1. At a Glance
Q1 FY26 net profit jumped 17% YoY to ₹485 Cr. GNPA slid to 3.5%, deposits grew 12%, CAR stands tall at 15.98%. Stock trades at P/E 5.6x, CMP ₹109, with price/book 0.85x—basically a “discount sale” in the banking aisle.
2. Introduction with Hook
Imagine a mountain climber scaling the Himalayas—slow, steady, and hoping not to slip. That’s J&K Bank: recovering from past falls, improving asset quality, and quietly strengthening its foothold in the banking terrain.
3. Business Model (WTF Do They Even Do?)
- Retail Banking (60%): Loans, deposits, and every boring thing you need to live.
- Treasury (21%): They play with bonds and forex while pretending it’s safe.
- Corporate Banking (19%): Big-ticket lending, occasionally risky.
- Punchline: “A bank that acts local but wants to think global… someday.”
4. Financials Overview
- Q1 Revenue: ₹3,269 Cr (+9% YoY)
- NII: Strong, margins ~3.1%.
- Net Profit: ₹485 Cr (+17% YoY)
- GNPA: 3.5% (improving).
- CAR: 15.98% (solid).
Margins are holding, asset quality is improving, and profit growth is consistent—basically, the bank’s behaving for once.
5. Valuation
- P/E: 5.6x (cheap compared to peers).
- CMP/BV: 0.85x (trading below book).
- Fair Value Range: ₹120 – ₹160.
“Trading like a thrift-store treasure: undervalued, but you’ll need patience to see the shine.”
6. What’s Cooking – News, Triggers, Drama
- Q1 results beat street expectations.
- Dividend announcement (record date Aug 19).
- Promoter stake stable at 59.4%.
- FII holding creeping up to 8%.
“No scams, no boardroom fights, just boring good banking… which is exactly what investors like.”
7. Balance Sheet
| (₹ Cr) | FY24 | FY25 |
|---|---|---|
| Deposits | 1,34,763 | 1,48,552 |
| Borrowings | 2,885 | 2,383 |
| Net Worth | 12,193 | 14,208 |
| Total Assets | 1,54,505 | 1,69,424 |
Takeaway: Healthy deposit growth, low borrowings, and stronger capital base.
8. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating CF | -407 | -853 | N/A |
| Investing CF | -124 | -257 | N/A |
| Financing CF | 638 | 407 | N/A |
Cash flows are messy (banking CFs usually are), but the underlying lending/deposit engine is fine.
9. Ratios – Sexy or Stressy?
| Metric | Value | Comment |
|---|---|---|
| ROE | 15.8% | Healthy. |
| ROA | 1.29% | Decent for a bank. |
| CAR | 15.98% | Safe. |
| GNPA | 3.5% | Much improved. |
| P/B | 0.85x | Undervalued. |
10. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 9,355 | 11,213 | 12,541 |
| Net Profit | 1,181 | 1,771 | 2,082 |
Growth in both topline and bottomline—unlike some PSU banks stuck in the 90s.
11. Peer Comparison
| Bank | P/E | ROE | P/B |
|---|---|---|---|
| HDFC Bank | 21.8x | 14.4% | 2.9x |
| ICICI Bank | 19.9x | 18.0% | 3.4x |
| Axis Bank | 12.1x | 16.3% | 1.8x |
| IDBI Bank | 12.7x | 13.6% | 1.6x |
| J&K Bank | 5.6x | 15.8% | 0.85x |
Clearly undervalued, but market still gives it the “regional bank” discount.
12. Miscellaneous – Shareholding, Promoters
- Promoter: 59.4% (State holding).
- FII: 8.0% (rising).
- Public: 26.7%.
- Dividend payout steady, AGM scheduled Aug 26.
13. EduInvesting Verdict™
J&K Bank has gone from “problem child” to “decent performer.” Asset quality is improving, profits are growing, and valuation is dirt cheap.
Final Word:
“Not the flashy type, but quietly climbing the profit mountain. Keep an eye—it may just surprise the street.”
Written by EduInvesting Team | 26 July 2025
Tags: J&K Bank, Q1 FY26 Results, Banking Stocks, EduInvesting Premium
