Sunday Spotlight Report
Srinagar, April 12: Official disclosures placed in the Rajya Sabha on March 24, 2026, have brought into sharp focus emerging trends of fraud, asset quality, recovery performance and regulatory compliance within Jammu and Kashmir Bank in recent years.
The data, furnished by the Ministry of Finance, Government of India, in response to a question by National Conference MP Sajjad Ahmad Kichloo outlines a mixed but largely stressed financial and operational picture for the bank over the past several years.
Fraud cases show steady rise over five years
According to the disclosures, the bank reported 128 fraud cases between 2020–21 and 2024–25, involving an aggregate exposure of over ₹2,360 crore.
The year-wise trend indicates a gradual increase in fraud incidence:
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2020–21: 23 cases
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2021–22: 19 cases
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2022–23: 20 cases
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2023–24: 32 cases
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2024–25: 34 cases
Alongside financial exposure, accountability actions have also been recorded, with 512 employees held responsible in connection with these fraud cases over the period.
Informed sources say that the rising number of cases in the last two financial years suggests increased detection, reporting, or actual incidence of fraud.
High concentration of credit exposure in top borrowers
The Rajya Sabha response also highlights significant concentration risk in the bank’s loan portfolio. The top 100 borrowers account for approximately ₹4,700 crore in outstanding loans, indicating heavy exposure to a limited number of large accounts.
The bank, however, stated that it is unable to disclose borrower identities or individual loan details, citing confidentiality provisions under Section 45E of the Reserve Bank of India Act, 1934, which restricts the sharing of credit information.
Analysts acknowledge that while the bank has shown improvements in certain areas such as reduction in restructured accounts, the overall disclosures suggest that structural challenges in asset quality and governance do remain.
Write-offs continue despite fluctuating trends
The data shows that loan write-offs have continued over the years, though with some variation. Here is the year wise trend:
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2019–20: ₹13.15 crore
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2020–21: ₹4.50 crore
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2021–22: ₹29.60 crore
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2022–23: ₹38.17 crore
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2023–24: ₹28.18 crore
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2024–25: ₹18.71 crore
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2025–26 (till date): ₹12.50 crore
While write-offs appear to have moderated in the most recent year, the cumulative trend points to persistent asset quality challenges.
At the same time, restructured accounts have sharply declined, falling from 32,167 accounts in 2019 to 4,124 by March 2025, indicating a possible cleanup of stressed assets or resolution of legacy restructuring cases.
Recovery performance marked by sharp volatility
Recovery figures presented in the Rajya Sabha reply show significant fluctuations over time:
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2019–20: ₹2,603.51 crore
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2020–21: ₹620.27 crore
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2021–22: ₹2,807.08 crore
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2022–23: ₹8,433.11 crore
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2023–24: ₹1,853.00 crore
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2024–25: ₹973.72 crore
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2025–26: ₹783.96 crore
The data reveals a major spike in recoveries during 2022–23, mainly attributed to one time settlement policies, followed by a sharp decline in subsequent years.
Sectoral lending pattern skewed toward services and retail
The bank’s lending portfolio spans agriculture, manufacturing, trade, personal finance and services. However, the disclosures indicate a relatively higher exposure to personal finance and services sectors, suggesting a tilt towards retail and non-industrial credit segments.
Over 2,800 employees recruited since 2019
On the human resources front, the bank reported significant staffing additions between 2019 and 2026:
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2,803 employees recruited or regularised
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122 contractual employees engaged
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Over 1,600 recruitments occurred in 2021–22 alone
