The Jammu and Kashmir Bank is one of the oldest banks in India. It was formed on October 1, 1938, by the then ruler of the princely state of Jammu and Kashmir, Maharaja Hari Singh, with an initial paid-up capital of ₹5.00 lakh. In the last five years, the stock has given a massive return of more than 530%. Will J&K Bank continue to provide such impressive returns this year and in the future as well? Let’s explore the J&K Bank growth potential and J&K Bank share price target 2025 to 2050 in this article.
About J&K Bank
J&K Bank is headquartered in Srinagar, Jammu and Kashmir. It functions as a universal bank in the Union Territories of Jammu and Kashmir and as a specialised bank in the rest of India. The bank is known for its strong regional focus and provides a diverse range of financial products and services, including retail banking, corporate banking, and digital banking solutions.
J&K Bank Fundamental Analysis
| Stock Name | J&K Bank |
|---|---|
| NSE Symbol | J&KBANK |
| Market Cap | ₹ 10367 Cr. |
| 52W High | ₹ 147 |
| 52W Low | ₹ 82.0 |
| Stock P/E (TTM) | 4.87 |
| Book Value | ₹ 125 |
| Dividend Yield | 2.26 % |
| ROCE | 5.90 % |
| ROE | 16.0 % |
| Face Value | ₹ 1.00 |
| Industry PE | 11.5 |
| Price to book value | 0.75 |
| Debt to equity | 10.4 |
| PEG Ratio | 0.16 |
| Quick ratio | – |
| Share holder | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 63.41% | 59.40% | 59.40% |
| FIIs | 2.24% | 6.99% | 7.64% |
| DIIs | 2.66% | 7.90% | 6.69% |
| Public | 31.69% | 25.71% | 26.26% |
| No. of Shareholders | 1,72,074 | 2,15,294 | 2,80,187 |
Pros of J&K Bank
- Dominant Regional Player: J&K Bank holds a strong market share in Jammu & Kashmir and Ladakh, benefiting from customer loyalty and a well-established presence.
- Government Backing: With the J&K government as a major stakeholder, the bank receives major support, ensuring stability and strategic advantages.
- Diverse Product Portfolio: Provides a comprehensive range of banking and financial services to individuals, businesses, and institutions.
- Improved Financial Metrics: Recent improvements in profitability, asset quality, and operational efficiency have increased its investment attraction.
- Focus on Digital Banking: Proactive adoption of digital platforms ensures a competitive edge in providing modern banking solutions.
- Regional Economic Growth: As the primary financial institution in Jammu and Kashmir and Ladakh, it stands to benefit from ongoing infrastructure development and economic revival in these regions.
- Steady Dividend Payouts: The bank has a history of rewarding shareholders with consistent dividends, which attract income-focused investors.
- Strong Profit Growth: J&K Bank profits have grown at 61% CAGR over the last three years.
- Low P/B Ratio (Undervalued Stock): J&K Bank Price to Book Value (P/B) ratio is 0.75 which shows that its stock is trading close to its intrinsic value and may be undervalued.
- Low PE Ratio Compared to Peers: J&K Bank PE ratio is 4.87, which is lower than the industry average of 11.5, making it relatively undervalued and potentially a good investment opportunity.
- Increase in FIIs Holding: Foreign Institutional Investors (FIIs) have increased their holding to 7.64% in March 2025 from 7.07% in December 2024, which indicates growing confidence in the J&K Bank future potential by the FIIs.
Cons of J&K Bank
- Regional Dependency: The bank’s dependency on the J&K and Ladakh markets puts it at risk of regional political instability or economic downturns.
- Asset Quality Concerns: Despite recent improvements, the bank has previously struggled with non-performing assets (NPAs), which can have an impact on profitability.
- Limited National Presence: Compared to larger banks, its operations outside of J&K and Ladakh are relatively small, limiting growth potential in larger markets.
- Competition from National Banks: Increased competition from large private and public sector banks may make it difficult to maintain market share and profitability.
- Interest Rate Sensitivity: As a bank, its earnings are closely related to interest rate fluctuations, which can have an impact on margins during difficult economic times.
- Decreasing Sales – J&K Bank sales have been decreasing at a CAGR of 4% over the last ten years.
- Low Return on Equity (ROE): J&K Bank 5-year average ROE is 6.64%, which shows that it is not using shareholders’ funds efficiently to generate profits.
- Low Return on Equity (ROCE): J&K Bank 5-year average ROCE is 4.54%, which shows that it is not using shareholders’ funds efficiently to generate profits.
- High Financial Risk: J&K Bank has a high debt-to-equity ratio of 10.4, indicating a strong dependency on debt. This increases financial risk, raises interest costs, and may have an impact on profitability.
- Low Interest Coverage Ratio: The interest coverage ratio of J&K Bank is 1.45, which shows that the company is struggling to pay interest.
- Decrease in DIIs Holding: Domestic Institutional Investors (DIIs) have reduced their holding to 6.69% in March 2025 from 6.82% in December 2024, indicating a decline in DIIs confidence in the company’s future growth prospects.
