Gross advances rose 17.3 per cent year-on-year to ₹1.16 trillion, driven by growth in retail, SME and agriculture portfolios, while deposits rose 10.6 per cent to ₹1.56 trillion as of December 31, 2025. | Photo credit: SmileStudioAP
Jammu & Kashmir Bank reported a 10.4 percent year-on-year increase in net profit for the October-December quarter, supported by improved asset quality, higher advance growth and stable margins.
Net profit rose to ₹586.73 crore in Q3 FY26 from ₹531.51 crore a year earlier, while profit grew 18.7 percent quarter-on-quarter. For the first nine months of the financial year, net profit rose 4.5 per cent to ₹1,565.68 crore, the bank said after the board approved the results at a meeting in Jammu.
Net interest margin improved to 3.62 per cent during the quarter, while net interest income rose 3.8 per cent sequentially to ₹1,488.88 crore. Other income rose 15.3 per cent year-on-year to ₹279.46 crore. The cost-to-income ratio improved to 55.88 percent, while the return on assets for the nine-month period was 1.23 percent.
Gross non-performing assets fell to 3 per cent from 4.08 per cent a year earlier, while net NPAs fell to 0.68 per cent from 0.94 per cent. The coverage ratio of the provisions was 90.46 percent.
Managing Director and CEO Amitava Chatterjee said the bank remained on track to post record profits for the fourth consecutive year despite economic disruptions. “Even as our core region has faced significant challenges that extend beyond the banking sector, the quality of the Bank’s assets has continued to steadily improve,” he said.
Gross advances rose 17.3 per cent year-on-year to ₹1.16 trillion, driven by growth in retail, SME and agriculture portfolios, while deposits rose 10.6 per cent to ₹1.56 trillion as of December 31, 2025.
The bank’s capital adequacy ratio under Basel III stood at 15 per cent, with a proposed capital increase of ₹1,250 crore expected to support future lending.
“With our CAR at 15% – which will be further supplemented with internal provisioning based on net profit for the current fiscal – we are well capitalized to expand our lending activities as per our business plan,” Chatterjee said.
He said the board-approved capital raise of ₹1,250 crore will enhance our capital adequacy and comfortably protect us to support calibrated business expansion in key sectors.
“It will enhance our ability to absorb risk, while reinforcing our long-term focus on maintaining asset quality, improving profitability and creating lasting value for our shareholders,” he added.
Published on January 21, 2026
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