J&K Bank sees margins gradually improve if rates hold steady

Amitava Chatterjee, managing director and chief executive officer of J&K Bank, says the bank has shifted its focus to its Rest of India branches following the Pahalgam terrorist attack and the natural calamities that hit the region.

- Amitava Chatterjee

In a telephonic interaction with Manojit Saha, he said the bank expects 50 per cent of its loan book to come from these branches within two years. Edited excerpts:

How did the bank navigate the impact of the Pahalgam terror attack and subsequent natural calamities, which would have affected business?

Yes, all of this impacted business in Jammu and Kashmir, as we had anticipated. As a result, we shifted J&K Bank’s business focus more towards our Rest of India branches. If you look at the growth, business in Jammu and Kashmir saw 5-6 per cent growth, while almost 16 per cent growth came from Rest of India. Regarding nonperforming assets and stress levels, they have actually improved since March. We've also been able to contain the rise in special mention accounts, although there was aslight increase due to stress in transport accounts, which were affected by the slowdown in tourism.