15 May 2017
4QFY17 Results Update | Sector: Financials
J&K Bank
Neutral
BSE SENSEX
30,322
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
S&P CNX
9,445
JKBK IN
521.5
42.2/0.6
92 / 55
1/19/8
117
46.8
CMP: INR81
TP: INR89 (+10%)
Balance sheet clean-up phase; high provisioning leads to pre-tax loss
JKBK reported net loss of INR5.5b in 4QFY17 owing to elevated credit costs
(~5% annualized). High provisioning was on account of high net stress addition
(~2.8% net slippage ratio) and a strong focus of management to clean up
balance sheet (calculated PCR rose to ~59.6% v/s 52.8% in 3Q).
Strong recoveries and upgrades at INR3.6b (4Q is seasonally strong) helped
partly offset high stress additions (INR6.5b v/s INR1.9b in 3Q). Focus on
increasing PCR led to a 10% sequential decline in NNPAs (4.9% of loans v/s 6%
in 3Q). Stock of restructured loans stood at INR63.8b (11% of loans), of which
INR44b pertained to J&K state. The bank implemented INR3.1b in S4A and
INR1.1b in SDR during the quarter.
NII grew 12% QoQ (+1% YoY), led by strong sequential loan growth (+10% QoQ)
and a sharp improvement in NIM to 3.5% (+50bp QoQ).
Despite net income growth of 11% QoQ, high opex (+23% QoQ) led to a 6%
QoQ fall in PPoP (-27% YoY). Operating costs were impacted by one-offs due to
a) depreciation adjustment on revalued assets of ~INR150m, b) INR250m
digitalization expenses and c) INR250m principal settlement related.
FY17 highlights:
(1) Loan growth was flat YoY (but grew 10% QoQ); share of
J&K state loans stood at ~50% v/s 48.6% in FY16. (2) CASA ratio stood at 51.7%
(+760b YoY) – highest ever; SA deposits grew 19% YoY.
Valuation and view:
The bank is on track to close a capital raise of INR2.82b
(second tranche by 25 May – we expect capital augmentation efforts to continue
(8.7% Tier 1). While we like management’s focus to clean up balance sheet,
continued high stress additions and high proportion of restructured book remain a
cause for concern. Recoveries/resolutions in non-J&K state corporate portfolio
(19% NPA) will be a significant trigger for the bank. We cut estimates sharply to
factor in high provisioning (focus on increasing PCR). Maintain
Neutral.
Financials & Valuations (INR b)
Y/E March
2017 2018E 2019E
NII
25.1
27.1
30.3
OP
12.9
12.9
14.2
NP
-16.3
2.3
4.2
NIM (%)
3.5
3.5
3.5
EPS (INR)
-31.3
4.4
8.0
EPS Gr. (%)
NA
NA
83.4
BV/Sh. (INR)
108.8 112.2 118.3
ABV/Sh. (INR)
78.6
87.6
99.1
RoE (%)
-27.0
4.0
7.0
RoA (%)
-2.0
0.3
0.4
P/E(X)
-2.6
18.5
10.1
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com); +91 22 6129 1526
Subham Banka
(Subham.Banka@MotilalOswal.com); +91 022 6129 1567

J&K Bank
4QFY17 Conference call highlights
Asset quality related
Guidance on Credit cost: sub 2% levels. The management targets to take PCR to
70% by FY18 and 90% in 2-3 years. Incremental provisioning will be significantly
lower than FY17 levels as large part of balance sheet clean-up is complete.
Of the total INR63.8b restructured accounts, INR44b pertains to J&K State
(INR4b provisions on these). Window for restructuring was closed on 28th
February. The bank does not see any issues in these accounts – assets are intact,
there has only been disruption in the cash flows due to civil unrest.
There is no change in interest charge on the restructured accounts, merely
extension of the repayment period. The bank may have given additional loans to
the extent of 10-20% of existing loans in cases where it saw merit.
The bank is mostly a minority shareholder in consortium lending in ROI
accounts, and hence has little bargaining power. However, large part of the
stress here is recognized.
GNPA in J&K State is just ~2.9%, whereas GNPA in ROI portfolio is ~19%.
There was a sale to ARC of ~INR500m during the quarter.
O/S floating provision INR3.48b.
Slippages break up for the quarter: J&K State - INR1.46b, ROI - INR5b; slippage
break up for the year: J&K State - INR4.33, ROI - INR28.45b.
Bulk of the slippages were from infra and iron and steel. Iron & Steel o/s
exposure stood at INR30b of which NPA is INR22.45b (~67%).
