J&K Bank Clears Capital Raise of ₹1,250 Crore for FY26

Srinagar, November 27, 2025: Jammu and Kashmir Bank Limited announced that it would raise a total of ₹1,250 crore through a two-phase approach to capital funding. The decision was reached after a thorough board meeting held on November 26, 2025.

Board Approves Equity And Bond Issuance

A Bank meeting took place between 11 a.m. and 8:45 p.m., during which the Bank’s board approved its plans to further enhance Capital structure via Equity & Loan support. Below are disclosed details pertaining to such action:

Total Capital Raising Plan: ₹1,250 Crore

The bank intends to issue total debt of ₹1,250 crore using two different methods of raising funds. The first method will be the Qualified Institutional Placement (QIP) method for raising ₹750 crore in equity with shareholder consent, and may be in several parts. The second method will be private placement of Tier 2 Bonds that are BASEL III compliant and therefore unsecured up to ₹500 crore.

Proposed Issuance Terms (As Filed)

According to the conditions for issuance, it is clear that the objective of the Bank is to obtain ₹750 crore through a qualified institutional placement of equity (QIP) and an additional ₹500crore through Tier II Bonds. Tier II Bonds will be issued via private placement and will meet Basel III Tier II Capital requirements. These two actions will improve both the Bank’s Capital Adequacy Ratio and its ability to meet regulatory requirements.

Company Commentary

The filing stated that the company has received the necessary approvals, but it does not contain any management quotes or statements in support of the fundraising effort. The bank also stated that consent from shareholders and any other necessary approvals are still needed for the fundraising effort to proceed.

Share Price Snapshot

As of 13:30 IST, the share price of Jammu and Kashmir Bank Limited was trading at ₹107.50, up 0.98% from its previous close of ₹106.46. The share opened at ₹107.89 and traded between ₹108.18 and ₹106.51 high and low so far. The market cap was at 11,723.20 Cr, and the P/E ratio of the company was at 5.60.

Jammu and Kashmir Bank Limited was incorporated in 1938 and is headquartered in Srinagar. The bank currently operates as a scheduled commercial bank and has an immense presence across Jammu & Kashmir and Ladakh. The bank is listed on the NSE and BSE and offers a complete range of retail, corporate, institutional, and digital banking services.

REF: https://nsearchives.nseindia.com/corporate/TUFAIL_26112025205525_Raising_of_Capital_Outcome.pdf

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