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Jammu and Kashmir Bank
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Jammu And Kashmir Bank Limited (J & K), a state owned bank was incorporated in 01 October 1938 and commenced its business from 04 July 1939 at in Kashmir (India). As on 31 December 2020, the bank had a distribution network of 956 branches and 1382 ATMs across the country. It offers banking services under the three major divisions as Support services, Depository services and Third party services. The Bank operates mainly into four segments comprising of Treasury, Corporate/wholesale banking, Retail banking and other banking operations.
According to the extended Central Laws of the State, Jammu & Kashmir Bank was defined as Government of Company as per the provision of Indian companies act 1956. In the year 1971, the Bank received the status of scheduled bank. RBI declared it as 'A' Class Bank in the year of 1976. During the year 1993, the Bank made tie up with Reuter News Agency for instantaneous information about global foreign currency rates and fluctuations. In the year of 1995, Banking Ombudsman Scheme was launched in June and a loan delivery system was introduced in April, which was used for large borrowers. During the year of 1998, J & K had introduced a new term deposit scheme under the title of Jana Priya Jamma Yojna carrying flexibility in the repayment schedule and in the same year the bank introduced Housing Loan and Education Loan Schemes.
The Bank had entered into an agreement with IBA to connect its ATMs through a shared network in the year 1999. To offer Internet Banking and for its e-commerce initiatives, the bank made tie up with Infosys Technologies and also in the same year J&K Bank had entered into agreement with American Express to launch a co-branded credit card. J&K Bank had diversified into non-life insurance and depository business, apart from life Insurance and asset management business in the year of 2000. The Bank had launched Global Access Card (An International Debit Card) in association with Master Card International during the year of 2003. During the year 2004, J&K Bank agreed with ICICI Bank to share the ATM network. In the same year the bank had received the Asian Banking Award 2004 in Manila for its customer convenience programme. Signed MoU with Bajaj Tempo in the year of 2004.
During the year 2005-06, J&K opened its branches in Chennai, Kanpur, Agra and Kolkata. Also in the same year introduced new product and services for rural finance. During the period of 2006-2007, the bank introduced various hi-tech and customer friendly products. The Bank and TATA Consultancy Services (TCS), Asia's largest IT company signed a Memorandum of Understanding (MoU) to signal their intent to work together to create an IT blue-print for the bank. Going forward with its renewed business strategy, J & K Bank had opened its 564th branch at Lassipora, Pulwama, Srinagar in July of the year 2008.
During the financial year 2013-14, 92 new branches were established; thereby taking the number of branches to 777 as on 31st March 2014, spread over 20 states and one union territory.
During the financial year 2013-14, 187 ATMs, both onsite & offsite, were commissioned thereby taking the number of ATMs to 800 as on 31st March 2014.
During the financial year 2014-15, 40 new branches were established; thereby taking the number of branches to 817 as on 31st March 2015, spread over 20 states and one union territory.
During the financial year 2014-15, 85 ATMs were commissioned thereby taking the number of ATMs to 885 as on 31st March 2015.
During the year under review, bank increased its stake in JKBFSL by 100% by contributing Rs1000 lacs in share capital of the company, increasing its paid up capital to 2000 lacs for the year ended 31st March 2015 as against Rs1000 lacs as on 31st March 2014.
During the financial year 2015-16, 40 new branches were established; thereby taking the number of branches to 857 as on 31st March 2016, spread over 20 states and one union territory.
During the financial year 2015-16, 121 ATMs were commissioned thereby taking the number of ATMs to 1006 as on 31st March 2016.
During the financial year 2016-17, 8 new branches were established; thereby taking the number of branches to 865 as on 31st March 2017, spread over 20 states and one union territory.
During the financial year 2016-17, 90 ATMs were commissioned thereby taking the number of ATMs to 1096 as on 31st March.2017.
During financial year 2018-19, 36 new branches were established, thereby taking number of branches to 938 as on 31st March 2019, spread over 20 states and one union territory.
During the financial year 2018-19, 96 ATMs were commissioned thereby taking the number of ATMs to1294 as on 31st March 2019.
During FY 2018-19, the Bank launched a bouquet of new products such as Gold Loan Scheme, Merchant Overdraft scheme and deploying Direct Selling Agents (DSA) in ROI (Rest of India) for housing loans.
During the financial year 2019-20, 15 new branches were established, thereby taking the number of branches to 955 (including IARBs)as on 31.03.2020, spread over 17 states and 4 union territories. During the financial year FY19-20, 3 EBUs/USBs were established, 66 ATMs were commissioned thereby taking the number of ATMs to 1354 as on 31.03.2020.
During the FY2020, the bank has allotted an preferential allotment of 15,65,92,546 equity shares of Re. 1/- each fully paid up for cash to the Government of Jammu and Kashmir at the issue price of Rs 31.93 per equity share.
Jammu and Kashmir Bank share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Jammu and Kashmir Bank indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Jammu and Kashmir Bank is valued compared to its competitors.
Jammu and Kashmir Bank PE ratio helps investors understand what is the market value of each stock compared to Jammu and Kashmir Bank 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Jammu and Kashmir Bank evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Jammu and Kashmir Bank generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Jammu and Kashmir Bank in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Jammu and Kashmir Bank shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Jammu and Kashmir Bank compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Jammu and Kashmir Bank over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Jammu and Kashmir Bank helps investors get an insight into when they can enter or exit the stock. Key components of Jammu and Kashmir Bank Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Jammu and Kashmir Bank shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Jammu and Kashmir Bank ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Jammu and Kashmir Bank provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Jammu and Kashmir Bank highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Jammu and Kashmir Bank .
The balance sheet presents a snapshot of Jammu and Kashmir Bank ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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