All of RBI audit related asset classification divergences have been taken care of.
However, the bank is seeking clarification on 2 accounts; in one of these
accounts they had been asked to provide 100% provision, despite this being
standard in the books of other banks – in case this pans out in favour of the
bank, provisions will be reversed
Balance sheet related
The management has guided for 15-18% deposit growth and targets to maintain
CASA ratio above 50%.
The bank aims for at least 25% loan growth in J&K State led by strong infra
development and demand in underserved sectors. Central and State
government have a strong focus on accelerating the pace of development,
which will benefit the growth objective of the bank.
The bank has guided for 15-18% growth in ROI; 25% growth in Kashmir region
66% of loans given in ROI portfolio is AAA rated. While yields will be low, risk
adjusted NIMs will trend higher. The bank is cautious on asset quality in this
portfolio, given its past experiences here.
The bank is not going to be aggressive in branch expansion in 1HFY18. More
focus would be on improving the performance of existing non-mature/less
productive/new branches.
~50% of book is under MCLR.
P/L related
Guidance: Cost to income of ~45%, NIMs at 3.5%
The management expects opex growth of ~10% in FY18
Spike in operating costs were led by a) Depreciation on revalued assets (book
value less than market value) – INR150m, b) ~INR250m digitalization expenses,
and c) ~INR250m principal settlements related
2
15 May 2017

J&K Bank
Capital raising
Infusion of INR2.82b (2nd tranche), closing by May 25th.
Further INR6-7b planned to be raised through various means – QIP, public issue,
etc.
The bank also has approval to raise INR10b through Tier 2 bonds
INR5-6b stake held in Metlife. If the opportunity is right, the bank will explore
the option of stake sale; however it is not actively looking to divest.
Other highlights
The management highlighted the major challenges for the bank in FY18 - capital
augmentation, recovery of bad loans, continue growth momentum from 3Q,
improving compliance culture, and better alignment of processes and
technology.
ARC should become operational from 1QFY18 onwards. In the process of
completing formalities with RBI.
The bank has created a separate compliance vertical.
Valuation and view
Profitability is expected to remain muted in near term on account of stress
additions and increase in coverage ratio. Large stock of restructured loans
remains a key concern. We expect near term profitability to be dragged down by
higher credit costs. (focus on improving PCR). Outside J&K state GNPA ratio
stands at 19% and bank has other forms of stress loans of ~7%
While within J&K state growth will remain at 20%+, cautious outlook, high
repayment (led by competitive pricing for refinancing by peer banks) will keep
business growth moderate outside J&K state. Although management is
targeting 15% growth in FY18 for outside J&K.
Recoveries in Outside J&K stressed assets remains key to improvement in asset
quality/earnings going forward. While the valuations are attractive at 0.8x FY18
BV we would wait to see an improving trend on asset quality to change our J&K
rating on the stock. The bank has strong intent of capital augmentation, and we
expect the bank to strengthen Tier 1 in the coming year.
We have cut our estimates by 64% in FY18 and 44% in FY19 to factor in higher
credit costs. Maintain Neutral with a TP of INR89 (0.8x FY19E BV) based on RI
Model (Key assumptions: Risk free rate of 7%, Beta of 1.6, Risk premium of 5%,
15% cost of equity and terminal growth rate of 5%).
