Jammu & Kashmir Bank Limited has issued a regulatory clarification following queries from major stock exchanges regarding unusual trading activity in its shares. The bank responded to concerns raised by both the National Stock Exchange of India Limited and The BSE Limited about increased trading volumes.

Exchange Queries and Response Timeline

The clarification came in response to emails received from the stock exchanges seeking explanations for the spurt in trading volume of the bank's equity shares. The queries were received on February 24, 2026 from NSE and February 25, 2026 from BSE respectively.

Regulatory Compliance Statement

The bank emphasized its commitment to regulatory compliance and transparency in its response. Jammu & Kashmir Bank stated that it has consistently disclosed all material information having bearing on its operations and performance to the stock exchanges. The bank confirmed adherence to Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, ensuring all price-sensitive information is disclosed within stipulated timelines.

No Undisclosed Material Information

In its clarification, the bank explicitly confirmed that there is no unpublished price-sensitive information or any material event requiring disclosure under applicable regulations. The bank stated that no undisclosed information exists that may have contributed to the surge in trading volume of its securities.

Market-Driven Movement Attribution

The bank attributed the unusual trading activity to market forces beyond its control. According to the clarification, any movement in the price or volume of the bank's equity shares appears to be purely market-driven. The bank emphasized that it has no control over such market movements and trading patterns.

The response was signed by Mohammad Shafi Mir, Company Secretary, and submitted to both exchanges as part of the bank's regulatory disclosure obligations.

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.