J&K Bank stays on track; Q3 net profit rises 10.4% YoY despite Pahalgam attack and floods: MD & CEO Amitava Chatterjee

Jammu and Kashmir Bank MD and CEO Amitava Chatterjee on Tuesday said that despite rate cuts and challenging conditions such as the Pahalgam attack 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, informing that net profit rose 18.7% quarter on quarter and 10.4% year on year to Rs 586.73 crore, compared with Rs 531.51 crore recorded during the same period last fiscal.

The Bank’s Board of Directors approved the numbers 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 the financial year 2025–26 grew 4.5% year on year to Rs 1,565.68 crore, compared with Rs 1,497.92 crore recorded during the same period last year.

“Despite rate cuts, impairment provisioning for Grameen Bank and challenging conditions, particularly the events of April 22, the Pahalgam attack, their subsequent impact, and the floods that disrupted the local economy, the Bank remains firmly on track to deliver record profits for the fourth consecutive year,” said Chatterjee.

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

The Bank’s net interest income rose 3.8% quarter on quarter to Rs 1,488.88 crore, while other income for the quarter surged 15.3% year on year to Rs 279.46 crore from Rs 242.32 crore recorded last financial year. The Bank’s cost of deposits also declined to 4.69% quarter on quarter from 4.86%.

“Characterised by robust top line growth and better asset quality, overall our Q3 performance underscores our strong fundamentals, disciplined execution and sustained operational efficiency,” said Chatterjee.

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

“Even as our core geography has navigated significant challenges extending beyond the banking sector, the Bank’s asset quality has continued to improve steadily. Supported by robust risk management practices, gross NPAs have declined from around 4% to 3.00%, which is almost in line with our stated annual guidance,” said Chatterjee.

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

The Bank recorded a robust year on year growth of 17.3% in gross advances and a healthy year on year growth of 10.6% in deposits. As on December 31, 2025, the Bank’s gross advances rose to Rs 1,16,248 crore, while total deposits reached Rs 1,55,861 crore.

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

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