J&K Bank Plans To Raise Rs. 750 Cr Capital; Stocks Rallied 1.65%!

Jammu & Kashmir Bank has secured approval to raise its equity share capital up to Rs 750 crore in one or multiple installments through various routes like Rights Issue, Preferential Allotment, Private Placement, Qualified Institutional Placement (QIP), or Follow on Public Offer (FPO), preferably during the second half of the Financial Year 2023-24.

Additionally, the bank is planning to raise capital up to Rs 1000 crore by issuing Non-Convertible, Redeemable, Unsecured, BASEL III Compliant, TIER 2 bonds in the form of debentures on a private placement basis, preferably towards the end of the Calendar Year 2023.

Today, the stock opened at Rs 70.83, with a high and low of Rs 71.95 and Rs 70.30. Shares are trading at Rs 71.28, up by 1.65% from its previous close of Rs 70.12. The stock has a 52-week high of Rs 74.15 and a 52-week low of Rs 26.25. The current market cap of Jammu and Kashmir Bank Ltd is Rs 6,840.93 crore.

Incorporated in 1938, the Jammu & Kashmir Bank Ltd. is traded on the NSE and the BSE. In the Union Territories of Jammu & Kashmir and Ladakh, it operates as a universal bank, whereas in the rest of the country, it operates as a specialist bank. In addition to handling banking operations for the Union Territories of Jammu & Kashmir and Ladakh and collecting central taxes for CBDT, it is designated as the RBI’s agent for banking business.

J&K Bank has a two-pronged strategy to grow lending within its home market, which boosts profits despite limited volume, while simultaneously looking to seize specialised lending possibilities across India to expand volumes and boost margins.

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