j&k bank ltd

Date - 25th Sep 2013Date - 25th Sep 2013Date - 25 Sep 2013

Jammu & Kashmir Bank LtdJammu & Kashmir Bank LtdJammu & Kashmir Bank LtdJammu & Kashmir Bank LtdJammu & Kashmir Bank LtdCMP - INR 1101.00 TP - INR 1453.00 Risk CMP - INR 1101.00 TP - INR 1453.00 Risk CMP - INR 1101.00 TP - INR 1453.00 Risk

TH - 12 to 15 Months Up Side - 32.12 % Return TH - 12 to 15 Months Up Side - 32.12 % Return

We initiate coverage on Jammu & Kashmir Bank Ltd. (J&K Bank)We initiate coverage on Jammu & Kashmir Bank Ltd. (J&K Bank)We initiate coverage on Jammu & Kashmir Bank Ltd. (J&K Bank)

price target of Rs 1453 (1.22x FY14 P/BV) over a periodprice target of Rs 1453 (1.22x FY14 P/BV) over a periodprice target of Rs 1453 (1.22x FY14 P/BV) over a period

representing a potential upside of 32.12%. At CMP of Rs 1101representing a potential upside of 32.12%. At CMP of Rs 1101representing a potential upside of 32.12%. At CMP of Rs 1101

at 0.9x and 0.8x its P/BV for FY14E & FY15E, respectively. J&Kat 0.9x and 0.8x its P/BV for FY14E & FY15E, respectively. J&K

focusing on the high margin loan book in the J&K state,focusing on the high margin loan book in the J&K state,focusing on the high margin loan book in the J&K state,

horticultural lending, high operating efficiency and improvinghorticultural lending, high operating efficiency and improvinghorticultural lending, high operating efficiency and improving

should lead to an impressive growth in top and bottom lineshould lead to an impressive growth in top and bottom lineshould lead to an impressive growth in top and bottom line

of 23% and 20%, respectively over the period of FY13Aof 23% and 20%, respectively over the period of FY13Aof 23% and 20%, respectively over the period of FY13A

constant dividend paying history of past several years and bestconstant dividend paying history of past several years and bestconstant dividend paying history of past several years and best

return ratios, we rate this stock as an potential investment opportunityreturn ratios, we rate this stock as an potential investment opportunityreturn ratios, we rate this stock as an potential investment opportunity

Investment rational�Investment rational�Investment rational

Healthy performance to continueHealthy performance to continueHealthy performance to continue

Loan book and deposits grew at moderate pace over last fiveLoan book and deposits grew at moderate pace over last fiveLoan book and deposits grew at moderate pace over last five

deposits grew at a CAGR of 17% and 18% respectively, over thedeposits grew at a CAGR of 17% and 18% respectively, over thedeposits grew at a CAGR of 17% and 18% respectively, over the

FY13A) however, we expected loan book and deposits will to grewFY13A) however, we expected loan book and deposits will to grewFY13A) however, we expected loan book and deposits will to grew

and 16% respectively, over the period of FY13A to FY16and 16% respectively, over the period of FY13A to FY16and 16% respectively, over the period of FY13A to FY16

commercial and tourism activity along with focus on infrastructurecommercial and tourism activity along with focus on infrastructurecommercial and tourism activity along with focus on infrastructure

central government , we are looking much potential growth incentral government , we are looking much potential growth in

Strong geographic presence in J&K state create the dominionsStrong geographic presence in J&K state create the dominionsStrong geographic presence in J&K state create the dominions

J&K bank is the only privet sector bank in the state of J&K hasJ&K bank is the only privet sector bank in the state of J&K hasJ&K bank is the only privet sector bank in the state of J&K has

RBI to carry on the general banking business of the central governmentRBI to carry on the general banking business of the central governmentRBI to carry on the general banking business of the central government

the leadership in the state with network of 455 branches whichthe leadership in the state with network of 455 branches whichthe leadership in the state with network of 455 branches which

total branches and 399 ATMs. J&K bank also dominates the regiontotal branches and 399 ATMs. J&K bank also dominates the regiontotal branches and 399 ATMs. J&K bank also dominates the region

share in total advances and 65% market share in total depositsshare in total advances and 65% market share in total depositsshare in total advances and 65% market share in total deposits

Focus towards J&K state will lead to improvement in NIMFocus towards J&K state will lead to improvement in NIM

With strong deposit franchise and focus (increase lending) towardsWith strong deposit franchise and focus (increase lending) towardsWith strong deposit franchise and focus (increase lending) towards

support margins going ahead. Bank earns NIMs of 6.20% withinsupport margins going ahead. Bank earns NIMs of 6.20% withinsupport margins going ahead. Bank earns NIMs of 6.20% within

outside the state. As per our financial model we strongly expectedoutside the state. As per our financial model we strongly expectedoutside the state. As per our financial model we strongly expected

will maintain the NIM in the range of 3.90% to 4.20% for FY14Ewill maintain the NIM in the range of 3.90% to 4.20% for FY14Ewill maintain the NIM in the range of 3.90% to 4.20% for FY14E

Risk - MediumRisk - MediumRisk - Medium

Return - High “> 25%” Return - High “> 25%”

Bank) as a BUY with aBank) as a BUY with aBank) as a BUY with a

of 12 to 15 months Market Dataof 12 to 15 months Market Dataof 12 to 15 months

1101, the stock is trading

Market Data

Sensex / Nifty 20000/58001101, the stock is trading Sensex / Nifty 20000/5800

Equity Shares (Cr) 4.801101, the stock is trading

J&K Bank’s strategy of Equity Shares (Cr) 4.80J&K Bank’s strategy of

state, huge Potential in

Equity Shares (Cr) 4.80

Face Value (INR) 10.00state, huge Potential in

Face Value (INR) 10.00

Avg 12m Vol (‘000) 61.21state, huge Potential in

improving asset qualityAvg 12m Vol (‘000) 61.21

improving asset qualityAvg 12m Vol (‘000) 61.21

52-wk HI/LO (INR) 881 / 1473improving asset quality

line numbers at a CAGR52-wk HI/LO (INR) 881 / 1473

line numbers at a CAGR52-wk HI/LO (INR) 881 / 1473

Free Float (Cr) 2610.00line numbers at a CAGR

A to FY16E. With aFree Float (Cr) 2610.00

O/S shares (Cr) 48.48A to FY16E. With a O/S shares (Cr) 48.48A to FY16E. With a

best in class share holder

O/S shares (Cr) 48.48

Market Cap (Cr) 5220.00best in class share holder Market Cap (Cr) 5220.00best in class share holder

opportunity.opportunity.Y/E Mar (Cr) FY13A FY14E FY15E FY16E

opportunity.Y/E Mar (Cr) FY13A FY14E FY15E FY16EY/E Mar (Cr) FY13A FY14E FY15E FY16E

NII 2316 2803 3343 4011NII 2316 2803 3343 4011

OP 1811 2247 2727 3327OP 1811 2247 2727 3327OP 1811 2247 2727 3327

NP 1055 1253 1515 1846

five years (loan book andNP 1055 1253 1515 1846

EPS (INR) 218 258 312 381five years (loan book and EPS (INR) 218 258 312 381five years (loan book and

the period of FY09A to

EPS (INR) 218 258 312 381

DPS (INR) 50 59 72 88the period of FY09A to DPS (INR) 50 59 72 88

NIM (%) 4% 4% 4% 4%the period of FY09A to

grew at a CAGR of 19%NIM (%) 4% 4% 4% 4%

grew at a CAGR of 19%NIM (%) 4% 4% 4% 4%

Div Yield (%) 0.0% 0.0% 0.0% 0.0%grew at a CAGR of 19%

16E. Due to increasedDiv Yield (%) 0.0% 0.0% 0.0% 0.0%

16E. Due to increasedDiv Yield (%) 0.0% 0.0% 0.0% 0.0%

ROE (%) 21.7% 21.7% 22.0% 22.4%16E. Due to increased

infrastructure spending by theROE (%) 21.7% 21.7% 22.0% 22.4%

ROA (%) 1.5% 1.5% 1.6% 3.6%infrastructure spending by the ROA (%) 1.5% 1.5% 1.6% 3.6%infrastructure spending by the

future for J&K Bank.ROA (%) 1.5% 1.5% 1.6% 3.6%

P/E (X) 5.1 4.3 3.5 2.9future for J&K Bank.

dominions

P/E (X) 5.1 4.3 3.5 2.9

P/BV (X) 1.1 0.9 0.8 0.6dominions P/BV (X) 1.1 0.9 0.8 0.6dominions

has right to act behalf on

P/BV (X) 1.1 0.9 0.8 0.6

has right to act behalf onhas right to act behalf on

government. J&K Bank hasHolding Q1FY14 Q4FY13 Q3FY13 Q2FY13

government. J&K Bank hasHolding Q1FY14 Q4FY13 Q3FY13 Q2FY13

Promoter 53.17% 53.17% 53.17% 53.17%government. J&K Bank has

which comprises 80% ofPromoter 53.17% 53.17% 53.17% 53.17%

which comprises 80% ofPromoter 53.17% 53.17% 53.17% 53.17%

FII 24.75% 24.54% 24.28% 24.76%which comprises 80% of

region with 70% marketFII 24.75% 24.54% 24.28% 24.76%

DII 4.95% 4.91% 4.89% 3.90%region with 70% market DII 4.95% 4.91% 4.89% 3.90%region with 70% market

in the state.DII 4.95% 4.91% 4.89% 3.90%

Non Institutions 17.13% 17.38% 17.66% 18.17%in the state. Non Institutions 17.13% 17.38% 17.66% 18.17%in the state.

towards J&K state would Analyst Detailstowards J&K state would Analyst Detailstowards J&K state would

within the state and 2.50%

Analyst Details

Pushkaraj Jamsandekarwithin the state and 2.50%

Pushkaraj Jamsandekar

Contact - +09869139507within the state and 2.50%

expected that the J&K bankContact - +09869139507

expected that the J&K bankContact - +09869139507

Mail ID - [email protected] that the J&K bank

E.Mail ID - [email protected]

Perception Research & AdvisoryE. Perception Research & AdvisoryE. Perception Research & Advisory

Huge Potential in J&K state for Horticultural LendingHuge Potential in J&K state for Horticultural LendingHuge Potential in J&K state for Horticultural Lending

J&K State produces 77 % of India’s total apple output andJ&K State produces 77 % of India’s total apple output and

dedicated to apple cultivation. Out of a total of more than 283000dedicated to apple cultivation. Out of a total of more than 283000dedicated to apple cultivation. Out of a total of more than 283000

State, Bank’s finance has been extended to about 17300 growersState, Bank’s finance has been extended to about 17300 growersState, Bank’s finance has been extended to about 17300 growers

remaining growers will generate credit of about Rs.7000 Cr moreremaining growers will generate credit of about Rs.7000 Cr moreremaining growers will generate credit of about Rs.7000 Cr more

Apple growers get their financing from traders and are unawareApple growers get their financing from traders and are unawareApple growers get their financing from traders and are unaware

cost works out to 36% to 54%, against the Bank’s interest rangingcost works out to 36% to 54%, against the Bank’s interest rangingcost works out to 36% to 54%, against the Bank’s interest ranging

Current shortfall in Agriculture Sector Lending is Rs. 2335Current shortfall in Agriculture Sector Lending is Rs. 2335Current shortfall in Agriculture Sector Lending is Rs. 2335

incremental Agricultural Advances at Base Rate of 10.25 %incremental Agricultural Advances at Base Rate of 10.25 %

(10.25% –4 %) would generate an incremental revenue of about

incremental Agricultural Advances at Base Rate of 10.25 %

(10.25% –4 %) would generate an incremental revenue of about(10.25% –4 %) would generate an incremental revenue of about

lending Rs. 2335 Cr to agricultural sector.lending Rs. 2335 Cr to agricultural sector.lending Rs. 2335 Cr to agricultural sector.

Massive expansion in networkMassive expansion in networkMassive expansion in network

To improve the geographic presence and to obtain the moreTo improve the geographic presence and to obtain the moreTo improve the geographic presence and to obtain the more

business J&K bank planed massive expansion in their network.business J&K bank planed massive expansion in their network.business J&K bank planed massive expansion in their network.

expansion plan of 300 new branches and almost equivalent ATMsexpansion plan of 300 new branches and almost equivalent ATMsexpansion plan of 300 new branches and almost equivalent ATMs

Cheap Valuation and High Dividend yieldCheap Valuation and High Dividend yieldCheap Valuation and High Dividend yield

At current market price, J&K bank is still available at FY14E PriceAt current market price, J&K bank is still available at FY14E Price

times. The estimated dividend yield for FY14 is 5.4%. High dividendtimes. The estimated dividend yield for FY14 is 5.4%. High dividendtimes. The estimated dividend yield for FY14 is 5.4%. High dividend

cushion. At CMP of Rs 1101, the stock is trading at 4.3x and 3.cushion. At CMP of Rs 1101, the stock is trading at 4.3x and 3.cushion. At CMP of Rs 1101, the stock is trading at 4.3x and 3.

FY15E, respectively.FY15E, respectively.FY15E, respectively.

and controls 49 % of landand controls 49 % of land

283000 apple growers in the283000 apple growers in the283000 apple growers in the

growers so far. Tapping thegrowers so far. Tapping thegrowers so far. Tapping the

more. In J&K state’s 75% ofmore. In J&K state’s 75% ofmore. In J&K state’s 75% of

unaware that its effective interestunaware that its effective interestunaware that its effective interest

ranging from 4% to 11%.ranging from 4% to 11%.ranging from 4% to 11%.

2335 cr. Assuming yield on2335 cr. Assuming yield on2335 cr. Assuming yield on

%, the incremental yield%, the incremental yield

about Rs. 146 Cr per year on

%, the incremental yield

about Rs. 146 Cr per year onabout Rs. 146 Cr per year on

opportunities in bankingopportunities in bankingopportunities in banking

The bank has impressiveThe bank has impressiveThe bank has impressive

ATMs by the end of FY15.ATMs by the end of FY15.ATMs by the end of FY15.

Price to book value of 0.9Price to book value of 0.9

dividend yield gives us a nicedividend yield gives us a nicedividend yield gives us a nice

.5x to its PE for FY14E &.5x to its PE for FY14E &.5x to its PE for FY14E &

�Concerns�Concerns�Concerns

Change in political environmentChange in political environment

Instable geopolitical uncertainty in the J&K State would hamperInstable geopolitical uncertainty in the J&K State would hamperInstable geopolitical uncertainty in the J&K State would hamper

sentiment.sentiment.sentiment.

Rupee depreciationRupee depreciationRupee depreciation

The rupee has depreciated about 25 % this year and touchedThe rupee has depreciated about 25 % this year and touchedThe rupee has depreciated about 25 % this year and touched

lower the rupee value are the major concern for Indian economiclower the rupee value are the major concern for Indian economiclower the rupee value are the major concern for Indian economic

adversely impact on Indian banking sector.adversely impact on Indian banking sector.adversely impact on Indian banking sector.

Higher inflation rateHigher inflation rate

Higher inflation rate is the major concern in India. Bank lending

Higher inflation rate

Higher inflation rate is the major concern in India. Bank lendingHigher inflation rate is the major concern in India. Bank lending

inverse relation, on the past trend it was absolutely clear onesinverse relation, on the past trend it was absolutely clear onesinverse relation, on the past trend it was absolutely clear ones

up it starts pulling down the bank lending rate.up it starts pulling down the bank lending rate.up it starts pulling down the bank lending rate.

