Jammu & Kashmir Bank Ltd. · NSE:J&KBANK
Jammu & Kashmir Bank — Q3 FY2021-22 Earnings Presentation
32 slides from Jammu & Kashmir Bank's earnings presentation, March 2022
Slide 1: Investor Presentation – Q3 / 9M FY 2021-22
Investor Presentation – Q3 / 9M FY 2021-22 1
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 UT 3
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 North by China, Total Area of the UT Afghanistan and a little of Tajikistan, and on the East by Chinese Tibet. The UT ranks 17th in
Slide 5: Highlights – Dec 2021
Highlights – Dec 2021 Founded: 01 October, 1938 Headquarters: One of the oldest Private Sector Bank. Founded 1938. Srinagar, Jammu and Kashmir Government of Jammu & Kashmir share holding of 70.12% | Listed on BSE & NSE Owner: Number of Branches: 974 BUs #, 1394 ATMs & 25 Extension Counters. J&
Slide 6: Dominance of J&K Bank in JKUT
Dominance of J&K Bank in JKUT INR Million JKB Share in J&K (Dec-2021) * Regional Dominance • 811 Branches / 1247 ATMs in J&K UT JK Bank Other SCBs • Branch in every block of J&K UT and 37% 36% 37% Ladakh UT • Over 10 Million account holders in J&K UT 63% 64% 63% • Captive Clientele – J&K / Ladakh Go
Slide 7: J&K Bank - Brief Financial Profile
J&K Bank - Brief Financial Profile INR Million Particulars FY 2020-21 Q1'2022 Q2’2022 Q3'2022 9 Months Geographic Distribution (Dec’2021) Capital 713.6 713.6 933.0 933.0 933.0 Reserves 67542.5 68585.7 76342.1 78081.6 78081.6 Region J&K UT Rest of India Total Deposits 1080611.5 1056888.9 1062673.5 10
Slide 8: Performance Analysis
PERFORMANCE ANALYSIS PAST PERFORMANCE AND COMPETITIVE BENCHMARKING 8
Slide 9: Key Performance Indicators
Key Performance Indicators INR Million …Gradually Improving Parameters (Q3’FY21-22) Steady Developments Leading To… Net Interest Income Non Interest Income Operating Profit KPIs Q4 ’20-21 Q1 ’21-22 Q2 ‘21-22 Q3 ‘21-22 RoE (%)# 5.55 1.77 1.75 2.54 9932 1562 3152 RoA (%)# 0.27 0.09 0.09 0.14 YOY CoF (
Slide 10: Key Performance Indicators
Key Performance Indicators INR Million Income Statement Q3 & 9M (FY2021-22) Balance Sheet Dec. 2021 Particulars Q3 Q3 9M 9M Change % Particulars Dec‘20 Mar‘21 Sep‘21 Dec’21 YoY % 2020-21 2021-22 2020-21 2021-22 Assets (Total B.S) 1159977.5 1202919.5 1198304.9 1238094.0 7% Net Interest Income 10051.3
Slide 11: Historical Performance Parameters
Historical Performance Parameters INR Million Profit & Loss Balance Sheet Year ended Year ended Year ended 9M ended Year ended Year ended Year ended Particulars Particulars DEC’ 21 Mar’ 19 Mar’ 20 Mar’ 21 DEC’ 21 Mar’ 19 Mar’ 20 Mar’ 21 Capital 557.0 713.6 713.6 933.0 Interest Income 76755.6 84462.9
Slide 12: Historical Performance Parameters Cont.
Historical Performance Parameters…. Cont…. Interest Spread/Margins Capital Adequacy/Asset Quality 9.38% 9.48% 12.46% 12.20% 12.38% 8.54% 8.35% 11.40% 9.67% 8.97% 10.97% 8.93% 4.98% 4.96% 4.10% 3.6… 4.89% 3.84% 3.92% 3.64% 3.67% 3.48% 2.95% 3.02% FY 18-19 FY 19-20 FY 20-21 9M 21-22 FY 18-19 FY 19-20
Slide 13: Historical Performance Parameters Cont.
Historical Performance Parameters Cont. Book Value Per Share (INR) Return on Equity 82.04 10.15% 75.65 74.46 7.27% 7.68% 60.81 FY 18-19 FY 19-20 FY 20-21 9M 21-22 FY 18-19 FY 19-20 FY 20-21 9M 21-22 -19.96% BVPS Return on Assets Cost to Income Ratio 70.46% 0.49% 0.43% 64.14% 64.11% 0.38% 59.06% FY 1
Slide 14: Income & Expenditure Highlights
Income & Expenditure Highlights INR Million Income Highlights Q3 /9M Dec 2021 Expense Highlights Q3/9M Dec 2021 Q3 Q3 9M 9M Change Q3 Q3 9M 9M Change Interest Income Interest Exp FY’22 FY’21 FY’22 FY’21 % FY’22 FY’21 FY’22 FY’21 % Loans And Advances 15345.0 15764.7 45180.4 46336.9 -2% Deposits 9764.
