The Jammu & Kashmir Bank Limited (J&KBANK)
₹119.07 +1.60% last close, 2 Nov
Snapshot
The Jammu & Kashmir Bank Limited closed at ₹119.07 on 2 Nov 2026, 12.8% below its 200-day average, with an RSI(14) of 34.9 and a P/E of 5.55. On the daily chart it is in a strong downtrend, with a technical score of 9/100 (strong bearish). In the quarter ended September 2026, total income grew 17.3% and net profit grew 11.7% from a year earlier. Data as of 2 Nov 2026.
Price
- Price
- ₹119.07
- Day change
- +1.60%
- Market Cap
- ₹13,112 Cr
- 52-week range
- ₹97.35 – ₹201.75
- From 52-week high
- -40.98%
Financials2 Nov 2026
- P/E
- 5.55
- P/B
- 0.75
- ROE
- 13.5%
- Gross NPA %
- 2.23%
- Net NPA %
- 0.51%
- YoY qtr sales growth
- 17.3%
- YoY qtr profit growth
- 11.7%
- Dividend Yield
- 1.80%
Latest quarter Sep 2026 · Consolidated
OwnershipSep 2026
- Promoters
- 59.40%
- FIIs
- 11.62%
- DIIs
- 7.42%
Shareholding for the quarter ended September 2026; changes in percentage points.
Technicals2 Nov 2026
- Trend
- Strong Downtrend
- Technical score
- 9/100 · Strong bearish
- MACD
- Bearish
- RSI (14)
- 34.94
- ADX (14)
- 37.41
- SuperTrend
- Bearish
- vs 20-day SMA
- -9.32%
- vs 50-day SMA
- -15.25%
- vs 200-day SMA
- -12.75%
- RS rating
- 55.00
- Nearest support
- ₹106.15
- Nearest resistance
- ₹125.21
Exchange activity2 Nov 2026
- Delivery
- 49.74% vs 44.12% average
- Volume vs its average
- 0.4×
Events
- Latest results
- Q2 FY27, filed 22 Oct 2026
- Board meeting filing
- 22 Oct 2026
Exchange data. Each figure as its own page shows it; the dates are the data's. Information only, not investment advice.
📈 Share price & events
Q2 FY27 results
The Jammu & Kashmir Bank Limited reported Q2 FY27 results on 22 Oct 2026: net interest income ₹1,504 Cr (+4.8% year on year, +0.4% on the previous quarter), and net profit ₹553 Cr (+11.7% year on year).
| Q2 FY27 (₹ Cr) | Value | YoY vs Q2 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹1,504 | +4.8% | +0.4% |
| Operating profit | ₹790 | — | +12.1% |
| Net profit | ₹553 | +11.7% | +28.9% |
| EPS (₹) | 5.02 | +11.8% | +29.0% |
| Gross NPA | 2.23% | — | — |
- Profit +12% above its own trend
- Gross NPA down 109 bps YoY
Against its own trend: net profit of ₹553 Cr was +12.0% against the ₹494 Cr its recent growth pointed to (above trend). This is a statistical baseline, not an analyst estimate.
Share price since the results: -12.1% (close before the filing to the latest close).
J&KBANK delivery percentage
NSE end-of-day data for
On Mon, 2 Nov 2026, 49.74% of the J&KBANK shares traded on NSE were taken to delivery, against the stock's own 20-session average of 44.12%. That is close to its usual level. Volume was 0.4 times its average, well below normal.
Delivery in the last 5 sessions: 39.5% · 35.6% · 35.2% · 48.1% · 49.7%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
The Jammu & Kashmir Bank received major regulatory relief as CBIC issued circular No: 266/12/2026-GST dated October 28, 2026, clarifying that internal Funds Transfer Pricing (FTP) mechanisms are treated as interest and exempt from GST. Previously, the bank was served with two substantial tax demands totaling ₹8,330.87 Cr in tax plus matching penalties of ₹8,330.87 Cr (total disputed exposure exceeding ₹16,661 Cr). With the CBIC circular explicitly affirming that notional FTP interest is exempt, the bank plans to pursue quashing these demands before appropriate forums.
