Jammu & Kashmir Bank Limited has submitted its Statement of Deviation/Variation in utilisation of funds raised, as required under Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the quarter ended March 31, 2026. The disclosure, filed on May 05, 2026, and signed by Company Secretary Mohammad Shafi Mir, covers eight separate fund-raising exercises undertaken by the bank between 2017 and 2023. Across all eight instances, the bank has confirmed that there is no deviation or variation in the utilisation of funds raised.

Fund Utilisation Overview

The disclosures encompass funds raised through multiple modes, including Preferential Issues, Employee Share Purchase Schemes (ESPS), and Qualified Institutional Placements (QIP). In each case, the stated objective was to meet the needs of growing business, including long-term capital requirements for pursuing the bank's growth plans and to maintain the Capital Adequacy Ratio as per regulatory guidelines and norms laid down by the Reserve Bank of India. The bank has confirmed that all funds raised have been fully utilised in line with their original stated objectives, with no modifications to the original allocation or object in any of the issuances.

Issuance-Wise Fund Utilisation Details

The following tables summarise the key details of each fund-raising issuance covered in the disclosure for the quarter ended March 31, 2026:

Audit Committee and Auditor Comments

For all eight issuances, the Audit Committee's comments after review are recorded as NIL, and auditor comments are either NIL or Not Applicable, as applicable. No monitoring agency has been appointed for any of the issuances, as the bank has confirmed that the monitoring agency requirement is not applicable across all disclosures.

Regulatory Compliance

The filing confirms full compliance with Regulation 32 of the SEBI (LODR) Regulations, 2015, for the quarter ended March 31, 2026. The bank has stated that in each of the eight fund-raising exercises, the original allocation remains unchanged, the funds have been fully utilised as per the original object, and the amount of deviation or variation for the quarter is recorded as zero across all issuances. The disclosure was submitted to both the National Stock Exchange of India Ltd and The BSE Limited.

Jammu & Kashmir Bank reported audited standalone financial results for the quarter and financial year ended March 31, 2026, at a Board of Directors meeting held on May 05, 2026. The bank posted a standalone net profit of Rs. 2,363.47 crore for FY26, compared to Rs. 2,082.46 crore in the previous year — marking its highest ever annual profit, a rise of 13.5% year-on-year. For the quarter ended March 31, 2026, the bank recorded a net profit of Rs. 797.81 crore, up 36.5% from Rs. 584.54 crore in the corresponding quarter of the previous year.

Financial Performance

The bank's detailed Profit & Loss account reflects steady income growth alongside improved cost management. Interest earned for FY26 rose to Rs. 13,145.19 crore from Rs. 12,535.86 crore in FY25, a growth of 4.9% YoY. Net Interest Income (NII) for FY26 stood at Rs. 5,875.77 crore compared to Rs. 5,793.82 crore in FY25. Operating profit for the year improved to Rs. 2,986.48 crore from Rs. 2,929.79 crore, while Profit Before Tax (PBT) stood at Rs. 2,957.88 crore. Tax provision for FY26 declined sharply by 30.2% to Rs. 594.40 crore from Rs. 851.24 crore in FY25.

The bank's Net Interest Margin (NIM) for FY26 stood at 3.60% (vs. 3.92% in FY25), while for Q4 FY26 it was 3.52% (annualized) compared to 3.88% in Q4 FY25. The Cost to Income Ratio improved to 56.18% for FY26 from 57.69% in FY25, and further to 47.86% for Q4 FY26 versus 57.48% in Q4 FY25. Yield on Advances for FY26 stood at 8.98% compared to 9.56% in FY25, while Cost of Deposits declined to 4.70% from 4.75%. Earnings Per Share (EPS) for FY26 was Rs. 21.49 compared to Rs. 18.91 for the previous financial year.

Asset Quality and Capital Adequacy

The bank's asset quality showed notable improvement during the year. Gross Non-Performing Assets (NPAs) declined to 2.50% of gross advances from 3.37% in the previous year, while Net NPAs improved to 0.64% from 0.79%. In absolute terms, Gross NPAs stood at Rs. 3,124.84 crore as on March 31, 2026, down from Rs. 3,604.84 crore a year ago. Net NPAs in absolute terms stood at Rs. 785.13 crore. The NPA Coverage Ratio (PCR) stood at 90.33% as on March 31, 2026, compared to 90.28% a year earlier.

