Jammu and Kashmir Bank Reports 28.8% Sequential Rise in Q2 Net Profit at ₹546 Crore

NEW DELHI: Jammu and Kashmir (J&K) Bank has reported a net profit of ₹546.36 crore for the July-September quarter, marking a 28.8 percent increase compared to the previous quarter. On a year-on-year basis, the bank's profit grew by 10.6 percent, supported by higher other income and strengthened asset quality.

In the preceding April-June quarter, the bank had registered a net profit of ₹424.18 crore, while the figure stood at ₹494.11 crore in the corresponding period of the previous year. Net interest income, which represents the difference between interest earned and paid, went up by 5 percent year-on-year to reach ₹1,502 crore.

Other income recorded significant growth, more than doubling to ₹314.90 crore from ₹153.76 crore reported in the same period last year.

The bank’s total business expanded by 19.38 percent year-on-year to touch ₹3.10 lakh crore as of September 30. During the same period, gross advances saw an increase of 23.72 percent to reach ₹1.34 lakh crore, while total deposits grew by 16.30 percent to ₹1.77 lakh crore.

Asset quality metrics showed an improvement during the quarter. The gross non-performing asset (NPA) ratio declined to 2.23 percent, down from 3.32 percent a year earlier and 2.37 percent in the previous quarter. Similarly, the net NPA ratio dropped to 0.51 percent from 0.76 percent recorded a year earlier. The provision coverage ratio improved further to reach 91.76 percent at the end of September, compared to 90.53 percent three months prior.

For the first half of the financial year, the bank's operating profit increased by over 15 percent year-on-year to ₹1,492 crore. The cost-to-income ratio also improved, registering at 56.57 percent for the September quarter compared to 60.79 percent in the corresponding period last year. Return on assets stood at 1.07 percent, reflecting an increase of 20 basis points from the previous quarter.

Amitava Chatterjee, Managing Director and Chief Executive of J&K Bank, stated that the institution will maintain its focus on sustaining core income growth, deepening deposit relationships, and enhancing recovery efforts during the second half of the financial year.

At the end of September, the bank's capital adequacy ratio was recorded at 16.57 percent, compared to 15.27 percent in the previous year. Looking ahead, Chatterjee noted that the bank aims to scale its total business to ₹5 lakh crore under its Vision 2030 strategy.

"The financial performance reported by Jammu and Kashmir Bank highlights the importance of asset quality management and diversified revenue streams in driving steady profitability. Reducing non-performing assets alongside steady credit and deposit growth creates a stable foundation for regional financial institutions. Achieving long-term targets like Vision 2030 will depend heavily on maintaining disciplined cost structures and consistent recovery efforts in the core markets." — Dr. Shishir Gupta, Founder & CEO, StartupLanes