Net interest income rose 2 per cent to ₹1,497 crore from ₹1,465 crore a year earlier
| Photo Credit:
Andrii Yalanskyi
Jammu & Kashmir Bank reported a net profit of ₹424.18 crore for the quarter ended June 30, 2026, as advances and deposits grew strongly, while higher funding costs and weak low-cost deposit mobilisation weighed on margins.The bank’s advances rose 25 per cent year-on-year to ₹1.31 lakh crore, while deposits increased 17 per cent to ₹1.73 lakh crore. Total business crossed the ₹3 lakh crore milestone, rising more than 20 per cent to ₹3.04 lakh crore.Net interest income rose 2 per cent to ₹1,497 crore from ₹1,465 crore a year earlier, while net interest margin stood at 3.28 per cent.Operating profit increased 4.5 per cent year-on-year to ₹703 crore. The cost-to-income ratio improved to 58.90 per cent from 60.75 per cent, while yield on advances rose sequentially to 8.56 per cent.“Driven by robust business expansion and continued improvement in asset quality, we have begun the financial year with our core business fundamentals remaining strong,” Managing Director and Chief Executive Officer Amitava Chatterjee said.However, “elevated funding costs and sluggish low-cost deposit mobilisation pressured margins, weighing on profitability during the quarter,” he said.The bank’s gross non-performing asset (GNPA) ratio improved to 2.37 per cent at the end of June from 2.50 per cent at the end of March and 3.50 per cent a year earlier. Net NPA also improved to 0.60 per cent from 0.64 per cent in the previous quarter.The provision coverage ratio stood at 90.53 per cent, compared with 90.09 per cent a year earlier.The bank’s capital adequacy ratio improved to 16.67 per cent from 15.98 per cent a year earlier, remaining above regulatory requirements.The bank said it had approvals for further capital raising, giving it additional headroom to support future growth.Published on July 29, 2026
