NIM stabilization at 3.2% from retail focus
Expected: Q4 FY26HIGH confidence
What: Management guidance ensures no further NIM compression despite competitive pressures
“Management: "Rest assured, this yield on advances will not go down further"”
Jammu and Kashmir Bank Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +27.6%Average5w Streak
In Week of Mar 28, 2026, Jammu and Kashmir Bank Ltd (Banks - Private) is outperforming Nifty 500 with +27.6% relative strength. Fundamentals: Average. On a 5-week streak.
PB: Mid ContractionStrong Opportunity
What's Happening
💎PB falling while earnings hold — value emerging
🌐FII stake increased 1.4% this quarter
💰Trading 230% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. NIM stabilization at 3.2% from retail focus
Q4 FY26HIGH
2. Credit cost normalization to 0.7%
Q4 FY26MEDIUM
3. Operating leverage from C/I ratio improvement
FY26-FY27MEDIUM
Key Risks
1. CD ratio approaching 72% limiting growth
MEDIUM2. RRB amalgamation one-time costs
LOWKey Numbers
PAT Growth YoY
+10%
Inflection Up
Revenue YoY
+3%
Decelerating
Price to Book
0.8
Current Price
₹114
Dividend Yield
1.88%
Fundamental Score
58/100
Average
3Y PAT CAGR
+61%
Market Cap
12.6K 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 Feb 28, 2026
Credit cost normalization to 0.7%
Expected: Q4 FY26MEDIUM confidence+₹150 Cr revenue
What: GNPA at 3.0% nearing target enables further credit cost reduction
Impact: +₹150 Cr revenue
“Management targeting sub-3% GNPA with current 3.0% GNPA”
Operating leverage from C/I ratio improvement
Expected: FY26-FY27MEDIUM confidence+₹400 Cr revenue
What: Cost-to-income at 48.7% enables 200-300 bps ROE expansion
Impact: +₹400 Cr revenue
“Management: "ROE should see an improvement, at least 200 to 300 basis points"”
What Are the Key Risks for Jammu and Kashmir Bank Ltd?
Earnings deceleration risks from management commentary
CD ratio approaching 72% limiting growth
MEDIUMTrigger: CD ratio exceeds 75%
Impact: -10 bps margin impact
Management view: Had deposit growth matched advances, we would be growing at 20% but must maintain balance
Monitor: CD ratio
RRB amalgamation one-time costs
LOWTrigger: Additional integration costs emerge
Impact: -15 bps margin impact
Management view: Unforeseen hit of INR180 crores on account of impairment provision from RRB amalgamation
Monitor: One-time provisions
What Is Jammu and Kashmir Bank Ltd's Management Saying?
Key quotes from recent conference calls
“Rest assured, this yield on advances will not go down further, I believe. Yes, the corporate world is looking at very, very competitive rates, but we are aware of that. And our focus has always been as a bank is on the retail. — Amitava Chatterjee”
“I do not believe that these accounts are going to turn NPA in any time in future. So I'm assured that this restructuring will actually provide them a lifeline to restart and continue the business — Amitava Chatterjee”
“Growth in advances has been recorded at 7.7% Q-o-Q and 17.3% Y-o-Y, substantially higher than system growth — Management”
“We have taken it from 67%, 68% to 72%, 73% now. Along with this, there was a 10% Y-o-Y growth in deposits as well. So I just mentioned that my target would in the medium term will be to take it to around 77%, 78% — Amitava Chatterjee”
What Is Jammu and Kashmir Bank Ltd's Management Guidance?
Forward-looking targets from management for FY26
Implied PAT Growth
5%
Credit Growth Target
15%
NIM Guidance
3.2%
Management Tone: CAUTIOUS
Key Milestones
• Sub-3% GNPA by March 2026
• CD ratio to 77-78% medium term
• Credit cost to 0.7%
How Fast Is Jammu and Kashmir Bank Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +3% | +16% | Decelerating |
| PAT (Net Profit) | +10% | +61% | Inflection Up |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 28, 2026.
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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 (Dec 2025) show
- PAT Growth YoY: +9.8% (turning around (inflection up))
- Revenue Growth YoY: +3.3%
- Net Interest Margin: 16.00%
Is Jammu and Kashmir Bank Ltd's profit growing or declining?
