Srinagar: Delivering another quarter of steady financial performance, J&K Bank today posted a net profit of Rs 424.18 Cr for the quarter ended June 30, 2026. The Bank announced the financial results after the Board of Directors approved the quarterly numbers in a meeting held today at the Bank’s corporate headquarters.
Business Growth
Continuing its strong growth trajectory, the Bank’s advances grew by 25% YoY to Rs 130503 Cr during the quarter while the deposits increased by 17% year-on-year to Rs 173420 Cr. Consequently, the Bank’s total business registered a healthy growth of over 20%, crossing the historic milestone of Rupees Three Trillion and at Rs 303923 Cr as on June 30, 2026.
Speaking on business growth, MD & CEO said, “Crossing the landmark milestone of Rs 3 trillion in total business marks another defining moment in the Bank’s transformation journey. It reflects not merely scale but the deep trust of our customers and the consistent execution of our growth strategy. As we move forward, we shall continue to pursue balanced, customer-centric and technology-led growth while expanding our presence across the country and creating enduring value for all stakeholders.”
Operating Performance
During the quarter, the Bank’s Net Interest Income (NII) increased 2% to Rs 1497 Cr from Rs 1465 Cr recorded in the corresponding period last year, while Net Interest Margin (NIM) stood at 3.28%. Operating Profit of the Bank grew by 4.5% year-on-year to Rs 703 Cr, while the Cost-to-Income Ratio improved to 58.90% from 60.75%, demonstrating continued operational efficiency. The Bank’s Yield on Advances also improved to 8.56% sequentially.
Commenting on the quarterly performance, MD & CEO Amitava Chatterjee said, “Driven by robust business expansion and continued improvement in asset quality, we have begun the financial year with our core business fundamentals remaining strong while witnessing sequential growth in deposits in first quarter for the first time in last 6 years. Yet the industry-wide phenomenon of elevated funding costs and sluggish low-cost deposit mobilization pressured margins weighing on profitability during the quarter.”
“However, this quarter’s performance should be placed in the context of our long-term strategic journey rather than viewed solely through the prism of short-term profitability. The choices we have made over the past one year or so were deliberate, disciplined and future-oriented, with a clear focus on accelerating business growth, strengthening our liability franchise and reinforcing the balance sheet. These strategic investments position the Bank to deliver stronger and more sustainable value over the medium to long term”, he added.
Asset quality
Continuing its consistent focus on strengthening the balance sheet, the Bank further improved its asset quality during the quarter. On a sequential basis, Gross Non-Performing Assets (GNPA) declined to 2.37% from 2.50% as on March 31, 2026, while on a year-on-year basis, it improved from 3.50% recorded during the corresponding period of the previous financial year. Net Non-Performing Assets (NNPA) also improved sequentially to 0.60% from 0.64% recorded in the previous quarter.
The Bank maintained a healthy Provision Coverage Ratio (PCR) of 90.53% as against 90.09% recorded last year, reflecting a prudent provisioning policy and conservative approach towards risk management.
On the improvement in asset quality, MD & CEO Amitava Chatterjee said, “The sustained improvement in our asset quality reflects years of disciplined underwriting, robust credit monitoring, focused recovery efforts and a strong risk management framework. With gross slippage ratio for the (annualized) June quarter below 0.5%, our endeavour remains to build a resilient balance sheet that supports quality credit growth while preserving long-term financial stability and safeguarding stakeholder interests.”
Capital Adequacy
The Bank’s Capital Adequacy Ratio (CRAR) improved to 16.67% YoY as against 15.98% recorded last year, remaining comfortably above the regulatory requirement.
Commenting on the Bank’s capital position, MD & CEO said, “Our strong capital base coupled with the approvals we have for further capital raising provide us adequate headroom and flexibility to support the next phase of our growth journey. It equips us to seize emerging opportunities, meet evolving customer aspirations and sustain profitable expansion while maintaining prudent capital cushion to tide over any future challenges.”