JAMMU, Jan 20: Jammu and Kashmir Bank on Tuesday announced robust financial numbers for the October–December quarter of FY26, registering a 10.4 per cent rise in net profit annually and an 18.7 per cent growth sequentially.
The bank’s net profit rose to Rs 586.73 crore in the latest third quarter from Rs 531.51 crore recorded in the corresponding three-month period of the previous financial year, according to an official statement.
The bank’s board of directors approved the quarterly results for the third quarter and the nine months of the ongoing fiscal year during a meeting held at its divisional office here.
Net profit in the first nine months of the current financial year grew 4.5 per cent to Rs 1,565.68 crore as against Rs 1,497.92 crore recorded in the same period of last financial year, reflecting a sustained growth trajectory, the statement said.
Net Interest Margin (NIM) during the quarter improved to 3.62 per cent, up by 6 basis points quarter-on-quarter (QoQ).
Cost-to-income ratio of the bank also improved to 55.88 per cent from 57.28 per cent a year ago, while Return on Assets (RoA) for the nine months stood at 1.23 per cent.
The operating metrics reflected steady growth, as the Net Interest Income (NII) witnessed a 3.8 per cent QoQ growth to Rs 1,488.88 crore, while the other income surged 15.3 per cent to Rs 279.46 crore in the reporting quarter from Rs 242.32 cr a year ago.
Cost of deposits declined to 4.69 per cent QoQ from 4.86 per cent, the statement said.
Managing Director and Chief Executive Officer Amitava Chatterjee said, “Despite rate cut, impairment provisioning for Grameen Bank and challenging conditions – particularly the events of April 22 (Pahalgam attack), their subsequent impact, and the floods that disrupted the local economy – the bank remains firmly on track to deliver record profits for the fourth consecutive year.” “Characterised by robust top-line growth and better asset quality, overall our Q3 performance underscores our strong fundamentals, disciplined execution, and sustained operational efficiency,” he said.
Gross NPA ratio declined to 3 per cent, 108 basis points lower than 4.08 per cent a year ago. Net NPA also reduced by 26 bps to 0.68 per cent from 0.94 per cent a year ago and 8 bps as compared to 0.76 per cent recorded in the preceding quarter.
The Provision Coverage Ratio (PCR) stayed above 90 per cent at 90.46 per cent during the quarter under review.
About the bank’s asset quality, Chatterjee said, “Even as our core geography has navigated significant challenges extending beyond the banking sector, the bank’s asset quality has continued to improve steadily.
“Supported by robust risk management practices, gross NPAs have declined from around 4 per cent to 3 per cent, which is almost in line with our stated annual guidance. The sustained improvement in asset quality despite such disturbances speaks volumes about the resilience and commitment of borrowers and the underlying robustness of the local economy.” Maintaining strong business momentum during the third quarter of the current financial year, the bank said it recorded a robust YoY growth of 17.3 per cent in gross advances and a healthy growth of 10.6 per cent in deposits.
As of December 31, 2025, the bank’s gross advances surged to Rs 1,16,248 crore, while total deposits reached Rs 1,55,861 crore, the statement said.
“Delivering over 17 per cent year-on-year growth in advances – well ahead of the guidance we had shared with the market – reflects the strength of our franchise, the effectiveness of our credit strategy and the meticulous execution by our teams on the ground. Double-digit growth of deposits in a competitive environment also highlights the trust reposed in the Bank by our customers,” Chatterjee said.
He said the accelerated advances growth was driven by focused expansion in retail, MSME, agriculture and select corporate portfolios, supported by improved credit appetite and strengthened customer engagement across both core and emerging geographies.
“Our consistent focus on deepening relationships within J&K and Ladakh and beyond, improving product penetration and enhancing service delivery continues to support stable balance-sheet expansion,” he added.
The bank’s capital adequacy ratio (CAR) under Basel III stood at 15 per cent. Chatterjee said the bank is well-capitalised to expand its lending operations as per the business plan.
“The board-approved capital raise of Rs 1,250 crore will boost our capital adequacy and cushion us comfortably to support calibrated business expansion across key sectors. It will enhance our ability to absorb risk, while reinforcing our long-term focus on sustaining asset quality, improving profitability and creating enduring value for our shareholders,” he said.
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