J&K Bank posts Q3 net loss at Rs 498 cr

Jammu & Kashmir Bank Ltd has informed BSE that Mr. R. K. Gupta Director has tendered his resignation from the Directorship of the Bank due to personal reasons.The Board of Directors in their meeting held on February 04, 2017 took on record the aforesaid changes in the Composition of Board of Directors of the Bank.

Jammu and Kashmir Bank today reported a net loss at Rs 498.47 crore for the third quarter ended December 2016, mainly due to sharp jump in provisions for bad loans.

The bank had reported a net profit of Rs 117.68 crore in October-December quarter of 2015-16.

Its total income also decreased to Rs 1,770.2 crore in the reporting quarter, from Rs 1,806.08 crore in the same period last fiscal, the bank said in a BSE filing.

The total provisions excluding income tax increased over three-fold to Rs 726.28 crore, as against Rs 239.67 crore in the year-ago period.

Gross NPA as a percentage of total advances rose significantly to 11.84 per cent, from 6.81 per cent a year earlier. The bank’s net NPA stood at 5.99 per cent, from 2.60 per cent at the end of December 2015.

In a separate filing, Jammu and Kashmir Bank said its board of directors have approved the proposal for further issue of equity shares of the bank up to a maximum of Rs 250 crore (including the premium amount) on a preferential allotment basis to the government of Jammu and Kashmir, the promoter and majority shareholder of the bank, subject to approvals.