JAMMU: Jammu & Kashmir Bank shares plunged 16.28 per cent on Friday, closing at Rs 113.09, even as the lender reported a 10.6 per cent year-on-year rise in second-quarter net profit to Rs 546.36 crore.
The sharp sell-off came a day after the bank announced its Q2FY27 results and made J&K Bank one of the biggest losers in Friday’s market session. The stock had closed at Rs 135.08 on Thursday.
The contrasting market response was attributed by market reports to concerns over the bank’s core earnings and margins. Net interest income rose 4.8 per cent year-on-year to about Rs 1,502 crore, but net interest margin declined to 3.17 per cent from 3.56 per cent a year earlier and 3.28 per cent in the preceding quarter.
The bank’s profit was also supported by higher other income, while asset quality improved. Gross NPA fell to 2.23 per cent and net NPA to 0.51 per cent, described by the management as a decade-best level.
Analysts also flagged future provisioning requirements under the expected-credit-loss framework and funding-cost pressures as factors weighing on investor sentiment.