SRINAGAR: JK Bank has recorded a robust financial performance for the fiscal year 2024–25, posting a net profit of Rs 2,082.46 crore and a 10 per cent year-on-year growth in its business portfolio, which has touched Rs 2,52,768 crore. The strong showing was reviewed at a high-level meeting chaired by Chief Secretary Atal Dulloo, who urged the bank’s leadership to accelerate inclusive growth, reduce NPAs to national benchmarks, and deepen outreach in high-potential sectors.
The meeting was attended by Principal Secretary, Finance, Santosh D. Vaidya; JK Bank MD & CEO, Amitava Chatterjee; and senior officials from the Finance Department and the bank.
Presenting the bank’s performance, Chatterjee said the gross NPAs have been brought down to 3.37 per cent, a reduction of 71 basis points from the previous year, with a target of bringing it further down to around 2.5 per cent in the current financial year. The bank now holds deposits of Rs 1,48,569 crore and net advances of Rs 1,04,199 crore, with consistent CAGR growth of over 10 per cent.
Key metrics reported include a Return on Assets (RoA) of 1.32 per cent against a peer average of 1.14 per cent, a Return on Equity (RoE) of 17.37 per cent, a Net Interest Margin (NIM) of 3.92 per cent, and a Cost to Income Ratio of 57.73 per cent.
Maintaining a dominant market share of 61.43 per cent in Jammu and Kashmir, J&K Bank services nearly 2 crore deposit and loan accounts through its network of 878 branches and 1,948 Business Correspondents (BCs). The bank surpassed its Annual Credit Plan 2025 target by disbursing Rs 51,839 crore, achieving 182 per cent of its goal. Under priority sector lending, it delivered 134 per cent of the assigned target. It also extended Kisan Credit Cards (KCCs) to 11.33 lakh farmers, covering over 82 per cent of eligible cultivators in the UT.
Reviewing the bank’s performance, Chief Secretary Atal Dulloo commended the growth but underlined the need for sharper focus on operational efficiency, digital inclusion, and strategic sectoral lending.
He called for aggressive NPA reduction through more effective monitoring and recovery mechanisms and asked the bank to boost lending in sectors like agriculture, industry, high-density plantation, fisheries, dairy, and youth entrepreneurship. Dulloo stressed redesigning loan products under Mission YUVA, NRLM SHGs, KCC and Homestay schemes to better suit emerging entrepreneurs and rural clients.
“The bank must move beyond its traditional clientele and expand its footprint to more dynamic business segments. Financial inclusion must translate into saturation-level coverage under schemes like PMJJBY, PMSBY, and APY,” Dulloo said.
He also emphasised improving the bank’s Capital Adequacy Ratio and urged investment in digital platforms to ensure transparent, secure and accessible banking across the UT.
Principal Secretary, Finance, Santosh D Vaidya raised concerns over rising cyber frauds across the country and advised the bank to study local fraud patterns to frame an effective risk mitigation strategy. He also encouraged diversification into insurance, forex, and allied financial services, leveraging the bank’s regional presence to negotiate competitive terms.
As the region’s financial mainstay, JK Bank’s performance reflects growing confidence and operational strength. But the message from the top was unequivocal: the numbers are encouraging, yet the challenge lies in inclusive expansion, sectoral depth, and digital transformation to truly serve Jammu and Kashmir’s development goals.
