Jammu and Kashmir Bank
Asset quality improves: The bank has maintained stable asset quality in Q1FY2026.
The fresh slippages of loans stood at Rs 274 crore in Q1FY2026 compared with 198 crore in previous quarter and Rs 174 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 106 crore, upgradations at Rs 89 crore and the write-off of loans was at Rs 46 crore in Q1FY2026. The standard restructured loan book of the bank stood at Rs 410 crore end June 2025 compared to Rs 544 crore a quarter ago. Provision coverage ratio was steady at 90.09% at end June 2025 compared to 90.28% a quarter ago and 91.57% a year ago. The capital adequacy ratio of the bank stood at 16.0% with Tier I ratio at 13.7% at end June 2025. The risk weighted assets of the bank has increased 6% YoY to Rs 101275 crore end June 2025,| Asset Quality Indicators: J & K Bank | |||||||
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| Jun-25 | Mar-25 | Dec-24 | Sep-24 | Jun-24 | Variation | |
| QoQ | YoY | ||||||
| Gross NPA (Rs Crore) | 3638.19 | 3604.84 | 4041.04 | 3916.26 | 3857.59 | 1 | -6 |
| Net NPA (Rs Crore) | 829.02 | 818.07 | 898.08 | 813.39 | 727.58 | 1 | 14 |
| % Gross NPA | 3.50 | 3.37 | 4.08 | 3.95 | 3.91 | 13 | -41 |
| % Net NPA | 0.82 | 0.79 | 0.94 | 0.85 | 0.76 | 3 | 6 |
| % PCR | 90.09 | 90.28 | 89.67 | 90.54 | 91.57 | -19 | -148 |
| % CRAR - Basel III | 15.98 | 16.29 | 15.09 | 14.99 | 15.07 | -31 | 91 |
| % CRAR - Tier I - Basel III | 13.68 | 13.96 | 12.71 | 12.70 | 12.81 | -28 | 87 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | |||||||
Business Highlights:
Business growth ease: The business of the bank has increased 9% YoY to Rs 252581 crore end June 2025, driven by 6% growth in advances to Rs 104039 crore. Deposits rose 12% to Rs 148542 crore at end June 2025.
CASA deposits ratio declines: The CASA deposits of the bank increased 3% YoY to Rs 67901 crore at end June 2025. The current account deposits increased 7% to Rs 14614 crore, while saving account deposits rose 2% to Rs 53287 crore end June 2025. The CASA ratio declined to 45.7% at end June 2025 compared to 49.8% at end June 2024, while eased from 47.0% a quarter ago. The term deposits have increased 21% to Rs 80641 crore end June 2025.
Loan growth slows due to flat corporate book: Advances growth was driven by retail loans rising 7% YoY to Rs 40701 crore at end June 2025, while credit to agriculture increased 20% to Rs 11347 crore and MSME 3% to Rs 21283 crore at end June 2025. The corporate credit was flat yoy at Rs 30709 crore end June 2025.
Investment book of the bank increased 29% YoY to Rs 42758 crore at end June 2025. The SLR book moved up 18% to Rs 33210 crore, while non SLR book surged 96% to Rs 9548 crore at end June 2025. The AFS book galloped 50% to Rs 14186 crore, while HTM book rose 15% to Rs 26468 crore at end June 2025. The duration of the overall investment portfolio stood at 3.45 years end June 2025 compared with 3.23 years at end June 2024.
Margins decline: The bank has shown 17 bps YoY jump in cost of deposits to 4.83%, while yield on advances declined 15 bps YoY to 9.35% in Q1FY2026. NIM declined 14 bps YoY and 16 bps qoq to 3.72% in Q1FY2026.
Branch expansion: The bank has network of 1019 branches and 1424 ATM`s end June 2025.
Book value of the bank stood at Rs 123.0 per share at end June 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 115.1 per share at end June 2025.
