Asset Quality Improvement
Expected: Q3 FY26HIGH confidence
What: GNPA: 3%
“We are pleased to inform that we are on the brink of achieving our GNPA guidance of below 3% for March 2026... recorded at 3%.”
Jammu and Kashmir Bank Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +38.7%Average11w Streak
In , Jammu and Kashmir Bank Ltd (Banks - Private) is outperforming Nifty 500 with +38.7% relative strength. Fundamentals: Average. On a 11-week streak.
Jammu and Kashmir Bank Ltd Key Facts
- PE Ratio
- 6.6x
- Market Cap
- ₹15,610 Cr
- PAT Growth YoY
- +37%
- Revenue Growth YoY
- +2%
- RS vs Nifty 500
- +38.7%
PB: Mid ContractionStrong Opportunity
What's Happening
💎PB falling while earnings hold — value emerging
🌐FII stake increased 1.4% this quarter
💰Trading 112% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Asset Quality Improvement
Q3 FY26HIGH
2. Market Share Gains
Q3 FY26MEDIUM
3. Advances growth of 17.3% Y-o-Y vs guidance of 12%.
HIGH
Key Risks
1. RBI's cumulative rate cuts of 125 bps during calendar year 2025 have pressured m
MEDIUM2. Stress on deposit growth due to shift of household savings to mutual funds
LOWSector-Specific Signals
Net Interest Margin3.62%
Gross NPA Ratio3%
Net NPA Ratio0.68%-26 bps
CASA Ratio44.10%
Key Numbers
PAT Growth YoY
+37%
Stable
Revenue YoY
+2%
Decelerating
Price to Book
0.9
Current Price
₹142
Dividend Yield
1.52%
Fundamental Score
56/100
Average
3Y PAT CAGR
+26%
Market Cap
15.6K Cr
Valuation
Significantly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Jammu and Kashmir Bank Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Market Share Gains
Expected: Q3 FY26MEDIUM confidence
What: Advances Growth: 17.3%
“Our deposits have grown by 2.5% sequentially... Growth in advances has been recorded at 7.7% Q-o-Q and 17.3% Y-o-Y.”
Advances growth of 17.3% Y-o-Y vs guidance of 12%.
HIGH confidence
What: Advances growth of 17.3% Y-o-Y vs guidance of 12%.
“Our advances have grown by 7.7% Q-o-Q and 17.3% Y-o-Y, substantially higher than the growth of 14.5% in bank credit.”
What Are the Key Risks for Jammu and Kashmir Bank Ltd?
Earnings deceleration risks from management commentary
RBI's cumulative rate cuts of 125 bps during calendar year 2025 have pressured m
MEDIUMTrigger: Faster transmission of rate cuts on the lending side compared to the liabilities side.
Management view: Focusing on retail CASA and high-yield retail credit growth to offset margin pressure.
Monitor: regulatory
Stress on deposit growth due to shift of household savings to mutual funds
LOWTrigger: Household savings in bank deposits fell from 40.9% in FY21 to 35.2% in FY25.
Management view: Deploying IT initiatives like QR codes and POS machines to capture more CASA in the home territory.
Monitor: commodity
What Is Jammu and Kashmir Bank Ltd's Management Saying?
Key quotes from recent conference calls
“So the market guidance for FY '25-'26, credit growth 12%, deposit growth 10% CASA 48%, NIM 3.65% to 3.70%. [Previous Credit Growth guidance]”
“So the market guidance for FY '25-'26... GNPA below 3%. [Previous GNPA guidance]”
“So we are working on this home territory... to get them back and also generate more deposits through IT initiatives. [Initiative: IT-led Deposit Generation]”
“Notwithstanding the industry-wide pressure on margins witnessed following RBI's cumulative rate cuts of 125 bps during calendar year 2025. [Risk (regulatory): MEDIUM]”
What Did Jammu and Kashmir Bank Ltd Report This Quarter?
Headline numbers from the latest earnings call
EBITDA
₹806 Cr
Why: Operating profit was impacted by the completion of provisioning for the amalgamation of RRBs in previous quarters.
