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The Jammu & Kashmir Bank Ltd Stock Analysis

Small Cap
Evaluated by 2088 users | BSE: 532209 | NSE: J&KBANK |
Bank - Private

The Jammu & Kashmir Bank Ltd. was incorporated in 1938, and is listed on the NSE and the BSE. It functions as a universal bank in the Union Territories of Jammu & Kashmir and Ladakh and as a specialised bank in the rest of the country. It is...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
The Jammu & Kashmir Bank Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Net Interest Income (Rs. Cr.)1,5441,8382,3162,6842,6512,7102,5122,8713,3843,707
Y-o-Y Gr. Rt.33-19.1%26%15.9%-1.3%2.2%-7.3%14.3%17.9%9.5%
Total Income4,0785,1706,6217,1577,6557,3487,1797,1178,4888,992
Y-o-Y Gr. Rt.-26.8%28.1%8.1%7%-4%-2.3%-0.9%19.3%5.9%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
12.6916.5721.762.4410.498.58-31.313.648.35-15.97
Y-o-Y Gr. Rt.-30.6%31.3%-88.8%329.9%-18.2%-464.9%NA129.4%-291.3%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
71.7684.43100.3511.81126.04132.5196.7199.51108.1175.65
Y-o-Y Gr. Rt.-17.7%18.9%-88.2%967.2%5.1%-27%2.9%8.6%-30%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1 : Not Good
Net Profit/Total Funds (%)1.321.451.61.570.660.53-2.010.240.49-1.08
To view Net NPA to Net Advances (%) Colour Rating Guide click here
Net NPA to Net Advances (%): Colour Rating Guide
  • < 0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1: Not Good
Net NPA to Net Advances (%)0.20.150.140.222.774.315.064.94.893.48
To view Capital Adequacy Ratio Colour Rating Guide click here
Capital Adequacy Ratio: Colour Rating Guide
  • > 12% : Very Good
  • 9%-12% : Somewhat Good
  • <9%: Not Good
Capital Adequacy Ratio - - - - - - - - - 0%
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
The Jammu & Kashmir Bank Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Interest Income10.2%6.9%13.9%9.5%
Total Income9.2%3.3%7.8%5.9%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
-202.6%-208.8%NA-291.3%
Book Value per Share
0.6%-9.7%-7.9%-30%
Share Price -14.3% -20.7% -27.1% 40.4%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Interest Earned / Total Income91.0693.5492.6994.5592.2493.1493.1393.0490.4393.93
Margins
To view Margins Colour Rating Guide click here
Margins: Colour Rating Guide
  • >2.75 : Very Good
  • 1.75-2.75 : Somewhat Good
  • <1.75 : Not Good
NIM (%)3.123.113.293.53.733.673.283.423.553.81
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15% : Very Good
  • 12%-15% : Somewhat Good
  • <12% : Not Good
Return on Equity (%)18.9621.2223.5622.348.66.64-28.473.838.04-19.96
Liquidity Ratio
To view Liquidity Ratio Colour Rating Guide click here
Liquidity Ratio: Colour Rating Guide
  • >35 : Very Good
  • 25-35 : Somewhat Good
  • <25 : Not Good
CASA (%) 40.4840.7139.2339.0641.7944.1351.750.8950.753.66
Entity Percentage Holding
Promoters 68.18%
Institutions 3.78%
Non-Institutions 28.04%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of The Jammu & Kashmir Bank Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that The Jammu & Kashmir Bank Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of The Jammu & Kashmir Bank Ltd's performance infers:

The Jammu & Kashmir Bank Ltd earnings have declined by -208.8%, whereas share price has depreciated -20.7% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of The Jammu & Kashmir Bank Ltd share prices over the last 10 years. Here is what we found out:

The Jammu & Kashmir Bank Ltd share price has depreciated -12% annually over the past ten years.

The Jammu & Kashmir Bank Ltd. was incorporated in 1938, and is listed on the NSE and the BSE. It functions as a universal bank in the Union Territories of Jammu & Kashmir and Ladakh and as a specialised bank in the rest of the country. It is also designated as RBI’s agent for banking business, and carries out the banking business of the Union Territories of Jammu & Kashmir and Ladakh, besides collecting central taxes for CBDT.

The Jammu & Kashmir Bank Ltd. was incorporated in 1938, and is listed on the NSE and the BSE. It functions as a universal bank in the Union Territories of Jammu & Kashmir and Ladakh and as a specialised bank in the rest of the country. It is also designated as RBI’s agent for banking business, and carries out the banking business of the Union Territories of Jammu & Kashmir and Ladakh, besides collecting central taxes for CBDT. J&K Bank follows a two-legged business model whereby it seeks to increase lending in its home territory which results in higher margins despite modest volumes, and at the same time, seeks to capture niche lending opportunities on a pan-India basis to build volumes and improve margins. J&K Bank operates on the principle of 'socially empowering banking' and seeks to deliver innovative financial solutions for household, small and medium enterprises.

Business of the Bank

The Jammu & Kashmir Bank is engaged in banking Business. The Bank provides banking services, including CD's, educational loans, housing loans and car loans. The Bank also provides insurance services through a joint venture with MetLife India Insurance Company.

Products and Services of the bank

  • Personal Banking- Under this, it offers various products and services such saving accounts, loans, deposits, ATM facility, RTGS/NEFT facility, internet banking, demat services, etc.
  • NRI Banking- Besides various personal banking products, it also offers remittance services, consultancy services to its NRI Clients.
  • Priority and SME- It also caters to the priority and SME segments and offers various kinds of products to meet their various business requirements.

Milestones & Achievements

  • 2010: JK Bank inaugurates 144th ATM at ZainakoteJ&K Bank launches Operation Clean Up'JK Bank launches An Poshe Tele Yeli Wan Poshe Over 100 LPG connections distributed at Chandanwari, UriJK Bank ATM network reaches to 292J&K Bank inaugurates Khidmat centre at Barmeen, Udhampur.
  • 2011: J&K Bank inaugurates ATM in CTM premises KathuaJ&K Bank opens branch in Ashmuji KulgamJ&K Bank inaugurates new B/U premises at Lakhanpur, GhagwalJ&K Bank inaugurates RSETI at Poonch.
  • 2012: J&K Bank opens ATM in DPL Budgam: Donates projector, laptop to SKIMS.
  • 2013: J&K Bank bags two HR awardsJ&K Bank gets Best Bank Award.
  • 2017: JK Bank hires Delloitte as their overhaul Consultants.
  • 2019: The bank won the CSO100 Award for the year 2019 at a ceremony held in Pune, Maharashtra for adopting new ways of thinking to secure business assets with sophisticated tools and improved defenses.
  • 2020: Jammu & Kashmir Bank has received approval to raise capital upto Rs 1000 crore by way of Non-Convertible, Redeemable, Unsecured, Basel III Compliant, Tier 2 bonds in the nature of debentures (debentures) on a private placement basis
  • 2021: Jammu and Kashmir (J&K) Bank has received in-principle approval from board to transfer 8.23 per cent stake of J&K Government to Union Territory (UT) of Ladakh.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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