J&K Bank Shareholders Approve New Independent Director and Chairman Remuneration

Jammu & Kashmir Bank shareholders have passed two significant resolutions through remote e-voting, demonstrating strong support for the bank's governance decisions.

Director Appointment

The first resolution, which proposed the appointment of Mr. Arun Gandotra (DIN: 08907929) as an Independent Director on the bank's board, has been approved with 91.86% of shareholders voting in favor. Mr. Gandotra will serve a three-year term from August 26, 2025, to August 25, 2028.

Mr. Gandotra brings a wealth of experience to the role, having served Jammu & Kashmir Bank for 35 years before retiring as Executive President (Operations) in August 2021. His extensive background includes:

12 years in Treasury Operations in Mumbai
Expertise in Credit and Credit Risk Management
Experience in Policy Planning and Credit Portfolio Management
Leadership roles in various bank committees

Chairman's Remuneration

The second resolution, addressing the remuneration for the Non-Executive Part-Time Chairman of the bank, has received overwhelming support with 99.99% of shareholders voting in favor. The approved package includes:

Component	Details
Fixed Remuneration	₹15.00 lakh per annum
Sitting Fees	As applicable to other Non-Executive Independent Directors
Expense Reimbursement	Actual expenses for attending meetings and performing duties

It's worth noting that the Non-Executive Part-Time Chairman will not be eligible for the ₹10.00 lakh fixed remuneration paid to other Non-Executive Directors.

Voting Outcome

The postal ballot results demonstrate strong shareholder backing for the bank's governance decisions, with both proposals achieving the requisite majorities. These approved changes reflect Jammu & Kashmir Bank's commitment to strengthening its board composition and aligning its governance practices with industry standards.

The successful passage of these resolutions marks an important step in shaping the bank's future direction and leadership structure.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.31%	-3.97%	-9.56%	-4.18%	-2.48%	+353.73%

Jammu & Kashmir Bank (J&K Bank) has reported a net profit of INR 494.00 crore for the quarter ended September 30, 2025, marking a 1.9% sequential growth despite facing challenges. The bank's performance shows resilience in the face of recent disturbances and natural calamities affecting its core geography.

Key Financial Highlights

Metric	Q2 FY2026	QoQ Change	YoY Change
Net Profit	INR 494.00 crore	+1.9%	-
Deposits	-	+2.4%	+10.2%
Advances	-	+3.9%	+9.4%
CASA Ratio	45.89%	+18 bps	-
Gross NPA	3.32%	Reduced	-
Net NPA	0.76%	Reduced	-

Deposit and Advance Growth

J&K Bank witnessed a deposit growth of 2.4% sequentially and 10.2% year-on-year, while advances grew by 3.9% sequentially and 9.4% year-on-year. The bank's performance aligns with the overall banking sector trends, as per the latest RBI data.

CASA Ratio Improvement

A notable achievement for the bank this quarter was the improvement in its CASA (Current Account Savings Account) ratio, which increased to 45.89% from 45.71% in the previous quarter. This marks the first improvement in nine consecutive quarters, contrasting with the industry-wide trend of declining CASA ratios.

Regional Performance

The bank's Rest of India (ROI) book recorded a year-on-year growth of 16.1% in advances, compared to 5.9% growth in Jammu and Kashmir and Ladakh. This aligns with the bank's vision of achieving a 50-50 split between JKL and ROI in its loan book over the medium to long term.

Sector-wise Growth

Corporate and Agriculture sectors, constituting about 40% of the bank's loan portfolio, were the best performers with year-on-year growth of 11.7% and 27.4% respectively. The Personal Finance segment, making up 38% of the loan book, grew by 6.9% year-on-year.

Profitability and Margins

While profitability moderated on a year-on-year basis, in line with industry trends, the bank still managed a sequential improvement. However, the Net Interest Margin (NIM) contracted to 3.56% from 3.90% in the same period last year, primarily due to faster transmission of rate cuts on the lending side.

Asset Quality

The bank's asset quality showed improvement, with Gross Non-Performing Assets (GNPA) reducing to 3.32% and Net NPA to 0.76%. The Provision Coverage Ratio remains healthy at above 90%.

Special Provisions and Guidance Revision

J&K Bank made an impairment provision of INR 92.00 crore this quarter and INR 87.00 crore in the previous quarter, totaling INR 180.00 crore, for its investment in Jammu and Kashmir Grameen Bank following its merger with Ellaquai Dehati Bank. This one-time provision has led the bank to revise its guidance for Return on Assets (RoA) to 1.20%-1.25% and Return on Equity (RoE) to 15%-16% for the current financial year.

Outlook

Despite the challenges, J&K Bank maintains its credit growth guidance at 12% and deposit growth at 10% for FY2026. The bank aims to bring its Gross NPA below 3% by the end of the fiscal year and expects to maintain a CASA ratio of 48%.

Managing Director and CEO Amitava Chatterjee expressed confidence in the bank's performance, stating, "As an investor, you won't be disappointed. And it [profit] will definitely be better than what we have recorded last year."

The bank's focus on CASA growth, retail credit expansion in Rest of India, and strategic initiatives are expected to support its performance in the coming quarters, despite the challenges posed by recent events in its core geography.