Jammu and Kashmir Bank Ltd has registered a 23.12 per cent rise in net profit to Rs 109.8 crore (Rs 1,098 million) for the third quarter ended December 31, 2003, compared to Rs 89.18 crore (Rs 891.8 million) in the same period last year.

Total income in the third quarter increased to Rs 473.02 crore (Rs 4,730.2 million) as against Rs 459.95 crore (Rs 4,599.5 million) reported in Q3 of last year, J&K Bank chairman M Y Khan told newspersons in Mumbai on Wednesday.

The operating profit in Q3 of FY04 was down at Rs 180.95 crore (Rs 1,809.5 million) [Rs 184.22 crore (Rs 1,842.2 million) in same period of 2002-03], while the total provisions and contingencies reduced to Rs 71.15 crore (Rs 711.5 million) [Rs 95.04 crore (Rs 950.4 million)], he said.

For the nine month period ended December the net profit and total income rose to Rs 308.3 crore (Rs 3,083 million) [Rs 236.18 crore (Rs 2,361.8 million)] and Rs 1,387.39 crore (Rs 13,873.9 million) [Rs 1,292.91 crore (Rs 12,929.1 million)] respectively, he added.

"We expect to end the fiscal with a net profit of over Rs 400 crore (Rs 4,000 million)", he said.

The deposits increased to Rs 15,882 crore (Rs 158.82 billion) [Rs 12,658 crore (Rs 126.58 billion)] while advances grew to Rs 7,482 crore (Rs 74.82 billion) [Rs 6,789 crore (Rs 67.89 billion)].

The bank has also sanctioned loans aggregating Rs 1,600 crore (Rs 16 billion) of which 80 per cent would be disbursed by March end, Khan said.

The gross and net non-performing assets were pegged at 2.5 per cent and less than one per cent, respectively.

The chairman said the bank board in its next meeting would decide on a proposal (maybe an interim dividend) to benefit the shareholders. However, nothing has been decided as yet on this front.