Srinagar, Jan 20: Jammu & Kashmir Bank on Monday reported a solid financial performance for the October–December quarter (Q3 FY 2025–26), posting a year-on-year growth of 10.4 per cent in net profit to ₹586.73 crore, compared to ₹531.51 crore in the corresponding quarter last year. The profit also registered a robust quarter-on-quarter increase of 18.7 per cent.
The Bank’s Board of Directors approved the financial results for the third quarter and the nine-month period ended December during a meeting held at the Bank’s Divisional Office in Jammu.
For the first nine months of the current financial year, J&K Bank recorded a net profit of ₹1,565.68 crore, reflecting a year-on-year growth of 4.5 per cent over ₹1,497.92 crore reported during the same period last year.
Operating Performance
The Bank’s operating metrics showed steady improvement during the quarter. Net Interest Margin (NIM) improved to 3.62 per cent, up by 6 basis points on a quarter-on-quarter basis. The Cost-to-Income Ratio improved to 55.88 per cent from 57.28 per cent year-on-year, while the Return on Assets (RoA) for the nine-month period stood at 1.23 per cent.
Net Interest Income (NII) grew by 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 from ₹242.32 crore. The Bank’s cost of deposits declined to 4.69 per cent from 4.86 per cent in the previous quarter.
Commenting on the performance, Managing Director and CEO Amitava Chatterjee said that despite rate cuts, impairment provisioning for the Grameen Bank, and challenging conditions including the events of April 22 and subsequent floods that impacted the local economy, the Bank remains on track to deliver record profits for the fourth consecutive year.
He said the Q3 performance, marked by strong top-line growth and improved asset quality, reflects the Bank’s solid fundamentals, disciplined execution and sustained operational efficiency.
Asset Quality Improves Further
The Bank continued to witness improvement in asset quality during the quarter. Gross Non-Performing Assets (GNPA) declined to 3.00 per cent, down by 108 basis points year-on-year from 4.08 per cent. Net NPA reduced to 0.68 per cent from 0.94 per cent year-on-year and from 0.76 per cent on a quarter-on-quarter basis. The Provision Coverage Ratio (PCR) stood at a healthy 90.46 per cent.
The MD & CEO said that despite prolonged challenges in the Bank’s core geography, asset quality has steadily improved, supported by strong risk management practices. He noted that the decline in Gross NPAs to around 3 per cent is broadly in line with the Bank’s stated guidance and reflects the resilience of borrowers and the underlying strength of the local economy.
Business Growth
During the third quarter, the Bank maintained strong business momentum, registering a year-on-year growth of 17.3 per cent in gross advances and 10.6 per cent growth in deposits. As on December 31, 2025, gross advances stood at ₹1,16,248 crore, while total deposits reached ₹1,55,861 crore.
Amitava Chatterjee said the over 17 per cent growth in advances, well ahead of market guidance, demonstrates the strength of the Bank’s franchise and the effectiveness of its credit strategy. He added that double-digit deposit growth in a competitive environment highlights the trust reposed by customers in the Bank.
He said the advances growth was driven by focused expansion in retail, MSME, agriculture and select corporate segments, supported by improved credit appetite and deeper customer engagement across both core and emerging geographies.
Capital Position
The Bank’s Capital Adequacy Ratio (CAR) under Basel III stood at 15 per cent. The MD & CEO said the capital position will be further strengthened through internal accruals and the Board-approved capital raise of ₹1,250 crore, enabling the Bank to comfortably support calibrated business expansion while maintaining asset quality and profitability.
Key Initiatives
Highlighting key initiatives, the MD & CEO said the Bank continued to support customers through measures such as the 2025 Rehabilitation Package for disturbance-affected borrowers, offering extended repayment timelines and additional credit support.
He added that digital transformation remains central to the Bank’s strategy, with several customer-centric digital initiatives launched to enhance customer experience, security and operational efficiency.
On the occasion, Amitava Chatterjee expressed gratitude to customers, stakeholders, promoters and the Bank’s staff for their continued trust, support and dedication.
