Jammu & Kashmir Bank Ltd. · NSE:J&KBANK
Jammu & Kashmir Bank — The Jammu & Kashmir Bank — Non-Deal Roadshow (November 2023)
35 slides from Jammu & Kashmir Bank's roadshow presentation, Nov 22, 2023
Slide 1: Exchange filing letter on non-deal roadshows
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/F3652/2023/535 Date: 22nd November, 2023 National Stock Excha
Slide 2: Corporate Presentation November 2023
Corporate Presentation November 2023
Slide 3: 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 4: Overview of the Bank
Jammu and Kashmir Bank Limited has strong market presence in the J&K and Ladakh regions 1 | Overview of the Bank
Slide 5: Amongst oldest private sector bank in India
Jammu and Kashmir Bank Limited – Amongst oldest private sector bank in India • Jammu and Kashmir Bank Limited, was incorporated on October 1, 1938 and Total Business (w/o TWO) (₹ bn) today caters to a wide range of customers including retail, corporate, 2,082 2,183 1,800 1,900 agricultural, and MSME
Slide 6: Journey of 8 Decades
Journey of 8 Decades 2021-2023 Global CSR Excellence & Leadership Award Top Banker Award for PMEG Listing on Stock Exchanges 2000s Licensed Status Bank Sponsored RRB 1980s IBA's Best Technology Incorporated 2010-2020 Bank of the Year award and Business QIP completed in Apr ‘22 Commences
Slide 7: Case for Growth Capital Augmentation
Jammu and Kashmir Bank Limited | Case for Growth Capital Augmentation Advances Mix (₹ crore) H1FY23 H1FY24 YoY (%) Capital Adequacy Ratio 15.38 14.53 Housing Loans 9,436 11,350 20.29 ↑ 12.20 13.23 11.73 12.34 11.68 Consumption Loans 12,030 13,358 11.03 ↑ 10.28 3.04 2.85 1.92 1.50 Credit Cards 322 40
Slide 8: Q2FY24 Performance Snapshot
Decadal High PCR and turnaround on all key metrics over the past few quarters 2 | Q2FY24 Performance Snapshot
Slide 9: Q2 FY24 Performance
Jammu and Kashmir Bank Limited | Q2 FY24 Performance Q2 Q1 Q2 Change Change HY1 HY1 Change Particulars FY 2023 FY 2023 FY 2024 FY 2024 YoY (%) QoQ (%) FY 2023 FY 2024 YoY (%) Interest Earned 2,298.85 2,657.08 2,764.15 20.20 4.00 4,402.17 5,421.23 23.10 9,355.11 Interest Expended 1,094.73 1,373.78 1,
Slide 10: Q2 FY24 Performance at a Glance (YoY)
Jammu and Kashmir Bank Limited | Q2 FY24 Performance at a Glance (YoY) Profitability Growth Capital Adequacy Asset Quality NIM Deposits Tier I GNPA (%) 4.07% ₹ 1,266 bn 11.68% 5.26% (was 4.04%) Up 9.4% (was 11.34%) (was 7.67%) PAT Advances Tier II NNPA (%) ₹ 381.07 crore ₹ 917 bn 2.85% 1.04% Up 56%
Slide 11: Q2 FY24 Key Financial Ratios
Jammu and Kashmir Bank Limited | Q2 FY24 – Key Financial Ratios Cost of Deposits (%) Cost of Funds (%) 4.6 4.4 4.2 4.1 3.9 3.8 3.8 3.7 Mar-21 Mar-22 Mar-23 Sep-23 (Q) Mar-21 Mar-22 Mar-23 Sep-23 (Q) Yield on Advances (%) Yield on Investments (%) 9.5 6.7 6.1 5.9 5.5 8.9 8.5 8.3 Mar-21 Mar-22 Mar-23 S
Slide 12: Key Strengths
Strong legacy, loyal customer base and an established brand with over 85 years of operations 3 | Key Strengths
