SRINAGAR: J&K Bank on Tuesday reported a strong financial performance for the October–December quarter (Q3 FY 2025–26), with its net profit rising 10.4 per cent year-on-year (YoY) to ₹586.73 crore, compared to ₹531.51 crore in the corresponding quarter last year. On a quarter-on-quarter (QoQ) basis, net profit surged 18.7 per cent.
The Bank’s Board of Directors approved the financial results for the third quarter and the nine-month period ended December during a meeting held at the Bank’s Divisional Office in Jammu.
For the first nine months of the current financial year, the Bank posted a 4.5 per cent YoY increase in net profit at ₹1,565.68 crore, as against ₹1,497.92 crore recorded during the same period last year, reflecting sustained profitability.
Operating Performance
The Bank’s Net Interest Margin (NIM) improved to 3.62 per cent, up by 6 basis points QoQ. The Cost-to-Income Ratio improved to 55.88 per cent from 57.28 per cent a year ago, while the Return on Assets (RoA) for the nine-month period stood at 1.23 per cent.
Net Interest Income (NII) grew 3.8 per cent QoQ to ₹1,488.88 crore, while Other Income registered a strong 15.3 per cent YoY growth to ₹279.46 crore. The Cost of Deposits declined to 4.69 per cent QoQ from 4.86 per cent.
Commenting on the performance, Managing Director & CEO Amitava Chatterjee said that despite challenging conditions, including rate cuts, provisioning requirements for Grameen Bank and disruptions caused by recent events and floods, the Bank remains on track to deliver record profits for the fourth consecutive year.
“Characterised by robust top-line growth and better asset quality, our Q3 performance underscores strong fundamentals, disciplined execution and sustained operational efficiency,” he said.
Asset Quality
The Bank’s Gross NPA ratio declined to 3.00 per cent, down by 108 basis points YoY from 4.08 per cent, while Net NPA reduced to 0.68 per cent, reflecting a 26 bps YoY and 8 bps QoQ improvement. The Provision Coverage Ratio (PCR) stood at a healthy 90.46 per cent.
Chatterjee said the steady improvement in asset quality, despite prolonged economic challenges in the core geography, reflects robust risk management practices and borrower resilience.
Business Growth
During Q3, J&K Bank recorded 17.3 per cent YoY growth in gross advances and 10.6 per cent YoY growth in deposits. As of December 31, 2025, gross advances stood at ₹1,16,248 crore, while total deposits reached ₹1,55,861 crore.
The MD & CEO said the strong advances growth was driven by focused expansion in retail, MSME, agriculture and select corporate segments, supported by improved credit appetite and enhanced customer engagement.
Capital Position
The Bank’s Capital Adequacy Ratio (CAR) under Basel III stood at 15 per cent. Chatterjee said the Bank remains well capitalised, with internal accruals and a board-approved capital raise of ₹1,250 crore set to further strengthen its capital base.
“This will support calibrated business expansion while enhancing our ability to absorb risk and sustain asset quality,” he said.
Key Initiatives
Highlighting key initiatives, the MD & CEO said the Bank continued to support customers through measures such as the 2025 Rehabilitation Package for disturbance-affected borrowers, providing extended repayment timelines and additional credit support.
He added that digital transformation remains central to the Bank’s strategy, with the launch of several customer-centric digital initiatives aimed at improving service delivery, security and operational efficiency.
Chatterjee also expressed gratitude to customers, stakeholders, promoters and Bank staff for their continued trust and support.
