J&K bank Jul-24

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Questions and Answers

What is the forecasted growth estimate for the J&K economy in FY 2025?

5.0%

6.2%

8.1%

7.5% (correct)

What percentage of the UT budget is earmarked for capital expenditure?

45%

40%

31% (correct)

25%

Which measure is NOT mentioned as part of the economic strategies for the UT?

Increasing agricultural production

Improving education systems (correct)

Enhancing logistics

Incentivizing land utilization

What controls is the Regulator planning to implement on personal loans?

Higher risk-weights Signup and view all the answers

What is the fiscal deficit of the UT forecasted to be within?

3% Signup and view all the answers

What additional funding has the union government provided to the UT?

17 thousand Crore Signup and view all the answers

What is the expected per capita income trend for UT households?

Improving steadily Signup and view all the answers

What has been implemented to enhance customer convenience in banking?

Efficient IT-enabled digital systems Signup and view all the answers

What is the primary reason for the de-growth in deposits as of March 2024?

Economic activity holding back due to elections Signup and view all the answers

What has been the year-on-year growth of loans during the corresponding period?

13% Signup and view all the answers

As of June 2024, what is the GNPA of the bank?

3.91% Signup and view all the answers

How has the loan book composition been divided between JKL and the rest of India?

70:30 Signup and view all the answers

What has been the trend in the bank's CASA ratio as compared to other banks?

Maintained close to 50% Signup and view all the answers

What was the recovery amount during the quarter?

Rs. 300 crore Signup and view all the answers

What percent of Provision Coverage is maintained by the bank?

91.57% Signup and view all the answers

What is the status of the collection efficiency in standard restructured accounts?

Almost 100% Signup and view all the answers

What type of document is being referenced in the communication?

Conference Call Presentation Signup and view all the answers

What information is provided regarding the audio recording of the conference call?

It can be accessed through a specific bank webpage. Signup and view all the answers

Which regulatory guidelines were mentioned in the communication?

SEBI (Listing Obligations and Disclosure Requirements) Signup and view all the answers

Who delivered the opening remarks during the conference call?

The Managing Director & CEO Signup and view all the answers

On what date was the conference call held?

July 27, 2024 Signup and view all the answers

What is the CIN associated with Jammu and Kashmir Bank Limited?

L65110JK1938SGC000048 Signup and view all the answers

Which two locations are mentioned as addresses for stock exchanges?

Mumbai and Bandra Signup and view all the answers

What is the primary purpose of the communication outlined in the document?

To inform about a conference call for financial results Signup and view all the answers

What is the estimated ageing provision requirement for NPAs during the remaining 3 quarters of FY 2025?

Rs. 145 Crore Signup and view all the answers

What is the recorded annualized Return on Equity (RoE)?

14.82% Signup and view all the answers

Which factor contributed to the moderation of the cost of deposits?

Decreased interest rates Signup and view all the answers

What was the percentage increase in PAT for the quarter?

27% Signup and view all the answers

What was the Non-Interest Income (NII) increase mentioned for the quarter?

7% Signup and view all the answers

What is the recorded Capital Adequacy Ratio (CRAR)?

15.07% Signup and view all the answers

What is the primary reason for the expected improvement in other income over the quarters?

Increased TWO recovery Signup and view all the answers

What is the recorded Yield on Advances for the quarter?

9.50% Signup and view all the answers

What is the focus of the Investor Brief for June 2024?

Earnings Call introduction Signup and view all the answers

Who is the Chief Risk Officer mentioned in the June 2024 earnings call?

Mr.Altaf Kira Signup and view all the answers

What positive indicator is mentioned regarding India's economy in the earnings call?

Strengthening of agriculture and rural spending Signup and view all the answers

Which macro-economic factor is highlighted as gathering momentum globally?

Global trade in goods and services Signup and view all the answers

Which document is referenced by RBI in the context of the economic trends?

Bulletin Signup and view all the answers

What is expected to moderate according to the earnings call?

Interest rates Signup and view all the answers

What is emphasized as a positive sign for the economic year for India?

