Jammu and Kashmir Bank has reported a strong financial performance for the second quarter of the financial year 2026–27, with net profit increasing 28.8% quarter-on-quarter and 10.6% year-on-year to Rs 546.36 crore for the quarter ended September 30, 2026. The latest results reflect improved earnings, stronger business growth and continued progress in the bank’s asset quality.
The bank reported a net profit of Rs 424.18 crore in the first quarter of FY 2026–27 and Rs 494.11 crore in the corresponding quarter of the previous financial year. The latest figures were announced after the Board of Directors reviewed and approved the quarterly and half-yearly financial results at a meeting held at the bank’s corporate headquarters on October 22, 2026.
Stronger Earnings Drive Quarterly Performance
J&K Bank recorded a 5% year-on-year increase in Net Interest Income (NII), reaching Rs 1,502 crore during the quarter. Other income delivered an even stronger performance, more than doubling to Rs 314.90 crore from Rs 153.76 crore in the same quarter last year. It also registered a 47% increase compared with the previous quarter.
The bank’s focus on managing operating expenses also contributed to improved profitability. Operating expenditure grew by just 1.5% during the first half of the financial year on a year-on-year basis, while half-yearly operating profit increased by more than 15% to Rs 1,492 crore.
The improvement was also reflected in the cost-to-income ratio, which declined to 56.57% from 60.79% in the corresponding quarter last year. Meanwhile, the bank’s Return on Assets (ROA) increased by 20 basis points sequentially to 1.07%, indicating stronger returns from its asset base.
Commenting on the results, Managing Director and CEO Amitava Chatterjee said the growth in net interest income, doubling of other income and more than 26% year-on-year increase in quarterly operating profit represented an encouraging improvement in the bank’s earnings performance.
He added that the recovery in Return on Assets to above 1% highlighted the progress made since the June quarter. Looking ahead, the bank intends to sustain core income growth, strengthen recurring revenue streams, improve recoveries and manage funding costs by building deeper deposit relationships.
Asset Quality Reaches Its Best Levels in a Decade
One of the most significant developments in J&K Bank’s latest financial results is the continued improvement in asset quality.
The bank’s Gross Non-Performing Assets (GNPA) ratio declined to 2.23% as of September 30, 2026, marking a reduction of 109 basis points compared with the same period last year. The ratio also improved by 14 basis points from the previous quarter.
Net Non-Performing Assets (NNPA) declined to 0.51%, compared with 0.76% a year earlier. Both indicators reflect a substantial improvement in the bank’s management of stressed assets and credit risks.
The Provision Coverage Ratio (PCR) also reached a decade-high level of 91.76%, up from 90.53% at the end of June 2026. A higher provision coverage ratio indicates that the bank has made stronger provisions against its identified non-performing assets.
Amitava Chatterjee attributed the improvement to disciplined lending practices and proactive credit monitoring. He also highlighted the annualised Gross Slippage Ratio of just 0.4% for the first half of the financial year as evidence of the bank’s continued efforts to maintain lending quality while expanding its loan book.
The bank plans to sustain this progress during the second half of the financial year, with a continued focus on responsible lending, risk management and building a resilient balance sheet.
Total Business Crosses Rs 3.10 Lakh Crore
J&K Bank continued to expand its business during the quarter, with total business increasing by 19.38% year-on-year to Rs 3,10,347 crore as of September 30, 2026.
Gross advances grew by 23.72% to Rs 1,33,551 crore, compared with Rs 1,07,943 crore in the corresponding period last year. Total deposits also recorded healthy growth, rising 16.30% to Rs 1,76,796 crore.
The bank’s Retail, Agriculture and MSME (RAM) segment played an important role in this expansion, contributing more than 60% of net incremental credit on a year-to-date basis. This highlights the growing contribution of individual borrowers, agricultural activities and micro, small and medium-sized enterprises to the bank’s lending portfolio.
Current Account and Savings Account (CASA) deposits increased by 1.73% quarter-on-quarter. As a result, the bank maintained its CASA ratio at approximately 42%, reaching 41.97% as of September 30, 2026.
CASA deposits are an important source of relatively low-cost funding for banks. Maintaining a healthy CASA ratio can help manage funding expenses and support lending activity.
According to Chatterjee, the bank’s nearly 20% annual business growth represents progress towards its Vision 2030 ambition of reaching total business of Rs 5 lakh crore.
He said strengthening the bank’s deposit base, deepening customer relationships across Jammu and Kashmir and Ladakh, and selectively expanding its presence in other parts of the country would remain central to this strategy. The bank also plans to continue investing in technology while maintaining personalised customer service and prudent lending practices.
Capital Position Strengthens Further
J&K Bank’s capital position also improved during the year, providing additional support for its lending and business expansion plans.
The bank reported a Capital Adequacy Ratio (CRAR) of 16.57% as of September 30, 2026, compared with 15.27% a year earlier. This indicates a stronger capital buffer to support lending opportunities and absorb potential financial risks.
Maintaining adequate capital is particularly important as banks expand their loan books, serve new customer segments and respond to changing economic conditions. J&K Bank’s improved capital ratio provides a stronger foundation for pursuing growth while maintaining a prudent approach to risk management.
Summing up the results, Chatterjee expressed confidence in the bank’s ability to build on its latest performance during the second half of the financial year.
He emphasised that the bank’s priority would be to translate business expansion and operational improvements into sustainable profitability and greater value for stakeholders. The bank also aims to widen opportunities for individuals and businesses through its financial services while progressing towards its longer-term Vision 2030 objectives.
J&K Bank’s Results Signal Continued Progress
J&K Bank’s second-quarter results present a combination of stronger profitability, rising advances, growing deposits and improved asset quality. The 28.8% sequential increase in net profit, decline in non-performing asset ratios and growth in total business highlight the progress made during the quarter.
For customers, businesses and communities across Jammu and Kashmir and Ladakh, the bank’s performance also matters because a financially stronger banking institution can play an important role in supporting entrepreneurship, agricultural activity, small businesses and household financial needs.
However, sustaining this momentum will depend on the bank’s ability to maintain healthy earnings, control funding costs, preserve lending quality and continue growing its deposit base. Its progress towards the Rs 5 lakh crore Vision 2030 business target will also be an important measure of its long-term performance.
As J&K Bank enters the second half of FY 2026–27, the focus will remain on turning quarterly gains into consistent growth, maintaining financial discipline and strengthening its role in the economic development of the regions and customers it serves.
Ultimately, the real significance of these results goes beyond the numbers. Sustainable banking growth is most meaningful when it builds confidence, supports local businesses, creates opportunities and helps communities move towards a more secure financial future.
