Srinagar, Jul 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.
Performance Highlights Net Interest Income (NII) for the quarter grew 7% YoY to Rs 1465.43 Cr, while the other income jumped 29% to Rs 250.30 Cr from Rs 194.10 Cr recorded last year.Return on Assets (RoA) for the quarter improved to 1.17% YoY from 1.08%, while Net Interest Margin (NIM) for the quarter stood at 3.72% as against 3.86% recorded in Q4FY2025. Bank’s Cost to Income Ratio also improved to 60.78% YoY.Operating profit witnessed a 13% YoY increase to Rs 672.84 Cr from Rs 594.67 Cr recorded for the corresponding period last year.Commenting on the numbers, MD & CEO Amitava Chatterjee said, “Despite tough situation on the ground due to the Pahalgam terror attack along with its aftermath that affected business activity and credit offtake in key geographies well into June, we have been able to deliver a healthy bottom line growth of around 17%.”“The sudden decline in NIM should be viewed against the broader environment wherein repo rate cuts announced by the regulator impacted the margins,” he added.“Pertinently, the profitability for Q1 is subdued on account of impairment provision of Rs 87 Cr made in this quarter towards our investment in the RRB – Jammu and Kashmir Grameen Bank, necessitated by amalgamation of Ellaquai Dehati Bank with the erstwhile J&K Grameen Bank w.e.f. 30th April 2025. Excluding this non-recurring impact, our profitability growth would be upwards of 30% YoY. This one-time provision has also impacted our ROA and ROE, however, on a normalised basis, both metrics remain broadly in line with our expectations,” he added.“Having said that, we remain fundamentally strong, with adequate capital and liquidity buffers, and are already seeing signs of accelerating credit off-take on the ground. With improving conditions on the ground, we are sure to gain growth momentum in the coming quarters”, asserted MD & CEO.
Business GrowthThe Bank’s deposits rose 12% YoY to Rs 148542 Cr from Rs 132574 Cr recorded in Q1 last FY, while the net Advances grew 6.06% YoY, reaching Rs 101230 Cr as against Rs 95450 Cr. The Bank’s CASA ratio stood at 45.71% as on June 30, 2025.MD & CEO further remarked, “Regarding business growth, we are confident in our long-term strategy as we are actively diversifying and scaling up our Rest of India operations by opening more branches in strategic business centres, entering builder tie-ups, and strengthening partnerships with DSAs.”“Going forward, our focus will also remain deepening relationships in core geographies through sufficient lending to agriculture, industry and youth entrepreneurship; and investing further in digital capabilities and operational efficiency,” he added.
Asset QualityGross Non-Performing Assets (GNPA) of the Bank reduced by 41 bps YoY to 3.50% (from 3.91% a year ago), while Net NPA stood at 0.82%. The Bank’s NPA Coverage Ratio remained strong at above 90%.On asset quality, MD & CEO remarked, “On the asset quality front, as per our annual guidance, we plan to bring it to around 3% by the end of CFY through prudent lending, robust recovery mechanisms, and proactive monitoring using early warning systems and digital tools like our NPA tracker.”
Capital AdequacyThe Bank’s Capital Adequacy Ratio (CAR) stood at 15.98%, providing a comfortable buffer for future growth.Regarding the capital position, MD & CEO said, “With CAR almost 16%, we remain well capitalised and have an enabling board approval for raising further capital to fund our growth plans and seize emerging opportunities across our business segments.”
