Earnings Update

Audited Quarterly & Full-Year Results

March 31, 2012

EARNINGS UPDATE MARCH 31, 2012

The Board of Directors of The Jammu & Kashmir Bank Ltd. at their meeting held
on May 12, 2012 took on record the audited financial results for the Fourth
Quarter ended March 31, 2012.
Performance Highlights for the quarter ended March 31, 2012:

Net Profit up 50 % at Rs 208 crore for the quarter ended Mar, 2012 as
compared to Rs 139 crore earned during the quarter ended Mar, 2011.
EPS for the quarter ended Mar, 2012 at Rs 42.93 up 50 % from Rs 28.58
earned during the corresponding quarter of previous financial year.
NIMs (Net Interest Margins) Ratio for the quarter ended Mar, 2012 at 3.86
% (annualized) vis--vis 3.72 % for the corresponding quarter of previous
financial year.
Post tax Return on Assets at 1.38 % (annualized) for the quarter ended
Mar, 2012 compared to 1.10 % for the corresponding period of the
previous financial year
Post Tax Return on Average Net-Worth (annualized) for the quarter
ended Mar, 2012 at 20.39 % improving by 448 basis points from 15.91 %
recorded for the corresponding quarter a year ago.
The Yield on Advances (annualized) for the current quarter improved by
104 basis points to 12.19 % compared to 11.15 % for the quarter ended
Mar, 2011.
Business per Employee and Net profit per Employee (annualized)
improved further to Rs 9.3 crore and Rs 9 lakh respectively for the quarter
ended Mar, 2012 from Rs 8.9 crore and Rs 7 lakh pertaining to the
quarter ended Mar, 2011.
Gross and Net NPAs as percentages to Gross and Net Advances as on
Mar, 2012 at 1.54 % and 0.15 % respectively compared to 1.95 % and
0.20 % a year ago.
NPA Coverage Ratio as on Mar, 2012 at 93.76 % well above RBI
stipulated norm of 70 %.
Cost to Income Ratio declined further to 34.58 % for the current quarter
from 44.66 % pertaining to the quarter ended Mar, 2011.

EARNINGS UPDATE MARCH 31, 2012

The Board of Directors of The Jammu & Kashmir Bank Ltd. at their meeting held
on May 12, 2012 took on record the audited financial results for the full year
ended March 31, 2012.
Performance Highlights for the full year ended March 31, 2012:

Net Profit up 30.6 % at Rs 803 crore for the financial year ended Mar,
2012 as compared to Rs 615 crore earned during the financial year
ended Mar, 2011.
EPS for the year ended Mar, 2012 at Rs 165.69 up 30.6 % from Rs
126.90 earned during the previous financial year.
NIMs (Net Interest Margins) Ratio for the current financial year ended
Mar, 2012 at 3.58 % vis--vis 3.62 % for the previous financial year.
Post tax Return on Assets at 1.33 % for the FY ended Mar, 2012
compared to 1.22 % for the previous financial year.
Post Tax Return on Average Net-Worth for the FY ended Mar, 2012 at
21.22 % recording an improvement of 226 points from 18.96 % pertaining
to the previous financial year.
Yield on Advances for the current FY improved to 11.45 % compared to
10.68 % for the FY ended Mar, 2011.
Cost of Deposits for the current FY stood at 5.92 % compared to 5.05 %
for the FY ended Mar, 2011.
Net profit per Employee improved to Rs 8.68 lakh for the financial year
ended Mar, 2012 from Rs 7.75 lakh pertaining to the year ended Mar,
2011.
Cost to Income Ratio at 36.92 % for the current fiscal which was at 39.77
% for the fiscal ended Mar, 2011.
Comfortable Capital Adequacy Ratio (Basel II) at 13.36 % as on Mar,
2012, well above RBI stipulated norm of 9 %.
Net Asset Value improved to Rs 844 as on Mar, 2012 compared to Rs
718 a year ago.

EARNINGS UPDATE MARCH 31, 2012

Profit & Loss Account

Amount in Rupees crore

Q4

Q4

Interest Earned

1357.54

1013.86

33.90%

4835.58

3713.13

30.23%

Interest Expended

841.44

598.12

40.68%

2997.22

2169.47

38.15%

Net Interest Income

516.10

415.74

24.14%

1838.36

1543.66

19.09%

Other Income

122.27

119.02

2.73%

334.12

364.76

-8.40%

Operating Income

638.37

534.76

19.38%

2172.48

1908.42

13.84%

Operating Expenses

220.75

238.83

-7.57%

802.15

758.93

5.69%

Operating Profit

417.62

295.93

41.12%

1370.33

1149.49

19.21%

Provisions & Contingencies

84.26

75.60

11.46%

169.23

215.10

-21.32%

PBT

333.36

220.33

51.30%

1201.10

934.39

28.54%

Tax Provision

125.24

81.77

53.16%

397.85

319.19

24.64%

Net Profit

208.12

138.56

50.20%

803.25

615.20

30.57%

Share Capital

48.49

48.49

0.00%

48.49

48.49

0.00%

EPS in Rs.