Quarterly Performance
NII growth ease as NIM declines: Bank has recorded 9% increase in the interest earned at Rs 3268.27 crore, while interest expenses increased 11% to Rs 1802.84 crore in Q1FY2026. NII improved 7% to Rs 1465.43 crore in the quarter ended June 2025.
Healthy growth in non-interest income: Bank has posted 7% growth in core fee income to Rs 56 crore, while the recoveries and other income jumped 70% to Rs 206 crore. The bank has witnessed losses of Rs 12 crore in the treasury segment due to one-time impairment provisions of Rs 87.47 crore on investment provisions in J&K Grameen Bank. The overall non-interest income increased 29% to Rs 250.30 crore in the quarter ended June 2025.
Expenses ratio improves: The operating expenses of the bank increased 8% to Rs 1042.89 crore, as other expenses moved up 37% to Rs 381.99 crore, while employee expenses declined 4% to Rs 660.9 crore in Q1FY2026. Cost to income ratio improved to 60.8% in Q1FY2026 compared with 62.0% in Q1FY2025, helping the Operating Profit to increase 13% to Rs 672.84 crore.
Provisions and contingencies rise: The bank has shown increase in provisions to Rs 15.09 crore. The loan loss provisions rebounded to Rs 33.73 crore, while the bank has written back investment provisions of Rs 1.73 crore and standard asset provisions of Rs 18.94 crore in Q1FY2026.
Effective tax rate declined to 26.3% in Q1FY2026 from 32.1% in Q1FY2025. Net Profit rose by 17% YoY to Rs 484.84 crore during quarter ended June 2025.
Financial Performance FY2025:
Bank has posted 18% increase in net profit to Rs 2082.46 crore in the year ended March 2025 (FY2025). The net interest income increased 11% to Rs 5793.82 crore, while non-interest income moved up 38% to Rs 1136.81 crore, pushing up net total income by 15% to Rs 6930.63 crore in FY2025. The operating expenses increased 7% to Rs 4000.84 crore, while provision and contingencies were written back amounting to Rs 3.91 crore. Profit before tax increased 23% to Rs 2933.70 crore in FY2025. The cost-to-income ratio improved to 57.7% in FY2025 compared to 62.2% in FY2024. An effective tax rate rose to 29.0% in FY2025 compared to 25.9% in FY2024. The net profit has increased 18% to Rs 2082.46 crore in FY2025.| J & K Bank: Results | ||||||
| Particulars | 2506 (3) | 2406 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 3268.27 | 2994.38 | 9 | 12535.86 | 11212.37 | 12 |
| Interest Expended | 1802.84 | 1625.16 | 11 | 6742.04 | 6008.68 | 12 |
| Net Interest Income | 1465.43 | 1369.22 | 7 | 5793.82 | 5203.69 | 11 |
| Other Income | 250.30 | 194.10 | 29 | 1136.81 | 825.48 | 38 |
| Net Total Income | 1715.73 | 1563.32 | 10 | 6930.63 | 6029.17 | 15 |
| Operating Expenses | 1042.89 | 968.65 | 8 | 4000.84 | 3752.29 | 7 |
| Operating Profits | 672.84 | 594.67 | 13 | 2929.79 | 2276.88 | 29 |
| Provisions & Contingencies | 15.09 | -17.48 | -186 | -3.91 | -107.69 | -96 |
| Profit Before Tax | 657.75 | 612.15 | 7 | 2933.70 | 2384.57 | 23 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 657.75 | 612.15 | 7 | 2933.70 | 2384.57 | 23 |
| Provision for tax | 172.91 | 196.66 | -12 | 851.24 | 617.30 | 38 |
| PAT | 484.84 | 415.49 | 17 | 2082.46 | 1767.27 | 18 |
| EPS*(Rs) | 17.6 | 15.1 | 18.9 | 16.0 | ||
| Equity | 110.1 | 110.1 | 110.1 | 110.1 | ||
| Adj BV (Rs) | 115.1 | 96.8 | 110.2 | 92.2 | ||
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 1, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
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