Public sector bank Jammu & Kashmir Bank on Tuesday will consider raising tier-I and tier-II capital for the current financial year. The bank’s capital adequacy ratio improved to 13.23% as on March 31 from 12.20% a year ago. The Reserve Bank of India norms require banks to maintain 9% capital adequacy ratio.
The bank had raised over Rs 1,100 crore as capital during the FY22. Of the total funds raised Rs 500 crore was equity infusion by the government, Rs 150 crore was raised via employee stock scheme, Rs 93 crore via QIP and Rs 360 crore via tier 2 bond issue.
“…the board of directors of the bank in their meeting scheduled for June 28 shall inter alia consider the raising of capital (Tier I/Tier II) during the financial year 2022-23,” the lender said in an exchange filing.
The bank’s deposits in Q4FY22 increased by 6% to Rs 1.14 trillion. The bank’s deposits in Jammu & Kashmir increased by 7% on year. While the lender’s net profit for Q4FY22 declined to Rs 113 crore from Rs 316 crore in the year ago period, the bank posted profit of Rs 501 crore for FY22, highest since FY15, according to the bank.