J&K Bank reported a 10.6% year-on-year rise in second-quarter net profit to Rs 546.36 crore, while gross and net non-performing assets fell to their lowest levels in a decade.
Jammu and Kashmir Bank reported a stronger second quarter on Thursday, with net profit rising to Rs 546.36 crore for the three months ended September 30, 2026, up 28.8% from the previous quarter and 10.6% from a year earlier. The result reflected higher earnings and further gains in asset quality, according to the bank’s quarterly filing after board approval of the numbers at its corporate headquarters in Srinagar.
The lender said net interest income, the difference between interest earned on loans and paid on deposits, increased 5% year on year to Rs 1,502 crore. Other income more than doubled to Rs 314.90 crore from the same period last year, while operating profit for the first half of the fiscal year climbed more than 15% to Rs 1,492 crore. The bank also said its cost-to-income ratio improved to 56.57% from 60.79% a year earlier, and return on assets rose to 1.07%.
Asset quality improved to its best level in a decade, the bank said, with gross non-performing assets falling to 2.23% and net non-performing assets easing to 0.51%. Provision coverage ratio improved to 91.76% at the end of September, up from 90.53% at the end of June. Amitava Chatterjee, the managing director and chief executive, said the latest figures reflected disciplined underwriting, closer credit monitoring and a lower slippage ratio in the first half.
Business momentum also remained firm. Total business rose 19.38% year on year to Rs 3.10 lakh crore, driven by a 23.72% increase in gross advances to Rs 1,33,551 crore and a 16.30% rise in deposits to Rs 1,76,796 crore. Current account and savings account deposits climbed 1.73% sequentially, leaving the CASA ratio at 41.97%, while the capital adequacy ratio stood at 16.57%, giving the bank room to pursue lending growth without straining its balance sheet.
Chatterjee said the bank remained focused on expanding core income, deepening deposit relationships and improving recoveries in the months ahead. He added that the lender still aimed to reach Rs 5 lakh crore in total business under its Vision 2030 plan, supported by growth in Jammu and Kashmir and Ladakh and selective expansion elsewhere in the country.
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