- CBIC circular No: 266/12/2026-GST clarifies notional interest in Funds Transfer Pricing is exempt under Notification No. 12/2017-Central Tax (Rate)
- Past demand order dated February 04, 2025 totaled ₹8,130.66 Cr GST liability plus an equal ₹8,130.66 Cr penalty
- Subsequent demand order dated March 23, 2026 totaled ₹200.21 Cr GST liability plus an equal ₹200.21 Cr penalty
- Total disputed tax and penalty exposure of over ₹16,661 Cr exceeded the bank's entire market cap of ₹13,409 Cr
J&K Bank released its Q2 FY27 earnings call transcript, highlighting a net profit of ₹546 crore, marking a ~29% sequential rebound. Asset quality improved to decadal-best levels with GNPA at 2.23% and NNPA at 0.51%, while the provision coverage ratio reached 91.76%. The bank disclosed plans to raise ₹1,000 crore via equity and ₹500 crore through debt, together representing ~11% of its current market cap. Management also guided that expected credit loss (ECL) transition hit figures will be finalized and presented to the board by December 2026.
- Q2 Net Profit rose to ₹546 crore, up ~29% sequentially, with operating profit at ₹789 crore (up 27% YoY).
- Total business grew 19.4% YoY to ₹3.10 lakh crore, driven by 23.7% advance growth and 16.3% deposit growth.
- Decadal-best asset quality metrics with GNPA at 2.23%, NNPA at 0.51%, and PCR improving to 91.76%.
- Capital Adequacy Ratio stood at 16.57% (CET-1 at 13.88%); plans underway to raise ₹1,000 crore equity and ₹500 crore debt.
- CASA ratio maintained at 41.97% while Cost of Deposits rose to 4.85%.
Jammu & Kashmir Bank released its Q2 FY27 earnings call details, reporting a net profit of ₹546 crore, marking a ~29% sequential increase and double-digit YoY growth. Total business expanded 19.4% YoY to ₹3.10 lakh crore, driven by 23.7% advance growth and 16.3% deposit growth. Asset quality reached decadal bests with Gross NPA declining to 2.23%, Net NPA at 0.51%, and PCR improving to 91.76%. The bank also outlined plans to raise ₹1,000 crore in equity (~6.7% of market cap) and ₹500 crore in debt at an opportune time.
- Q2 PAT stood at ₹546 crore, jumping ~29% QoQ with operating profit at ₹789 crore (up 27% YoY)
- Total business reached ₹3.10 lakh crore, rising 19.4% YoY (advances up 23.7%, deposits up 16.3%)
- Asset quality improved to decadal bests: GNPA at 2.23%, NNPA at 0.51%, and PCR at 91.76%
- Capital adequacy stood at 16.57% (CET 1 at 13.88%), with plans to raise ₹1,000 crore equity and ₹500 crore debt
Jammu & Kashmir Bank released its investor presentation for Q2 FY27, reporting a net profit of ₹546.36 crore, up 10.6% YoY and 28.8% QoQ. Total business surpassed ₹3.10 lakh crore, supported by net advances growing 24.8% YoY to ₹1,31,234 crore and deposits increasing 16.3% YoY to ₹1,76,796 crore. Asset quality showed consistent improvement with GNPA dropping to 2.23% (down from 3.32% in Q2 FY26) and NNPA falling to 0.51%. However, Net Interest Margin (NIM) compressed to 3.17% from 3.56% a year ago, while the Cost to Income Ratio improved to 56.57%.
- Q2 FY27 net profit grew 10.6% YoY to ₹546.36 crore compared to ₹494.11 crore in Q2 FY26
- Gross NPA declined 109 bps YoY to 2.23%, with Net NPA improving to 0.51% and PCR reaching 91.76%
- Net advances surged 24.8% YoY to ₹1,31,234 crore, while total deposits expanded 16.3% YoY to ₹1,76,796 crore
- Net Interest Margin (NIM) contracted to 3.17% compared to 3.56% in Q2 FY26, though Cost to Income Ratio improved to 56.57% from 60.79%
- Capital adequacy strengthened with CRAR at 16.57% (CET-1 at 13.88%) vs 15.27% in Q2 FY26
The Jammu & Kashmir Bank Limited has submitted its Statement of Deviation(s) or Variation(s) under Regulation 32 of SEBI LODR for the quarter ended September 30, 2026. The bank confirmed zero deviation or variation in the utilisation of funds raised through a preferential issue. The entire amount of ₹250 crores raised on March 20, 2017, has been fully utilised towards long-term capital requirements, business growth, and Capital Adequacy Ratio norms as per RBI guidelines.
- Preferential issue fundraise of ₹250 crores from March 20, 2017, fully utilised with zero deviation reported.
