Jammu and Kashmir · forward-looking guidance across the available source record.
Guidance tracker
Management expects actual credit growth to be 18-20% despite formal guidance of 12%, with J&K growing 12-13% and Rest of India growing ~25%. Growth in J&K retail has doubled compared to last year's Q1.
Current quarter's 3.28% NIM is a one-quarter aberration. Sequential improvement expected as low-yielding financial market loans mature and high-cost bulk deposits run off, with retail growth (yielding ~200bps higher than corporate) providing support.
New vertical headed by a GM created exclusively for CASA improvement; MoU with J&K police for salary accounts secured; three fresh salary package MoUs signed in July with corporates of 500-1500 employees.
Maintaining FY27 targets: 12% credit growth, 10% deposit growth, CASA 45%, NIM ~3.5%, ROA ~2026 levels, ROE ~16%, GNPA below 2.25%. Formal guidance revision only after Q2 results.
Management reiterated credit growth guidance of 12-15% for FY26, with a robust pipeline but constrained by deposit growth.
NIM is expected to be in the range of 3.65-3.70% for FY26, with sequential improvement in Q4 as deposit repricing completes.
Board approved raising ₹750 crore equity and ₹500 crore Tier-2 capital, with QIP targeted by March 2026 but may spill over.
Management aims to increase credit-deposit ratio to 76-77% from current 72%, supported by capital raise and deposit growth.
Management guided for 12% loan growth, but expects to outperform if system growth is higher.
Deposit growth guided at 10%, with CASA ratio maintained at 45%.
Net interest margin guided at 3.5%, with potential upside as retail yields recover.
Return ratios guided to remain near current levels, with conservative assumptions.