Negative investor sentimentNegative investor sentimentNegative investor sentiment

Higher inflation rate, unexpected rupee depreciation, lowerHigher inflation rate, unexpected rupee depreciation, lowerHigher inflation rate, unexpected rupee depreciation, lower

uncertainty in political environment may hamper investor (FII &uncertainty in political environment may hamper investor (FII &uncertainty in political environment may hamper investor (FII &

Low GDP growth or below expectationLow GDP growth or below expectationLow GDP growth or below expectation

For the current fiscal India is targeting for 4 to5 percent GDPFor the current fiscal India is targeting for 4 to5 percent GDP

GDP may negatively impact on Indian banking sector.GDP may negatively impact on Indian banking sector.GDP may negatively impact on Indian banking sector.

hamper the overall businesshamper the overall businesshamper the overall business

touched a record low of 68.80.touched a record low of 68.80.touched a record low of 68.80.

economic growth, which eveneconomic growth, which eveneconomic growth, which even

lending and inflation havelending and inflation havelending and inflation have

ones the inflation rate movesones the inflation rate movesones the inflation rate moves

lower capital expenditure andlower capital expenditure andlower capital expenditure and

& DII) sentiment.& DII) sentiment.& DII) sentiment.

growth. The lowering ingrowth. The lowering in

�Company background�Company background�Company background

The Bank, incorporated in 1938, as a universal bank in JammuThe Bank, incorporated in 1938, as a universal bank in Jammu

specialized bank in the rest of the country. It is also thespecialized bank in the rest of the country. It is also thespecialized bank in the rest of the country. It is also the

designated as RBI’s agent for banking business, and carries outdesignated as RBI’s agent for banking business, and carries outdesignated as RBI’s agent for banking business, and carries out

the Central Government, besides collecting central taxes for CBDTthe Central Government, besides collecting central taxes for CBDTthe Central Government, besides collecting central taxes for CBDT

two-legged business model whereby it seeks to increase lendingtwo-legged business model whereby it seeks to increase lendingtwo-legged business model whereby it seeks to increase lending

results in higher margins despite modest volumes, and at theresults in higher margins despite modest volumes, and at theresults in higher margins despite modest volumes, and at the

capture niche lending opportunities on a pan-India basis to buildcapture niche lending opportunities on a pan-India basis to buildcapture niche lending opportunities on a pan-India basis to build

margins.margins.margins.

�Share holding pattern�Share holding pattern�Share holding pattern

Exhibit 01 : Change in holding by No. of sharesExhibit 01 : Change in holding by No. of sharesExhibit 01 : Change in holding by No. of shares

Y/E March 31 Q1FY13 Q2FY13 Q3FY13 Q4FY13Y/E March 31 Q1FY13 Q2FY13 Q3FY13 Q4FY13

(A) Promoter & Group 53.2% 53.2% 53.2% 53.2%(A) Promoter & Group 53.2% 53.2% 53.2% 53.2%(A) Promoter & Group 53.2% 53.2% 53.2% 53.2%

Chief Secretary, Gov of J & K 50.2% 50.2% 50.2% 50.2%Chief Secretary, Gov of J & K 50.2% 50.2% 50.2% 50.2%

Secretary Fin Dept, Gov, of J & K 3.0% 3.0% 3.0% 3.0%Secretary Fin Dept, Gov, of J & K 3.0% 3.0% 3.0% 3.0%Secretary Fin Dept, Gov, of J & K 3.0% 3.0% 3.0% 3.0%

(B) Public Shareholding 46.8% 46.8% 46.8% 46.8%(B) Public Shareholding 46.8% 46.8% 46.8% 46.8%

(1) Institutions 29.5% 28.7% 29.2% 29.4%(1) Institutions 29.5% 28.7% 29.2% 29.4%(1) Institutions 29.5% 28.7% 29.2% 29.4%

Mutual Funds / UTI 2.5% 3.5% 4.5% 4.4%Mutual Funds / UTI 2.5% 3.5% 4.5% 4.4%

Financial Institutions / Banks 0.0% 0.0% 0.0% 0.0%

Mutual Funds / UTI 2.5% 3.5% 4.5% 4.4%

Financial Institutions / Banks 0.0% 0.0% 0.0% 0.0%Financial Institutions / Banks 0.0% 0.0% 0.0% 0.0%

Insurance Companies 0.4% 0.4% 0.4% 0.4%Insurance Companies 0.4% 0.4% 0.4% 0.4%Insurance Companies 0.4% 0.4% 0.4% 0.4%

Foreign Institutional Investors 26.5% 24.8% 24.3% 24.5%Foreign Institutional Investors 26.5% 24.8% 24.3% 24.5%

(2) Non-Institutions 6.1% 6.1% 5.6% 5.4%(2) Non-Institutions 6.1% 6.1% 5.6% 5.4%(2) Non-Institutions 6.1% 6.1% 5.6% 5.4%

(3) Individuals 10.8% 11.5% 11.2% 11.4%(3) Individuals 10.8% 11.5% 11.2% 11.4%

Any Others (Specify) 0.5% 0.6% 0.8% 0.6%Any Others (Specify) 0.5% 0.6% 0.8% 0.6%Any Others (Specify) 0.5% 0.6% 0.8% 0.6%

Total share holding 100.0% 100.0% 100.0% 100.0%Total share holding 100.0% 100.0% 100.0% 100.0%

Source: Perception ResearchSource: Perception ResearchSource: Perception Research

Private sector bank, despite government’s majority holding Private sector bank, despite government’s majority holding Private sector bank, despite government’s majority holding

J&K Bank is the only bank which have 53.2% of governmentJ&K Bank is the only bank which have 53.2% of governmentJ&K Bank is the only bank which have 53.2% of government

banks. Out of the total promoter holding 94% of sharesbanks. Out of the total promoter holding 94% of sharesbanks. Out of the total promoter holding 94% of shares

government of J&K and balance 6% is in the strong handsgovernment of J&K and balance 6% is in the strong handsgovernment of J&K and balance 6% is in the strong hands

department of government of J&K.department of government of J&K.

Jammu & Kashmir and as aJammu & Kashmir and as a

only private sector bankonly private sector bankonly private sector bank

out the banking business ofout the banking business ofout the banking business of

CBDT. J&K Bank follows aCBDT. J&K Bank follows aCBDT. J&K Bank follows a

lending in its home state whichlending in its home state whichlending in its home state which

the same time, seeks tothe same time, seeks tothe same time, seeks to

build volumes and improvebuild volumes and improvebuild volumes and improve

Q4FY13 Q1FY14 % QOQ % SPLY Share Holding Pattern Q1FY14Q4FY13 Q1FY14 % QOQ % SPLY Share Holding Pattern Q1FY14

53.2% 53.2% 0.0% 0.0%53.2% 53.2% 0.0% 0.0%53.2% 53.2% 0.0% 0.0%

50.2% 50.2% 0.0% 0.0%50.2% 50.2% 0.0% 0.0%

3.0% 3.0% 0.0% 0.0%3.0% 3.0% 0.0% 0.0% Promoter3.0% 3.0% 0.0% 0.0%

46.8% 46.8% 0.0% 0.0% 17%

Promoter

46.8% 46.8% 0.0% 0.0%

29.4% 29.7% 0.9% 0.7%

17%

29.4% 29.7% 0.9% 0.7%FII

29.4% 29.7% 0.9% 0.7%

4.4% 4.5% 1.0% 78.7% 5%FII

4.4% 4.5% 1.0% 78.7%

0.0% 0.0% -15.7% 0.0%

5%FII

4.4% 4.5% 1.0% 78.7%

0.0% 0.0% -15.7% 0.0%53%

0.0% 0.0% -15.7% 0.0%

0.4% 0.4% 0.0% 0.0%53%

DII0.4% 0.4% 0.0% 0.0%53%

DII0.4% 0.4% 0.0% 0.0%

24.5% 24.8% 0.9% -6.7% 25%24.5% 24.8% 0.9% -6.7%

5.4% 5.0% -6.2% -17.4%

25%

5.4% 5.0% -6.2% -17.4%Non Institutions

5.4% 5.0% -6.2% -17.4%

11.4% 11.4% 0.3% 6.3%Non Institutions

11.4% 11.4% 0.3% 6.3%

0.6% 0.7% 7.5% 33.4%0.6% 0.7% 7.5% 33.4%0.6% 0.7% 7.5% 33.4%

100.0% 100.0% 0.0% 0.0%100.0% 100.0% 0.0% 0.0%

government holding in privet sectorgovernment holding in privet sectorgovernment holding in privet sector

held to chief secretaryheld to chief secretaryheld to chief secretary

hands of secretary financehands of secretary financehands of secretary finance

�Investment rational�Investment rational�Investment rational

Healthy performance to continueHealthy performance to continue

Loan book and deposits grew at moderate pace over last fiveLoan book and deposits grew at moderate pace over last fiveLoan book and deposits grew at moderate pace over last five

deposits grew at a CAGR of 17% and 18% respectively, overdeposits grew at a CAGR of 17% and 18% respectively, overdeposits grew at a CAGR of 17% and 18% respectively, over

FY13A) however, we expected loan book and deposits will to grewFY13A) however, we expected loan book and deposits will to grewFY13A) however, we expected loan book and deposits will to grew

16% respectively, over the period of FY13A to FY16E. Due to increased16% respectively, over the period of FY13A to FY16E. Due to increased16% respectively, over the period of FY13A to FY16E. Due to increased

tourism activity along with focus on infrastructure spendingtourism activity along with focus on infrastructure spendingtourism activity along with focus on infrastructure spending

government, we are looking much potential growth in cominggovernment, we are looking much potential growth in cominggovernment, we are looking much potential growth in coming

Exhibit 02 : Growth in depositsExhibit 02 : Growth in deposits

30%8000066605

30%80000

56445

6660526%

30%80000

4743256445

26%

60000 4743256445

19%21%

19% 20%60000

3307739200

4743219%

21%19% 18%

20%

330773920019% 19% 18%

40000 33077

10%

40000

10%20000

10%20000

0%0 0%0

FY12A FY13A FY14E FY15E FY16EFY12A FY13A FY14E FY15E FY16EFY12A FY13A FY14E FY15E FY16E

Advances Growth %Advances Growth %

Source: Perception ResearchSource: Perception Research

J&K bank has strong deposit franchise and focus towards J&KJ&K bank has strong deposit franchise and focus towards J&KJ&K bank has strong deposit franchise and focus towards J&K

to deposits and 39% to loan book respectively. The managementto deposits and 39% to loan book respectively. The managementto deposits and 39% to loan book respectively. The management

confident to maintain there market share in J&K state for the currentconfident to maintain there market share in J&K state for the currentconfident to maintain there market share in J&K state for the current

Deposits Deposits

Y/E 31 March 1QFY13 4QFY13 1QFY14 QOQ SPLY FY12A FY13A YOYY/E 31 March 1QFY13 4QFY13 1QFY14 QOQ SPLY FY12A FY13A YOYY/E 31 March 1QFY13 4QFY13 1QFY14 QOQ SPLY FY12A FY13A YOY

Within J&K 34920 40867 39681 -3% 14% 35308 40867 16%Within J&K 34920 40867 39681 -3% 14% 35308 40867 16%Within J&K 34920 40867 39681 -3% 14% 35308 40867 16%

Rest of India 18197 23354 18920 -19% 4% 13803 23354 69%Rest of India 18197 23354 18920 -19% 4% 13803 23354 69%

Whole Bank 53117 64221 58601 -9% 10% 49111 64221 31%Whole Bank 53117 64221 58601 -9% 10% 49111 64221 31%

Within J&K 66% 64% 68% - - 72% 64%Within J&K 66% 64% 68% - - 72% 64%

Rest of India 34% 36% 32% - - 28% 36%Rest of India 34% 36% 32% - - 28% 36%Rest of India 34% 36% 32% - - 28% 36%

five years (loan book andfive years (loan book andfive years (loan book and

over the period of FY09A toover the period of FY09A toover the period of FY09A to

grew at a CAGR of 19% andgrew at a CAGR of 19% andgrew at a CAGR of 19% and

increased commercial andincreased commercial andincreased commercial and

spending by the centralspending by the centralspending by the central

time for J&K Bank.time for J&K Bank.time for J&K Bank.

Exhibit 03 : Growth in advancesExhibit 03 : Growth in advances

30%8000066605

30%80000

56445

6660526%

30%80000

4743256445

26%

60000 4743256445

19%21%

19% 20%60000

3307739200

4743219%

21%19% 18%

20%

330773920019% 19% 18%

40000 33077

10%

40000

10%20000

10%20000

0%0 0%0


Advances Growth %Advances Growth %


state would support 64%state would support 64%state would support 64%

management of J&K bank is prettymanagement of J&K bank is prettymanagement of J&K bank is pretty

current fiscal.current fiscal.current fiscal.

Gross AdvancesGross Advances

YOY Y/E 31 March 1QFY13 4QFY13 1QFY14 QOQ SPLY FY12A FY13A YOYYOY Y/E 31 March 1QFY13 4QFY13 1QFY14 QOQ SPLY FY12A FY13A YOYYOY Y/E 31 March 1QFY13 4QFY13 1QFY14 QOQ SPLY FY12A FY13A YOY

16% Within J&K 13525 15839 16940 7% 25% 12574 15839 26%16% Within J&K 13525 15839 16940 7% 25% 12574 15839 26%16% Within J&K 13525 15839 16940 7% 25% 12574 15839 26%

69% Rest of India 20544 24293 23294 -4% 13% 20556 24293 18%69% Rest of India 20544 24293 23294 -4% 13% 20556 24293 18%

31% Whole Bank 34069 40132 40234 0% 18% 33130 40132 21%31% Whole Bank 34069 40132 40234 0% 18% 33130 40132 21%

- Within J&K 40% 39% 42% - - 38% 39% -- Within J&K 40% 39% 42% - - 38% 39% -

- Rest of India 60% 61% 58% - - 62% 61% -- Rest of India 60% 61% 58% - - 62% 61% -- Rest of India 60% 61% 58% - - 62% 61% -

Strong geographic presence in J&K state creates the dominionsStrong geographic presence in J&K state creates the dominionsStrong geographic presence in J&K state creates the dominions

J&K bank is the only privet sector bank in the stats of J&K hasJ&K bank is the only privet sector bank in the stats of J&K hasJ&K bank is the only privet sector bank in the stats of J&K has

to carry on the general banking business of the central governmentto carry on the general banking business of the central governmentto carry on the general banking business of the central government

leadership position in the state with network of 579 branchesleadership position in the state with network of 579 branchesleadership position in the state with network of 579 branches

total branches and 544 ATMs. J&K bank also dominates thetotal branches and 544 ATMs. J&K bank also dominates the

share in total advances and 65% market share in total deposits

total branches and 544 ATMs. J&K bank also dominates the

share in total advances and 65% market share in total depositsshare in total advances and 65% market share in total deposits

Exhibit 04: Branches Total – J&K StateExhibit 04: Branches Total – J&K State

100%2000 100%2000

82% 85% 87% 87%

100%2000

82% 85% 87% 87%80%

150085769%

82% 80%1500

715

85769%60%

579715 60%

1000

380496

57940%

1000

380496 40%

500685 821 985 20%

500

548 603 685 821 985 20%500

548 603 685

0%0 0%0

FY11A FY12A FY13A FY14E FY15EFY11A FY12A FY13A FY14E FY15E

Total Branches J&K Branches J&K Branches % to toatlTotal Branches J&K Branches J&K Branches % to toatlTotal Branches J&K Branches J&K Branches % to toatl


Massive expansion in networkMassive expansion in networkMassive expansion in network

To improve the geographic presence and to obtain the moreTo improve the geographic presence and to obtain the more

business J&K bank planed massive expansion in their network.

