J&K Bank posts Rs.56 crore net loss for last quarter

Srinagar, May 25 (IANS) J&K Bank, the state’s only listed company, has reported a net loss of over Rs.56. crore in the quarter ended March 31 — a first in its operational history of 75 years — largely attributed to bad loans.

However, the net profit for the last fiscal was at Rs.416 crore, which is also down by 18.2 percent in comparison to 2014-15, according to figures released Tuesday.

The bank in the last fiscal had posted a net profit of Rs.508.6 crore. The net income of the bank has also declined to Rs.7,347.6 crore from Rs.7,655.1 crore in 2014-15.

The bank is facing a major challenge of soaring Non-Performing Assets (NPA). As of March 2016, the bank’s gross NPAs soared to Rs.4,368.62 crore, which totals to 8.32 percent of gross advances.

As on December 31, 2015, it had NPAs worth Rs.3,339.45 crore. This indicates an increase of 1.51 percent in three months. The gross NPA ratio in 2011 was just 1.95 percent.

–IANS

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