Earnings Review
J&K Bank posts strong PAT on sharp jump in other income
This story was originally published at 21:07 IST on 25 July 2025
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--J&K Bank Apr-Jun net profit INR 4.85 bln vs INR 4.15 bln year ago
--J&K Bank Apr-Jun total income INR 35.19 bln vs INR 31.88 bln year ago
--J&K Bank gross NPA ratio 3.50% as on Jun 30 vs 3.37% qtr ago
--J&K Bank net NPA ratio 0.82% as on Jun 30 vs 0.79% qtr ago
--J&K Bank Basel III capital adequacy ratio 15.98% as on Jun 30
--J&K Bank provision coverage ratio 90.09% as on Jun 30
By Krity Ambey
NEW DELHI – Jammu & Kashmir Bank posted robust profit growth in the June quarter on account of a sharp jump in other income and strong interest income. The bank's net profit for the reporting quarter surged 16.7% on year to INR 4.85 billion. Sequentially, however, the bank's net profit fell 17%.
Jammu & Kashmir Bank's other income jumped 29% on year to INR 2.50 billion in Apr-Jun. The bank's interest income also grew 9.2% during the quarter to INR 32.68 billion. These metrics took the lender's total income to INR 35.19 billion, up 10.4% on year.
The bank's provisions for bad loans in Apr-Jun were a mere INR 337.30 million. The bank had reported a provision reversal of INR 237.80 million in the corresponding period a year ago.
The bank's asset quality worsened slightly in the June quarter, with the gross non-performing asset ratio at 3.50% as on Jun. 30 compared with 3.37% a quarter ago. The net non-performing asset ratio was at 0.82% as on Jun. 30 compared with 0.79% as on Mar. 31. The bank's provision coverage ratio was over 90% and the capital adequacy ratio was 15.98% as on Jun. 30.
Total deposits in the bank increased 12% on year to INR 1.49 trillion as on Jun. 30, while net advances grew 6.1% on year to INR 1.01 trillion. The bank's current account savings account deposit ratio stood at 45.71% as on Jun. 30.
The Srinagar-based bank attributed the single-digit growth in advances to the blow businesses suffered after the terrorist attack in Pahalgam, Jammu and Kashmir, in April. "Despite tough situation on ground due to the Pahalgam terror attack along with its aftermath that affected business activity and credit offtake in key geographies well into June, we have been able to deliver a healthy bottom line growth of around 17%," the bank said, quoting Managing Director and Chief Executive Officer Amitava Chatterjee, in a press release.
"We remain fundamentally strong, with adequate capital and liquidity buffers, and are already seeing signs of accelerating credit off-take on ground," Chatterjee said. "With improving conditions on the ground, we are sure to gain growth momentum in the coming quarters."
The bank declared its results after market hours Friday. Shares of Jammu & Kashmir Bank had ended 2.1% lower at INR 109.37 on the National Stock Exchange. End
Edited by Rajeev Pai
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