‘We aim to be a key driver turning potential into prosperity’
Nishikant Khajuria
JAMMU, Aug 20: As Jammu & Kashmir Bank has posted its highest-ever first-quarter profit this fiscal, marking yet another milestone in its turnaround journey, Managing Director (MD) and Chief Executive Officer (CEO) of the Bank, Amitava Chatterjee attributed this robust performance to a series of structural reforms, aggressive retail expansion, and a renewed focus on agriculture financing.
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“This record profitability is the outcome of a series of structural reforms implemented by the bank over the past few years , aimed at enhancing operational efficiency and productivity,” he told the Excelsior, in an exclusive interview.
While elaborating, Chatterjee said that J&K Bank has transitioned from a four-layer to a five-layer organisational structure by introducing divisional offices, each headed by a General Manager, for Jammu, Kashmir, and Rest of India (ROI) to strengthen business management and monitoring while dedicated branches have been set up for handling impaired asset portfolio for better NPA resolution.
Further, he added, the bank has established Centralised Processing Centres (CPCs) for retail loans while CPCs for corporate loans across all divisions has also been initiated to ensure faster turnaround times (TAT) and standardised processing . “Through CPCs, we’ve automated most of our retail loan journeys and moved them to a Retail Loan Origination System (RLOS),” he said.
“These reforms have been complemented by strong growth in our retail and agricultural segments. All these initiatives together have accelerated our business growth, improved our asset quality, enhanced our operational efficiency and ultimately boosted our profitability,” he explained.
With agriculture forming the backbone of J&K’s economy, J&K Bank has aggressively expanded its agriculture loan portfolio, setting an ambitious target of Rs 5,000 crore in agri-lending this fiscal.
“Agriculture sustains a large section of our population and ensures food security. We’ve launched the J&K Bank All Purpose Agri Term Loan, designed to offer farmers and agri-entrepreneurs quick and hassle-free financing for any form of agricultural activity,” he said.
The Bank has already recorded Rs 1,500 crore in agricultural credit offtake in Q1 alone, signalling both strong demand and successful outreach. In addition, J&K Bank’s diverse bouquet of agri-finance schemes includes Kisan Credit Card (KCC) for crop and animal husbandry, Mini Sheep Farm scheme, Kisan Dost programme, Agriculture Infrastructure Fund, Cold Store Financing and the High-Density Plantation Scheme for apple, walnut, almond, cherry, mango, litchi, and olive.
The Bank has also aligned its products with the Government’s Holistic Agriculture Development Plan (HADP), a flagship initiative aimed at modernising farming practices and improving productivity.
“By integrating agricultural schemes on our CPC platform for faster, standardised approval, we are well positioned to comfortably meet our Rs 5000 crore Agri-lending target for this fiscal,” said MD & CEO, adding that “J&K Bank aims to be a key driver of agricultural transformation across Jammu, Kashmir and Ladakh-turning potential into prosperity for every farmer we serve.”
Informing that J&K Bank’s retail business outside J&K has seen impressive growth, particularly in personal, housing, and auto loans, Amitava Chatterjee said that the bank is aggressively expanding its sourcing channels through branches, marketing teams, direct selling agents, and builder tie-ups to ensure a steady flow of credit opportunities.
“Housing loans, auto loans, and loans against property (LAP) remain key target products, complemented by a sharper focus on MSME financing and trade finance,” he said and disclosed that the bank is also setting up three additional Cluster Offices outside J&K to enhance outreach and business generation.
In response to a query, the MD & CEO clarified that even as the bank continues to focus on retail growth, it has not sidelined corporate lending.
“We have no intention of reducing our exposure to large corporates. While we remain a retail-focused bank, corporate banking is also an important part of our loan book complementing our retail portfolio,” he said.
However, he added, our approach in corporate lending is selective, prioritising investment-grade clients with a balanced mix of Public Sector Undertakings and top-rated private corporates. “Further, in the current falling interest rate scenario, we are very particular about the terms on which we lend, in order to protect our margins. Our focus is on striking a balance between growth, asset quality and margins rather than chasing every deal on offer,” he explained.
Reiterating that the bank continues to remain focused on retail growth across its core geographies of J&K and Ladakh as well as Rest of India, the MED & CEO said that this balanced strategy allows them to optimise returns while maintaining prudent credit discipline across both corporate and retail segments.
For operational efficiency, Amitava Chatterjee said that the Bank already has Centralised Processing Centres (CPCs) for retail loans and has now started CPCs for large corporate loans as well. “Through these CPCs, we will standardise workflows, leverage technology to automate routine steps and improve underwriting standards. This will result in enhanced efficiency, reduce turnaround time and processing costs,” he said, adding that integrated with systems like CBS, IMACS, CIBIL, JKCPIS and fintech platforms, CPCs enable fully automated, end-to-end digital processing – from customer onboarding to credit assessment and monitoring.
“This standardized approach benefits the customers by way of quicker approvals and a smoother service with a consistent experience. At the same time, it also allows the Bank to scale lending efficiently without compromising on quality,” he explained.
Pertinent to mention that building on a hat-trick of record annual profits, the J&K Bank has recently reported a Q1 profit of Rs 484.84 crore, a 16.7 percent jump over the same period last year.
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