Jammu and Kashmir Bank Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 4,041.99 Cr (+17.31% YoY) and PAT growth of +10.57% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 22, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 4,041.99 Cr (+17.31% YoY) |
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| PAT (Q2) | Rs. 546.36 Cr (+10.57% YoY) |
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| EPS (Q2) | Rs. 4.96 (+10.47% YoY) |
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| Market cap | Rs. 14,874.77 Cr |
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| CMP | Rs. 135.08 |
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Quarter Snapshot
J&K Bank delivered ahead of its own guidance on credit growth (+23.72% vs 12%), deposit growth (+16.29% vs 10%), and GNPA (2.23% vs below-2.25% target), with asset quality at a decadal best and PPOP up 26.75% YoY. The offset is NII growth of only 4.76% against ~24% loan growth, a CASA gap of ~300 bps to the 45% target, and RoA at 1.07% still short of the 1.25%+ guide, while Q2 other income was flattered by a Rs.28.88 Cr prior-period gain.
Key Investment Insights
Key Positives
- Credit growth of +23.72% YoY (gross advances Rs.1,33,551 Cr) exceeded management's 12% guidance and the 18-20% aspirational range
- Deposit growth of +16.29% YoY to Rs.1,76,795.93 Cr exceeded the 10% guidance
- GNPA fell to 2.23% (from 3.32% YoY, 2.37% QoQ), meeting the below-2.25% guidance and the lowest in a decade
- NNPA improved to 0.51% from 0.76% YoY; PCR rose to 91.76%
- Gross slippage ratio annualized at 0.4% for H1 vs 0.82% in FY26; credit cost 0.17% within the 0.1-0.2% guided band
- PPOP grew 26.75% YoY to Rs.789.14 Cr; cost-to-income improved to 56.57% from 60.79%
- Other income doubled YoY to Rs.314.90 Cr (+104.8%)
- H1 opex grew just 1.5% YoY, within management's flat-opex guidance; employee cost fell 0.08% YoY
Risk Factors
- NII grew only 4.76% YoY against ~24% loan growth as interest expense rose 19.75% YoY, indicating margin compression
- CASA at 41.97% remains ~300 bps below the 45% target and below 45.89% a year ago
- RoA at 1.07% annualized remains short of the 1.25%+ guidance; H2 would need ~1.43% to reach the full-year target
- Borrowings surged 56.8% in H1 to Rs.5,381 Cr funding the loan-deposit gap; CD ratio rose to 74.2%
- Q2 other income included a Rs.28.88 Cr prior-period gain; both-sides normalized PAT declined ~4.02% YoY
- NPA provisions rose to Rs.83.06 Cr from Rs.3.96 Cr a year ago; H1 provisions of Rs.156.38 Cr vs Rs.4.16 Cr in H1 FY26