Ladies and gentlemen, good day, and welcome to Jammu and Kashmir Bank Q2 FY27 Earnings
Conference Call hosted by Emkay Global Financial Services Limited. As a reminder, all
participant lines will be in the listen-only mode and there will be an opportunity for you to ask
questions after the presentation concludes. Should you need assistance during the conference
call, please signal an operator by pressing star then zero on your touchtone phone. Please note
that this conference is being recorded.
I now hand the conference over to Mr. Avinash Singh from Emkay Global Financial Services
Limited. Thank you, and over to you, Mr. Singh.
Avinash Singh:
Thank you, Sidhant. Good afternoon, everyone. I would like to welcome the management and
thank them for this opportunity. We have with us today Mr. Amitava Chatterjee, Managing
Director and CEO and his management team.
I shall now hand over the call to Mr. Amitava Chatterjee for his opening remarks. Over to you,
sir.
Amitava Chatterjee:
Thank you, Avinash. A very good afternoon, and a warm welcome to all the investors, analysts
and other stakeholders joining us today for the J&K Bank September 2026 Earnings Call. Before
we discuss the results, let me introduce my fellow colleagues from the bank's senior management
who are accompanying me on this call.
Executive Director, Mr. Sudhir Gupta; Chief General Managers, Mr. Imtiyaz Ahmad Bhat; Mr.
Ashutosh Sareen; and Mr. Rajesh Malla Tikoo; Deposit and Liability Management Head, Mr.
Peer Masood Ahmad; RAM Banking Head, Mr. Sanjay Gupta; Corporate Banking Head, Mr.
Suresh Kumar Chowdhary; Impaired Assets Portfolio Management Head, Mr. Tariq Ali; Chief
Risk Officer, Mr. Altaf Hussain Kira; and our Treasury Head, Mr. Ajay Kohli.
The geopolitical uncertainties which persisted in the first quarter of the current financial year
have continued to mar the global economy in Q2, following the reescalation of conflict in West
Asia, which has driven energy prices sharply higher leading to inflationary concerns and
increased volatility across financial markets. However, despite these persistent geopolitical
challenges, the Indian economy has posted a robust growth of 7.8% during Q1, driven by
domestic consumption and investment. This resilient performance has led to a sharp upward
revision of India's GDP growth forecast for 2026-27 by IMF to 7% from 6.4% earlier.
This resilience in the domestic economy is also reflected in the Bank's business momentum with
the Bank's total business growing by 19.4% Y-o-Y to INR3.10 lakhs crores as on 30th September
2026. The Y-o-Y growth across both deposits and advances has been healthy at 16.3% and
23.7%, respectively. The profitability has also improved after a subdued performance in the first
quarter, with the net profit for the quarter being recorded at INR546 crores, a sequential jump of
almost 29% and a double-digit Y-o-Y growth as well.
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Jammu and Kashmir Bank Limited
October 22, 2026
On the credit side, in alignment with the Bank's strategic positioning as a retail-focused bank, as
emphasized during the Q1 call, the Bank has recorded a sequential growth of 7.62% in
Agricultural Advances and 3.90% in Retail Advances, underscoring the tangible progress made
in execution. The entire net incremental growth during the quarter has been contributed by
Retail, Agriculture and MSME loans, that is RAM. And this growth has been contributed by
both Jammu, Kashmir, Ladakh and Rest of India in almost equal proportions to their share in
the Bank's outstanding RAM loans. On a YTD basis, more than 60% of the Bank's net
incremental credit has been contributed by RAM portfolio.
Within RAM, Bank has registered a Y-o-Y growth of around 17% in Agricultural Advances,
with a double-digit YTD growth for the first half year. Auto loans continue to be the bestperforming segment amongst retail loans with a Y-o-Y growth of over 25%, doing well both in
Jammu, Kashmir, Ladakh as well as Rest of India. Housing loans in Rest of India division also
continued to grow at a healthy pace, recording a double-digit Y-o-Y growth.
