1. Opening Hook
Just when PSU banks were busy defending margins from RBI’s rate cuts, J&K Bank quietly went ahead and posted another clean quarter. No drama, no bailout chatter, no “one-time adjustments” footnotes doing gymnastics. While markets were distracted by mutual fund inflows and CASA panic, J&K Bank focused on the boring stuff—recoveries, discipline, and execution.
Credit grew faster than the system, NPAs fell right on cue, and profitability quietly marched upward. Even better, this happened while the bank absorbed a ₹180 cr impairment hit and a ₹68 cr rehab provision—without breaking a sweat.
Management says this could be the fourth straight year of record profits. That’s not a typo.
If you think this is just another PSU bank concall, read on. It gets interesting—and slightly uncomfortable for the valuation narrative.
2. At a Glance
- Net Profit ₹587 cr (+18.7% QoQ) – PSU banks don’t usually accelerate profits mid-cycle.
- Advances +17.3% YoY – Growing faster than the system, without losing sleep.
- Deposits +10.6% YoY – Not flashy, but enough to fund growth responsibly.
- CASA 44.1% – Lower QoQ, still miles ahead of the industry average.
- NIM 3.62% – Rate cuts tried, failed, and moved on.
- GNPA 3.0%, NNPA 0.68% – Asset quality behaving like a textbook example.
3. Management’s Key Commentary (Decoded)
“We are on the brink of achieving GNPA below
3% ahead of schedule.”
(Translation: We said it, we did it. Early.) 😏
“Credit cost for nine months is nil.”
(Translation: Recoveries are doing the heavy lifting.)
“CASA moderation is an industry-wide trend.”
(Translation: Mutual funds stole our lunch money.)
“NIMs improved sequentially despite a 25 bps rate cut.”
(Translation: Asset mix > rate cycle.)
“Retail and corporate growth has been balanced.”
(Translation: No reckless MSME binge.)
“We can take CD ratio to 77–78%.”
(Translation: Growth runway still exists.)
“Capital raise approval is optional, not urgent.”
(Translation: We heard the shareholders loud and clear.) 😏
4. Numbers Decoded
Metric Q3 FY26 What It Means
-------------------------------------------------------------
ROA (annualised) 1.35% Top-tier for PSU banks
ROE (annualised) 15.16% Capital sweating properly
NIM 3.62% Still elite territory
GNPA 3.00% Target achieved early
NNPA 0.68% Credit risk well caged
PCR >90% No accounting heroics
Cost-to-Income <56% Operating discipline intact
CRAR / CET-1 15% /