42.93

28.58

50.20%

165.69

126.90

30.57%

Net Interest Margins

0.97%

0.93%

Net Interest Margins (Ann.)

3.86%

3.72%

3.58%

3.62%

Particulars

Year ended Year ended

%
%
FY 11-12 FY 10-11 Change Mar, 2012 Mar, 2011 Change

EARNINGS UPDATE MARCH 31, 2012

Balance Sheet

Amount in Rupees crore

As on March
31, 2012

As on March
31, 2011

%
Change

48.49

48.49

0.00%

Reserves & Surplus

4044.69

3430.19

17.91%

Deposits

53346.90

44675.94

19.41%

Borrowings

1240.96

1104.65

12.34%

Other Liabilities & Provisions

1588.18

1248.88

27.17%

60269.22

50508.15

19.33%

Cash & Bank Balance

2783.65

2974.96

-6.43%

Balance with Bank and Money at Call & Short Notice

1670.22

573.84

191.06%

Investments

21624.32

19695.77

9.79%

Advances

33077.42

26193.64

26.28%

Fixed Assets

420.27

393.77

6.73%

Other Assets

693.34

676.17

2.54%

60269.22

50508.15

19.33%

Particulars

Capital & Liabilities

Capital

Total

Assets

Total

EARNINGS UPDATE MARCH 31, 2012

Segmental Revenues & Profits:

Revenues
Particulars

Amount in Rupees crore

Q4
Q4
%
Year Ended Year Ended
%
FY 11-12 FY 10-11 Change Mar, 2012 Mar, 2011 Change

Treasury Operations

413.91

326.09

26.93%

1500.61

1197.66

25.30%

Corporate / Wholesale Banking

524.25

324.48

61.57%

1745.50

1397.16

24.93%

Retail Banking

628.07

606.27

3.60%

2245.31

1911.74

17.45%

Other Banking Business

12.27

10.13

21.13%

38.23

34.59

10.52%

Less Inter Segment Revenue

98.69

134.09

-26.40%

359.95

463.26

-22.30%

1479.81

1132.88

30.62%

5169.70

4077.89

26.77%

Net Income from Operations

Profits

Amount in Rupees crore

Particulars

Treasury Operations

Q4
Q4
%
Year Ended Year Ended
%
FY 11-12 FY 10-11 Change Mar, 2012
Mar, 2011 Change
7.62

-20.99

136.30%

30.25

-4.87

721.15%

Corporate / Wholesale Banking

252.31

115.35

118.73%

906.59

596.66

51.94%

Retail Banking

63.81

117.91

-45.88%

233.89

314.36

-25.60%

Other Banking Business

9.62

8.06

19.35%

30.37

28.24

7.54%

333.36

220.33

51.30%

1201.10

934.39

28.54%

Total Profit before Tax

EARNINGS UPDATE MARCH 31, 2012

Break-up:
1. Interest Earned

Amount in Rupees crore

Particulars

Q4 FY
11-12

Q4 FY
10-11

On Loans & Advances

956.83

718.44

33.18%

3393.66

2629.60

29.06%

Investments

386.63

290.06

33.29%

1403.26

1066.15

31.62%

Inter Bank Funds

14.08

5.36

162.69%

38.66

17.38

122.44%

1357.54

1013.86

33.90%

4835.58

3713.13

30.23%

Total

%
Year Ended Year Ended
%
Change Mar, 2012 Mar, 2011 Change

2. Interest Expended

Amount in Rupees crore

Q4 FY
11-12

Q4 FY
10-11

Deposits

817.13

572.78

42.66%

2901.75

2069.17

40.24%

Borrowings

10.81

11.84

-8.70%

41.47

46.30

-10.43%

Others (Subordinated Debt)

