Gross advances rose 17.3 per cent year-on-year to ₹1.16 trillion, driven by growth in retail, MSME and agriculture portfolios, while deposits increased 10.6 per cent to ₹1.56 trillion as of December 31, 2025.
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Jammu & Kashmir Bank reported a 10.4 per cent year-on-year rise in net profit for the October–December quarter, supported by improved asset quality, higher advances growth and stable margins.
Net profit rose to ₹586.73 crore in the third quarter of FY26 from ₹531.51 crore a year earlier, while profit grew 18.7 per cent quarter-on-quarter. For the first nine months of the financial year, net profit increased 4.5 per cent to ₹1,565.68 crore, the bank said after its board approved the results at a meeting in Jammu.
Net interest margin improved to 3.62 per cent during the quarter, while net interest income rose 3.8 per cent sequentially to ₹1,488.88 crore. Other income increased 15.3 per cent year-on-year to ₹279.46 crore. The cost-to-income ratio improved to 55.88 per cent, while return on assets for the nine-month period stood at 1.23 per cent.
Gross non-performing assets declined to 3 per cent from 4.08 per cent a year earlier, while net NPAs fell to 0.68 per cent from 0.94 per cent. Provision coverage ratio stood at 90.46 per cent.
Managing Director and CEO Amitava Chatterjee said the bank remained on track to post record profits for the fourth consecutive year despite economic disruptions. “Even as our core geography has navigated significant challenges extending beyond the banking sector, the Bank’s asset quality has continued to improve steadily,” he said.
Gross advances rose 17.3 per cent year-on-year to ₹1.16 trillion, driven by growth in retail, MSME and agriculture portfolios, while deposits increased 10.6 per cent to ₹1.56 trillion as of December 31, 2025.
The bank’s capital adequacy ratio under Basel III stood at 15 per cent, with a proposed ₹1,250 crore capital raise expected to support future lending.
“With our CAR at 15% — which will be further augmented by internal accruals on account of net profit for current fiscal — we are well capitalized to expand our lending operations as per our business plan”, Chatterjee said.
He said the board approved capital raise of ₹1250 crore will boost our capital adequacy and cushion us comfortably to support calibrated business expansion across key sectors.
“It will enhance our ability to absorb risk, while reinforcing our long-term focus on sustaining asset quality, improving profitability and creating enduring value for our shareholders”, he added.
Published on January 21, 2026
