J&K Bank reports historic profit of Rs 1,767 crore in 2023-24

Srinagar, May 6: Jammu and Kashmir Bank has achieved a remarkable milestone by reporting an annual profit of Rs 1,767 crore for the financial year 2023-24, the highest in its 85-year history.

This announcement was made by the bank's Managing Director and CEO, Baldev Prakash, during a media briefing on Monday.

The record-breaking profit comes nearly two months after Prime Minister Narendra Modi stated that his government had saved J&K Bank from bankruptcy. During a rally in Srinagar, the Prime Minister had alleged that the bank was a "big victim of nepotism and corruption" under previous governments.

Addressing the PM's statement, Prakash acknowledged that there were governance issues in the bank in the past, leading to the Union government granting a capital infusion of Rs 1,000 crore. "That (Rs 1,000 crore capital amount) was very, very critical because the capital adequacy ratio of the bank has to be up to minimum expectations as per the regulatory guidelines," Prakash said.

He further stated that the bank had taken "very, very concrete steps" to ensure there were no governance and compliance issues. "The policies of the Bank are well-defined and well-institutionalized now, and we expect that with the establishment of state-of-the-art technology and the best policies, we will be able to handle all these issues more effectively," the MD asserted.

Prakash expressed pride in the bank's achievement of recording the highest net profit in its history, attributing the success to the efforts of the staff, stakeholders, and top management. In addition to the impressive profit figures, the bank's board has recommended a handsome dividend of Rs 2.15 per share.

Another significant improvement highlighted by the MD was the enhancement of the bank's asset quality. "We had our biggest problem in asset quality, and because of the efforts, we have been able to improve by bringing the gross non-performing assets to 4.08 percent, while the net non-performing assets to 0.79 percent after a long time," Prakash said.

The Jammu and Kashmir Bank's remarkable performance and turnaround underline its commitment to good governance, transparency, and effective management practices, paving the way for a successful future.