JKB achieves highest coverage ratio in the industry

BILAL HUSSAIN

The Jammu and Kashmir Bank— only listed company in the state— has achieved the highest Coverage Ratio in Indian banking industry of 83 per cent, Chairman and CEO JKB, Dr Haseeb A Drabu, said in a press conference here on Sunday.
The Bank of Baroda is on the second number having coverage ratio of 78 per cent, followed by the Punjab National Bank with 74 per cent and HDFC bank having 72 per cent.
In a presentation Dr Drabu while comparing the JK Banks performances with the peer banks said that the bank tops the list on a significant parameter of cost to income by achieving 35.70 per cent followed by the ICICI Bank managing 36.20 per cent and Canara Bank finds third rank having 36.92 per cent of cost to income.
Moreover, the Return on Assets for the current year of JKB has improved to 1.20 per cent compared to 1.09 per cent for the previous financial year. Dr Drabu mentions that the bank is on the 4th rank on a critical financial parameter of return on assets (annualized) as on December 2009 is 1.33 per cent, while Axis Bank has achieved 1.60 per cent, Canara Bank has managed 1.47 per cent followed by the Punjab National Bank securing 1.43 per cent for the same period.
The bank also beats the rest on a vital parameter of Net Impaired Loans; JKB has achieved 0.38 per cent for the parameter. While, HDFC Bank and Axis Bank secured second and third position by achieving 0.45 per cent and 0.46 per cent respectively on Net Impaired Loans.
The bank has achieved the highest Tier I Capital in accordance to the Basel II recommendations at 14.54 per cent. Followed by ICICI Bank and HDFC Bank at 14.20 per cent and 13.80 per cent respectively on Tier I Capital.
J&K Bank secures third rank on the Earnings per Share of Rs 80.93. While State Bank of India and Punjab National Bank secures 1st and 2nd rank by achieving Rs 114.97 and Rs 87.86 respectively on the Earnings per Share.
The bank achieves the seconds place in the list by securing Book value of Rs 621.97. The State Bank of India tops the list by achieving Rs 1003.