J&K Bank Ltd Balance Sheet
| Particulars | Mar 2023 | Mar 2024 | Sept 2024 |
|---|---|---|---|
| Equity Capital | 103 | 110 | 110 |
| Reserves | 9,793 | 12,083 | 13,196 |
| Deposits | 122,027 | 134,763 | 137,907 |
| Borrowing | 2,892 | 2,885 | 2,884 |
| Other Liabilities | 11,097 | 4,664 | 5,359 |
| Total Liabilities | 145,913 | 154,505 | 159,456 |
| Fixed Assets | 2,224 | 2,208 | 2,229 |
| CWIP | 47 | 50 | 0 |
| Investments | 34,780 | 34,900 | 38,656 |
| Other Assets | 108,860 | 117,347 | 118,571 |
| Total Assets | 145,913 | 154,505 | 159,456 |
By the end of 2025, the J&K Bank share price is expected to be around ₹137 in normal conditions. In a bear market, it might be ₹130, and in a bull market, it may cross its 52-week high of ₹152.
| J&K Bank Share Price Target 2025 | Rupees (₹) |
|---|---|
| 1st Target | 130 |
| 2nd Target | 137 |
| 3rd Target | 152 |
In 2026, the J&K Bank share price is expected to be around ₹175 in a normal situation. In a bear market, it might be ₹170, and in a bull market, it may cross ₹185.
| J&K Bank Share Price Target 2026 | Rupees (₹) |
|---|---|
| 1st Target | 170 |
| 2nd Target | 175 |
| 3rd Target | 185 |
According to our analysis, the J&K Bank share price is expected to be around ₹210 in 2027. In a bear market, it might be ₹205, and in a bull market, it may cross ₹220.
| J&K Bank Share Price Target 2027 | Rupees (₹) |
|---|---|
| 1st Target | 205 |
| 2nd Target | 210 |
| 3rd Target | 220 |
According to our analysis, the J&K Bank share price may trade near ₹255 by 2028; bearish conditions could pull it down to ₹250, while a strong bull run might lift it to ₹272.
| J&K Bank Share Price Target 2028 | Rupees (₹) |
|---|---|
| 1st Target | 250 |
| 2nd Target | 255 |
| 3rd Target | 272 |
In a normal situation, the J&K Bank share price is projected to be approximately ₹295 in 2029. In a bear market, the value may be as low as ₹290, while in a bull market, it may rise to ₹305.
| J&K Bank Share Price Target 2029 | Rupees (₹) |
|---|---|
| 1st Target | 290 |
| 2nd Target | 295 |
| 3rd Target | 305 |
In a normal situation, the J&K Bank share price is projected to be approximately ₹330 in 2030. In a bear market, the value may be as low as ₹325, while in a bull market, it may rise to ₹350.
| J&K Bank Share Price Target 2030 | Rupees (₹) |
|---|---|
| 1st Target | 325 |
| 2nd Target | 330 |
| 3rd Target | 350 |
By 2035, the J&K Bank share price is projected to be around ₹665 under normal conditions. In adverse markets, the price could fall to ₹650, while favorable conditions might push it up to ₹685.
| J&K Bank Share Price Target 2035 | Rupees (₹) |
|---|---|
| 1st Target | 650 |
| 2nd Target | 665 |
| 3rd Target | 685 |
Under normal conditions, the J&K Bank share price might hit ₹1330 by 2040. A bearish trend could lower it to ₹1300, whereas a bullish surge could raise it to ₹1450.
| J&K Bank Share Price Target 2040 | Rupees (₹) |
|---|---|
| 1st Target | 1300 |
| 2nd Target | 1330 |
| 3rd Target | 1450 |
In 2050, the J&K Bank share price is expected to be around ₹5050 in a normal situation. In a bear market, it might be ₹5000, and in a bull market, it may go up to ₹5500.
| J&K Bank Share Price Target 2050 | Rupees (₹) |
|---|---|
| 1st Target | 5000 |
| 2nd Target | 5050 |
| 3rd Target | 5500 |
| Years | Target Price |
|---|---|
| J&K Bank Share Price Target 2025 | ₹130 to ₹152 |
| J&K Bank Share Price Target 2026 | ₹170 to ₹185 |
| J&K Bank Share Price Target 2027 | ₹205 to ₹220 |
| J&K Bank Share Price Target 2028 | ₹250 to ₹272 |
| J&K Bank Share Price Target 2029 | ₹290 to ₹305 |
| J&K Bank Share Price Target 2030 | ₹325 to ₹350 |
| J&K Bank Share Price Target 2035 | ₹650 to ₹685 |
| J&K Bank Share Price Target 2040 | ₹1300 to ₹1450 |
| J&K Bank Share Price Target 2050 | ₹5000 to ₹5500 |
Conclusion
J&K Bank is a strong investment opportunity, particularly for long-term investors looking for undervalued stocks with strong growth potential. The bank’s strong regional presence, combined with government support, positions it as a key driver of economic activity in Jammu and Kashmir and Ladakh. For the latest financial reports and updates, you can check J&K Bank Official Website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
