Jammu & Kashmir Bank has decided to delay its qualified institutional placement (QIP) despite having board approval, as the lender's improving financial performance has reduced the immediate need for capital infusion. The bank's management cited better profitability and comfortable regulatory compliance as key factors behind the decision to postpone the fundraising exercise.

Strong Financial Performance Reduces Capital Urgency

MD & CEO Amitava Chatterjee explained that the bank's improved financial metrics have provided flexibility in timing the capital raise. The bank reported strong quarterly results, with net profit showing significant improvement during the October-December 2025 quarter.

"We are prepared for it, but maybe not this quarter, maybe next quarter, or the quarter after that," Chatterjee stated, indicating the QIP could be considered in H1 of FY27 rather than Q4 FY26.

PSL Compliance and RIDF Position Improve

The bank's Priority Sector Lending (PSL) position has significantly improved, reducing the need for Rural Infrastructure Development Fund (RIDF) investments. Chatterjee noted that approximately ₹3,000.00 crore worth of RIDF deposits will mature next year, and the bank's current PSL profile suggests no further need for fresh RIDF deposits.

"We were not in such a position earlier. We had introduced one product this year, which gave us this position," Chatterjee explained. "So now we are in a position, as per the PSL position, where we have become comfortable."

Loan Growth Exceeds Guidance Despite Conservative Outlook

The bank achieved impressive loan growth of 18.00% during the period, significantly exceeding its guidance range. However, management maintains conservative projections for the future.

Chatterjee emphasized that any upside to the loan growth guidance would depend on the bank's ability to improve its deposit position and Current Account Savings Account (CASA) ratios. "Maybe there can be an upside. That also depends on how well we can improve our deposit position and CASA," he noted.

Strategic Timing for Capital Markets

The decision to delay the QIP reflects the bank's strategic approach to capital markets timing. With the bank's shares still trading below the previous QIP price of ₹107.60 from two years ago, management is choosing to wait for more favorable market conditions.

The bank's board had approved the QIP in November of the previous year, but subsequent improvements in financial performance have allowed management to reconsider the timing. "Since we have done so well during this year, we still hold on to the decision, but maybe we will take a call sometime later," Chatterjee concluded.

The bank's balanced growth strategy, combining equal contributions from retail and corporate segments across its home territory and other markets, positions it well for sustained performance without immediate capital market dependence.

Jammu & Kashmir Bank has announced the cessation of two independent directors following the completion of their tenure. The bank informed stock exchanges that Mr. Anil Kumar Goel and Mr. Umesh Chandra Pandey have concluded their second term as Independent Directors on January 20, 2026, after closure of business hours.

Regulatory Disclosure Details

The bank filed the disclosure pursuant to Regulation 30(6) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary Mohammad Shafi Mir communicated the cessation details to both the National Stock Exchange of India Limited and BSE Limited.

Director Cessation Information

The following table provides the complete details of the directorship cessation as required under SEBI regulations:

Compliance Framework

The disclosure follows the requirements under clause 7 of Para A of Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank also referenced SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, in its compliance framework.

Corporate Governance Impact

Both directors served their complete second term as Independent Directors on the bank's board. The cessation represents a natural conclusion of their tenure under corporate governance norms. The bank has confirmed no debarment issues related to the departing directors and disclosed no inter-se relationships between the directors.

The announcement reflects standard corporate governance practices where independent directors complete their prescribed tenure limits. Jammu & Kashmir Bank has ensured full regulatory compliance by providing timely disclosure to stock exchanges and stakeholders about the board composition changes.