J&K Bank Stays On Track; Q3 net profit up 10.4% YoY despite Pahalgam attack and floods: MD & CEO Amitav Chatterjee

Jammu and Kashmir Bank MD and CEO Amitav Chatterjee said on Tuesday that despite challenging conditions like the rate cut and the Pahalgam attacks and floods that disrupted the local economy, the bank remained firmly on track to deliver record profits for the fourth consecutive year.

J&K Bank announced its financial results for the third quarter, stating that net profit rose 18.7% quarter on quarter and 10.4% year on year to Rs. 586.73 crore, as against Rs. 531.51 crore as compared to Rs.

The bank’s board of directors approved the figures for the quarter and nine months during a meeting held at the bank’s divisional office in Jammu.

The bank’s net profit for the first nine months of FY 2025-26 rose 4.5% year-on-year to Rs. 1,565.68 crore, which is Rs. 1,497.92 crore as compared to Rs.

“Despite the rate cut, impairment provision for Grameen Bank and challenging circumstances, particularly the events of April 22, the Pehalgam attack, its aftermath and the floods that disrupted the local economy, the bank remains firmly on track to deliver record profits for the fourth consecutive year,” Chatterjee said.

The bank’s net interest margin for the quarter increased by 6 basis points to 3.62% quarter-on-quarter. Cost to income ratio increased to 55.88% from 57.28% year-on-year, while return on assets for the nine-month period stood at 1.23%.

The bank’s net interest income rose 3.8% in the quarter to Rs. 1,488.88 crore, while other income for the quarter recorded in the previous financial year was Rs. 242.32 crore, up 15.3% year-on-year to Rs. 279.46 crores. The cost of bank deposits also declined to 4.69% from 4.86% in the quarter.

“Characterized by strong top-line growth and good asset quality, our overall Q3 performance underscores our strong fundamentals, disciplined execution and continued efficiency,” Chatterjee said.

The bank informed that gross NPA ratio declined by 108 basis points to 3.00% from 4.08% year-on-year, while net NPA declined by 26 basis points to 0.68% from 0.94% year-on-year and 8 basis points from 0.76% in the quarter. Provision coverage ratio for the quarter stood at 90% to 90.46%.

“Despite navigating significant challenges that extend beyond the banking sector in our core geography, the bank’s asset quality has continued to improve. Backed by strong risk management practices, gross NPAs have declined from around 4% to 3.00%, roughly in line with our stated annual guidance.” Chatterjee said.

“The continued improvement in asset quality despite such disruptions speaks volumes about the resilience and commitment of borrowers and the underlying strength of the local economy,” he added.

The bank recorded a strong year on year growth of 17.3% in gross advances and 10.6% year-on-year growth in deposits. As on December 31, 2025, the total advances of the bank increased to Rs. 1,16,248 crores, while the total deposits were Rs. 1,55,861 crore was reached.

“Accelerated advance growth was driven by focused expansion in retail, MSME, agriculture and select corporate portfolios, supported by improved credit appetite and strengthening customer engagement across both core and emerging geographies,” Chatterjee said. He further said, “Our continued focus on deepening relationships within JKL, Jammu & Kashmir and Ladakh and beyond, improving product penetration and enhancing service delivery continues to support stable balance sheet expansion.”

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