MD/CEO Amitava Chatterjee shares bank outlook, growth trajectory
Nishikant Khajuria
JAMMU, Jan 23: With steady increase in earnings, focus on asset quality and digital push, Jammu and Kashmir Bank is targeting to achieve Rs 5 lakh crore annual business and Rs 5000 crore profit within next five years.
This was stated by J&K Bank Managing Director and Chief Executive Officer, Amitava Chatterjee during an exclusive interview with the Excelsior.
“We are going to equip the J&K bank with latest technology offering top most digital banking services and multiply the business in retail lending, especially in other parts of the country while ensuring no slippage,” he said and added that the bank is confident to achieve the goal in less than five years.
Expressing confidence about the bank’s financial stability and growth trajectory, the MD said that the third quarter of FY 2025-26 reflected steady improvement in profitability, asset quality and operational efficiency despite a challenging economic environment in the region and 125 point cut in repo rate by the Reserve Bank of India.
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Chatterjee said the bank’s Q3 performance was driven by all ingredients required for earning profit by an organization, which included higher net interest income, improved recovery from stressed accounts and tight control over slippages. He noted that sustained focus on core banking operations and calibrated credit growth helped the bank post impressive profits during the last quarter.
On asset quality, the CEO said both Gross and Net NPAs have shown a declining trend, reflecting improved credit discipline and effective recovery mechanisms. He acknowledged that legacy stressed assets, particularly in real estate affected by earlier economic disruptions, continue to require close monitoring, but asserted that fresh slippages was completely under control.
“In the last quarter, we recovered Rs 40-50 crore from written off accounts with the result NPAs of the bank have decreased from 4.02 percent to 3 percent, almost at national average whereas it was around 10 percent only 2-3 years back,” said Amitava Chatterjee and predicted that by the end of current financial year, J&K Bank NPAs will be brought down between 2-3 percent.
He claimed that this improvement was not cosmetic but actual recovery leading to Rs 500 crore absolute reduction in NPAs from December 2024, when he had taken over as MD of the bank. “We have also contained fresh slippages and this is the reason that J&K Bank has now negative provisioning unlike other banks,” he added.
Highlighting the bank’s developmental role, the MD said J&K Bank continues to maintain significant exposure to priority sectors such as agriculture, MSMEs, self-employment and Government-sponsored schemes. He said lending to these segments remains a key pillar of the bank’s strategy, especially in the J&K Union Territory where employment generation and entrepreneurship are critical.
Informing that 1.35 lakh entrepresis are being established in Jammu and Kashmir under Mission Yuva for employment to 4.5 lakh youth and J&K Bank is the sole banker, the MD disclosed that the bank has so far sanctioned 15000 loans in last five months. “I believe no Government scheme has witnessed as much progress in such a short period,” he said and added that the target of 30000 sanctions will be completed during the current FY.
On capital position, Chatterjee said the J&K Bank’s Capital Adequacy Ratio (CAR) as of now is comfortably above regulatory requirements and sufficient to support planned growth. “Our present CAR is 15 percent, which is more than sufficient for regulatory requirement and without any external support J&K Bank is very strong in capital,” he said.
Besides, he added, the bank has got approval of raising Rs 1250 crore capital from market instruments. “We are working on that and will raise the capital at suitable time. Aim is to reach 17-18 percent CAR so that we need not to worry about capital infusion for growth in near future,’ he explained.
Speaking on digital banking, the MD admitted that J&K Bank was late in introducing the technology because of low profits. However, he said, with increase in profit, we are now spending Rs 300-400 crore on IT and presently the bank has 90 percent digital penetration.
“Our aim is to make J&K Bank completely digital with number one at national level, which will increase customer acquisition and transaction volumes besides reducing dependence on physical branches and improving customer convenience,” he said.
On cyber-security and digital frauds, the MD explained that it is more an awareness issue. “J&K Bank is among top in cyber security and it is pertinent to mention that after April 22 attack when number of Government apps were hacked, not even a single app of J&K Bank could be breached,” he said.
On balancing profitability with its developmental mandate, the Chairman said J&K Bank remains committed to supporting the socio-economic development of the Union Territory while ensuring financial sustainability. “Profitability and development are not mutually exclusive,” he remarked.
Looking ahead, the MD expressed optimism about Q4 and the next financial year, citing stable macro indicators and improved internal fundamentals. “Besides opportunities in MSMEs, retail lending and digital banking, business share from 22 states other than J&K offer strong growth potential, and we are focusing on the same,” he said.
Chatterjee said he envisions J&K Bank emerging as a strong, technology-driven mid-sized public sector bank with annual business of Rs 5 lakh crore and Rs 5000 crore profit over the next three to five years.
In his message to depositors, investors and employees, the Chairman said stakeholders should remain confident about the bank’s long-term stability and growth. “J&K Bank is on a firm footing with strong fundamentals, and we remain committed to trust, transparency and sustainable growth,” he asserted.
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