Favorable monsoon Signup and view all the answers

Which of the following roles does Mr.Ashutosh Sarin hold?

Corporate Credit Head Signup and view all the answers

What has been resolved regarding the pension reimbursements from the JK UT Government?

All outstanding dues have been reimbursed this month. Signup and view all the answers

What is the expected credit growth for FY 2024-25?

15% Signup and view all the answers

Which of the following is NOT part of the guidance for FY 2025?

NIM ~ 4.00% to 4.10% Signup and view all the answers

What is the main focus of the Bank's ongoing transformation journey?

Providing a more digitally future-ready banking experience. Signup and view all the answers

What is the expected Return on Assets (RoA) for FY 2024-25?

~ 1.25% to 1.30% Signup and view all the answers

What has been established to support the Bank's transformation?

Central processing units for liabilities and assets. Signup and view all the answers

Which of the following metrics is targeted to be approximately 50%?

CASA Signup and view all the answers

What is the expected Gross Non-Performing Asset (GNPA) percentage for FY 2024-25?

~ 3.50% Signup and view all the answers

Study Notes

Earnings Call Summary

Date: July 27, 2024
Purpose: Presentation and audio recording of conference call regarding financial results for the June 30, 2024 quarter.
Access Information: Audio recording available at [link removed for confidentiality]. Opening remarks from MD & CEO at [link removed for confidentiality].
SEBI Compliance: Conferences comply with SEBI regulations (30 and 46).
Financial Year: FY 2025
Economic Outlook: Global economy showing signs of strengthening, despite geopolitical concerns. Improvement in agricultural and rural spending boosting Indian economy. Growth dynamics, CAPEX focus, and favorable monsoon point to a good economic year.

Investor Brief

Economic Trends: Macroeconomic and banking trends highlighted, noting moderate interest rate pressures. Current positive banking indicators include best-ever asset quality, high earnings, and efficient digital systems, impacting cost-to-serve and customer convenience.
Regulatory Changes: RBI is bringing more stringent controls and metrics, including increasing risk weights on unsecured personal loans and NBFC exposure. They are also focused on liquidity matters.
UT Budget: J&K budget emphasizes capital expenditure (31%) and projecting 7.5% growth for FY25, staying within stated FRBM limits.
J&K Tourism: Significant tourist influx exceeding 1 crore mark during the first six months of the fiscal year.

Financial Performance Highlights - Q1 FY25

Income Statement: Interest income up 13%, operating profit increased by 13%, and profit after tax increased by 27%.
Deposits: While deposit growth was below expectation in Q1 due to the political elections, there was good traction during the current quarter.
Loans: Loan growth showed healthy progress, exceeding expectations in Jammu & Kashmir with 15.5% growth, and 18.1% growth in housing loans, while overall loan growth was 13%.
Capital Adequacy: Capital Adequacy Ratio (CAR) at 15.07% and CET1 ratio at 11.76% despite some factors impacting the overall profitability.
Credit Cost: The credit cost for the first quarter (Q1) is negative.
Provision Requirements: Provisions and contingent provisions are strong.
Early Warning System: Improvements to the credit surveillance system resulted in an all-time low of 0.73% (annualized) slippages for the quarter.

Pension Reimbursements

Outstanding Payments: Delays resolving outstanding pension reimbursements due to non-implementation of MoU between JK UT Government and the Bank regarding seeking RBI reimbursement. This issue is now resolved with the full reimbursement of all dues.
Future Payment Process: Processes are now in place to avoid delays in future reimbursements with the Bank directly seeking reimbursements from RBI.

Other Key Items

IT & BPR: The bank continues its IT and Business Process Re-engineering. Total automation of customer journeys achieved for personal loans.
Conferences Summary: Team is available for any further questions.

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Description

Test your knowledge about the economic forecast and banking strategies in Jammu and Kashmir for FY 2025. This quiz covers various topics including budget allocations, fiscal trends, and banking measures. Challenge yourself to see how well you understand the current economic climate of the Union Territory.