Jammu & Kashmir Bank has slipped into the red, reporting a standalone net loss of \u20b9294 crore for the fourth quarter ended March 31, 2020, against a net profit of \u20b9215 crore in the year-ago quarter.<\/p>\n\n\n\n\n\n
The bank, which is majority owned by the Government of the Union Territory of J&K, had reported a standalone net profit of \u20b950 crore in the quarter ended December 31, 2019.<\/p>\n\n\n\n\n\n
For FY20, J&K Bank reported a standalone net loss of \u20b91,139 crore, against a net profit of \u20b9465 crore in FY19.<\/p>\n\n\n\n\n\n
Net interest income (difference between interest earned and interest expended<\/em>) in Q4 increased 6 per cent year-on-year (YoY)<\/em> to \u20b9987 crore (\u20b9931 crore in the year-ago quarter<\/em>). Other income, comprising commission\/exchange, profit on sale of investments, recovery in written-off accounts and profit on exchange transactions, was sharply down 70 per cent YoY at \u20b9121 crore (\u20b9404 crore<\/em>).<\/p>\n\n\n\n\n\n Operating profit before provisions and contingencies was down 36 per cent at \u20b9382 crore (\u20b9601 crore<\/em>).<\/p>\n\n\n\n\n\n Loan loss provisions increased by 30 per cent YoY to \u20b9586 crore (\u20b9450 crore).<\/p>\n\n\n\n As per the notes to accounts, J&K Bank extended the moratorium on advance accounts aggregating \u20b910,290 crore, which were in the special mention account (SMA<\/em>)\/overdue category as on March 1, 2020. Further, the bank has extended the benefit of asset classification in advance accounts having outstanding of \u20b92,948.54 crore and has made a provision of \u20b9147.50 crore (at the rate of 5 per cent<\/em>) on these advances during the current quarter.<\/p>\n\n\n\n\n\n Gross non-performing assets (NPAs) declined to 10.97 per cent of gross advances as of March-end 2020, against 11.10 per cent as of December-end 2019.<\/p>\n\n\n\n\n\n Net NPAs position improved to 3.48 per cent of net advances as of March-end 2020, against 4.36 per cent as of December-end 2019.<\/p>\n\n\n\n\n\n As at March-end 2020, deposits were up 9 per cent YoY to \u20b997,788 crore. Advances declined 3 per cent YoY to \u20b964,399 crore.<\/p>\n\n\n\n\n\n During the financial year ended March 31, 2020, the Government of UT of J&K infused \u20b9500 crore capital in the bank. The bank allotted and issued about 15.65 crore equity shares of \u20b91 each fully paid at an issue price of \u20b931.93 (including premium of \u20b930.93 per share).<\/em><\/p>\n\n\n\n\n\n The Government of UT of J&K’s holding in the bank has increased to 68.18 per cent as on March 31, 2020 from 59.23 per cent as at December-end 2019.<\/p>\n\n\n\n\n\nProvisions<\/h2>\n\n\n\n