In terms of asset quality, gross non-performing assets (GNPA) were at 2.50% for the March quarter, down from 3% in the prior quarter. Net non-performing assets (NNPA) decreased to 0.64% from 0.68% on a quarter-over-quarter basis. The provision coverage ratio remained robust at over 90%.
The capital adequacy ratio was recorded at 16.55% as of March 31, 2026. The bank indicated that it might consider raising capital in the current year ahead of the expected credit loss implementation starting April 1, 2027.
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FY26
For FY26, the bank reported its highest annual profit of ₹2,363.47 crore, reflecting a 13% year-on-year increase from ₹2,082.46 crore in FY25. This performance occurred despite a one-time impairment provision of ₹179 crore related to its investment in J&K Grameen Bank during the first half of the fiscal year.
Net interest income for FY26 saw a slight increase to ₹5,875.77 crore, affected by lower repo rates. The net interest margin for the year was 3.60%. Return on assets (RoA) improved to 1.78% for the quarter, up from 1.44% a year earlier, while FY26 RoA was 1.37%. Return on equity (RoE) for the year was noted at 16.85%. The cost-to-income ratio improved for the fourth consecutive year, reaching 56.18%.
Total business increased by 13.61% year-on-year to ₹2,90,341 crore as of March 31, 2026. Total deposits rose by 11.30% to ₹1,65,354 crore, while net advances surged by 18% to ₹1,22,641 crore from ₹1,04,198 crore. CASA deposits grew by 8.07% to ₹75,478 crore, with the CASA ratio climbing to 45.65% from 44.10% in the previous quarter.
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On May 5, shares of Jammu and Kashmir Bank Ltd closed at ₹134.65, up ₹3 or 2.28%, on the BSE.
