Srinagar ~ Jammu & Kashmir Bank has approved a capital raise of up to ₹1,250 crore as the lender seeks to reinforce its balance sheet and accelerate its growth strategy amid improving financial metrics and a strengthening regional economy.
In a statement following its board meeting on 26 November, the Srinagar-based bank said the fundraising plan includes ₹750 crore in equity capital through a Qualified Institutional Placement (QIP) and ₹500 crore via privately placed, unsecured, non-convertible Tier-II bonds compliant with Basel-III norms. The move remains subject to regulatory clearances.
The equity component through QIP signals the bank’s intention to tap institutional investors as it prepares for a new expansion phase. The Tier-II issuance, meanwhile, is aimed at bolstering its capital adequacy ratio, allowing the lender to absorb future risk while supporting credit growth.
Managing Director and Chief Executive Amitava Chatterjee said the decision reflects the board’s confidence in the bank’s performance trajectory.
“The approval to raise fresh capital underscores the Board’s confidence in the Bank’s trajectory and strengthens our ability to pursue calibrated growth,” Chatterjee said. “The infusion will enhance capital adequacy, support expansion across key sectors, and reinforce our long-term commitment to improved asset quality, profitability, and shareholder value.”