Srinagar, Jan 4 ; Jammu and Kashmir Bank witnessed a double-digit growth in its total business for the third quarter of the current financial year, reflecting steady expansion in deposits and advances despite moderation in low-cost deposits.
In a quarterly business update, the bank said its total business increased 13.34 per cent year-on-year to ?2.72 lakh crore at the end of the December quarter, compared with the corresponding period last year.
Total deposits grew 10.58 per cent year-on-year to ?1.55 lakh crore, indicating continued deposit mobilisation during the quarter. The bank said the growth was supported by both retail and institutional deposits, though the pace of expansion in low-cost deposits remained modest.
Current account savings account (CASA) deposits stood at ?68,736 crore at the end of the third quarter, registering a marginal increase of 1.25 per cent from a year earlier.
As a result, the CASA ratio declined to 44.10 per cent, compared with 48.17 per cent in the same quarter of the previous year.
The decline in the CASA ratio points to a higher share of term deposits in the overall deposit mix, a trend seen across the banking sector amid competition for funds and relatively higher interest rates on fixed deposits.
Despite the moderation in CASA growth, the bank said the overall rise in business highlighted resilience in its core operations. The year-on-year expansion was driven by balance sheet growth and sustained engagement with customers across segments.
The quarterly update provides an early snapshot of the bank’s operational performance ahead of the announcement of its detailed financial results for the December quarter.
Jammu and Kashmir Bank has been focusing on strengthening its balance sheet, improving asset quality and expanding its deposit base, while navigating a competitive operating environment.
Shares of Jammu and Kashmir Bank ended 1.37 per cent higher at ?102.42 on Friday, January 2, ahead of the announcement of the business update.
The bank is expected to provide further details on profitability, asset quality and other key financial indicators when it releases its full quarterly results later this month.(KNS).
