SRINAGAR, Oct 18 : In a resilient performance amid testing circumstances, J&K Bank reported a net profit of ₹494.11 crore for Q2 (July–September) and ₹978.95 crore for the first half (H1) of the current financial year, showing a steady upward trajectory from ₹966.41 crore during the same period last year.
The financial results were reviewed and approved by the Bank’s Board of Directors at its Corporate Headquarters.
Key Financials
Despite higher provisioning requirements, including ₹92 crore for its investment in J&K Grameen Bank following the merger of Ellaquai Dehati Bank under the “One State, One RRB” policy, the Bank maintained strong fundamentals.
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Net Interest Income (H1): ₹2899.43 crore (up 3.4% YoY)
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Net Interest Margin (NIM): 3.64%
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Other Income (H1): ₹405.19 crore
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Cost-to-Income Ratio: 60.80%
MD & CEO Amitava Chatterjee said,
“In spite of widespread disruptions during the first quarter following the Pahalgam incident and the floods in the second quarter, our growth is both encouraging and reassuring.”
He added that while profitability was moderated due to additional provisioning, the Bank’s underlying performance remained strong, with overall H1 profitability expected to be 15% higher YoY when adjusted for provisioning impact.
Asset Quality
Despite operational challenges, asset quality improved significantly:
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Gross NPA: 3.32% (down 18 bps QoQ, 63 bps YoY)
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Net NPA: 0.76% (down 9 bps YoY)
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Provision Coverage Ratio: 90.39%
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Return on Assets (RoA): 1.17%
Chatterjee expressed confidence that the Bank would bring GNPA below 3% by FY-end, reinforcing its strong risk-management practices.
Business Growth
The Bank’s total business reached ₹2.57 lakh crore, marking nearly 10% year-on-year growth.
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Deposits: ₹1,52,030 crore (up 10.23% YoY)
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Net Advances: ₹1,05,153 crore (up 9.38% YoY)
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CASA Ratio: 45.89% — one of the highest in the industry.
“Our Q2 performance demonstrates operational discipline,” said the MD & CEO, adding that growth in Agri and corporate segments has been particularly robust.
Capital Strength
The Bank’s Capital Adequacy Ratio (CAR) stood at 15.27%, up from 14.99% last year. The figure excludes the half-yearly profit, which if added, would raise CAR above 16%, reflecting a well-capitalized and growth-ready position.
Expanding Beyond J&K
Reiterating the Bank’s commitment to national expansion, Chatterjee noted,
“We are strengthening our footprint beyond J&K, partnering with top corporates and enhancing our retail presence across India. Our transformation rests on three pillars — people, processes, and technology — ensuring efficiency, resilience, and excellence.”
J&K Bank’s sustained performance, despite natural and operational adversities, underscores its disciplined management, sound capital position, and steady progress toward its annual growth targets.
