22-Oct-2026 22:53:52
J&K BANK Q2 FY27 : CREDIT GROWTH GUIDANCE RAISED TO 14%+, DEPOSIT GROWTH TARGET 12%+ & NIM RECOVERY EXPECTED IN H2
• FY27 CREDIT GROWTH GUIDANCE RAISED TO 14%+, WITH MANAGEMENT AIMING FOR APPROXIMATELY 18% • FY27 DEPOSIT GROWTH TARGET RAISED TO 12%+ FROM EARLIER 10% • CASA RATIO TARGET MAINTAINED ABOVE 42% • NET INTEREST MARGIN EXPECTED TO IMPROVE SIGNIFICANTLY FROM Q3 FY27; NO NUMERICAL TARGET PROVIDED • FY27 ROA GUIDANCE AT 1.20%+ VS EARLIER INDICATION OF 1.25–1.30% • H2 FY27 ROA EXPECTED AROUND 1.40%, WITH POTENTIAL FOR FURTHER IMPROVEMENT • GROSS NPA TARGETED BELOW 2% BY FY27-END VS CURRENT 2.23% • MANAGEMENT EXPECTS HIGHER RETAIL & AGRICULTURE LENDING TO SUPPORT LOAN YIELDS • HIGH-COST DEPOSIT PRESSURE EXPECTED TO EASE, SUPPORTING NIM RECOVERY IN Q3–Q4 • ADDITIONAL INVESTMENT GAIN EXCEEDING ₹100 CR EXPECTED TO SUPPORT Q3 PROFITABILITY • STRONG WRITTEN-OFF LOAN RECOVERY PIPELINE EXPECTED TO SUPPORT EARNINGS THROUGH FY27–FY28 • EMPLOYEE EXPENSES EXPECTED TO REMAIN FLAT OR DECLINE SLIGHTLY IN H2 FY27 • BANK PLANS ₹1,500 CR CAPITAL RAISE, INCLUDING ₹1,000 CR EQUITY & ₹500 CR DEBT • ECL PROVISIONING IMPACT EXPECTED TO BE ASSESSED BY DECEMBER 2026; ₹300 CR PROVISIONING BUFFER AVAILABLE • LOWER FUNDING COSTS, HIGHER FEE INCOME & TREASURY GAINS EXPECTED TO SUPPORT H2 PROFITABILITY; ECL UNCERTAINTY REMAINS A KEY RISK
BANK OF INDIA