J&K Bank’s Q4 Net Profit Climbs 37%, Fueled by Consistent NII and Reduced Asset Strain
1 min readIn 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.
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.
On May 5, shares of Jammu and Kashmir Bank Ltd closed at ₹134.65, up ₹3 or 2.28%, on the BSE.
