Kashmir services

Jammu and Kashmir Bank on Tuesday announced strong financial results for the October–December quarter (Q3 FY 2025–26), reporting a sharp rise in profit and steady improvement across key performance indicators.

The Bank’s net profit increased by 18.7 per cent quarter-on-quarter and 10.4 per cent year-on-year to ₹586.73 crore, compared to ₹531.51 crore recorded in the same quarter last year. The Board of Directors approved the results during a meeting held at the Bank’s Divisional Office in Jammu. Click Here To Follow Our WhatsApp Channel

For the first nine months of the current financial year, J&K Bank posted a net profit of ₹1,565.68 crore, marking a 4.5 per cent year-on-year growth and underlining the Bank’s consistent growth momentum.

Improved Margins and Operating Performance

During the quarter, the Bank’s Net Interest Margin improved to 3.62 per cent, rising by six basis points quarter-on-quarter. The Cost-to-Income Ratio also improved year-on-year to 55.88 per cent from 57.28 per cent, while Return on Assets for the nine-month period stood at 1.23 per cent.

Operating performance remained healthy, with Net Interest Income growing 3.8 per cent quarter-on-quarter to ₹1,488.88 crore. Other Income rose sharply by 15.3 per cent year-on-year to ₹279.46 crore. The Bank also benefited from a decline in the Cost of Deposits, which fell to 4.69 per cent from 4.86 per cent.

Commenting on the performance, MD & CEO Amitava Chatterjee said that despite rate cuts, provisioning pressures related to the Grameen Bank, and challenging conditions including recent disturbances and floods, the Bank remains on track to deliver record profits for the fourth consecutive year.

Asset Quality Continues to Strengthen

J&K Bank’s asset quality showed further improvement during the quarter. Gross NPAs declined to 3.00 per cent, down by 108 basis points year-on-year, while Net NPAs reduced to 0.68 per cent. The Provision Coverage Ratio stood strong at 90.46 per cent.

Amitava Chatterjee said that despite economic challenges in the Bank’s core regions, asset quality has steadily improved due to strong risk management practices and borrower resilience.

Strong Business Growth

The Bank maintained strong business momentum in Q3, recording a 17.3 per cent year-on-year growth in gross advances and a 10.6 per cent rise in deposits. As of December 31, 2025, gross advances stood at ₹1,16,248 crore, while total deposits reached ₹1,55,861 crore.

The MD & CEO said the growth was driven by focused expansion in retail, MSME, agriculture, and select corporate segments, supported by improved credit appetite and stronger customer engagement.

Capital Position and Future Plans

The Bank’s Capital Adequacy Ratio under Basel III stood at a healthy 15 per cent. Chatterjee said this position would be further strengthened through internal accruals and the Board-approved capital raise of ₹1,250 crore, enabling the Bank to support future lending and manage risks effectively.

Key Initiatives and Digital Push

Highlighting key initiatives, the MD & CEO said the Bank continued to support customers through measures such as the 2025 Rehabilitation Package for borrowers affected by disturbances. He also said digital transformation remains central to the Bank’s strategy, with several customer-focused digital innovations launched to improve service delivery, security, and efficiency.

Concluding his remarks, Amitava Chatterjee thanked customers, stakeholders, promoters, and Bank staff for their continued trust, support, and dedication.

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