Jammu Kashmir Bank Posts Rs 484.84 Cr Q1 Profit, Up 17% YoY

SRINAGAR: Jammu & Kashmir Bank has reported a profit after tax (PAT) of Rs 484.84 crore for the April–June quarter of the current financial year (Q1FY2026), marking a 16.7 per cent year-on-year (YoY) growth from Rs 415.49 crore in the same quarter last year.

The bank’s Board of Directors approved the quarterly financial results during a meeting held at its Corporate Headquarters in Srinagar.

Despite disruptions following the Pahalgam terror attack and its aftermath, which impacted business activity and credit offtake into June, the bank delivered solid quarterly results. “We have been able to deliver a healthy bottom-line growth of around 17%, despite external challenges,” said MD and CEO Amitava Chatterjee.

He attributed the temporary decline in Net Interest Margin (NIM) — down to 3.72% from 3.86% in Q4FY2025 — to recent repo rate cuts. Return on Assets (RoA) improved to 1.17% YoY from 1.08% a year earlier.

Chatterjee also pointed to a one-time impairment provision of Rs 87 crore related to the amalgamation of Ellaquai Dehati Bank with Jammu & Kashmir Grameen Bank as a key factor tempering the Q1 bottom line. “Excluding this non-recurring impact, our PAT growth would be upwards of 30% YoY,” he said, adding that on a normalised basis, core profitability metrics remain robust.

Net Interest Income (NII) rose 7% YoY to Rs 1,465.43 crore, while other income jumped 29% to Rs 250.30 crore from Rs 194.10 crore. Operating profit stood at Rs 672.84 crore, a 13% increase over Rs 594.67 crore recorded in the same period last year. The bank’s cost-to-income ratio improved to 60.78%.

Total deposits grew 12% YoY to Rs 1,48,542 crore, while net advances increased 6.06% to Rs 1,01,230 crore. The bank’s CASA (Current Account Savings Account) ratio remained healthy at 45.71% as of June 30, 2025.

Chatterjee said the bank remains focused on expanding operations beyond J&K. “We are actively scaling up our Rest of India operations by opening branches in strategic business hubs, pursuing builder tie-ups, and partnering with direct selling agents (DSAs).”

J&K Bank reported a significant improvement in asset quality, with Gross Non-Performing Assets (GNPA) declining by 41 basis points to 3.50% YoY. Net NPA stood at just 0.82%, and the NPA coverage ratio remained strong at above 90%.

“We’re on track to bring GNPA down to 3% by year-end through prudent lending and proactive digital monitoring tools,” Chatterjee noted.

Capital Adequacy Ratio (CAR) was reported at 15.98%, providing a solid foundation for future growth. “We remain well capitalised and have board approval to raise additional capital as needed to fund our expansion plans,” the MD & CEO added.