JK Bank Approves 260% Dividend

JK Bank Approves 260% Dividend

9 July 2011
Rising Kashmir
Sajad Kralyari

Srinagar: Jammu and Kashmir Bank Saturday announced an all time high dividend of 260 per cent (Rs 26 per share) to its shareholders. Coinciding with its Platinum Jubilee celebrations, the bank is also targeting a net profit of Rs 1000 crores by 2013. Addressing the 73rd Annual General Meeting of the bank’s shareholders at SKICC here, Chairman and CEO, J&K Bank, Mustaq Ahmad said,“The bank has set an ambitious target of garnering a business of Rs 100,000 crores by March 2013 with a net profit of Rs 1000 crores.” Referring to the frequent disturbances in the valley, the chairman said the bank has recorded “unprecedented” growth in all spheres despite the unstable economic scenario in the state. “The bank recorded a total business of Rs 70,870 crores and net profit of Rs 6165.20 crores. The financial results reflect professionalism and excellence of the bank in the Indian banking industry,” said the bank chairman. Against the regulatory norm of 70 per cent, Mushtaq informed, J&K Bank’s Provision Coverage Ratio of 92.71 per cent has been the best in the banking industry. “At the same time, Return on Net Worth at 18.96 per cent and Dividend Yield of 3.21 per cent has made the bank among the best across country. The Net NPAs are just 0.20 per cent,” said Mushtaq. “This has been possible due to continuous efforts to provide better and improved banking services through high degree of professionalism.” He said all significant ratios have registered satisfactory improvement during the year. “Net worth at Rs. 3478.68 crore (up by 15.55 per cent), Earnings per share at Rs 126.90 (up by 20 per cent), Book value at Rs 717.58 (up by 15.55 per cent), NIM at 3.62 per cent (up by 58 bps) and yield on advances at 11.15 per cent (up by 50 bps) reflect strong fundamentals of the bank.” Disclosing the future plans of the Bank, the chairman said they are going for large scale increase in branch network especially in the unbanked and the under-banked areas of the state. “We will provide basic banking services in 1,250 unbanked areas of the State and at all important commercial centers of the country by March 2013. A comprehensive Finiancial Inclusion Plan has been formulated for this purpose which will provide services at the doorstep of the state’s population through a combination of Brick and Mortar and Business Correspondent Model,” informed Mushtaq. He said the bank is on a lookout for making effective use of technology in its operations and services. “We will intensify our efforts aimed at providing best service to our customers through optimum and appropriate use of technology.” The chairman said the bank has also taken a lead role in implementing Sher-i-Kashmir Employment and Welfare Programme for Youth (SKEWPY). “Bank has constituted a task force for monitoring implementation of this scheme to help unemployed youth become entrepreneurs.” Highlighting the bank’s responsibility towards society, Mushtaq said a well conceived Corporate Social Responsibility (CSR) policy is being implemented. “In this regard, Bank has focused on providing educational facilities to under privileged sections of the society, extending financial assistance for medical treatment of destitute and taking meaningful initiatives for preserving and promoting, heritage and handicrafts in the State besides promoting sports.”


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