Jammu & Kashmir Bank Ltd (BOM:532209)

Q1 2027 Jammu and Kashmir Bank Ltd Earnings Call Transcript

Jul 29, 2026 / 10:30 AM GMT

Release Date Price: ₹154.6 (-12.78%)

Transcript

Key Points

Positve

Jammu & Kashmir Bank Ltd (BOM:532209) delivered robust business growth, with deposits and advances growing 16.75% and 25.44% year-on-year, respectively, outpacing the system growth.
The bank achieved a significant milestone by crossing the ₹3 trillion business figure, completing the journey from ₹2 trillion to ₹3 trillion in just over three years.
Asset quality continued to improve, with GNPA and NNPA at 2.37% and 0.60% respectively, and gross slippages were controlled below 0.5% for the quarter.
The bank's diversification strategy is paying off, with the Rest of India division now contributing around 26% of the business, up from less than 20% a year ago, without compromising its dominant 61.13% market share in its home territory.
The bank maintains a strong capital position with a Capital Adequacy Ratio of 16.67% and CET1 at 13.91%, and has seen increased institutional shareholding, with FIIs and domestic mutual funds holding 15.74%.
Management expects credit growth of 18-20% for the full year, with a strategic shift towards higher-yielding retail assets expected to improve margins and profitability in the coming quarters.

Negative

Net profit for the quarter declined year-on-year to ₹424 crores, impacted by higher standard asset provisioning due to healthy advances growth and a one-off reversal in the corresponding period last year.
Net Interest Margin (NIM) compressed to 3.28% due to a sharp decline in yield on advances (8.56% vs 9.35% YoY) and only a marginal moderation in the cost of deposits.
Other income was subdued due to lower recoveries from technically written-off accounts, which are timing-dependent and did not materialize in the quarter.
The bank's CASA ratio declined sequentially to 42.06%, as term deposits grew faster than CASA deposits, reflecting an industry-wide trend and increased competition for low-cost deposits.
The bank took on higher-cost bulk deposits (₹6,700 crores) and made some low-yielding corporate loans to maintain growth momentum, which temporarily pressured margins and profitability.
The operating environment remains challenging due to elevated global uncertainty, geopolitical tensions, and intense competition for deposits, which could continue to pressure the bank's financial performance.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

JKBK.NS - Jammu and Kashmir Bank Ltd
Q1 2027 Jammu and Kashmir Bank Ltd Earnings Call
Jul 29, 2026 / 10:30AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and Gentlemen, Good day and welcome to Jammu and Kashmir Bank Q1 FY27 Constants Call hosted by MK Global Financial Service Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during this conference call, please signal an operator by pressing then 0 on your touchstone phone.

I now hand the conference over to Mr. Avinash Singh from MK Global Financial Service Limited.

Thank you and over to you, sir.

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Unidentified_2 [2]
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