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J&K Bank raises capital to Rs 1000 crore

Srinagar: After maintaining that the system is “fairly cleansed now”, J&K Bank has raised the capital subject to a maximum of Rs 1000 crore.

The Business Standard reported on Monday that the Board of Directors (BoD) of Jammu and Kashmir Bank at its meeting held on 13 May 2017 approved raising of Capital subject to a maximum of Rs 1000 crore and Regulatory approvals, wherever, required including Shareholding approval for the same by way of Special Resolution at the ensuing AGM of the Bank.

In its statement released on May 13, 2016, the J&K Bank had declared its audited financials for the quarter and financial year ended March 2017 by posting an operating profit of Rs 276.37 Cr for the quarter and Rs 1294.34 Cr for the financial year.

The bank, however, ended the year with a net loss of Rs 1632.28 Cr primarily due to provisions made against bad debts to the tune of Rs. 2115.93 Cr.

“The system is fairly cleansed now and with the levels of provisions made during the year, balance sheet expansion in a sustainable manner with decent return on the equity will be assured from FY 2018 and onwards,” CEO and chairman, J&K Bank, Parvez Ahmad had said.

More so, the CEO clarified that the requirement of provisions for incremental NPAs recognized during the year would be substantially less than what the Bank actually provided for during the year.

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