corporate Loan Book  Improving WC to TL Ratio  Impetus on SME / Retail sector lending in smaller cities 52 Notes

  53. Slide 53: Road Ahead – up to March 2013

    Road Ahead – up to March 2013  To achieve Rs. 1000 crore profit and Rs. 100000 crore business by 2013 Targets  CASA 40% to 45%  NIMs 3.5% to 4%+  ROA 1.3% to 1.5%+  ROE 19% to 22%  Advances 25% CAGR  Deposits 20% CAGR  Cost/Income 35-40%  Loan/Deposit 60% to 65%  PCR Above 90% 53 Notes

  54. Slide 54: Road Ahead

  55. Slide 55: Notes

    Notes

  56. Slide 56: www.jkbank.net

    www.jkbank.net

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