Jammu and Kashmir Bank (J&KBANK) Q2 25/26 earnings summary

Executive summary

• Achieved total business of over ₹2.5 lakh crore in FY 2025, with advances surpassing ₹1 lakh crore and deposits at ₹1.52 lakh crore as of September 30, 2025.

• Net profit for Q2 FY26 was ₹494.11 crore (standalone), up 1.9% sequentially but down 10.3% year-over-year; consolidated net profit was ₹494.92 crore.

• KASA/CASA ratio improved to 45.89% from 45.71% sequentially, marking the first improvement after nine quarters.

• Over 94% of transactions are now digital, reflecting robust digital transformation.

• Maintained strong operational autonomy with a significant presence in J&K and Ladakh, and expanding footprint across India.

Financial highlights

• Deposits grew 10.2% year-over-year to ₹1,52,030 crore; net advances rose 9.4% to ₹1,05,153 crore.

• Net interest margin (NIM) contracted to 3.56% from 3.90% year-over-year.

• Cost-to-income ratio increased to 60.81% from 54.56% a year ago due to one-off provisions.

• Net worth increased 15.4% year-over-year to ₹13,956 crore.

• Operating costs well controlled, with only 2.2% YOY growth.

Outlook and guidance

• FY26 guidance: credit and deposit growth at 12%, CASA at 48%, NIM 3.65–3.70%, ROA 1.20–1.25%, ROE 15–16%, GNPA below 3%.

• Focus on improving asset quality, maintaining NPA levels, and expanding in retail, agriculture, and MSME segments.

• ROA and ROE guidance revised downward due to exceptional impairment provision, but core profitability trajectory remains positive.

• Continued investment in technology and digital banking to drive operational efficiency.

• Credit cost expected to remain below 1%; strong focus on CASA growth to reach guidance.