Q3 2026 Jammu and Kashmir Bank Ltd Earnings Call Transcript
Key Points
- Jammu & Kashmir Bank Ltd (BOM:532209) reported a significant improvement in asset quality, with Gross NPA reduced to 3% and Net NPA at 0.68%, reflecting effective portfolio monitoring.
- The bank achieved a robust credit growth of 17.3% YoY, surpassing the industry average, with balanced contributions from both retail and corporate segments.
- Net profit for the quarter increased by 18.7% QoQ, reaching INR 587 crores, despite industry-wide margin pressures.
- The bank maintained a strong CASA ratio of 44.10%, which is higher than the industry average, with a particularly strong performance in Jammu and Kashmir.
- Jammu & Kashmir Bank Ltd (BOM:532209) has a healthy capital adequacy ratio (CRAR) of 15%, with plans to raise additional capital to support future growth.
- The bank's CASA growth was lower than term deposits, reflecting a broader industry trend towards high-yielding term deposits and alternate investments.
- Net interest income was slightly lower this quarter, and the bank faces challenges in optimizing the cost of funds amidst capital raising plans.
- The bank had to take an unforeseen hit of INR 180 crores due to impairment provision from the amalgamation of RRBs and INR 68 crores for advances restructured under the Special Rehabilitation Package 2025.
- There is a stress on deposit growth, which could limit the bank's ability to achieve higher credit growth targets.
- The bank's yield on advances has declined, raising concerns about potential underpricing of loans in a competitive market.
Ladies and gentlemen, good evening, and welcome to the Q3 FY 2026 conference call of Jammu and Kashmir Bank Limited. (Operator Instructions) Please note that this conference is being recorded. We have with us today from the bank, Mr. Amitava Chatterjee, Managing Director and Chief Executive Officer, along with his management team. I now hand the conference over to Mr. Chatterjee for his opening remarks. Thank you, and over to you, sir.
Thank you, Swapnali. Good evening, and a warm welcome to all the investors, analysts, other stakeholders joining us today for the J&K Bank December 2025 earnings call. Before starting, on behalf of J&K Bank, I wish you all a very happy and prosperous new year.
Now let me introduce my fellow colleagues from the bank's senior management who are accompanying me on this call. Executive Director, Mr. Sudhir Gupta; Chief General Managers, Mr. Sunit Kumar and Mr. Imtiyaz Ahmad Bhat; Retail Banking Head, Mr.
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