13.50

13.50

0.00%

54.00

54.00

0.00%

841.44

598.12

40.68%

2997.22

2169.47

38.15%

Particulars

Total

%
Year Ended Year Ended
%
Change Mar, 2012 Mar, 2011 Change

3. Other Income

Amount in Rupees crore

Q4 FY
11-12

Q4 FY
10-11

Commission / Exchange

44.42

43.28

2.63%

151.16

146.01

3.53%

Insurance Commission

10.18

8.13

25.22%

29.56

26.14

13.08%

Treasury / Trading Income

8.46

22.72

-62.76%

35.87

92.38

-61.17%

Miscellaneous Income

59.21

44.89

31.90%

117.53

100.23

17.26%

122.27

119.02

2.73%

334.12

364.76

-8.40%

Particulars

Total

%
Year Ended Year Ended
%
Change Mar, 2012 Mar, 2011 Change

EARNINGS UPDATE MARCH 31, 2012

Break-up:
4. Provisions & Contingencies

Amount in Rupees crore

Q4 FY
11-12

Q4 FY
10-11

Provision for Tax

125.24

81.77

53.16%

397.85

319.19

24.64%

Provision for Bad & Doubtful

Debts

37.00

32.00

15.63%

90.00

130.00

-30.77%

Provision for Standard

Advances

30.00

Provision for Depreciation on

Investments

4.29

41.03

-70.05%

Particulars

Provision for Funded Interest

on Term Loan
Provision for Frauds/
Embezzlements
Contingencies
Provision for diminution in fair
value of Restructured /
Rescheduled advances
Provision for Contingent
Liabilities
Total

%
Year Ended Year Ended
%
Change Mar, 2012 Mar, 2011 Change

30.00
19.80

-78.33%

12.29

-6.08

5.00

0.01

1.20

-99.17%

1.49

1.95

-23.59%

14.25

21.04

-32.27%

14.25

21.04

-32.27%

-2.48

7.64

-132.46%

20.01

16.08

24.44%

534.29

6.14%

1.19
209.50

1.19
157.37

33.13%

5. Deposits

567.08

Amount in Rupees crore

As on Mar 31, 2012

As on Mar 31, 2011

%
Change

Demand Deposits

5734.44

5359.87

6.99%

Saving Deposits

15980.71

12726.83

25.57%

Term Deposits

31631.75

26589.24

18.96%

53346.90

44675.94

19.41%

Particulars

Total

EARNINGS UPDATE MARCH 31, 2012

Movement in Gross NPAs

Amount in Rupees crore

For FY ended
Mar 31, 2012

Particulars

Balance at the start of the year

518.83

Additions during the year

314.68

Recoveries / Up gradations etc during the year

316.91

Balance at the close of the year

516.60

Movement in Restructured Assets

Amount in Rupees crore

For FY ended
Mar 31, 2012

Particulars

Balance at the start of the year

1545.10

Additions during the year

570.40

Repayments / Recoveries / Up gradations etc during the year

749.75

Balance at the close of the year

1365.75

Break-up of Restructured Accounts during FY 2011-12

CDR
SME Debt
Mechanism Restructuring
Standard Advances No. of Borrowers
Restructured
Amount Outstanding
Sub - standard
No. of Borrowers
Advances
Restructured
Amount Outstanding
Doubtful Advances No. of Borrowers
Restructured
Amount Outstanding
TOTAL

No. of Borrowers
Amount Outstanding

Amount in Rupees crore

Others

TOTAL

12

157

177

267.54

241.98

60.85

570.37

Nil

Nil

Nil

Nil

Nil

Nil

0.03

0.03

12

158

178

267.54

241.98

60.88

570.40

EARNINGS UPDATE MARCH 31, 2012

Categorization of Investments (I)

Amount in Rupees crore

As on Mar 31,
2012

As on Mar 31,
2011

% Change

11205.11

9474.31

18.27%

Debentures & Bonds

209.99

236.15

-11.08%

Subsidiaries & Joint Ventures

27.11

27.11

0.00%

2474.56

2489.61

-0.60%

13916.77

12227.18

13.82%

64.36%

62.08%

0.30

0.49

-38.78%

-38.78%

Particulars
Held to Maturity (HTM)
Government & other approved Securities
Shares

Others
Sub-Total
Percentage of HTM to Total Investments
Held for Trading (HFT)
Government & other approved Securities
Shares
Debentures & Bonds
Subsidiaries & Joint ventures
Others
Sub-Total
Percentage of HFT to Total Investments

0.30

0.49

0.00%

0.00%

349.81

860.87

-59.37%

Available for Sale (AFS)

Government & other approved Securities
Shares

307.74

291.46

5.59%

Debentures & Bonds

1771.49

1695.04

4.51%

5278.21

4620.73

14.23%

7707.25

7468.10

3.20%

35.64%

37.92%

21624.32

19695.77

Subsidiaries & Joint ventures

Others
Debt / Money Market related MFs
Reverse Repo
Sub Total
Percentage of AFS to Total Investments
Total Investment

Categorization of Investments (II)

9.79%

Amount in Rupees crore

As on Mar 31,
2012

As on Mar 31,
2011

% Change

SLR Securities

11554.92

10335.19

11.80%

Non SLR Securities

10069.40

9360.58

7.57%

21624.32

19695.77

9.79%

53.43%

52.47%

46.57%

47.53%

Particulars

Total Investment
SLR Securities as % age to total Investments
Non SLR Securities as % age to total
Investments

