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Informist, Monday, May 5, 2025

By Kshipra Petkar

MUMBAI – Jammu & Kashmir Bank's net profit for the quarter ended March fell by more than 8% on year to INR 5.85 billion as its expenditure rose. For the financial year ended March, the bank's net profit was INR 20.82 billion, higher than INR 17.67 billion reported the previous year.

For the quarter ended March, the bank's expenses rose 14% on year to INR 28.16 billion. Sequentially, the expenses were up over 4%. Operating expenses were up 8% on quarter and 25% on year at INR 10.84 billion. Employee cost and other operating expenses rose by 4.4% and 17% on quarter, respectively.

Provisions for non-performing assets increased to INR 580 million during the quarter, from INR 227.6 million a quarter ago. The bank reversed provisions totalling INR 91.6 million during the quarter, compared with INR 98.0 million a quarter ago.

Asset quality of the bank improved in the March quarter, with the gross non-performing asset ratio at 3.37% as on Mar. 31 compared to 4.08% a quarter ago and the net NPA ratio at 0.79% as on Mar. 31 compared to 0.94% as on Dec. 31.

Total income of the bank increased 15.4% on year to INR 36.16 billion in Jan-Mar. For FY25, the total income stood at INR 136.73 billion as compared to INR 120.38 billion a year ago. Other income for the March quarter was up over 80% on year at INR 4.04 billion. According to the bank's press release, the net interest income grew 11.3% on year to INR 57.94 billion for the quarter. The net interest margin for the quarter was 3.92%.

"With our core fortified and transformation underway, we are prepared to scale up growth operations in high-potential geographies and deepening our presence in core markets, especially in J&K and Ladakh," Managing Director and Chief Executive Officer Amitava Chatterjee said in the release. "Going forward, we aim to maintain this growth momentum with increased emphasis on retail, MSME, and agriculture lending – while accelerating our digital transformation to further enhance customer experience," he added.

Total deposits of the bank increased by 10.2% on year to INR 1.49 trillion as on Mar. 31, while net advances grew 11.13% on year to INR 1.04 trillion. The bank's current account, savings account deposit ratio stood at 47.01% as on Mar. 31.

The bank's provision coverage ratio was over 90% and the capital adequacy ratio was 16.29% as on Mar. 31.

The board has recommended a dividend of INR 2.15 per share. The result was announced after market hours. On the National Stock Exchange, shares of the bank closed 2.4% higher at INR 96.35 on Monday.  End

Edited by Ashish Shirke

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