Chief Secretary, Atal Dulloo, today chaired a high level meeting to review the business performance of J&K Bank besides deliberating on strategies for enhancing its financial strength and service outreach across the Union Territory.
The meeting was attended by Principal Secretary, Finance, Santosh D. Vaidya; Managing Director & CEO, J&K Bank, Amitava Chatterjee and other senior officials of the bank and the Finance Department.
The Chief Secretary lauded the growth trajectory of J&K Bank while emphasising the need for sustained focus on improving the operational efficiency and financial inclusion. He stressed upon the management to bring the Gross Non-Performing Assets (NPAs) down to national averages through effective monitoring and recovery mechanisms.
Highlighting the critical role of the bank in J&K’s economic development, Dulloo urged the leadership to scale up priority sector lending, particularly in high-potential sectors like agriculture, industry, high-density plantation, fisheries, dairy and self-employment ventures. He emphasized redesigning the loan products under Mission YUVA, NRLM SHGs, Kisan Credit Card (KCC) and Homestay schemes to be more attractive, accessible and entrepreneur-friendly. He also encouraged the bank to think beyond traditional clientele especially that of the government employees and explore diversified business avenues to enhance the profitability.
Calling for faster adoption of digital solutions and improved customer service delivery, he directed the bank to work towards saturation of financial inclusion schemes such as PMJJBY, PMSBY, and APY across the UT.
The Chief Secretary also underscored the importance of improving the bank’s Capital Adequacy Ratio and investment in digital infrastructure to make banking more inclusive, transparent and user-friendly.
Principal Secretary, Finance, Santosh D. Vaidya, while speaking in the meeting, highlighted the growing incidence of cyber frauds all over the nation. He advised the bank to conduct an in-depth analysis of such crimes to formulate a localized risk mitigation strategy.
He further encouraged the bank to diversify its portfolio by tapping into insurance, forex and allied financial services and leverage its widespread presence in the region to negotiate favourable business terms.
Presenting a detailed overview of the bank’s performance, MD & CEO, Amitava Chatterjee, informed that J&K Bank achieved a total business portfolio of ₹2,52,768 crore during FY 2024–25, marking a 10% year-on-year growth. He shared that gross NPAs have been reduced to 3.37%, down by 71 basis points from the previous year and going to be brought to around 2.5% till closure of the ensuing financial year.
Some of the key highlights of J&K Bank’s performance presented in the meeting included earning a Net Profit (FY 2024–25) of ₹2,082.46 crore (CAGR 31.88%) having deposits of ₹1,48,569 crore with CAGR of 10.34%, Net Advances of ₹1,04,199 crore, Return on Assets (RoA) at 1.32% (peer average 1.14), Return on Equity (RoE) at 17.37%, Cost to Income Ratio of 57.73% and Net Interest Margin (NIM) of 3.92% registered by the bank in the previous year of its operation.
It was also divulged that J&K Bank maintains a dominant 61.43% market share in the UT and serves around 2 crore accounts (deposits & advances) through a strong network of 878 bank branches and 1,948 Business Correspondents (BCs).
The bank has also reported a stellar performance under the Annual Credit Plan 2025, disbursing ₹51,839 crore which accounts for 182% of its target. Under priority sector lending, the bank has achieved 134% of the set target. It has extended the benefits of KCC to 11.33 lakh farmers, covering over 82% of eligible beneficiaries in J&K.
Additionally, the J&K Bank continues to play a pivotal role in implementing the Central and UT government schemes such as PMEGP, NRLM, PMAY, PMJJBY and PMSBY, ensuring financial support to the underserved populations across the UT.
