Jammu & Kashmir Bank Limited has announced its financial results for the second quarter of fiscal year 2025-26, showcasing a steady performance amid challenging economic conditions.

Key Financial Highlights

• Net Profit: The bank reported a standalone net profit of Rs 494.11 crore for Q2 FY2026, compared to Rs 484.84 crore in the previous quarter and Rs 550.92 crore in the same quarter last year.
• Total Income: Total income for the quarter stood at Rs 3,446.71 crore, up from Rs 3,419.63 crore in Q2 FY2025.
• Net Interest Income: The bank's net interest income (NII) remained relatively stable at Rs 1,433.99 crore, compared to Rs 1,435.93 crore in the same quarter last year.
• Asset Quality: Gross Non-Performing Assets (NPA) ratio improved to 3.32% from 3.95% year-on-year, while the Net NPA ratio decreased to 0.76% from 0.85%.

Business Growth and Operational Performance

The bank demonstrated growth in key business parameters:

• Deposits: Total deposits increased by 10.2% year-on-year to Rs 1,52,030.16 crore.
• Advances: Net advances grew by 9.4% to Rs 1,05,153.30 crore.
• Business per Employee: Improved to Rs 20.92 crore from Rs 18.52 crore in the previous year.

Capital Adequacy and Liquidity

J&K Bank maintained a strong capital position:

• Capital Adequacy Ratio: Stood at 15.27% under Basel III norms, up from 14.99% in Q2 FY2025.
• CET1 Ratio: Improved to 12.11% from 11.66% year-on-year.

Management Commentary

Mr. Amitava Chatterjee, MD & CEO of J&K Bank, stated, "Our Q2 results reflect the bank's resilience and strategic focus on sustainable growth. The improvement in asset quality and steady increase in business volumes demonstrate our commitment to creating value for all stakeholders."

Future Outlook

The bank continues to focus on improving asset quality, expanding its retail and MSME portfolio, and leveraging technology to enhance operational efficiency. With a strong presence in the region of Jammu & Kashmir and increasing footprint in other strategic areas, J&K Bank is well-positioned for future growth.

Conclusion

Jammu & Kashmir Bank's Q2 FY2026 results indicate a stable performance with improvements in key areas such as asset quality and business growth. The bank's strategic initiatives and strong regional presence provide a solid foundation for sustained performance in the coming quarters.

Jammu & Kashmir Bank (J&K Bank) has reported significant growth across its key financial metrics for the period ending September 30, showcasing the bank's strong performance in the face of evolving market conditions.

Business Growth

J&K Bank's total business reached ₹2,57,196.94 crore, marking a substantial year-over-year increase of 9.89%. This growth reflects the bank's expanding market presence and its ability to capitalize on economic opportunities.

Deposit and Advance Growth

The bank witnessed impressive growth in both deposits and advances:

The robust growth in deposits indicates strong customer trust and the bank's effective strategies in attracting and retaining depositors. The growth in advances suggests an increased lending activity, potentially contributing to the bank's interest income.

Investment Portfolio

J&K Bank's gross investments saw the highest year-over-year growth among all reported metrics:

This significant increase in investments could indicate the bank's strategy to diversify its income sources and optimize its asset allocation.

CASA Deposits

Current Account and Savings Account (CASA) deposits, an important indicator of a bank's low-cost funding base, showed moderate growth:

However, it's worth noting that the CASA ratio decreased by 270 basis points year-over-year, settling at 45.90%. This slight decline in the CASA ratio might be an area for the bank to focus on in the coming quarters.

J&K Bank's performance demonstrates its resilience and ability to grow across various financial parameters. The bank's strategy seems to be yielding positive results, particularly in terms of overall business growth, deposit mobilization, and investment portfolio expansion. As the bank continues to navigate the dynamic banking landscape, maintaining this growth trajectory while focusing on improving its CASA ratio could be key to its future success.