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

Jammu & Kashmir Bank — Trinity India 2015

64 slides from Jammu & Kashmir Bank's conference presentation, Jun 1, 2015

  1. Slide 1: Trinity India – 2015

    Trinity India – 2015 Mumbai – June 01, 2015

  2. Slide 2: Slide 2

  3. Slide 3: An Overview

    An Overview

  4. Slide 4: Basic Facts

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

  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 3 Notes

  6. Slide 6: Facets and Roles

    Facets and Roles  Commercial Bank  Development Financing Institution  Financial Services Provider 4 Notes

  7. Slide 7: Regional Goliath

    Regional Goliath  Dominates a region — 704 branches in the state — 802 ATMs  Controls a geography — Branches in every block of J&K  Serving a community — 86 lakh Adult population — 75 lakh Account holders of J&K Bank  Business leadership in J&K 5 Notes

  8. Slide 8: Shareholding Pattern (%)

    Shareholding Pattern (%) (22.05.2015) Government of J&K 2.37 FII's and FPI's 3.17 5.04 0.66 Resident Individuals 11.63 Indian Mutual Funds Insurance Companies 23.96 Bodies Corporates/ Clearing Mem./Banks 53.17 Non-Resident Indians 6 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 7 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, 06 Mar, 07 Mar, 08 Mar, 09 Mar, 10 Net Worth 1799.47 2008.73 2280.82 2622.86 3010.46 Deposits 23484.6 25194.3 28593.3 33004.1 37237.2 Advances 14483.1 17079.9 18882.6 20930.4 23057.2 I

  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, 11 Mar, 12 Mar, 13 Mar, 14 Mar, 15 Net Worth 3478.68 4093.18 4864.69 5723.61 6110.05 Deposits 44675.9 53346.9 64220.6 69335.9 65756.2 Advances 26193.6 33077.4 39200.4 46384.6 44585.8 I

  14. Slide 14: Decade of Development - II

    Decade of Development - II (%) Year Year Year Year Year Ratios ended ended ended ended ended Mar, 06 Mar, 07 Mar, 08 Mar, 09 Mar, 10 Net Interest Margins 2.83 2.98 2.94 3.10 3.04 Interest Spread 2.61 2.79 2.64 2.84 2.79 Yield on Advances 8.48 8.58 10.44 11.53 10.65 Yield on Investments 6.23 6.20 6.7

  15. Slide 15: Decade of Development - II

    Decade of Development - II (%) Year Year Year Year Year Ratios ended ended ended ended ended Mar, 11 Mar, 12 Mar, 13 Mar, 14 Mar, 15 Net Interest Margins 3.69 3.84 3.97 4.16 3.81 Interest Spread 3.46 3.57 3.74 3.95 3.65 Yield on Advances 10.86 12.12 12.59 12.23 11.52 Yield on Investments 6.34 7.29 7

  16. Slide 16: Decade of Development - III

    Decade of Development - III Year Year Year Year Year Ratios ended ended ended ended ended Mar, 06 Mar, 07 Mar, 08 Mar, 09 Mar, 10 Cost to Income Ratio (%) 43.32 40.13 38.24 37.81 37.60 CD Ratio (%) 61.67 67.79 66.04 63.42 61.92 CASA Ratio (%) 34.17 37.02 39.16 38.11 40.69 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, 11 Mar, 12 Mar, 13 Mar, 14 Mar, 15 Cost to Income Ratio (%) 39.77 36.92 35.33 38.21 43.42 CD Ratio (%) 58.63 62.00 61.04 66.90 67.80 CASA Ratio (%) 40.48 40.71 39.23 39.06 41.79 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, 06 Mar, 07 Mar, 08 Mar, 09 Mar, 10 Operating Expenses to AWF 1.36 1.35 1.31 1.34 1.44 Operating Expenses to Total Income 19.00 18.08 15.06 14.56 16.62 Operating expenses to Other Income 259.00 232.47 16

  19. Slide 19: Decade of Development - IV

    Decade of Development - IV (%) Year Year Year Year Year Ratios ended ended ended ended ended Mar, 11 Mar, 12 Mar, 13 Mar, 14 Mar, 15 Operating Expenses to AWF 1.70 1.56 1.60 1.73 1.94 Operating Expenses to Total Income 18.61 15.52 14.94 16.42 18.41 Operating expenses to Other Income 208.06 240.08 20

