J&K Bank’s Q2 Net Profit Rises 28.8% QoQ And 10.6% YoY To Rs 546 Crore

Supported by growth in earnings and further improvement in asset quality, J&K Bank today reported 28.8% rise quarter-on-quarter and 10.6% rise year-on-year in its net profit to Rs 546.36 Cr for the quarter (Q2) ended September 30, 2026, when compared with Rs 424.18 Cr and Rs 494.11 Cr recorded during Q1 FY 2026-27 and Q2 FY 2025-26 respectively. 

The Bank announced the financial results after its Board of Directors reviewed and approved the quarterly and half-yearly figures at a meeting held at the Bank’s corporate headquarters on 22nd October 2026.

Operating Performance

The Bank’s Net Interest Income (NII) rose 5% YoY during the quarter to Rs 1502 Cr. During the quarter, other income doubled to Rs 314.90 Cr YoY from Rs 153.76 Cr recorded in the corresponding quarter last year while also growing 47% sequentially.

With controlled operating expenditure, witnessing just 1.5% YoY growth for the half-year, the operating Profit for the half-year has also grown by over 15% YoY, being recorded at Rs.1,492 crores. The Cost-to-Income Ratio for the quarter has consequently witnessed substantial improvement, being recorded at 56.57% compared to 60.79% for the corresponding quarter last year. 

The Bank’s Return on Assets during the quarter jumped 20 bps sequentially and was recorded at 1.07%.

Commenting on the financial performance, MD & CEO Amitava Chatterjee said, “The growth in net interest income, doubling of other income and over 26% YoY increase in operating profit for this quarter mark an encouraging strengthening of our earnings performance. The recovery in Return on Assets to above 1% further underlines the improvement over the June quarter.”

“In Q1, we had emphasised building the business base and positioning the Bank for stronger earnings over time. This quarter’s operating performance represents progress in that direction. Our focus for the second half is on sustaining core income growth, strengthening recurring revenue streams and enhancing recoveries, while addressing funding costs through deeper deposit relationships. These priorities remain central to delivering our annual objectives and translating business expansion into sustainable profitability,” he added.

Asset Quality

With the Gross NPA ratio of the Bank declining substantially by 109 bps on a YoY basis to 2.23% and the Net NPA ratio also improving to 0.51% against 0.76% a year ago, the Bank has recorded decadal best asset quality metrics. The Bank’s Provision Coverage Ratio (PCR) has also recorded improvement in sequential terms and stood at 91.76% as on 30th September 2026 against 90.53% as on 30th June 2026, which is again a decadal best.

On the improvement in asset quality, MD & CEO Amitava Chatterjee commented, “The continuing improvement in our GNPA ratio by 14 bps QoQ to 2.23% - the lowest level in a decade – along with an annualised Gross Slippage Ratio of just 0.4% for the half-year, reflects the cumulative impact of our continued focus on disciplined underwriting and proactive credit monitoring mechanism even as we continue to expand our loan book.”

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“We remain focused on sustaining this momentum through the second half, progressing towards our annual asset-quality objectives and building a resilient balance sheet that supports the Bank’s long-term growth aspirations”, he added.

Business Growth

Continuing its business growth momentum, the Bank’s total business increased by 19.38% year-on-year to Rs 3,10,347 Cr as on September 30, 2026. 

Gross advances grew by 23.72% to Rs 1,33,551 Cr from Rs 1,07,943 Cr recorded a year ago, while total deposits increased by 16.30% to Rs 1,76,796 Cr. Notably, on a YTD basis, over 60% of the net incremental credit has been contributed by the Retail, Agriculture, and MSME (RAM) segment.

The Bank’s Current Account and Savings Account (CASA) deposits also rose by 1.73% QoQ. As a result, the Bank has been able to broadly maintain its CASA Ratio at around 42%, being recorded at 41.97% as on September 30, 2026.

Connecting the performance with the Bank’s longer-term direction, MD & CEO Amitava Chatterjee said, “With nearly 20% year-on-year growth taking our total business to Rs 3.10 lakh crore, we continue to build towards our Vision 2030 business aspiration of Rs 5 lakh crore.”

“Strengthening our deposit franchise, deepening relationships in Jammu and Kashmir and Ladakh, and selectively expanding across the country will remain central to this journey, supported by prudent lending and technology-led yet personalised customer service”, he added.

Capital Adequacy

The Bank remains well-capitalised to pursue quality lending opportunities while maintaining a prudent cushion against emerging risks with its Capital Adequacy Ratio (CRAR) at 16.57 % as on September 30, 2026, compared with 15.27% a year earlier. 

Summing up the results, MD & CEO Amitava Chatterjee said, “Driven by clear priorities and disciplined execution, we enter the second half with confidence that we will be able to further improve upon this performance.”

“Our endeavour is to translate this progress into sustained profitability and greater value for all stakeholders, while widening opportunities for the people and businesses we serve. This will guide us as we pursue our annual commitments and advance towards the larger institutional goals under Vision 2030”, he added.