Jammu & Kashmir Bank Ltd. · NSE:J&KBANK
Jammu & Kashmir Bank — The Jammu & Kashmir Bank — Q2 FY2025 Earnings Presentation
38 slides from Jammu & Kashmir Bank's earnings presentation, Oct 25, 2024
Slide 1: Filing cover letter to NSE and BSE
Jammu and Kashmir Bank Limited Corporate Headquarters T +91 (0)194 248 3775 W www.jkbank.com M A Road, Srinagar 190001 F +91 (0)194 248 1928 E board.sectt@jkbmail.com Kashmir, India CIN: L65110JK1938SGC000048 Board Secretariat Ref:-JKB/BS/F3652/2024/204 Date: 25th October, 2024 National Stock Exchan
Slide 2: Investor Presentation for Quarter and Half Year Ended September 30, 2024
Investor Presentation for Quarter and Half Year Ended September 30, 2024 10/25/2024 1
Slide 3: Disclaimer
Disclaimer The Jammu and Kashmir Bank has created this presentation exclusively for general informational reasons, disregarding any individual's informational demands, financial circumstances, or special goals. Except for the historical information contained herein, statements in this presentation t
Slide 4: Jammu and Kashmir Bank Limited – Oldest Private Sector Bank in India
Jammu and Kashmir Bank Limited – Oldest Private Sector Bank in India • Jammu and Kashmir Bank Limited, was incorporated on October 1, 1938 and today caters to a wide range of customers including retail, (₹ CRORE ) 226385 236552 235923 241838 corporate, agricultural, and MSME. 222653 101777 103350 10
Slide 5: Journey of 8 Decades
2021-2024 Journey of 8 Decades Global CSR Excellence & Leadership Award Top Banker Award for PMEG Total Business crossed ₹ 2 lakh crore in Fiscal 2023 Prestigious ‘Times Now India’s Impactful CEO - Listing on Stock 2000s 2023’ Award bestowed upon MD & CEO Baldev Exchanges Prakash Licensed
Slide 6: Interest Earnings and Advances Mix
Interest Earnings and Advances Mix 3500 3,124 3000 2,994 3.7% 2,881 2,910 3.4% 2,764 3.0% 3.5% Gross Advances Mix – September 30, 2024 2.5% 20.8% 20.4% 2500 19.6% 19.7% 20.2% 32% 2000 68% 1500 Corporate Advances Retail Advances 76.9% 76.3% 75.5% 77.2% 77.4% 1000 Gross Advances Mix – June 30, 2024 50
Slide 7: Q2/HY1 FY25 Performance
Q2/HY1 FY25 Performance Q2 Q1 Q2 HY 1 HY 1 Particulars FY 2023-24 FY 2024-25 FY 2024-25 FY 2023-24 FY 2024-25 Net Interest Income 1,333.83 1,369.23 1,435.93 2,617.13 2,805.15 Other Income 190.31 194.10 296.08 418.58 490.18 Operating Expenses 989.67 968.65 945.02 1,973.19 1,913.67 Operating Profit 53
Slide 8: Q2 FY25 Performance at a Glance (YoY)
Q2 FY25 Performance at a Glance (YoY) Profitability Growth Capital Adequacy Asset Quality NIM Deposits Tier I GNPA (%) (Annualized) ₹ 1,37,918 crores 12.70% 3.95% 3.90% Up 9.0% (was 11.68%) (was 5.26%) (was 4.07%) PAT Net Advances CET 1 NNPA (%) ₹ 551 crores ₹ 96,139 crores 11.66% 0.85% Up 44.6 % Up
Slide 9: Q2 FY25 – Key Financial Ratios
Jammu and Kashmir Bank Limited | Q2 FY25 – Key Financial Ratios Cost of Deposits (%) Cost of Funds (%) 4.95 4.83 4.91 4.82 4.78 4.71 4.66 4.80 4.55 4.38 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Yield on Advances (%) Yield on Investments (%) 9.78 6.73 6.78 6.74 6.68 6.67
Slide 10: Q2 FY25 – Key Financial Ratios