Slide 15: Income & Margins Highlights
Income & Margins Highlights INR Million Net Interest Income Net interest margins (%) 10051.3 9932.9 3.88 9692.9 9731.4 3.74 3.62 3.65 9174.2 3.43 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 Q3 21-22 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 Q3 21-22 Cost of deposits (%) Yield on advances (%) 4.04 8.85 8.44 3.78 8
Slide 16: Liability Trends
Liability Trends INR Million Deposit Mix CASA Ratio (%) 56.84 56.32 466362 477368 55.83 472893 466848 474596 55.34 54.44 475540 469943 472401 483552 453356 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 Q3 21-22 111793 138708 120096 115675 126063 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 Q3 21-22 CASA + Retail term
Slide 17: Liability Trends
Liability Trends INR Million Maturity Profile Of Term Deposits • Highly Diversified and Stable Liability Franchise. 26998, 6% 58534, 12% • Top 20 depositors contribute just 8% of total deposits. 39103, 8% • Inter-bank deposits less than 1.50%. 0 to 1 year • High roll over of maturing Term Deposits a
Slide 18: Loans & Advances – Asset Quality & Diversification
Loans & Advances – Asset Quality & Diversification INR Million • 61% of Standard rated Corporate Loan portfolio rated ‘A’ & Above. ADVANCES REGION WISE • Retail Advances constitute 68% of total Loan Book; Retail growth @ over10% YOY • Personal Loans constitute 52% of Retail Book and 35% of Total Loa
Slide 19: Loans & Advances - NPAs
Loans & Advances - NPAs INR Million Non-Performing Assets – Movement Q3 Q3 9M 9M • Last year (9M’21) slippages were low Particulars % Change due to Covid Moratorium / Hon’able FY’22 FY’21 FY’22 FY’21 Supreme Court Order. Balance at the start of the period 65248.6 63170.9 69547.5 76716.3 -9% • During
Slide 20: NPA Sector Wise
NPA Sector Wise INR Million Non-Performing Assets – Sector Wise Breakup as on 31.12.2021 • 9M slippages in J&K INR 14063 Mio; Gross Exposure Gross GNPA RoI INR 7139 Mio Sector Advances % NPA % • Gross NPAs in J&K INR 27171 Mio; RoI INR 37917 Mio Personal Finance 270407.1 37.10% 3574.0 1.32% • JK GNP
Slide 21: Loans & Advances – Restructured Loans
Loans & Advances – Restructured Loans INR Million Restructured Loans – Dec’21 Sector-wise re structured Loans – Dec’21 Particulars Standard NPA Total Restructured 5000 J&K Amount Prov. Amount Prov. Amount Prov. 4000 3000 Flood 2014 / Unrest 2016 368.6 36.9 4980.7 3702.0 5349.3 3738.8 2000 Rehab-2019
Slide 22: Investment Book
Investment Book INR Million Investment – Dec’21 B&D - Rating Profile in Percent (Dec’21) NPIs: INR 7128 Mio 8.46% 15644.1 Prov. Ag NPIs: INR Dec'31,20-21 6364 Mio 267677.9 Coverage 89%Cr 18.18% AAA 55.67% 9515.0 17.69% AA Dec'31,21-22 285730.1 A * Investment predominantly BB & Below NON SLR SECURITI
Slide 23: Capital Position
Capital Position INR Million CRAR & Components of Capital Recent Capital Infusion by J&K Govt Component FY 18-19 FY 19-20 FY 20-21 DEC‘21 FY Shares Issue Price (INR) Amount CET-I % 9.13 8.42 8.82 9.58 2016-17 36555051 68.39 2500.0 Tier -I % 10.60 9.88 10.28 10.97 2017-18 35525321 79.38 2820.0 Tier -
Slide 24: Digital Journey
DIGITAL JOURNEY 24
Slide 25: Accelerating Digital Delivery
ACCLERATING DIGITAL DELIVERY More than 1.3 Million M-pay Customers with a YOY growth of 22%. New user-friendly M- Pay Delight App launched with multiple features. Mpay About 83K and 38L Credit and Debt card users with an average spend of Rs. 41K on credit cards. Credit/Debit Cards About 60% of the t
Slide 26: Digital Channels - The Way Ahead
Digital Channels - THE WAY AHEAD Loyalty programs for customers to promote digital and alternate channels Interactive Phone banking services like SMS, Missed Call banking etc. WhatsApp messaging and chat bots EMI on debit cards Contact less debit and credit 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 2 Business Process Re-Engineering • Identifying high-impact processes for optimiz
Slide 29: Potential Business Opportunities
Potential Business Opportunities Home Loan Agri & Allied MSMEs Bank has opened 10602 fresh housing loan Under agriculture sector, bank has opened 257 thousand More than 400 thousand fresh accounts opened accounts during FY 2020-21 with a YoY growth of fresh loan accounts during FY 2020-21 at a yearl
Slide 30: J&K Bank – A Value Proposition
J&K BANK – A VALUE PROPOSITION 30
Slide 31: Investment Rationale
Investment Rationale One of A Kind Bank Unique blend of Commercial A Regional Goliath Bank, Development • The dominant bank in J&K and Ladakh with 811 & 36 branches, 1247 & 49 ATMs respectively in the two UTs, Financial Institution & thus covering the entire 2 UTs with branches in every block Fina
Slide 32: Thank You.
Thank You. 32
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