SRINAGAR — Jammu and Kashmir Bank on Thursday reported a 10.6% year-on-year increase in net profit to ₹546.36 crore for the second quarter ended September 30, 2026, supported by higher income and improved asset quality.
The bank’s net profit rose 28.8% from ₹424.18 crore in the preceding quarter. It had reported a profit of ₹494.11 crore in the corresponding quarter last year.
The financial results were approved by the bank’s Board of Directors at a meeting held at its corporate headquarters on Thursday.
Net interest income increased 5% year-on-year to ₹1,502 crore, while other income more than doubled to ₹314.90 crore from ₹153.76 crore in the corresponding period last year.
Operating profit for the first half of the financial year rose by more than 15% to ₹1,492 crore. The cost-to-income ratio improved to 56.57% from 60.79% a year earlier.
The bank’s return on assets stood at 1.07%, improving by 20 basis points over the previous quarter.
Gross NPAs fall to decade low
The bank’s asset quality improved, with gross non-performing assets (NPAs) declining to 2.23% from 3.32% a year earlier, marking the lowest level in a decade.
Net NPAs also fell to 0.51% from 0.76%, while the provision coverage ratio rose to 91.76% as of September 30, compared with 90.53% at the end of June.
Total business crosses ₹3.10 lakh crore
J&K Bank’s total business grew 19.38% year-on-year to ₹3,10,347 crore, supported by an increase in both deposits and advances.
Gross advances rose 23.72% to ₹1,33,551 crore from ₹1,07,943 crore a year earlier, while deposits increased 16.30% to ₹1,76,796 crore.
The bank said retail, agriculture and micro, small and medium enterprise (MSME) lending accounted for more than 60% of incremental credit during the current financial year.
Its current account and savings account (CASA) ratio stood at 41.97%, while the capital adequacy ratio improved to 16.57% from 15.27% a year earlier.
CEO outlines priorities for second half
Commenting on the results, Managing Director and CEO Amitava Chatterjee said the growth in net interest income, more than doubling of other income and over 26% increase in quarterly operating profit reflected an improvement in the bank’s earnings performance.
He said the bank would focus on sustaining income growth, strengthening deposit relationships, improving recoveries and managing funding costs during the second half of the financial year.
Chatterjee said the decline in gross NPAs to a decade-low 2.23% reflected disciplined lending and proactive credit monitoring despite continued expansion of the loan book.
Referring to the bank’s long-term plans, he said the nearly 20% growth in total business had brought it closer to its Vision 2030 target of ₹5 lakh crore.
He added that strengthening the bank’s presence in Jammu and Kashmir and Ladakh, alongside selective expansion elsewhere in the country, would remain central to its growth strategy.
