Questions across 5 calls

Amitava Chatterjee

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The Jammu & Kashmir Bank Limited

The Jammu & Kashmir Bank Limited CC-Jan26.pdf · 2026-01-20

Thank you very much. The focus on NPA recovery has been very, very constant for the last 9 quarters and more. We have not only reduced the gross NPA in percentage terms, but also in absolute terms. So this is the gross NPA that I'm talking about. If you even consider the SMA, March to December, the SMAs also have reduced by around 50%. So the prospect of adding NPAs is very low. The credit cost is nil. We have continuously been engaged in NPA recovery for quite some time now. So that is one part where the discipline on recovery would continue to be in focus for us. While I mentioned that credit growth has this time been balanced between the Rest of India and Jammu & Kashmir and Ladakh territories, with almost 43% coming from Rest of India and 57% from Jammu and Kashmir, which is our home territory. And similarly, the retail and corporate has also been balanced. So the idea of high potential areas has already started chipping in. So this has been the strategy of the bank for the last 1 year, and I believe we will continue to do that.

Yes, Ketan Joshi is here.

The Jammu & Kashmir Bank Limited CC-Sep25.pdf · 2025-10-18

Okay. Sahil. Thanks, Sahil, for this question. That GST notice has not been pursued by the GST Council. We had already obtained a stay on the notice from the court and the court had given a time line to the GST Council to come and present their case, and t hey have not done it. So we are waiting for the court's judgment. In all probability as they have not contested the stay, so it is definitely going to be in our favor.

Okay. That is a release of provision for non-fund exposures of NPA borrowers.

The Jammu & Kashmir Bank Limited CC-Jun25.pdf · 2025-07-28

You want the entire breakup of other income, or you want what has changed?

See, the other income if I give you the changes that have happened, there has been a decrease in commission exchange income by around INR11 crores, but there has been an increase in trading and treasury income by almost INR 25 crores. There is a decrease in miscellaneous income by INR169 crores, that was on account of technically written -off recovery reduced by INR173 crores due to NARCL release of provisions in Q4, and this is as far as Q oQ is concerned. And as for YoY, the decrease in treasury income by INR32 crores that is on account of INR87 crores impairment that I spoke of, increase in technically written-off recovery by INR45 crores , then there are some penal charges for SMA, INR12 crores , increase in the minimum balance charges by around INR9 crores , increase in the income on card business by INR7 crores, and increase in SMS charges by INR5 crores. This is the break-up. If you want a guidance for the future, we intend to have a very strong focus on the other income part for the Bank. We have been augmenting our treasury, and we had a consultant, I mean, identified for that and the repor t, it is now getting implemented. So, we have a very robust mechanism to see that we increase our treasury and FOREX income going forward. So, this will be something which we will be looking forward to. There is also some reason I can say that some technically written-off recovery that was expected this quarter has not happened. In due course, it is going to happen. The other thing is why it looks a little bleak is because of the INR87 crores impairment that has happened because of the amalgamation of our J K Gram een Bank with the Ellaquai Dehati Bank as per the government guidelines. So, the Bank that we inherited as a sponsor was not doing well and because of our investment in that amalgamated entity as per the revised guidelines of Reserve Bank of India we had to provide for. Otherwise, if you exclude that, the profit in fact is upwards of almost 30% YoY.

The Jammu & Kashmir Bank Limited CC-Mar25.pdf · 2025-05-06

See, we haven't yet finally decided on that. I said that we may be raising, it depends on the requirement of the credit growth that we may be expecting. At the moment, I said that we are comfortably placed with the CRAR. Going forward, if the credit growth demands a raise, we will look at all the options.

I mentioned it, Rs. 390 crores.

The Jammu & Kashmir Bank Limited CC-Dec24.pdf · 2025-01-21

I believe that the credit cost because of whatever the Bank has done in the last 6 -7 quarters I believe on both sides, reduction of NPAs as well as providing for the bad loans, the credit cost will continue to remain benign. I have no doubt in that. So, if you are looking at the cost to income ratio, yes, you are right that the cost side has almost bottomed out if I can say because the employee cost, which was a major part of the cost side has been now controlled because of what you said the division in the pension conditions and pension terms. I believe going forward the aim of the Bank is to increase the numerator that is the income side. There are several opportunities, I guess the opportunities related to the selling of third-party products will be more intensified to increase the augmentary income as well as I believe this Bank in the credit side has been somewhat lacking in the non -fund-based business area. So, this is also one area because we have taken exposures in various companies on our top-line improvement basis only, while we have not been able to capture their other businesses specially the non -fund- based business which is a ver y important source of other income. So, this effort will continue like you said for the next 2-3 years beginning now and also there are a few low -hanging fruits where we have chances of recovery in our technically written -off accounts. So, all these three things put together, I believe that the cost-to-income ratio will be as close to 50% as possible , my personal target would be to bring it below 50%. I cannot immediately give a timeline to it, but the timeline that you said 2-3 years, definitely, within that period, we will be able to bring it below 50%.

Yes, that is true.