Business grows 19.4% to Rs 3.10 lakh Cr, with decadal best asset quality metrics
Srinagar|Oct, 22: Supported by earnings growth and improved asset quality, J&K Bank today reported a 28.8% QoQ and 10.6% YoY rise in net profit to Rs 546.36 Cr for Q2 FY 2026-27, compared to Rs 424.18 Cr in Q1 FY 2026-27 and Rs 494.11 Cr in Q2 FY 2025-26. The Board approved the results on October 22, 2026.
Operating Performance: NII grew 5% YoY to Rs 1502 Cr, while other income doubled YoY to Rs 314.90 Cr and grew 47% QoQ. Operating profit for the half-year rose over 15% YoY to Rs 1,492 Cr, with H1 operating expenditure up just 1.5%. The Cost-to-Income ratio improved to 56.57% from 60.79% YoY, and Return on Assets rose 20 bps QoQ to 1.07%. MD & CEO Amitava Chatterjee said, “The growth in net interest income, doubling of other income and over 26% YoY increase in operating profit for this quarter mark an encouraging strengthening of our earnings performance. The recovery in Return on Assets to above 1% further underlines the improvement over the June quarter.” He added, “In Q1, we had emphasized building the business base and positioning the Bank for stronger earnings over time. This quarter’s operating performance represents progress in that direction. Our focus for the second half is on sustaining core income growth, strengthening recurring revenue streams and enhancing recoveries, while addressing funding costs through deeper deposit relationships. These priorities remain central to delivering our annual objectives and translating business expansion into sustainable profitability,”
Asset Quality: Gross NPA improved by 109 bps YoY to a decadal best of 2.23%, with Net NPA at 0.51% (vs 0.76% YoY). Provision Coverage Ratio stood at a decadal best of 91.76%. MD & CEO Amitava Chatterjee commented, “The continuing improvement in our GNPA ratio by 14 bps QoQ to 2.23% – the lowest level in a decade – along with an annualized Gross Slippage Ratio of just 0.4% for the half-year, reflect the cumulative impact of our continued focus on disciplined underwriting and proactive credit monitoring mechanism even as we continue to expand our loan book.” He added, “We remain focused on sustaining this momentum through the second half, progressing towards our annual asset-quality objectives and building a resilient balance sheet that supports the Bank’s long-term growth aspirations”,
Business Growth: Total business grew 19.38% YoY to Rs 3,10,347 Cr as on September 30, 2026. Gross advances rose 23.72% YoY to Rs 1,33,551 Cr, while deposits grew 16.30% to Rs 1,76,796 Cr. Over 60% of net incremental YTD credit came from the RAM segment. CASA deposits rose 1.73% QoQ, keeping the CASA ratio at 41.97%. MD & CEO Amitava Chatterjee said, “With nearly 20% year-on-year growth taking our total business to Rs 3.10 lakh crore, we continue to build towards our Vision 2030 business aspiration of Rs 5 lakh crore.” He added, “Strengthening our deposit franchise, deepening relationships in Jammu and Kashmir and Ladakh, and selectively expanding across the country will remain central to this journey, supported by prudent lending and technology-led yet personalised customer service”,
Capital Adequacy: CRAR stood at 16.57% as of September 30, 2026, compared to 15.27% a year ago. MD & CEO Amitava Chatterjee said, “Driven by clear priorities and disciplined execution, we enter the second half with confidence that we will be able to further improve upon this performance.” He added, “Our endeavour is to translate this progress into sustained profitability and greater value for all stakeholders, while widening opportunities for the people and businesses we serve. This will guide us as we pursue our annual commitments and advance towards the larger institutional goals under Vision 2030”,