15 May 2017
3

J&K Bank
Exhibit 1: We cut estimates by 64% in FY18 to factor in higher credit costs
INR b
Net Interest Income
Other Income
Total Income
Operating Expenses
Operating Profits
Provisions
PBT
Tax
PAT
Loans
Deposits
Margins (%)
Credit Cost (%)
RoA (%)
RoE (%)
Old Estimates
FY17
FY18
FY19
25.1
27.2
30.2
5.3
6.0
6.8
30.3
33.2
37.0
16.4
18.5
20.9
14.0
14.7
16.1
25.1
5.2
4.8
-11.1
9.5
11.3
1.1
3.2
3.8
-12.2
6.3
7.5
467
523
601
770
874
1,005
3.50
3.53
3.45
4.00
1.00
0.80
-1.47
0.69
0.72
-21.07
11.47
12.09
Revised Estimates
FY17
FY18
FY19
25.1
27.1
30.3
4.9
5.0
5.6
30.0
32.1
35.9
17.1
19.1
21.6
12.9
12.9
14.2
28.0
9.5
7.9
-15.1
3.5
6.4
1.3
1.2
2.2
-16.3
2.3
4.2
498
558
647
725
812
941
3.50
3.52
3.49
4.46
1.75
1.25
-2.01
0.26
0.43
-26.98
3.97
6.98
FY17
0.1
-7.0
-0.8
4.3
-7.5
11.6
NA
14.8
NA
6.7
-5.9
Change (%)
FY18
-0.5
-16.6
-3.4
3.3
-11.9
82.3
-63.5
-63.2
-63.7
6.7
-7.1
FY19
0.2
-17.9
-3.1
3.4
-11.5
64.4
-43.7
-43.1
-44.0
7.7
-6.3
Source: MOSL, Company
Exhibit 2: DuPont Analysis: Profitability impacted by credit costs (% of average assets)
Y/E MARCH
Net Interest Income
Fee income
Core Income
Operating Expenses
Cost to Core Income
Employee cost
Employee to total exp
Others
Core Operating Profit
Trading and others
Operating Profit
Provisions
NPA
Others
PBT
Tax
Tax Rate
ROA (%)
Leverage (x)
ROE (%)
FY12
3.32
0.54
3.86
1.45
37.5
0.94
65.0
0.51
2.41
0.06
2.47
0.31
0.16
0.14
2.17
0.72
33.1
1.45
14.6
21.2
FY13
3.51
0.51
4.02
1.50
37.3
0.99
66.0
0.51
2.52
0.23
2.74
0.43
0.29
0.14
2.31
0.71
30.9
1.60
14.7
23.6
FY14
3.57
0.44
4.01
1.56
38.9
0.99
63.3
0.57
2.45
0.08
2.53
0.20
0.11
0.08
2.33
0.76
32.5
1.57
14.2
22.3
FY15
3.43
0.62
4.05
1.82
45.0
1.16
63.4
0.67
2.23
0.15
2.38
1.31
1.08
0.23
1.06
0.40
38.0
0.66
13.1
8.6
FY16
3.47
0.46
3.93
1.98
50.4
1.35
68.4
0.63
1.95
0.19
2.14
1.25
1.15
0.10
0.89
0.35
39.9
0.53
12.5
6.6
FY17
3.10
0.43
3.53
2.11
59.8
1.38
65.6
0.72
1.42
0.18
1.60
3.45
2.61
0.84
-1.86
0.16
-8.4
-2.01
13.4
-27.0
FY18E
3.12
0.45
3.57
2.21
61.8
1.43
64.6
0.78
1.36
0.13
1.49
1.09
1.07
0.03
0.40
0.14
34.0
0.26
15.0
4.0
FY19E
3.08
0.45
3.53
2.20
62.2
1.41
64.0
0.79
1.33
0.12
1.45
0.80
0.77
0.04
0.65
0.22
34.0
0.43
16.3
7.0
FY20E
3.05
0.45
3.50
2.16
61.6
1.37
63.4
0.79
1.34
0.10
1.45
0.65
0.62
0.04
0.79
0.27
34.0
0.52
17.7
9.3
Source: Company, MOSL
15 May 2017
4

J&K Bank
Story in charts
Exhibit 3: NNPA declined 10bp QoQ; PCR improves QoQ
GNPA (%)
91 92 89 87 87
NNPA (%)
PCR (Cal) (%)
53 60
Exhibit 4: Slippages were elevated during the quarter
Slippages (INR b)
Slippage ratio (%)
59 64 50
49 49 46 55 57
36 43
Source: Company, MOSL
Source: Company, MOSL
Exhibit 5: NIMs increase 50bp QoQ (%)
4.1
4.2
4.3
4.0
4.1
3.6
4.0
3.7
3.9 3.9 4.0 3.9
Exhibit 6: Credit costs remains elevated (bps)
