Financial Performance Overview

Jammu and Kashmir Bank reported a net profit of ₹424.18 crore for the quarter ended June 30, 2026 (Q1 FY2027). The Bank's total business crossed the historic milestone of ₹3 trillion, reaching ₹303,923 crore as of June 30, 2026.

Business Growth Metrics

  • Advances: Grew by 25% year-on-year to ₹130,503 crore
  • Deposits: Increased by 17% year-on-year to ₹173,420 crore
  • Total Business: Registered healthy growth of over 20% year-on-year

Operating Performance

  • Net Interest Income (NII): Increased by 2% year-on-year to ₹1,497 crore from ₹1,465 crore in corresponding period last year
  • Net Interest Margin (NIM): Stood at 3.28%
  • Operating Profit: Grew by 4.5% year-on-year to ₹703 crore
  • Cost-to-Income Ratio: Improved to 58.90% from 60.75% year-on-year, demonstrating operational efficiency
  • Yield on Advances: Improved sequentially to 8.56%

Asset Quality

  • Gross Non-Performing Assets (GNPA):
  • Declined to 2.37% from 2.50% sequentially (March 31, 2026)
  • Improved from 3.50% year-on-year (June 2025)
  • Net Non-Performing Assets (NNPA): Improved to 0.60% from 0.64% sequentially
  • Provision Coverage Ratio (PCR): Maintained at 90.53% compared to 90.09% last year
  • Gross Slippage Ratio: Below 0.5% (annualized) for June quarter

Capital Adequacy

  • Capital Adequacy Ratio (CRAR): Improved to 16.67% year-on-year from 15.98% last year
  • The Bank noted it remains comfortably above regulatory requirements

Management Commentary

MD & CEO Amitava Chatterjee highlighted several key points:

Business Growth: "Crossing the landmark milestone of Rs 3 trillion in total business marks another defining moment in the Bank's transformation journey. It reflects not merely scale but the deep trust of our customers and the consistent execution of our growth strategy."

Operational Performance: "Driven by robust business expansion and continued improvement in asset quality, we have begun the financial year with our core business fundamentals remaining strong while witnessing sequential growth in deposits in first quarter for the first time in last 6 years. Yet the industry-wide phenomenon of elevated funding costs and sluggish low-cost deposit mobilization pressured margins weighing on profitability during the quarter."

Strategic Outlook: "This quarter's performance should be placed in the context of our long-term strategic journey rather than viewed solely through the prism of short-term profitability. The choices we have made over the past one year or so were deliberate, disciplined and future-oriented, with a clear focus on accelerating business growth, strengthening our liability franchise and reinforcing the balance sheet."

Asset Quality: "The sustained improvement in our asset quality reflects years of disciplined underwriting, robust credit monitoring, focused recovery efforts and a strong risk management framework."

Capital Position: "Our strong capital base coupled with the approvals we have for further capital raising provide us adequate headroom and flexibility to support the next phase of our growth journey."

Future Strategy

The Bank emphasized its commitment to:

  • Balanced, customer-centric and technology-led growth
  • Expanding presence across the country
  • Creating enduring value for all stakeholders
  • Maintaining prudent capital cushion to tide over future challenges
  • Supporting quality credit growth while preserving long-term financial stability