J&K Bank has registered a net loss of Rs 1,139 crore for the financial year ended March (FY20) due to higher provisioning for bad loans.
The lender's net interest income increased by 10 per cent Rs 3,707 crore as against Rs 3,384 crore in FY19. The advances stood at Rs 64,399 crore while deposits witnessed a growth of over 9 per cent reaching up to Rs 97,788 crore from Rs 89,639 crore, thereby increasing the total business of the bank by 4 per cent to Rs 1.62 lakh crore.
The operating profit before provisioning stood at Rs 1,525 crore. "Owing to a substantial increase in provisions to the tune of Rs 2,523 crore made towards bad and doubtful assets against Rs 1,053 crore made during the previous year, the bank registered a net loss of Rs 1,139.41 crore for the FY ended March 2020," it said in a statement.
To strengthen its bottom-line in the near future, the bank increased its provisioning coverage ratio to 78.59 per cent from 64.3 per cent year-on-year. The net non-performing assets (NPAs) for Q4 came down to 3.48 per cent from 4.89 in the corresponding quarter of previous fiscal.
"The numbers are quite evident and adequately mirror the times wherein the financial institutions around the globe appear grappling with the impact of unprecedented lockdowns amid the ongoing pandemic while highlighting the resilient nature of our human capital to deal with such crisis of colossal proportions," said Chairman R K Chhibber.
Under the Central government's Guaranteed Emergency Credit Line (GECL) scheme, J&K Bank disbursed an amount of Rs 1,069 crore to 31,069 borrowers.
Besides government-sponsored financial support to economically weaker sections, the bank said it has been continuously innovating its financial offerings in order to provide much-needed liquidity support and business continuity plans to the stressed business community of the region.
( With inputs from ANI )