- Statement filed for the quarter ended September 30, 2026, with nil remarks or comments from the Audit Committee.
- Original and modified fund allocation both stand at ₹250 crores to support bank business growth and maintain Capital Adequacy Ratios.
The Jammu & Kashmir Bank Limited has submitted its half-yearly Related Party Transactions (RPT) disclosure under Regulation 23(9) of SEBI LODR for the period April 1, 2026, to September 30, 2026. The total value of related party transactions during the half-year stood at ₹82.51 crore, representing approximately 0.6% of TTM revenue (₹14,345 crore). The primary transaction was interest paid to associate Jammu and Kashmir Grameen Bank on fixed deposits amounting to ₹76.93 crore. Key managerial remuneration across current and former executives accounted for ₹2.95 crore.
- Total related party transactions during H1 FY27 amounted to ₹82.51 crore
- Interest paid on fixed deposits to associate Jammu and Kashmir Grameen Bank totaled ₹76.93 crore
- Remuneration paid to MD & CEO Amitava Chatterjee was ₹0.88 crore, alongside ₹0.82 crore in past variable pay to Ex-MD & CEO Baldev Prakash
- Transactions with 100% subsidiary JKB Financial Services Ltd included ₹0.93 crore in interest/commission received and ₹0.39 crore in interest paid
- Total transactions represent ~0.57% of TTM revenue of ₹14,345 crore
The Jammu & Kashmir Bank Limited approved its integrated standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. Auditors issued an unmodified review report while noting specific accounting impacts, including a ₹7.53 crore PAT gain for H1 FY27 from revising PSLC recognition to a systematic basis over the validity period. Additionally, ₹28.88 crore was credited to other income as prior period items relating to unlisted equity investments valued under FVTPL, and ₹263.63 crore was transferred from the Investment Fluctuation Reserve to General Reserve. The bank also reported zero deviation in the utilisation of earlier capital raises of ₹750 crore (QIP) and ₹274.75 crore (ESPS).
- Accounting policy change on PSLC amortisation boosted H1 FY27 Profit after Tax by ₹7.53 crore
- Appreciation of ₹28.88 crore on FVTPL unlisted equities included in Other Income as prior period items
- Transferred ₹263.63 crore from Investment Fluctuation Reserve to General Reserve per RBI guidelines
- Confirmed full utilisation with zero deviation across previous ₹750 crore QIP and ₹274.75 crore ESPS proceeds
- Branch returns and concurrent audit reviews covered over 77% of total advance portfolios
The Jammu & Kashmir Bank reported its Q2 FY27 results with Net Interest Income rising 5% YoY to ₹1,502 crore and Other Income doubling to ₹314.90 crore. Operating profit for the half year grew over 15% YoY to ₹1,492 crore, backed by strong cost control with the cost-to-income ratio improving to 56.57%. Asset quality showed significant improvement, reaching decadal bests with Gross NPA declining 109 bps YoY to 2.23% and Net NPA falling to 0.51%. Total business grew 19.38% YoY to ₹3,10,347 crore, driven by 23.72% growth in gross advances and a healthy CRAR of 16.57%.
- Net Interest Income rose 5% YoY to ₹1,502 Cr, while Other Income doubled YoY to ₹314.90 Cr
- Gross NPA declined 109 bps YoY to 2.23% and Net NPA improved to 0.51%, reaching decadal best levels
- Provision Coverage Ratio (PCR) improved to 91.76% as of September 30, 2026
- Total advances grew 23.72% YoY to ₹1,33,551 Cr, while deposits expanded 16.30% to ₹1,76,796 Cr
- Capital Adequacy Ratio (CRAR) strengthened to 16.57% compared to 15.27% a year earlier
The Jammu & Kashmir Bank Limited submitted the minutes of its 88th Annual General Meeting held on September 22, 2026. The bank reiterated its FY26 performance, including an all-time high net profit of ₹2,363.47 crore (up 13.5% YoY) and crossing the ₹3 trillion total business milestone in Q1 FY27. Leadership articulated a long-term aspiration of reaching ₹5 trillion in business and ₹5,000 crore in annual profit by 2030. Key shareholder resolutions approved included the appointment of Mr. Tsewang Tharchin as Director and noting the retirement of Mr. R. K. Chhibber.
