Srinagar, Sep 6:(KNS) The share price of J&K Bank gained by more than 107 per cent in one year; becomes the top-performing bank in the past one year. SBI along with J&K Bank is the only other bank that has more than doubled in the past one year.
Dalal-Street Investment Journal – a financial magazine - reported this in its online edition on 5th September, 2021.
According to the journal, assessed on the basis of one-year returns on stocks J&K Bank has topped the list with 107.93 % as one-year returns, out of the country’s 18 banks, followed by SBI with 102.39% and Indian Bank with 94.27%.
Pertinently, exhibiting sharp turnaround in its fortunes, J&K Bank under the CMD R K Chhibber has been performing exceptionally well during the last 5 quarters despite the advent of Covid19 pandemic leaving no society immune to its unprecedented economic disruptions.
Commenting upon the news report, an economic analyst enumerated some of the possible factors as reasons for bank’s improving fortunes saying, “To my understanding, with Bank’s net NPA less than 3%, Provision Coverage Ratio (PCR) of 82%, increased transparency in the recruitment process coupled with cost cutting are the factors that have definitely renewed the organisational momentum.”
“Moreover, the Bank’s performance during the Government’s ‘Back to Village’ program has also been outstanding wherein thousands of young entrepreneurs were financed by the bank, out of which around 35% were women. This has enhanced the bank’s image among the young and vibrant youth of the UT. Also the agreed-upon capital infusion of Rs 500 Cr from the J&K UT Government will likely push the fortunes of the bank further up in future”, he said.
“As per the news report, J&K Bank has literally led the pack this time. In one of the most visible acknowledgments of bank’s improving financial performance, the markets have responded positively that too in a sustained manner. The share price even zoomed past Rs 40 when the bank announced its annual financial results (2020-21) in June. Since then, it has by and large maintained its trend upwards”, commented another market observer, adding, that the timely issue of JK Bank’s Employees Stock Purchase Scheme -2021 on 27th of August, which according to the Bank has already over-subscribed, may boost the stakeholders’ confidence further to reflect positively upon the Bank’s stock price and going forward, it surely is a stock to be watched.(KNS)