Shares of Jammu & Kashmir Bank are down nearly 7% at Rs 69.80, off the day's low of Rs 67.70. The bank's Chairman & CEO Parvez Ahmed has stated that the bank is looking to deep clean its balance sheet, aiming to take its provision coverage ratio to about 90% over the next six quarters. The provision coverage ratio of the bank now stands at 50%.
The stock had touched a low of Rs 56.45 on 3 June 2016, falling consistently from a 52-week high of Rs 92.25 it had touched in mid October 2015.
The bank posted a net profit of Rs 22.88 crore for the quarter ended June 30, 2016 as compared to Rs 158.76 crore in the quarter ended June 30, 2015. The bank's total income dropped to Rs 1789.05 crore in the first quarter of 2017, compared to Rs 1888.35 crore in the corresponding quarter in 2015-16. The bank had reported a loss of Rs 56.02 crore in the last quarter of the previous fiscal.
The bank had made provisions for bad loans of Rs 313.70 crore in the first quarter, up from Rs 212.87 crore in the year ago quarter. The bank's gross NPAs rose to 9.31% of gross advances as on June 2016, up sharply compared to 6.63% a year ago. Net NPAs stood at 6.19% as on 30 June 2016, compared to 2.95% a year ago.