On the deposit front also, the bank has already achieved a YTD growth of around 7% against
our guidance of 10% for the financial year with the growth in Term Deposits continuing to
outpace the growth in CASA in line with the continuing industry trend. However, the gap
between the growth in Term Deposits and CASA Deposits has narrowed down in this quarter as
the bank has been able to record positive CASA inflows during this quarter, after a sharp outflow
in Q1. As a result, Bank has been able to broadly maintain its CASA ratio at the same level of
around 42%, being recorded at 41.97% as on 30th September 2026.
Now, coming to profitability, the Bank has recorded an operating profit of INR789 crores for
the quarter, registering a 27% Y-o-Y growth and a 12% Q-o-Q growth. Even on a half year basis,
the Bank has recorded a Y-o-Y growth of over 15% in Operating Profit, being recorded at
INR1,492 crores for the first half year of the current fiscal. While the operating income for this
quarter has grown by over 6% sequentially and 14.5% Y-o-Y, the increase in operating
expenditure continues to be controlled at just 2% Q-o-Q and 6.5% Y-o-Y, contributing towards
improved profitability for the quarter. As a result, Cost-to-Income Ratio of the Bank for this
quarter has also moderated substantially on both sequential and Y-o-Y basis, being recorded at
56.57% for the quarter.
Yield on advances has remained broadly flat on a sequential basis, being recorded at 8.55% for
the quarter. However, the increasing contribution of RAM segment to our incremental credit
portfolio, coupled with the recent repo rate hike, is expected to support an improvement in the
yield from the third quarter onwards. The sharp outflow of CASA deposits during Q1 continued
to weigh on our liability profile, contributing to an increase in the Cost of Deposits in this quarter
to 4.85%. However, with the surplus liquidity in the banking system easing bulk deposit rates
combined with the positive CASA inflows in Q2 and the reduction in Term Deposit rates by our
Bank in this quarter, we expect moderation in the Cost of Deposits going forward. Resultantly,
the NIM has witnessed compression, being recorded at 3.22% for the half year but with the
expected improvement across both yield and cost, the NIM should also improve.
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Jammu and Kashmir Bank Limited
October 22, 2026
Notwithstanding the prevailing macro-economic uncertainties, the Bank has witnessed a notable
moderation in slippages during the current fiscal, with Annualized Gross Slippage Ratio of just
0.4% for the half year, as Gross Slippages, in terms of absolute amount, have halved compared
to the corresponding period last year. This reflects the resilience of our portfolio and the
continued effectiveness of our underwriting and monitoring mechanisms. The asset quality
metrics also continue to consistently improve reaching decadal best numbers with GNPA and
NNPA as on 30-09-2026 being recorded at 2.23% and 0.51% respectively and PCR improving
from 90.53% as on 30th June 2026 to 91.76% as on 30th September 2026.
Capital Adequacy Ratio has been recorded at 16.57% as on 30th September 2026 with CET 1 of
13.88%. The Bank is already in the process of raising both equity and debt capital to the tune of
INR1,000 crores and INR500 crores respectively and will raise the capital at an opportune time
to support its future growth.
On the back of improved profitability, RoA has jumped by 20 bps Q-o-Q, while RoE has jumped
by more than 250 bps Q-o-Q and have been recorded at 1.07% and 13.68% respectively for the
quarter.
Based on the mid-term review, we have reassessed our guidance as indicated in the last call. The
revised guidance for FY 2026-27 would be credit growth of 14% plus, deposit growth of 12%
plus, CASA to be 42% plus. There should be a considerable improvement in NIM, ROA to be
around 1.20% and GNPA to be below 2%.
So, thank you all for the time today for giving me a patient hearing. We can start with the
questions now.
Moderator:
Thank you. We will now begin the question-and-answer session. The first question comes from
the line of Yuvraj Choudhary from Anand Rathi.
Yuvraj Choudhary:
Congratulations on a good quarter. Sir, I have a couple of questions. So firstly, CASA growth
has lagged overall deposit growth. So a trend we have seen across the industry. So what are the
steps are we taking to improve our CASA mix? So that is first question.
