Impressive Financial Performance: Jammu and Kashmir Bank has reported strong financial results for the third quarter of fiscal year 2025-2026, with a notable 18.7% increase in net profit compared to the previous quarter. The bank’s net profit rose to Rs 586.73 Cr, showcasing a 10.4% year-on-year growth. This positive trend reflects the bank’s consistent growth and profitability.
The Board of Directors of Jammu and Kashmir Bank convened at the Bank’s Divisional Office in Jammu to approve the financial numbers for the quarter and nine months, highlighting the bank’s commitment to transparency and governance.
Furthermore, the bank’s net profit for the first nine months of the current fiscal year increased by 4.5% compared to the same period last year, reaching Rs 1565.68 Cr. This growth trajectory underscores the bank’s resilience and strategic financial management.
Operational Excellence:
During the quarter, Jammu and Kashmir Bank’s Net Interest Margin (NIM) improved to 3.62%, showcasing a 6 bps increase quarter-on-quarter. The Cost-to-Income Ratio also saw improvement to 55.88% year-on-year. Additionally, Return on Assets (RoA) for the nine-month period stood at 1.23%, reflecting the bank’s efficient operational performance.
The bank’s operating metrics demonstrated steady growth, with Net Interest Income (NII) increasing by 3.8% quarter-on-quarter to Rs 1488.88 Cr. Other Income for the quarter surged by 15.3% year-on-year to Rs 279.46 Cr, while the Cost of Deposits declined to 4.69% from the previous quarter.
CEO Amitava Chatterjee commended the bank’s performance despite challenges, emphasizing the strong fundamentals, disciplined execution, and operational efficiency that underpin the bank’s success.
Enhanced Asset Quality:
Jammu and Kashmir Bank’s Gross NPA ratio decreased year-on-year to 3.00%, indicating a significant improvement. The Net NPA also saw a reduction, standing at 0.68% for the quarter. The Provision Coverage Ratio (PCR) remained robust at 90.46%, highlighting the bank’s focus on maintaining a healthy asset quality.
CEO Amitava Chatterjee emphasized the bank’s steady progress in improving asset quality, attributing it to robust risk management practices and the resilience of borrowers amidst challenging economic conditions.
Robust Business Growth:
Jammu and Kashmir Bank sustained strong business momentum in the third quarter, achieving a remarkable 17.3% year-on-year growth in gross advances and a healthy 10.6% growth in deposits. The bank’s gross Advances reached Rs 116248 Cr, while total deposits stood at Rs 155861 Cr as of December 31, 2025.
CEO Amitava Chatterjee highlighted the bank’s successful credit strategy and customer engagement efforts, which contributed to the accelerated growth in advances and deposits. The bank’s focus on expanding lending operations and strengthening customer relationships has driven its business growth.
Strong Capital Adequacy:
Jammu and Kashmir Bank’s Capital Adequacy Ratio (CAR) under Basel III stood at a robust 15%, positioning the bank well for future lending activities. CEO Amitava Chatterjee expressed confidence in the bank’s capital position, emphasizing the planned capital raise of Rs 1250 Cr to further enhance capital adequacy and support strategic business expansion.
The strengthened capital base will enable the bank to absorb risks effectively, maintain asset quality, and create long-term value for shareholders, reinforcing its commitment to sustainable growth.
Key Initiatives and Digital Transformation:
CEO Amitava Chatterjee highlighted the bank’s key initiatives, including the 2025 Rehabilitation Package for borrowers affected by disturbances, showcasing the bank’s commitment to supporting customers and sustaining economic activity. He also emphasized the bank’s focus on digital transformation to enhance customer experience, security, and operational efficiency.
In conclusion, CEO Amitava Chatterjee expressed gratitude to customers, stakeholders, and bank staff for their support and dedication, underscoring the bank’s commitment to delivering value and fostering growth in the region.
