Jammu and Kashmir Bank reported a 19.38% year-on-year increase in total business for the second quarter of fiscal 2027 (Q2FY27). The bank’s total business stood at ₹3,10,347 crore as on September 30, 2026, compared to ₹2,59,973 crore in the corresponding period last year.

The intimation filed with the National Stock Exchange of India Limited and The BSE Limited highlights robust growth in gross advances, which expanded by 23.72% to reach ₹1,33,551 crore. This significant jump in lending activity contributed to the overall expansion of the bank's balance sheet during the quarter.

Deposit growth and CASA trends

Total deposits grew by 16.29% year-on-year, reaching ₹1,76,796 crore. While the absolute value of deposits increased, the composition of these deposits shifted notably. Current Account Savings Account (CASA) deposits grew at a slower pace of 6.45% to ₹74,277 crore, lagging behind the overall deposit growth rate.

Consequently, the CASA ratio declined to 42.01% as on September 30, 2026, from 45.89% in the previous year. This represents a contraction of 388 basis points in the share of low-cost deposits within the total deposit base.

Balance sheet overview

The following table summarises the key financial metrics disclosed in the provisional results:

Note: Figures are provisional and subject to audit/review.

What the numbers show

The divergence between advance growth and deposit growth signals a tightening liquidity position. Gross advances grew at 23.72%, significantly outpacing the 16.29% growth in total deposits. This disparity suggests that the bank is deploying capital faster than it is gathering funds, potentially increasing reliance on wholesale funding or reducing the loan-to-deposit ratio cushion. Furthermore, the decline in the CASA ratio to 42.01% indicates that the incremental deposit growth is coming from higher-cost term deposits rather than low-cost savings accounts, which may exert pressure on net interest margins in subsequent quarters.

Jammu and Kashmir Bank has appointed Mr. Tsewang Tharchin, IA&AS (DIN: 11907418), as a Rotational Director on the Board of Directors, effective September 22, 2026. This appointment was approved by shareholders at the bank's 88th Annual General Meeting.

Mr. Tharchin is a 2007 batch officer of the Indian Audit and Accounts Service (IA&AS). He joined the Ladakh Administration as Commissioner Secretary, Finance Department on July 6, 2026. Prior to this role, he served as Accountant General (Audit), J&K from November 6, 2025. His career includes significant stints in audit and financial administration across various government bodies.

Board Changes and Capital Raise

During the AGM held in Srinagar, shareholders also took on record the retirement by rotation of Director R K Chhibber (DIN: 08190084). The casual vacancy created by his retirement was not filled at that meeting. Subsequently, the Board approved the appointment of Mr. Rajeev Gupta (DIN: 08316212) to fill this rotational director slot. Mr. Gupta brings over 33 years of professional experience in accounting, auditing, financial reporting, taxation, and regulatory compliance.

Shareholders also approved two key special business items during the AGM:

• Raising funds up to ₹1,000 crore through Tier-I capital instruments.
• Appointing Mr. Tsewang Tharchin, IA&AS (DIN: 11907418), as a Rotational Director.

Mr. Tharchin holds a BA from Kashmir University and a Diploma in Management from IGNOU. In the audit domain, he is a Certified Information Systems Auditor (CISA) and Certified Internal Auditor (CIA). He has conducted performance audits for international bodies including the World Intellectual Property Organization (WIPO) and the United Nations Office for the Coordination of Humanitarian Affairs (OCHA).

Financial Performance and Asset Quality

Managing Director & CEO Amitava Chatterjee stated that despite geopolitical uncertainties and inflationary pressures, the bank delivered strong results. Asset quality improved significantly, with Gross NPA declining from 3.37% to 2.50% and Net NPA falling from 0.79% to 0.64%.

Operating expenditure decreased by approximately 4%, leading to a moderated Cost-to-Income ratio of 56.18%. The bank recorded a Return on Assets of 1.37% and a Return on Equity of 16.85%. Capital Adequacy Ratio stood at 16.55%, with CET-1 at 13.54%, providing capacity for sustainable expansion.

The bank's total business expanded 13.6% to ₹2.90 lakh crore as of March 31, 2026. Deposits grew 11.30% to ₹1.65 lakh crore, while gross advances rose 16.8% to ₹1.25 lakh crore. The institution crossed the historic milestone of ₹3 trillion in total business by June 2026.

Key Financial Metrics FY26

Strategic Outlook

Chairman Sankarasubramanian Krishnan emphasized that future growth would be guided by core values of Trust, Tradition, and Transformation. He outlined an aspiration to achieve ₹5 trillion in business and ₹5,000 crore annual profit by 2030. The bank plans to focus on responsible growth, technology, customer service, governance, risk management, and cybersecurity.

Digital transactions grew to 94% during FY26, reflecting the bank's push towards becoming future-ready. The management reiterated its commitment to expanding presence across the country while serving the communities of Jammu & Kashmir and Ladakh.