Highest Dividend After 2015, 1:10 Split: 86-Yrs Old Bank Posts 48% Jump In Net, Buy?

Leading private sector bank, Jammu & Kashmir Bank Ltd today posted a net profit of Rs1767 Cr for the fiscal 2023-24, up 48% over the previous high of Rs. 1197 Crore achieved last year. Board of Directors of the Bank also recommended a final dividend of Rs. 2.15 per share of Face Value Re 1.00 for its shareholders. Its net profit for the Q4FY23-24 also surged by 34% to Rs 638.67 Cr as against Rs 476.33 Cr declared in last financial year. This also is a historic high for quarterly profits.

Last trading price of Jammu & Kashmir Bank share on BSE is Rs 139.25 per share with intraday rally of 0.43% as on May 3, 2024. The bank has a market capitalisation of Rs 15,333.97 crore. The PE of Jammu & Kashmir Bank is 9.56 and ROE is 15.07. Jammu & Kashmir Bank shares rallied 125% in last 1-year only. More Details below:

Jammu & Kashmir Bank Quarterly Results: The Bank's total revenue grew by 19% to cross the Rs 12000 Cr mark while as the net interest margin (NIM) stood at 3.92%. Bank's Yield on Advances rose annually to 9.54% from 8.91%, while as the Return on Assets (RoA) reached quite healthy levels at 1.22% - crossing the 1% barrier after a decade - as against 0.89% recorded last fiscal.

Jammu & Kashmir Bank's MD & CEO Baldev Prakash said, "We are thrilled to report such stellar annual numbers, which reflect our unwavering commitment to excellence and prudent financial management. Our record-breaking annual profit and impressive financial metrics reflects the changing culture of the Bank where delivering streak of new records period after period is becoming a habitIt also underscores the Bank's resilience and strategic prowess in navigating dynamic market conditions.

Jammu & Kashmir Bank Recommends Dividend: According to the BSE filing of the company dated May 4, 2024, "the Board of Directors in their meeting held today i.e., 04th May, 2024 has recommended a dividend of Rs. 2.15 per equity share of Re. 1/- each fully paid up (215%) for the financial year ended March 31, 2024, subject to the approval of the shareholders at the ensuing Annual General Meeting ("AGM") of the Bank."

Jammu & Kashmir Bank Dividend History: Jammu & Kashmir Bank announced 18 dividends since May 17, 2001. In the past 12 months, Jammu & Kashmir Bank Ltd announced an equity dividend amounting to Re 0.50 per share. At the current share price of Rs 139.25, Jammu & Kashmir Bank offers a dividend yield of 0.36%. It is worth mentioning here that Jammu & Kashmir Bank declared its highest dividend of Rs 50/share in 2014 and 2013, respectively.

Jammu & Kashmir Bank Stock Split History: Jammu and Kashmir Bank last split its face value of shares from Rs 10 to Rs 1 in 2014. The share traded ex-split from September 04, 2014.

Should You Buy Jammu & Kashmir Bank? SBI Securities, in its report dated March 7, 2024, assigned buy call to Jammu & Kashmir Bank share with target price of Rs 171.9 per share. According to the analyst, "credit growth trajectory is improving in the state with soaring activities in the tourism, horticulture, MSME, and infrastructure segment. The overall credit growth in the J&K state is likely to remain in the range of 15%-17%."

Jammu & Kashmir Bank Share Performance & Return: 52-week high price of Jammu & Kashmir Bank share on BSE is Rs 152.45 per share (as on 09/02/2024) and 52-week low price is Rs 52.61 per share (as on 19/05/2023), respectively. Jammu & Kashmir Bank share offered stunning return of 354% in last 2-years, gained 480% in last 3-years, and jumped 130% in last 5-years.

About: Jammu and Kashmir Bank (J&K Bank) is a Scheduled Commercial Bank and one of the oldest private sector Bank in India, incorporated in 1938. Bank is listed on the NSE and the BSE and has its Corporate Headquarters at Srinagar.

Disclaimer: The stock has been picked from the brokerage report of SBI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.