Jammu and Kashmir Bank, one of India’s oldest private sector lenders, is showing signs of renewed momentum after a period of moderated growth. As of Q3FY26, the bank reported a loan book of Rs 1.13 lakh crore, with a diversified mix of 65.1% retail advances and 34.9% corporate advances.
The Government of Jammu & Kashmir remains the majority shareholder, though the bank continues to operate autonomously under the Banking Regulation Act’s private sector classification. Its strong regional presence is supported by 1,017 branches, including 841 in J&K, 37 in Ladakh and 139 spread across 20 other states and Union Territories.
Growth momentum returns
Advances growth, which slowed from 17% in FY23 to 11% in FY25 and further to 6% in Q1FY26 amid regional disruptions and an industry-wide slowdown, has begun to recover. Growth improved to 9% in Q2FY26 and accelerated to 18% in Q3FY26, suggesting the slowdown may have bottomed out.
With operating conditions stabilising and credit demand improving — particularly in auto and personal loans — the bank is expected to maintain an upward growth trajectory. Geographically, advances remain diversified, with J&K and Ladakh contributing 66.5% and the rest of India 33.5%.
Margins and asset quality strengthen
Net interest margins (NIMs) dipped to 3.56% in Q2FY26 following the RBI’s cumulative 125 basis points rate cuts but edged up to 3.62% in Q3FY26. Analysts expect further improvement as deposit repricing and liability management measures take effect.
Asset quality has improved markedly over five years, with GNPA and NNPA declining to 3.0% and 0.7% respectively from 9.7% and 3.0% in FY21. Slippages have reduced to 0.5%, while credit costs have remained benign.
Led by Managing Director and CEO Amitava Chatterjee, the bank continues to focus on governance and risk discipline. With return ratios improving — ROA at about 1.3% and ROE near 14.6% — analysts value the stock at 0.9x FY27 estimated P/ABV, setting a target price of Rs 147 and maintaining a “Buy” recommendation.
