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COVER-STORY

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COVER-STORY

Srinagar, November 12-18, 2012

Srinagar, November 12-18, 2012

of India. The award was given to the bank after KPMG conducted a robust and rigorous scoring process for all the Banks and Financial Institutions. KPMG is one of the leading professional services firms in the world in addition to being one of the esteemed members of the Big-4 auditors, along with PwC, Deloitte, and Ernst & Young. KPMG ranked the Banks and Financial Institutions on the basis of criteria’s like growth, profitability, capital ratios and even softer qualities like investor relations / customer care. In the next stage the Banks and Financial Institutions short-listed by KPMG were examined by the jury who after a marathon debate decided the winner for each category. Given the rigorous selection process, the eminent jury and the caliber of winners, the awards have become a benchmark for excellence in the field of banking and finance in the country. PROFILE Mushtaq Ahmad, Chairman & Chief Executive Officer (CEO) of J & K Bank Ltd. has remained associated with the Bank for the last 40 years. During his banking career he has held important and strategic positions in the Bank as part of its Corporate Management / Leadership Team. He has in-depth knowledge and practical experience in the fields of Credit Management, Corporate and Retail Banking, Treasury & Investment Management, International Banking, Liability & Risk Management and HR Management. Based on his specialized knowledge and practical experience in different fields of contemporary banking, Mushtaq Ahmad was appointed as Chairman and CEO of the Bank on 5th October 2010. Since Mushtaq Ahmad took

J&K Bank follows a circumspect approach in expanding quality credit assets in line with our policy on Credit Risk Management. Coupled with the close monitoring and efficient management of the loan book this has arrested the slippages to an incredibly low level. The result is a quality loan book with a 1.6 per cent GNPA and a 0.14 per cent NNPA.

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fter winning prestigious Financial Express Best Bank Award last year in September, for scaling up its business and strengthening the balance for the year ended March 2011, the Jammu &Kashmir Bank’s continued focus on all areas of banking during the past two years has again won the bank some prestigious national awards which includes two latest awards - “The Sunday Standard FINWIZ-2012 Best Bankers’ Awards” and CNBC TV18 India Best Bank award 2012. The Bank was awarded ‘Best Banker in Financial Inclusion and Customer Friendliness’ and declared runner up for ‘Best Banker in Priority Sector Growth and Agricultural Credit’. The Sunday Standard, which is a part of the Chennai-based ‘The New Indian Express Group’, had engaged Indicus Analytics, India’s premier economic research agency, to conduct a stringent survey and find out India’s best bankers. Notably, the CEOs of all 78 Scheduled Commercial Banks operating in India were considered for the rating. The survey has rated Chairman and CEO Mushtaq Ahmad as top ranked CEO for being ‘accomplished in all aspects of banking’. The survey has highlighted his skillful leadership qualities by mentioning the bank’s all round and consistent growth in its operations under his dynamic leadership. Since his taking over, the bank’s business turnover has increased by over Rs.24000 crore, going from Rs.62,000 crore in September 2010 to Rs.86,424 crore in March 2012. The bank posted an all time high profit of Rs.803 crore for the financial year ended March 31, 2012. Prestigious CNBC TV18 India Best Bank award 2012 was awarded to the Bank by a panel of distinguished jurors comprising of Mr. Jagdish Capoor, former Deputy Governor Reserve Bank of India, former Chairman of HDFC Bank and former Chairman of BSE, Mr. A. K. Purwar, Chairman of India Venture Advisors Pvt. Ltd & former Chairman of State Bank of India, Mr. H. N. Sinor, CEO, Association of Mutual Funds of India, former CEO, Indian Banks Association and former Managing Director of ICICI and Mr. M. V. Nair, former Chairman, Union Bank

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over as Chairman and CEO, the Bank has witnessed all round and consistent growth in its operational spheres. During this period the Bank’s Business Turnover increased by over Rs. 24000 Crores from Rs. 62000 Crore in September 2010 to Rs. 86424 Crore in March 2012. The Bank posted an all time high profit of Rs. 803.25 Crore for the FY ended 31stMarch 2012. During FY 201112, 55 new branches were added which increased the branch network to 603 at the end of March, 2012. The Bank plans to open about 100 new branches during the current fiscal. Mushtaq Ahmad has set an ambitious target for garnering Business Turnover of Rs. 100,000 Crore and Net Profit of Rs. 1000 Crore by March, 2013. The achievement of this milestone is planned to coincide with

the Bank’s Platinum Jubilee celebrations in 2013. The Kashmir Scenario interviewed Mushtaq Ahmad on various operational matters of the bank. The excerpts of the interview are:

Q: Can you to give us a brief account of the Bank’s growth story at the outset?

A: Over the decades, J&K Bank has evolved from a small banking company to a sound and robust institution. Our uninterrupted growth story and ever-improving balance sheet has been acknowledged for long by the banking analysts and financial experts. Besides, our contribution to the state economy is self-evident. Over the past four quarters that saw most of the banks operating in India struggling to maintain their growth trajectory, J&K bank stands out. Our consistent performance speaks for itself. All the key parameters that determine a banking company’s soundness have improved considerably over the years reflecting the Bank’s comprehensive growth and better positioning.

Q: Please take us through the recently announced Q2 results?

A: For the second quarter (Q2), the bank registered a net profit of Rs 269.53 Cr as against Rs 199.65 Cr recorded for the corresponding quarter of last financial year, thus, registering an increase of 35 % during the period. The business of the Bank reached Rs 89,198 Cr witnessing an increase of 17.89% from Rs 75,660 Cr recorded during the corresponding period last FY. The interest income has grown by 34.60 % to Rs 2976.75 Cr. The operating profit has gone up by 33.17% from Rs 629.15 Cr to Rs 837.85 Cr. The NPA Coverage Ratio increased to 93.30% from 92% recorded during the corresponding period last FY. The Bank’s Earnings per Share have considerably increased by 35% reaching 212.72 from 157.57.

Q: With such a strong performance in Q2, should we expect similar growth trajectory for the coming quarters? Continued on P 11


The Kashmir Scenario