J&K Bank to raise up to Rs 2,000 cr in FY23; sees increased economic activity in J-K, Ladakh
NEW DELHI: Jammu & Kashmir Bank is looking to raise up to Rs 2,000 crore this fiscal through a mix of debt and equity as it sees loan demand picking up due to increased economic activity.
The union territories of Jammu and Kashmir and Ladakh are witnessing “unprecedented growth” with over 1 crore tourists visiting the region during January-July, J&K Bank Managing Director and Chief Executive Officer Baldev Prakash said in an earnings call.
The large tourist influx is leading to revival of tourism and related sectors such as hotels, restaurants, taxis, shikara, house-boats and handicrafts, resulting in employment generation. Infrastructure building such as road, rail links and tunnels is also catalysing economic development in the UTs, Prakash said.
Citing central government’s industrial package of Rs 28,400 crore, besides the UTs’ industrial policy, he said the government has received investment proposals of over Rs 50,000 crore from various quarters.
“Out of these proposals, the government has already allotted industrial land for projects worth Rs 36,000 crore. The industrial development is expected to create 4 lakh employment opportunities…,” he added.
Besides, favourable weather condition is expected to boost commercial horticulture this year, Prakash said, adding the anticipated surge in economic development in the bank’s backyard is bound to create a fast-moving cycle of investment, finance and savings.
In the fiscal ended March 2022, the lender augmented its capital by raising fresh capital of Rs 1,100 crore.
“This year also we are planning to raise up to Rs 2,000 crores in tranches — tier 2 of Rs 1,500 crore and CET-1 of Rs 500 crore. The T2 issuance may be in the 2nd and 3rd quarter, while the CET-1 raise may happen in the latter part of the FY. Internal accruals are also expected to be at a higher level this fiscal,” he added.
Giving guidance on its gross non-performing assets (NPAs) ratio for 2022-23, he said the bank sees it falling to 6 per cent by the end of March 2023, as against 9.09 per cent by end of June 2022.
J&K Bank registered a 59 per cent jump in its net profit at Rs 166 crore for the quarter ended June of the current fiscal, as against Rs 104.32 crore in the year-ago quarter.–(PTI)