To improve the geographic presence and to obtain the more

business J&K bank planed massive expansion in their network.business J&K bank planed massive expansion in their network.

expansion plan of 300 new branches and almost equivalent ATMsexpansion plan of 300 new branches and almost equivalent ATMsexpansion plan of 300 new branches and almost equivalent ATMs

Exhibit 06: Expansion plan in Branches & ATMExhibit 06: Expansion plan in Branches & ATMExhibit 06: Expansion plan in Branches & ATM

50%2000 50%2000

41% 40%1500

837

41% 40%1500

698

83730%

1500

613698

25%30%

1000508

61320% 20%

25%21% 20% 20%

1000

246 288 361508

14%

20% 20%17%

21%

14%

20% 20%

821 985246 288 361

10%14%

10%

17%14%

10%500

530 536 548 603 685 821 98510%

14%10%

14%10%

500

530 536 548 603 685

1% 1% 2%

10%10%

0%0 1% 1% 2% 0%0 0%0

FY9A FY10A FY11A FY12A FY13A FY14E FY15EFY9A FY10A FY11A FY12A FY13A FY14E FY15E

Branches ATM Growth % Growth %Branches ATM Growth % Growth %


dominionsdominionsdominions

right to act behalf on RBIright to act behalf on RBIright to act behalf on RBI

government. J&K Bank has thegovernment. J&K Bank has thegovernment. J&K Bank has the

branches which comprises 80% ofbranches which comprises 80% ofbranches which comprises 80% of

region with 70% marketregion with 70% market

in the state.

region with 70% market

in the state.in the state.

Exhibit 05: ATM Total – J&K StateExhibit 05: ATM Total – J&K State

100%2000 100%2000

89% 90% 90%100%2000

89% 90% 90%80%

150068%

80%1500

75461%68%

60%

544628

75461% 60%1000

345544

62840%

1000

345544 40%

500613 698 837220

345

20%500

361 508 613 698 837220 20%500

361 508 613

0%0 0%0

FY11A FY12A FY13A FY14E FY15EFY11A FY12A FY13A FY14E FY15ETotal ATM J&K ATM J&K ATM % to toatlTotal ATM J&K ATM J&K ATM % to toatl


opportunities in bankingopportunities in banking

The bank has impressive

opportunities in banking

The bank has impressiveThe bank has impressive

ATMs by the end of FY15.ATMs by the end of FY15.ATMs by the end of FY15.

Exhibit 07: Branches in Metro, Urban, Semi – Urban & RuralExhibit 07: Branches in Metro, Urban, Semi – Urban & RuralExhibit 07: Branches in Metro, Urban, Semi – Urban & Rural

12001200

1000

800

1000

453800

378

453

600

800

332378600

197204 206 223 273332

400

600

121 123 136164

197204 206 223 273400

222 266119 121 118 123 136

164

200166 168 168 168 178 222 266119 121 118 123 136

200

41 41 39 39 39 57 69166 168 168 168 178 222

0 41 41 39 39 39 57 690

FY9A FY10A FY11A FY12A FY13A FY14E FY15EFY9A FY10A FY11A FY12A FY13A FY14E FY15E

Metro Urban Semi-Urban RuralMetro Urban Semi-Urban Rural


Focus towards J&K state will lead to improvement in NIMFocus towards J&K state will lead to improvement in NIMFocus towards J&K state will lead to improvement in NIM

With strong deposit franchise and focus (increase lending) towardsWith strong deposit franchise and focus (increase lending) towardsWith strong deposit franchise and focus (increase lending) towards

support margins going ahead. Bank earns NIMs of 6.20% withinsupport margins going ahead. Bank earns NIMs of 6.20% withinsupport margins going ahead. Bank earns NIMs of 6.20% within

outside the state. We expected NIM to sustain at current levelsoutside the state. We expected NIM to sustain at current levelsoutside the state. We expected NIM to sustain at current levels

the range of 61 to 65 percent, going ahead, and credit growththe range of 61 to 65 percent, going ahead, and credit growth

portfolio) is expected to grow at a faster pace. J&K Bank has

the range of 61 to 65 percent, going ahead, and credit growth

portfolio) is expected to grow at a faster pace. J&K Bank hasportfolio) is expected to grow at a faster pace. J&K Bank has

FY13, which we expect to improve to 63% in FY14E andFY13, which we expect to improve to 63% in FY14E andFY13, which we expect to improve to 63% in FY14E and

management has guided credit growth (22-25%) will outpacemanagement has guided credit growth (22-25%) will outpacemanagement has guided credit growth (22-25%) will outpace

We have factored in 21% credit growth and 16.5% deposit growthWe have factored in 21% credit growth and 16.5% deposit growthWe have factored in 21% credit growth and 16.5% deposit growth

Exhibit 08:Loan Book - J&K stats and Rest of IndiaExhibit 08:Loan Book - J&K stats and Rest of India

30%80000 30%80000

26% 25%

30%80000

23%26%

23% 23%25%

60000 23% 23% 23%21% 20%

60000

3862021%

18% 18%16% 16%

20%

332983862018% 18%

16% 16% 15%40000

2429328701

3329813%

16% 16% 15%40000

2055624293

2870113%10%

2000029135

2055624293

5%

10%20000

12574 15839 19536 24113 29135 5%20000

12574 15839 19536 24113

0%

5%

012574

0%0

FY12A FY13A FY14E FY15E FY16EFY12A FY13A FY14E FY15E FY16E

J&K State Rest of India Growth (%) Growth (%)J&K State Rest of India Growth (%) Growth (%)


Exhibit 10:NIM - J&K stateExhibit 10:NIM - J&K stateExhibit 10:NIM - J&K state

FY16E, 6.2%FY15E, 6.2% FY16E, 6.2%

FY13A, 6.2%

FY15E, 6.2% FY16E, 6.2%

FY13A, 6.2%FY13A, 6.2%

FY14E, 6.1%FY14E, 6.1%FY14E, 6.1%

FY12A, 6.0%FY12A, 6.0%FY12A, 6.0%

0 1 2 3 4 5 60 1 2 3 4 5 6


towards J&K state wouldtowards J&K state wouldtowards J&K state would

within the state and 2.5%within the state and 2.5%within the state and 2.5%

levels of 4%+ as its CD ratio inlevels of 4%+ as its CD ratio inlevels of 4%+ as its CD ratio in

growth with J&K (higher yieldinggrowth with J&K (higher yielding

has a CD ratio of 61% as on

growth with J&K (higher yielding

has a CD ratio of 61% as onhas a CD ratio of 61% as on

64% in FY15E. Even the64% in FY15E. Even the64% in FY15E. Even the

deposit growth (17-18%).deposit growth (17-18%).deposit growth (17-18%).

growth in FY14E.growth in FY14E.growth in FY14E.

Exhibit 09: Deposits - J&K stats and Rest of IndiaExhibit 09: Deposits - J&K stats and Rest of India

80%120000 80%120000

69%

80%

100000

120000

69%60%

100000

4109760%

8000034865

4109780000

2335428430

3486540%60000

1380323354

28430 40%

40000

60000

5913913803

23354

24% 22% 23% 20%40000

35308 40867 46387 52297 5913913803

12%16% 14% 13% 13%

24% 22% 23%18% 20%

20000

40000

35308 40867 46387 52297 5913912%

16% 14% 13% 13%18% 20%

20000 3530812% 14% 13% 13%

0%0 0%0


J&K State Rest of India Growth (%) Growth (%)J&K State Rest of India Growth (%) Growth (%)


Exhibit 11:NIM - Rest of IndiaExhibit 11:NIM - Rest of IndiaExhibit 11:NIM - Rest of India

FY15E, 2.6%FY16E, 2.6%

FY15E, 2.6%FY16E, 2.6%FY16E, 2.6%

FY13A, 2.6%FY13A, 2.6%

FY12A, 2.5% FY14E, 2.5%FY12A, 2.5% FY14E, 2.5%FY12A, 2.5% FY14E, 2.5%

0 1 2 3 4 5 60 1 2 3 4 5 6


Huge Potential in J&K state for Horticultural LendingHuge Potential in J&K state for Horticultural LendingHuge Potential in J&K state for Horticultural Lending

Agriculture involves about 70% of the population and contributesAgriculture involves about 70% of the population and contributesAgriculture involves about 70% of the population and contributes

only 16 % of J&K Bank’s lending is to this sector. Horticulturalonly 16 % of J&K Bank’s lending is to this sector. Horticulturalonly 16 % of J&K Bank’s lending is to this sector. Horticultural

about 45 % to Agricultural production and involves 30 lack peopleabout 45 % to Agricultural production and involves 30 lack peopleabout 45 % to Agricultural production and involves 30 lack people

% by value of the State’s Horticultural output. J&K State produces% by value of the State’s Horticultural output. J&K State produces% by value of the State’s Horticultural output. J&K State produces

apple output and controls 49 % of land dedicated to apple cultivationapple output and controls 49 % of land dedicated to apple cultivationapple output and controls 49 % of land dedicated to apple cultivation

Out of a total of more than 283000 apple growers in the State,Out of a total of more than 283000 apple growers in the State,Out of a total of more than 283000 apple growers in the State,

extended to about 17300 growers so far. Tapping the remainingextended to about 17300 growers so far. Tapping the remainingextended to about 17300 growers so far. Tapping the remaining

credit of about Rs.7000 Cr more. In J&K state’s 75 % of Apple growerscredit of about Rs.7000 Cr more. In J&K state’s 75 % of Apple growerscredit of about Rs.7000 Cr more. In J&K state’s 75 % of Apple growers

from traders and are unaware that its effective interest costfrom traders and are unaware that its effective interest costfrom traders and are unaware that its effective interest cost

54%, against the Bank’s interest ranging from 4% to11%.54%, against the Bank’s interest ranging from 4% to11%.54%, against the Bank’s interest ranging from 4% to11%.

Current shortfall in Agriculture Sector Lending is Rs. 2335 Cr, whichCurrent shortfall in Agriculture Sector Lending is Rs. 2335 Cr, which

RIDF/MSME Bonds/RHF @ 3 to 5 % for 3-7 years. Interest Subvention

Current shortfall in Agriculture Sector Lending is Rs. 2335 Cr, which

RIDF/MSME Bonds/RHF @ 3 to 5 % for 3-7 years. Interest SubventionRIDF/MSME Bonds/RHF @ 3 to 5 % for 3-7 years. Interest Subvention

to J&K Bank recently providing a level playing field vis-à-vis Publicto J&K Bank recently providing a level playing field vis-à-vis Publicto J&K Bank recently providing a level playing field vis-à-vis Public

of pricing of agricultural loans and improve the flow of creditof pricing of agricultural loans and improve the flow of creditof pricing of agricultural loans and improve the flow of credit

particularly in J&K State. Assuming yield on incremental Agriculturalparticularly in J&K State. Assuming yield on incremental Agriculturalparticularly in J&K State. Assuming yield on incremental Agricultural

Rate of 10.25 %, the incremental yield (10.25% - 4 %) wouldRate of 10.25 %, the incremental yield (10.25% - 4 %) wouldRate of 10.25 %, the incremental yield (10.25% - 4 %) would

revenue of about Rs. 146 Cr per year on lending Rs. 2335revenue of about Rs. 146 Cr per year on lending Rs. 2335revenue of about Rs. 146 Cr per year on lending Rs. 2335

increasing agricultural advances will improve core advances portfolioincreasing agricultural advances will improve core advances portfolioincreasing agricultural advances will improve core advances portfolio

inclusion, widening customer base and enhancing outreach in remoteinclusion, widening customer base and enhancing outreach in remote

Exhibit 12: Apple Grower in J&K StateExhibit 12: Apple Grower in J&K State

Total Grower Total Grower Total Grower

, 283000, 283000


contributes 23 % to the GDP, yetcontributes 23 % to the GDP, yetcontributes 23 % to the GDP, yet

Horticultural production contributesHorticultural production contributesHorticultural production contributes

people. Apples account for 86people. Apples account for 86people. Apples account for 86

produces 77 % of India’s totalproduces 77 % of India’s totalproduces 77 % of India’s total

cultivation.cultivation.cultivation.

State, Bank’s finance has beenState, Bank’s finance has beenState, Bank’s finance has been

remaining growers will generateremaining growers will generateremaining growers will generate

growers get their financinggrowers get their financinggrowers get their financing

cost works out to 36% tocost works out to 36% tocost works out to 36% to

which has to be invested inwhich has to be invested in

Subvention Scheme extended

which has to be invested in

Subvention Scheme extendedSubvention Scheme extended

Public Sector Banks in termsPublic Sector Banks in termsPublic Sector Banks in terms

credit to agricultural sectorcredit to agricultural sectorcredit to agricultural sector

Agricultural Advances at BaseAgricultural Advances at BaseAgricultural Advances at Base

would generate an incrementalwould generate an incrementalwould generate an incremental

Cr to agricultural sectorCr to agricultural sectorCr to agricultural sector

portfolio helping in financialportfolio helping in financialportfolio helping in financial

remote rural areasremote rural areas

Potential For Potential For

Lending, 265700Lending, 265700Lending, 265700

J&K's J&K's

Borrower,17300Borrower,17300Borrower,17300

Cheap Valuation and High Dividend yieldCheap Valuation and High Dividend yieldCheap Valuation and High Dividend yield

At current market price, J&K bank is still available at FY14E PriceAt current market price, J&K bank is still available at FY14E PriceAt current market price, J&K bank is still available at FY14E Price

times. The estimated dividend yield for FY14 is 5.4%. High dividendtimes. The estimated dividend yield for FY14 is 5.4%. High dividendtimes. The estimated dividend yield for FY14 is 5.4%. High dividend

cushion. At CMP of Rs 1101, the stock is trading at 4.3x and 3.cushion. At CMP of Rs 1101, the stock is trading at 4.3x and 3.

FY15E, respectively.FY15E, respectively.FY15E, respectively.

