J&K Bank jumps after Q2 PAT rises 2% QoQ to Rs 494 crore
Reflecting steady core operations, the bank's net interest income (NII) for H1 was marginally up by 3.4% year-on-year at Rs 2,899.43 crore, while for Q2 NII stood at Rs 1,433.99 crore. In line with its market guidance, the bank maintained its NIM at 3.64% during H1 FY26. The bank's other income for H1 FY26 was at Rs 405.19 crore, while the cost-to-income ratio for the half year stood at 60.80%.
The bank showed improved asset quality with gross NPA ratio decreasing to 3.32% and net NPA ratio to 0.76%. Deposits grew by 10.2% to Rs 1,52,030.16 crore, and net advances increased by 9.4% to Rs 1,05,153.30 crore. The bank's capital adequacy ratio stood at 15.27%, with the CET1 ratio at 12.11%. Management emphasized resilience and strategic focus on sustainable growth.
The bank's CASA (current account savings account) ratio stood at 45.89% in Q2 and continues to be one of the highest in the industry.
Amitava Chatterjee, MD & CEO said, ?In spite of widespread disruptions during the first quarter following the Pahalgam incident and the extensive damage caused by floods in the second quarter, the overall growth we have recorded is both encouraging and reassuring.? ?Even though profitability for Q2 was moderated due to an additional impairment provision of Rs 92 Cr made during the quarter in compliance with regulatory requirements, the performance is better than what was anticipated under the challenging circumstances,? he added.
Notably, the Bank has made a total provisioning of Rs 180 crore towards Jammu and Kashmir Grameen Bank during the first two quarters of the current financial year. Excluding the impact, the Bank?s H1 profitability would be upwards of 15% YoY.?
J&K Bank offers banking services under the three major divisions as support services, depository services, and third-party services.
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