3.6
3.4 3.4
3.0
3.5
Source: MOSL, Company
Source: MOSL, Company
Exhibit 7: Loan growth picked up this quarter, but remained
muted YoY
Loan Gr. (% YoY)
20
10 11 11
18
8
20 21 18
19
9
13 10
3 1
2
1
-4 -3
-1
-2
11 12
6
13 13 4
5
1
-3 -1
15
4
Deposit Gr. (% YoY)
Exhibit 8: CD ratio improved ~800bp sequentially
Source: MOSL, Company
Source: MOSL, Company
15 May 2017
5

J&K Bank
Exhibit 9: Quarterly Snapshot
FY16
INR m
Profit and Loss
Net Interest Income
Other Income
Trading profits
Fee Income
Miscellaneous Income
Total Income
Operating Expenses
Employee
Others
Operating Profits
Provisions
PBT
Taxes
PAT
Asset Quality
GNPA
NNPA
GNPA (%)
NNPA (%)
PCR (Reported, %)
Slippages
Slippage Ratio
Prov. for NPA in qtr
Credit Cost
Restructured loans
% of Loans
Margins - Reported (%)
Yield on loans
Cost of Deposits
Margins
1Q
6,948
1,356
457
422
478
8,305
3,722
2,526
1,196
4,583
2,129
2,454
867
1,588
29,945
12,768
6.6
3.0
61
3,699
3.3
1,866
1.7
25,054
5.8
11.3
6.4
3.9
2Q
6,945
1,265
388
490
387
8,210
3,833
2,550
1,283
4,377
1,266
3,111
1,155
1,956
30,817
12,697
6.5
2.8
62
2,023
1.8
842
0.8
24,862
5.4
11.3
6.4
4.0
3Q
6,737
1,027
212
469
345
7,764
3,854
2,536
1,318
3,910
2,397
1,513
337
1,177
33,395
12,150
6.8
2.6
66
3,312
3.0
2,875
2.5
25,047
5.4
10.9
6.4
3.9
4Q
6,471
1,392
413
456
522
7,863
4,054
2,681
1,373
3,809
3,971
-162
398
-560
43,686
21,640
8.3
4.3
56
14,798
13.3
3,225
2.7
32,353
6.4
10.1
6.2
3.6
1Q
6,326
1,167
362
437
368
7,493
4,000
2,678
1,322
3,493
3,137
356
127
229
47,149
30,235
9.3
6.2
50
13,774
12.7
2,661
2.1
32,475
6.6
9.9
6.0
3.4
2Q
6,414
1,309
467
348
495
7,723
3,967
2,781
1,186
3,756
9,921
-6,165
-141
-6,024
56,830
32,364
11.3
6.8
54
10,625
9.3
6,895
5.7
32,463
6.8
9.8
5.9
3.4
FY17
3Q
5,830
1,207
374
413
420
7,037
4,106
2,761
1,346
2,930
7,263
-4,332
653
-4,986
57,149
26,991
11.8
6.0
62
1,910
1.6
5,691
4.9
32,490
7.2
9.6
5.8
3.0
4Q
6,550
1,246
229
451
565
7,795
5,032
2,997
2,035
2,764
7,683
-4,919
624
-5,543
60,000
24,254
11.2
4.9
67
6,476
5.2
5,913
5.0
63,820
12.8
9.3
5.7
3.5
Variation (%)
QoQ
YoY
12
3
-39
9
34
11
23
9
51
-6
6
NA
-4
NA
5
-10
-64
-112
515
239
4
96
560
-31
-6
51
1
-11
-44
-1
8
-1
24
12
48
-27
93
NA
57
NA
37
12
288
56
1073
-56
83
97
637
-83
-44
-10
Source: Company, MOSL
15 May 2017
6

J&K Bank
Financials and valuations
Income Statement
Y/E March
Net Interest Income
Change (%)
Non Interest Income
Net Income
Change (%)
Operating Expenses
Pre Provision Profits
Change (%)
Provisions (excl tax)
PBT
Tax
Tax Rate (%)
PAT
Change (%)
Equity Dividend (Incl tax)
Core PPP*
Change (%)
*Core PPP is (NII+Fee income-Opex)
Balance Sheet
Y/E March
Equity Share Capital
Reserves & Surplus
Net Worth
Deposits
Change (%)
of which CASA Dep
Change (%)
Borrowings
Other Liabilities & Prov.
