J&K Bank Q2 Updates: Gross Advances Rise 8.3% To Rs 99,344 Crore

The Jammu and Kashmir Bank Ltd.'s gross advances rose 8.3% year-on-year to Rs 99,344 crore in the quarter-ended September, according to provisional figures released by the bank on Friday.

Total deposits rose 8.96% over a year ago to Rs 1.38 lakh crore, according to an exchange filing.

CASA ratio—the proportion of deposits that come from low-cost current and savings accounts—dipped to 48.61% from 50.61% in the year ago period. A lower CASA ratio indicates that the bank relies heavily on costlier wholesale funding, which can hurt the bank's margins.

The total business of the bank has risen 9.2% at Rs 2.34 lakh crore, as of Sept. 30.

The bank reported a profit rose 27% year-on-year at Rs Rs 415 crore in the first quarter of fiscal 2025. Net interest income rose by 7% to Rs 1,369 crore. The lender's interest income also increased to Rs 2,994 crore from Rs 2,657 crore in the same quarter a year ago.

Asset quality for the lender worsened, with the gross non-performing assets declining to 3.91% of the gross advances by June 2024 from 5.77% in the same quarter a year ago. The net NPA too declined to 0.76% as against 1.39% in the same period of the previous year.

While, the total income in the first quarter of the current fiscal rose to Rs 3,188 crore as against Rs 2,885 crore.

Shares of J&K Bank closed at 1.31% lower to Rs 101.73 apiece, compared to 0.93% decline in benchmark NSE Nifty 50.

It has fallen 18.45% on a year-to-date basis and 3.66% in the last 12 months.

One analyst tracking the bank has a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 52.4%.