Kashmir Impulse Desk

Srinagar, May 6 

Jammu and Kashmir Bank reported its highest-ever annual profit for the financial year 2025-26, posting a net profit of 2363 crore, driven by growth in advances and improved asset quality despite pressure on interest income from lower policy rates.

The bank’s annual profit rose more than 13 percent year-on-year from Rs 2082 crore recorded in the previous financial year, even after accounting for a one-time impairment provision of Rs 179 crore linked to its investment in J&K Grameen Bank.

The lender also posted a record quarterly performance in the January-March quarter, with net profit rising to nearly Rs 800 crore from Rs 585 crore a year earlier, according to financial results approved by its board on Tuesday.

Net interest margin for the year stood at 3.60 percent, while return on assets for the quarter rose to 1.78 percent from 1.44 percent a year earlier. 

The bank’s return on equity for FY26 was recorded at 16.85 percent.

Managing Director and Chief Executive Officer Amitava Chatterjee said the lender delivered record profits for the fourth consecutive year despite geopolitical uncertainties and a challenging local environment.

“Even against a backdrop of geopolitical uncertainties and a demanding local environment, the Bank delivered record profits for the fourth consecutive year,” Chatterjee said in a statement.

He said that lower lending rates following cumulative interest rate cuts by the Reserve Bank of India during 2025 had moderated growth in interest income, while intense competition for deposits increased funding costs.

The bank’s total business grew 13.61 percent year-on-year to Rs 2,90,000 crore as of March 31, 2026. 

Deposits increased 11.3 percent to Rs 1,65,000, while net advances rose 18 percent to Rs 1,23,000 crore.

Its gross non-performing asset ratio improved to 2.5 percent from 3.37 percent a year earlier, while the provision coverage ratio remained above 90 percent.

The bank’s capital adequacy ratio stood at 16.55 percent at the end of March. 

Chatterjee said the bank may consider raising capital during the current financial year in view of expected credit loss norms scheduled to take effect from April 2027.

The lender said it remained focused on expanding retail lending, supporting micro, small and medium enterprises, and increasing credit flow to the agriculture sector, while strengthening its presence in Jammu and Kashmir, Ladakh and other regions of India.