Jammu and Kashmir Bank (J&KBANK) Q4 24/25 earnings summary

Executive summary

• Achieved record annual net profit of INR 2,082.46 crores for FY 2024-25, marking a third consecutive year of lifetime high profits.

• Net profit grew 7.8% YoY; excluding a one-off gratuity reversal last year, underlying profit growth was 37%.

• Operating profit reached INR 2,930 crores, up 28.7% YoY; Q4 net profit was INR 585 crores, up 10% QoQ.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2025 were approved by the Board on May 5, 2025.

• Financial statements prepared in compliance with SEBI and RBI regulations, with unmodified audit opinions.

Financial highlights

• Double-digit growth in deposits (10.2%) and advances (11.1%) YoY, broadly in line with industry.

• Net interest income rose 11.3% YoY; other income surged 38%, crossing INR 1,000 crores, aided by recoveries.

• Standalone total income for FY25 was ₹13,672.67 crore, up from ₹12,037.85 crore in FY24.

• GNPA at 3.37%, NNPA at 0.79%, provision coverage ratio above 90%.

• Capital adequacy ratio at 16.29% standalone, CET1 at 12.95%.

• Proposed dividend of ₹2.15 per share for FY25, subject to AGM approval.

Outlook and guidance

• FY 2025-26 guidance: credit growth 12%, deposit growth 10%, CASA target 48%.

• NIM expected at 3.7%-3.8%, ROA to be maintained at 1.32%, ROE between 16%-17%, GNPA below 3%.

• Transitioned to new RBI investment classification and valuation guidelines from April 1, 2024, impacting comparability of investment income.

• Additional provisions made for sub-standard and doubtful assets above RBI norms; prudent provisioning continues.

• Business growth guidance reflects moderation due to revised economic forecasts and sector trends.