Jammu and Kashmir earnings calls.

Jammu and Kashmir Bank delivered strong business momentum in Q1 FY27 with deposits up 16.75% YoYCurrent reported value: 16.75% YoY. No comparable prior figure is available in the source record. and advances up 25.44% YoYCurrent 25.44% YoY. Reported change: +25.44pp YoY., crossing the Rs 3 trillion business milestone for the first time. However, profitability metrics disappointed with NIM compressed to 3.28% (vs 3.5% guidance) and PAT below year-ago levels. The margin weakness stems from management's strategic decision to pursue competitive corporate lending in Rest of India when J&K credit uptake was subdued last year, combined with elevated deposit costs from bulk term deposits. Management characterized Q1 as a one-quarter aberration and expects sequential normalization from Q2, with NIM recovery toward 3.5% driven by retail growth picking up in J&K and high-cost bulk deposits rolling off. ROA guidance of ~1.25% (matching FY26 levels) and credit growth of 18-20% (vs 12% formal guidance) indicate confidence in recovery. Key risks include persistent deposit competition, ECL model transition impact on provisions, and geopolitical sensitivity of the home state. Rest of India contribution rising to 26% shows successful diversification without compromising 61.13% market share in J&K/Ladakh.