J& K Bank posts strong Q3 results, net profit rises to Rs 586.73 crore
Jammu, KNT: Jammu and Kashmir Bank on Tuesday announced healthy financial results for the October to December quarter of FY 2025–26, with net profit rising 18.7 percent quarter on quarter and 10.4 percent year on year to Rs 586.73 crore.
The Bank’s Board of Directors approved the financial results for the third quarter and the first nine months of the current financial year during a meeting held at the Bank’s Divisional Office in Jammu. For the nine month period ended December 31, 2025, the Bank reported a net profit of Rs 1,565.68 crore, registering a 4.5 percent year on year growth compared to Rs 1,497.92 crore in the corresponding period last year.
Key operating indicators showed steady improvement during the quarter. Net Interest Margin improved to 3.62 percent, up by six basis points on a quarter on quarter basis. Net Interest Income grew 3.8 percent QoQ to Rs 1,488.88 crore, while other income increased 15.3 percent year on year to Rs 279.46 crore. The Bank’s cost of deposits declined to 4.69 percent from 4.86 percent in the previous quarter.
The cost to income ratio improved to 55.88 percent for the quarter from 57.28 percent a year ago, while Return on Assets for the nine month period stood at 1.23 percent, reflecting improved operational efficiency.
Commenting on the performance, Managing Director and Chief Executive Officer Amitava Chatterjee said that despite rate cuts, impairment provisioning for the Grameen Bank and challenging local conditions, including the events of April 22 and floods that impacted the regional economy, the Bank remains firmly on track to deliver record profits for the fourth consecutive year. He said the Q3 performance underlines strong fundamentals, disciplined execution and sustained efficiency.
On asset quality, the Bank reported a significant improvement, with Gross NPA declining year on year to 3.00 percent from 4.08 percent, while Net NPA reduced to 0.68 percent from 0.94 percent. The Provision Coverage Ratio stood above 90 percent at 90.46 percent. Chatterjee said the steady improvement in asset quality reflects robust risk management practices and the resilience of borrowers despite economic challenges.
The Bank also recorded strong business growth during the quarter, with gross advances growing 17.3 percent year on year and deposits increasing 10.6 percent. As on December 31, 2025, gross advances stood at Rs 1,16,248 crore, while total deposits reached Rs 1,55,861 crore. The growth was driven by expansion in retail, MSME, agriculture and select corporate portfolios.
Capital Adequacy Ratio under Basel III stood at 15 percent. Chatterjee said the capital position, along with the Board approved capital raise of Rs 1,250 crore, places the Bank in a comfortable position to support future lending and calibrated expansion.
Highlighting key initiatives, he said the Bank continued to support customers through measures such as the 2025 Rehabilitation Package for disturbance affected borrowers and accelerated its digital transformation to enhance customer experience, security and operational efficiency.
The MD and CEO expressed gratitude to customers, stakeholders and promoters for their continued trust and acknowledged the contribution of the Bank’s staff for their dedication and commitment. [KNT]
