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

Executive summary

• Achieved record annual net profit of INR 2,363 crore for FY 2026, marking the fourth consecutive year of record profitability despite challenges in core geography and global uncertainties.

• Q4 net profit reached nearly INR 800 crore, up 36% quarter-on-quarter, with most market guidance parameters surpassed except for a marginal NIM shortfall due to RBI rate cuts and deposit competition.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved by the Board on May 5, 2026.

• Auditor's reports for both standalone and consolidated results express unmodified opinions, confirming compliance with regulatory and accounting standards.

Financial highlights

• Standalone net profit for FY26 was ₹2,363.48 crore, up from ₹2,082.46 crore year-over-year; consolidated net profit was ₹2,359.51 crore.

• Standalone total income for FY26 reached ₹14,085.05 crore; consolidated total income was ₹14,101.38 crore.

• Gross NPA ratio improved to 2.50% from 3.37% year-over-year; net NPA ratio improved to 0.64% from 0.79%.

• Provision coverage ratio stood at 90.33% as of March 31, 2026.

• NIM for FY 2026 at 3.60%, slightly below guidance due to 125 bps RBI rate cuts and deposit competition.

Outlook and guidance

• FY 2027 guidance: credit growth 12%, deposit growth 10%, CASA at 45%, NIM around 3.5%, ROA at current levels (~1.37%), ROE around 16%, gross NPA below 2.25%.

• Conservative guidance due to geopolitical tensions and macroeconomic uncertainties, but management aims to overdeliver.

• No dividend proposed for FY26.

• Credit cost expected to remain low at 0.1%-0.2%, not factoring in ECL provisions.

• Bank expects positive outcome from legal contestation of GST demand.