Transcript of Conference Call held on May 06, 2025
Awaiting price reaction for this filing.
J&K Bank reported a record FY25 net profit of Rs. 2,082 crore, up 17.8% year-on-year (or 37% excluding a one-off gratuity reversal of Rs. 243 crore in FY24). Operating profit rose 28.7% to Rs. 2,930 crore, with NIM maintained at 3.92%. Asset quality remained strong with GNPA at 3.37%, NNPA at 0.79%, slippage ratio of 0.92%, and zero credit cost for the year. The board declared a 215% dividend and noted capital adequacy of 16.29% (CET-1 of 12.95%). For FY26, management guided for credit growth of 12%, deposit growth of 10%, NIM of 3.70-3.80% (lower than current), ROA maintained at 1.32%, CASA ratio improvement to 48%, and a 5-year vision of Rs. 5,000 crore profit and Rs. 5 lakh crore business. The bank disclosed a CAPEX pipeline of Rs. 2,500-3,000 crore in J&K and Ladakh and flagged plans to potentially raise both debt and equity capital this fiscal.
Margin pressure is signaled for FY26 with NIM guidance of 3.70-3.80% versus current 3.92%, reflecting expected repo rate cuts, though strong ROE, asset quality, and growth ambition through capital raise and retail expansion could support the stock. Management also addressed Pahalgam incident concerns, noting negligible tourism exposure (under 1% of credit portfolio).