Amitava Chatterjee:
Okay. You want me to answer the first question first, right? So, Yuvraj, while there was a flight
of CASA during the first quarter, as I already mentioned, we could recover a fair bit of it in the
second quarter -- in the last month of second quarter.
If you ask me about the steps, there are not one or two steps. There are several steps that we have
taken to restore CASA. Like, for example, we are entering into MOUs with multiple
organizations, companies for salary package within Jammu and Kashmir as well as outside
Jammu and Kashmir to open salary accounts, and we have been permitted by several
organization. In fact, in the last quarter itself, I guess there would be not less than 20 such
organizations.
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Jammu and Kashmir Bank Limited
October 22, 2026
Apart from that, there is a strong flavor of UPI payments within the state of Jammu and Kashmir,
where most of the merchants, they have either our POS machines or QR codes. So at a point of
time, maybe we were not very concerned about this. But now there is a very strong monitoring
of all these POS machines as well as QR codes that have been allotted to the merchants. And we
are following up with their transactions being routed through our bank.
So this is another -- apart from that, we are in the process of signing a fresh MOU with the
Government of Jammu and Kashmir for their salary accounts. And this time around -- we expect
the MOU to be for 5 years. And most likely, we are going to sign it tomorrow.
So all these things put together, I guess, we are working on CASA. And apart from that, all the
zones have shown a remarkable improvement in opening of CASA accounts, especially savings
accounts, including Rest of India, which I think is a very positive sign.
Like I said, there has been a positive contribution from Rest of India as well in the CASA
segment. So all these things put together, I believe that we can improve our CASA to a fair
extent. At least we will not lose the ratio.
But one thing which we need to understand, unlike other banks, if our CASA ratio has gone
down, we have not lost those deposits. They have converted. They have got converted into term
deposits with our bank only. So if you look at the growth in term deposits vis-a-vis whatever we
have -- percentage terms, whatever we have lost in CASA, we have been able to maintain these
deposits with us.
So unlike earlier, we have now a very stable base. If you look at the average deposits and average
advances compared to the quarter-end deposits and advances, they are almost the same. So that
has actually stabilized the business position.
Yuvraj Choudhary:
That was helpful. Sir, second question would be, sir, our credit cost has remained negligible as
our net slippages has been negative. So firstly, any outlook on the credit cost for the current
year? And secondly, our expectation on credit costs on an ongoing basis post ECL
implementation?
Amitava Chatterjee:
See, I will not, at the moment, want to comment on the impact or the credit cost on account of
ECL implementation because we are in the final stages of arriving at the model. And probably
by the end of next quarter, we'll be in a position to comment on that.
And as far as the credit cost on a general basis, I do not see any reason why we will be increasing
the credit cost. Whatever credit cost at the moment we witnessed in our bank's numbers, they
are all the ageing provisions only. So I do not see -- and as I mentioned, if you compare the half
year of 2025-'26 and compare it to '26-'27, the slippages have come down to half.
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Jammu and Kashmir Bank Limited
October 22, 2026
Last year, this point, the slippages were INR550 crores. Compared to that, it is INR234 crores
only for this first half year. So we have managed to -- I mean, as I mentioned, we have managed
to keep the book very, very steady.
Moderator:
The next question comes from the line of Deepak Poddar from Sapphire Capital.
Deepak Poddar:
Yes. Am I audible, sir?
Amitava Chatterjee:
Yes, Deepak, you are audible.
Deepak Poddar:
So just first, I wanted to understand on RoA. Now we are talking about 1.2%, right? And earlier,
I think we were talking in the range of 1.25% to 1.3%. So what are the reasons, I mean, factors
you see because of the -- I mean, you have downgraded your RoA outlook?
Amitava Chatterjee:
If you ask me, honestly, it's not down-gradation. I'm trying to be a little bit conservative and
deliver more than what I predict. There are quite a bit of other income, which is in pipeline for
the bank at the moment.