Operating profit before tax was reported at ₹806 Crores for the quarter.
PAT
₹587 Cr
QoQ +18.7%
Why: Profitability improved due to credit growth outpacing the system and consistent improvement in asset quality despite margin pressures.
The bank achieved an 18.7% sequential growth in net profit.
Other Highlights
• Advances grew 17.3% Y-o-Y, substantially higher than the system credit growth of 11.7% to 12%.
• GNPA reduced to 3% as of December 31, 2025, reaching the year-end guidance a quarter early.
• CD ratio reached 72%, meeting the management's target promised at the beginning of the year.
What Sector Metrics Matter for Jammu and Kashmir Bank Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Net Interest Margin
3.62%
QoQ +6 bps
Why: Improvement driven by the effect of previous repo cuts passing on while deposit rates took time to moderate.
Gross NPA Ratio
3%
QoQ -32 bps
Why: Constant focus on NPA recovery and reduction in SMA accounts by 50%.
Net NPA Ratio
0.68%
YoY -26 bpsQoQ -8 bps
Why: Substantial improvement in asset quality and maintenance of adequate provisions.
CASA Ratio
44.10%
QoQ -179 bps
Why: Shift towards higher-yielding term deposits and alternate investments like mutual funds.
Provision Coverage Ratio
90%
QoQ 0%
Why: Management intent to maintain PCR above 90% as a healthy sign.
Annualized Gross Slippage Ratio
0.83%
QoQ -7 bps
Why: Sustained and effective portfolio monitoring.
Capital Adequacy Ratio (CRAR)
15%
QoQ -27 bps
Why: Capital growth is in tandem with business growth; bank plans to raise additional capital.
Credit-to-Deposit Ratio
72%
Why: Management target achieved to balance growth and liquidity.
Cost of Deposits
4.69%
QoQ -17 bps
Why: Moderation in deposit rates starting to kick in.
Cost-to-Income Ratio
56%
QoQ -400 bps
Why: Strong cost discipline and lower employee expenses due to retirements.
What Is Jammu and Kashmir Bank Ltd's Management Guidance?
Forward-looking targets from management for FY26
Revenue Growth Target
3.65%
OPM Guidance
3.7%
Capex Plan
₹1500 Cr
Revenue Outlook
3.65% to 3.70%
Margin Outlook
NIM expected to improve in Q4.
Capex Plan
₹1,500 Cr
Additional capital to supplement business growth, including ₹500 Cr Tier 2 bonds and a QIP.
Volume
Credit growth guidance maintained with potential for upside.
Management Tone: BULLISH
Guidance Changes
LOWERED
CASA Ratio: 48% → 45%
How Fast Is Jammu and Kashmir Bank Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +2% | +12% | Decelerating |
| PAT (Net Profit) | +37% | +26% | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Top Banks - Private Stocks Beating Nifty 500
Frequently Asked Questions: Jammu and Kashmir Bank Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Jammu and Kashmir Bank Ltd's latest quarterly results?
Jammu and Kashmir Bank Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +37.3% (stable)
- Revenue Growth YoY: +1.9%
- Net Interest Margin: 18.00%
Is Jammu and Kashmir Bank Ltd's profit growing or declining?
Jammu and Kashmir Bank Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +37.3% (latest quarter)
- PAT Growth QoQ: +37.5% (sequential)
- 3-Year PAT CAGR: +26.0%
- Trend: Stable — consistent growth pattern
What is Jammu and Kashmir Bank Ltd's revenue growth trend?
Jammu and Kashmir Bank Ltd's revenue growth trend is decelerating.
- Revenue Growth YoY: +1.9%
- Revenue Growth QoQ: -1.3% (sequential)
- 3-Year Revenue CAGR: +12.0%
What is Jammu and Kashmir Bank Ltd's asset quality trend?
Jammu and Kashmir Bank Ltd's asset quality trend is insufficient_data.
What is Jammu and Kashmir Bank Ltd's 3-year profit and revenue CAGR?
