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

Executive summary

• Q2 FY27 standalone net profit was ₹546.36 crore, up 10.6% YoY and 28.8% QoQ; consolidated net profit was ₹552.70 crore.

• Total business rose 19.38% YoY to ₹3,10,347 crore; gross advances grew 23.72% and deposits 16.30%.

Financial highlights

• Interest earned was ₹3,727.09 crore, up 13.2% YoY; net interest income was ₹1,502.31 crore, up 4.8% YoY.

• Operating profit rose 26.7% YoY to ₹789.14 crore; H1 operating profit was ₹1,492.42 crore, up 15.2%.

• H1 FY27 net profit was ₹970.54 crore, down 0.9% YoY; standalone Q2 total income was ₹4,041.99 crore.

• Other income more than doubled YoY; Q2 treasury gains included ₹92 crore from bonds and revaluation of unlisted stocks, with a post-quarter transaction expected to add over ₹100 crore in Q3.

• Cost-to-income ratio improved to 56.57% from 60.79% YoY; H1 operating expenses increased 1.5% YoY.

Outlook and guidance

• FY27 guidance: credit growth 14%+, deposit growth 12%+, CASA ratio 42%+, considerable NIM improvement, ROA 1.20%+, and GNPA below 2%.

• Credit growth could approach 18% if retail momentum continues; targeted lending mix is 60% retail and 40% corporate.

• Substantial H2 NIM improvement is expected as repo-linked yields reset, high-cost deposits are shed and deposit costs moderate; no NIM figure was given.

• H2 ROA of 1.4% or better is expected, supported by NIM and other income, including recoveries, cross-selling, treasury, forex and non-fund-based business.

• H2 priorities include recurring revenue, recoveries and deeper deposit relationships; Vision 2030 business aspiration is ₹5 lakh crore.