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

Executive summary

• Achieved record net profit of ₹2,082 crore for FY 2024-25, with Q3 FY26 standalone net profit at ₹588.73 crore, up 18.7% QOQ and 10.4% YOY, marking a third consecutive year of lifetime high profits.

• Total business surpassed ₹2.5 lakh crore in FY 2025, with advances crossing ₹1 lakh crore and deposits up 10.6% YOY.

• Asset quality improved, with GNPA at 3.00% (down from 4.08% YOY) and net NPA at 0.68% as of December 31, 2025.

• Over 90% of transactions are now digital, reflecting strong digital transformation.

• Upgraded long-term issuer rating to AA- with a stable outlook.

Financial highlights

• Standalone net profit for nine months ended December 31, 2025, was ₹1,565.68 crore, up 4.5% YOY; consolidated net profit for the same period was ₹1,560.94 crore.

• NIM for Q3 was 3.62%, cost-to-income ratio improved to 55.88%, and CASA ratio at 44.10%.

• Operating profit before tax for Q3 FY26 was ₹806 crore; standalone total income for Q3 was ₹3,592.90 crore.

• Annualized ROA at 1.35% and ROE at 15.16% for nine months.

• Net worth increased to ₹14,525.47 crore as of December 31, 2025.

Outlook and guidance

• FY26 guidance: credit growth 12%, deposit growth 10%, CASA 45%, NIM 3.65%-3.7%, ROA 1.2%-1.25%, ROE 15%-16%, GNPA below 3%.

• Management expects NIM to improve in Q4 as deposit repricing completes and will continue investing in technology and digital banking.

• Emphasis on growing retail, agriculture, and MSME segments, and expanding outside J&K.

• Loan-to-deposit ratio targeted to rise to 76%-78% medium term, subject to regulatory compliance.

• Additional provisions made for sub-standard and doubtful assets above RBI norms to enhance prudence.