J&K Bank Q1 net profit rises 17% YoY to Rs 484.84 cr

Excelsior Correspondent

SRINAGAR, July 25: Jammu & Kashmir Bank today posted a profit after tax (PAT) of Rs 484.84 cr for the April–June quarter of the current financial year (CFY), registering a 16.7% year on year (YoY) growth from Rs 415.49 cr reported in the same period last year.
The Bank announced its Q1 results after the Board of Directors approved the quarterly numbers at a meeting held at the Bank’s Corporate Headquarters.
Net Interest Income (NII) of the Bank grew by 7% YoY to Rs 1465.43 crore, while other income rose 29% to Rs 250.30 crore from Rs 194.10 crore. Operating profit increased by 13% to Rs 672.84 crore. Return on Assets (RoA) improved to 1.17% from 1.08% YoY, while Net Interest Margin (NIM) stood at 3.72%, down from 3.86% in Q4 FY2025. The Cost-to-Income Ratio also improved to 60.78%.
MD & CEO Amitava Chatterjee attributed the strong performance to operational resilience despite business disruptions caused by the Pahalgam terror attack and its aftermath. He highlighted that profitability was impacted by a one-time impairment provision of Rs 87 crore toward investment in J&K Grameen Bank, following its merger with Ellaquai Dehati Bank on April 30, 2025. “Excluding this non-recurring impact, our YoY profit growth would exceed 30%,” he stated.
Deposits of the Bank rose 12% YoY to Rs 1,48,542 crore, while net advances increased by 6.06% to Rs 1,01,230 crore. The CASA ratio stood at 45.71%. The Bank is expanding its footprint across India, focusing on strategic tie-ups, branch expansion, and digital investments.
Gross NPA reduced by 41 basis points YoY to 3.50%, while Net NPA stood at 0.82%. The NPA Coverage Ratio remained robust at over 90. The Bank’s Capital Adequacy Ratio stood at 15.98%.
Chatterjee assured that the Bank remains fundamentally strong with ample liquidity and capital to support future growth. He reiterated the commitment to reducing GNPA to around 3% by the end of the financial year through prudent lending and digital monitoring tools.

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