J & J Bank Q1 drops 58% to Rs 130 crore on higher provisions

   

     State-controlled lender Jammu and Kashmir Bank's net profit slipped 57.8 percent to Rs 130 crore in June quarter on huge provisions and lower net interest income but aided by other income. Profit in same quarter last year was Rs 307.9 crore.
     Net interest income, the difference between interest earned and interest expendedm declined 2.6 percent to Rs 637.7 crore in the quarter ended June 2014 from Rs 655 crore in corresponding quarter of last fiscal while other income shot up 42 percent year-on-year to Rs 130.99 crore during the quarter.
     Provisions jumped 4 times sequentially and nearly 7 time on yearly basis to Rs 246.8 crore in the quarter gone by with provision coverage ratio at 55.08 percent as on June 2014 (declined from 90 percent in Q4FY14).
     The stock was trade today at Rs 1498.40 down by -79.80 points from its previous closing of Rs 1578.20 on the BSE.