Characterized by robust top-line growth and better asset quality, our performance underscores our strong fundamentals: MD & CEO
Srinagar, January 20: J&K Bank today announced healthy financial results for the October-December quarter (Q3 FY 25-26), with net profit rising by 18.7% Quarter-on-Quarter and 10.4% year-on-year (YoY) to Rs 586.73 Cr when compared to Rs 531.51 Cr recorded during the same period last fiscal.
The Bank’s Board of Directors approved the numbers for the quarter and nine-months during a meeting held today at the Bank’s Divisional Office in Jammu.
Meanwhile, the Bank’s net profit for the first nine months of current financial year grew 4.5% YoY to Rs 1565.68 Cr as against Rs 1497.92 Cr recorded for the same period last year, reflecting its sustained growth trajectory.
Operating Highlights
The Bank’s Net Interest Margin (NIM) for the quarter has improved to 3.62%, up by 6 bps QoQ. Cost-to-Income Ratio of the Bank improved to 55.88% YoY for the quarter from 57.28%, while as Return on Assets (RoA) for nine-months stood at 1.23%.
The Bank’s operating metrics reflected steady growth, as the Net Interest Income (NII) witnessed 3.8% growth QoQ to Rs 1488.88 Cr, while the Other Income for the quarter surged 15.3% YoY to Rs 279.46 Cr from Rs 242.32 Cr recorded last financial year. The Bank’s Cost of Deposits also declined to 4.69% QoQ from 4.86%.
Commenting upon operating performance, MD & CEO Amitava Chatterjee said, “Despite rate cut, impairment provisioning for Grameen Bank and challenging conditions – particularly the events of April 22, 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.”
“Characterized by robust top-line growth and better asset quality, overall our Q3 performance underscores our strong fundamentals, disciplined execution, and sustained operational efficiency”, MD & CEO added.
Asset Quality
The Bank’s Gross NPA ratio declined YoY to 3.00%, down by 108 basis points (bps) from 4.08%, while as the Net NPA reduced by 26 bps YoY to 0.68% from 0.94% and 8 bps QoQ from 0.76%. The Provision Coverage Ratio (PCR) for the quarter is above 90% at 90.46%.
In his comments on asset quality, MD & CEO Amitava Chatterjee remarked, “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 percent to 3.00% percent, 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”, he added.
Business Growth
Maintaining strong business momentum during the third quarter of the current financial year, the Bank recorded a robust YoY growth of 17.3% in gross advances and a healthy YoY growth of 10.6% in deposits. As on December 31, 2025, the Bank’s gross Advances surged to Rs 116248 Cr while total deposits reached Rs 155861 Cr.
Commenting on the business growth, MD & CEO Amitava Chatterjee said, “Delivering over 17% 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.”
“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 JKL and beyond, improving product penetration and enhancing service delivery continues to support stable balance-sheet expansion”, he added.
Capital Adequacy
The Bank’s Capital Adequacy Ratio (CAR) under Basel III stood at 15%.
Regarding capital position, MD & CEO remarked, “With our CAR at 15% – which will be further augmented by internal accruals on account of net profit for current fiscal – we are well capitalized to expand our lending operations as per our business plan. Moreover, the board approved capital raise of Rs 1250 Cr 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 added.
Key Initiatives
Highlighting the Bank’s key initiatives during the CFY so far, MD & CEO Amitava Chatterjee remarked, “During these quarters, we remained steadfast in supporting our customers, particularly through initiatives such as the 2025 Rehabilitation Package for disturbance-affected borrowers, which provided extended repayment timelines and additional credit support. This underscores our role as a responsible institution committed to sustaining livelihoods and economic activity in our core operational geographies.”
Terming digital transformation as central to the Bank’s strategy, he further added, “Simultaneously, we accelerated our digital transformation with the launch of several customer-focused innovations to strengthen customer experience, improve security and efficiency, and position the Bank for sustained, technology-led growth.”
On the occasion, MD & CEO Amitava Chatterjee extended heartfelt gratitude to the customers and stakeholders – especially the promoters – for their unwavering trust and continued support besides entire Bank staff for their steadfast dedication.
