Jammu and Kashmir Bank reported its highest-ever annual profit for the financial year 2025–26, extending its streak of record earnings for the fourth consecutive year.

The bank posted a net profit of ₹2,363.47 crore, up over 13% from ₹2,082.46 crore in the previous fiscal, despite taking a one-time impairment charge of ₹179 crore on its investment in J&K Grameen Bank.

For the January–March quarter, net profit rose to nearly ₹800 crore from ₹584.54 crore a year earlier, according to results approved by the board at its headquarters in Srinagar.

Managing Director and CEO Amitava Chatterjee said the performance came despite geopolitical uncertainties and a challenging operating environment, highlighting improvements in asset quality, capital strength and cost efficiency.

“Our record profit reflects sustained execution and resilience, supported by improved asset quality and strong capital adequacy,” he said.

Net interest margin (NIM) for the year stood at 3.60%, while return on assets (RoA) for the quarter rose to 1.78% from 1.44% a year earlier. Full-year RoA was recorded at 1.37%.

The cost-to-income ratio improved to 56.18%, and return on equity (RoE) stood at 16.85%.

Net interest income rose marginally to ₹5,875.77 crore, impacted by a cumulative 125 basis points reduction in policy rates by the Reserve Bank of India during 2025 and higher competition for deposits.

Business growth

Total business grew 13.61% year-on-year to ₹2.90 lakh crore as of March 31, 2026.

Deposits increased 11.30% to ₹1.65 lakh crore, while net advances rose 18% to ₹1.23 lakh crore. CASA deposits grew 8.07% to ₹75,478 crore, with the CASA ratio improving to 45.65%.

The bank said it will continue to focus on retail lending, MSMEs and agriculture while expanding beyond its core markets of Jammu & Kashmir and Ladakh.

Asset quality and capital

Gross non-performing assets (GNPA) declined to 2.5% from 3% in the previous quarter and 3.37% a year earlier. Net NPA stood at 0.64%, while provision coverage ratio remained above 90%.

Capital adequacy ratio (CRAR) stood at 16.55%. The bank said it may raise capital during the current financial year ahead of the expected credit loss (ECL) framework implementation from April 2027.

CSR spending

The bank said it spent around ₹96 crore over the past three years on corporate social responsibility initiatives across healthcare, education, environment and skill development.

Chatterjee said the bank remains “well-positioned to accelerate the next phase of growth,” supported by strong fundamentals and stakeholder confidence.

Published on May 6, 2026