J&K bank Oct-24

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Questions and Answers

What is the purpose of the disclaimer in the investor presentation?

To promote the bank’s investment products.

To clarify the nature of forward-looking statements. (correct)

To inform about the bank's strategic goals.

To detail the bank's financial performance.

Who is the signatory of the document?

The investor presentation team

Mohammad Shafi Mir (correct)

Jammu and Kashmir Bank Limited

The Company Secretary

What characterizes the statements described as 'forward-looking statements'?

They provide guarantees of future performance.

They contain exact future financial outcomes.

They express expectations about future events. (correct)

They are based on historical data only.

Which factor is NOT mentioned as a risk affecting the bank's forward-looking statements?

Changes in leadership Signup and view all the answers

What does the bank suggest about the assumptions made for forward-looking statements?

They might be subject to change. Signup and view all the answers

Which of the following is NOT a component of the bank's operational risks mentioned?

Changes in technology Signup and view all the answers

What is the primary focus of the investor presentation?

General informational purposes. Signup and view all the answers

Which of the following is an example of what may cause actual results to differ from forward-looking statements?

Unforeseen market changes Signup and view all the answers

What is Baldev Prakash's role in his current position?

Chief Executive Officer Signup and view all the answers

Which qualification is NOT mentioned for Baldev Prakash?

Masters in Public Policy Signup and view all the answers

Which individual has experience specifically in Corporate Law and Taxation?

Mr. Santosh Dattatraya Vaidya Signup and view all the answers

What is a key area of expertise for Mr. Umesh Chandra Pandey?

Audit Compliance Signup and view all the answers

Which of these statements regarding Dr. Mandeep K Bhandari is true?

He holds a Gold Medal in MBBS. Signup and view all the answers

What unique role does Mr. Anil Kumar Goel hold?

Information Systems Auditor Signup and view all the answers

What is a common trait shared among most individuals listed?

Long-term experience in banking Signup and view all the answers

Which of the following is NOT a position held by an IAS officer?

Chartered Accountant Signup and view all the answers

What percentage of the total outstanding amount is attributed to AAA borrowers?

60.17% Signup and view all the answers

Which sector has the highest provisions for Non-Performing Assets (NPA)?

Services Signup and view all the answers

What is the total outstanding amount (BOS) for the Manufacturing sector?

478.09 crore Signup and view all the answers

What is the award received by J&K Bank MD Baldev Prakash in 2023?

Impactful CEO Award Signup and view all the answers

How many borrowers fall under the 'BB & Below' category?

168 Signup and view all the answers

What total percentage of the outstanding amount is attributed to unrated borrowers?

3.87% Signup and view all the answers

Which sector has the smallest total provisions?

Others Signup and view all the answers

What is the total eligible amount for rating?

₹25,203 crore Signup and view all the answers

At which event did the J&K Bank receive a Platinum Award for Process Innovation?

Infosys Finacle Innovation Awards Signup and view all the answers

What is the total amount of provisions for the Agriculture sector?

111.34 crore Signup and view all the answers

What significant award was given to MD & CEO Baldev Prakash in 2023?

Times Now India’s Impactful CEO Award Signup and view all the answers

Which certification did the bank achieve for both Issuance and Acquiring?

Payment Card Industry Data Security Standard (PCIDSS) Version 4 Certification Signup and view all the answers

In which decade did the bank tie up with an MNC for Bancassurance?

1990s Signup and view all the answers

What was the total business crossed by the bank in Fiscal 2023?

₹ 2 lakh crore Signup and view all the answers

What type of awards did the bank win at the MSME Banking Excellence Awards in 2023?

Best MSME Bank Award Signup and view all the answers

Which rating agency upgraded the bank's long-term issuer rating to INDAA-?

India Ratings Signup and view all the answers

What recognition did the bank receive at the Infosys Finacle Innovation Awards in 2024?

Platinum Award for Process Innovation Signup and view all the answers

In which year did the bank complete a Qualified Institutional Placement (QIP) of ₹ 750 crores?

2023-24 Signup and view all the answers

Which award did the bank receive for its performance in profitability at the ICC Emerging Asia Banking Conclave & Awards 2024?

Best Private Sector Bank Performance Award Signup and view all the answers

What distinguishes the bank as the first Scheduled Commercial Bank in its category regarding digital security standards?

Being awarded PCIDSS Certification Version 4 Signup and view all the answers

What was the Cost of Deposits for Q2, as mentioned in the report?

4.80% Signup and view all the answers

What is the recorded improvement in Net Interest Margin (NIM) for the quarter?

3.90% Signup and view all the answers

What was the annualized Return on Assets for the half year?

1.24% Signup and view all the answers

What was the Cost to Income ratio recorded for the quarter?

54.56% Signup and view all the answers

What was the gross slippage ratio for the half year?

0.91% Signup and view all the answers

As of 30 September 2024, what was the recorded Gross Non-Performing Asset (GNPA) percentage?

3.95% Signup and view all the answers

What is the estimated provision requirement on account of ageing of NPAs for the second half-year?

Rs.127 Crores Signup and view all the answers

What percentage did the collection efficiency in standard restructured accounts reach during the quarter?

100% Signup and view all the answers

What was the percentage change in promoters' shareholding from September 30, 2023, to September 30, 2024?

2.54% Signup and view all the answers

Which group had the second largest shareholding percentage as of September 30, 2024?

Resident Individuals Signup and view all the answers

What was the shareholding percentage of Foreign Institutional Investors as on September 30, 2023?