Exhibit 13: P/E (x) & P/BV (x) Exhibit 13: P/E (x) & P/BV (x)

1.2 1.51.1

1.2 1.51.1

0.9 1.10.9 1.10.9

7.37.8

1.10.9

0.86.8 7.37.8

0.90.8

0.66.8 7.3

5.3

0.80.6

5.35.1 4.3

0.6

5.1 4.33.53.5

2.92.9

FY9A FY10A FY11A FY12A FY13A FY14E FY15E FY16EFY9A FY10A FY11A FY12A FY13A FY14E FY15E FY16E

P/E (X) P/BV (X)

Source: Perception Research

P/E (X) P/BV (X)


Price to book value of 0.9Price to book value of 0.9Price to book value of 0.9

dividend yield gives us a nicedividend yield gives us a nicedividend yield gives us a nice

.5x to its PE for FY14E &.5x to its PE for FY14E &

Exhibit 14: DPS & Dividend yieldExhibit 14: DPS & Dividend yield

10%100 88 10%100

72

88 10%100

728% 8% 8%8059

8%

7%

8% 8%80

5059

5%

7%6%60

33

50

5%5%

5%6%60

26334% 4%

5%5%

5%

4%40

1722 26

334% 4%5%

4%40

1722

2%20 2%20

0%0 0%0

FY9A FY10A FY11A FY12A FY13A FY14E FY15E FY16EFY9A FY10A FY11A FY12A FY13A FY14E FY15E FY16E

DPS Dividend yield (%)DPS Dividend yield (%)


DPS Dividend yield (%)


�Asset quality�Asset quality�Asset quality

GNPA is slightly higher during FY13….and expecting to be sameGNPA is slightly higher during FY13….and expecting to be sameGNPA is slightly higher during FY13….and expecting to be same

On the YOY bases J&K bank posted slide higher GNPA (Rs 39200On the YOY bases J&K bank posted slide higher GNPA (Rs 39200On the YOY bases J&K bank posted slide higher GNPA (Rs 39200

compare to previous year of FY12 (Rs 33077, 1.56 % to advance)compare to previous year of FY12 (Rs 33077, 1.56 % to advance)compare to previous year of FY12 (Rs 33077, 1.56 % to advance)

from management of J&K bank and our financial model we stronglyfrom management of J&K bank and our financial model we stronglyfrom management of J&K bank and our financial model we strongly

J&K Bank will maintain there GNPA in the range of 1.65% to 1.70J&K Bank will maintain there GNPA in the range of 1.65% to 1.70J&K Bank will maintain there GNPA in the range of 1.65% to 1.70

Well position PCR (Provision coverage ration)Well position PCR (Provision coverage ration)

The bank consistently maintain the PCR at 90% for past three yearThe bank consistently maintain the PCR at 90% for past three yearThe bank consistently maintain the PCR at 90% for past three year

from management we expected that bank will maintain the PCRfrom management we expected that bank will maintain the PCRfrom management we expected that bank will maintain the PCR

Exhibit 15: Gross NPAExhibit 15: Gross NPAExhibit 15: Gross NPA

1104 1.70%1200958

1104

1.67% 1.68% 1.67%

1.70%1200

809

9581.67% 1.68% 1.67%1.65%1000

809 1.65%1000

644

809

1.62%1.60%

800

517

644 1.62%1.60%

600

800

5171.60%

600

1.54%1.55%

400

600

1.54%1.55%

400

1.50%200

400

1.50%200

1.45%0 1.45%0


GNPA (Rs In Cr) GNPA (%)GNPA (Rs In Cr) GNPA (%)


Exhibit 17: NPA - Substandard, Doubtful & LossExhibit 17: NPA - Substandard, Doubtful & Loss

12001200

771000

1200

72

771000

65

72800

64065800

556640

57

65

600469

556

93

57600

37846993

400247

378

200

400

176 209 275 331 386247

200176 209 275 331 386

0

200176 209

0


Substandard Doubtful LossSubstandard Doubtful Loss


Substandard Doubtful Loss


same for FY14Esame for FY14Esame for FY14E

39200, 1.64% to advance)39200, 1.64% to advance)39200, 1.64% to advance)

advance). As per the guidanceadvance). As per the guidanceadvance). As per the guidance

strongly expecting that, thestrongly expecting that, thestrongly expecting that, the

70% for the fiscal of FY14.70% for the fiscal of FY14.70% for the fiscal of FY14.

year. As per the guidanceyear. As per the guidanceyear. As per the guidance

PCR at 91% for FY14E.PCR at 91% for FY14E.PCR at 91% for FY14E.

Exhibit 16: Net NPAExhibit 16: Net NPAExhibit 16: Net NPA

94 0.15%10081

94 0.15%100

69

810.15%

80 690.15%

0.15%80

4955

69

0.14% 0.14% 0.14%

0.15%

60 4955

0.14% 0.14% 0.14%60 49

0.14%

0.14% 0.14%

0.14%60

0.14%0.14%

40

0.14%

40

0.14%20

0.14%20

0.13%0 0.13%0 0.13%0

FY12A FY13A FY14E FY15E FY16EFY12A FY13A FY14E FY15E FY16ENNPA (Rs In Cr) NNPA (%)NNPA (Rs In Cr) NNPA (%)


Exhibit 18: PCRExhibit 18: PCR

91% 92% 92% 92%92%1500

1150105290%

91% 92% 92% 92%92%1500

966

11501052

90%90% 90%

805966

8841052

90% 90%

1000

644805

737884

88%1000

462 519 517644

466 467589

737 88%

462 519 517398

466 467589

86% 86%500

462 398466 46786% 86%

500

84%

500

84%

82%0 82%0

FY10A FY11A FY12A FY13A FY14E FY15E FY16EFY10A FY11A FY12A FY13A FY14E FY15E FY16E

GNPA Provisions on BS Provisions coverage %GNPA Provisions on BS Provisions coverage %


GNPA Provisions on BS Provisions coverage %


Slippage are marginally increaseSlippage are marginally increaseSlippage are marginally increase

Slippages are marginally increases during the FY13. On yoySlippages are marginally increases during the FY13. On yoySlippages are marginally increases during the FY13. On yoy

bank posted the slippage ratio of 1.16 for the period of FY13bank posted the slippage ratio of 1.16 for the period of FY13bank posted the slippage ratio of 1.16 for the period of FY13

the 0.95 of FY12. Even for the Q1FY14 slippage is 0.88 whichthe 0.95 of FY12. Even for the Q1FY14 slippage is 0.88 which

slightly higher on qoq bases. We have assumed 1.15 slippageslightly higher on qoq bases. We have assumed 1.15 slippageslightly higher on qoq bases. We have assumed 1.15 slippage

for FY14E and expecting that it will gradually reduce in FY15for FY14E and expecting that it will gradually reduce in FY15for FY14E and expecting that it will gradually reduce in FY15

FY16EFY16EFY16E

Consistency in CASAConsistency in CASAConsistency in CASA

CASA ratio of J&K Bank is 40% against the industry average ofCASA ratio of J&K Bank is 40% against the industry average ofCASA ratio of J&K Bank is 40% against the industry average of

Healthy CASA is one of the advantage of J&K bank. We stronglyHealthy CASA is one of the advantage of J&K bank. We stronglyHealthy CASA is one of the advantage of J&K bank. We strongly

expected that bank will maintain this position for coning twoexpected that bank will maintain this position for coning twoexpected that bank will maintain this position for coning two

three years.three years.three years.

Restructure assets % to total advanceRestructure assets % to total advanceRestructure assets % to total advance

As a restructure assets are technical in nature, there are marginalAs a restructure assets are technical in nature, there are marginalAs a restructure assets are technical in nature, there are marginal

decreases in restructure assets in advance for FY13. On yoy basedecreases in restructure assets in advance for FY13. On yoy base

restructure assets in advance for FY 13 is 1490 Cr (3.84%) againstrestructure assets in advance for FY 13 is 1490 Cr (3.84%) againstrestructure assets in advance for FY 13 is 1490 Cr (3.84%) against

1366 Cr (4.13%) of FY12 and simultaneously for Q1FY14 it is 13671366 Cr (4.13%) of FY12 and simultaneously for Q1FY14 it is 13671366 Cr (4.13%) of FY12 and simultaneously for Q1FY14 it is 1367

(3.48%) against the same period last year of Q1FY13 it was 1688(3.48%) against the same period last year of Q1FY13 it was 1688(3.48%) against the same period last year of Q1FY13 it was 1688

(5.08%).(5.08%).(5.08%).

Exhibit 19 : SlippageExhibit 19 : Slippage

basesbases1.50%80000

bases

ageist 1.50%80000ageist599

1.50%80000ageist

which is 564

5991.16% 1.15%60000which is

ration 545564

0.95%

1.16% 1.15%1.00%

0.90%1.00%

60000

ration 455545

5640.95% 1.00%

0.90%1.00%

40000ration

15E and66605315

455545 0.90%

40000

15E and 4743256445

66605315455

0.50%15E and33077 39200

4743256445 0.50%

2000033077 3920020000

0.00%0 0.00%0


Standard assets NPA Addition Slippage ratioStandard assets NPA Addition Slippage ratio


Exhibit 20 : CASA

of 34%.

Exhibit 20 : CASA

of 34%.of 34%.

stronglystrongly 41%150000strongly

two to41%

41%

41%150000

two to 4009441%

41%two to34865

40094

40% 40% 40% 40%100000

2519129927

3486540% 40% 40%

40%

40%100000

2171525191

29927

39%40%

10023621715

2519139%

39%

40%

50000

64221 74817 87162 10023639%

39%50000

53347 64221 74817 87162

39%53347 64221

38%

39%

0 38%0 38%0


total Deposits Demand + saving CASAtotal Deposits Demand + saving CASA


total Deposits Demand + saving CASA


Exhibit 21 : Movement in Restructured Assets Exhibit 21 : Movement in Restructured Assets

marginalmarginal5.55%

6.00%50000marginal

base the 5.08%5.55%

6.00%

40000

50000

base the

against the 1367 19781490 1490 13675.08%

5.55%40000

against the 1366 1688 1367 19781490 1490 1367

4.13% 3.99% 3.80% 3.80% 4.00%30000

40000

against the

1367 Cr

1366 1688 13674.13% 3.99% 3.80% 3.80%3.48%

4.00%30000

1367 Cr39200 39200 39282

3.48%

20000

30000

1367 Cr

1688 Cr 33077 33225 34272 35657 39200 39200 392822.00%

20000

1688 Cr 33077 33225 34272 35657 39200 39200 392822.00%

10000

20000

1688 Cr10000

0.00%0

10000

0.00%0

FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 FY13 Q1FY14FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 FY13 Q1FY14

Advances Restructured Assets RA % to total advanceAdvances Restructured Assets RA % to total advance


Capital adequacyCapital adequacyCapital adequacy

The bank is well capitalized with total capital adequacy ratioThe bank is well capitalized with total capital adequacy ratioThe bank is well capitalized with total capital adequacy ratio

10.44% and Tire 2 at 1.90% by the end of FY13. The risk waited10.44% and Tire 2 at 1.90% by the end of FY13. The risk waited10.44% and Tire 2 at 1.90% by the end of FY13. The risk waited

at 46597 Cr, 56% to total assets.at 46597 Cr, 56% to total assets.

Exhibit 22 : Tier I & II & Capital AdequacyExhibit 22 : Tier I & II & Capital AdequacyExhibit 22 : Tier I & II & Capital Adequacy

13.50%15.00%11.88% 11.72% 11.75%

13.50%15.00%

10.43% 10.44%11.88% 11.72% 11.75%

13.11%13.00%

10.43% 10.44% 13.11%13.00%

10.00%12.74%

12.61%

13.00%10.00%

12.53%12.74%

12.61%12.50%12.53%

12.34%12.50%

5.00%2.10% 1.90%

12.34%

12.00%5.00%

2.10% 1.90% 1.23% 1.02% 0.86%12.00%

5.00%

1.23% 1.02% 0.86%

11.50%0.00% 11.50%0.00%


Tier 1 Tier 2 Capital adequacy


Tier 1 Tier 2 Capital adequacy


ConclusionConclusionConclusion

The bank’s asset quality remained stable sequentially, with a marginalThe bank’s asset quality remained stable sequentially, with a marginal

gross NPA ratio to 1.62% and 1bp decline in the net NPA ratiogross NPA ratio to 1.62% and 1bp decline in the net NPA ratiogross NPA ratio to 1.62% and 1bp decline in the net NPA ratio

levels were slightly higher at 140cr (for FY13 annualized slippagelevels were slightly higher at 140cr (for FY13 annualized slippagelevels were slightly higher at 140cr (for FY13 annualized slippage

for FY12). The bank’s PCR which is the highest in the industryfor FY12). The bank’s PCR which is the highest in the industryfor FY12). The bank’s PCR which is the highest in the industry

sequential basis (yoy) by 97bp to 91.41%.sequential basis (yoy) by 97bp to 91.41%.sequential basis (yoy) by 97bp to 91.41%.

of 12.35% with Tier 1 atof 12.35% with Tier 1 atof 12.35% with Tier 1 at

waited assets for FY13 is stoodwaited assets for FY13 is stoodwaited assets for FY13 is stood

Exhibit 23 : RWA, RWA to total assetsExhibit 23 : RWA, RWA to total assetsExhibit 23 : RWA, RWA to total assets

69783 65%80000

58634

69783 65%80000

48652

5863462%60000

46597 48652

58634

60%

62%

60%60000

3924446597 48652

58%

60% 60%60000

3924458%40000

56%

58%

55%

40000

55%56% 55%

2000055% 55%

20000

50%0 50%0

FY12A FY13A FY14E FY15E FY16EFY12A FY13A FY14E FY15E FY16ERisk weighted assets RWA / Total assets

FY12A FY13A FY14E FY15E FY16ERisk weighted assets RWA / Total assets


Risk weighted assets RWA / Total assets


marginal increase of 8bp inmarginal increase of 8bp in

ratio to 0.14%. The slippageratio to 0.14%. The slippageratio to 0.14%. The slippage

slippage ratio of 1.16% v/s 0.95slippage ratio of 1.16% v/s 0.95slippage ratio of 1.16% v/s 0.95

industry by FY13, improved on aindustry by FY13, improved on aindustry by FY13, improved on a

�J&K State Economy�J&K State Economy�J&K State Economy

GDP Size and GrowthGDP Size and Growth

Economy or GDP in J&K State accelerating and is poised forEconomy or GDP in J&K State accelerating and is poised forEconomy or GDP in J&K State accelerating and is poised for

Government spending and Private Investment on the rise. RecordGovernment spending and Private Investment on the rise. RecordGovernment spending and Private Investment on the rise. Record

last two years, more expected this year. Increased investmentlast two years, more expected this year. Increased investmentlast two years, more expected this year. Increased investment

pushing up credit demand. The demand for financing private sectorpushing up credit demand. The demand for financing private sectorpushing up credit demand. The demand for financing private sector

ancillaries on the rise. Trickle down impact of all this will leadancillaries on the rise. Trickle down impact of all this will leadancillaries on the rise. Trickle down impact of all this will lead

income and savings, increasing capacity for servicing personal loansincome and savings, increasing capacity for servicing personal loansincome and savings, increasing capacity for servicing personal loans

Exhibit 24 : Sector wise contribution to GDPExhibit 24 : Sector wise contribution to GDPExhibit 24 : Sector wise contribution to GDP

5000050000

6.22400005.96 6.2240000

220164.80

5.96

3000018662 20344 220164.803000018662 20344 220164.8030000

2000020000

9871 9980 1060010000

9871 9980 1060010000

7796 8061 8154

10000

7796 8061 815400

FY10 FY11 FY12FY10 FY11 FY12

Primary Sector Secondary Sector Tertiary SectorPrimary Sector Secondary Sector Tertiary Sector


J&K State Credit GapJ&K State Credit GapJ&K State Credit Gap

J&K accounts for 0.6% of India’s GDP, for FY13 and absorbs onlyJ&K accounts for 0.6% of India’s GDP, for FY13 and absorbs onlyJ&K accounts for 0.6% of India’s GDP, for FY13 and absorbs only

credit. J&K accounts for 1% of India’s population and yet accountscredit. J&K accounts for 1% of India’s population and yet accountscredit. J&K accounts for 1% of India’s population and yet accounts

India’s personal credit. Credit in J&K needs to increase five-foldIndia’s personal credit. Credit in J&K needs to increase five-foldIndia’s personal credit. Credit in J&K needs to increase five-fold

J&K has to triple to catch up with the national average.J&K has to triple to catch up with the national average.J&K has to triple to catch up with the national average.

further growth in future.further growth in future.further growth in future.

Record tourist inflow duringRecord tourist inflow duringRecord tourist inflow during

investment in tourist infrastructureinvestment in tourist infrastructureinvestment in tourist infrastructure

sector projects, SME’s andsector projects, SME’s andsector projects, SME’s and

lead to increase in per capitalead to increase in per capitalead to increase in per capita

loans.loans.loans.

