JAMMU & KASHMIR BANK LTD.

Jammu & Kashmir Bank Ltd has received a significant clarification from the Central Board of Indirect Taxes and Customs (CBIC) regarding the Goods and Services Tax (GST) treatment of its Funds Transfer Pricing (FTP) mechanism. The CBIC, through a circular dated October 28, 2026, has clarified that the notional interest recorded in banks' books under the FTP mechanism is considered 'interest' and is therefore exempt from GST under Notification No. 12/2017-Central Tax (Rate). This clarification validates the bank's long-standing stance that FTP amounts are notional interest and not taxable. The bank had previously faced substantial demand orders for GST, interest, and penalties totaling over ₹8,130.66 Crores and ₹200.20 Crores, against which it had obtained interim protection from the High Court. With this clarification, the bank intends to pursue the quashing of these demand orders.

J&K Bank reported a net profit of ₹546.36 Cr for the second quarter ended September 30, 2026, marking a 10.6% year-on-year increase and a 28.8% quarter-on-quarter rise. Total business grew by 19.38% YoY to ₹3.10 lakh Cr. Gross advances increased by 23.72% to ₹1.33 lakh Cr, and total deposits rose by 16.30% to ₹1.76 lakh Cr. The bank achieved its best asset quality metrics in a decade, with the Gross NPA ratio declining to 2.23% and the Net NPA ratio improving to 0.51%. The Provision Coverage Ratio (PCR) also reached a decadal best of 91.76%. Net Interest Income (NII) grew 5% YoY to ₹1502 Cr, and other income doubled YoY to ₹314.90 Cr. Operating profit for the half-year grew over 15% YoY to ₹1,492 Cr.

Jammu & Kashmir Bank Ltd has submitted its Related Party Disclosure for the period ended September 30, 2026, on a consolidated basis. The disclosure, prepared in accordance with applicable accounting standards, details transactions with related parties including subsidiaries and associates. Key transactions include deposits, advances, and reimbursements with JKB Financial Services Ltd, and interest paid/received with Jammu and Kashmir Grameen Bank. Remuneration and variable pay payments to MD & CEO and other key management personnel are also reported. The total value of transactions reported is ₹82.51 Crores.

Jammu & Kashmir Bank Limited has filed a Statement of Deviation(s)/Variation(s) in the utilization of funds raised through preferential issues. The bank raised ₹250 crores on March 20, 2017, ₹282 crores on June 7, 2017, and ₹500 crores on March 31, 2020. For all these issuances, the bank confirms that there has been no deviation or variation in the utilization of funds. The funds were raised to meet the growing business needs, including long-term capital requirements for growth plans and to maintain Capital Adequacy Ratio as per RBI guidelines. The entire amount raised has been utilized for the stated objectives.

Jammu & Kashmir Bank Ltd announced its integrated financial results for the Quarter and Half Year ended September 30, 2026. The results were approved by the Board of Directors during a meeting held on October 22, 2026. The financial statements were prepared in accordance with Accounting Standard 25 and comply with relevant banking regulations and RBI guidelines. The independent auditors, Gupta Gupta & Associates LLP, J C R & Co. LLP, Dhar Tiku & Co., and Gupta Sharma & Associates, have reviewed the unaudited standalone financial results. Their review confirmed compliance with disclosure requirements, except for Pillar 3 disclosures which are available on the bank's website.

Jammu & Kashmir Bank Ltd has announced its reviewed financial results for the quarter and half-year ended September 30, 2026. The results were approved by the Board of Directors during a meeting held on October 22, 2026. The financial statements were prepared in accordance with Accounting Standard 25 and comply with relevant RBI guidelines and SEBI Listing Regulations. The independent auditors, Gupta Gupta & Associates LLP and others, have conducted a limited review of the unaudited standalone financial results, confirming compliance with applicable standards and regulations, with an exception noted for Pillar 3 disclosures. The review incorporated data from 132 branches, treasury operations, credit card division, and corporate office departments, along with certified returns from branches representing 22.97% of the advances portfolio and 43.08% of non-performing assets.

