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

Executive summary

• Achieved record annual net profit of INR 2,082 crores for FY25, marking a third consecutive year of lifetime high profits, with 7.8% YoY growth (37% YoY excluding a one-off gratuity reversal in FY24).

• 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.

• Board approved a 215% dividend for FY25, third consecutive year of shareholder rewards; proposed dividend of ₹2.15 per share for FY25, subject to AGM approval.

Financial highlights

• Standalone net profit for FY25 was ₹2,082.46 crore, up from ₹1,767.27 crore in FY24; Q4 FY25 net profit was ₹584.54 crore.

• Operating profit reached INR 2,930 crores, up 28.7% YoY; standalone total income for FY25 was ₹13,672.67 crore, up from ₹12,037.85 crore in FY24.

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

• Net interest income rose 11.3% YoY; other income surged 38% YoY, crossing INR 1,000 crores, mainly due to recoveries from written-off accounts.

• Term deposits grew 18% YoY; CASA ratio at 47.01%, among the best in the industry despite sector-wide declines.

Outlook and guidance

• FY26 guidance: credit growth at 12%, deposit growth at 10%, CASA ratio target of 48%, NIM expected at 3.7%-3.8%, ROA to be maintained at 1.32%, ROE between 16%-17%, and 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 considers a downward revision in India's economic growth forecast and sector trends.