Jammu and Kashmir Bank (J&KBANK) investor relations material

Executive summary

• Achieved record profit for four consecutive years, with highest ever profit of ₹2,363 crore for FY 2025-26 and total business crossing ₹3 trillion at Q1 FY2027, with deposits at ₹1.73 trillion and gross advances at ₹1.31 trillion.

• Achieved strong year-over-year growth in both deposits (16.75%) and advances (25.44%), surpassing industry averages and crossing the INR 3 trillion business milestone for the first time in the bank's history.

• Diversification efforts led to the Rest of India division contributing 26% of business, up from less than 20% a year ago, while maintaining a dominant 61.13% market share in J&K and Ladakh.

• Over 94% of transactions are now digital, reflecting strong digital adoption.

• Reviewed standalone and consolidated financial results for the quarter ended June 30, 2026 were approved by the Board on July 29, 2026.

Financial highlights

• Standalone net profit for Q1 FY27 was ₹424.18 crore, down from ₹797.80 crore in the previous quarter and 12.5% YoY; consolidated net profit was ₹428.80 crore.

• Operating profit for Q1 FY27 was ₹703 crore, up 5% YoY; net interest income grew 2.2% YoY to ₹1,497.12 crore.

• Deposits rose 16.7% YoY to ₹1,73,420 crore; net advances up 26.6% YoY to ₹1,28,183 crore.

• Gross NPA ratio improved to 2.37% from 3.50% YoY; Net NPA at 0.60%; Provision Coverage Ratio at 90.53%.

• CASA ratio stood at 42.06% as of June 30, 2026, with term deposits growing over 24% YoY and CASA deposits up 7.5%.

Outlook and guidance

• Guidance for FY27 remains unchanged: credit growth 12%, deposit growth 10%, CASA 45%, NIM around 3.5%, ROA at FY26 levels (~1.25%), ROE around 16%, GNPA below 2.25%.

• Management expects actual credit growth to be 18-20% for FY27, with J&K contributing 12-13% and Rest of India 25%.

• Margin expansion is anticipated as low-yielding corporate loans run off and retail growth accelerates, with NIM expected to return to 3.5% by Q3.

• Continued focus on digital transformation and expanding presence outside J&K and Ladakh.

• The bank continues to maintain additional provisions on NPAs and standard assets, reflecting a prudent approach to asset quality.