Audio and Investor Brief of Conference Call held on May 06, 2025
Awaiting price reaction for this filing.
J&K Bank reported a record FY25 with net profit of Rs. 2,082 crore (up 17.8% YoY, or 37% excluding a one-off gratuity reversal in FY24) and operating profit of Rs. 2,930 crore (up 28.7% YoY). Q4 net profit stood at Rs. 585 crore, up 10% QoQ. Deposits grew 10.2% and advances 11.1%, with the bank's Net Interest Margin holding strong at 3.92%, Return on Assets at 1.32%, and Return on Equity at 17.37%. Asset quality remained healthy with Gross NPA at 3.37%, Net NPA at 0.79%, and Provision Coverage Ratio above 90%. The board declared a 215% dividend, marking the third consecutive year of shareholder payouts. Management indicated the bank may consider raising both debt and equity capital in FY26 to fund growth, while guiding for credit growth of 12% and deposit growth of 10%.
Strong, broad-based FY25 results with record profits and healthy asset quality reinforce confidence in the franchise. However, the guided NIM range of 3.70–3.80% for FY26 is below the current 3.92%, signalling some margin pressure ahead. Capital raising plans and a 215% dividend are positive for shareholders in the long run but could create short-term dilution and supply overhang concerns.