Jammu and Kashmir Bank is targeting credit growth of 15-18% for the year backed by the healthy performance of housing loans, the bank's Managing Director and Chief Executive Office, Baldev Prakash, said in a post-earnings call.

“People are making a lot of investment in housing; repairs and renovations also happening and that is driving the overall housing loan growth,” he said.

The bank is confident of maintaining the net interest margin (NIM) within its guidance of 3.75-4%, and gross and net non-performing assets at under 4.5% and 1%, respectively for the year.

Talking about the bank's success in improving asset quality, Prakash pointed out that there are no more lumpy accounts and the slippage ratio should be maintained under 1.25% for the year.

Also Read

| New home subsidy scheme can spur demand for 50-60 lakh housing loans: SBI's Dinesh Khara

The bank currently has approvals in place for ₹750 crore of Common Equity Tier-1 capital (CET1) and ₹1,000 crore of Tier-II capital. This will help keep the Capital to Risk-weighted Asset Ratio (CRAR) above 16% and lift CET 1 above 13%, Prakash noted.

The bank reported a 56.5% year-on-year (YoY) surge in net earnings for the second quarter at ₹381.1 crore driven by an increase in interest income and a decrease in non-performing loans.

Also Read | What ails India's affordable housing sector? Anarock's Anuj Puri weighs in

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com's blog

(Edited by : Shweta Mungre)