Total Liabilities
Current Assets
Investments
Change (%)
Loans
Change (%)
Fixed Assets
Other Assets
Total Assets
Asset Quality
GNPA (INR m)
NNPA (INR m)
GNPA Ratio
NNPA Ratio
PCR (Excl Tech. write off)
PCR (Incl Tech. Write off)
E: MOSL Estimates
2012
18,384
19.1
3,341
21,725
13.8
8,022
13,703
19.2
1,692
12,011
3,979
33.1
8,032
30.6
1,888
13,345
26.2
2013
23,160
26.0
4,837
27,998
28.9
9,890
18,108
32.1
2,842
15,266
4,715
30.9
10,551
31.4
2,836
16,614
24.5
2014
26,845
15.9
3,903
30,747
9.8
11,750
18,998
4.9
1,479
17,519
5,694
32.5
11,825
12.1
2,836
18,429
10.9
2015
26,509
-1.3
5,940
32,449
5.5
14,090
18,358
-3.4
10,155
8,203
3,117
38.0
5,086
-57.0
1,222
17,235
-6.5
2016
27,101
2.2
5,040
32,141
-0.9
15,462
16,679
-9.1
9,762
6,917
2,757
39.9
4,160
-18.2
1,021
15,208
-11.8
2017
25,119
-7.3
4,929
30,048
-6.5
17,105
12,943
-22.4
28,003
-15,060
1,263
-8.4
-16,323
-492.3
0
11,511
-24.3
2018E
27,051
7.7
5,005
32,056
6.7
19,109
12,947
0.0
9,480
3,467
1,179
34.0
2,288
-114.0
549
11,801
2.5
2019E
30,270
11.9
5,583
35,854
11.8
21,605
14,249
10.1
7,889
6,359
2,162
34.0
4,197
83.4
1,007
13,103
11.0
(INR
Million)
2020E
34,549
14.1
6,249
40,798
13.8
24,431
16,367
14.9
7,404
8,963
3,047
34.0
5,916
40.9
1,420
15,221
16.2
2012
485
40,447
40,932
533,469
19.4
217,152
20.1
12,410
15,882
602,692
44,539
216,243
9.8
330,774
26.3
4,203
6,934
602,692
2013
485
48,162
48,647
642,206
20.4
251,910
16.0
10,750
15,830
717,433
54,043
257,411
19.0
392,004
18.5
4,562
9,413
717,433
2014
485
56,751
57,236
693,359
8.0
270,833
7.5
17,650
17,953
786,197
42,139
262,158
1.8
463,846
18.3
5,338
12,924
786,405
2015
485
60,616
61,101
657,562
-5.2
274,764
1.5
23,397
17,248
759,307
37,338
227,596
-13.2
445,858
-3.9
6,889
41,627
759,307
2016
485
63,755
64,240
693,903
5.5
306,204
11.4
22,400
22,138
802,681
32,030
203,536
-10.6
501,933
12.6
7,637
57,544
802,681
2017E
522
56,244
56,765
724,631
4.4
374,602
22.3
12,761
26,030
820,187
53,859
212,909
4.6
498,161
-0.8
15,433
39,824
820,187
2018E
522
57,982
58,504
811,587
12.0
421,229
12.4
13,437
29,250
912,777
47,252
238,458
12.0
557,940
12.0
23,329
45,798
912,777
2019E
522
61,172
61,694
941,440
16.0
494,038
17.3
14,924
33,035
1,051,093
52,816
267,073
12.0
647,211
16.0
31,325
52,668
1,051,093
2020E
522
65,668
66,190
1,092,071
16.0
579,501
17.3
16,709
37,391
1,212,360
62,485
299,122
12.0
750,765
16.0
39,421
60,568
1,212,360
5,166
493
1.54
0.15
87.1
93.8
6,438
553
1.62
0.14
87.4
94.0
7,834
1,020
1.67
0.22
83.4
90.3
27,641
12,363
6.00
2.77
53.1
59.0
43,686
21,640
8.35
4.31
48.3
56.2
60,000
24,254
11.24
4.87
59.6
66.9
59,745
19,758
9.99
3.54
66.9
74.0
55,439
15,420
8.07
2.38
72.2
79.8
49,404
11,395
6.26
1.52
76.9
84.9
15 May 2017
7

J&K Bank
Financials and valuations
Ratios
Y/E March
Spreads Analysis (%)
Avg. Yield-Earning Assets
Avg. Yield on loans
Avg. Yield on Investments
Avg. Cost-Int. Bear. Liab.
Avg. Cost of Deposits
Interest Spread
Net Interest Margin
Profitability Ratios (%)
RoE
RoA
Int. Expense/Int.Income
Fee Income/Net Income
Non Int. Inc./Net Income
Efficiency Ratios (%)
Cost/Income*
Empl. Cost/Op. Exps.
