SRINAGAR: Jammu and Kashmir Bank has reported an impressive 44.6 per cent year-on-year (YoY) increase in net profit for the second quarter (Q2) of the current financial year, recording Rs 550.92 crore, up from Rs 381.07 crore during the same period last year. Additionally, the bank’s half-year profit (H1) surged by 36.6 per cent to Rs 966.41 crore, compared to Rs 707.52 crore last year. These financial results were reviewed and approved by the Board of Directors at the Bank’s Corporate Headquarters.
The bank’s Q2 operating profit grew by 47 per cent YoY and by 32 per cent quarter-on-quarter (QoQ) to Rs 787 crore, driven by significant growth in both core and non-core incomes. The Net Interest Income (NII) rose 7.7 per cent YoY to Rs 1435.93 crore, up from Rs 1333.83 crore last year, and climbed 7.2 per cent for H1, amounting to Rs 2805.15 crore. Additionally, other income surged by 55.6 per cent YoY to Rs 296.08 crore for the September quarter, further strengthening overall earnings.
The Net Interest Margin (NIM) increased to 3.90 per cent QoQ from 3.86 in Q1 of the current fiscal year, while the cost-to-income ratio showed remarkable improvement, dropping to 54.56 per cent YoY from 64.93 per cent. Sequentially, this ratio decreased from 61.96 per cent recorded in the previous June quarter. The results, which reflect financial stability and strategic management, were described by MD and CEO Baldev Prakash as nearly in line with expectations, underscoring the bank’s operational excellence and its commitment to stakeholders.
Prakash stated, “With a diversified portfolio, a solid balance sheet, and a strong focus on digital transformation, we are well-positioned to sustain this growth and seize emerging opportunities.”
J&K Bank’s Gross Non-Performing Asset (NPA) ratio decreased by 131 basis points YoY, reaching 3.95 per cent compared to 5.26 per cent last year. The Net NPA also declined to 0.85 per cent, improving by 19 basis points from 1.04 per cent. Return on Assets (RoA) increased to 1.41 per cent YoY, marking a consistent rise, while the Provision Coverage Ratio (PCR) improved by 55 basis points to 90.54 per cent YoY. These indicators reflect robust asset management practices and risk mitigation strategies.
Baldev Prakash expressed satisfaction with the bank’s reduced Gross NPA level, citing it as evidence of strong risk management. He said, “Our ability to keep Gross NPA below 4 per cent highlights the effectiveness of our asset-quality management practices and reinforces our commitment to sustainable lending.”
The bank’s deposits and advances grew by 9 per cent and 9.5 per cent YoY, reaching Rs 137,918 crore and Rs 96,139 crore, respectively. With CASA (Current Account Savings Account) deposits at 48.60 per cent, the bank maintains one of the highest ratios in the industry, supporting a robust funding base for its loan operations.
Highlighting the bank’s strategic growth in advances and deposits, Prakash noted, “Our advances grew nearly 10 per cent during the September quarter, and we have maintained our deposit growth within the industry average. Moving forward, we aim to expand our deposit base further and increase our loan portfolio to meet our top-line growth targets.”
The Capital Adequacy Ratio (CAR) for Q2 stood at 14.99 per cent, an improvement over last year’s 14.53 per cent. This ratio, exclusive of the half-yearly profit of Rs 966 crore, would elevate to nearly 16 per cent if included, highlighting the bank’s solid capital position to support future growth.
Prakash commented on the bank’s capital position, saying, “With a CRAR nearing 15 percent, we remain adequately capitalised, supporting future growth opportunities while maintaining financial discipline.”
Emphasising J&K Bank’s continued push towards digitalisation, Prakash stated, “As a developmental financial institution, we aim to offer businesses the tools needed to manage sustainable growth. We are focused on advancing our digital momentum to create more convenient, secure, and efficient banking experiences for our customers.”
J&K Bank’s digital strategy aims to simplify financial management through user-friendly services, such as online account management, transactions, and loan applications. The bank has also laid out plans to support MSMEs (Micro, Small, and Medium Enterprises) through collaborative banking initiatives with fintech partners, offering advanced tools to enhance growth sustainability.
“We have embarked on a digital journey to empower customers, particularly MSMEs, with streamlined management solutions through our fintech collaborations, enabling businesses to thrive in an increasingly digital landscape,” Prakash added.
Concluding with a forward-looking perspective, Baldev Prakash emphasised the bank’s commitment to maintaining consistent growth and value creation for stakeholders. He remarked on the bank’s plans to scale its business and operational capabilities to secure long-term growth while keeping a focus on sustainable, quality-driven financial management.
This comprehensive performance report reflects J&K Bank’s strength in operational resilience, asset quality, and digital innovation, underscoring its role as a key player in the regional and national banking landscape.