But as you know that a few things like recovery in written-off accounts and other similar things,
they are sometimes not predictable. You may get it within, say, next 15 days or you may not get
it in the next 2 months.
So it's not a, downward revision. What we have done is based on what we had in the first quarter,
we have now revised it so that we do not fall back on that. I mean we are able to achieve it. And
maybe I said 1.20 plus. I did not say 1.20%. So it is not downward revision. It is a little bit of a
conservative approach that I think we have taken.
Deepak Poddar:
Okay. Okay. So in the first half itself, I mean if you have to see our ROA is close to 1%, right?
So...
Amitava Chatterjee:
More than 1% now.
Deepak Poddar:
Yes. So to do that -- to do 1.2%, you have to do 1.4% kind of RoA in the second half, right?
Amitava Chatterjee:
Yes, yes. That is very much visible at the moment.
Deepak Poddar:
Okay. Understood. And why we are saying, I mean, 14% kind of a credit growth in the second
quarter, I think we are at about what? 24%, 25% kind of advances growth rate?
Amitava Chatterjee:
If you look at the credit growth that happened in our bank last year, third quarter and fourth
quarter, so that was much better than the first 2 quarters. So comparatively, if you look at the
differential, I am keeping it conservatively at 14%. But again, if you had noticed my statement,
it is 14% plus. So it will be definitely more than 14%.
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Jammu and Kashmir Bank Limited
October 22, 2026
Now again, as I also mentioned, the focus more is on the retail. So retail growth is not as fast as
the corporate growth. And obviously, the retail growth focus is because of the advantage of yield
on retail advances. So at least for the next quarter, we will be continuing our focus on the retail
advances growth.
So again, we have kept a conservative number at 14%, but it will definitely be much more than
that. But no, I don't expect it to be 25% because last year, third quarter and fourth quarter were
very good. So compared to that, the differential will be slightly lower.
Deepak Poddar:
Okay. Understood. And now given our PCR is already at 91%, 92%, right? So that -- I mean,
last 2 quarters, I think the credit cost or provisioning we have been doing in the range of INR70
crores, INR80 crores, INR85 crores, right, per quarter. So you expect this run rate to maintain
going forward?
Amitava Chatterjee:
It should be.
Deepak Poddar:
Okay. So no incremental credit cost you expect, right?
Amitava Chatterjee:
No, no, I do not expect any incremental credit cost. The SMAs have been in control. Sequentially
also, we have been coming down. So obviously, the concern is ECL, and we have been working
in a very focused way on that.
Moderator:
The next question comes from the line of Hatim B from JM MF.
Hatim B:
So, if I heard you correctly, you mentioned that loan growth target is 14%. Is that correct, sir?
Amitava Chatterjee:
Yes. The target for the year, which we had earlier set at a lower rate, we have revised it a little
bit higher now at 14%. But I said 14% plus. So my aim is to reach to around 18% provided that
we continue with the retail growth.
Hatim B:
And can you break down this guidance into how much can be retail?
Amitava Chatterjee:
60% and 40%, 60% retail and 40% corporate.
Hatim B:
Okay. And so we have some compression in NIMs. So what kind of NIMs should we expect in
your guidance?
Amitava Chatterjee:
See, we had seen the downward cycle last year. And also a factor which is very easily forgotten
is the factor that this part of the geography went through a lull for a almost a year because of
what happened previously because of Pahalgam.
So there was a pressure on NIM because last year, we had to resort to increase in business
through some sort of high-cost deposits and as well as some competitive rate advances. So that
cycle has gone. We are back to growing in retail. The incremental growth in advances for this
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Jammu and Kashmir Bank Limited
October 22, 2026
quarter has essentially come from retail. 60% of the total growth for this year already has been
from retail. So -- and the rate cycle has reversed. We also expect some more rate hikes in the
coming future.
So obviously, I do not want to give a number to the NIMs because in the past, it has not been
taken very pleasantly by others. But yes, I am very sure it is going up significantly in the next - and the next quarter.
