J&K Bank FY2026 Net Profit Rises 13.5% to ₹2,363 Crore

Date: 22nd September, 2026

Financial Results (Standalone & Consolidated)

Standalone Financial Performance FY2026:

Total Income: ₹14,085.05 crore (FY2025: ₹13,666.22 crore)
Interest Earned: ₹13,145.20 crore (FY2025: ₹12,535.86 crore)
Other Income: ₹939.85 crore (FY2025: ₹1,130.36 crore)
Net Profit: ₹2,363.48 crore (FY2025: ₹2,082.46 crore) - 13.5% increase
EPS: ₹21.46 (FY2025: ₹18.91)
Operating Profit: ₹2,986.50 crore (FY2025: ₹2,929.79 crore)
Provisions and Contingencies: ₹28.62 crore (FY2025: negative ₹3.91 crore)

Quarterly Performance Q4 FY2026:

Total Income: ₹3,531.06 crore (Q4 FY2025: ₹3,613.53 crore)
Net Profit: ₹797.80 crore (Q4 FY2025: ₹584.54 crore) - 36.5% increase
EPS: ₹7.24 (Q4 FY2025: ₹5.31)

Asset Quality:

Gross NPA: ₹3,124.84 crore (2.50% of advances) vs ₹3,604.84 crore (3.37%) in FY2025
Net NPA: ₹785.13 crore (0.64% of advances) vs ₹818.07 crore (0.79%) in FY2025
Provision Coverage Ratio: 90.33% (excluding floating provision of ₹190.48 crore)

Capital Adequacy (Basel III):

CAR: 16.55% (FY2025: 16.29%)
CET1 Ratio: 13.54% (FY2025: 12.95%)
Tier 1 Ratio: 14.44% (FY2025: 13.96%)

Balance Sheet Position (31-Mar-2026):

Total Assets: ₹189,193.99 crore (FY2025: ₹169,468.47 crore)
Advances: ₹122,641.20 crore (FY2025: ₹104,198.28 crore)
Deposits: ₹165,342.45 crore (FY2025: ₹148,552.20 crore)
Investments: ₹40,821.86 crore (FY2025: ₹41,212.17 crore)
Net Worth: ₹15,045.86 crore (FY2025: ₹13,013.26 crore)

Consolidated Financials FY2026:

Total Income: ₹14,101.39 crore (FY2025: ₹13,681.57 crore)
Net Profit: ₹2,359.49 crore (FY2025: ₹2,081.79 crore)
Share in Associate Loss: ₹23.08 crore (J&K Grameen Bank)
Subsidiary Contribution: ₹4.10 crore profit (JKB Financial Services)

Emphasis of Matter:

1. Investment in Associate: ₹345.92 crore investment in Jammu & Kashmir Grameen Bank with ₹228.65 crore impairment provision recognized based on independent valuer's assessment per RBI Directions 2025

2. Reserve Transfer: ₹23.94 crore transferred from General Reserve to Statutory Reserve consequent to C&AG comments for FY2025 regarding prior period appropriation of ₹95.76 crore from Revaluation Reserve to General Reserve (FY2017-18 to FY2022-23)

3. Ladli Beti Scheme: Recovery of prior period interest of ₹131.72 crore (plus interim ₹18.28 crore) from government, with balance ₹46.08 crore booked as Recoverable from Government

4. Deferred Tax Asset: Recognition of DTA on excess provision for bad and doubtful debts over section 36(1)(viia) limit based on presumption of future write-off adjustment

Audit Scope:

Head Office, 2 Zonal offices, IBR Department and 84 branches audited by statutory auditors
956 branches/offices audited by branch auditors (66.16% of advances, 86.40% of deposits, 16.34% of NPAs)
Unmodified opinion issued

C&AG Comments (19-Aug-2026)

Financial Position:

Nostro Accounts: 11 Nostro accounts with ₹203.93 crore balance, but 20 mirror accounts showing discrepancy - reconciliation statement not prepared

Cash Flow Statement:

Investing Activities: Incorrect treatment of ₹310.81 crore revaluation reserve increase as 'cash inflow' when it should be non-cash item
Proper cash outflow should be only ₹158.52 crore (fixed asset purchases)

Disclosure Issues:

1. Accounting Policy: No disclosure of additional provisioning policy for CGTMSE/NCGTC covered advances despite previous year comments

2. Deferred Tax Policy Change: New policy adopted to recognize 100% DTA on disallowed provisions (vs previous 50%) increased DTA by ₹118.73 crore but not disclosed in notes or accounting policies

Compliance Issues:

Annual Report for FY2024-25 not placed before Parliament or UT Legislature as required under Sections 394-395 of Companies Act 2013
Report sent to J&K Finance Department but not to UT Ladakh despite GoI's 4.16% shareholding

Key Operational Highlights

Segment Performance (Standalone FY2026):

Treasury Operations: Revenue ₹3,594.34 crore, Profit ₹215.16 crore
Corporate/Wholesale Banking: Revenue ₹2,617.82 crore, Profit ₹1,781.07 crore
Retail Banking: Revenue ₹8,993.49 crore, Profit ₹1,884.18 crore
Other Banking Business: Revenue ₹102.61 crore, Profit ₹82.35 crore

Provisions and Contingencies:

Additional Provisions: ₹125.94 crore on sub-standard/doubtful accounts over regulatory requirements
CGTMSE/NCGTC Provisions: ₹163.90 crore additional provision
Fraud Provisions: ₹167.32 crore against 25 fresh fraud cases (₹170.54 crore involved, ₹3.22 crore recovered)

Penalties and Regulations:

RBI Penalties: ₹98.98 lakh levied during FY2026 for various compliance violations
GST Demand: ₹200.20 crore additional demand (total ₹8,330.86 crore for 2019-24 period) contested in High Court
PSLC Transactions: Purchased ₹200.05 crore worth of Priority Sector Lending Certificates

Employee Benefits:

Pension Liability: ₹72.50 crore estimated for family pension revision, amortized over 5 years as per RBI permission
New Labour Codes: ₹0.53 crore provision for contract employees' gratuity

Related Party Transactions (HY FY2026):

JKB Financial Services: Interest paid ₹0.04 crore, interest received ₹0.52 crore, other transactions ₹0.40 crore
J&K Grameen Bank: Interest paid ₹65.58 crore, interest received ₹0.35 crore, service charges ₹0.65 crore
Key Management Personnel: Total remuneration ₹1.98 crore

Dividend Declaration

No Dividend declared for FY2026
No write-off of intangible assets required under Banking Regulation Act Section 15(1)

Corporate Governance

Investor Complaints: 146 complaints received during FY2026, all resolved
CSR Expenditure: ₹45.66 crore spent (including ₹24.35 crore for ongoing projects)
Public Shareholding: 40.60% (44.70 crore shares)
Promoter Shareholding: 59.40% (65.41 crore shares) - fully unencumbered

Notes and Qualifications

Micro Enterprises Disclosure: Amounts payable to MSEs not disclosed pending system augmentation
Project Finance: ₹1,329.03 crore exposure to 23 projects under implementation
COVID Resolution: ₹170.66 crore exposure under resolution frameworks with ₹84.57 crore already slipped to NPA
Security Receipts: ₹226.02 crore held across various recovery ratings