| Metric | Value (₹ Cr) | Q3 FY26 | Q4 FY25 |
|---|---|---|---|
| Revenue | 3.3K | 1.3% | 1.9% |
| Total Income | 3.5K | 1.7% | 2.3% |
| Expenditure | 2.6K | 6.8% | 6.9% |
| PBT | 862.33 | 6.8% | 6.5% |
| Net Profit | 799.15 | 36.0% | 36.6% |
| OPM | 27.88% | 4.31pp | 2.97pp |
| NPM | 22.60% | 6.27pp | 6.44pp |
| EPS | 7.25 | 37.3% | 37.3% |
J&K Bank Posts Record ₹2363 Cr Annual Profit for FY26
05 May 2026 · 5 May, 4:29 pm
Summary
J&K Bank achieved its highest-ever annual profit of ₹2363.47 Cr for FY 2025-26, demonstrating a consistent growth trajectory with a year-on-year increase of over 13%. The bank also posted a strong Q4 net profit of almost ₹800 crores, significantly higher than the previous year. Despite a one-time impairment provision and challenges from reduced policy rates impacting Net Interest Income, the bank's total business surged by 13.61% to ₹290341 Cr, propelled by an 18% expansion in net advances. Management highlighted sustained improvement in asset quality, with GNPA at 2.5%, and strong capital adequacy, positioning the bank for its next phase of growth while focusing on operational efficiency and strategic expansion.
Key Highlights
- 1
J&K Bank reported its highest-ever annual profit of ₹2363.47 Cr for FY 2025-26, marking a fourth consecutive year of record profits.
- 2
The Bank's annual profit grew by over 13% year-on-year compared to ₹2082.46 Cr in FY 2024-25, despite a one-time impairment provision of ₹179 Cr.
- 3
For Q4 FY 2025-26, net profit reached almost ₹800 crores, a significant increase from ₹584.54 Cr in the corresponding period last year.
- 4
Total business expanded by 13.61% year-on-year to ₹290341 Cr as of March 31, 2026, driven by an 18% growth in net advances to ₹122641 Cr.
- 5
The Bank improved its Return on Assets (RoA) by 34 bps YoY to 1.78% for Q4 FY26 and its Cost to Income ratio to 56.18% for the full year.
- 6
Asset quality strengthened with Gross Non-Performing Assets (GNPA) at 2.5%, a Provision Coverage Ratio (PCR) exceeding 90%, and a Capital to Risk-Weighted Assets Ratio (CRAR) over 16.50%.
- 7
Net Interest Income for the financial year grew marginally to ₹5875.77 Cr, impacted by a 125 basis points reduction in policy rates by the RBI.
Management Comments
Amitava Chatterjee
Even against a backdrop of geopolitical uncertainties and a demanding local environment, the Bank delivered record profits for the fourth consecutive year - alongside sustained improvement in asset quality and strong capital adequacy – underscoring its resilience and disciplined execution. Significantly, the Bank has also been able to rationalize its operating expenses even as the business scales up, thereby enhancing operational efficiency and strengthening overall productivity.
Amitava Chatterjee
With historic profits of Rs 2363.47 Cr, a GNPA at 2.5%, PCR exceeding 90% and CRAR over 16.50%, our Bank stands well-positioned to accelerate the next phase of growth journey. This remarkable performance is a testament to the dedication of our staff, the unwavering trust of our customers, and the steadfast support of our promoters - Governments of J&K and Ladakh.
Amitava Chatterjee
Despite healthy growth in our loan book, the increase in interest income was relatively muted. This was largely on account of the cumulative 125 basis points reduction in policy rates by the Reserve Bank of India during the calendar year 2025, which resulted in lower lending rates across our repo- and MCLR-linked portfolios, impacting overall earnings. Additionally, intense competition among the banks for deposit mobilization exerted pressure on funding costs, further moderating the growth in net interest income.
Amitava Chatterjee
Our performance for the year reflects the strength of our fundamentals and the consistency in our execution strategy. We have been able to scale our advances book at a healthy pace while maintaining stability in our liability franchise, which remains central to our growth approach.
Amitava Chatterjee
Going forward, we remain focused on leveraging emerging opportunities across geographies in rest of the country while deepening our presence in core markets of J&K and Ladakh. The strategic thrust continues to be on expanding retail lending, supporting MSMEs and enhancing credit flow
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