Jammu and Kashmir Bank Limited | Q2 FY25 – Key Financial Ratios Return on Assets - Annualized (%) Return on Average Networth - Annualized(%) 25 23.74 1.69 20 1.08 1.41 18.71 15 1.15 1.08 16.59 16.89 14.82 10 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Earnings Per Share - A
Slide 11: Key Strengths of the Bank
Key Strengths of the Bank 1 Strong legacy, loyal customer base and an established brand with over 85 years of operations 2 Strong presence in fast growing region of J&K and increasing presence in other strategic regions 3 Healthy mix of retail in overall advances mix with focus on MSME and agricultu
Slide 12: Strong presence in JKL Region and increasing presence across India
Strong presence in JKL Region and increasing presence across India Branches in 871 J&K and Ladakh (JKL) Urban, 11%, Branches Semi 137 outside JKL Urban, 16%, Branch Distribution Rural, Network 54%, 1424 ATMs Metro, 19%, 22 States / UTs ROI, ROI, 10.6%, 28.2%, Total Gross Advances Deposits JKL, JKL,
Slide 13: Fast improving digital presence
Fast improving digital presence Credit Card Users Debit Card Users (in number) (In Lacs) 123425 120788 46.06 117847 44.17 113166 43.07 108164 41.11 41.65 SEP-23 DEC-23 MAR-24 JUN-24 SEP-24 SEP-23 DEC-23 MAR-24 JUN-24 SEP-24 Internet Banking Users Mobile Banking Users (In Lacs) (In Lacs) 26.78 6.88 2
Slide 14: Professionally managed Bank with experienced SMPs and Board Of Directors
Professionally managed Bank with experienced SMPs and Board Of Directors MR. BALDEV PRAKASH (MD & CEO ) MR. NABA KISHORE SAHOO •Over three decades with the country’s largest bank •Nearly 4 decades of experience and risen through the ranks •Multiple degrees and diplomas offered by the IIBF : CAIIB, D
Slide 15: Key Strategies
Key Strategies Focus on improving asset quality and maintaining NPA levels and avoiding slippages Emphasis on retail, agriculture and MSME segment Increase CASA Deposit Base and reduce cost of funds Continue our investments in technology to support our digital banking and reduce the cost Expand beyo
Slide 16: Condensed Profit And Loss Account
Condensed Profit And Loss Account Change Q2 Q1 Q2 Change YoY Change QoQ HY 1 HY 1 YoY FY 2023-2024 Particulars FY 2023-24 FY 2024-25 FY 2024-25 (%) (%) FY 2023-24 FY 2024-25 (%) Interest Earned 2,764.15 2,994.39 3,123.55 13.0 4.3 5,421.23 6,117.93 12.9 11,212.37 Interest Expended 1,430.32 1,625.16 1
Slide 17: Condensed Balance Sheet
Condensed Balance Sheet Particulars Sep 30, 2023 Jun 30, 2024 Sep 30, 2024 Capital & Liabilities Capital 103.16 110.13 110.13 Reserves and Surplus 10,547.60 12,615.82 13,233.92 Deposits 1,26,589.73 1,32,573.13 1,37,918.27 Borrowings 3,782.77 4,525.98 2,884.46 Other Liabilities and Provisions 4,596.1
Slide 18: Turnaround Story with Decadal High PCR and improvement in asset quality
Turnaround Story with Decadal High PCR and improvement in asset quality Gross & Net NPA (%) Provision Coverage Ratio (%) 5.26 4.84 91.61 91.58 91.57 4.08 3.91 3.95 GNPA 90.54 NNPA 89.99 1.04 0.83 0.85 0.79 0.76 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 CREDIT COST (%) Gro
Slide 19: Interest Expenditure and Operating Expenditure
Interest Expenditure and Operating Expenditure 1800 1200 1,688 1,601 1,604 1,625 4.7% 1600 5.5% 5.1% 4.7% 1000 990 969 1,430 459 1400 6.2% 912 867 867 27.1% 28.8% 1200 800 30.4% 30.4% 1000 44.2% 600 800 95.3% 94.9% 95.3% 94.5% 93.8% 600 400 72.9% 71.2% 69.6% 69.6% 400 55.8% 200 200 0 0 Dec- Mar- Mar
