Ace investor Mukul Agrawal adds Jammu & Kashmir Bank in June quarter, buys 1.3% stake

Synopsis

Mukul Agrawal portfolio: Ace investor Mukul Agrawal picked up a 1.27% stake in Jammu & Kashmir Bank during Q1FY26. The PSU bank reported 9.5% YoY growth in total business and improved asset quality, despite a dip in net profit.

Ace investor Mukul Mahavir Agrawal added Jammu & Kashmir Bank in his portfolio in the June ended quarter buying 1.27% stake representing 1.40 crore shares in the state-run lender.

The shares of Jammu & Kashmir Bank have outperformed the sector with nearly 5% returns over a 1-year period versus Nifty PSU Bank index, which has fallen by 3%. Its returns have been in-line with Nifty’s returns in the same period.

Jammu & Kashmir bank today announced its Q1FY26 updates, where the PSU bank reported a 9.5% year-on-year growth in its total business at Rs 2,49,784.15 crore.

Total deposits jumped 12% YoY to Rs 1,48,542.07 crore while total advances grew 5.5% YoY to Rs 1,040,39.84 in the quarter under review.

Agrawal publicly holds 60 stocks with a net worth of over Rs 6,618.7 crore, according to Trendlyne data.

Some of the stocks in his portfolio are Ajmera Realty, CEAT, Allcargo Logistics, LT Foods, Deepak Fertilisers, Delta Corp, Dredging Corporation of India, De Nora, Indo Count and J Kumar Infraprojects, among others.

J&K Bank’s shares today closed the session at Rs 111.25 on the BSE, down 3% or 2.63%.

Jammu & Kashmir Bank had reported a 9% year-on-year dip in fourth quarter net profit at Rs 585 crore as against Rs 640 crore in the year ago period, due to higher provisions to cover bad debt. The bank's pre-provision operating profit for the quarter stood 20.5% higher at Rs 800 crore against Rs 664 crore.

Provisions to cover bad and doubtful debt stood at Rs 58 crore against a write back of provision of Rs 47.4 crore in the year ago period, despite improvement in asset quality. Its gross non-performing assets ratio fell to 3.37% at the end of the last fiscal as compared with 4.08% a year back.

The bank board recommended a dividend of Rs. 2.15 per equity share of Re 1 face value which translates into a 215% dividend for the financial year ended March 31, 2025.

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