Slide 13: 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 14: Strong legacy, loyal customer base with established brand
Strong legacy, loyal customer base with an established 85 Year Old Brand With over 85 years of banking sector experience in India it is one of 996 Branches with 831 Branches in J&K oldest private sector banks in India. Our Bank believes that it is one of the most trusted and 1,411 ATMs recognized ba
Slide 15: Strong presence in J&K Region and increasing presence across India
Strong presence in J&K Region and increasing presence across India 831 Branches in J&K Semi Urban, 11.1%, Urban, Branch 85 Ultra Small Branches 16.0%, Distribution Network Rural, 55.2%, Metro, 22 States / UTs 18.0%, Rest of Rest of India, India, 11.7%, 27.5%, Gross Total Advances Deposits J&K and J&
Slide 16: Advances with focus on MSME, agricultural and retail segments
Advances with focus on MSME, agricultural and retail segments 71,917 75,242 86,156 91,727 Yield on Advances (%) 9.5 11.5% 11.6% 9.7% 13.4% 11.0% 8.9 16.2% 10.7% 11.5% 10.2% 8.1% 8.5 12.1% 5.9% 9.0% 5.1% 8.5% 8.3 9.2% 22.0% 20.9% 23.8% 23.0% 37.2% 37.9% 34.4% 37.0% Mar-21 Mar-22 Mar-23 Sep-23 (Q) Mar
Slide 17: Consistently growing deposit base with low-cost retail CASA
Consistently growing deposit base with best-in-class low-cost retail CASA Cost of Deposits (%) 1,26,590 1,22,038 1,14,710 4.4 1,08,061 4.1 3.8 3.7 45.9% 49.4% 43.4% 43.2% Mar-21 Mar-22 Mar-23 Sep-23 (Q) Consistently High CASA Ratio 44.0% 44.0% 42.6% 40.4% Sep-23 50.61% Mar-23 54.10% All Figures in ₹
Slide 18: Turnaround Story with Decadal High PCR
Turnaround Story with Decadal High PCR and improvement in asset quality Gross & Net NPA (%) Provision Coverage Ratio (%) 7.7 7.3 90.0 6.0 5.8 5.3 87.6 GNPA 86.2 NNPA 85.5 2.1 2.1 84.8 1.6 1.4 1.0 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Slippage Ratio (%) 13.6 10.1 5.2 1
Slide 19: Fast improving digital presence
Fast improving digital presence Credit Card Users Debit Card Users UPI Users 1,08,164 (In Lacs) (In Lacs) 41.1 83,022 20.1 78,050 15.9 38.6 13.1 36.6 Sep-22 Mar-23 Sep-23 Sep-22 Mar-23 Sep-23 Sep-22 Mar-23 Sep-23 Internet Banking Users Mobile Banking Users Digital Transactions (%) (In Lacs) (In Lacs
Slide 20: Professionally managed Bank with experienced SMPs and Board
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 CAIIB, Diploma
Slide 21: Key Strategies
Strong Focus on Growth with Six Key Building Blocks 4 | Key Strategies
Slide 22: 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 23: Financial Performance
J&K Bank has demonstrated improvements on several of its Key Performance Indicators 5 | Financial Performance
Slide 24: Condensed Profit and Loss Account
Condensed Profit and Loss Account Particulars FY 2021 FY 2022 FY 2023 HY1 FY 2023 HY1 FY 2024 Interest Earned 8,111.09 8,013.48 9,355.11 4,402.17 5,421.23 Interest Expended 4,340.31 4,102.25 4,609.83 2,163.82 2,804.10 Net Interest Income 3,770.78 3,911.23 4,745.28 2,238.35 2,617.13 Other Income 718.