Jammu and Kashmir Bank Ltd's long-term compounding rates
- 3-Year Profit CAGR: +26.0%
- 3-Year Revenue CAGR: +12.0%
Is Jammu and Kashmir Bank Ltd's growth accelerating or decelerating?
Jammu and Kashmir Bank Ltd's earnings growth is stable with strong momentum on a sequential basis.
- YoY Acceleration: +27.5% bps
- Sequential Acceleration: +20.1% bps
What is Jammu and Kashmir Bank Ltd's trailing twelve month (TTM) performance?
Jammu and Kashmir Bank Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹2,000 Cr
- TTM PAT Growth: +13.3% YoY
- TTM Revenue: ₹13,000 Cr
- TTM Revenue Growth: +4.9% YoY
Is Jammu and Kashmir Bank Ltd overvalued or undervalued?
Jammu and Kashmir Bank Ltd appears significantly undervalued based on our fair value analysis.
- Valuation Signal: Significantly Undervalued
- Current PE: 6.6x
- Price-to-Book: 0.9x
What is Jammu and Kashmir Bank Ltd's current PE ratio?
Jammu and Kashmir Bank Ltd's current PE ratio is 6.6x.
- Current PE: 6.6x
- Market Cap: 15.6K Cr
- Dividend Yield: 1.52%
How does Jammu and Kashmir Bank Ltd's valuation compare to its history?
Jammu and Kashmir Bank Ltd's current PE is 6.6x.
- Current PE: 6.6x
- Valuation Assessment: Significantly Undervalued
What is Jammu and Kashmir Bank Ltd's price-to-book ratio?
Jammu and Kashmir Bank Ltd's price-to-book ratio is 0.9x.
- Price-to-Book (P/B): 0.9x
- Book Value per Share: ₹150
- Current Price: ₹142
Is Jammu and Kashmir Bank Ltd a fundamentally strong company?
Jammu and Kashmir Bank Ltd is rated Average with a fundamental score of 56/100. This score is calculated from objective financial metrics
- PAT Growth YoY: +37.3% (20% weight)
- PAT Growth QoQ: +37.5% (15% weight)
- Earnings trend: stable (5% weight)
Is Jammu and Kashmir Bank Ltd debt free?
Jammu and Kashmir Bank Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹3,000 Cr
What is Jammu and Kashmir Bank Ltd's return on equity (ROE) and ROCE?
Jammu and Kashmir Bank Ltd's return ratios over recent years
- FY2024: ROE 16.0%
- FY2025: ROE 16.0%
- FY2026: ROE 15.0%
Is Jammu and Kashmir Bank Ltd's cash flow positive?
Jammu and Kashmir Bank Ltd's operating cash flow is negative (FY2026).
- Cash from Operations (CFO): ₹-1,000 Cr
- Free Cash Flow (FCF): ₹-1,000 Cr
- CFO/PAT Ratio: -48% (weak cash conversion)
What is Jammu and Kashmir Bank Ltd's dividend yield?
Jammu and Kashmir Bank Ltd's current dividend yield is 1.52%.
- Dividend Yield: 1.52%
- Current Price: ₹142
Who holds Jammu and Kashmir Bank Ltd shares — promoters, FII, DII?
Jammu and Kashmir Bank Ltd's shareholding pattern (Mar 2026)
- Promoters: 59.4%
- FII (Foreign): 8.3%
- DII (Domestic): 6.0%
- Public: 26.3%
Is promoter holding increasing or decreasing in Jammu and Kashmir Bank Ltd?
Jammu and Kashmir Bank Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 59.4% (Mar 2026)
- Previous Quarter: 59.4% (Dec 2025)
- Change: 0.00% (stable)
How long has Jammu and Kashmir Bank Ltd been outperforming Nifty 500?
Jammu and Kashmir Bank Ltd has been outperforming Nifty 500 for 11 consecutive weeks, indicating consistent outperformance.
Is Jammu and Kashmir Bank Ltd a new momentum entry or an established outperformer?