Slide 20: Key Ratios and Performance Indicators
Key Ratios and Performance Indicators Particulars Q2 FY 2024 Q1 FY 2025 Q2 FY 2025 HY 1 FY 2024 HY 1 FY 2025 Profitability Net Interest Margin (%) - Annualized 4.07 3.86 3.90 4.03 3.88 Operating Profit (₹ crore) 534.47 594.67 786.99 1,062.52 1,381.66 Profit after Tax (₹ crore) 381.07 415.49 550.92 7
Slide 21: Capital Adequacy Ratios
Capital Adequacy Ratios Sep 30, 2023 Jun 30, 2024 Sep 30, 2024 Particulars Capital Adequacy Ratio Risk Weighted Assets 15.33 15.07 14.99 Credit Risk 71,206 83,920 86,458 14.53 14.18 Market Risk 1,285 1,505 113 Operational Risk 8,896 9,937 9,937 13.09 12.81 12.70 Total Risk Weighted Average 81,387 95
Slide 22: Asset Quality | Categories of Advances
Asset Quality | Categories of Advances September 30, 2023 September 30, 2024 Category Amount % of Gross Advances Amount % of Gross Advances Standard 86,900 94.74 95,326 96.05 Sub-Standard 498 0.54 444 0.45 Doubtful 3,405 3.71 2,629 2.65 Loss 924 1.01 843 0.85 Gross Advances 91,727 100.00 99,242 100.
Slide 23: Asset Quality | Movement of Gross NPAs
Asset Quality | Movement of Gross NPAs Particulars Q2 FY 2024 Q1 FY 2025 Q2 FY 2025 HY 1 FY 2024 HY 1 FY 2025 At a Gross NPA Level Opening Balance 5,104 3,956 3,858 5,204 3,956 Additions during the period 225 174 256 509 430 Upgradations during the period 235 94 93 458 188 Write off (including TWO)
Slide 24: Sector-Wise Credit Deployment and NPA (As of September 30, 2024)
Sector-Wise Credit Deployment and NPA (As of September 30, 2024) Sector Gross Advances Exposure (%) Gross NPA GNPA (%) Personal Finance 38,726.18 39.02% 322.43 0.83% Trade 11,593.82 11.68% 814.82 7.03% Financial Markets 10,391.86 10.47% 625.23 6.02% Agriculture 9,685.32 9.76% 424.30 4.38% Services 9
Slide 25: Gross Advances Mix
Gross Advances Mix Personal Finance Trade & Services Manufacturing Financial Markets Agriculture Others 88,402 86,156 82,035 79,113 96,982 98,580 99,242 91,727 93,538 11.8 % 10.7 % 12267 13.4 % 11.6 % 9.7 % 9.6 % 9685 11.5% 11.0 % 11.6 % 11.1 % 10392 5.9 % 10.2% 7.8 % 9.2 % 7084 8.5 % 9.0 % 20.9 % 2
Slide 26: Consistently growing deposit base with best-in-class low-cost retail CASA
Consistently growing deposit base with best-in-class low-cost retail CASA 1,34,775 1,32,573 1,37,918 1,26.590 1,28,542 49.4% 49.5% 50.2% 51.4% 49.4% 40.4% 40.1% 39.5% 39.5% 38.7% 10.2% 10.5% 11.0% 10.3% 9.9% Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Term Deposits 62520 63507 66702 66592 70883 Savings Depos
Slide 27: Investments Profile
Investments Profile 45000 40000 38,741 Duration of Investments (In years) 34,987 35000 32,643 33,066 31,576 30000 3.44 63.5% 25000 69.7% 20000 83.1% 85.6% 86.5% 3.29 3.21 3.23 15000 3.18 10000 34.3% 5000 28.6% 14.3% 13.4% 16.9% 0 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 HTM 27958 27312 29070 23032 24617 S
Slide 28: Asset Quality | External Rating of Corporate Advances
Asset Quality | External Rating of Corporate Advances (As on September 30, 2024) Rating No. of Borrowers Outstanding Amount Percentage (%) AAA 23 15,165 60.17 AA 17 2,981 11.83 A 14 2,020 8.01 BBB 19 1,267 5.03 BB & Below 168 2,795 11.09 Unrated Borrowers (Due to be rated) 51 976 3.87 Total Eligible