Jammu and Kashmir Bank Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +9.8% (latest quarter)
- PAT Growth QoQ: +17.4% (sequential)
- 3-Year PAT CAGR: +61.4%
- Trend: Turning around (inflection up) — 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: +3.3%
- Revenue Growth QoQ: +0.7% (sequential)
- 3-Year Revenue CAGR: +16.1%
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: +61.4%
- 3-Year Revenue CAGR: +16.1%
Is Jammu and Kashmir Bank Ltd's growth accelerating or decelerating?
Jammu and Kashmir Bank Ltd's earnings growth is turning around (inflection up) with improving on a sequential basis.
- YoY Acceleration: +20.3% bps
- Sequential Acceleration: +15.3% 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: +0.5% YoY
- TTM Revenue: ₹13,000 Cr
- TTM Revenue Growth: +7.0% 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: 5.9x
- Price-to-Book: 0.8x
What is Jammu and Kashmir Bank Ltd's current PE ratio?
Jammu and Kashmir Bank Ltd's current PE ratio is 5.9x.
- Current PE: 5.9x
- Market Cap: 12.6K Cr
- Dividend Yield: 1.88%
How does Jammu and Kashmir Bank Ltd's valuation compare to its history?
Jammu and Kashmir Bank Ltd's current PE is 5.9x.
- Current PE: 5.9x
- 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 0.8x.
- Price-to-Book (P/B): 0.8x
- Book Value per Share: ₹141
- Current Price: ₹114
Is Jammu and Kashmir Bank Ltd a fundamentally strong company?
Jammu and Kashmir Bank Ltd is rated Average with a fundamental score of 58.11/100. This score is calculated from objective financial metrics
- PAT Growth YoY: +9.8% (20% weight)
- PAT Growth QoQ: +17.4% (15% weight)
- Earnings trend: inflection_up (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: ₹2,000 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
- FY2023: ROE 13.0%
- FY2024: ROE 16.0%
- FY2025: ROE 16.0%
Is Jammu and Kashmir Bank Ltd's cash flow positive?
Jammu and Kashmir Bank Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹3,000 Cr
- Free Cash Flow (FCF): ₹3,000 Cr
- CFO/PAT Ratio: 131% (strong cash conversion)
What is Jammu and Kashmir Bank Ltd's dividend yield?
Jammu and Kashmir Bank Ltd's current dividend yield is 1.88%.
- Dividend Yield: 1.88%
- Current Price: ₹114
Who holds Jammu and Kashmir Bank Ltd shares — promoters, FII, DII?
Jammu and Kashmir Bank Ltd's shareholding pattern (Dec 2025)
- Promoters: 59.4%
- FII (Foreign): 8.1%
- DII (Domestic): 5.8%
- Public: 26.6%
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% (Dec 2025)
- Previous Quarter: 59.4% (Sep 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 5 consecutive weeks, indicating building momentum.
Is Jammu and Kashmir Bank Ltd a new momentum entry or an established outperformer?
Jammu and Kashmir Bank Ltd is an established outperformer with 5 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
- NIM stabilization at 3.2% from retail focus
- Credit cost normalization to 0.7%
- Operating leverage from C/I ratio improvement
What are the key risks in Jammu and Kashmir Bank Ltd?
Jammu and Kashmir Bank Ltd has 2 key risks worth monitoring
- CD ratio approaching 72% limiting growth
- RRB amalgamation one-time costs
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
- "Rest assured, this yield on advances will not go down further, I believe. Yes, the corporate world is looking at very, very competitive rates, but we ..."
- "I do not believe that these accounts are going to turn NPA in any time in future. So I'm assured that this restructuring will actually provide them a ..."
- "Growth in advances has been recorded at 7.7% Q-o-Q and 17.3% Y-o-Y, substantially higher than system growth — Management"
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
- Implied PAT growth: 5%
- Credit growth target: 15%
- Management tone: cautious
- Milestone: Sub-3% GNPA by March 2026
- Milestone: CD ratio to 77-78% medium term
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 +9.8% YoY
- Valuation: appears significantly undervalued
- Cash flow is positive — CFO ₹3,000 Cr
- Strong returns — ROE 16.0%
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: NIM stabilization at 3.2% from retail focus
Risk Factors (Bear Case)
- Key risk: CD ratio approaching 72% limiting growth
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: turning around (inflection up)
- Revenue Trend: decelerating
- Valuation: Significantly Undervalued
- Key Catalyst: NIM stabilization at 3.2% from retail focus
- Key Risk: CD ratio approaching 72% limiting growth
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.