Hatim B:
So the ROA improvement, which you are expecting, will it largely come from NIMs or is there
any other lever?
Amitava Chatterjee:
If you look at this quarter's numbers also, we have had a substantial increase in other income.
So it is -- see, I had already mentioned this at the beginning of the year that we are targeting
substantial improvement in other income.
In fact, I cannot give you a very -- I mean, detailed breakup of all the components of other
income, but I can say that almost all the components of other income has shown improvement
from quarter 1 to quarter 2. So that itself gives a very positive signal that we are going to have a
fair bit of other income coming up this financial year, next 2 quarters.
Apart from that, as I said, the yield is definitely going to go up. And the pressure that we had as
a bank, Jammu and Kashmir Bank on taking high cost deposits, that is also over. We do not need
to take any high-cost deposits for the remaining part of the year.
So all these things coupled together, I am 100% sure the NIM is going to go up. I'm not predicting
a number, but it is going to go up substantially.
Moderator:
The next question comes from the line of Amansingh Sahajsinghani from ICICI Securities.
Amansingh Sahajsinghani: Congrats on the good set of numbers. Coming back to the RoA guidance of 1.2%. Our H1 RoA
is 1% and we are guiding for full year of 1.2%. So H2 RoA you are expecting at 1.4%. You said
there will be some improvement in other income and NIM will also go up, but there seems to be
limited levers on the credit cost side to go down further. So I wanted to understand on the -- on
that front again that what are the levers that we understand for RoA to go up to 1.4% in the H2?
Amitava Chatterjee:
As I mentioned -- now see this bank has had a very good past say, 8 to 10 quarters on account
of recovery in written-off accounts. Now recovery in written-off accounts at the moment in
pipeline, which is very, very, I would say, hot pipeline is substantial at the moment. As it has
not materialized or matured as yet, I'm not giving the numbers, but it is very good.
Apart from that, we have also got an approval for a special OTS scheme for old NPAs as well
as written-off accounts. So that also is likely to contribute a considerable amount of profit by
way of written-off recovery as well as reversal of provisions of NPA accounts recovery. These
two are almost certain to happen.
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Jammu and Kashmir Bank Limited
October 22, 2026
Apart from that, I said the cross-selling income is likely to improve. We have added two more
insurance companies in the industry. Other than that, our treasury has started showing good
recovery, and they have also posted good income this quarter. And I expect the treasury also to
support forex income.
And apart from that, there has been a very strong focus of the bank at the moment on non-fundbased business, which also has shown considerable improvement, almost 30% to 40%
improvement quarter-to-quarter.
So all these things, again, I said, put together, it is going to add to the profit of the bank to a large
extent. And that will definitely help me post a 1.40% ROA for the second half. It may be better
than that. I'm optimistic of being better than that.
Amansingh Sahajsinghani: Right, sir. So what I could understand is the 1.4% RoA in H2 on the back of strong TWO
recoveries that may not be durable in FY28. So how do we think about the RoA in FY28, a
durable one which would be steady?
Amitava Chatterjee:
See, it is a statement that you made, I didn't make it. I did not say that it is not durable. The
pipeline is not so small that it will not last for the next 1 year. That is one. Second, we have built
up a very strong other income backup now with what I mentioned of non-fund-based business,
of forex business, of third-party insurance products selling business, all these things.
And apart from that, the improvement in yields in the advances with the interest on advances
going up. So all these things put together, I do not see that it is sort of, as you mentioned, it's a
one-off factor. It is not a one-off factor. It is going to continue. I mentioned what is right for this
financial year. If you ask me about the next financial year, I would wait for 2 quarters to respond
to you.
Amansingh Sahajsinghani: But you foresee the TWO recoveries for FY28 to be durable?
Amitava Chatterjee:
I already mentioned in the beginning of the year that we still have sufficient pipeline for 2 years,
this year and the next.
Amansingh Sahajsinghani: Right, sir, last data-keeping question is how much of our book is linked to EBLR and MCLR, if
you can give that?
