Srinagar, Jul 20: Announcing 155 per cent dividend to all shareholders, the Jammu and Kashmir bank has considerably increased its credit portfolio by about 35 per cent against less than 10 per cent earlier.
The annual Annual General Meeting of the shareholders unanimously approved in the meeting to pay 155 per cent dividend to the bank's shareholders for the year 2007-08.
During the past three years the business of the bank within Jammu and Kashmir has been growing annually by about 35 per cent compared to less than 10 per cent earlier.
Similarly the credit given by bank within the state is now 45 per cent of total credit portfolio of the bank, as compared to less than 35 per cent in 2005-06.
The commercial credit has registered a phenomenal growth of 66 per cent from Rs 3761 crore to Rs 6275 crore in two years.
This was stated by D Haseeb A Drabu, chairman and chief executive of the Bank in his address at the 70th Annual General Meeting of the shareholders of the bank held at SKICC here yesterday.
The successful implementation of our JK centric strategy has shown good results, said Dr Drabu, adding that the credit-deposit in Kashmir region, which was little over 35 per cent in 2006 has crossed 53 per cent in 2008. In Jammu the ratio has increased from 19 per cent to more than 30 per cent during the same period.
Emphasising that the Bank under its new strategy had stressed on customisation of products to fulfill the credit requirements of the people engaged in regional sub-economies, Dr Drabu said the credit products made by the Bank for agriculture, horticulture, shawl making, Sozni and Khatambhand touched thousands of lives.
It is not just adding to business but it is also about changing lives, he declared.
While focusing on Jammu and Kashmir state in its renewed business strategy, J &K Bank recorded a net profit of Rs 360 crore in financial year 2007-08, an increase of 31 per cent over the previous financial year's profit of Rs 274.49 crore.
The Bank's operating profits were up by over 17 per cent at Rs 651.84 crore at the end of March 2008 as compared to the financial year 2006-07.
Total income of the bank increased by 30.09 per cent and was recorded at Rs 2679.24 crore. This includes interest income of Rs 2434.23 crore and other income of Rs 245.01 crore.
Dr Drabu also announced the launch of Bank's emotive campaign ''I am listening'', emphasising upon the need to empathize with people to serve them better, he said, ''The idea behind the campaign is very simple. We want to give commerce a conscience.'' Reacting to a series of questions regarding the dearth of ATMs in the rural areas, Dr Drabu announced that J and K Bank plans to install around 150 more ATMs in J and K only.