J&K Bank Q1 Net Profit Rises 17% YoY

28 Jul 2025 , 11:46 AM

Jammu & Kashmir Bank closed the June quarter with a profit of ₹484.8 crore, up from ₹415.4 crore in the same period last year. The 16.6% jump came in despite pressure on margins and a few regional disruptions.

Net interest income rose to ₹1,465 crore, compared to ₹1,369 crore a year earlier. Loan demand held steady during the period, though lending spreads narrowed.

Operating profit improved to ₹672.84 crore, against ₹594.67 crore in the June 2024 quarter. The bank said tighter cost control supported the numbers. Return on assets moved up to 1.17%, from 1.08% a year ago. That improvement came largely on the back of higher earnings and stable balance sheet expansion.

The net interest margin, however, declined. At 3.72%, it was lower than the 3.86% recorded in the March quarter. Management pointed to repo rate cuts that compressed margins. On the asset quality front, gross NPAs came in at 3.50%. That’s a touch higher than 3.37% in the March quarter, but better than 3.91% a year ago.

Net NPAs were at 0.82%, up slightly from the previous quarter’s 0.79%. But the figure remains well below last year’s 1.02%. The provision coverage ratio remained strong, staying above 90%. That indicates a healthy buffer against any possible asset deterioration.

Cost efficiency also showed improvement. The cost-to-income ratio fell to 60.78% from last year’s level, a sign that the bank is managing expenses more tightly. Total deposits stood at ₹1,48,542 crore by the end of June, up 12% from ₹1,32,574 crore in the same quarter of the previous year. The CASA ratio held steady at 45.71%.

Loans and advances grew to ₹1,01,230 crore, an increase of 6.06% compared to the year-ago quarter. Capital adequacy remained healthy at 15.98%, giving the bank enough room for credit expansion in the coming quarters.

Commenting on the results, MD and CEO Amitava Chatterjee said credit offtake in some areas was impacted by the Pahalgam terror incident, but the bank managed to hold its ground. He noted that while margins came under pressure, the overall performance was stable and supported by sound asset quality.

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