Amitava Chatterjee:
31% is MCLR and 65% is repo-linked.
Moderator:
The next question comes from the line of Gaurav Agrawal from Nine One Capital.
Gaurav Agrawal:
Congratulations on the good results. Sir, just one question on the employee cost side, which has
been very, very good for us. Sequentially as well as Y-o-Y, it's been flat. So how do you see the
trend for this number on absolute basis for the next 2 quarters? And also, sir, if you can give
some visibility around it for FY28?
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Jammu and Kashmir Bank Limited
October 22, 2026
Amitava Chatterjee:
Thank you, Gaurav. First of all, I expect the employee cost to remain flat, perhaps will come
down slightly for the next 2 quarters. If you look at very slight, but a slight dip from quarter 1 to
quarter 2. And it is going to continue because we have retirements.
However, for '27-'28, we will be back to this level again because we are also adding employees,
which will take place by the end of the, say, third quarter or maybe beginning of the fourth
quarter. So the impact won't be visible this year. Slight increase, which will take the employee
cost to the level now what we are having. Maybe slightly less, but almost similar. So employee
costs will not go up.
Moderator:
The next question comes from the line of Shruti Agrawal from Narnolia Financial Service
Limited.
Shruti Agrawal:
Just one question. Like what will be the NIM growth trajectory going forward? And what are
the key drivers expected?
Amitava Chatterjee:
I just mentioned that I do not want to mention a particular number for NIM. But see, 25 bps
improvement has already happened on repo, and I said 65% of my portfolio is linked to repo,
which is already passed on.
The next is we are in the process in the bank at the moment. We had been resorting to some
high-cost deposits, which we have shed now, and we are no longer required to take any highcost deposits going forward. So putting together, I believe and also the expectation of the repo
maybe going slightly higher in the near future. I believe that there will be substantial
improvement in NIMs.
Moderator:
The next question comes from the line of Parth Gutka from 360 ONE Capital.
Parth Gutka:
Can you let me know what are within the retail and the agri segment average yield on the
portfolio?
Amitava Chatterjee:
You want to know the quantum of agri and retail?
Parth Gutka:
No, no, not the quantum, sir, the average yield on the portfolio.
Amitava Chatterjee:
Yield, yield. See, our retail yield is around 10%. Agriculture is 9.5% and retail is 10%.
Parth Gutka:
Okay. And what are the yield within the corporate portfolio Rest of India and within Jammu and
Kashmir?
Amitava Chatterjee:
There is hardly any large-sized corporate advances in Jammu and Kashmir. So largely MSME
and even MSME is around 9% yield. The corporate yield in Rest of India is around 7.2%.
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Jammu and Kashmir Bank Limited
October 22, 2026
Parth Gutka:
Okay. Fair enough. And my next question is considering we already had one repo rate hike,
when does this rate hike get passed on to the customer on the immediate next day or...
Amitava Chatterjee:
Same day. It's the same day.
Moderator:
The next question comes from the line of Vinod Vyas from Share India.
Vinod Vyas:
Sir, my question is regarding this regulation paper of IRDA. So as you are saying that other
income might increase. So how much impact will it be on the insurance commission due to this
regulation paper of the IRDA?
Amitava Chatterjee:
Yes, I agree with your statement. I think some mics are on anyway. The reason -- I mean, the
reason why I said that we will be able to jack up our income from third-party product selling is
because we have added two more insurance companies for life, that is SBI Life as well as HDFC
Life. And I expect the volumes to actually compensate for the commission difference that is
going to come.
So whatever the reduction in commission likely to happen because of the new IRDAI guidelines
is going to be compensated by the volumes. And as you know, Jammu & Kashmir is a highly
underinsured low penetration as far as life and general insurance is concerned. So the potential
is very high. We have not actually realized the potential so far. And that is what is happening
now. Going forward, I expect the volumes to go high -- go up substantially.
Moderator:
The next question comes from the line of Jai Prakash Mundhra from ICICI Securities.