- Bank reported FY26 net profit of ₹2,363.47 crore, up 13.5% YoY, on total business of ₹2,90,341 crore
- Total business crossed the ₹3 trillion milestone in June 2026 (Q1 FY27)
- Gross NPA declined to 2.50% from 3.37%, while Net NPA improved to 0.64% from 0.79%
- Capital Adequacy Ratio reached 16.55% with CET1 at 13.54%
- Set an institutional target of ₹5 trillion in business and ₹5,000 crore in annual profit by 2030
The Jammu & Kashmir Bank Limited has completed the sale of a 0.5% equity stake in PNB MetLife India Insurance Company Limited to MetLife International Holdings, LLC. The transaction was finalized on October 16, 2026, at a price of ₹117.20 per share, yielding total gross proceeds of ₹120,09,89,186. The deal consideration represents roughly 5.2% of the bank's TTM PAT of ₹2,304 crore and 0.8% of its current market capitalization. The transaction was executed via an escrow mechanism involving Barclays entities without any special rights granted.
- Completed sale of 0.5% equity stake in PNB MetLife India Insurance Company Limited
- Total transaction consideration stands at ₹120,09,89,186 (~₹120.10 crore)
- Transaction realized at ₹117.20 per equity share (face value ₹10)
- Purchaser MetLife International Holdings, LLC remitted full consideration on October 16, 2026
- Proceeds equal ~5.2% of bank's TTM net profit of ₹2,304 crore
The Jammu & Kashmir Bank reported provisional business figures for the quarter ended September 30, 2026, with total business growing 19.38% YoY to ₹3,10,347 crore. Gross advances led the expansion, surging 23.72% YoY to ₹1,33,551 crore, while total deposits increased 16.29% YoY to ₹1,76,796 crore. However, CASA deposit growth lagged at 6.45% YoY (₹74,277 crore), leading to a 388 bps contraction in the CASA ratio to 42.01% compared to 45.89% a year ago. Gross investments inched up 2.25% YoY to ₹46,052 crore.
- Total Business rose 19.38% YoY to ₹3,10,347 crore as of Sept 30, 2026 (vs ₹2,59,973 crore as of Sept 30, 2025)
- Gross Advances grew 23.72% YoY to ₹1,33,551 crore compared to ₹1,07,943 crore in the prior year
- Total Deposits grew 16.29% YoY to ₹1,76,796 crore, while CASA deposits rose 6.45% YoY to ₹74,277 crore
- CASA ratio dropped by 388 bps YoY from 45.89% to 42.01%
- Gross Investments grew 2.25% YoY to ₹46,052 crore from ₹45,040 crore
The Jammu & Kashmir Bank Limited has submitted its quarterly compliance report under Regulations 6 and 7 of the SEBI (LODR) Regulations, 2015 for the quarter ended September 2026. The bank confirmed Mohammad Shafi Mir (Membership No. FCS 8516) as the Compliance Officer and Company Secretary. Bigshare Services Private Limited continues as the Registrar and Share Transfer Agent (RTA), having been appointed on 01-03-2026. This is a standard quarterly regulatory submission with no impact on the bank's operational performance or financials.
- Compliance report filed under Regulation 6 and 7 of SEBI LODR for the quarter ended September, 2026
- Mohammad Shafi Mir serves as Company Secretary and Compliance Officer (Membership No. FCS 8516)
- Bigshare Services Private Limited designated as the RTA, appointed on 01-03-2026
Brickwork Ratings has reviewed and reaffirmed the credit rating for The Jammu & Kashmir Bank Limited's Additional Tier I (AT-1) Bonds (under Basel III) worth Rs 1,000.00 crore at 'BWR A/Stable'. The rating on the bank's Basel III Tier II Bonds was formally withdrawn as the outstanding amount stands at Rs 0.00 crore. The Rs 1,000 crore rated AT-1 facility represents approximately 6.0% of the bank's net worth of Rs 16,750 crore.
- Brickwork reaffirmed the rating on Rs 1,000.00 crore Additional Tier I Bonds at 'BWR A/Stable'
- Tier II Bonds (under Basel III) rating withdrawn with Rs 0.00 crore outstanding balance
- Total rated instrument amount stands at Rs 1,000.00 crore
- Rated AT-1 amount represents ~6.0% of net worth (Rs 16,750 Cr)
Shareholders of The Jammu & Kashmir Bank Limited approved the appointment of Mr. Tsewang Tharchin, IA&AS, as a Rotational Director on the Board at the 88th AGM held on September 22, 2026. Mr. Tharchin is a 2007-batch IA&AS officer currently serving as Commissioner Secretary, Finance Department for the Ladakh Administration. His appointment regularizes his board position as a non-executive director liable to retire by rotation. The filing is a standard corporate governance change and carries no direct financial or operational impact on the bank's Rs 14,345 Cr TTM revenue base.
