Ehsaan Yousf
Bank is well-positioned to accelerate the next phase of growth journey: MD & CEO
Continuing its stellar streak of record profits for the fourth consecutive financial year, J&K Bank has posted its highest ever annual profit of Rs 2363.47 Cr for the FY 2025-26. The Bank registered a year-on-year growth of over 13% in its annual profit when compared to Rs 2082.46 Cr reported for FY 2024–25, despite a one-time impairment provision of Rs 179 Cr on its investment in J&K Grameen Bank during the first half of the financial year.
The Bank also ended the financial year on a high with a record quarterly performance, posting a net profit of almost Rs.800 crores when compared to Rs 584.54 Cr recorded for the corresponding period last year. The Bank declared its annual and Q4 results today after its Board of Directors approved the figures at a meeting held here at the Bank’s Corporate Headquarters.
Operating Highlights
The Bank’s net interest margin (NIM) for the financial year stood at 3.60%. The Return on Assets (RoA) witnessed increase of 34 bps YoY to 1.78% for the quarter as against 1.44% recorded last year with RoA for the year recorded at 1.37%. Cost to Income ratio of the Bank also improved for the fourth year running, being recorded at 56.18% for the year. The Bank’s Return on Equity (RoE) was recorded at 16.85% for the FY 25-26.
Affected by the reduction in repo rates by the regulator, the Bank’s net interest income for the financial year grew marginally to Rs 5875.77 Cr.
Commenting on the growth numbers, MD & CEO Amitava Chatterjee said, “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.”
“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”, MD & CEO added.
Regarding the muted growth in overall earnings of the Bank, MD & CEO said, “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.”
Business Growth
Sustaining its healthy growth trajectory during FY 2025-26, the Bank’s total business surged 13.61% year-on-year (YoY) to Rs 290341 Cr as on March 31, 2026. Total deposits were up 11.30% YoY to Rs 165354 Cr, while net advances expanded sharply by 18% YoY to Rs 122641 Cr from Rs 104198 Cr recorded last year.
CASA deposits also grew steadily by 8.07% YoY to Rs 75478 Cr, with CASA Ratio increasing to 45.65% from 44.10% recorded last quarter.
In his remarks on the business growth and outlook, MD & CEO Amitava Chatterjee said, “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.”
“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 to the agriculture sector”, he added.
Asset Quality: The Bank’s Gross NPA ratio declined sharply by 50 bps QoQ to 2.5% from 3% and 87 bps YoY from 3.37% recorded a year ago, while the Net NPA ratio stood at 0.64%. The Provision Coverage Ratio (PCR) also remains strong at over 90%, underscoring the Bank’s focus on prudential provisioning.
Commenting upon the improved asset-quality, MD & CEO said, “Our consistent improvement in asset quality reflects the discipline embedded in our credit processes and the robustness of our risk management framework. We remain committed to improving our asset quality while we support business growth.”
Capital Adequacy: The Bank’s CRAR stood at 16.55% as on March 31, 2026. “While the Bank continues to maintain a comfortable capital position, however in view of the ECL implementation with effect from 1st April 2027, the Bank will consider raising capital during the current year”, MD stated.
Corporate Social Responsibility
In his special mention on the Bank’s CSR Program, MD & CEO said, “This time, our CSR program merits a special recognition. Over the past three financial years, the Bank has deployed close to Rs 100 Cr (Rs 96 Cr) towards effective interventions across healthcare, education, environmental sustainability, skill enhancement, and community development – touching lives and creating meaningful impact in line with our larger commitment to contribute towards Sustainable Development Goals (SDGs).”
In his concluding remarks, MD & CEO thanked all the stakeholders including customers, promoters and shareholders for their continued trust and support. “The trust and confidence of our stakeholders continue to inspire us as we are on course to accelerate the next phase of our growth journey with renewed focus and commitment”, he said.
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