• Loan and deposit growth: J&K Bank revised its FY27 advances growth guidance to over 15% (potentially reaching 17% to 18%) driven by retail, MSME, and regional recovery in Jammu and Kashmir, while deposit growth is targeted at over 12%.
• Net interest margins: Management expects NIMs to follow an upward trajectory toward 3.7% to 3.8% this year, supported by a stronger focus on retail lending and a CASA ratio maintained above 40% to 42%.
• CASA ratio outlook: Although the CASA ratio declined to 42% due to 20% growth in fixed deposits, absolute CASA rose 7% to 7.5% YoY, with an upward recovery expected by the second or third quarter.
• Asset quality: The bank reported no major slippages or stress across any segment and expects overall NPAs to decline further alongside benign credit costs.
• Long-term milestones: Having surpassed the 3 trillion rupee total business mark in the last quarter, the bank expects to achieve its 5 trillion rupee business target well ahead of the 2030 timeline.