SRINAGAR: Jammu and Kashmir Bank on Monday reported a strong financial performance for the October–December quarter of the current financial year, with its net profit rising 10.4 per cent year on year to Rs 586.73 crore, driven by robust income growth and improving asset quality.
The bank said its net profit also increased 18.7 per cent quarter on quarter compared to Rs 494.11 crore in the preceding quarter and Rs 531.51 crore recorded in the corresponding quarter last year. The financial results for the third quarter and the nine month period were approved by the Board of Directors at a meeting held at the bank’s divisional office in Jammu.
For the first nine months of the financial year, the bank posted a net profit of Rs 1,565.68 crore, reflecting a year on year growth of 4.5 per cent over Rs 1,497.92 crore recorded during the same period last year.
Operationally, the bank reported improvement across key parameters. Net Interest Margin for the quarter improved to 3.62 per cent, up six basis points quarter on quarter. The cost to income ratio declined to 55.88 per cent from 57.28 per cent a year earlier, while return on assets for the nine month period stood at 1.23 per cent.
Net Interest Income grew 3.8 per cent quarter on quarter to Rs 1,488.88 crore, while other income rose 15.3 per cent year on year to Rs 279.46 crore. The cost of deposits declined to 4.69 per cent from 4.86 per cent in the previous quarter.
Commenting on the performance, Managing Director and Chief Executive Officer Amitava Chatterjee said the bank remained on track to deliver record profits for the fourth consecutive year despite challenging conditions. He said the third quarter performance reflected strong fundamentals, disciplined execution and sustained operational efficiency.
On asset quality, the bank said its gross non performing assets ratio declined to 3.00 per cent, down from 4.08 per cent a year ago, while net NPAs reduced to 0.68 per cent from 0.94 per cent year on year. Provision coverage ratio for the quarter stood at 90.46 per cent.
Chatterjee said the steady improvement in asset quality highlighted the resilience of borrowers and the underlying strength of the local economy, supported by robust risk management practices.
The bank also reported healthy business growth, with gross advances rising 17.3 per cent year on year to Rs 1,16,248 crore as of December 31, 2025. Deposits grew 10.6 per cent year on year to Rs 1,55,861 crore during the same period.
On capital position, the bank said its capital adequacy ratio under Basel III stood at 15 per cent. Chatterjee said the capital base would be further strengthened through internal accruals and the board approved capital raise of Rs 1,250 crore, enabling the bank to support calibrated business expansion.
He said the bank continued to support customers through initiatives such as the 2025 rehabilitation package for disturbance affected borrowers and also accelerated its digital transformation through new customer focused technological initiatives.