  20. Slide 20: Decade of Development - V

    Decade of Development - V Year Year Year Year Year Ratios ended ended ended ended ended Mar, 06 Mar, 07 Mar, 08 Mar, 09 Mar, 10 Earning per Share (in Rupees) 36.48 56.62 74.26 84.54 105.69 Net Asset Value / Book Value (in Rupees) 371.20 414.36 476.28 541.04 621.00 Adjusted Book Value (in Rupees) 343

  21. Slide 21: Decade of Development - V

    Decade of Development - V Year Year Year Year Year Ratios ended ended ended ended ended Mar, 11 Mar, 12 Mar, 13 Mar, 14 Mar, 15 Earning per Share (in Rupees) * 126.90 165.69 217.65 243.92 10.49 Net Asset Value/Book Value (in Rupees) * 717.58 844.34 1003.49 1180.67 126.04 Adjusted Book Value (in Rupe

  22. Slide 22: Slide 22

  23. Slide 23: Financial Results FY Mar, 2015

    Financial Results FY Mar, 2015

  24. Slide 24: Financial Results – Mar, 2015

    Financial Results – Mar, 2015 (in Rupees Crore) Financial Results Analysis (Quarter to Quarter and Year ended Mar, 2015) Q4 Q4 Q1 Q2 Particulars 2014-15 2013-14 % Change 2014-15 2014-15 Interest Earned 1744.97 1777.50 -1.83% 1768.01 1798.53 Interest Expended 1062.40 1076.32 -1.29% 1130.31 1106.59 Ne

  25. Slide 25: Financial Results – Mar, 2015

    Financial Results – Mar, 2015 (in Rupees Crore) Financial Results Analysis (Quarter to Quarter and Year ended Mar, 2015) Q3 Q4 % Change Year ended Year ended Particulars % Change 2014-15 2014-15 Q4 over Q3 Mar, 15 Mar, 14 Interest Earned 1749.62 1744.97 -0.27% 7061.13 6767.00 4.35% Interest Expended

  26. Slide 26: Ratio Analysis – I

    Ratio Analysis – I (%) Quarter Quarter Quarter Quarter Quarter Year Year Profitability Ratios ended ended ended ended ended ended ended Mar, 15 Mar, 14 Jun, 14 Sep, 14 Dec, 14 Mar, 15 Mar, 14 Net Interest Margins 0.98 1.03 0.91 1.00 0.92 Annualized 3.92 4.13 3.63 4.01 3.66 3.81 4.16 Interest Spread

  27. Slide 27: Ratio Analysis – II

    Ratio Analysis – II (%) Quarter Quarter Quarter Quarter Quarter Year Year Profitability Ratios ended ended ended ended ended ended ended Mar, 15 Mar, 14 Jun, 14 Sep, 14 Dec, 14 Mar, 15 Mar, 14 Return on Assets 0.14 0.34 0.18 0.24 0.14 Annualized 0.56 1.37 0.72 0.96 0.57 0.70 1.74 Return on period en

  28. Slide 28: Ratio Analysis – III

    Ratio Analysis – III Quarter Quarter Quarter Quarter Quarter Year Year Efficiency Ratios ended ended ended ended ended ended ended Mar, 15 Mar, 14 Jun, 14 Sep, 14 Dec, 14 Mar, 15 Mar, 14 Cost to Income Ratio (%) 40.12 40.73 41.78 44.33 48.47 43.42 38.21 CD Ratio (%) 67.80 66.90 69.80 71.57 69.42 67.

  29. Slide 29: Ratio Analysis – IV

    Ratio Analysis – IV (%) Quarter Quarter Quarter Quarter Quarter Year Year Operating Ratios ended ended ended ended ended ended ended Mar, 15 Mar, 14 Jun, 14 Sep, 14 Dec, 14 Mar, 15 Mar, 14 Operating Expenses to AWF (Ann.) 2.11 1.81 1.78 1.92 1.95 1.94 1.73 Operating Expenses to Total Income 19.06 17

  30. Slide 30: Ratio Analysis – V

    Ratio Analysis – V Quarter Quarter Quarter Quarter Quarter Year Year Valuation Ratios ended ended ended ended ended ended ended Mar, 15 Mar, 14 Jun, 14 Sep, 14 Dec, 14 Mar, 15 Mar, 14 Earnings per Share (in Rs) * 2.10 5.17 2.68 3.55 2.16 Annualized 8.38 20.68 10.73 14.22 8.63 10.49 24.39 Net Asset V

  31. Slide 31: Geographical Break-up

    Geographical Break-up (in Rupees Crore ) As on Mar 31, 2015 From J&K State From Rest of India S. Particulars No. Amount % age Amount % age 1 Deposits 48725 74 % 17032 26 % 2 CASA Ratio - 52 % - 14 % 3 Gross Advances 22869 49 % 23684 51 % Number of Branches (includes IARB & 4 704 86 % 117 14 % Treasu

