J&K Bank Reports Strong Financial Results for Q3 FY 25-26
Srinagar- J&K Bank recently announced robust financial results for the October-December quarter (Q3 FY 25-26), with a significant increase in net profit. The bank’s net profit rose by 18.7% Quarter-on-Quarter and 10.4% year-on-year (YoY) to Rs 586.73 Cr compared to Rs 531.51 Cr in the same period last fiscal.
The Bank’s Board of Directors approved the quarterly and nine-month numbers 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’s net profit grew by 4.5% YoY to Rs 1565.68 Cr, reflecting a sustained growth trajectory.
Operating Highlights
The Bank’s Net Interest Margin (NIM) for the quarter improved to 3.62%, with a Cost-to-Income Ratio of 55.88% YoY. Return on Assets (RoA) for the nine-month period stood at 1.23%.
Key operating metrics showed steady growth, with Net Interest Income (NII) increasing by 3.8% QoQ to Rs 1488.88 Cr. Other Income for the quarter surged by 15.3% YoY to Rs 279.46 Cr. The Bank’s Cost of Deposits also decreased to 4.69% QoQ.
MD & CEO Amitava Chatterjee commented on the performance, highlighting the Bank’s strong fundamentals and disciplined execution.
Asset Quality
J&K Bank’s Gross NPA ratio declined YoY to 3.00%, with the Net NPA also showing improvement. The Provision Coverage Ratio (PCR) for the quarter stood above 90% at 90.46%.
MD & CEO Amitava Chatterjee emphasized the Bank’s improving asset quality, attributing it to robust risk management practices and the resilience of borrowers.
Business Growth
During the third quarter of the current financial year, J&K Bank recorded a YoY growth of 17.3% in gross advances and a healthy YoY growth of 10.6% in deposits. The Bank’s gross Advances reached Rs 116248 Cr, while total deposits stood at Rs 155861 Cr.
MD & CEO Amitava Chatterjee highlighted the Bank’s strong business momentum, driven by credit strategy and customer engagement.
Capital Adequacy
J&K Bank’s Capital Adequacy Ratio (CAR) under Basel III was reported at 15%, indicating a well-capitalized position for future lending operations.
MD & CEO Amitava Chatterjee noted the Bank’s strong capital position, emphasizing the board’s approval for capital raise to support business expansion.
Key Initiatives
MD & CEO Amitava Chatterjee highlighted the Bank’s key initiatives, including the 2025 Rehabilitation Package for disturbance-affected borrowers and accelerated digital transformation to enhance customer experience.
Expressing gratitude to customers, stakeholders, and bank staff, Amitava Chatterjee reaffirmed the Bank’s commitment to sustaining livelihoods and delivering value to shareholders.
