Srinagar, Jul 31 (UNI) Jammu and Kashmir Bank has posted net profit of Rs 94.56 crore, an increase of 14 per cent for the first quarter ended June 2008.
The bank's operating profit went up by 38 per cent at Rs 181.50 crore, a bank spokesman said here today.
He said importantly, the bank has been able to withstand current adverse banking scenario, wherein almost all major banks of the country are posting negative or very little growth in their profits.
Bank officials attribute this performance to the bank's strategy of lending more within the state.
The driver of this growth has been the new business strategy adopted by the bank, which envisages major focus on Jammu and Kashmir.
He said, ''under the new strategy, the aim of the bank is to increase lending in Jammu and Kashmir, which is high margin low volume. For this bank has been developing specific products suiting the local small economies of the state.
Chairman of the bank Dr Haseeb A Drabu said,'' the new financial products come about because people in the economy find them useful.
Our stream of new products have a common thread in their design and development and they fulfill the basic economic objectives of people in the local economy,'' he said.
The Net Interest Margins of the Bank have improved to 3.09 per cent for the quarter ended June 2008 as compared to 2.90 per cent for the corresponding quarter of the last fiscal.
Breaking away from the Industry trend, cost of deposits of the bank has come down 5.71 per cent for the quarter ended June 2008 as compared to 5.93 per cent for the same period a year ago.
The total business turnover increased to Rs 48,579 crore in Q1fyog quarter 09, an increase of 15 per cent over Q1fyog.
The loan book of the bank as on June 30, 2008 stood at Rs 20,075 crore up 15.70 per cent from last year's Rs.17,351 crore.
UNI BAS SG VC1422