  32. Slide 32: Deposits – Compositional Break-up

    Bank as Whole (%) - Rs 65756 cr 10% Deposits – Current Compositional Saving 58% Break-up Term 32% (Mar 15) In Rest of India (%) – Rs 17032 cr 7% Current 6% Saving Term 86% Within J&K (%) – Rs 48725 cr 11% Current 48% Saving Term 41% 30 Notes

  33. Slide 33: Gross Advances – Sector-wise

    Bank as Whole (%) – Rs 46553 cr Agriculture 2% 12% Trade 10% Gross Personal SME Advances – Corporate 50% 17% Sector-wise Others 9% (Mar 15) In Rest of India (%) – Rs 23684 cr Agriculture 2% 5% 4% Trade 4% Personal 3% SME Corporate Others 82% Within J&K State (%) – Rs 22869 cr Agriculture 3% 20% Trad

  34. Slide 34: Movement in Gross NPA’s (Mar 15)

    Movement in Gross NPA’s (Mar 15) (in Rupees Crore) For Year ended For Year ended Particulars % change Mar 31, ’15 Mar 31, ’14 Balance at the start of the period 783.42 643.77 22 % Additions during the period 2525.80 410.60 515 % Up gradations during the period 343.77 117.70 192 % Write off 24.94 7.0

  35. Slide 35: Incremental Growth in Deposits and Advances (Mar 15)

    Incremental Growth in Deposits and Advances (Mar 15) (in Rupees Crore) As on Mar As on Mar 31, % Particulars Increment 31, 2015 2014 change In J&K State 48725 45193 3531 8% Deposits In Rest of India 17032 24142 -7111 -29 % Whole Bank 65756 69336 -3580 -5 % In J&K State 22869 19597 3272 17 % Advances

  36. Slide 36: Restructuring (Mar 15) - I

    Restructuring (Mar 15) - I (in Rupees Crore) For Qtr For Qtr For Year For Year S. ended ended % ended ended % No Particulars Mar 31, Mar 31, change Mar 31, Mar 31, change . ’15 ’14 ’15 ’14 Balance at the start of the 1 1804.32 1415.76 27 % 1575.97 1490.48 6% period Additions during the period 712.97

  37. Slide 37: Restructuring (Mar 15) – II

    Restructuring (Mar 15) – II  Outstanding Restructured portfolio well distributed among several sectors  Total Outstanding NPA’s from Outstanding Restructured Portfolio Rs 315.17 crore, for which provision of Rs 93.23 crore available Classification of Outstanding Restructured Portfolio 2% 1% Standa

  38. Slide 38: Investments, (Mar 15) – I

    Investments, (Mar 15) – I (in Rs crore) 9869 15254 2 Held to Maturity 61 % Held for Trading 0.01 % Available for Sale 39 % Duration 3.32 3.16 5 2.22 0 HTM AFS Total 36 Notes

  39. Slide 39: Investments, (Mar 15) – II

    Investments, (Mar 15) – II (in Rs. crore) 11663 13462 SLR Securities 54 % Non-SLR Securities 46 % Yield for Financial Year ended Mar, 15 (on daily average balances) 8.25 7.91 8.11 10 5 0 SLR Securities Non-SLR Total Portfolio Securities 37 Notes

  40. Slide 40: Slide 40

  41. Slide 41: Industry Review

    Industry Review

  42. Slide 42: Return on Assets (%)

    Return on Assets (%) For Financial Year ended Mar, 2015 2.5 2.0 2.0 1.83 1.86 1.5 1.0 0.68 0.70 0.48 0.49 0.53 0.54 0.55 0.5 0.28 0.29 0.0 40 Notes

  43. Slide 43: Return on Equity (%)

    Return on Equity (%) For Financial Year ended Mar, 2015 25 18.57 19.37 20 14.3 15 11.06 11.17 9.73 9.97 8.12 8.34 8.60 10 5.46 5.68 5 0 41 Notes

  44. Slide 44: Net Interest Margin (%)

    Net Interest Margin (%) For Financial Year ended Mar, 2015 5 4.4 3.48 3.63 3.81 4 3.10 3.15 3.16 3 2.45 2.48 2.50 2.07 2.25 2 1 0 42 Notes

  45. Slide 45: Cost to Income (%)

    Cost to Income (%) For Financial Year ended Mar, 2015 60 51.3 49.9 51.1 48.3 50 45.4 45.5 46.7 43.4 44.6 40.7 40 36.8 37.7 30 43 Notes