- Appointment approved at the 88th Annual General Meeting held on September 22, 2026
- Mr. Tsewang Tharchin is a 2007 batch officer of the Indian Audit and Accounts Service (IA&AS)
- Currently serves as Commissioner Secretary, Finance Department, Ladakh Administration (since 06/07/2026)
- Appointment regularized as a Director liable to retire by rotation with effect from September 22, 2026
Jammu & Kashmir Bank has executed an Escrow Agreement to operationalize the sale of a 0.5% equity stake in PNB Metlife India Insurance Company Limited to MetLife International Holdings, LLC. The total transaction value is ₹120.10 crore (₹120,09,89,186) at a sale price of ₹117.20 per equity share. Barclays Wealth Trustees (India) Private Limited and Barclays Bank PLC have been appointed as the share and cash escrow agents, respectively. The divestment proceeds of ~₹120.10 crore represent approximately 0.8% of the bank's TTM revenue of ₹14,345 crore and will contribute cash to its capital base.
- Executed Escrow Agreement on September 21, 2026, following the Share Purchase Agreement dated July 17, 2026
- Agreed to sell a 0.5% stake in PNB Metlife India Insurance Company Limited
- Divestment consideration fixed at ₹117.20 per equity share, aggregating to ₹120,09,89,186
- Barclays Wealth Trustees and Barclays Bank PLC appointed as Share and Cash Escrow Agents, respectively
Company profilewritten 14 Dec 2025
Financial Performance
Revenue Growth by Segment
Total income reached INR 13,672.67 Cr in FY25, a 13.58% YoY increase. Interest income grew 11.80% YoY to INR 12,535.86 Cr, while non-interest income surged 37.7% to INR 1,136.81 Cr. In Q1 FY26, Net Interest Income grew 6.99% YoY to INR 1,465 Cr.
Geographic Revenue Split
The bank exhibits high regional concentration with 87.90% of deposits and 67.30% of advances originating from the J&K and Ladakh regions as of March 31, 2025. The 'Rest of India' (ROI) segment contributes approximately 30% of the total loan book but is growing faster at 16.1% YoY compared to 5.9% in JKL.
Profitability Margins
Net Interest Margin (NIM) improved to 3.6% in FY25 from 3.5% in FY24, though it compressed to 3.72% in Q1 FY26 from 3.86% in Q1 FY25 due to repo rate cuts. Return on Assets (RoA) improved to 1.3% in FY25 from 1.2% in FY24. Return on Equity (RoE) stood at 14.6% in Q1 FY26.
EBITDA Margin
Operating profit is supported by a cost-to-income ratio that improved to 60.78% in Q1 FY26 from 61.96% in Q1 FY25. Operating expenses for FY25 were INR 4,000.84 Cr, remaining flat as a percentage of average total assets at 2.5%.
Capital Expenditure
Not explicitly disclosed as a single CAPEX figure, but the bank is investing in Business Process Reengineering (BPR) and technology standards to streamline operations across its 1,019 branches and 1,424 ATMs.
Credit Rating & Borrowing
The bank maintains a 'Stable' outlook from CARE, BWR, and CRISIL. Borrowing costs are reflected in interest expended, which rose 12.21% YoY to INR 6,742.04 Cr in FY25. The bank has access to call money markets, RBI repo, and MSF for liquidity.
Operational Drivers
Raw Materials
In banking, the primary 'raw material' is the cost of funds/deposits. Interest expended represents 49.3% of total income. CASA deposits are a critical low-cost source, with the bank showing 9 consecutive quarters of sequential CASA ratio improvement.
Import Sources
Sourced domestically, primarily from the UTs of Jammu & Kashmir and Ladakh, which provide 87.8% of the bank's total deposit base.
Key Suppliers
The bank's 'suppliers' are its retail and government depositors. The Government of UT J&K and Ladakh is the majority shareholder (59.40%) and a key provider of business as the bank acts as their exclusive agent.
Capacity Expansion
Current capacity includes 1,019 branches and 1,424 ATMs as of June 30, 2025. The bank is expanding its retail portfolio across India to achieve a 50-50 loan book split between JKL and the Rest of India within 2-3 years.
