Total income fell to Rs 2,194.47 crore in July-September from Rs 2,262.94 crore in the same quarter of 2019-20, J&K Bank said in a regulatory filing.
Asset quality improved as gross non-performing assets (NPAs) fell to 8.87 per cent of the gross advances at the end of September 2020 from 10.64 per cent at the end of September 2019.
In absolute terms, gross NPAs stood at Rs 6,317.09 crore as against Rs 7,473.29 crore a year ago.
Similarly, net NPAs declined to 3.03 per cent (Rs 2,023.32 crore) from 4.48 per cent (Rs 2,942.04 crore) a year ago.
On a consolidated basis, the bank posted a net profit of Rs 44.39 crore during the quarter under review. It had reported a net loss of Rs 918 crore in the year-ago quarter and a net profit of Rs 7.30 crore in the preceding quarter ended June of this fiscal.
Total consolidated income fell to Rs 2,197.24 crore during the quarter from Rs 2,263.66 crore in the year-ago period.
The consolidated financial statement include results from JKB Financial Services (subsidiary) and J&K Grameen Bank (associate).
However, it does not include the financial statement of Jammu & Kashmir Asset Reconstruction Ltd in which the bank has a subscribed capital of Rs 98 lakh and the Government of J&K of Rs 1.02 crore, the bank said.
"The promoters i.e. J&K government and J&K Bank are yet to release their respective shares towards the subscribed share capital of the company. In the meantime, the promoters have decided to wind up the company and in turn the bank has approached the Registrar of Companies," the lender said.
J&K Bank said it restructured 28 accounts for an amount of Rs 35.74 crore as of September 2020 under the "relief for MSME borrowers exempted or registered under the Goods and Services Tax".
For select borrower accounts covered under the provisions of Insolvency and Bankruptcy Code (IBC), against a total outstanding of Rs 3,932.23 crore, the bank had made provision of Rs 3,666.06 crore, it added.
With regard to moratorium provisions between March-August due to the pandemic, the lender said it made provision of Rs 295 crore at the end of September 2020.
On the accounts not declared NPA, the lender said it made provision of Rs 89.07 crore.
"As per the Government of India scheme, the difference between compound interest and simple interest to eligible borrowers from March 1, 2020 to August 8, 2020 amounting to Rs 21.53 crore has been credited to their respective account by November 5, 2020," J&K Bank said.
Besides, the lender said that in as many as three accounts, involving amounts of Rs 368.71 crore, the resolution period has been extended for the half-year ended September 2020.
The bank's board of directors at its meeting appointed Mohmad Ishaq Wani as an additional director on the board of the bank with effect from November 6, 2020.
Shares of J&K Bank on Friday closed 0.35 per cent higher at Rs 14.32 apiece on the BSE.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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