The Jammu & Kashmir Bank Limited has informed the Exchange about Link of Recording
J&KBANK · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
J&K Bank reported record annual net profit of Rs. 2,363 crores for FY 2025-26, up 13.5%, with Q4 profit of ~Rs. 800 crores growing 36% QoQ. Business grew 13.6% with deposits up 11.3% and gross advances up 16.8%, both exceeding guidance. The loan book mix shifted slightly toward Rest of India (37% vs 63% J&K) as ROI loan growth hit 28.8%. NIM for the year came in at 3.60%, missing guidance due to RBI rate cuts of 125 bps and deposit competition. CASA ratio improved to 45.65%, beating the 45% target. Asset quality remained strong with GNPA at 2.50% and NNPA at 0.64%, while the bank raised its Provision Coverage Ratio above 90%. Capital adequacy reached a high of 16.55% (CET1 13.54%), and the bank plans to raise Rs. 1,250 crore of capital in FY 2026-27 ahead of ECL implementation from April 2027. For FY 2026-27, guidance is conservative: credit growth 12%, deposit growth 10%, NIM ~3.50%, RoA around current levels, RoE ~16%, and GNPA below 2.25%.
The bank delivered on most performance promises but faces NIM compression headwinds. The guidance for FY 2026-27 is cautious, with NIM expected to slip further to ~3.50%, reflecting ongoing margin pressure from rate cuts and deposit competition. Capital raise plans may have a modest dilutive impact but strengthen the balance sheet for new ECL norms.