Jammu and Kashmir Bank Ltd is an established outperformer with 11 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Jammu and Kashmir Bank Ltd?
Jammu and Kashmir Bank Ltd has 3 key growth catalysts identified from recent earnings analysis
- Asset Quality Improvement — Constant focus on NPA recovery and reduction in SMA accounts by 50%.
- Market Share Gains — Balanced growth across geographies and sectors, particularly in Agriculture and Corporate.
- Advances growth of 17.3% Y-o-Y vs guidance of 12%. — Driven by balanced growth in Agriculture (25.7%) and Corporate (14.7%) sectors.
What are the key risks in Jammu and Kashmir Bank Ltd?
Jammu and Kashmir Bank Ltd has 2 key risks worth monitoring
- [MEDIUM] RBI's cumulative rate cuts of 125 bps during calendar year 2025 have pressured m — Faster transmission of rate cuts on the lending side compared to the liabilities side.
- [LOW] Stress on deposit growth due to shift of household savings to mutual funds — Household savings in bank deposits fell from 40.9% in FY21 to 35.2% in FY25.
What did Jammu and Kashmir Bank Ltd's management say in the latest earnings call?
In Q3 FY26, Jammu and Kashmir Bank Ltd's management highlighted
- "So the market guidance for FY '25-'26, credit growth 12%, deposit growth 10% CASA 48%, NIM 3.65% to 3.70%. [Previous Credit Growth guidance]"
- "So the market guidance for FY '25-'26... GNPA below 3%. [Previous GNPA guidance]"
- "So we are working on this home territory... to get them back and also generate more deposits through IT initiatives. [Initiative: IT-led Deposit Gene..."
What is Jammu and Kashmir Bank Ltd's management guidance for growth?
Jammu and Kashmir Bank Ltd's management has provided the following forward guidance for FY26
- Revenue growth target: 3.65%
- OPM guidance: 3.7%
- Capex plan: ₹1500 Cr for Additional capital to supplement business growth, including ₹500 Cr Tier 2 bonds and a QIP.
- Management tone: bullish
- Milestone: [LOWERED] CASA Ratio: 48% → 45%
What sector-specific metrics matter most for Jammu and Kashmir Bank Ltd?
Jammu and Kashmir Bank Ltd's most important sub-sector-specific KPIs from the latest concall
- Net Interest Margin: 3.62% (QoQ +6 bps) — Improvement driven by the effect of previous repo cuts passing on while deposit rates took time to moderate.
- Gross NPA Ratio: 3% (QoQ -32 bps) — Constant focus on NPA recovery and reduction in SMA accounts by 50%.
- Net NPA Ratio: 0.68% (YoY -26 bps) (QoQ -8 bps) — Substantial improvement in asset quality and maintenance of adequate provisions.
- CASA Ratio: 44.10% (QoQ -179 bps) — Shift towards higher-yielding term deposits and alternate investments like mutual funds.
- Provision Coverage Ratio: 90% (QoQ 0%) — Management intent to maintain PCR above 90% as a healthy sign.
- Annualized Gross Slippage Ratio: 0.83% (QoQ -7 bps) — Sustained and effective portfolio monitoring.
Is Jammu and Kashmir Bank Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Jammu and Kashmir Bank Ltd may be worth studying
- Earnings growing at +37.3% YoY
- Valuation: appears significantly undervalued
What is the investment thesis for Jammu and Kashmir Bank Ltd?
Jammu and Kashmir Bank Ltd investment thesis summary:
Research Signals (Bull Case)
- Appears significantly undervalued
- Growth catalyst: Asset Quality Improvement
Risk Factors (Bear Case)
- Key risk: RBI's cumulative rate cuts of 125 bps during calendar year 2025 have pressured m
What is the future outlook for Jammu and Kashmir Bank Ltd?
Jammu and Kashmir Bank Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: decelerating
- Valuation: Significantly Undervalued
- Key Catalyst: Asset Quality Improvement
- Key Risk: RBI's cumulative rate cuts of 125 bps during calendar year 2025 have pressured m
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.