J&K Bank posts ₹494 Cr profit in Q2; Half-yearly profit rises to ₹979 Cr
“Despite tough challenges, we remain on track to achieve our annual guidance”: MD & CEO
SRINAGAR: Maintaining higher provisioning requirements in line with regulatory norms, Jammu and Kashmir Bank has reported a net profit of ₹494.11 crore for the July–September quarter (Q2) of the current financial year (CFY). The half-yearly (H1) profit rose to ₹978.95 crore, up from ₹966.41 crore in the same period last fiscal, keeping the Bank firmly on course to meet its annual guidance.
The Bank announced its financial results after the Board of Directors reviewed and approved the quarterly and half-yearly accounts at a meeting held at its Corporate Headquarters.
Key Financial Highlights
The Bank’s Q2 profit was moderated by a ₹92 crore provisioning towards its investment in Jammu and Kashmir Grameen Bank, following the merger of Ellaquai Dehati Bank with the erstwhile J&K Grameen Bank under the Government’s “One State, One RRB” initiative.
Despite this, J&K Bank reported ₹494.11 crore profit for Q2 and ₹978.95 crore for H1.
Net Interest Income (NII) grew 3.4% year-on-year to ₹2,899.43 crore for H1, with ₹1,433.99 crore for Q2. The Bank maintained a healthy Net Interest Margin (NIM) of 3.64%. Other income stood at ₹405.19 crore, while the Cost-to-Income ratio was reported at 60.80%.
MD & CEO’s Remarks
Commenting on the results, MD & CEO Amitava Chatterjee said,
“In spite of widespread disruptions during the first quarter following the Pahalgam incident and the flood-related damage in the second quarter, the overall growth we have achieved is encouraging and reassuring.”
He added that profitability was affected by an additional ₹92 crore impairment provision made in compliance with regulatory requirements.
“Excluding this impact, our H1 profitability would have grown upwards of 15% year-on-year,” he noted.
The Bank has made a total provisioning of ₹180 crore towards Jammu and Kashmir Grameen Bank in the first half of FY2025.
Asset Quality
Despite challenges from natural and security-related disruptions, the Bank’s asset quality improved steadily.
Gross NPA declined by 18 basis points (bps) quarter-on-quarter to 3.32%, down 63 bps year-on-year from 3.95%.
Net NPA stood at 0.76%, down from 0.85% a year earlier.
Provision Coverage Ratio (PCR) remained robust at above 90%, and Return on Assets (RoA) stood at 1.17% for H1.
On asset quality, Chatterjee said,
“With GNPA around 3.3% midway through the year, our progress is steady. I am confident we will achieve our target of below 3% GNPA by year-end. Our PCR remains healthy at 90.39%.”
Business Growth
The Bank’s deposits grew 10.23% YoY to ₹1,52,030 crore, while net advances increased 9.38% YoY to ₹1,05,153 crore.
The CASA ratio improved slightly to 45.89%, remaining among the highest in the industry.
“Our business has grown nearly 10% YoY to ₹2.57 lakh crore,” said the MD & CEO.
“Deposits are in line with industry averages, while advances — especially in the agri and corporate segments — have shown healthy growth. The uptick in CASA underscores our focus on sustainable, quality expansion.”
He further added,
“Despite the challenges faced, our steady first-half performance strengthens my confidence that we are on track to meet our annual growth targets.”
Capital Adequacy
The Bank’s Capital Adequacy Ratio (CAR) stood at 15.27% for Q2, compared to 14.99% last year.
“With a CRAR above 15%, we remain well-capitalized to pursue future growth opportunities while maintaining financial discipline,” Chatterjee said.
He noted that excluding the half-yearly profit of ₹978.95 crore, the CAR would exceed 16%.
Expanding Beyond J&K
Highlighting the Bank’s pan-India strategy, Chatterjee said,
“We continue expanding beyond J&K, partnering with top corporates across India. We are also sharpening our focus on building a strong retail presence outside the UT, especially in the personal finance segment.”
Concluding his remarks, he added,
“The transformation underway at our Bank is anchored on three pillars — our people, our processes, and our technology. We are strengthening each of these to ensure that efficiency, resilience, and excellence remain central to everything we do.”
