Jammu and Kashmir Bank has announced a record profit of ₹2,363 crore for the financial year 2025-26, marking a significant milestone in its financial performance. The bank’s annual results, declared on Tuesday, underscored its position as a leading financial institution in the region.
The bank has reported consistent record profits for the fourth consecutive financial year. Information reaching TahirRihat.com suggests that despite a challenging economic environment, the bank has demonstrated resilience and strategic financial management. The annual profit represents a growth of over 13% compared to the ₹2,082.46 crore reported for FY2024-25. This growth was achieved despite a one-time impairment provision of ₹179 crore on its investment in J&K Grameen Bank during the first half of the financial year, a spokesperson for the bank stated.
The financial year concluded with a robust quarterly performance, with a net profit of almost ₹800 crore, compared to ₹584.54 crore in the corresponding period of the previous year. The board of directors approved these figures at a meeting held at the bank’s corporate headquarters, signaling confidence in the bank’s financial trajectory.
The bank’s net interest margin (NIM) for the financial year stood at 3.60%. The return on assets (RoA) also saw an increase of 34 basis points year-on-year, reaching 1.78% for the quarter, compared to 1.44% in the previous year. The RoA for the entire year was recorded at 1.37%. The cost-to-income ratio of the bank improved for the fourth consecutive year, standing at 56.18% for the year. The Bank’s Return on Equity (RoE) was recorded at 16.85% for the FY 25-26. This data highlights the bank’s efficiency and profitability in its operations.
Amitava Chatterjee, MD & CEO of J&K Bank, noted that the bank has delivered record profits for the fourth consecutive year, even amidst geopolitical uncertainties and a demanding local environment. He emphasized the sustained improvement in asset quality and strong capital adequacy, which he said underscores the bank’s resilience and disciplined execution. (Chatterjee said, “Even against a backdrop of geopolitical uncertainties and a demanding local environment, the bank delivered record profits for the fourth consecutive year – alongside sustained improvement in asset quality and strong capital adequacy — underscoring its resilience and disciplined execution.”) He added that the bank has rationalized its operating expenses even as the business scales up, enhancing operational efficiency and strengthening overall productivity.
Chatterjee addressed concerns about the muted growth in overall earnings, explaining that despite healthy growth in the loan book, the increase in interest income was relatively modest. (Chatterjee said, “This was largely on account of the cumulative 125 basis points reduction in policy rates by the Reserve Bank of India during the calendar year 2025, which resulted in lower lending rates across our repo- and MCLR-linked portfolios, impacting overall earnings.”) The Reserve Bank of India’s reduction of 125 basis points in policy rates during 2025 led to lower lending rates across the bank’s repo- and MCLR-linked portfolios, which impacted overall earnings.
This performance reflects J&K Bank’s effective management and strategic response to market dynamics, positioning it for continued growth and stability in the financial sector.
Tahir Rihat (also known as Tahir Bilal) is an independent journalist, activist, and digital media professional from the Chenab Valley of Jammu and Kashmir, India. He is best known for his work as the Online Editor at The Chenab Times.