FY13 - J&K State’s Economy J&K StateFY13 - J&K State’s Economy J&K StateFY13 - J&K State’s Economy J&K State

Population (In Cr) 1.25Population (In Cr) 1.25

Area (in Sq Km) 2222368.00 Area (in Sq Km) 2222368.00 Area (in Sq Km) 222236

Density (Per/Sq Km) 1247.01 7.00 Density (Per/Sq Km) 124

Per Capita Income 30889

7.01

6.00

7.00

Per Capita Income 308896.00 Per Capita Income 30889

Population BPL (%) 21.63%23947 5.00

6.00

Population BPL (%) 21.63%

Literacy 68.74%23947 5.00

Literacy 68.74%

Unemployment Rate 4.90%4.00

Unemployment Rate 4.90%3.00

4.00Unemployment Rate 4.90%

FY13 - Indian Economy All India10711

3.00FY13 - Indian Economy All India

Population (In Cr) 121.0210711 2.00

Population (In Cr) 121.0210711

1.00

2.00Population (In Cr) 121.02

Area (in Sq Kms) 328724089701.00 Area (in Sq Kms) 3287240

Density (Per/Sq Km) 3828970

0.00

1.00

Density (Per/Sq Km) 382

Per Capita Income 39143

0.00

Per Capita Income 39143FY13 Per Capita Income 39143

Population BPL (%) 27.50%FY13

Population BPL (%) 27.50%

Literacy 74.04%J&K GDP Growth Rate Literacy 74.04%J&K GDP Growth Rate Literacy 74.04%

Unemployment Rate 9.40%Unemployment Rate 9.40%

only 0.30% of total nationalonly 0.30% of total nationalonly 0.30% of total national

accounts for only 0.2% ofaccounts for only 0.2% ofaccounts for only 0.2% of

fold and Personal Credit infold and Personal Credit infold and Personal Credit in

� Financials & Projections� Financials & Projections� Financials & Projections

Exhibit 25: Profit and Loss A/C (Rs In Cr)Exhibit 25: Profit and Loss A/C (Rs In Cr)

Y/E 31 March FY9A FY10A FY11AY/E 31 March FY9A FY10A FY11A

Interest Income

Y/E 31 March FY9A FY10A FY11A

Interest IncomeInterest Income

Yield on Advances 2295 2342 2630Yield on Advances 2295 2342 2630Yield on Advances 2295 2342 2630

Yield on Investments 646 705 1066Yield on Investments 646 705 1066

Yield on RBI & Inter Bank 31 11 17Yield on RBI & Inter Bank 31 11 17Yield on RBI & Inter Bank 31 11 17

Yield on Others 0 0 0Yield on Others 0 0 0

Total Interest Income 2972 3057 3713Total Interest Income 2972 3057 3713Total Interest Income 2972 3057 3713

Interest ExpenditureInterest Expenditure

Cost of Deposits 1915 1841 2069Cost of Deposits 1915 1841 2069Cost of Deposits 1915 1841 2069

Cost of RBI - Inter-Bank Borrowings 73 83 46Cost of RBI - Inter-Bank Borrowings 73 83 46

Cost of Subordinate Debt - Other 0 14 54

Cost of RBI - Inter-Bank Borrowings 73 83 46

Cost of Subordinate Debt - Other 0 14 54Cost of Subordinate Debt - Other 0 14 54

Total Interest Expenditure 1988 1938 2169Total Interest Expenditure 1988 1938 2169Total Interest Expenditure 1988 1938 2169

Net Interest Income 984 1119 1544Net Interest Income 984 1119 1544

Non-Interest Income 261 416 365Non-Interest Income 261 416 365Non-Interest Income 261 416 365

Total Income 1245 1536 1908Total Income 1245 1536 1908

Salaries/Wages 279 366 524Salaries/Wages 279 366 524Salaries/Wages 279 366 524

Depreciation 33 37 38Depreciation 33 37 38

Other operating expenses 160 174 197Other operating expenses 160 174 197Other operating expenses 160 174 197

Pre Provision Profits 774 958 1149Pre Provision Profits 774 958 1149

Loan loss provisions 56 150 130

Pre Provision Profits 774 958 1149

Loan loss provisions 56 150 130Loan loss provisions 56 150 130

Investment provisions 42 -39 41Investment provisions 42 -39 41Investment provisions 42 -39 41

Other provisions 44 55 44Other provisions 44 55 44

Provisions 142 167 215Provisions 142 167 215Provisions 142 167 215

Net Profit before tax 632 792 934Net Profit before tax 632 792 934

Income tax 222 279 319Income tax 222 279 319Income tax 222 279 319

Net Profit After Tax 410 513 615Net Profit After Tax 410 513 615

AppropriationsAppropriationsAppropriations

Transfer to Statutory Reserve 102 129 154Transfer to Statutory Reserve 102 129 154

Transfer to Other Reserves 212 259 314

Transfer to Statutory Reserve 102 129 154

Transfer to Other Reserves 212 259 314Transfer to Other Reserves 212 259 314

Equity Dividend 82 107 126Equity Dividend 82 107 126Equity Dividend 82 107 126

Dividend Tax 14 18 21Dividend Tax 14 18 21



3394 4318 5763 6830 80593394 4318 5763 6830 80593394 4318 5763 6830 8059

1403 1723 1893 2143 24261403 1723 1893 2143 2426

39 97 95 96 9739 97 95 96 9739 97 95 96 97

0 0 0 0 00 0 0 0 0

4836 6137 7751 9069 105834836 6137 7751 9069 105834836 6137 7751 9069 10583

2902 3741 4863 5666 65152902 3741 4863 5666 65152902 3741 4863 5666 6515

41 26 31 34 3641 26 31 34 36

54 54 54 54 54

41 26 31 34 36

54 54 54 54 5454 54 54 54 54

2997 3821 4948 5753 66052997 3821 4948 5753 66052997 3821 4948 5753 6605

1838 2316 2803 3315 39781838 2316 2803 3315 3978

334 484 526 571 621334 484 526 571 621334 484 526 571 621

2172 2800 3329 3886 45992172 2800 3329 3886 4599

521 652 731 818 916521 652 731 818 916521 652 731 818 916

44 50 50 54 5944 50 50 54 59

237 287 301 315 330237 287 301 315 330237 287 301 315 330

1370 1811 2247 2699 32941370 1811 2247 2699 3294

90 158 217 260 308

1370 1811 2247 2699 3294

90 158 217 260 30890 158 217 260 308

12 15 16 19 2112 15 16 19 2112 15 16 19 21

67 111 144 187 24467 111 144 187 244

169 284 377 466 572169 284 377 466 572169 284 377 466 572

1201 1527 1870 2233 27221201 1527 1870 2233 2722

398 471 617 737 898398 471 617 737 898398 471 617 737 898

803 1055 1253 1496 1823803 1055 1253 1496 1823

201 264 313 374 456201 264 313 374 456

414 508 601 718 875

201 264 313 374 456

414 508 601 718 875414 508 601 718 875

162 242 288 344 419162 242 288 344 419162 242 288 344 419

26 41 50 60 7326 41 50 60 73

Exhibit 26 : Yield on AdvancesExhibit 26 : Yield on AdvancesExhibit 26 : Yield on Advances

40%100008059

40%10000

6830

805933%8000

57636830

29%33%

30%8000

57636830

29%27%

30%

6000

8000

4318

576327%

20%6000

33944318

19% 18%20%

4000

6000

3394 19% 18%

12.2% 12.1% 12.1%

20%4000

10.3% 11.0% 12.2% 12.1% 12.1%10%

2000

4000

10.3% 11.0% 12.2% 12.1% 12.1%10%

20002000

0%0 0%0


Yield on Advances Growth % Yield on Advances %


Yield on Advances Growth % Yield on Advances %


Exhibit 28 : Total Interest Income & NIMExhibit 28 : Total Interest Income & NIMExhibit 28 : Total Interest Income & NIM

40%15000 40%15000

105839069

1058330% 30%

7751906930%

27% 26%30%

10000

6137775127% 26%

20%

10000

48366137

17% 17%20%

4836 17% 17%20%

500017%

10%5000

10%

3% 4% 4% 4% 4%0%0

3% 4% 4% 4% 4%0%0 0%0


Interest Income Growth % NIM %


Interest Income Growth % NIM %


Exhibit 30 : Deposits & Cost of depositedExhibit 30 : Deposits & Cost of depositedExhibit 30 : Deposits & Cost of deposited

7.0%80006515

7.0%8000

56666515

6.5% 6.5% 6.5% 6.5%4863

56666.5% 6.5% 6.5% 6.5%6000 4863

6.5% 6.5% 6.5%

6.0%

6.5%6000

37415.8%

6.0%4000 2902

37415.8%

5.5%

6.0%4000 2902

5.4% 5.5%4000

5.4%

5.0%

5.5%

20005.0%

2000

4.5%

5.0%

0 4.5%0 4.5%0


Deposits Cost of deposits %


Deposits Cost of deposits %


Exhibit 27 : Yield on InvestmentExhibit 27 : Yield on InvestmentExhibit 27 : Yield on Investment

40%30002426

40%3000

21432426

32%1723

1893214332% 30%

14031723

189332% 30%2000

14031723

23%20%

20001403 23%

20%

13% 13%

20%

100010%

13% 13%10%

100010%

6.5% 6.7% 6.5% 6.5% 6.5%10%

6.5% 6.7% 6.5% 6.5% 6.5%

0%0 0%0 0%0


Yield on Investment Growth % Yield on Investment %


Yield on Investment Growth % Yield on Investment %


Exhibit 29 : NII & % to Interest IncomeExhibit 29 : NII & % to Interest IncomeExhibit 29 : NII & % to Interest Income

39%50003978

39%50003978

4000 331538% 38%4000

2803331538%

38% 38%38%

3000

4000

2316280338% 38%

37%3000

18382316

37%2000

3000

183837%

37%2000

36%37%

36%1000

2000

36% 36%1000

35%0

1000

35%0 35%0


Net Interest Income NII % to Interest Income


Net Interest Income NII % to Interest Income


Exhibit 31 : Operating Expenses & % to total incomeExhibit 31 : Operating Expenses & % to total incomeExhibit 31 : Operating Expenses & % to total income

40%150037% 35%

40%150037% 35%

32%330

35%32%

31%28%

30%

59301315

33031%28%

30%1000

5054

59287

301315 28%

20%

1000

5050

54237

28720%

91644

5050

23720%

500

652 731 818 91644

10%500

521 652 731 818 91610%

521 652

0%0 0%0

FY12A FY13A FY14E FY15E FY16EFY12A FY13A FY14E FY15E FY16ESalaries Depreciation Otexpenses Op Exp % to total income

FY12A FY13A FY14E FY15E FY16ESalaries Depreciation Otexpenses Op Exp % to total income


Salaries Depreciation Otexpenses Op Exp % to total income


Exhibit 32 : ProvisionsExhibit 32 : Provisions

800800800

600600

244400

21144187

244400

1619

21111

144187400

3081516

1921

67111

144

200

158 217 260 30812

1516

67111200

90 158 217 260 3081267

090

0


Loan loss provisions Investment provisions Other provisionsLoan loss provisions Investment provisions Other provisions


Loan loss provisions Investment provisions Other provisions


Exhibit 34 : Balance Sheet (Rs In Cr)Exhibit 34 : Balance Sheet (Rs In Cr)Exhibit 34 : Balance Sheet (Rs In Cr)

Y/E 31 March FY9A FY10A FY11AY/E 31 March FY9A FY10A FY11AY/E 31 March FY9A FY10A FY11A

AssetsAssets

Cash and Balance with Reserve Bank 2303 2745 2975Cash and Balance with Reserve Bank 2303 2745 2975Cash and Balance with Reserve Bank 2303 2745 2975

Balance with Banks & Money at 2972 1870 574Balance with Banks & Money at 2972 1870 574

Investments 10736 13956 19696Investments 10736 13956 19696Investments 10736 13956 19696

Advances 20930 23057 26194Advances 20930 23057 26194

Gross Fixed Assets 529 568 794

Advances 20930 23057 26194

Gross Fixed Assets 529 568 794Gross Fixed Assets 529 568 794

Depreciation 333 366 402Depreciation 333 366 402Depreciation 333 366 402

Net Fixed Assets 196 203 392Net Fixed Assets 196 203 392

WIP 3 1 2WIP 3 1 2WIP 3 1 2

Other Assets 552 715 676Other Assets 552 715 676

Total Assets 37693 42547 50508Total Assets 37693 42547 50508Total Assets 37693 42547 50508

Capital and LiabilitiesCapital and Liabilities

Capital 48 48 48Capital 48 48 48Capital 48 48 48

Reserves and Surplus 2574 2962 3430Reserves and Surplus 2574 2962 3430

Deposits 33004 37237 44676

Reserves and Surplus 2574 2962 3430

Deposits 33004 37237 44676Deposits 33004 37237 44676

Borrowings 997 1100 1105Borrowings 997 1100 1105Borrowings 997 1100 1105

Other Liabilities and Provisions 1070 1199 1249Other Liabilities and Provisions 1070 1199 1249

Total Liabilities 37693 42547 50508Total Liabilities 37693 42547 50508Total Liabilities 37693 42547 50508


Exhibit 33 : Net profit & tax %Exhibit 33 : Net profit & tax %

34%2000 34%2000

33% 33%

34%2000

33% 33% 33% 33% 33%1500

33% 33% 33% 33%

32%

33%1500

32%1000

182331%

32%1000

12531496

182331% 31%

1000

8031055

1253149631%

30%

31%

500803

10551253

30%500

803

29%

30%

0 29%0


Net Profit Tax %Net Profit Tax %


Net Profit Tax %



2784 2695 2722 2749 27772784 2695 2722 2749 27772784 2695 2722 2749 2777

1670 2709 2967 3709 37381670 2709 2967 3709 3738

21624 25741 29121 32962 3732921624 25741 29121 32962 3732921624 25741 29121 32962 37329

33077 39200 47432 56445 6660533077 39200 47432 56445 66605

856 934 1009 1090 1177

33077 39200 47432 56445 66605

856 934 1009 1090 1177856 934 1009 1090 1177

440 490 541 595 654440 490 541 595 654440 490 541 595 654

415 444 468 495 523415 444 468 495 523

5 13 13 13 135 13 13 13 135 13 13 13 13

694 941 1159 1350 1569694 941 1159 1350 1569

60270 71743 83883 97723 11255360270 71743 83883 97723 11255360270 71743 83883 97723 112553

48 48 48 48 4848 48 48 48 4848 48 48 48 48

4045 4816 5731 6823 81544045 4816 5731 6823 8154

53347 64221 74817 87162 100236

4045 4816 5731 6823 8154

53347 64221 74817 87162 10023653347 64221 74817 87162 100236

1241 1075 1218 1279 13131241 1075 1218 1279 13131241 1075 1218 1279 1313

1589 1583 2069 2410 28011589 1583 2069 2410 2801

60270 71743 83883 97723 11255360270 71743 83883 97723 11255360270 71743 83883 97723 112553

Exhibit 35 : Loan Split (%)Exhibit 35 : Loan Split (%)

FY13A FY14EFY13A FY14EFY13A FY14E

9%2% Agri10%2% Agri9%

9%

2% Agri10%2% Agri

9%Trade

10%

9% Trade

15%

Trade 9% Trade

15%57%

Pers 15% Pers15%

57%Pers 15%

56%Pers

8%

57%

SME8%

56%

SME8% SME8% SME

Corp CorpCorp Corp


Exhibit 37 : DepositsExhibit 37 : Deposits

30%8000066605

26%

30%80000

56445

6660526%

4743256445

26%

21% 20%60000

3920047432

19%21%

19% 18%20%

60000

330773920019% 19% 18%

20%

40000 3307740000

10%10%2000020000

0%0 0%0


Advances Growth %


Advances Growth %


Exhibit 39 : InvestmentExhibit 39 : Investment

37329 20%4000032962

3732919%

20%40000

2574129121

3296219%

2574129121

13%15%30000

2162425741

13% 13% 13%15%30000

21624

10%

13% 13% 13%

10%20000 10% 10%20000 10%

5%10000 5%10000

0%0 0%0


Investments Growth %Investments Growth %


Exhibit 36 : Investment Split (%)Exhibit 36 : Investment Split (%)

