J&K Bank Reports 10.6% Rise in Q2 Net Profit to ₹546 Crore

Jammu and Kashmir Bank on Thursday reported a 10.6 per cent increase in its net profit, reaching ₹546.36 crore for the second quarter ended September 30. The growth was driven by overall earnings expansion and improvements in asset quality.

During the corresponding period in the previous fiscal year, the bank had recorded a net profit of ₹494.11 crore. On a quarter-on-quarter basis, profits surged 28.8 per cent from ₹424.18 crore reported in the first quarter of the current fiscal year, according to a bank spokesperson.

The financial results were reviewed and approved by the bank's Board of Directors during a meeting held at its corporate headquarters on Thursday.

The lender's net interest income rose 5 per cent during the quarter to ₹1,502 crore. Additionally, other income more than doubled to ₹314.90 crore, compared to ₹153.76 crore recorded in the same period a year ago.

For the first half of the current fiscal year, the bank's operating expenditure grew by 1.5 per cent, while operating profit increased by over 15 per cent to reach ₹1,492 crore. The cost-to-income ratio stood at 56.57 per cent for the quarter, marking an improvement from 60.79 per cent in the year-ago period. The bank's return on assets also saw an increase, jumping 20 basis points sequentially to 1.07 per cent during the quarter.

Commenting on the performance, J&K Bank Managing Director and Chief Executive Officer Amitava Chatterjee said that the growth in net interest income, the doubling of other income, and the year-on-year operating profit increase of over 26 per cent mark an encouraging strengthening of earnings performance. He noted that the recovery in return on assets to above 1 per cent highlights the progress made since the June quarter.

Chatterjee added that while the first quarter focused on building the business base and positioning for stronger earnings over time, the second quarter's performance reflects tangible progress in that direction. Looking ahead, the bank's focus for the second half of the fiscal year will remain on sustaining core income growth, strengthening recurring revenue streams, enhancing recoveries, and managing funding costs through deeper deposit relationships to translate business expansion into sustainable profitability.

"The financial results reported by Jammu and Kashmir Bank highlight the positive impact of disciplined cost management and diversified revenue streams on traditional banking operations. By successfully doubling its other income and improving both its cost-to-income ratio and return on assets sequentially, the lender demonstrates how focused execution can enhance profitability. For businesses and financial institutions alike, balancing core interest income growth with effective asset quality management remains a fundamental strategy for achieving sustainable long-term performance." — Dr. Shishir Gupta, Founder & CEO, StartupLanes