Jammu and Kashmir Bank reported an 11% decline in net profit to ₹494.11 crore in the July-September quarter of the current financial year. However, its earnings for the first half increased slightly to ₹978.95 crore. The bank’s total income rose to ₹3,447 crore in the quarter under review, and its net interest income (NII) for the first half was marginally up by 3.4% year-on-year at ₹2,899.43 crore.
Despite facing challenges such as the Pahalgam incident and floods, the bank’s MD and CEO, Amitava Chatterjee, expressed optimism about meeting its annual guidance. The bank made a total provisioning of ₹180 crore towards Jammu and Kashmir Grameen Bank during the first two quarters of the current financial year. Excluding this impact, the bank’s H1 profitability would be upwards of 15% year-on-year.
The bank’s asset quality showed improvement, with a decline in gross NPA ratio to 3.32% and a decrease in net NPA ratio to 0.76%. The Provision Coverage Ratio (PCR) remained above 90%, and the return on assets (RoA) stood at 1.17% for the half year. The bank’s deposits witnessed a growth of 10.23% year-on-year, and net advances increased by 9.38% to ₹10,5153 crore.
Chatterjee attributed the bank’s steady performance to its operational discipline and commitment to sustained, quality growth. The bank’s Capital Adequacy Ratio (CAR) stood at 15.27%, and it remains well-capitalized to support future growth opportunities. The bank is expanding its operations beyond Jammu and Kashmir, partnering with top-tier corporates across India, and sharpening its focus on building a gainful niche in the retail landscape outside the state.
Overall, the bank’s performance in the first half of the financial year affirms its confidence in achieving its annual guidance growth numbers. With a strong foundation of people, processes, and technology, the bank is steadily strengthening its pillars to ensure efficiency, resilience, and excellence in its operations. Despite the challenges faced, the bank’s MD and CEO remains optimistic about its progress and is committed to meeting its annual guidance.