Busi. per Empl. (INR m)
NP per Empl. (INR lac)
* ex treasury
Asset-Liability Profile (%)
Loans/Deposit Ratio
CASA Ratio
Investment/Deposit Ratio
G-Sec/Investment Ratio
CAR
Tier 1
Valuation
Book Value (INR)
Change (%)
Price-BV (x)
Adjusted BV (INR)
Price-ABV (x)
EPS (INR)
Change (%)
Price-Earnings (x)
Dividend Per Share (INR)
Dividend Yield (%)
E: MOSL Estimates
2012
9.4
11.5
6.8
6.0
5.9
3.4
3.6
2013
9.9
11.9
7.3
6.4
6.4
3.5
3.7
2014
9.6
11.7
6.5
6.0
6.0
3.6
3.8
2015
9.9
11.3
7.1
6.3
6.2
3.6
3.7
2016
9.8
10.6
7.6
5.9
5.9
3.9
3.9
2017E
9.3
9.6
8.6
5.7
5.8
3.6
3.5
2018E
8.9
9.3
7.7
5.3
5.2
3.6
3.5
2019E
8.6
9.1
7.3
5.0
5.0
3.6
3.5
2020E
8.6
9.1
7.3
5.0
5.0
3.6
3.5
21.2
1.5
62.0
6.2
15.4
23.6
1.6
62.3
5.4
17.3
22.3
1.6
60.3
4.9
12.7
8.6
0.7
62.5
6.8
18.3
6.6
0.5
60.4
5.2
15.7
-27.0
-2.0
62.4
5.2
16.4
4.0
0.3
60.3
5.7
15.6
7.0
0.4
59.6
5.9
15.6
9.3
0.5
59.9
5.9
15.3
38.6
65.0
85.0
8.7
35.8
66.0
101.0
11.2
40.2
63.3
116.9
12.6
44.2
63.4
120.5
5.4
49.8
68.4
113.4
4.1
59.9
65.6
120.7
-16.3
62.4
64.6
126.8
2.2
62.2
64.0
141.9
4.0
61.6
63.4
161.5
5.6
62.0
40.7
40.5
53.4
12.5
10.4
61.0
39.2
40.1
54.6
12.8
10.9
66.9
39.1
37.8
57.0
12.7
11.2
67.8
41.8
34.6
59.1
12.6
11.3
72.3
44.1
29.3
68.5
11.8
10.6
68.7
51.7
29.4
74.9
10.8
8.7
68.7
51.9
29.4
74.9
9.5
8.5
68.7
52.5
28.4
77.6
8.7
7.8
68.7
53.1
27.4
80.3
8.0
7.2
84
17.6
84
16.6
30.6
3.3
100
18.8
100
21.8
31.4
5.0
118
17.7
117
24.4
12.1
5.0
126
6.8
109
10.5
-57.0
2.1
132
5.1
103
8.6
-18.2
1.8
109
-17.8
0.7
79
1.0
-31.3
-492.3
-2.6
0.0
0.0
112
3.1
0.7
88
0.9
4.4
-114.0
18.5
0.9
1.1
118
5.5
0.7
99
0.8
8.0
83.4
10.1
1.6
2.0
127
7.3
0.6
113
0.7
11.3
40.9
7.1
2.3
2.8
15 May 2017
8

J&K Bank
Corporate profile: J&K Bank
Company description
J&K Bank (JKBK) is an old private sector bank which
commenced business in July, 1939 from Srinagar,
Kashmir. It is the only state government owned
bank in the country with Govt of J&K holding ~53%
in the bank. JKBK has a dominant position in the
state of J&K constituting majority of the credit
(~51%) and deposits (~77%) in the state. As on Dec-
16, it operated through a network of 829 branches
(with ~85% of branches in the state of J&K).
Exhibit 1: Exhibit 13: Sensex rebased
Exhibit 1: Shareholding pattern (%)
Mar-17
Promoter
DII
FII
Others
53.2
8.9
17.7
20.2
Dec-16
53.2
9.2
14.6
23.1
Mar-16
53.2
9.3
19.6
17.9
Exhibit 2: Top holders
Holder Name
LIC of India
Government Pension Fund
ICICI Prtudential value discovery fund
East India Capital Market Fund Limited
ICICI Prudential Mid cap fund
% Holding
3.2
2.4
2.1
2.1
1.2
Note: FII Includes depository receipts
Exhibit 3: Top management
Name
Parvez Ahmed
Designation
Chairman & CEO
Exhibit 4: Directors
Name
Abdul Majid Mir
Azhar UL Amin
Masooda Rajpuri
Navin Kumar Choudhary
Rakesh Kumar Gupta
Name
Mohammad Ashraf Mir
Mohammad Maqbool Rather
Exhibit 5: Auditors
Name
Arora Vohra & Co
Darshan Nagpal & Associates
Dhar Tiku & Co
Dharam Raj & Co
Type
Statutory
Statutory
Statutory
Statutory
Exhibit 6: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
MOSL
forecast
4.4
8.0
Consensus
forecast
7.9
11.4
Variation
(%)
-44.2
-29.6
15 May 2017
9

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