J&K Bank Q2 Net Profit Surges 28.8% QoQ to ₹546 Cr; Business Grows 19.4%
J&K Bank's Q2 net profit rose 28.8% QoQ to ₹546.36 crore and 10.6% YoY. Total business grew 19.4% to ₹3.10 lakh crore. Gross advances increased 23.72% to ₹1.33 lakh crore, and deposits grew 16.30% to ₹1.76 lakh crore. Asset quality improved with Gross NPA at 2.23% and Net NPA at 0.51%. MD & CEO Amitava Chatterjee expressed confidence in sustaining growth.
The announcement details strong financial performance with substantial profit growth, improved asset quality, and robust business expansion. These factors are material to investors and stakeholders, indicating positive momentum for the bank.
The bank reported significant year-on-year and quarter-on-quarter growth in net profit, along with improvements in key financial metrics like Net Interest Income, other income, and operating profit. Asset quality also showed marked improvement, reaching decadal bests. The management commentary is optimistic about future performance.
The Jammu & Kashmir Bank Limited (J&K Bank) has announced its reviewed financial results for the quarter and half-year ended September 30, 2026. The bank reported a net profit of ₹546.36 crore for Q2 FY27, marking a significant increase of 28.8% compared to the previous quarter (₹424.18 crore in Q1 FY27) and a 10.6% rise year-on-year from ₹494.11 crore in Q2 FY26.
The Bank's Net Interest Income (NII) grew by 5% year-on-year to ₹1502 crore during the quarter. Other income doubled year-on-year to ₹314.90 crore, a 47% sequential increase. Operating profit for the half-year rose over 15% year-on-year to ₹1,492 crore, with a controlled operating expenditure showing only a 1.5% YoY growth for the half-year. The Cost-to-Income Ratio improved to 56.57% from 60.79% in the corresponding quarter last year. Return on Assets (RoA) increased by 20 basis points sequentially to 1.07%.
MD & CEO Amitava Chatterjee commented on the performance, highlighting the strengthening earnings and recovery in RoA. He outlined the focus for the second half of the fiscal year on sustaining core income growth, strengthening recurring revenue streams, enhancing recoveries, and addressing funding costs.
In terms of asset quality, the bank achieved decadal best metrics. The Gross NPA ratio declined by 109 basis points year-on-year to 2.23%, and the Net NPA ratio improved to 0.51% from 0.76% a year ago. The Provision Coverage Ratio (PCR) stood at 91.76% as of September 30, 2026, a sequential improvement from 90.53% on June 30, 2026.
Mr. Chatterjee noted the improvement in GNPA ratio and Gross Slippage Ratio, attributing it to disciplined underwriting and proactive credit monitoring. The focus remains on sustaining this momentum and building a resilient balance sheet.
Total business grew by 19.38% year-on-year to ₹3,10,347 crore as of September 30, 2026. Gross advances increased by 23.72% to ₹1,33,551 crore, while total deposits grew by 16.30% to ₹1,76,796 crore. Over 60% of the net incremental credit YTD was contributed by the Retail, Agriculture, MSME (RAM) segment. Current Account and Savings Account (CASA) deposits rose by 1.73% QoQ, maintaining the CASA Ratio at 41.97%.
Mr. Chatterjee reiterated the bank's Vision 2030 business aspiration of ₹5 lakh crore, emphasizing strengthening the deposit franchise, deepening relationships in Jammu and Kashmir and Ladakh, and selective expansion.
The Bank's Capital Adequacy Ratio (CRAR) was reported at 16.57% as of September 30, 2026, compared to 15.27% a year earlier.
MD & CEO Amitava Chatterjee expressed confidence in improving performance in the second half, aiming to translate progress into sustained profitability and greater value for stakeholders, aligning with annual commitments and Vision 2030 goals.
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