FY13A FY14EFY13A FY14EFY13A FY14E

Gov Sec Gov SecGov Sec Gov Sec

Shares35% Shares 34%Shares35% Shares 34%Shares

Bonds55% Bonds 55%

Bonds55%

0%0%

Bonds 55% JVs

9%0%0% JVs

10%0%0%

JVs

Approved1%

9%0%0% JVs

1%10%

0%0%Approved

1%

Approved1%

10%

OthersApproved Others


Exhibit 38 : AdvancesExhibit 38 : Advances

30%8000066605

26%

30%80000

56445

6660526%

4743256445

26%

21% 20%60000

3920047432

19%21%

19% 18%20%

60000

330773920019% 19% 18%

20%

40000 3307740000

10%10%2000020000

0%0 0%0 0%0


Advances Growth %


Advances Growth %


Exhibit 40 : BorrowingsExhibit 40 : Borrowings

28012410

2801 20%30002410

2801

13%

20%3000

20692410

12% 13%10%

1589 1583

206912% 13%

5%

10%2000 1589 1583 5%

3%2000 5%

3%0%0%

1000-10%

1000

-13%-10%

-13%

-20%0 -20%0 -20%0


Borrowings Growth %


Borrowings Growth %


Exhibit 41 : Ratio Exhibit 41 : Ratio Exhibit 41 : Ratio

Y/E 31 March FY9A FY10A FY11AY/E 31 March FY9A FY10A FY11AY/E 31 March FY9A FY10A FY11A

FinancialFinancial

EPS 85 106 127EPS 85 106 127EPS 85 106 127

DPS 17 22 26DPS 17 22 26

BV/S 541 621 717BV/S 541 621 717BV/S 541 621 717

Valuation & ProfitabilityValuation & Profitability

P/E (X) 6.8 7.3 5.3P/E (X) 6.8 7.3 5.3P/E (X) 6.8 7.3 5.3

P/BV (X) 1.1 1.2 0.9P/BV (X) 1.1 1.2 0.9

NIM (%) 3% 3% 3%

P/BV (X) 1.1 1.2 0.9

NIM (%) 3% 3% 3%NIM (%) 3% 3% 3%

ROE (%) 15.6% 17.0% 17.7%ROE (%) 15.6% 17.0% 17.7%ROE (%) 15.6% 17.0% 17.7%

ROA (%) - 1.49% 1.48%ROA (%) - 1.49% 1.48%

Dividend yield (%) 8.0% 4.1% 4.0%Dividend yield (%) 8.0% 4.1% 4.0%Dividend yield (%) 8.0% 4.1% 4.0%

EfficiencyEfficiency

CASA 38% 41% 40%CASA 38% 41% 40%CASA 38% 41% 40%

CD (%) 63% 62% 59%CD (%) 63% 62% 59%

Slippage (%) 1.9% 0.8% 1.1%Slippage (%) 1.9% 0.8% 1.1%Slippage (%) 1.9% 0.8% 1.1%

Capital adequacy ratio 13.46% 14.81% 13.30%Capital adequacy ratio 13.46% 14.81% 13.30%

Growth

Capital adequacy ratio 13.46% 14.81% 13.30%

GrowthGrowth

Growth in advances (%) - 10% 14%Growth in advances (%) - 10% 14%Growth in advances (%) - 10% 14%

Growth in deposits (%) - 13% 20%Growth in deposits (%) - 13% 20%

Growth in Investment (%) - 30% 41%Growth in Investment (%) - 30% 41%Growth in Investment (%) - 30% 41%

Asset QualityAsset Quality

GNPA (%) 2.6% 2.0% 1.9%GNPA (%) 2.6% 2.0% 1.9%GNPA (%) 2.6% 2.0% 1.9%

NNPA (%) 1.4% 0.3% 0.2%NNPA (%) 1.4% 0.3% 0.2%

GNPA (Rs In Cr) 559 462 519GNPA (Rs In Cr) 559 462 519GNPA (Rs In Cr) 559 462 519

NNPA (Rs In Cr) 288 64 53NNPA (Rs In Cr) 288 64 53

Provisions coverage % 48.6% 86.1% 89.7%

NNPA (Rs In Cr) 288 64 53

Provisions coverage % 48.6% 86.1% 89.7%Provisions coverage % 48.6% 86.1% 89.7%



166 218 258 309 376166 218 258 309 376166 218 258 309 376

33 50 59 71 8633 50 59 71 86

844 1003 1192 1417 1692844 1003 1192 1417 1692844 1003 1192 1417 1692

7.8 5.1 4.3 3.6 2.97.8 5.1 4.3 3.6 2.97.8 5.1 4.3 3.6 2.9

1.5 1.1 0.9 0.8 0.71.5 1.1 0.9 0.8 0.7

3% 4% 4% 4% 4%

1.5 1.1 0.9 0.8 0.7

3% 4% 4% 4% 4%3% 4% 4% 4% 4%

19.6% 21.7% 21.7% 21.8% 22.2%19.6% 21.7% 21.7% 21.8% 22.2%19.6% 21.7% 21.7% 21.8% 22.2%

1.60% 1.76% 1.77% 1.80% 1.89%1.60% 1.76% 1.77% 1.80% 1.89%

5.0% 4.5% 5.4% 6.5% 7.9%5.0% 4.5% 5.4% 6.5% 7.9%5.0% 4.5% 5.4% 6.5% 7.9%

41% 39% 40% 40% 40%41% 39% 40% 40% 40%41% 39% 40% 40% 40%

62% 61% 63% 65% 66%62% 61% 63% 65% 66%

1.0% 1.2% 1.2% 1.0% 0.9%1.0% 1.2% 1.2% 1.0% 0.9%1.0% 1.2% 1.2% 1.0% 0.9%

12.53% 12.34% 13.11% 12.74% 12.61%12.53% 12.34% 13.11% 12.74% 12.61%12.53% 12.34% 13.11% 12.74% 12.61%

26% 19% 21% 19% 18%26% 19% 21% 19% 18%26% 19% 21% 19% 18%

19% 20% 17% 17% 15%19% 20% 17% 17% 15%

10% 19% 13% 13% 13%10% 19% 13% 13% 13%10% 19% 13% 13% 13%

1.5% 1.6% 1.6% 1.5% 1.3%1.5% 1.6% 1.6% 1.5% 1.3%1.5% 1.6% 1.6% 1.5% 1.3%

0.1% 0.1% 0.1% 0.1% 0.1%0.1% 0.1% 0.1% 0.1% 0.1%

517 644 777 844 903517 644 777 844 903517 644 777 844 903

49 55 70 76 8149 55 70 76 81

90.4% 91.4% 91.0% 91.0% 91.0%

49 55 70 76 81

90.4% 91.4% 91.0% 91.0% 91.0%90.4% 91.4% 91.0% 91.0% 91.0%

Exhibit 42: EPSExhibit 42: EPS

376 40%400 376 40%400309

376 40%400

258

309

31% 31% 30%300218

25831% 31% 30%300

166

218

22% 20%200 16619% 19%

22% 20%200 19% 19% 20%200

10%100 10%100

0%0 0%0

FY12A FY13A FY14E FY15E FY16EFY12A FY13A FY14E FY15E FY16EEPS Growth %EPS Growth %


Exhibit 44 : GNPA, NNPA & PCRExhibit 44 : GNPA, NNPA & PCR

92%150091%

92%150091%

91% 91% 91% 91%1000

76 81

91% 91% 91% 91%1000

7076 81

90% 91%

1000

5570

7690% 91%

844 90349

5590%

500

644 777 844 90349

90%500

517 644 777 844 90%517

90%0 90%0


GNPA (Rs In Cr) NNPA (Rs In Cr) Provisions coverage %GNPA (Rs In Cr) NNPA (Rs In Cr) Provisions coverage %


Exhibit 46 : ROE %Exhibit 46 : ROE %

ROE (%)ROE (%)

21.7% 21.7% 21.8%22.2%

21.7% 21.7% 21.8%22.2%

21.8%

19.6%19.6%19.6%



Exhibit 43 : DSP & Dividend yield %Exhibit 43 : DSP & Dividend yield %

60%100 86 60%100

71

86

49%

60%

80

100

597149%80

5059

49%

40%60

80

5059 40%

60

33 29%40

60

33 29%

19% 19% 22% 20%40

19% 19% 22% 20%

20

40

5% 5% 5% 6% 8%20

5% 5% 5% 6% 8%

0%05% 5% 5%

0%0


DPS Growth % Dividend yield (%)DPS Growth % Dividend yield (%)


Exhibit 45 : CASA, CD, Slippage & Capital Adequacy ratioExhibit 45 : CASA, CD, Slippage & Capital Adequacy ratio

15.0%80%62% 61% 63% 65% 66%

13.1%

15.0%80%62% 61% 63% 65% 66%

12.5% 12.3%13.1% 12.7% 12.6%61%

12.5% 12.3%13.1% 12.7% 12.6%

10.0%60%

41% 39% 40% 40% 40%10.0%

60%

41% 39% 40% 40% 40%10.0%

40%40%

5.0%5.0%20%

1.0% 1.2% 1.2% 1.0% 0.9%

20%

1.0% 1.2% 1.2% 1.0% 0.9%0.0%0%

1.0% 1.2% 1.2% 1.0% 0.9%0.0%0%


CASA CD (%) Slippage (%) Capital adequacy ratioCASA CD (%) Slippage (%) Capital adequacy ratio


Exhibit 47 : ROA %Exhibit 47 : ROA %

ROA (%)ROA (%)

1.9%

1.8%

1.9%

1.8% 1.8% 1.8%1.8% 1.8% 1.8%

1.6%1.6%



� Quarterly performance Q1 FY14� Quarterly performance Q1 FY14� Quarterly performance Q1 FY14

Exhibit 48: Quarterly Financials Performance (Rs In Cr)Exhibit 48: Quarterly Financials Performance (Rs In Cr)Exhibit 48: Quarterly Financials Performance (Rs In Cr)

Profit & Loss Account Q1FY13 Q4FY14 Q1FY14 % QOQProfit & Loss Account Q1FY13 Q4FY14 Q1FY14 % QOQ

Interest Earned 1476 1627 1624 -0.2%Interest Earned 1476 1627 1624 -0.2%Interest Earned 1476 1627 1624 -0.2%

Interest Expended 941 993 969 -2.4%Interest Expended 941 993 969 -2.4%

Net Interest Income 536 634 655 3.4%Net Interest Income 536 634 655 3.4%Net Interest Income 536 634 655 3.4%

Other Income 93 209 92 -55.9%Other Income 93 209 92 -55.9%Other Income 93 209 92 -55.9%

Operating Income 629 842 747 -11.3%Operating Income 629 842 747 -11.3%

Operating Expenses 214 304 266 -12.5%Operating Expenses 214 304 266 -12.5%Operating Expenses 214 304 266 -12.5%

Operating Profit 415 538 481 -10.6%Operating Profit 415 538 481 -10.6%Operating Profit 415 538 481 -10.6%

Provisions & Contingencies 50 179 36 -79.7%Provisions & Contingencies 50 179 36 -79.7%

PBT 365 360 445 23.7%PBT 365 360 445 23.7%PBT 365 360 445 23.7%

Tax Provision 119 109 137 25.0%Tax Provision 119 109 137 25.0%

Net Profit 246 250 308 23.1%Net Profit 246 250 308 23.1%Net Profit 246 250 308 23.1%

Share Capital 48 48 48 0.0%Share Capital 48 48 48 0.0%Share Capital 48 48 48 0.0%

EPS in Rs. 51 52 64 23.1%EPS in Rs. 51 52 64 23.1%

Balance Sheet Q1FY13 Q4FY14 Q1FY14 % QOQBalance Sheet Q1FY13 Q4FY14 Q1FY14 % QOQBalance Sheet Q1FY13 Q4FY14 Q1FY14 % QOQ

Capital & Liabilities Capital & Liabilities

Capital 48 - 48Capital 48 - 48Capital 48 - 48

Reserves & Surplus 4291 - 5124Reserves & Surplus 4291 - 5124

Deposits 53117 - 58601Deposits 53117 - 58601Deposits 53117 - 58601

Borrowings 1168 - 758Borrowings 1168 - 758Borrowings 1168 - 758

Other Liabilities & Provisions 1367 - 1216Other Liabilities & Provisions 1367 - 1216

Total 59992 - 65747Total 59992 - 65747Total 59992 - 65747

Assets Assets Assets

Cash & Bank Balance 2357 - 2871Cash & Bank Balance 2357 - 2871

Balance with Banks 1037 - 372Balance with Banks 1037 - 372Balance with Banks 1037 - 372

Investments 22016 - 21734Investments 22016 - 21734

Advances 33225 - 39282Advances 33225 - 39282

Fixed Assets 424 - 475Fixed Assets 424 - 475Fixed Assets 424 - 475

Other Assets 933 - 1013Other Assets 933 - 1013

Total 59992 - 65747Total 59992 - 65747Total 59992 - 65747


% QOQ % SPLY FY12A FY13A % YOY% QOQ % SPLY FY12A FY13A % YOY

0.2% 10.0% 4836 6137 26.9%0.2% 10.0% 4836 6137 26.9%0.2% 10.0% 4836 6137 26.9%

2.4% 3.1% 2997 3821 27.5%2.4% 3.1% 2997 3821 27.5%

3.4% 22.3% 1838 2316 26.0%3.4% 22.3% 1838 2316 26.0%3.4% 22.3% 1838 2316 26.0%

55.9% -1.2% 334 484 44.8%55.9% -1.2% 334 484 44.8%55.9% -1.2% 334 484 44.8%

11.3% 18.8% 2172 2800 28.9%11.3% 18.8% 2172 2800 28.9%

12.5% 24.5% 802 989 23.3%12.5% 24.5% 802 989 23.3%12.5% 24.5% 802 989 23.3%

10.6% 15.9% 1370 1811 32.1%10.6% 15.9% 1370 1811 32.1%10.6% 15.9% 1370 1811 32.1%

79.7% -28.1% 169 284 67.9%79.7% -28.1% 169 284 67.9%

23.7% 21.9% 1201 1527 27.1%23.7% 21.9% 1201 1527 27.1%23.7% 21.9% 1201 1527 27.1%

25.0% 15.3% 398 471 18.5%25.0% 15.3% 398 471 18.5%

23.1% 25.1% 803 1055 31.4%23.1% 25.1% 803 1055 31.4%23.1% 25.1% 803 1055 31.4%

0.0% 0.0% 48 48 0.0%0.0% 0.0% 48 48 0.0%0.0% 0.0% 48 48 0.0%

23.1% 25.1% 166 218 31.4%23.1% 25.1% 166 218 31.4%

% QOQ % SPLY FY12A FY13A % YOY% QOQ % SPLY FY12A FY13A % YOY% QOQ % SPLY FY12A FY13A % YOY

- 0.0% 48 48 0.0%- 0.0% 48 48 0.0%- 0.0% 48 48 0.0%

- 19.4% 4045 4816 19.1%- 19.4% 4045 4816 19.1%

- 10.3% 53347 64221 20.4%- 10.3% 53347 64221 20.4%- 10.3% 53347 64221 20.4%

- -35.2% 1241 1075 -13.4%- -35.2% 1241 1075 -13.4%- -35.2% 1241 1075 -13.4%

- -11.0% 1588 1583 -0.3%- -11.0% 1588 1583 -0.3%

- 9.6% 60269 71743 19.0%- 9.6% 60269 71743 19.0%- 9.6% 60269 71743 19.0%

- 21.8% 2784 2695 -3.2%- 21.8% 2784 2695 -3.2%

- -64.1% 1670 2709 62.2%- -64.1% 1670 2709 62.2%- -64.1% 1670 2709 62.2%

- -1.3% 21624 25741 19.0%- -1.3% 21624 25741 19.0%

- 18.2% 33077 39200 18.5%- 18.2% 33077 39200 18.5%

- 11.9% 420 456 8.5%- 11.9% 420 456 8.5%- 11.9% 420 456 8.5%

- 8.6% 693 941 35.8%- 8.6% 693 941 35.8%

- 9.6% 60269 71743 19.0%- 9.6% 60269 71743 19.0%- 9.6% 60269 71743 19.0%

Exhibit 49: Quarterly Geographical Break-up (Rs In Cr) &(%)Exhibit 49: Quarterly Geographical Break-up (Rs In Cr) &(%)Exhibit 49: Quarterly Geographical Break-up (Rs In Cr) &(%)