  46. Slide 46: CASA Ratio (%)

    CASA Ratio (%) As on Mar, 2015 50 45.5 44.0 40 40.45 41.79 40 36.65 33.75 29.10 29.20 29.68 30 23.96 19.72 20 10 0 44 Notes

  47. Slide 47: Net Impaired Loans (%)

    Net Impaired Loans (%) As on Mar, 2015 4.30 3.99 4.06 4.0 3.08 2.65 2.71 2.77 3.0 2.50 2.12 2.0 1.61 1.0 0.2 0.44 0.0 45 Notes

  48. Slide 48: Coverage Ratio (%)

    Coverage Ratio (%) As on Mar, 2015 78 80 69.13 70 58.21 58.6 59.02 59.23 60.08 60 55.34 57.29 51.50 52.65 50 40 30 20 46 Notes

  49. Slide 49: Tier I Capital (%) (Basel III)

    Tier I Capital (%) (Basel III) As on Mar, 2015 15 13.70 12.78 12.07 10.61 11.26 9.30 9.60 10 7.71 8.02 8.05 7.50 5 0 47 Notes

  50. Slide 50: Earnings per Share (Rs.)

    Earnings per Share (Rs.) For Financial Year ended Mar, 2015 58.6 50 42.1 40 31.2 28.1 30 21.6 19.3 20 16.9 17.6 10.5 11.2 11.4 10 7.0 0 48 Notes

  51. Slide 51: Book Value (Rs.)

    Book Value (Rs.) As on Mar, 2015 670 600 400 261 288 247 188 203 206 172 200 117 125 126 139 0 49 Notes

  52. Slide 52: Price to Book Value

    Price to Book Value As on Mar, 2015 5.0 4.14 4.0 2.97 3.0 2.27 2.0 1.55 0.71 0.83 1.0 0.49 0.54 0.55 0.55 0.66 0.42 0.0 50 Notes

  53. Slide 53: PE Ratio

    PE Ratio As on Mar, 2015 24.29 25 20 17.97 15.22 16.33 15 9.37 9.93 10 7.55 8.02 8.54 5.58 5.71 6.28 5 0 51 Notes

  54. Slide 54: Dividend Yield (%)

    Dividend Yield (%) For Financial Year ended Mar, 2015 5 3.83 4 3.13 3 2.66 2.85 2.29 2.42 2.02 2 1.58 1.63 1.31 0.78 0.82 1 0 52 Notes

  55. Slide 55: J&K State – Potential for Growth

    J&K State – Potential for Growth

  56. Slide 56: J&K State’s Economy – Basic Indicators

    J&K State’s Economy – Basic Indicators All India / National S. No. Particulars J&K State Average 1 Total Population (in crores) 1.25 121.02 2 Area (in Sq Kms) 222236 3287240 3 Density (persons / Sq Km) 124 382 Per capita Income (in 4 30335 39168 Rupees) 5 Population BPL (%) 21.63 % 27.5 % 6 Literacy

  57. Slide 57: J&K State Economy – Economic Reconstruction and its Impact

    J&K State Economy – Economic Reconstruction and its Impact  GDP / economy in J&K State poised for further growth in future. Proposed Flood Rehabilitation package of Rs 44000 crore will rise Government spending and Private Investment  Increased investment in tourist infrastructure pushing up credit

  58. Slide 58: J&K State – Credit Gap

    J&K State – Credit Gap  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 double and Personal Credit in J&K has to increase five-fol

  59. Slide 59: Road Ahead

    Road Ahead

  60. Slide 60: J&K Bank - Ground work done for growth

    J&K Bank - Ground work done for growth  Capital Adequacy at 12.57 % (Basel III), Tier I 11.26 % & Tier II 1.31 %.  Made liabilities the driver  Insulated earnings from external volatility by: — Linking assets to local needs — Linking liabilities to local sources  Increased reach with 704 branche

  61. Slide 61: J&K State – Business Strategy

    J&K State – Business Strategy  Increasing 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 59 Notes

  62. Slide 62: Outside State – Business Strategy

    Outside State – Business Strategy Nationally focus on  Rebuilding Corporate Loan Book with quality assets  Improving WC to TL Ratio  Impetus on SME / Retail sector lending in smaller cities 60 Notes

  63. Slide 63: Notes

    Notes

  64. Slide 64: www.jkbank.net

    EK Bank www. jkbank.net

Jammu & Kashmir Bank — Trinity India 2015 on 6ix