2.61% Signup and view all the answers

How many shares did Indian Financial Institutions hold on September 30, 2024?

3,23,89,904 Signup and view all the answers

Which category saw the most significant increase in shareholding percentage from September 30, 2023, to September 30, 2024?

Foreign Institutional Investors Signup and view all the answers

What was the total number of shares reported on September 30, 2024?

110,11,82,463 Signup and view all the answers

Which group experienced a decrease in shareholding percentage by 19 basis points?

Non-Resident Indians Signup and view all the answers

What was the total percentage of shareholding held by Indian Mutual Funds as of September 30, 2024?

2.94% Signup and view all the answers

What was the shareholding percentage of Resident Individuals on September 30, 2024?

22.71% Signup and view all the answers

How many shares did Clearing Members hold as of September 30, 2024?

2,299 Signup and view all the answers

Study Notes

J&K Bank Investor Presentation and Conference Call Notes

Date of Conference Call: October 25, 2024
Subject: Presentation and Audio of Conference Call related to Q3 and H1 Financial Results of the Bank ended September 30, 2024
Conference Call Access: Recordings and presentations available at specified URLs
SEBI Regulations: Conference call conducted and materials distributed in compliance with SEBI regulations (Regulations 30 and 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)
Bank's Financial Performance: Investors and analysts briefed about Reviewed Financial Results of the Bank for the Quarter and Half Year ended September 30, 2024.
Bank's Strengths: Highlights of the company's strengths were provided in a separate slide presentation.
Branch Network:
- Wide branch network with 1,008 branches, 834 in J&K, 37 in Ladakh, and 137 branches outside J&K and Ladakh in 20 states and UTs.
Bank's Services: The bank offers various banking services catered to different customer segments.
Digital presence: The bank is improving its digital presence with increasing offerings like internet and mobile banking.
Investments Profile: The investment profile for the bank, including details about their investment duration, is also highlighted in the presentation.

Investor Presentation - Quarter and Half Year 2024

Date: October 25, 2024
Period Covered: Quarter and Half Year ended September 30, 2024
Information: Presentation details include financial performance, asset mix, and key financial ratios for J&K Bank.
Growth: Growth in deposits and advances at the bank, alongside total business were highlighted in the presentation
Disclaimer: The presentation includes a disclaimer stating that the financial figures are from audited or reviewed financials, based on management estimates, and that the investors use this information at their risk and responsibility.

Key Financial Ratios and Performance Indicators

Profitability:
- Net Interest Margin (NIM) (Annualized) (2024 Q2)
- Operating Profit (2024 Q2)
- Profit after Tax (2024 Q2)
Growth:
- Deposits (2024 Q2)
- Net Advances
Capital Adequacy:
- Tier 1 Capital (%)
- CET 1 (%)
- CRAR (%)
Asset Quality:
- Gross NPA (%)
- Net NPA (%)
- Provision Coverage Ratio (%)

Key Strategies

Focus on improving Asset Quality: Maintaining and reducing Non-Performing Assets (NPA) levels.
Enhancement of Deposit Base: Increasing CASA deposit base to increase efficiency and reduce cost of funds.
Expand Services beyond Jammu and Kashmir: Growing market presence and providing greater banking services by expanding branch and ATM network.
Investment in Technology: Implementing improvements in technology to enhance digital banking services for the bank, also improving cost reduction.
Focus on Retail, agriculture, and MSME Segments: Prioritization and focus on serving this specific market segment for the company.

Shareholding Information

Promoters' Shareholding: Percentage of shares held by promoters of the bank.
Resident Individuals' Shareholding: Percentage of shares held by resident individuals.
Other categories: Percentage of shares held by FII/FPI, Indian Mutual Funds, Indian Financial Institutions, Corporate Bodies, Non-resident Indians and other shareholders.

Awards and Accolades

Awards received: Awards and recognitions received by the bank for various achievements
Financial Results Performance: Details of the bank's financial performance throughout the period being reviewed in the presentation.

Asset quality categories of Advances

Standard Advances, Sub Standard Advances, Doubtful Advances, Loss Advances: Breakdown of the loans based on their quality and potential risks.
Special Mention Accounts (SMA) 0, 1, 2: Categorization of Special Mention Accounts providing information about the outstanding amounts and percentage of these advances.

Asset Quality | Movement of Gross NPAs

Opening Balance: Beginning level of Non Performing Assets.
Additions during the period: New or increased NPAs during the period
Upgradations during the period: NPAs that are upgraded to better performing categories.
Write off (including TWO): NPAs that were written off or settled.
Compromise/Settlements: Agreements reached with borrowers to settle their outstanding debts.
Recoveries: Money collected by the bank from previous NPAs.
Gross NPA: Combining non-performing advances and other losses.
Less Provisioning: Accounting for the loan loss reserves.
Net NPA: Determining the total amount of loans not expected to be repaid.

Sector-Wise Credit Deployment and NPA

Distribution of credit across different industry segments
Sectoral exposure: Details on how much credit is extended to different sectors, along with the associated risks.
NPA levels segmented by sector: Identifying particular sectors with a higher risk of default.

Gross Advances Mix

Composition across main sectors: Breakdowns of the bank's lending activity (e.g., Personal Finance, Trade & Services, Manufacturing, etc.)
Percentage distribution of Advances by sector: Percentage of advances are detailed across sectors.

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Description

Test your knowledge about investor presentations and their important components. This quiz covers disclaimers, forward-looking statements, and risks associated with bank operations. Explore what differentiates these statements and understand their implications on actual results.