EARNINGS UPDATE MARCH 31, 2012

Analytical Ratios:
Q 4 FY
11-12

Q 4 FY
10-11

Annualized

0.97
3.86

0.93
3.72

3.58

3.62

Annualized

3.05
12.19

2.79
11.15

11.45

10.68

Annualized

1.86
7.46

1.57
6.29

6.79

6.34

Annualized

1.60
6.40

1.34
5.36

5.92

5.05

Annualized

0.35
1.38

0.27
1.10

1.33

1.22

Post Tax Return on Average Net-worth (%)

Annualized

5.10
20.39

3.98
15.91

21.22

18.96

Cost to Income Ratio (%)

34.58

44.66

36.92

39.77

Credit / Deposit (CD) Ratio (%)

62.00

58.63

62.00

58.63

CASA Ratio (%)

40.71

40.48

40.71

40.48

Business per Employee (In Rupees lakh)

934.12

892.79

934.12

892.79

2.25
9.00

1.75
6.98

8.68

7.75

Particulars
Net Interest Margins (%)
Yield on Advances (%)
Yield on Investments (%)
Cost of Deposits (%)
Post Tax Return on Assets (%)

Net Profit per Employee (In Rupees lakh)

Annualized
Number of Employees

Year Ended Year Ended

Mar 2012
Mar 2011

9252

7938

9252

7938

Business Per Branch (In Rupees crore)

143.32

129.32

143.32

129.32

Net Profit per Branch (In Rs lakh) Annualized

138.06

101.14

133.21

112.26

Branches- Excluding Extension Counters /

Controlling Offices

603

548

603

548

Gross NPAs

(In Rupees crore)

516.60

518.83

516.60

518.83

Net NPAs

(In Rupees crore)

49.34

53.24

49.34

53.24

Gross NPA Ratio (%)

1.54

1.95

1.54

1.95

Net NPA Ratio (%)

0.15

0.20

0.15

0.20

NPA Coverage Ratio (%)

93.76

92.71

93.76

92.71

12.53

13.30

12.53

13.30

i. Tier I
ii. Tier II

10.43
2.10

10.99
2.31

10.43
2.10

10.99
2.31

Capital Adequacy Ratio (%) Basel II

i. Tier I
ii. Tier II

13.36
11.12
2.24

13.72
11.33
2.39

13.36
11.12
2.24

13.72
11.33
2.39

Earning per Share

42.93
171.72

28.58
114.33

165.69

126.90

Capital Adequacy Ratio (%) Basel I

(In Rupees)
Annualized

Net Asset Value

(In Rupees)

844.34

717.58

844.34

717.58

Adjusted Book Value

(In Rupees)

834.16

706.60

834.16

706.60

Dividend Payout Ratio (%)

20.22

20.49

Dividend Yield (%)

3.95

3.21

EARNINGS UPDATE MARCH 31, 2012

Key Ratios based on Fortnightly / Monthly averages:

Q 4 FY
11-12

Q 4 FY
10-11

Annualized

1.00
3.99

0.93
3.71

3.84

3.69

Annualized

3.15
12.59

2.71
10.86

12.12

10.86

Annualized

1.86
7.44

1.61
6.46

7.29

6.34

Annualized

1.69
6.77

1.37
5.49

6.48

5.36

Return on Assets (%) (on monthly average)

Annualized

0.37
1.48

0.29
1.15

1.56

1.38

Particulars
Net Interest Margins (%)
Yield on Advances (%)
Yield on Investments (%)
Cost of Deposits (%)

Year Ended Year Ended

Mar 2012
Mar 2011

Shareholding Pattern (as on May 4, 2012):

S No.

PARTICULARS

NUMBER OF SHARES
PHYSICAL

TOTAL

% TO

ELECTRONIC

SHARES

CAPITAL

1.

GOVERNMENT OF J&K

25775266

25775266

53.17

2.

INDIAN MUTUAL FUNDS

1152275

1152275

2.38

3.

INSURANCE COMPANIES

215608

215608

0.44

4.

NON RESIDENT INDIANS

199214

200714

0.41

5.

FOREIGN INST. INVESTORS

12525223

12525223

25.84

6.

BODIES CORPORATES

17694

3333092

3350786

6.91

7.

RESIDENT INDIVIDUALS

1903131

3346087

5249218

10.83

8.

CLEARING MEMBERS

8712

8712

0.02

46555477

48477802

100.00

TOTAL

For more information, contact:

Parvez Ahmad,
Executive President,
J & K Bank Ltd., Corporate Headquarters,
M.A.Road, Srinagar, 190 001.
Email: parvez.ahd@gmail.com

1500

1922325