Shares of J&K Bank fall most after Pahalgam terror attack

MUMBAI: Jammu and Kashmir Bank was the biggest loser on the bourses on Wednesday, with its stock falling 0% to close at Rs 103. The decline followed the killing of 26 tourists by terrorists in Pahalgam during the peak travel season, which led to many visitors cutting short their trips.
The bank, which is primarily owned by the state govt, operates 1,012 branches, with 837 located in the Union Territory of J&K, 37 in Ladakh, and 138 across 20 other states and UTs. The region generates a significant portion of its revenue from tourism.
During an investor call for the third quarter, Amitava Chatterjee, the newly appointed MD of the bank, said the J&K Tourism Department had declared 2024 as one of the best tourist seasons in the valley's history. “The UT of J&K welcomed 2.35 crore tourists in 2024, with an extraordinary 300% increase in foreign tourist arrivals over the past two and a half years,” he said.
He added that the inauguration of the Z-Morh tunnel would enable winter tourism in Sonamarg, and plans were underway to develop four new destinations — Kokernag, Doodhpathri, Bhadarwah and Baradari — with tourist infrastructure. This initiative is a joint venture involving the World Bank, the J&K govt, and the Centre. “These developments will further boost tourism in the UT and contribute to the region’s economic transformation, with tourism being the second main industry after horticulture,” he said.