Jai Prakash Mundhra:
I have a few questions. First is, sir, what is the breakup of this miscellaneous? And specifically,
how much is the recovery from TWO accounts in this quarter?
Amitava Chatterjee:
This quarter recovery from TWO is only INR25 crores.
Jai Prakash Mundhra:
Okay. So sir, then this other miscellaneous income of around INR150 crores, what is -- what
does it all include?
Amitava Chatterjee:
Just a second, I'll give you. There is a INR41 crores from card business, loan processing charges
of around INR18 crores -- INR19 crores, penal charges of INR12.89 crores, cheque return
charges of INR4.57 crores, SMS charges INR6.42 crores, CGTMSE fee INR4.79 crores like
that.
Jai Prakash Mundhra:
And this treasury income, sir, does it include any equity stake sale, PNB MetLife or NSE or any
one-off nature or is only pure bond related?
Amitava Chatterjee:
It is not yet -- the transaction is completed, but the transaction happened after 30th of September.
So that is also which is going to add to the bank's profit for the next quarter. So that is not
included.
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Jammu and Kashmir Bank Limited
October 22, 2026
Jai Prakash Mundhra:
Okay. And what is the rough quantum, sir, from all of that transaction?
Amitava Chatterjee:
Plus INR100 crores.
Jai Prakash Mundhra:
And this INR92 crores is only for the bond portfolio, is it?
Amitava Chatterjee:
It also includes some revaluation of unlisted stocks.
Jai Prakash Mundhra:
Where you have gained?
Amitava Chatterjee:
Yes. I mean it is a combination of both and the net result was a gain.
Jai Prakash Mundhra:
Okay. All right. And sir, do you have the AFS figure, available-for-sale reserves? The change
in Q1 versus Q2?
Amitava Chatterjee:
Negative INR62 crores.
Jai Prakash Mundhra:
Okay. And what was this last quarter, sir?
Amitava Chatterjee:
Last quarter was zero.
Jai Prakash Mundhra:
Okay. Now secondly, sir, on bulk deposit, what was the need for bulk deposit? And what is the
quantum right now in absolute rupees crores in bulk deposit or high-cost deposit?
Amitava Chatterjee:
See, it was in the first quarter that we took some certificate of deposits, which was slightly at a
high cost, around 8%. So that was the need. At that point of time, we had loan commitments
which was already there. So we -- at that point of time, it was the need. Out of that, most of it is
already shed. It is no longer in the books now.
Jai Prakash Mundhra:
What is the quantum of bulk deposits outstanding, sir, which are high cost?
Amitava Chatterjee:
It will be around INR3,000 crores, sir.
Amitava Chatterjee:
No, how much is the high cost? It is less than INR3,000 crores. High cost is only less than
INR3,000 crores.
Jai Prakash Mundhra:
Okay. So not substantial. So the benefit may come in subsequent quarter, right, maybe
immediately in Q3?
Amitava Chatterjee:
It's definitely going to come in the third quarter and the fourth quarter.
Jai Prakash Mundhra:
Right. And sir, there is another in personal loan, which is housing, auto and then there is an
other. I believe it includes some salary account, personal loan, unsecured personal loan, but if
you can quantify?
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Jammu and Kashmir Bank Limited
October 22, 2026
Amitava Chatterjee:
I'll -- just give me a moment. I had the details. Just a second. So it is housing loan, then the J&K
Bank MoU personal consumption loans, then car finance…
Jai Prakash Mundhra:
No, no, sir, the MoU loans is how much, sir?
Amitava Chatterjee:
That is INR13,400 crores.
Jai Prakash Mundhra:
It has not grown, is it? I mean I remember it was...
Amitava Chatterjee:
It had gone down.
Jai Prakash Mundhra:
Yes. Okay. What is the reason, sir, why it has declined when it is almost secured by state
government types and high yielding?
