Srinagar, Oct 22: Jammu and Kashmir Bank on Thursday reported a 10.6 per cent year-on-year increase in net profit to Rs 546.36 crore for the second quarter ended September 30, 2026, compared with Rs 494.11 crore in the corresponding quarter last year.
The bank’s net profit also rose 28.8 per cent sequentially from Rs 424.18 crore in the first quarter of the current financial year, supported by higher other income, growth in net interest income and continued improvement in asset quality.
The financial results were approved by the bank’s Board of Directors at a meeting held at its corporate headquarters on Thursday.
The bank’s total business expanded 19.38 per cent year-on-year to Rs 3.10 lakh crore, while its gross and net non-performing asset (NPA) ratios improved to their lowest levels in a decade, strengthening its balance sheet.
Earnings performance improves
The bank’s net interest income (NII) increased 5 per cent year-on-year to Rs 1,502 crore during the quarter. Other income more than doubled to Rs 314.90 crore from Rs 153.76 crore in the corresponding quarter last year, registering a sequential increase of 47 per cent.
The bank reported operating profit of Rs 1,492 crore for the first half of FY2026-27, marking growth of more than 15 per cent year-on-year. Operating expenditure remained under control, rising just 1.5 per cent during the half-year.
The cost-to-income ratio improved to 56.57 per cent in the September quarter from 60.79 per cent a year earlier. Return on assets (RoA) increased by 20 basis points sequentially to 1.07 per cent.
Commenting on the results, Managing Director and CEO Amitava Chatterjee said the growth in net interest income, doubling of other income and a more than 26 per cent year-on-year increase in quarterly operating profit reflected a strengthening of the bank’s earnings performance.
He said the recovery in return on assets to above 1 per cent also underscored the improvement recorded since the June quarter.
Chatterjee said the bank had focused on expanding its business base during the first quarter to position itself for stronger earnings over time.
For the second half of the financial year, he said, the bank would focus on sustaining core income growth, strengthening recurring revenue streams, improving recoveries and managing funding costs through deeper deposit relationships.
Asset quality reaches decade-best levels
The bank’s asset quality continued to improve, with the gross NPA ratio declining by 109 basis points year-on-year to 2.23 per cent as of September 30, 2026. The ratio also improved by 14 basis points sequentially.
The net NPA ratio declined to 0.51 per cent from 0.76 per cent a year earlier, while the provision coverage ratio (PCR) increased to 91.76 per cent from 90.53 per cent at the end of June 2026.
The bank said these indicators represented its best asset quality metrics in a decade.
The annualised gross slippage ratio stood at 0.4 per cent for the first half of FY2026-27, according to the bank.
Chatterjee attributed the improvement to disciplined underwriting and proactive credit monitoring, saying the bank had maintained its focus on asset quality while expanding its loan book.
He said the bank would continue to pursue its annual asset quality objectives and build a resilient balance sheet to support long-term growth.
Advances grow 23.7%; deposits rise 16.3%
The bank’s total business increased to Rs 3,10,347 crore as of September 30, 2026, from the year-earlier level.
Gross advances grew 23.72 per cent year-on-year to Rs 1,33,551 crore from Rs 1,07,943 crore, while total deposits rose 16.30 per cent to Rs 1,76,796 crore.
The retail, agriculture and micro, small and medium enterprises (RAM) segment accounted for more than 60 per cent of the net incremental credit added on a year-to-date basis, the bank said.
Current account and savings account (CASA) deposits increased 1.73 per cent sequentially, with the CASA ratio broadly maintained at 41.97 per cent as of September 30.
Chatterjee said nearly 20 per cent annual growth in total business had taken the bank closer to its Vision 2030 aspiration of achieving a business size of Rs 5 lakh crore.
He said strengthening the deposit franchise, deepening customer relationships in Jammu and Kashmir and Ladakh, and selectively expanding operations across the country would remain key priorities. These efforts, he added, would be supported by prudent lending and technology-led, personalised customer service.
Capital adequacy strengthens
The bank’s capital adequacy ratio (CRAR) improved to 16.57 per cent as of September 30, 2026, compared with 15.27 per cent a year earlier.
The bank said its capital position provided a cushion against emerging risks while allowing it to pursue quality lending opportunities.
Summing up the results, Chatterjee said the bank was entering the second half of the financial year with confidence, supported by clear priorities and disciplined execution.
He said the focus would be on translating the improvement into sustained profitability, greater stakeholder value and expanded opportunities for customers and businesses, while progressing towards the bank’s annual commitments and broader Vision 2030 objectives.
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