The Jammu & Kashmir Bank Limited has informed the Exchange about FINANCIAL RESULTS OF THE BANK AUDITED BY COMPTROLLER & AUDITOR GENERAL OF INDIA FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2025 (STANDALONE & CONSOLIDATED)
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Jammu & Kashmir Bank submitted its audited financial results for the year ended 31 March 2025 (both standalone and consolidated) to NSE and BSE, along with comments from the Comptroller & Auditor General of India (CAG). The CAG conducted a supplementary audit and flagged four key concerns: (1) Statutory Reserves were understated by ₹23.94 crore because 25% of depreciation transferred from the Revaluation Reserve to Revenue/General Reserve during FY18–FY23 was not appropriated as required under the Banking Regulation Act, 1949; (2) Provisions were understated by ₹2.25 crore for an NPA of ₹4.50 crore (M/s Goverdhan India Pvt. Ltd) where security under the Roshni Act was declared void; (3) Disclosure gaps around provisioning policy for CGTMSE/NCGTC-backed advances and an incorrect investment transition gain disclosure (bank reported ₹26.31 crore net gain vs. actual ₹51.27 crore); and (4) Non-compliance with Section 395 of the Companies Act, 2013, as the CAG Comment Certificate was not included in the FY24 Annual Report. The bank has provided responses for each point, largely accepting the observations and stating corrective action has been or will be taken.
The CAG observations point to lapses in statutory reserve appropriation, NPA provisioning, and disclosure accuracy, though the amounts involved (around ₹26 crore combined) are not material to the bank's overall financials. Shareholders should note the governance and compliance weaknesses raised, but the bank has acknowledged and begun rectifying them, so the impact on stock price is likely to be limited.