Jammu & Kashmir Bank Ltd.
NSE: J&KBANKJammu & Kashmir Bank Ltd.: A 30-second snapshot
J&K Bank (₹130.7) reported its highest-ever annual profit of ₹2,363 crore in FY26, with Q4 net profit up 37% YoY driven by steady net interest income and lower asset stress. The stock has risen 31.3% over 12 months and trades above both its 50-DMA (₹124.9) and 200-DMA (₹109.09), with a PE of 6.10 — the lowest among the six tracked peers in the Banking sector.
P/E
6.1
Forward P/E
5.6
ROE
+15.4%
Debt / Equity
—
Profit Margin
+34.7%
Div. Yield
+1.6%
5Y ROE > 15%
0/5
5Y FCF > 0
1/5
Quality
64/100
News
8 headlines · 4 positive · 1 negative
High Court Refuses To Quash FIR Against Former J&K Bank Executives In IFFCO TOKIO Insurance Deal Case - Live Law
Live Law
J&K Bank posts highest ever annual profit of Rs Rs 2363 crore in FY26 - The Economic Times
The Economic Times
J&K Bank Q4 net profit surges 37%, driven by steady NII and lower asset stress - CNBC TV18
CNBC TV18
J&K Bank appoints Ashish Kundra, Pravin Raghavendra as Addl Directors - Daily Excelsior
Daily Excelsior
Jammu & Kashmir Bank adds senior bureaucrat and ex-SBI COO to its board - TipRanks
TipRanks
Recent context
- ·FY26 annual profit of ₹2,363 crore — the bank's highest on record — was reported in early May 2026; Q4 net profit rose 37% YoY, attributed to steady net interest income and reduced asset-quality stress (Economic Times, CNBC TV18, May 2026).
- ·Two board-level appointments — Ashish Kundra and Pravin Raghavendra (former SBI COO) as Additional Directors — were announced in April 2026, continuing board restructuring under the J&K government's majority ownership.
- ·The Jammu and Kashmir High Court in May 2026 declined to quash a criminal FIR against former executives related to the IFFCO TOKIO insurance deal; the case remains in active judicial proceedings (Live Law, 16 May 2026).
Strengths
- +PE of 6.10 is the lowest of 6 tracked sector peers; even compared to pure-bank peers AXISBANK (14.7) and HDFCBANK (17.2), the valuation gap is substantial, with forward PE compressing further to 5.61.
- +Q4 FY26 net profit grew 37% YoY and FY26 full-year profit of ₹2,363 crore is the bank's highest on record, with lower asset-quality stress cited as a key driver alongside steady NII.
- +Quality score of 65 ranks 1st of 6 tracked peers; ROE of 15.37% ranks 2nd, ahead of AXISBANK (13.15%), HDFCBANK (13.82%), BAJAJFINSV (14.6%), and HDFCLIFE (11.28%).
- +Price is 19.8% above its 200-DMA (₹109.09) and 4.6% above its 50-DMA (₹124.9), with RSI at 50.84 — in neutral territory with no near-term overbought reading on the indicator.
Weaknesses
- −Earnings quality persistence is weak: historical ROE exceeded 15% in zero of the tracked years, FCF was positive in only 1 year, and the consistency score is 28/100 — suggesting current profitability may not reflect a durable multi-cycle track record.
- −Debt trend is classified as rising with no debt-to-equity ratio available; for a bank with limited FCF history, rising liabilities without a disclosed leverage ratio reduces balance-sheet transparency.
- −The High Court's refusal (May 2026) to quash a criminal FIR against former executives in the IFFCO TOKIO insurance deal case leaves an active governance-related legal overhang unresolved.
- −Analyst coverage is limited to 1 analyst (rating 1.0 on the 1–5 scale, lower = more constructive), providing minimal independent sell-side scrutiny of the bank's financial disclosures.
Open questions
- ?How much of J&K Bank's FY26 profit improvement reflects a structural reduction in credit costs versus a one-time normalization of provisioning, and what does the NIM trend look like over the last 8 quarters?
- ?Does the J&K government's majority ownership influence credit allocation decisions, and how has directed lending shaped the asset-quality trajectory relative to private-sector peers?
- ?What explains the gap between the current ROE of 15.37% and the historical track record of zero years above 15%? Does the FY26 result mark a regime shift or a cyclical peak?
- ?How does the bank's geographic concentration in Jammu and Kashmir — a region with distinct political and economic dynamics — affect its loan-growth ceiling and credit-risk profile relative to pan-India private banks?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| J&KBANK | Jammu & Kashmir Bank Ltd.You're viewing | 6.1 | +15.4% | 65 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.8 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.4 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹130.70
SMA 50
₹124.90
SMA 200
₹109.09
RSI (14)
50.8 (neutral)
From 52w high
-9.9%
1Y return
+31.3%
3M return
+24.4%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumEarnings quality persistence is weak: the consistency score is 28/100, FCF was positive in only 1 of the available years, and historical ROE exceeded 15% in zero of the tracked years — the current 15.37% ROE sits at the threshold but lacks a multi-cycle track record. Debt trend is classified as rising with no debt-to-equity ratio disclosed, reducing balance-sheet transparency.
- mediumThe Jammu and Kashmir High Court (May 2026) refused to quash a criminal FIR against former J&K Bank executives in the IFFCO TOKIO insurance deal case — an active legal overhang from prior management remains in judicial proceedings (Live Law, 16 May 2026).
- lowAnalyst coverage is limited to 1 analyst (rating 1.0 on the 1–5 scale, lower = more constructive); a single-analyst data point carries no statistical weight as a consensus signal and provides limited independent scrutiny of disclosed financials.
- lowThe peer group includes NBFCs (Bajaj Finance PE 29.8, Bajaj Finserv PE 28.4) and an insurer (HDFC Life PE 68.5) alongside pure banks, making the aggregate PE comparison partially mixed; J&K Bank PE of 6.10 is still well below pure-bank peers AXISBANK (14.7) and HDFCBANK (17.2).
Cross-section contradictions
- Earnings quality persistence is weak — consistency score 28/100, FCF positive in 1 year, zero historical years with ROE above 15% — yet the stock has risen 31.3% over 12 months and 24.5% over 3 months, trading above both its 50-DMA (₹124.9) and 200-DMA (₹109.09); recent price momentum diverges from the long-run quality track record.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days