Jammu and Kashmir Bank (J&KBANK) Q3 24/25 earnings summary

Executive summary

• Achieved record annual net profit of INR 2,082 crore for FY25, with Q3 FY25 standalone PAT at ₹531.5 crore, up 26.2% YoY, and consolidated Q3 FY25 PAT at ₹528.60 crore.

• Operating profit for Q3 FY25 was ₹748.11 crore, up 35.9% YoY, and annual operating profit reached INR 2,930 crore, up 28.7% YoY.

• Board approved a 215% dividend for FY25 and results were reviewed by the Audit Committee and statutory auditors.

• Maintained strong capital adequacy with CRAR at 15.09% (standalone) and 15.18% (consolidated) as of Dec 2024.

• Asset quality improved: GNPA at 3.37%-4.08%, NNPA at 0.79%-0.94%, and provision coverage ratio above 89%.

Financial highlights

• Net interest income rose 11.3% YoY for FY25; Q3 FY25 NII up 17.8% YoY to ₹1,508.7 crore.

• Deposits grew 9.7%-10.2% YoY, advances up 7.0%-11.1% YoY, and term deposits grew 18% YoY.

• CASA ratio ranged from 47.01% to 51.8% as of Dec 2024, among the best in the industry.

• Cost-to-income ratio improved to 57.28%-57.73% for the year.

• Book value per share increased to ₹114.31 as of Dec 2024.

Outlook and guidance

• FY26 guidance: credit growth of 12%, deposit growth of 10%, CASA ratio target of 48%, NIM guidance of 3.7%-3.8%, ROA at 1.32%, ROE between 16%-17%, and GNPA below 3%.

• Focus on retail, agriculture, MSME, and expansion beyond J&K and Ladakh.

• Continued investments in technology and digital banking to enhance efficiency.

• Business growth outlook is moderate, factoring in a downward revision in India's economic growth forecast.

• Adoption of new RBI investment classification and valuation guidelines from April 1, 2024.