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Informist, Tuesday, Jan. 20, 2026

 

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--J&K Bank Oct-Dec net profit INR 5.87 bln vs INR 5.32 bln year ago
--J&K Bank Oct-Dec total income INR 35.93 bln vs INR 34.48 bln year ago
--J&K Bank reversed provisions of INR 258.10 mln in Oct-Dec
--J&K Bank reversed NPA provisions of INR 779.30 mln in Oct-Dec
--J&K Bank gross NPA ratio 3.00% as on Dec 31 vs 3.32% qtr ago
--J&K Bank net NPA ratio 0.68% as on Dec 31 vs 0.76% qtr ago
--J&K Bank Basel III capital adequacy ratio 15% as on Dec 31
--J&K Bank Apr-Dec net profit INR 15.66 bln vs INR 14.98 bln year ago
--J&K Bank Apr-Dec total income INR 105.58 bln vs INR 100.57 bln year ago

 

By Durgesh Nandan

 

MUMBAI –  Jammu & Kashmir Bank Ltd. reported double-digit growth on year and on quarter in net profit for the December quarter. The rise in net profit is attributed to a reversal in provisions, with operating profit growing at a sluggish pace.

 

The bank's bottom line for the reporting quarter rose 10.4% on year to INR 5.87 billion. Sequentially, the Srinagar-based lender's net profit rose nearly 19%.

 

The bank reversed provisions and contingencies worth INR 258 million for the December quarter, compared to a reversal of provisions of INR 98 million in the year-ago quarter. The bank reversed provisions for non-performing assets worth INR 779.3 million for the reporting quarter. It had reversed provisions for non-performing assets of INR 227.6 million in the year-ago quarter.

 

The bank's other income rose over 15% on year to INR 2.79 billion for the reporting quarter. The other income was also up over 80% sequentially, boosting the bottom line. However, the bank's total income rose only 4% on year to INR 35.93 billion. With expenses growing at a similar pace, the lender's operating profit was up 4.3% on year at INR 7.80 billion, though the other income helped it rise over 25% sequentially. The net interest income--interest earned minus interest expended--for the December quarter fell 1% on year to INR 14.89 billion.

 

The net interest margin expanded 6 basis points on quarter to 3.62% in the December quarter. The bank's gross advances rose 17.3% on year to INR 1.16 trillion as on Dec. 31, rising past the INR 1-trillion mark during the quarter.

 

"The accelerated advances growth was driven by focused expansion in retail, MSME (micro, small, and medium enterprises), agriculture, and select corporate portfolios, supported by improved credit appetite and strengthened customer engagement across both core and emerging geographies," Managing Director and Chief Executive Officer Amitava Chatterjee said in a release.

 

Despite the sharp growth in loans, the lender's gross non-performing asset ratio declined to 3.00% as on Dec. 31, down 108 bps on year and 32 bps from Sept. 30. The net non-performing asset ratio was 0.68% at the end of December, down from 0.94% a year ago and 0.76% a quarter ago. The private-sector bank's Basel-III capital adequacy ratio fell to 15.00% on Dec. 31 from 15.27% at the end of September. It said it would shore up the ratio with a board-approved INR 12.50-billion capital raise as well as internal accruals.

 

The bank's deposits rose at a much slower pace, up 10.6% on year to INR 1.56 trillion as on Dec. 31. The cost of deposits fell to 4.69% in the December quarter from 4.86% in Jul-Sept, while the cost of funds fell to 4.80% from 4.94% in the trailing quarter. 

 

The bank's net profit for the nine-month period ended December rose nearly 4.5% on year to INR 15.66 billion. Its total income for the period was up 5.0% on year at INR 105.58 billion.

 

The bank declared its results after market hours Tuesday. Shares of Jammu & Kashmir Bank ended 3.8% lower at INR 98.92 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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