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

Jammu & Kashmir Bank — Investor Presentation (January 2011)

37 slides from Jammu & Kashmir Bank's investor presentation, Jan 31, 2011

  1. Slide 1: Analyst Meet – Mumbai

    Analyst Meet – Mumbai January 31, 2011

  2. Slide 2: An Overview

    An Overview © UsK Bank

  3. Slide 3: Basic Facts

     Incorporated in 1938  Listed on NSE & BSE Basic Facts  Rated “P1+” by S&P: highest degree of safety  Four decades of uninterrupted profitability and dividends 3

  4. Slide 4: One of a Kind

     Private sector bank despite government’s majority holding  Only private sector bank designated as RBI’s agent for banking business One of a Kind  Carries out banking business of the Central Government: − Direct Tax collection − Indirect Tax collection − Utility payment collection 4

  5. Slide 5: Facets and Roles

     Commercial Bank  Development Financing Institution Facets and Roles  Financial Services Provider  Central bank of J&K 5

  6. Slide 6: Regional Goliath

     Dominates a Region − 428 branches in the state − 254 ATMs  Controls a Geography − Branches in every block of J&K  Possess a Community Regional Goliath − Adult population of 8.6 million − 3.7 million account holders of J&K Bank  Monopolises Business in J&K − 87% share in advances − 70% share in

  7. Slide 7: Shareholding Pattern

    Shareholding Pattern (24.01.2011) 7

  8. Slide 8: Best of both worlds

     Private Bank in terms of its earnings, and  PSU Bank in terms of its cost structure  Public ownership Best of − Stability both worlds − Safety  Private functioning − Efficiency − Growth 8

  9. Slide 9: Subsidiaries and Investments

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

  10. Slide 10: Consistent Growth & Stability

    Consistent Growth & Stability 10

  11. Slide 11: Decade of Development - I

    Decade of Development - I Amount in Rs million FY FY FY FY FY FY FY FY FY FY 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Particulars 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Net Worth 6995.2 9370.8 12420.0 15937.4 16654.0 17994.7 20087.3 22808.2 26228.6 30104.6 Deposits 1116

  12. Slide 12: Decade of Development - II

    Decade of Development - II Year Year Year Year Year Year Year Year Year Year Ratios ended ended ended ended ended ended ended ended ended ended Mar, 01 Mar, 02 Mar, 03 Mar, 04 Mar, 05 Mar, 06 Mar, 07 Mar, 08 Mar, 09 Mar, 10 Net Interest Margins (%) 3.60% 3.61% 3.67% 3.58% 2.89% 2.83% 2.97% 2.95% 3.1

  13. Slide 13: Financial Results 9M Dec, 2010

    Financial Results 9 M Dec, 2010 13

  14. Slide 14: Financial Results

    Financial Results Financial Results Analysis (Quarter to Quarter and Nine Months ended Dec, 2010) in Rupees Crore Q3 Q3 Q1 Q2 9M 9M Year end Particulars % Change % Change 2010-11 2009-10 2010-11 2010-11 Dec, 10 Dec, 09 Mar, 10 Interest Earned 934.66 758.14 23.28% 865.69 898.92 2699.27 2271.85 18.81%

  15. Slide 15: Ratio Analysis - I

    Ratio Analysis - I The Jammu & Kashmir Bank Limited Key Financial Ratios Quarter Quarter Quarter Quarter 9 Mth 9 Mth Year S.No. Ratios ended Dec, ended Dec, ended Jun, ended Sep, ended Dec, ended Dec, ended 10 09 10 10 10 09 Mar, 10 Profitability Ratios 1 Net Interest Margins (%) 0.93% 0.82% 0.92% 0

  16. Slide 16: Ratio Analysis - II

    Ratio Analysis - II Quarter Quarter Quarter Quarter Year 9 Mth ended9 Mth ended S.No. Ratios ended Dec, ended Dec, ended Jun, ended Sep, ended Dec, 10 Dec, 09 10 09 10 10 Mar, 10 Efficiency Ratios 11 Cost to Income Ratio (%) 39.88% 37.17% 37.25% 36.38% 37.86% 35.70% 37.60% 12 CD Ratio (%) 62.05% 61.

  17. Slide 17: Ratio Analysis - III

    Ratio Analysis - III Quarter Quarter Quarter Quarter 9 Mth 9 Mth Year S.No. Ratios ended Dec, ended Dec, ended Jun, ended Sep, ended Dec, ended Dec, ended 10 09 10 10 10 09 Mar, 10 Operating Ratios 25 Operating Expenses to AWF (%) (Ann.) 1.63% 1.51% 1.59% 1.47% 1.56% 1.39% 1.44% 26 Operating Expense

  18. Slide 18: Ratio Analysis - IV

    Ratio Analysis - IV Quarter Quarter Quarter Quarter Year 9 Mth ended9 Mth ended S.No. Ratios ended Dec, ended Dec, ended Jun, ended Sep, ended Dec, 10 Dec, 09 10 09 10 10 Mar, 10 Valuation Ratios 33 Earnings per Share (in Rupees) 34.63 28.88 30.01 33.68 98.32 80.93 Annualized 138.52 115.51 120.05 13

