Financial Performance Highlights

Q2 FY27 Performance:

  • Net Profit: ₹546 crores, representing 29% sequential growth (QoQ) and double-digit year-over-year (YoY) growth
  • Operating Profit: ₹789 crores, showing 27% YoY growth and 12% QoQ growth
  • Operating Income: Grew by over 6% sequentially and 14.5% YoY
  • Operating Expenditure: Controlled increase of 2% QoQ and 6.5% YoY
  • Cost to Income Ratio: 56.57% for the quarter, showing substantial moderation on both sequential and YoY basis

Half-Year FY27 Performance:

  • Operating Profit: ₹1,492 crores, recording YoY growth of over 15%
  • Net Interest Margin (NIM): 3.22% for the half year
  • Return on Assets (RoA): 1.07% for the quarter (20 bps QoQ improvement)
  • Return on Equity (RoE): 13.68% for the quarter (over 250 bps QoQ improvement)

Business Growth Metrics

Total Business: ₹3.10 lakh crore as of September 30, 2026, representing 19.4% YoY growth

Deposits:

  • YoY growth: 16.3%
  • YTD growth: Approximately 7% (against full-year guidance of 10%)
  • CASA Ratio: 41.97% as of September 30, 2026 (broadly maintained at around 42%)
  • Cost of Deposits: 4.85% for the quarter

Advances:

  • YoY growth: 23.7%
  • RAM (Retail, Agriculture, MSME) portfolio contributed entire net incremental growth during the quarter
  • More than 60% of net incremental credit YTD contributed by RAM portfolio

RAM Segment Breakdown:

  • Agricultural Advances: 7.62% sequential growth, ~17% YoY growth, double-digit YTD growth
  • Retail Advances: 3.90% sequential growth
  • Auto Loans: Over 25% YoY growth (best performing retail segment)
  • Housing Loans (ROI Division): Double-digit YoY growth

Asset Quality Metrics

Slippage Ratio: Annualized Gross Slippage Ratio of 0.4% for the half-year

  • Gross Slippages in absolute amount halved compared to corresponding period last year

Asset Quality (as of September 30, 2026):

  • Gross NPA (GNPA): 2.23% (decadal best)
  • Net NPA (NNPA): 0.51% (decadal best)
  • Provision Coverage Ratio (PCR): 91.76% (improved from 90.53% as of June 30, 2026)

Capital Adequacy

  • Capital Adequacy Ratio: 16.57% as of September 30, 2026
  • CET 1: 13.88%
  • Fundraising Plans: ₹1,000 crores equity capital and ₹500 crores debt capital to be raised at opportune time

Yield and Margin Analysis

  • Yield on Advances: 8.55% for the quarter (broadly flat sequentially)
  • Expected improvement in yield from Q3 onwards due to increasing RAM contribution and recent repo rate hike
  • Expected moderation in Cost of Deposits due to easing bulk deposit rates, positive CASA inflows in Q2, and reduction in Term Deposit rates
  • NIM expected to improve from current levels

Macroeconomic Context

  • Indian economy grew 7.8% during Q1 FY27
  • IMF revised India's GDP growth forecast for 2026-27 to 7% from 6.4% earlier
  • Geopolitical uncertainties persisted with re-escalation of conflict in West Asia affecting energy prices and inflationary concerns

Revised FY27 Guidance

  • Credit growth: 14%+
  • Deposit growth: 12%+
  • CASA: 42%+
  • NIM: Will improve from current levels
  • RoA: 1.20%
  • GNPA: Below 2%

Access to Materials

Audio recording and investor briefing materials accessible at: https://jkb.bank.in/investor/stockExchangeIntimation/investorrelations