The capital adequacy ratio (Basel III) strengthened to 16.55% from 16.29%, with the CET1 ratio at 13.54% and the Tier 1 ratio at 14.44%. Net worth as at March 31, 2026 stood at Rs. 15,045.68 crore, while Reserves and Surplus increased to Rs. 16,639.73 crore from Rs. 14,141.81 crore.

Business Growth and Balance Sheet

Total business surged 13.61% year-on-year to Rs. 2,90,341 crore as on March 31, 2026. Total deposits were up 11.3% YoY to Rs. 1,65,354 crore, while gross advances expanded by 16.8% YoY to Rs. 1,24,981 crore and net advances grew 18% YoY to Rs. 1,22,641 crore. CASA deposits grew by 8.07% YoY to Rs. 75,478 crore, with the CASA Ratio at 45.65% as on March 31, 2026 compared to 47.01% a year ago. The Credit-to-Deposit (CD) Ratio stood at 74.17% versus 70.13% in the previous year.

Deposit growth was driven by both regions, with J&K UT deposits rising 10.0% to Rs. 1,36,831 crore and Rest of India (including Ladakh UT) deposits growing 18.2% to Rs. 28,523 crore. Term deposits for the bank as a whole grew 14.2% YoY to Rs. 89,876 crore, Saving Deposits rose 8.4% to Rs. 58,086 crore, and Demand Deposits grew 7.1% to Rs. 17,392 crore.

Sectoral and Geographical Advances Breakup

Gross advances for the bank as a whole stood at Rs. 1,24,980.72 crore as on March 31, 2026. Geographically, J&K UT accounted for Rs. 76,159 crore (60.9%) of gross advances, while Rest of India (including Ladakh UT) contributed Rs. 48,822 crore (39.1%). Gross advances in Rest of India grew sharply by 30.9% YoY. The sector-wise breakup of advances and NPAs is presented below.

The movement in Gross NPAs during FY26 showed additions of Rs. 877.81 crore and recoveries (including upgradations, write-offs, and settlements) aggregating to Rs. 1,357.82 crore, resulting in a closing Gross NPA balance of Rs. 3,124.84 crore, down 13.3% from Rs. 3,604.84 crore at the start of the year.

Investments and Operational Metrics

Total investments stood at Rs. 40,821.86 crore as on March 31, 2026, marginally lower by 1% YoY. Of this, Held to Maturity (HTM) securities accounted for 66.73% at Rs. 27,238.58 crore, while Available for Sale (AFS) securities stood at Rs. 12,490.61 crore (30.60%). SLR securities comprised 84.47% of total investments at Rs. 34,480.54 crore. The total investment portfolio duration stood at 3.21 years as on March 31, 2026, compared to 3.17 years a year ago. Yield on the total investment portfolio for FY26 was 6.69% versus 6.84% in FY25.

On the operational front, Business per Employee improved to Rs. 23.64 crore for FY26 from Rs. 20.18 crore in FY25, while Net Profit per Employee (annualized) rose to Rs. 19.47 lakh from Rs. 16.65 lakh. The bank had 11,934 employees, 1,017 branches, and 1,437 ATMs as on March 31, 2026. Business per Branch stood at Rs. 282.16 crore for FY26 versus Rs. 247.62 crore in FY25.

Key Disclosures and Shareholding

The bank's investment of Rs. 345.92 crore in its associate, Jammu & Kashmir Grameen Bank, resulted in an impairment provision of Rs. 228.65 crore. The bank also effected a prior period appropriation of Rs. 23.94 crore and recovered prior period interest of Rs. 131.72 crore from the government under the Ladli Beti Scheme. The bank spent Rs. 45.66 crore towards Corporate Social Responsibility activities during the year. The restructured loan portfolio stood at Rs. 2,259.61 crore as on March 31, 2026, up 43.3% from Rs. 1,576.94 crore a year ago, with NPAs out of the restructured portfolio declining to Rs. 544.99 crore from Rs. 966.10 crore.

The shareholding pattern as on March 31, 2026 shows the Governments of UTs of J&K and Ladakh (Promoters) holding 59.40% of the bank's share capital, unchanged from the previous year. Resident Individuals held 21.16%, FII/FPI 8.34%, Indian Mutual Funds 3.89%, Body Corporates 2.66%, Non-Resident Indians 1.95%, Indian Financial Institutions 1.78%, and others the remaining balance.