The Biz Reporter
Srinagar, Oct 5 ; Jammu & Kashmir Bank (J&K Bank), a prominent public sector bank, witnessed a significant surge in its stock price by 3.79 percent during early trade on October 5, 2023. The boost in share value followed the bank’s release of its financial results for the second quarter of the fiscal year 2023-24 (FY24).
The bank reported a remarkable 12.03 percent year-on-year (YoY) growth in its total business, reaching a substantial Rs 2.18 lakh crore. This robust performance showcased the bank’s resilience and efficiency in a dynamic financial landscape.
Total deposits in J&K Bank also displayed a healthy increase, growing by 9.4 percent YoY to reach Rs 1.27 lakh crore. The bank’s CASA deposits (Current Account and Savings Account) reached Rs 64,067.68 crore, marking a 1.24 percent increase compared to the second quarter of the previous fiscal year.
One of the most noteworthy achievements for J&K Bank was its impressive 15.88 percent YoY growth in gross advances, which amounted to Rs 91,679.87 crore for the second quarter of FY24. This was a significant uptick from Rs 79,113.07 crore reported for the same quarter in the previous fiscal year.
However, the bank experienced a slight decline in gross investment, which decreased by 7.47 percent YoY to Rs 33,576.9 crore.
Jammu & Kashmir Bank’s shares have been on an incredible upward trajectory over the past year, with a staggering growth rate of 279.2 percent, outperforming the Nifty index, which recorded a comparatively modest 12.5 percent growth over the same period. Over the past six months alone, the bank’s stock has soared by 111.29 percent, significantly increasing investors’ wealth.
Analyzing the stock’s current standing, its RSI (Relative Strength Index) is reported at 62.1, indicating that the stock is currently neither in the oversold nor overbought territory. However, the stock exhibits a relatively higher level of volatility, as evidenced by its one-year beta of 1.68. Furthermore, the stock is currently positioned above all crucial moving averages, suggesting strong investor confidence.
Based on shareholding data from the June quarter, the promoters have consistently maintained a substantial 63.4 percent interest in the public sector bank. Foreign Institutional Investors (FIIs) hold a 2.2 percent stake, while Domestic Institutional Investors (DIIs) own 2.4 percent. The general public holds a significant 32 percent stake in Jammu & Kashmir Bank, reflecting widespread interest and participation in the bank’s performance and growth.
J&K Bank’s remarkable financial results and robust performance continue to instill confidence among investors, positioning the bank as a noteworthy player in India’s banking sector.