J&K Bank Posts 28.8% QoQ Growth in Q2 Net Profit to Rs 546.36 Crore; Total Business Rises to Rs 3.10 Lakh Crore , Bank records decade-low GNPA ratio of 2.23%; net NPA ratio declines to 0.51%
Srinagar, October 22: ANB; Jammu and Kashmir Bank on Thursday reported a 28.8 per cent quarter-on-quarter (QoQ) and 10.6 per cent year-on-year (YoY) increase in net profit to Rs 546.36 crore for the second quarter (Q2) of FY 2026-27 ended September 30, 2026, supported by improved operating performance and further strengthening of asset quality.
The Bank had posted a net profit of Rs 424.18 crore in the first quarter (Q1) of FY 2026-27 and Rs 494.11 crore in Q2 FY 2025-26.
The financial results were announced following a meeting of the Bank’s Board of Directors at its corporate headquarters on October 22, where the quarterly and half-yearly financial statements were reviewed and approved.
Earnings Performance
The Bank’s net interest income (NII) increased by 5 per cent YoY to Rs 1,502 crore during Q2. Other income more than doubled to Rs 314.90 crore from Rs 153.76 crore in the corresponding quarter of the previous financial year, registering a 47 per cent QoQ increase.
Operating expenses remained under control, increasing by just 1.5 per cent YoY during the first half of FY 2026-27. Consequently, operating profit for the half-year increased by over 15 per cent YoY to Rs 1,492 crore.
The cost-to-income ratio improved to 56.57 per cent during Q2, compared with 60.79 per cent in the corresponding quarter of the previous financial year.
Return on Assets (RoA) improved by 20 basis points QoQ to 1.07 per cent during the quarter.
Commenting on the financial performance, J&K Bank MD and CEO Amitava Chatterjee said the growth in NII, doubling of other income and over 26 per cent YoY increase in operating profit during the quarter reflected a strengthening earnings trajectory.
He said the recovery in RoA to above 1 per cent further underscored the improvement in the Bank’s performance over the June quarter.
Chatterjee said the Bank’s focus during Q1 had been on expanding its business base and positioning itself for stronger earnings, adding that the latest operating performance reflected progress in that direction.
He said the Bank would focus on sustaining core income growth, strengthening recurring revenue streams, enhancing recoveries and managing the cost of funds through deeper deposit relationships during the second half of the financial year.
Asset Quality Improves to Decade-Best Levels
J&K Bank continued to record improvement in asset quality, with its gross non-performing assets (GNPA) ratio declining by 109 basis points YoY to 2.23 per cent as on September 30, 2026.
The net non-performing assets (NNPA) ratio also improved to 0.51 per cent from 0.76 per cent a year earlier, marking decade-best asset quality metrics.
The provision coverage ratio (PCR) increased to 91.76 per cent as on September 30, 2026, compared with 90.53 per cent as on June 30, 2026, also reaching a decade-best level.
Commenting on the improvement, Chatterjee said the continued decline in the GNPA ratio by 14 basis points QoQ to 2.23 per cent, its lowest level in a decade, reflected the cumulative impact of disciplined underwriting and proactive credit monitoring.
He also highlighted the annualised gross slippage ratio of 0.4 per cent for the first half of FY 2026-27, despite continued expansion of the Bank’s loan portfolio.
The MD and CEO said the Bank would remain focused on sustaining the improvement in asset quality during the second half, achieving its annual asset quality targets and strengthening its balance sheet to support long-term growth.
Total Business Grows 19.38% to Rs 3.10 Lakh Crore
Continuing its growth momentum, J&K Bank’s total business increased by 19.38 per cent YoY to Rs 3,10,347 crore as on September 30, 2026.
Gross advances grew by 23.72 per cent YoY to Rs 1,33,551 crore from Rs 1,07,943 crore a year earlier, while total deposits increased by 16.30 per cent YoY to Rs 1,76,796 crore.
The retail, agriculture and MSME (RAM) segments accounted for over 60 per cent of the net incremental credit on a year-to-date basis, reflecting the Bank’s continued focus on these key lending segments.
The Bank’s current account and savings account (CASA) deposits increased by 1.73 per cent QoQ. The CASA ratio stood at 41.97 per cent as on September 30, 2026, remaining broadly stable at around 42 per cent.
Highlighting the Bank’s long-term growth strategy, Chatterjee said nearly 20 per cent YoY growth in total business had taken the Bank’s business volume to Rs 3.10 lakh crore, progressing towards its Vision 2030 business target of Rs 5 lakh crore.
He said strengthening the deposit franchise, deepening customer relationships across Jammu and Kashmir and Ladakh, and selectively expanding operations across the country would remain central to the Bank’s growth strategy.
He added that prudent lending practices and technology-led, personalised customer service would continue to support the Bank’s expansion.
Capital Adequacy Strengthens
J&K Bank’s capital adequacy ratio (CRAR) improved to 16.57 per cent as on September 30, 2026, compared with 15.27 per cent a year earlier.
The Bank said its capital position remained adequate to support quality credit growth while maintaining a prudent capital buffer against emerging risks.
Summing up the financial performance, Chatterjee said the Bank was entering the second half of the financial year with confidence, backed by clear priorities and disciplined execution.
He said the Bank remained committed to translating its progress into sustainable profitability and enhanced stakeholder value, while expanding opportunities for the people and businesses it serves.
Chatterjee added that these priorities would guide the Bank in meeting its annual commitments and advancing its broader institutional objectives under Vision 2030. ANB