Jammu & Kashmir Bank's consolidated PAT for Q2 FY27 came in at ₹552.70 Cr, up 11.7% year-on-year from ₹494.92 Cr and up 28.9% quarter-on-quarter from ₹428.80 Cr (standalone PAT was ₹546.36 Cr, +10.6% YoY — a near-identical read, so basis doesn't change the story). The reported YoY growth is flattered by a ₹28.88 Cr prior-period gain on FVTPL-classified unlisted equity investments (Note 34) booked to Other Income this quarter; stripping it out, adjusted YoY PAT growth is closer to ~7.3%. No specific Street consensus PAT estimate for this print turned up in search — the pre-result preview carried a BUY/₹218 target-price consensus (26% implied upside) rather than an earnings number, so vsStreet is unknown. Against management's own FY27 guidance from the Q1 concall, the quarter is mixed: credit and deposit growth both ran well ahead of target and asset quality improved inside the guided threshold, but return on assets missed the guided level. The margin story is the quarter's real signal. Operating margin expanded to 21.20% of interest income from 18.94% a year ago, but net profit margin compressed to 13.52% from 14.34%, because provisions and contingencies jumped 6.6x YoY to ₹72.35 Cr from ₹10.93 Cr — even as gross NPAs improved sharply to 2.23% from 3.32% a year ago and 2.37% last quarter, comfortably inside the bank's own <2.25% target, with provision coverage rising to 91.76% from 90.53%. That combination suggests the provision build looks more like deliberate coverage-building than rising stress. Net interest income grew just 4.78% YoY and was essentially flat quarter-on-quarter (+0.35%) even as standalone advances grew 24.8% YoY to ₹1,31,234 Cr — well above the 18-20% FY27 credit-growth guidance — while deposits grew a slower 16.3% YoY to ₹1,76,796 Cr. That is exactly the growth-outpacing-deposits dynamic our pre-result preview flagged as a NIM risk; Q1 FY27's NIM was 3.28% against a 3.5% target, and the flat NII trend this quarter suggests that pressure has not eased, though the bank did not separately disclose a Q2 NIM figure. Annualized ROA came in at 1.07%, below both the revised 1.25%+ and original 1.37% guidance, though up from 0.87% in Q1 FY27. Among the quarter's corporate developments, provisional business data released October 3, 2026 (total business +19.38% YoY to ₹3,10,347 Cr) lines up closely with the final reported advances-plus-deposits base of roughly ₹3,08,000 Cr standalone, confirming the growth trend ahead of the print. The October 16, 2026 completion of the PNB MetLife stake sale for ₹120.1 Cr falls after the September 30 quarter-end and is not reflected in these numbers — a subsequent capital action, not a driver of this quarter's P&L. No separate management press release accompanied this filing, so there is no additional management framing to reconcile against the numbers. Capital position strengthened, with standalone CET1 at 13.88% versus 12.11% a year ago, giving headroom for continued advances growth. Going into Q3 FY27, the quarter sets up a clear tension: the bank is executing ahead of its own credit-growth and asset-quality guidance, but the deposit-funding gap and the pace of provisioning are the items to track for whether margins stabilize. With ROA still below target and a one-off cushioning this quarter's headline growth, the underlying profitability trend — not the reported PAT print — is the number to watch next quarter.

Jammu & Kashmir Bank Ltd announced the successful completion of its transaction with MetLife International Holdings, LLC, Barclays Securities (India) Private Limited, Barclays Wealth Trustees (India) Private Limited, and Barclays Bank PLC. The bank sold its shares in PNB Metlife India Insurance Company Limited at ₹117.20 per equity share, realizing an aggregate amount of ₹120,09,89,186/-. This sale represents a 0.5% stake in PNB Metlife India Insurance Company Limited. The transaction involved an escrow agreement to facilitate the transfer of shares and sale consideration.

Dr. Mandeep K Bhandari, IAS, Non-Executive Non-Independent Director of Jammu & Kashmir Bank Ltd, has resigned from his position effective October 13, 2026. The resignation is due to his official engagements. Consequently, he has ceased to be a Director of the Bank. The bank has provided the requisite details as per SEBI regulations.

Dr. Mandeep K Bhandari, IAS, Non-Executive Non-Independent Director of Jammu & Kashmir Bank Ltd, has resigned from his position effective October 13, 2026. The resignation is due to his official engagements. Consequently, he has ceased to be a Director of the Bank. The bank has provided the requisite details as per SEBI regulations.