- Net Profit Rose to Rs 586.73 crore, an 18.7% increase quarter-on-quarter (QoQ) and 10.4% year-on-year (YoY).
- 9-Month Profit: Cumulative net profit reached Rs 1,565.68 crore, up 4.5% compared to the previous year.
- Net Interest Margin (NIM) Improved to 62%, reflecting better yield management.
- Return on Assets (RoA) Stood at a healthy 23% for the nine-month period
Srinagar: Jammu and Kashmir Bank has reported a strong financial performance for the October–December quarter (Q3) of the financial year 2025–26, posting a significant rise in profit, steady business growth and marked improvement in asset quality, despite operating in a challenging economic environment. The Bank’s net profit rose 18.7 per cent quarter-on-quarter (QoQ) and 10.4 per cent year-on-year (YoY) to Rs 586.73 crore, compared to Rs 531.51 crore recorded in the corresponding quarter of the previous year. The results underline the Bank’s sustained momentum and resilience amid economic disruptions and regional challenges. The financial results for the quarter and for the nine months ended December 31 were approved by the Bank’s Board of Directors at a meeting held at the Bank’s Divisional Office in Jammu.
Nine-Month Profit Growth Reflects Sustained Momentum: For the first nine months of the current financial year, J&K Bank reported a net profit of Rs 1,565.68 crore, registering a growth of 4.5 per cent year-on-year from Rs 1,497.92 crore recorded during the same period last year. The steady rise in profitability reflects consistent operational performance, disciplined cost management and improving asset quality. The Bank’s overall financial indicators during the nine months demonstrate its ability to maintain growth despite headwinds such as interest rate changes, provisioning requirements and disruptions to the local economy. Return on Assets (RoA) for the nine-month period stood at a healthy 1.23 per cent, indicating efficient utilisation of assets and stable earnings generation.
Margins, Efficiency, Income Show Improvement: During the quarter under review, the Bank’s Net Interest Margin (NIM) improved to 3.62 per cent, registering an increase of 6 basis points on a QoQ basis. This improvement highlights better yield management and effective control over funding costs. The cost-to-income ratio, a key measure of operational efficiency, improved to 55.88 per cent from 57.28 per cent recorded a year earlier, reflecting enhanced productivity and prudent cost control measures. Net Interest Income (NII) grew 3.8 per cent QoQ to Rs 1,488.88 crore, while other income rose sharply by 15.3 per cent year-on-year to Rs 279.46 crore, compared to Rs 242.32 crore in the same quarter last year. The cost of deposits declined to 4.69 per cent from 4.86 per cent in the previous quarter, further supporting margin expansion.
CEO Highlights Resilience Amid Challenging Conditions: Commenting on the Bank’s operating performance, Managing Director and Chief Executive Officer Amitava Chatterjee said that despite rate cuts, impairment provisioning for the Grameen Bank and challenging external conditions, the Bank remains firmly on track to deliver record profits for the fourth consecutive year. He noted that the quarter was marked by several disruptions, including the events of April 22 and the subsequent floods, which adversely affected the local economy. “Despite these challenges, the Bank has demonstrated resilience and maintained strong performance,” Chatterjee said. “Characterised by robust top-line growth and improved asset quality, our Q3 performance underscores strong fundamentals, disciplined execution and sustained operational efficiency,” he added.
Asset Quality Continues To Strengthen: J&K Bank reported a significant improvement in asset quality during the quarter. The gross non-performing assets (GNPA) ratio declined to 3.00 per cent, down 108 basis points year-on-year from 4.08 per cent. Net NPAs also improved to 0.68 per cent from 0.94 per cent a year ago and from 0.76 per cent in the previous quarter. The provision coverage ratio (PCR) stood at a healthy 90.46 per cent, providing strong protection against potential credit losses. Commenting on asset quality, Chatterjee said that despite the challenges faced by the Bank’s core geography, the quality of the loan book has continued to improve steadily. “Supported by robust risk management practices, gross NPAs have declined from around 4 per cent to 3.00 per cent, broadly in line with our stated annual guidance,” he said.
Business Growth Remains Robust: During the third quarter, the Bank recorded strong business growth across key segments. Gross advances rose 17.3 per cent year-on-year, while deposits increased by 10.6 per cent year-on-year. As of December 31, 2025, the Bank’s gross advances stood at Rs 1,16,248 crore, while total deposits reached Rs 1,55,861 crore. The healthy growth in both advances and deposits reflects expanding customer engagement and improving credit demand. Chatterjee said delivering over 17 per cent year-on-year growth in advances, well ahead of market guidance, demonstrates the strength of the Bank’s franchise, credit strategy and execution capabilities. He added that double-digit deposit growth in a highly competitive environment reflects strong customer trust in the Bank.
Sectoral Focus Drives Credit Expansion: The Bank’s advances growth was driven by focused expansion across retail, MSME, agriculture and select corporate segments. Improved credit appetite, deeper penetration in core geographies and growing presence in emerging markets supported the expansion. Enhanced customer engagement and tailored product offerings helped the Bank strengthen its lending portfolio while maintaining prudent risk standards. The Bank’s capital adequacy ratio (CAR) under Basel III stood at a comfortable 15 per cent, providing sufficient headroom to support future growth.
Capital Position, Fund-Raising Plans: Commenting on the Bank’s capital position, the MD & CEO said that J&K Bank remains well-capitalised to support its business expansion plans. He noted that the Board-approved capital raise of Rs 1,250 crore will further strengthen capital adequacy and provide additional buffers for calibrated growth across priority sectors. The planned capital infusion is expected to support the Bank’s medium-term growth strategy while ensuring compliance with regulatory requirements.
Customer Support, Digital Push: Highlighting key initiatives undertaken during the current financial year, Chatterjee said the Bank remains committed to supporting customers, particularly those affected by disturbances and economic disruptions. He cited the 2025 Rehabilitation Package for disturbance-affected borrowers, which provided extended repayment timelines and additional credit support, as a key measure to assist customers during difficult times. The MD & CEO also emphasized that digital transformation remains central to the Bank’s long-term strategy. Several customer-centric digital initiatives were launched during the year to enhance customer experience, strengthen security and improve operational efficiency.
Gratitude To Stakeholders: On the occasion, Chatterjee expressed gratitude to the Bank’s customers, stakeholders, promoters and employees for their continued trust and dedication. He said the consistent performance achieved by the Bank is a collective effort and reaffirmed the management’s commitment to sustainable growth, financial stability and customer-centric banking. With improving asset quality, robust growth and a strong capital position, J&K Bank appears well-placed to maintain its growth trajectory and navigate future challenges effectively. Looking ahead, the management said the Bank remains cautiously optimistic about the remainder of the financial year, backed by a strong balance sheet, improving asset quality and a diversified growth strategy. With a renewed focus on credit discipline, digital innovation and customer-centric initiatives, J&K Bank aims to sustain profitability while supporting economic activity across its core markets. The leadership reiterated that maintaining financial stability, strengthening stakeholder confidence, and contributing to regional development will remain central to the Bank’s priorities in the future.