Slide 29: Asset Quality | Restructuring of Advances
Asset Quality | Restructuring of Advances (as on September 30, 2024) Standard NPA Total Sector BOS Provisions BOS Provisions BOS Provisions Services 207.01 11.68 180.83 152.41 387.84 164.09 Infrastructure 13.08 1.01 45.30 36.98 58.38 37.99 Manufacturing 215.41 13.55 262.68 187.75 478.09 201.30 Trade
Slide 30: Awards and Accolades
Awards and Accolades Second best award for J&K Bank MD Baldev Prakash Best MSME Bank at MSME promoting Government honoured with prestigious Banking Excellence Awards Schemes under ‘Private Bank’ Times Now India’s Impactful (2023) category at MSME Banking CEO – 2023 Award Excellence Awards (2023) Awa
Slide 31: Shareholding Information
Shareholding Information No. of Shares held as No. of Shares % to Change Shareholding Pattern as on % to Particulars on Capital held as on Capital YoY Sep 30, 2024 Sep 30, 2024 Sep 30, 2023 65,40,98,280 59.40 65,40,98,280 63.41 (401 bps) 2.54% PROMOTERS 3.63% 5.26% 24,99,43,396 24.23 (152 bps) 6.46%
Slide 32: Thank You
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Slide 33: Investor Brief for September 2024
Jammu and Kashmir Bank Limited Corporate Headquarters T +91 (0)194 248 3775 W www.jkbank.com M A Road, Srinagar 190001 F +91 (0)194 248 1928 E board.sectt@jkbmail.com Kashmir, India CIN: L65110JK1938SGC000048 Board Secretariat Investor Brief for September 2024 A very Good Afternoon and warm welcome
Slide 34: Macroeconomic outlook remarks
Jammu and Kashmir Bank Limited Corporate Headquarters T +91 (0)194 248 3775 W www.jkbank.com M A Road, Srinagar 190001 F +91 (0)194 248 1928 E board.sectt@jkbmail.com Kashmir, India CIN: L65110JK1938SGC000048 Board Secretariat 19.2 billion during June-October 2024 (till October 7, 2024), reflecting
Slide 35: Financial performance for Q2 and HY1 of FY25
Jammu and Kashmir Bank Limited Corporate Headquarters T +91 (0)194 248 3775 W www.jkbank.com M A Road, Srinagar 190001 F +91 (0)194 248 1928 E board.sectt@jkbmail.com Kashmir, India CIN: L65110JK1938SGC000048 Board Secretariat Now, speaking of the financial performance of the Bank for Q2 and HY1 of
Slide 36: Loan book composition and income statement remarks
Jammu and Kashmir Bank Limited Corporate Headquarters T +91 (0)194 248 3775 W www.jkbank.com M A Road, Srinagar 190001 F +91 (0)194 248 1928 E board.sectt@jkbmail.com Kashmir, India CIN: L65110JK1938SGC000048 Board Secretariat segment in ROI. Sectoral credit to SME has also recorded a YoY growth of
Slide 37: Restructured portfolio, credit cost and capital adequacy
Jammu and Kashmir Bank Limited Corporate Headquarters T +91 (0)194 248 3775 W www.jkbank.com M A Road, Srinagar 190001 F +91 (0)194 248 1928 E board.sectt@jkbmail.com Kashmir, India CIN: L65110JK1938SGC000048 Board Secretariat The restructured portfolio is also holding well with collection efficienc
Slide 38: Closing remarks and thanks
Jammu and Kashmir Bank Limited Corporate Headquarters T +91 (0)194 248 3775 W www.jkbank.com M A Road, Srinagar 190001 F +91 (0)194 248 1928 E board.sectt@jkbmail.com Kashmir, India CIN: L65110JK1938SGC000048 Board Secretariat I thank you all and acknowledge your guidance, support and trust and we e
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