SRINAGAR: Jammu and Kashmir Bank has reported its highest-ever annual profit of Rs 2,363.47 crore for the financial year 2025–26, marking the fourth consecutive year of record earnings and underscoring sustained financial resilience and operational efficiency.
The bank registered a year-on-year growth of over 13per cent compared to Rs 2,082.46 crore reported in FY 2024–25, despite absorbing a one-time impairment provision of Rs 179 crore on its investment in J&K Grameen Bank during the first half of the fiscal.
The strong annual performance was complemented by a robust fourth quarter, with net profit nearing Rs 800 crore, significantly higher than Rs 584.54 crore recorded in the corresponding quarter last year. The results were approved by the bank’s Board of Directors at its Corporate Headquarters in Srinagar.
The bank’s net interest margin (NIM) stood at 3.60 per cent for the year, while Return on Assets (RoA) improved by 34 basis points year-on-year to 1.78 per cent for the quarter, with annual RoA at 1.37 per cent. Efficiency indicators continued to improve, with the cost-to-income ratio declining to 56.18 per cent, marking the fourth consecutive year of improvement.
Return on Equity (RoE) was recorded at 16.85 per cent for FY26. However, net interest income growth remained moderate at Rs 5,875.77 crore, primarily due to a reduction in policy rates by the Reserve Bank of India.
Commenting on the performance, Managing Director and CEO Amitava Chatterjee has said the bank’s consistent profitability, improved asset quality, and strong capital adequacy reflect disciplined execution despite geopolitical uncertainties and a challenging operating environment.
He noted that a cumulative 125 basis points cut in policy rates by the RBI during calendar year 2025 impacted lending yields across repo- and MCLR-linked portfolios, thereby moderating earnings growth. Additionally, intense competition in deposit mobilisation increased funding costs.
“With historic profits, GNPA at 2.5 per cent, PCR above 90 per cent and CRAR exceeding 16.50 per cent, the bank is well-positioned to accelerate its next phase of growth,” he has said.
The bank’s total business grew 13.61per cent year-on-year to Rs 2,90,341 crore as of March 31, 2026. Deposits increased by 11.30per cent to Rs 1,65,354 crore, while net advances surged by 18per cent to Rs 1,22,641 crore.
CASA deposits rose 8.07per cent to Rs 75,478 crore, with the CASA ratio improving to 45.65per cent from 44.10per cent in the previous quarter, reflecting stability in the bank’s low-cost deposit base.
The CEO emphasised a continued focus on expanding retail lending, strengthening MSME financing, and enhancing credit flow to the agriculture sector, while exploring growth opportunities across India alongside consolidating its presence in Jammu & Kashmir and Ladakh.
Asset quality indicators showed marked improvement, with Gross Non-Performing Assets (GNPA) declining to 2.5per cent from 3per cent quarter-on-quarter and 3.37per cent year-on-year. Net NPA stood at 0.64 per cent, while Provision Coverage Ratio (PCR) remained strong at over 90 per cent.
“This reflects the discipline in our credit processes and the robustness of our risk management framework,” the CEO said.
The bank’s Capital Adequacy Ratio (CRAR) stood at 16.55 per cent as of March 31, 2026, indicating a comfortable capital buffer. However, in view of the expected implementation of Expected Credit Loss (ECL) norms from April 1, 2027, the bank is considering raising additional capital during the current financial year.
Highlighting its social commitment, the bank said it has deployed close to Rs 100 crore (Rs 96 crore) under Corporate Social Responsibility (CSR) initiatives over the past three years, focusing on healthcare, education, environmental sustainability, skill development, and community welfare in alignment with Sustainable Development Goals.
Concluding, the bank’s leadership expressed confidence in sustaining growth momentum, backed by strong fundamentals, improving asset quality, and continued stakeholder support.
“The trust and confidence of our stakeholders continue to inspire us as we move forward with renewed focus and commitment,” the CEO said.