Amitava Chatterjee:
In fact, there are two variants, including two variants, it is almost INR16,000 crores, more than
INR16,000 crores. It had -- last year, it had contracted because for two reasons. One, we were
revamping our product to make it more attractive.
And the second was, there was some correction that we needed to make on the employees where
NMI/EMI ratio was unfavorable. So we corrected that. You also might remember that we had a
problem of high SMA-0s in that segment. All that was corrected last year.
So last year, there was a slight dip in that. This year, we have again come back. And to be
specific, this year by first half year, we have surpassed the total amount that we had lent last
year, full year.
Jai Prakash Mundhra:
Sir, now, sir, what have you done to rectify this the EMI to salary ratio? Have you elongated the
duration or what else can a bank do if you want to fix the ratio?
Amitava Chatterjee:
We had one EMI prepaid. We had got a one EMI prepaid by the employees, which resulted in
alignment -- and also alignment with the salary dates.
Jai Prakash Mundhra:
Right, right. Okay. I got a little bit. Maybe I'll take this offline, sir. This is very interesting.
Secondly, sir, are you ready for ECL? It looks like that you are falling behind. You have one of
the highest SMA in the industry, and you are saying that you do not have any assessment of the
ECL, which is going to be implemented.
Amitava Chatterjee:
See, base figure assessment is not what I want to mention at the moment. That is why I'm not
saying. Otherwise, we have a fair assessment of the ECL requirement. And the model is almost
ready. It will be public -- at least it will go to the Board by the December Board meeting. So we
will be ready. I mean it's not -- we are not falling back on it. We are ready.
Jai Prakash Mundhra:
Because you have the highest SMA, 5% is SMA 1 plus 2. If I include SMA-0, then the number
is in double digit. It looks like that it can jeopardize -- and right now, you have almost negligible
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Jammu and Kashmir Bank Limited
October 22, 2026
credit cost. You have not provided anything prudentially when there was a time. So -- and you
are not giving any number as to what could be the transitional hit or maybe the recurring hit. So
it looks like...
Amitava Chatterjee:
I already mentioned based on the assessment that we have done so far, our ECL hit will not be
more than the average industry hit. It will be less than that.
Jai Prakash Mundhra:
Average industry rate is around 50 to 60 basis point depending on what is the average, PSU
Bank will be around less than 100 basis points of capital. But they -- some of the banks are also
carrying prudential buffer, which I don't know if you are carrying or no.
Amitava Chatterjee:
We have a little bit of buffer. Around INR300 crores buffer we are carrying.
Jai Prakash Mundhra:
Okay. But sir, any range if you can also give that this is the transitional hit?
Amitava Chatterjee:
I will give that range in the month of December. I'll give you exact number.
Moderator:
The next question comes from the line of Kayur Asher from PNB MetLife India Insurance.
Kayur Asher:
Congrats on a good set of numbers. Sir, can you guide further on the capital raise plans that you
would have during the rest of the year? You mentioned about both equity and debt raise plans
potentially. So specifically any guidance on when do you plan to come up with these? And also
curious on what would be the target level considering the reported capital numbers are already
looking robust?
Amitava Chatterjee:
See, there are multiple factors for which we intend to raise capital. I'm not going into that. But
if you ask me the quantum, I can mention that it is going to be INR1,000 crores of equity and
INR500 crores of debt.
Timings, I think the debt will be this quarter. And as I mentioned that the equity will be slightly
dependent on the time when it is most conducive for our bank. We already have a approval in
place. We are almost ready with all the initial preparedness. We are already prepared for it. So
we will just wait for a conducive time to go for it.
Moderator:
Ladies and gentlemen, that was the last question for today. As there are no further questions, we
have reached the end of question-and-answer session. I now hand the conference over to
management for closing comments.
Amitava Chatterjee:
Thank you, Avinash, and thank you all to the participants for joining in today. For any other
further questions or queries, you can contact our Investor Relations desk. Thank you.
Moderator:
Thank you. On behalf of Emkay Global Financial Services Limited, that concludes this
conference. Thank you for joining us, and you may now disconnect your lines.
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