Raw Material Costs
Interest expended on deposits and borrowings increased 12.21% to INR 6,742.04 Cr in FY25. Management indicates deposit rates have peaked, suggesting a stabilizing cost of funds moving forward.
Manufacturing Efficiency
Productivity is measured by the cost-to-income ratio (60.78% in Q1 FY26) and branch network utilization, with 54.4% of branches located in rural areas to drive financial inclusion.
Logistics & Distribution
Distribution is handled through its 1,019 branches and 1,424 ATMs, with a strategic focus on expanding the retail footprint in the Rest of India to diversify risk.
Strategic Growth
Expected Growth Rate
16.10%
Growth Strategy
The bank aims to achieve a 50-50 loan book split between JKL and the Rest of India (currently 68:32) by focusing on retail lending and AAA-rated PSUs/corporate borrowers. It is also implementing Business Process Reengineering (BPR) to adopt best-in-class technology.
Products & Services
Retail loans, corporate credit, MSME financing, agricultural loans, and bancassurance products (Life and General Insurance).
Brand Portfolio
J&K Bank, JKB Financial Services Limited (wholly owned subsidiary), and Jammu and Kashmir Grameen Bank Limited (sponsored bank).
New Products/Services
Expansion of the retail credit portfolio in the Rest of India and enhanced bancassurance tie-ups with LIC, PNB Metlife, and Bajaj Allianz.
Market Expansion
Targeting a 50% contribution to credit growth from the Rest of India over the next 2-3 years, expanding beyond its current presence in 20 states and 4 UTs.
Market Share & Ranking
Holds a dominant market share in J&K and Ladakh (majority of credit and deposits) but remains a small-sized bank nationally with less than 1% market share.
Strategic Alliances
Bancassurance partnerships with LIC, PNB Metlife, Bajaj Life, Bajaj Allianz General Insurance, Iffco Tokio, and New India Assurance.
External Factors
Industry Trends
The banking sector in J&K is robust with 2,197 total branches. Industry-wide CASA ratios are falling (to ~36%), but J&K Bank is successfully increasing its CASA ratio sequentially.
Competitive Landscape
Competes with 12 public sector banks, 11 private sector banks, and 10 cooperative banks within the J&K region.
Competitive Moat
Durable moat derived from its status as the 'Agency Bank' for the J&K and Ladakh governments and its 80-year track record, which provides a low-cost, loyal retail deposit base (88% from the home region).
Macro Economic Sensitivity
Highly sensitive to the regional GDP of J&K and Ladakh. Interest rate sensitivity is high, with a 16 basis point margin decline noted in recent quarters following rate adjustments.
Consumer Behavior
Increasing demand for retail credit and digital banking services, which the bank is addressing through its BPR and ROI expansion strategy.
Geopolitical Risks
Regional socio-political sensitivities in the UTs of J&K and Ladakh can lead to business disruptions, impacting asset quality and credit growth.
Regulatory & Governance
Industry Regulations
Subject to RBI guidelines including LCR (130.16% vs 100% req), NSFR (123.31% vs 100% req), and SLR (21% vs 18% req).
Environmental Compliance
The bank has integrated an ESG risk management framework to monitor environmental and social risks within its credit portfolio.
Taxation Policy Impact
The bank's PAT of INR 2,082 Cr in FY25 is reported after applicable corporate taxes.
Legal Contingencies
A penalty of INR 99.30 Lakh was imposed on December 5, 2025, for non-compliance with SEBI Regulation 30. Asset quality remains a monitorable with Gross NPA at 3.4%.
Risk Analysis
Key Uncertainties
Socio-political instability in J&K and Ladakh poses a significant risk to the 67.3% of advances housed there. NIM compression due to further repo rate cuts is a 10-15% potential impact risk on earnings.
Geographic Concentration Risk
70.6% of advances and 87.8% of deposits are concentrated in the J&K region as of June 30, 2025.
Third Party Dependencies
Dependency on the Government of UT J&K and Ladakh for 59.4% ownership and strategic business volume.
Technology Obsolescence Risk
Cybersecurity threats and customer data breaches are identified as key social/operational risks that could affect reputation and compliance.
Credit & Counterparty Risk
Corporate portfolio shows improvement with GNPA falling to 5.3% (March 2025) from 7.1% (March 2024). 76.87% of corporate borrowers are rated A or above.
