JK Bank Q2 Net Profit Rises 28.8% QoQ, 10.6% YoY to Rs 546 Cr
Business grows 19.4% to Rs 3.10 lakh Cr; asset quality improves to decade-best levels
Convener News Desk
Srinagar, October 22: Jammu and Kashmir Bank on Thursday reported a 28.8% quarter-on-quarter and 10.6% year-on-year rise in net profit to Rs 546.36 crore for the quarter ended September 30, 2026.
The bank had reported a net profit of Rs 424.18 crore in Q1 FY 2026-27 and Rs 494.11 crore in Q2 FY 2025-26.
The financial results were approved by the bank’s Board of Directors at a meeting held at its corporate headquarters on Wednesday.
The bank’s Net Interest Income (NII) increased 5% year-on-year to Rs 1,502 crore during the quarter, while other income more than doubled to Rs 314.90 crore from Rs 153.76 crore in the corresponding quarter last year. Other income also increased 47% sequentially.
Operating expenses grew 1.5% year-on-year during the first half of the financial year, while operating profit rose more than 15% to Rs 1,492 crore. The Cost-to-Income Ratio improved to 56.57% from 60.79% a year earlier, while Return on Assets rose 20 basis points sequentially to 1.07%.
J&K Bank MD and CEO Amitava Chatterjee attributed the performance to growth in net interest income, higher other income and improved operating profitability. He said the bank would focus during the second half on core income growth, recurring revenue streams, recoveries and managing funding costs through deeper deposit relationships.
Asset quality improves
The bank’s Gross NPA ratio declined 109 basis points year-on-year to 2.23%, while the Net NPA ratio improved to 0.51% from 0.76% a year earlier.
The bank said both metrics represented their lowest levels in a decade. Its Provision Coverage Ratio also improved to 91.76% as on September 30, 2026, from 90.53% as on June 30, 2026.
Chatterjee said the improvement in asset quality reflected the bank’s focus on credit underwriting, monitoring and recoveries. He said the bank would continue to work towards its annual asset-quality objectives while expanding its loan book.
Business grows 19.4%
The bank’s total business increased 19.38% year-on-year to Rs 3,10,347 crore as on September 30, 2026.
Gross advances grew 23.72% to Rs 1,33,551 crore from Rs 1,07,943 crore a year earlier, while total deposits increased 16.30% to Rs 1,76,796 crore.
The bank said more than 60% of the net incremental credit on a year-to-date basis came from the Retail, Agriculture and MSME (RAM) segment.
Current Account and Savings Account (CASA) deposits increased 1.73% quarter-on-quarter, with the CASA ratio standing at 41.97% as on September 30.
Chatterjee said the nearly 20% year-on-year growth in total business was aligned with the bank’s Vision 2030 target of reaching Rs 5 lakh crore in business.
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