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The Jammu & Kashmir Bank Ltd. Stock Analysis

Small Cap
Evaluated by 2057 users | BSE: 532209 | NSE: J&KBANK |
Bank - Private
Jammu and Kashmir (J&K) Bank, incorporated on October 1,1938, was the first bank in the country to emerge as a state-owned bank. On July 4, 1939 the bank commenced its business.Later, in 1971 the bank received the status of a scheduled bank. The government of Jammu & Kashmir owns a 53%...

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 -12.4% -23.6% -33% -28.5%
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 7.17%
Non-Institutions 24.65%
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 -23.6% 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 -11.9% annually over the past ten years.

Jammu and Kashmir (J&K) Bank, incorporated on October 1,1938, was the first bank in the country to emerge as a state-owned bank. On July 4, 1939 the bank commenced its business.

Later, in 1971 the bank received the status of a scheduled bank. The government of Jammu & Kashmir owns a 53% stake in the bank. The bank is listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)

Presently, the bank has a pan-India presence through its network of 556 branches, out of

Jammu and Kashmir (J&K) Bank, incorporated on October 1,1938, was the first bank in the country to emerge as a state-owned bank. On July 4, 1939 the bank commenced its business.

Later, in 1971 the bank received the status of a scheduled bank. The government of Jammu & Kashmir owns a 53% stake in the bank. The bank is listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)

Presently, the bank has a pan-India presence through its network of 556 branches, out of which 344 branches are located in semi-urban and rural areas. It also includes extension counters and service branches. The bank has a network 212 ATMs which is largest ATM network in J&K.

It is only bank in private sector that has been designated as agent of RBI for banking.

J&K Bank acts as a sole banker and lender to government of Jammu & Kashmir. It handles all salaries of state government officials. The bank also carries out banking business of the central government.

Jammu & Kashmir Bank's Certificate of Deposit Programme has received 'P1+' rating from Credit Rating Information Services of India (CRISIL), reflecting the highest degree of safety for timely payment of principal and interest.

The bank also acts as a corporate agent of MetLife India Insurance Company. J&K Bank has entered into an alliance with Bajaj Allianz to distribute the latter's non-life products. The bank has entered into an arrangement with AMCs such as UTI, Kotak and Reliance Mutual Fund to distribute their current schemes and NFOs (New fund offer).

Products and Services

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 Zainakote
J&K Bank launches Operation Clean Up'
JK Bank launches An Poshe Tele Yeli Wan Poshe Over 100 LPG connections distributed at Chandanwari, Uri
JK Bank ATM network reaches to 292
J&K Bank inaugurates Khidmat centre at Barmeen, Udhampur

2011

J&K Bank inaugurates ATM in CTM premises Kathua
J&K Bank opens branch in Ashmuji Kulgam
J&K Bank inaugurates new B/U premises at Lakhanpur, Ghagwal
J&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 awards
J&K Bank gets Best Bank Award

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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