by Mudasir Majeed Pir
SRINAGAR: Jammu and Kashmir Bank on Tuesday outlined a strategy focused on sustainable growth, stronger capital buffers and digital transformation as it held its 88th Annual General Meeting at the Sher-i-Kashmir International Convention Centre (SKICC) here.
The AGM, themed “Trust, Tradition and Transformation”, was addressed by Managing Director and CEO Amitava Chatterjee, who said the bank recorded a return on assets (ROA) of 1.37 per cent and return on equity (ROE) of 18.85 per cent, “comfortably surpassing” its market guidance.
Chatterjee also highlighted the bank’s highest-ever capital adequacy ratio (CAR) of 16.55 per cent, with Common Equity Tier 1 (CET1) at 13.54 per cent. He said the position would provide adequate capacity for sustainable expansion while preparing the bank for an evolving regulatory environment, including the transition to the expected credit loss (ECL) framework.
“For the long-term value creation, the focus will remain on the quality and sustainability of earnings rather than growth in isolation,” he said.
On the decision not to pay a dividend this year despite the record profit, Chatterjee told shareholders that the decision was driven by the prevailing geopolitical situation, the impending ECL-related regulatory changes and the bank’s growth requirements.
“The geopolitical situation that was prevailing in the country for a long time. Second, the regulations related to expected credit loss are going to commence. Also, looking at the growth perspective of the bank, it was felt prudent by the major stakeholders of the bank that bank needs to conserve capital despite the record profit and see how things progress during this financial year,” he said.
He, however, assured shareholders that the decision did not signal a change in the bank’s approach to dividends.
“Going forward, dividends will be doled out as usual in the coming years,” Chatterjee said.
Responding to a shareholder’s question on why the bank needed to raise capital despite having a CAR of 16.55 per cent, Chatterjee said the requirement was linked to the bank’s growth trajectory, regulatory changes and the uncertain geopolitical environment.
“We need more capital because the bank is on a growth trajectory. So, for growth it is needed. Also, capital is required for the changing regulatory environment of expected credit loss (ECL),” he said.
“Third is the uncertain geopolitical environment which sends a message to each financial institution to shore up and conserve capital.”
On branch expansion, Chatterjee said the bank plans to expand its branch network in Jammu and Kashmir as well as elsewhere in India, but stressed that the expansion would be guided by commercial viability.
“We will open branch only when we feel they are viable, productive and remunerative. We have an overall target of more than 100 branches for the next two years,” he said.
The CEO also addressed concerns over the decline in the bank’s CASA ratio, traditionally one of its key strengths, saying the fall was part of a broader industry trend.
“The CASA ratio has been depleting. But that has not been depleting for J&K Bank alone. It has been the case for the entire industry,” he said.
Chatterjee said J&K Bank nevertheless continued to have one of the higher CASA ratios in the country, with CASA above 45 per cent as of March 31, 2026.
“It will not be factually correct that we have been losing CASA. In absolute terms we have been improving CASA; in percentage, it has been going down,” he said.
He attributed the decline in the ratio partly to a broader shift by savers towards instruments offering higher returns.
“The trend towards investments and savings has been towards high-return instruments like fixed deposits, capital markets and mutual funds, which is a good sign for the country’s economy,” he said.
At the same time, he said the bank remained focused on improving its CASA ratio.
“But we are very sensitive to this, and we have already been making efforts to improve the CASA ratio.”
Chatterjee also outlined the bank’s digital transformation agenda, saying investments in digital platforms, data analytics and cybersecurity were aimed at improving customer experience and operational efficiency.
“We are equally focussed on building a future-ready bank. Our investments in digital platforms, data analytics and cyber security are improving customer experience and making our operations more efficient and responsive,” he said.
He said the rapid growth of digital transactions, which reached 94 per cent during FY 2025-26, demonstrated the increasing use of the bank’s digital ecosystem. He added that cybersecurity would remain integral as the bank’s digital footprint expanded.
Chatterjee said J&K Bank remained committed to the economic advancement of Jammu and Kashmir and Ladakh while expanding its presence and diversifying its business across the country.
“Our aspiration is to become the bank of choice. Towards this role we will continue to invest in our people, reinforce cyber security, improve customer experience and institutionalise the culture of innovation,” he said.
The AGM brought together the bank’s shareholders and management as J&K Bank seeks to balance growth with capital conservation, profitability and preparedness for a changing regulatory environment.
