| Metric | Value (₹ Cr) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 3.3K | 0.7% | 3.3% |
| Total Income | 3.6K | 4.3% | 4.2% |
| Expenditure | 2.8K | 0.4% | 4.2% |
| PBT | 807.20 | 27.2% | 6.4% |
| Net Profit | 587.51 | 18.7% | 10.4% |
| OPM | 23.57% | 4.63pp | |
| NPM | 16.33% | 1.99pp | 0.92pp |
| EPS | 5.28 | 17.6% | 10.0% |
J&K Bank Net Profit jumps over 10% YoY for Q3, Characterized by robust top-line growth and better asset quality
20 Jan 2026 · 20 Jan, 6:12 pm
Summary
J&K Bank announced healthy financial results for the October-December quarter (Q3 FY 25-26), with net profit rising by 18.7% Quarter-on-Quarter and 10.4% year-on-year (YoY) to Rs 586.73 Cr. The Bank’s operating metrics reflected steady growth, as the Net Interest Income (NII) witnessed 3.8% growth QoQ to Rs 1488.88 Cr, while the Other Income for the quarter surged 15.3% YoY to Rs 279.46 Cr. The Bank’s Cost of Deposits also declined to 4.69% QoQ from 4.86%.
Key Highlights
- 1
Net profit rose by 18.7% Quarter-on-Quarter and 10.4% year-on-year to Rs 586.73 Cr
- 2
Net Interest Margin (NIM) for the quarter improved to 3.62%
- 3
Cost-to- Income Ratio improved to 55.88% YoY for the quarter
- 4
Return on Assets (RoA) for nine-months stood at 1.23%
- 5
Net Interest Income (NII) witnessed 3.8% growth QoQ
- 6
Other Income for the quarter surged 15.3% YoY
- 7
Cost of Deposits declined to 4.69% QoQ
- 8
Gross NPA ratio declined YoY to 3.00%
- 9
Net NPA reduced by 26 bps YoY to 0.68%
- 10
Provision Coverage Ratio (PCR) for the quarter is above 90% at 90.46%
- 11
Robust YoY growth of 17.3% in gross advances and a healthy YoY growth of 10.6% in deposits
- 12
Capital Adequacy Ratio (CAR) under Basel III stood at 15%
- 13
Bank remains firmly on track to deliver record profits for the fourth consecutive year
Management Comments
Amitava Chatterjee
MD & CEO
Despite rate cut, impairment provisioning for Grameen Bank and challenging conditions - particularly the events of April 22, their subsequent impact, and the floods that disrupted the local economy - the Bank remains firmly on track to deliver record profits for the fourth consecutive year. Characterized by robust top-line growth and better asset quality, overall our Q3 performance underscores our strong fundamentals, disciplined execution, and sustained operational efficiency.
Amitava Chatterjee
MD & CEO
Even as our core geography has navigated significant challenges extending beyond the banking sector, the Bank’s asset quality has continued to improve steadily. Supported by robust risk management practices, Gross NPAs have declined from around 4 percent to 3.00% percent, which is almost in line with our stated annual guidance. The sustained improvement in asset quality despite such disturbances speaks volumes about the resilience and commitment of borrowers and the underlying robustness of the local economy.
Amitava Chatterjee
MD & CEO
Delivering over 17% year-on- year growth in advances - well ahead of the guidance we had shared with the market - reflects the strength of our franchise, the effectiveness of our credit strategy and the meticulous execution by our teams on the ground. Double-digit growth of deposits in a competitive environment also highlights the trust reposed in the Bank by our customers. The accelerated advances growth was driven by focused expansion in retail, MSME, agriculture and select corporate portfolios, supported by improved credit appetite and strengthened customer engagement across both core and emerging geographies. Our consistent focus on deepening relationships within JKL and beyond, improving product penetration and enhancing service delivery continues to support stable balance-sheet expansion.
Amitava Chatterjee
MD & CEO
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. Moreover, the board approved capital raise of Rs 1250 Cr 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.
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