Slide 25: Condensed Balance Sheet
Condensed Balance Sheet Particulars FY 2021 FY 2022 FY2023 As at 30-Sept-22 As at 30-Sept-23 Capital & Liabilities Capital 71.36 93.30 103.16 96.16 103.16 Reserves and Surplus 6,754.25 8,013.86 9,840.08 8,420.47 10,547.59 Deposits 1,08,061.15 1,14,710.38 1,22,037.74 1,15,714.57 1,26,589.73 Borrowing
Slide 26: Key Ratios and Performance Indicators
Key Ratios and Performance Indicators Particulars FY 2021 FY 2022 FY 2023 HY1 FY 2023 HY1 FY 2024 Profitability Net Interest Margin (%) 3.51 3.50 3.89 3.75 4.03 Profit after Tax (₹ crore) 432.12 501.56 1,197.38 409.46 707.52 Return on Assets (%) 0.38 0.42 0.89 0.62 1.01 Capital Adequacy Tier I Capit
Slide 27: Capital Adequacy Ratios
Capital Adequacy Ratios Particulars FY 2021 FY 2022 FY 2023 HY1 FY 2023 HY1 FY 2024 Risk Weighted Assets Credit Risk 60,428 62,795 67,368 64,444 71,206 Market Risk 1,163 1,777 1,850 1,516 1,285 Operational Risk 7,302 7,886 8,155 8,155 8,896 Total Risk Weighted Average 68,893 72,458 77,373 74,115 81,
Slide 28: Asset Quality | Movement of NPAs
Asset Quality | Movement of NPAs Particulars FY 2021 FY 2022 FY 2023 Q2 FY 2023 Q2 FY 2024 At a Gross NPA Level Opening Balance 7,672 6,955 6,521 6,982 5,104 Additions during the period 1,107 3,131 7,447 1,761 225 Upgradations during the period 289 2,258 6,449 2,109 235 Write off (including TWO) 1,2
Slide 29: Asset Quality | External Rating of Corporate Advances
Asset Quality | External Rating of Corporate Advances (As of Sep 30, 2023) Rating No. of Borrowers Outstanding Amount Percentage (%) AAA 23 11,559 52.95 AA-, AA & AA+ 12 2,070 9.48 A-, A & A+ 19 2,046 9.37 BBB-, BBB & BBB+ 22 1,481 6.78 BB+ & Below 132 2,134 9.78 Unrated Borrowers (Due to be rated)
Slide 30: Asset Quality | Restructuring of Advances
Asset Quality | Restructuring of Advances (as of September 30, 2023) Standard NPA Total Sector BOS Provisions BOS Provisions BOS Provisions Services 358.36 20.79 175.36 155.55 533.71 176.35 Infrastructure 25.08 2.13 3.60 0.00 28.68 2.13 Manufacturing 171.06 15.60 416.98 290.65 588.04 306.24 Trade 85
Slide 31: Asset Quality | Restructuring of Advances
Asset Quality | Restructuring of Advances (as of September 30, 2023) September 22 September 23 Category Amount % of Gross Advances Amount % of Gross Advances Standard 73,048 92.33 86,900 94.74 Sub-Standard 745 0.94 498 0.54 Doubtful 4,196 5.30 3,405 3.71 Loss 1,124 1.43 924 1.01 Gross Advances 79,11
Slide 32: Annexures
ok &K Bank Serving To Empower 6 | Annexures
Slide 33: Awards and Accolades
Awards and Accolades Special Cyber Security Award National Award for Award for 2022 on Access and Identity Outstanding Performance in Promoting Management for its Privilege Self Help Group (SHG) Bank Digital Payments and Customer Authentication Linkage for FY 2020-21 in Framework in July 2022. March
Slide 34: Share Price and Shareholding Information
Share Price and Shareholding Information Volume (Lac Shares) Price (₹) 500 140 450 120 400 350 100 300 80 250 60 200 150 40 100 20 50 0 0 15-Nov-22 15-Dec-22 15-Jan-23 15-Feb-23 15-Mar-23 15-Apr-23 15-May-23 15-Jun-23 15-Jul-23 15-Aug-23 15-Sep-23 15-Oct-23 15-Nov-23 52 Week High 117.70 2.19% 2.43%
Slide 35: Thank You
Aiming Beyond the Thank You.
The Jammu & Kashmir Bank — Non-Deal Roadshow (November 2023) on 6ix