Advances sector wise break-upAdvances sector wise break-upAdvances sector wise break-up

CorporateCorporate

SMESMESME

PersonalPersonalPersonal

TradeTrade

AgricultureAgricultureAgriculture

OthersOthersOthers

Advances break-up within J&K StateAdvances break-up within J&K State

CorporateCorporateCorporate

SMESME

PersonalPersonalPersonal

TradeTradeTrade

AgricultureAgriculture

OthersOthersOthers

Advances break-up outside of J&K StateAdvances break-up outside of J&K State

CorporateCorporate

SMESMESME

PersonalPersonal

TradeTradeTrade

AgricultureAgricultureAgriculture

OthersOthers

Other break-up Q1FY14 Within J&K stateOther break-up Q1FY14 Within J&K stateOther break-up Q1FY14 Within J&K state

Deposits 39681Deposits 39681

Gross Advances Within J&K 16940Gross Advances Within J&K 16940Gross Advances Within J&K 16940

Gross Profit (Rs Cr) 362Gross Profit (Rs Cr) 362Gross Profit (Rs Cr) 362

NIMsNIMs

No. of Branches 582No. of Branches 582No. of Branches 582

No. of ATMs 591No. of ATMs 591No. of ATMs 591

balance sheet details 1QFY14 4QFY13balance sheet details 1QFY14 4QFY13

Deposits With in J&K 39681 40867Deposits With in J&K 39681 40867Deposits With in J&K 39681 40867

Rest of India 18920 23354Rest of India 18920 23354

Whole Bank 58601 64221Whole Bank 58601 64221Whole Bank 58601 64221

Gross Advances Within J&K 16940 15839Gross Advances Within J&K 16940 15839Gross Advances Within J&K 16940 15839

Rest of India 23294 24293Rest of India 23294 24293

Whole Bank 40234 40132Whole Bank 40234 40132Whole Bank 40234 40132


1QFY13 4QFY13 1QFY141QFY13 4QFY13 1QFY141QFY13 4QFY13 1QFY14

56% 57% 56%56% 57% 56%

8% 8% 8%8% 8% 8%8% 8% 8%

16% 15% 15%16% 15% 15%16% 15% 15%

9% 9% 9%9% 9% 9%

10% 9% 10%10% 9% 10%10% 9% 10%

1% 2% 2%1% 2% 2%1% 2% 2%

1QFY13 4QFY13 1QFY141QFY13 4QFY13 1QFY14

18% 19% 20%18% 19% 20%18% 19% 20%

16% 15% 15%16% 15% 15%

35% 32% 32%35% 32% 32%35% 32% 32%

16% 16% 15%16% 16% 15%16% 16% 15%

15% 16% 17%15% 16% 17%

1% 2% 1%1% 2% 1%1% 2% 1%

1QFY13 4QFY13 1QFY141QFY13 4QFY13 1QFY14

81% 82% 83%81% 82% 83%

3% 3% 3%3% 3% 3%3% 3% 3%

4% 3% 3%4% 3% 3%

4% 5% 5%4% 5% 5%4% 5% 5%

7% 5% 5%7% 5% 5%7% 5% 5%

1% 2% 1%1% 2% 1%

Within J&K state Rest of IndiaWithin J&K state Rest of IndiaWithin J&K state Rest of India

39681 68% 18920 32%39681 68% 18920 32%

16940 42% 23294 58%16940 42% 23294 58%16940 42% 23294 58%

362 75% 119 25%362 75% 119 25%362 75% 119 25%

- 6% - 3%- 6% - 3%

582 84% 113 16%582 84% 113 16%582 84% 113 16%

591 89% 70 11%591 89% 70 11%591 89% 70 11%

4QFY13 1QFY13 % QOQ % SPLY4QFY13 1QFY13 % QOQ % SPLY

40867 34920 13.6 -2.940867 34920 13.6 -2.940867 34920 13.6 -2.9

23354 18197 4 -1923354 18197 4 -19

64221 53117 10.3 -8.864221 53117 10.3 -8.864221 53117 10.3 -8.8

15839 13525 25.2 715839 13525 25.2 715839 13525 25.2 7

24293 20544 13.4 -4.124293 20544 13.4 -4.1

40132 34069 18.1 0.340132 34069 18.1 0.340132 34069 18.1 0.3

Exhibit 50: Quarterly Non-Interest Income Break-Up (Rs In Cr)Exhibit 50: Quarterly Non-Interest Income Break-Up (Rs In Cr)Exhibit 50: Quarterly Non-Interest Income Break-Up (Rs In Cr)

Y/E 31 March 1QFY13 4QFY13Y/E 31 March 1QFY13 4QFY13

Commission/Exchange 44Commission/Exchange 44Commission/Exchange 44

Insurance commission 7Insurance commission 7Insurance commission 7

Treasury/Trading income 20Treasury/Trading income 20

Miscellaneous income 22Miscellaneous income 22Miscellaneous income 22

Total 93 209Total 93 209Total 93 209


Exhibit 51: Quarterly Assets quality (Rs In Cr)Exhibit 51: Quarterly Assets quality (Rs In Cr)

Y/E 31 March 1QFY13 4QFY13Y/E 31 March 1QFY13 4QFY13Y/E 31 March 1QFY13 4QFY13

NIMs 3.80 3.90NIMs 3.80 3.90

Deposit composition 1QFY13 4QFY13Deposit composition 1QFY13 4QFY13Deposit composition 1QFY13 4QFY13

Current account 4480 6402Current account 4480 6402Current account 4480 6402

Savings account 16081 18790Savings account 16081 18790

Total CASA 20560 25191Total CASA 20560 25191Total CASA 20560 25191

CASA ratio (%) 39CASA ratio (%) 39CASA ratio (%) 39

Term deposits 32557 39030Term deposits 32557 39030

Total deposits 53117 64221Total deposits 53117 64221Total deposits 53117 64221

NPA 1QFY13 4QFY13NPA 1QFY13 4QFY13NPA 1QFY13 4QFY13

GNPA 541 644GNPA 541 644

GNPA (%) 1.60 1.60GNPA (%) 1.60 1.60GNPA (%) 1.60 1.60

NNPA 48NNPA 48

NNPA (%) 0.10 0.10NNPA (%) 0.10 0.10

PCR (%) 94PCR (%) 94PCR (%) 94


4QFY13 1QFY14 % QOQ SPLY4QFY13 1QFY14 % QOQ SPLY

44 41 -6.2 -6.144 41 -6.2 -6.144 41 -6.2 -6.1

16 8 10.3 -4916 8 10.3 -4916 8 10.3 -49

84 19 -3.6 -76.984 19 -3.6 -76.9

65 24 6.8 -63.665 24 6.8 -63.665 24 6.8 -63.6

209 92 -1.2 -55.8209 92 -1.2 -55.8209 92 -1.2 -55.8

4QFY13 1QFY14 % QOQ % SPLY4QFY13 1QFY14 % QOQ % SPLY4QFY13 1QFY14 % QOQ % SPLY

3.90 4.20 7.7% 10.53%3.90 4.20 7.7% 10.53%

4QFY13 1QFY14 % YOY % SPLY4QFY13 1QFY14 % YOY % SPLY4QFY13 1QFY14 % YOY % SPLY

6402 5134 -19.8% 14.60%6402 5134 -19.8% 14.60%6402 5134 -19.8% 14.60%

18790 18445 -1.8% 14.70%18790 18445 -1.8% 14.70%

25191 23579 -6.4% 14.68%25191 23579 -6.4% 14.68%25191 23579 -6.4% 14.68%

39 4039 4039 40

39030 35022 -10.3% 7.57%39030 35022 -10.3% 7.57%

64221 58601 -8.8% 10.32%64221 58601 -8.8% 10.32%64221 58601 -8.8% 10.32%

4QFY13 1QFY14 % QOQ % SPLY4QFY13 1QFY14 % QOQ % SPLY4QFY13 1QFY14 % QOQ % SPLY

644 665 3.3% 22.9%644 665 3.3% 22.9%

1.60 1.70 - -1.60 1.70 - -1.60 1.70 - -

55 56 1.8% 16.7%55 56 1.8% 16.7%

0.10 0.10 - -0.10 0.10 - -

94 94 - -94 94 - -94 94 - -

�Net Profit up 25.13 % at Rs 307.92 Cr for the quarter ended Jun,�Net Profit up 25.13 % at Rs 307.92 Cr for the quarter ended Jun,�Net Profit up 25.13 % at Rs 307.92 Cr for the quarter ended Jun,

Rs 246.09 Cr earned during the quarter ended Jun, 2012.Rs 246.09 Cr earned during the quarter ended Jun, 2012.

�EPS for the quarter ended Jun, 2013 at Rs 63.52 up 25 % from�EPS for the quarter ended Jun, 2013 at Rs 63.52 up 25 % from�EPS for the quarter ended Jun, 2013 at Rs 63.52 up 25 % from

the corresponding quarter of previous financial year.the corresponding quarter of previous financial year.the corresponding quarter of previous financial year.

�NIMs (Net Interest Margins) Ratio for the quarter ended�NIMs (Net Interest Margins) Ratio for the quarter ended�NIMs (Net Interest Margins) Ratio for the quarter ended

(annualized) vis-à-vis 3.84 % for the corresponding quarter of previous(annualized) vis-à-vis 3.84 % for the corresponding quarter of previous(annualized) vis-à-vis 3.84 % for the corresponding quarter of previous

Post tax Return on Assets at 1.89 % (annualized) for the�Post tax Return on Assets at 1.89 % (annualized) for the�Post tax Return on Assets at 1.89 % (annualized) for the

compared to 1.68 % for the corresponding period of the previouscompared to 1.68 % for the corresponding period of the previouscompared to 1.68 % for the corresponding period of the previous

�Post Tax Return on Average Net-Worth (annualized) for the quarter�Post Tax Return on Average Net-Worth (annualized) for the quarter�Post Tax Return on Average Net-Worth (annualized) for the quarter

24.54 % compared to 23.35 % recorded for the corresponding quarter24.54 % compared to 23.35 % recorded for the corresponding quarter24.54 % compared to 23.35 % recorded for the corresponding quarter

�The Yield on Advances (annualized) for the quarter ended Jun,�The Yield on Advances (annualized) for the quarter ended Jun,�The Yield on Advances (annualized) for the quarter ended Jun,

as compared to 12.54 % for the quarter ended Jun, 2012.as compared to 12.54 % for the quarter ended Jun, 2012.

�Business per Employee and Net profit per Employee (annualized)�Business per Employee and Net profit per Employee (annualized)�Business per Employee and Net profit per Employee (annualized)

and Rs 12.99 lakh respectively for the quarter ended Jun, 2013and Rs 12.99 lakh respectively for the quarter ended Jun, 2013and Rs 12.99 lakh respectively for the quarter ended Jun, 2013

and Rs 10.65 lakh pertaining to the quarter ended Jun, 2012.and Rs 10.65 lakh pertaining to the quarter ended Jun, 2012.and Rs 10.65 lakh pertaining to the quarter ended Jun, 2012.

�Gross and Net NPA’s as percentages to Gross and Net Advances�Gross and Net NPA’s as percentages to Gross and Net Advances�Gross and Net NPA’s as percentages to Gross and Net Advances

% and 0.14 % respectively compared to 1.60 % and 0.14 % a year% and 0.14 % respectively compared to 1.60 % and 0.14 % a year% and 0.14 % respectively compared to 1.60 % and 0.14 % a year

�NPA Coverage Ratio as on Jun, 2013 at 94.01 % well above RBI�NPA Coverage Ratio as on Jun, 2013 at 94.01 % well above RBI�NPA Coverage Ratio as on Jun, 2013 at 94.01 % well above RBI

%.%.%.

�Cost to Income Ratio stood at 35.62 % for the quarter ended�Cost to Income Ratio stood at 35.62 % for the quarter ended�Cost to Income Ratio stood at 35.62 % for the quarter ended

34.00 % for the quarter ended Jun, 2012.34.00 % for the quarter ended Jun, 2012.34.00 % for the quarter ended Jun, 2012.

Jun, 2013 as compared toJun, 2013 as compared toJun, 2013 as compared to

from Rs 50.77 earned duringfrom Rs 50.77 earned duringfrom Rs 50.77 earned during

ended Jun, 2013 at 4.15 %ended Jun, 2013 at 4.15 %ended Jun, 2013 at 4.15 %

previous financial year.previous financial year.previous financial year.

quarter ended Jun, 2013quarter ended Jun, 2013quarter ended Jun, 2013

previous financial yearprevious financial yearprevious financial year

quarter ended Jun, 2013 atquarter ended Jun, 2013 atquarter ended Jun, 2013 at

quarter a year ago.quarter a year ago.quarter a year ago.

Jun, 2013 stood at 12.16 %Jun, 2013 stood at 12.16 %Jun, 2013 stood at 12.16 %

(annualized) were at Rs 10.32 cr(annualized) were at Rs 10.32 cr(annualized) were at Rs 10.32 cr

2013 compared to Rs 9.34 cr2013 compared to Rs 9.34 cr2013 compared to Rs 9.34 cr

Advances as on Jun, 2013 at 1.67Advances as on Jun, 2013 at 1.67Advances as on Jun, 2013 at 1.67

year ago.year ago.year ago.

RBI stipulated norm of 70RBI stipulated norm of 70RBI stipulated norm of 70

Jun, 2013 as compared toJun, 2013 as compared toJun, 2013 as compared to

�SWOT analysis�SWOT analysis�SWOT analysis

Exhibit 52: SWOT AnalysisExhibit 52: SWOT AnalysisExhibit 52: SWOT Analysis

StrengthStrengthStrength

�Well presence in remote areas�Well presence in remote areas�Well presence in remote areas

�Increasing tourism in J&K State enhancing the foreign�Increasing tourism in J&K State enhancing the foreign�Increasing tourism in J&K State enhancing the foreign

exchange incomeexchange incomeexchange income

�Dominating market share in J&K State�Dominating market share in J&K StateDominating market share in J&K State

�Lower penetration of other banks in J&K state�Lower penetration of other banks in J&K state

�Robust credit management framework�Robust credit management framework�Robust credit management framework

WeaknessWeaknessWeakness

�Higher dependency on J&K state�Higher dependency on J&K state�Higher dependency on J&K state

�Losing waste opportunities in rest of India�Losing waste opportunities in rest of India�Losing waste opportunities in rest of India

�Uncertainties in agriculture sector may be impact on�Uncertainties in agriculture sector may be impact on�Uncertainties in agriculture sector may be impact on

returnsreturnsreturns


OpportunitiesOpportunitiesOpportunities

�Huge opportunities outside J&K state�Huge opportunities outside J&K state�Huge opportunities outside J&K state

foreign �Lower penetration of other banks help to maintain theforeign �Lower penetration of other banks help to maintain theforeign �Lower penetration of other banks help to maintain the

market dominancemarket dominancemarket dominance

�Increasing tourism in J&K State boost the top and bottom�Increasing tourism in J&K State boost the top and bottomIncreasing tourism in J&K State boost the top and bottom

numbersnumbers

ThreatThreatThreat

�In future may be other bank inter in J&K state�In future may be other bank inter in J&K state�In future may be other bank inter in J&K state

�Political uncertainties�Political uncertainties�Political uncertainties

on �Landslides and strikes may hamper the transportation ofon �Landslides and strikes may hamper the transportation ofon �Landslides and strikes may hamper the transportation of

agriculture product, leading to credit default riskagriculture product, leading to credit default riskagriculture product, leading to credit default risk

�Valuation of J&K Bank Ltd.�Valuation of J&K Bank Ltd.�Valuation of J&K Bank Ltd.

