SRINAGAR, Oct 25: Jammu and Kashmir Bank reported an impressive 45% increase in its standalone profit for the September quarter, reaching Rs 551 crore, up from Rs 381.07 crore in the same quarter last year. The bank’s net profit for the April-September period in FY25 also grew by 36.6%, amounting to Rs 966.41 crore compared to Rs 707.52 crore in the corresponding period of FY24, according to an official statement.
The growth in Q2 profits has been propelled by both core and non-core income, driving a remarkable 47% year-on-year (YoY) and 32% quarter-on-quarter (QoQ) increase in operating profit to Rs 787 crore. Additionally, the bank’s Net Interest Income (NII) rose by 7.7% YoY, standing at Rs 1,435.93 crore in Q2. Meanwhile, the bank saw a significant boost in other income, which increased by 55.6% YoY to reach Rs 296.08 crore.
In terms of efficiency, J&K Bank improved its Net Interest Margin (NIM) to 3.90% from 3.86% in Q1, while the cost-to-income ratio was brought down to 54.56% YoY from 64.93%, indicating better operational efficiency.
Reflecting on the results, MD and CEO Baldev Prakash commented, “The bottom-line growth underscores our financial prudence and operational excellence, reaffirming our commitment to consistent stakeholder value. With a healthy balance sheet, diversified portfolio, and ongoing digital transformation, we’re well-poised to continue this growth and seize emerging opportunities.”
On the asset quality front, the bank reported a substantial reduction in non-performing assets. The gross NPA ratio improved by 131 basis points YoY to 3.95%, down from 5.26% recorded last September. Net NPAs also saw a decrease, reaching 0.85% from 1.04% previously. Prakash highlighted the focus on proactive asset-quality management, which he said has contributed to sustainable growth and a strong asset base, adding that the bank’s return on assets (RoA) improved to 1.41% YoY, alongside a Provision Coverage Ratio (PCR) of 90.54%.
The bank’s Current Account and Savings Account (CASA) ratio stood at a strong 48.60%, one of the highest in the sector. In terms of lending growth, advances increased close to 10% YoY, while deposit growth remained steady within industry averages.
Looking ahead, Prakash outlined J&K Bank’s strategic priorities, emphasizing a well-capitalized position with a CRAR near 15%, exclusive of its half-yearly profit, which, if included, would elevate the ratio to 16%. He pointed to ongoing initiatives to fortify the bank’s deposit base and loan book for sustained growth. A key component of the bank’s future strategy involves expanding its digital initiatives to enhance customer experience.
“Beyond credit provision, we’re equipping businesses with tools for sustainable growth,” Prakash said, adding that a collaborative effort with fintech partners is in the works to offer management solutions tailored for MSMEs.