Our overall business has grown by about 18%: Mushtaq Ahmad, Jammu & Kashmir Bank

In an interview with ET Now, Mushtaq Ahmad, Chairman & Chief Executive, Jammu & Kashmir Bank, discusses the second quarter results of the bank. Excerpts:
ET Now: How has the quarter been? I did see that your margins in this quarter have been stable compared to the last quarter. How has been the NIM’s performance for you?

Mushtaq Ahmad: Our net profit has gone up from last year's 382 crore to 516 crore this year, a jump of 35%. As far as net interest margins are concerned, we are now at 3.90% and we have improved our net interest margin as compared to last quarter. We do hope that by the close of the year, it should be around 4% and as far as our provision coverage ratio is concerned, last year as on September, we were maintaining a PCR of 92% which has improved to 93.30%. Our operating profit has increased by 33.17% from last year’s 629 crore to 838 crore this year. CD ratio of the bank has also improved. Last year we were at 59% and this year, for the half year we are at 62%. This overall business has grown by about 18%, but advances have done better at around 22% whereas the deposits increased by 16%. Return on equity has also jumped from 21% to 24%.

ET Now: What about asset quality? Do you see it improving over the next few quarters and NPAs coming down, also provisioning?

Mushtaq Ahmad: Last year our gross NPAs were at 542 crore and these have marginally increased by 10 crore, but percentage wise, it has come down from 1.89% to 1.60%. We have stated that we will try to maintain PCR of over 90%.

ET Now: Can you spell out for me what your net interest margins have been in this quarter and whether you would maintain this in the quarters ahead?

Mushtaq Ahmad: Net interest margin has remained at 3.94% this quarter whereas in the June quarter it was 3.84%. I am hopeful that we will be in a position to sustain and maintain it at around 4%.