Exhibit 53: J&K Bank Ltd. Valuation (Rs In Cr)Exhibit 53: J&K Bank Ltd. Valuation (Rs In Cr)

P&L A/C FY13A FY14E FY15E FY16EP&L A/C FY13A FY14E FY15E FY16E

Interest Income 6137 7751 9069 10583Interest Income 6137 7751 9069 10583Interest Income 6137 7751 9069 10583

% growth 27% 26% 17% 17%% growth 27% 26% 17% 17%

Interest Expenditure 3821 4948 5753 6605Interest Expenditure 3821 4948 5753 6605

Net Interest Income 2316 2803 3315 3978Net Interest Income 2316 2803 3315 3978Net Interest Income 2316 2803 3315 3978

% net interest margin 4% 4% 4% 4%% net interest margin 4% 4% 4% 4%

Non-Interest Income 484 526 571 621Non-Interest Income 484 526 571 621Non-Interest Income 484 526 571 621

% growth 45% 9% 9% 9%% growth 45% 9% 9% 9%

Total Income 2800 3329 3886 4599Total Income 2800 3329 3886 4599

Operating Expenses 939 1031 1133 1246Operating Expenses 939 1031 1133 1246Operating Expenses 939 1031 1133 1246

Depreciation 50 50 54 59Depreciation 50 50 54 59

% operating profit margin 30% 29% 30% 31%% operating profit margin 30% 29% 30% 31%% operating profit margin 30% 29% 30% 31%

Pre Provision Profits 1811 2247 2699 3294Pre Provision Profits 1811 2247 2699 3294

Provisions 284 377 466 572Provisions 284 377 466 572

Net Profit before tax 1527 1870 2233 2722Net Profit before tax 1527 1870 2233 2722Net Profit before tax 1527 1870 2233 2722

Income tax 471 617 737 898Income tax 471 617 737 898

Net Profit After Tax 1055 1253 1496 1823Net Profit After Tax 1055 1253 1496 1823Net Profit After Tax 1055 1253 1496 1823

% net profit margin 17% 16% 16% 17%% net profit margin 17% 16% 16% 17%

Balance Sheet FY13A FY14E FY15E FY16EBalance Sheet FY13A FY14E FY15E FY16E

AssetsAssetsAssets

Cash & Balance 5404 5690 6459 6515Cash & Balance 5404 5690 6459 6515

Investments 25741 29121 32962 37329Investments 25741 29121 32962 37329

% growth 19% 13% 13% 13%% growth 19% 13% 13% 13%% growth 19% 13% 13% 13%

Advances 39200 47432 56445 66605Advances 39200 47432 56445 66605


Fixed Assets 456 481 508 536Fixed Assets 456 481 508 536

Other Assets 941 1159 1350 1569Other Assets 941 1159 1350 1569

Total Assets 71743 83883 97723 112553Total Assets 71743 83883 97723 112553Total Assets 71743 83883 97723 112553

Capital and LiabilitiesCapital and Liabilities

Capital 48 48 48 48Capital 48 48 48 48Capital 48 48 48 48

Reserves and Surplus 4816 5731 6823 8154Reserves and Surplus 4816 5731 6823 8154

Deposits 64221 74817 87162 100236Deposits 64221 74817 87162 100236


Borrowings 1075 1218 1279 1313Borrowings 1075 1218 1279 1313

% growth -13% 13% 5% 3%% growth -13% 13% 5% 3%% growth -13% 13% 5% 3%

Liabilities and Provisions 1583 2069 2410 2801Liabilities and Provisions 1583 2069 2410 2801

Total Liabilities 71743 83883 97723 112553Total Liabilities 71743 83883 97723 112553


Cash Flow FY13A FY14E FY15E FY16ECash Flow FY13A FY14E FY15E FY16E

NP before tax 1527 1870 2233 2722NP before tax 1527 1870 2233 2722NP before tax 1527 1870 2233 2722

Total Adjustments 388 482 574 685Total Adjustments 388 482 574 685

OP before WC Changes -97 -1091 -638 -1638OP before WC Changes -97 -1091 -638 -1638

Direct Taxes Paid -534 -617 -737 -898Direct Taxes Paid -534 -617 -737 -898Direct Taxes Paid -534 -617 -737 -898

CF From Op Activities 1284 -948 1331 833CF From Op Activities 1284 -948 1331 833

CF From Inv Activities -91 -17 -265 -341CF From Inv Activities -91 -17 -265 -341CF From Inv Activities -91 -17 -265 -341

CF From Fin Activities -243 -342 -398 -473CF From Fin Activities -243 -342 -398 -473

Net Inc / Dec in Cash 950 285 769 56Net Inc / Dec in Cash 950 285 769 56

Cash at Beginning of FY 4454 5404 5690 6459Cash at Beginning of FY 4454 5404 5690 6459Cash at Beginning of FY 4454 5404 5690 6459

Cash at End of FY 5404 5690 6459 6515Cash at End of FY 5404 5690 6459 6515

Ratio FY13A FY14E FY15E FY16ERatio FY13A FY14E FY15E FY16E

EPS 218 258 309 376EPS 218 258 309 376EPS 218 258 309 376

DPS 50 59 71 86DPS 50 59 71 86

BV/S 1003 1192 1417 1692BV/S 1003 1192 1417 1692BV/S 1003 1192 1417 1692

P/E (X) 5.05 4.26 3.56 2.93P/E (X) 5.05 4.26 3.56 2.93

P/BV (X) 1.10 0.92 0.78 0.65P/BV (X) 1.10 0.92 0.78 0.65

ROE (%) 21.7% 21.7% 21.8% 22.2%ROE (%) 21.7% 21.7% 21.8% 22.2%ROE (%) 21.7% 21.7% 21.8% 22.2%

ROA (%) 1.5% 1.5% 1.5% 3.5%ROA (%) 1.5% 1.5% 1.5% 3.5%

GNPA (Rs In Cr) 644 777 844 903GNPA (Rs In Cr) 644 777 844 903GNPA (Rs In Cr) 644 777 844 903

NNPA (Rs In Cr) 55 70 76 81NNPA (Rs In Cr) 55 70 76 81

ValuationValuation

Risk Free Rate 7.0%Risk Free Rate 7.0%Risk Free Rate 7.0%

Market return 13.8%Market return 13.8%

Market Premium 6.8%Market Premium 6.8%

J&K Beta 0.32J&K Beta 0.32J&K Beta 0.32

Industry Beta 1.50Industry Beta 1.50

Ke 17.3%Ke 17.3%Ke 17.3%

ROE 21.7%ROE 21.7%

G 5.0%G 5.0%

FY14 P/BV 1.35FY14 P/BV 1.35FY14 P/BV 1.35

FY14 BV/Sh 1192FY14 BV/Sh 1192

FY14 NPA/Sh 160FY14 NPA/Sh 160FY14 NPA/Sh 160

Target Price - FY14E 1453Target Price - FY14E 1453

Up Side 32.12%Up Side 32.12%

ValuationsValuationsValuations

We applied the Gordon growth model to valuating the JammuWe applied the Gordon growth model to valuating the JammuWe applied the Gordon growth model to valuating the Jammu

our valuation model the cost of equity (Ke) of J&K bank is 17.our valuation model the cost of equity (Ke) of J&K bank is 17.our valuation model the cost of equity (Ke) of J&K bank is 17.

consider is 5%, estimated book value per share for FY14E is stoodconsider is 5%, estimated book value per share for FY14E is stoodconsider is 5%, estimated book value per share for FY14E is stood

21.78%, respectively. On the above estimations we found the fair21.78%, respectively. On the above estimations we found the fair21.78%, respectively. On the above estimations we found the fair

1.33 (- 160 NPA per share) which delivers the target price of Rs1.33 (- 160 NPA per share) which delivers the target price of Rs

of 12 to 15months, with the upside potential of 32.12%.of 12 to 15months, with the upside potential of 32.12%.of 12 to 15months, with the upside potential of 32.12%.

Exhibit 54: Price SensitivityExhibit 54: Price Sensitivity

P/BV MultipleP/BV Multiple

1453 1.20 1.25 1.30 1.351453 1.20 1.25 1.30 1.35

1117 1184 1240 1296 13521117 1184 1240 1296 1352

BV

/ P

er

Sh

are 1142 1214 1271 1329 1386

BV

/ P

er

Sh

are 1142 1214 1271 1329 1386

1167 1244 1303 1361 1420

BV

/ P

er

Sh

are

1167 1244 1303 1361 1420

BV

/ P

er

Sh

are

1167 1244 1303 1361 1420

1192 1275 1334 1394 1453

BV

/ P

er

Sh

are

1192 1275 1334 1394 1453

1217 1305 1366 1426 1487

BV

/ P

er

Sh

are

1217 1305 1366 1426 1487

BV

/ P

er

Sh

are

1217 1305 1366 1426 1487

1242 1335 1397 1459 1521BV

/ P

er

Sh

are

1242 1335 1397 1459 1521

1267 1365 1428 1492 15551267 1365 1428 1492 15551267 1365 1428 1492 1555


and Kashmir bank. As perand Kashmir bank. As perand Kashmir bank. As per

.57%, the growth rate we.57%, the growth rate we.57%, the growth rate we

stood at rs1193 and ROE isstood at rs1193 and ROE isstood at rs1193 and ROE is

fair book value multiple offair book value multiple offair book value multiple of

1453 for the time horizon1453 for the time horizon

1.40 1.45 1.501.40 1.45 1.50

1408 1463 15191408 1463 1519

1443 1500 15571443 1500 1557

1478 1536 15951478 1536 15951478 1536 1595

1513 1573 16321513 1573 1632

1548 1609 16701548 1609 16701548 1609 1670

1583 1645 17071583 1645 1707

1618 1682 17451618 1682 17451618 1682 1745

Investment Criteria & Disclaimer Investment Criteria & Disclaimer Investment Criteria & Disclaimer

Rating Low Risk Rating Low Risk Rating Low Risk

Buy Over 15 %Buy Over 15 %

Accumulate 10 % to 15 %Accumulate 10 % to 15 %Accumulate 10 % to 15 %

Hold 0% to 10 %Hold 0% to 10 %

Sell Negative Returns Negative ReturnsSell Negative Returns Negative ReturnsSell Negative Returns Negative Returns

Risk Description Risk Description

Low Risk High predictabilityLow Risk High predictabilityLow Risk High predictability

Medium Risk Moderate predictabilityMedium Risk Moderate predictability

High Risk Low predictabilityHigh Risk Low predictabilityHigh Risk Low predictability

Analyst DetailsAnalyst DetailsAnalyst Details

Pushkaraj JamsandekarPushkaraj JamsandekarPushkaraj Jamsandekar

MMS - FinanceMMS - Finance

Contact - +09869139507 Contact - +09869139507 Contact - +09869139507

Email ID - [email protected] ID - [email protected]

Perception Research & AdvisoryPerception Research & AdvisoryPerception Research & Advisory

Disclaimer Disclaimer Disclaimer

This document is for private circulation and information purposes only andThis document is for private circulation and information purposes only andThis document is for private circulation and information purposes only and

taxation or legal advice. Investors should seek financial advice regarding thetaxation or legal advice. Investors should seek financial advice regarding the

investment strategies discussed or recommended in this publication andinvestment strategies discussed or recommended in this publication andinvestment strategies discussed or recommended in this publication and

future prospects may not be realized. In no circumstances it be used or consideredfuture prospects may not be realized. In no circumstances it be used or considered

offer to buy or sell the securities mentioned in it. We and our affiliates, officers,offer to buy or sell the securities mentioned in it. We and our affiliates, officers,offer to buy or sell the securities mentioned in it. We and our affiliates, officers,

involved in the preparation or issuance of this material may: (a) from timeinvolved in the preparation or issuance of this material may: (a) from time

or sell the securities thereof, of company(ies) mentioned herein or (b) beor sell the securities thereof, of company(ies) mentioned herein or (b) beor sell the securities thereof, of company(ies) mentioned herein or (b) be

securities and earn brokerage or other compensation or act as a marketsecurities and earn brokerage or other compensation or act as a market

company(ies) dis-cussed herein or act as an advisor or lender or borrower to

securities and earn brokerage or other compensation or act as a market

company(ies) dis-cussed herein or act as an advisor or lender or borrower tocompany(ies) dis-cussed herein or act as an advisor or lender or borrower to

of interest with respect to any recommendation and re-lated informationof interest with respect to any recommendation and re-lated informationof interest with respect to any recommendation and re-lated information

publication may have been taken from trade and statistical services and otherpublication may have been taken from trade and statistical services and other

does not guarantee that such information is accurate or complete and it shoulddoes not guarantee that such information is accurate or complete and it shoulddoes not guarantee that such information is accurate or complete and it should

pressed reflects judgments at this date and are subject to change withoutpressed reflects judgments at this date and are subject to change without

investment can be substantial. You should carefully consider whether tradinginvestment can be substantial. You should carefully consider whether tradinginvestment can be substantial. You should carefully consider whether trading

your experience, objectives, financial resources and other relevant circumstancesyour experience, objectives, financial resources and other relevant circumstances

Perception Research & AdvisoryPerception Research & Advisory

Medium Risk High RiskMedium Risk High RiskMedium Risk High Risk

Over 20% Over 25%Over 20% Over 25%

15% to 20% 20% to 25%15% to 20% 20% to 25%15% to 20% 20% to 25%

0% to 15% 0% to 20%0% to 15% 0% to 20%

Negative Returns Negative ReturnsNegative Returns Negative ReturnsNegative Returns Negative Returns

Predictability Price VolatilityPredictability Price Volatility

High predictability Low volatilityHigh predictability Low volatilityHigh predictability Low volatility

Moderate predictability Average volatilityModerate predictability Average volatility

Low predictability High volatilityLow predictability High volatilityLow predictability High volatility

and should not be regarded as an investment,and should not be regarded as an investment,and should not be regarded as an investment,

the appropriateness of investing in any securities orthe appropriateness of investing in any securities or

and should under-stand that statements regardingand should under-stand that statements regardingand should under-stand that statements regarding

considered as an offer to sale or a solicitation of anyconsidered as an offer to sale or a solicitation of any

officers, directors and employees including personsofficers, directors and employees including personsofficers, directors and employees including persons

to time, have long or short positions in, and buyto time, have long or short positions in, and buy

engaged in any other transaction involving suchengaged in any other transaction involving suchengaged in any other transaction involving such

market maker in the financial instruments of themarket maker in the financial instruments of the

to such company or have other potential conflict

market maker in the financial instruments of the

to such company or have other potential conflictto such company or have other potential conflict

and opinions. The information contained in thisand opinions. The information contained in thisand opinions. The information contained in this

other sources, which we believe are reliable. Weother sources, which we believe are reliable. We

should not be relied upon as such. Any opinion ex-should not be relied upon as such. Any opinion ex-should not be relied upon as such. Any opinion ex-

without notice. Caution: Risk of loss in trading &without notice. Caution: Risk of loss in trading &

trading & investment is appropriate for you in light oftrading & investment is appropriate for you in light oftrading & investment is appropriate for you in light of

circumstances.circumstances.

j&k bank ltd

Documents