J&K Bank shares soar: Rs 1 lakh turns to Rs 12 lakh in just 4 years

Srinagar, Mar 10: In a remarkable turnaround tale, the Jammu and Kashmir Bank has emerged as a millionaire-maker for investors who had the foresight to invest in its shares four years ago.

According to financial analysts, an investment of just Rs 1,00,000 in J&K Bank shares in April 2020, when the bank was grappling with financial distress, would have grown to an astonishing Rs 12.6 lakh by today. This staggering growth translates to an impressive return of over Rs 11 lakh, a testament to the bank's incredible resurgence from the brink of collapse.

The bank's share price has witnessed a meteoric rise, surging from a mere Rs 11.10 in April 2020 to the current trading price of Rs 140 per share. This remarkable appreciation of Rs 128 per share over the past four years has caught the attention of investors and market watchers alike, who are hailing the bank's turnaround as one of the most remarkable success stories in the financial sector.

This turnaround didn't skip the attention of Prime Minister Narendra Modi, who, on his first visit to Kashmir after the abrogation of Article 370, made a special mention of the bank's meteoric rise. The Prime Minister read the entire results of the bank from the last quarter. "Five years ago, the bank's business had shrunk to Rs 1.25 lakh crore, now the business of the bank has crossed Rs 2.25 lakh crore," he said. "5 years ago, the deposits in the bank had also reduced by Rs 80 thousand crores, that is, now it is going to be almost two times." He said the bank's NPA has gone down from 11 to five per cent. "In the last five years, the share price of JK Bank has also increased by almost 12 times. The share price of the bank which had fallen to Rs 12, has now reached around Rs 140. When there is an honest government and the intention is for the welfare of the people, then the people can be rescued from every difficulty," he asserted.

PM Modi also alleged that the Jammu and Kashmir (JK) Bank had fallen victim to dynasty rule's nepotism, corruption, and mismanagement. He said the "about to sink" bank was revitalized by interventions in the last five years and converted into a profit-making institution.

"J&K Bank's turnaround story is nothing short of remarkable," said a senior J&K Bank executive. "The bank's management has implemented robust strategies and structural reforms, which have not only strengthened the bank's financial position but also restored investor confidence."

The bank's impressive performance can be attributed to a combination of factors, including prudent lending practices, efficient cost management, and a focus on digital transformation. Additionally, the bank's strong presence in J&K has played a crucial role in its success, as UT's economy has shown signs of steady growth in recent years.