  19. Slide 19: Geographical Distribution

    Geographical Distribution Amount in Rupees million As on Dec 31, 2010 From J&K State From Rest of India S Particulars No. Amount % age Amount % age 1 Deposits 263565 64% 145193 36% 2 Advances 125674 48% 134970 52% 3 Gross Profit 6794 74% 2328 26% Amount in Rupees million As on Sep 30, 2010 Net Inter

  20. Slide 20: Sector-wise advances (Dec, 10)

    Within J&K 10% 11% 20% 15% 16% 28% Agriculture Trade Personal SME Government Corporate Sector-wise Rest of India advances 8% 8% 6% (Dec, 10) 10% 67% 1% Agriculture Trade Personal SME Govt Corporate 20

  21. Slide 21: Sector-wise advances (Dec,10)

    The Bank as Whole 9% 11% 40% Sector-wise 16% advances (Dec,10) 10% 13% Agriculture Trade Personal SME Government Corporate 21

  22. Slide 22: Industry Review

    Industry Review 22

  23. Slide 23: Return on Assets (%) (Annualised)

    As on 9-M Dec 2010 2.00 1.55 1.6 1.63 1.44 1.24 1.24 1.31 1.37 1.50 1.02 Return on 1.00 0.86 0.96 Assets (%) 0.50 (Annualised) 0.00 23

  24. Slide 24: Cost to Income (%)

    As on 9-M Dec 2010 Cost to Income (%) 24

  25. Slide 25: CASA Ratio

    As on 9-M Dec 2010 60.25 50.50 48.17 50.25 44.20 42.31 39.05 39.57 40.25 32.87 33.27 33.41 33.47 CASA Ratio 30.25 24.33 (%) 20.25 10.25 0.25 25

  26. Slide 26: Net Impaired Loans (%)

    As on 9-M Dec 2010 1.80 1.61 1.60 1.39 1.40 1.21 1.20 Net 1.00 0.72 Impaired 0.80 0.64 0.57 0.58 0.59 0.60 Loans (%) 0.40 0.20 0.29 0.20 0.04 0.00 26

  27. Slide 27: Coverage Ratio (%): Highest in India

    As on 9-M Dec 2010 * 98.42 100.00 90.00 82.69 83.01 Coverage 80.00 70.20 71.80 72.81 76.4177.18 80.22 81.00 Ratio (%): 64.07 70.00 Highest in 60.00 50.00 India 40.00 30.00 20.00 27

  28. Slide 28: Tier I Capital (%) (Basel II)

    As on 9-M Dec 2010 13.72 1400% 12.80 12.10 1200% 9.57 9.69 1000% Tier I 8.82 8.86 8.13 8.14 7.44 7.58 800% Capital (%) 600% (Basel II) 400% 200% 0% 28

  29. Slide 29: Earnings per Share (Rs.)

    As on 9-M Dec 2010 74.45 98.32 102.52 129.83 70 61.00 58.06 60 50 Earnings per 40 30 26.09 28.86 29.39 32.64 Share (Rs.) 20 18.90 10 0 29

  30. Slide 30: Book value (Rs.)

    As on 9-M Dec 2010 800 719.3 700 617.3 600 539.2 477.1 481.0 500 454.3 Book value 400 (Rs.) 300 204.3 205.1 177.2 184.3 200 100 30

  31. Slide 31: Road Ahead

    Road Ahead > J&K Bank

  32. Slide 32: J&K Bank - Ground work done for Growth

    J&K Bank - Ground work done for Growth  Capital Adequacy at 15.49%, Tier I 12.80% & Tier II 2.69%  Raised Rs. 6 billion as long term resource in the form of Tier II capital  Made liabilities the driver  Changed Geographical Composition of Advances from ROI to J&K  Insulated earnings from enviro

  33. Slide 33: 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  To catch up with National Average, Credit in J&K has to increase five-fold and P

  34. Slide 34: 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 and 1400 Common Services Centres as banking correspondents  Bridging Credit Gap in J&K with focus on potential and under-serviced sectors 3

  35. Slide 35: Outside State – Business Strategy

    Outside State – Business Strategy Nationally, focus has to be on:  Rebuilding Corporate Loan Book  Improving WC to TL Ratio  Targeting Specific Sectors, like plantations and commercial agriculture, still being financed informally, to improve margins by replicating successful lending experiences f

  36. Slide 36: Road Ahead for next 3 years

    Road Ahead for next 3 years  To achieve Rs 10 billion profit and Rs 1000 billion business by 2013 Targets • CASA : 40% to 50% • NIMs : 3.7% to ~4%+ • ROA : 1.3% to 1.5%+ • ROE : 19% to 23% • Advances : 25 % CAGR • Deposits : 20 % CAGR • Cost/Income : 35-40% • Loan/Deposit : 65% to 70% • PCR : above

  37. Slide 37: THANK YOU

    THANK YOU 37

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