Srinagar, Oct 22 (KNS): Jammu and Kashmir Bank on Thursday reported a 10.6 per cent year-on-year increase in net profit to Rs 546.36 crore for the second quarter ended September 30, 2026, driven by higher income and improved asset quality.

The bank's net profit rose 28.8 per cent compared with Rs 424.18 crore in the preceding quarter. It had reported a profit of Rs 494.11 crore in the corresponding quarter last year.

The financial results were approved by the bank's Board of Directors at a meeting held at its corporate headquarters on Thursday.

According to the results, the bank's net interest income increased five per cent year-on-year to Rs 1,502 crore, while other income more than doubled to Rs 314.90 crore from Rs 153.76 crore in the corresponding period last year.

Operating profit for the first half of the financial year rose over 15 per cent to Rs 1,492 crore, while the cost-to-income ratio improved to 56.57 per cent from 60.79 per cent a year earlier.

The bank's return on assets stood at 1.07 per cent, an improvement of 20 basis points over the previous quarter.

On the asset quality front, gross non-performing assets declined to 2.23 per cent from 3.32 per cent a year earlier, marking the bank's lowest level in a decade. Net NPAs also fell to 0.51 per cent from 0.76 per cent.

The provision coverage ratio improved to 91.76 per cent as of September 30, compared with 90.53 per cent at the end of June.

The bank's total business increased 19.38 per cent year-on-year to Rs 3,10,347 crore, supported by growth in both deposits and advances.Click Here To Follow Our WhatsApp Channel

Gross advances rose 23.72 per cent to Rs 1,33,551 crore from Rs 1,07,943 crore a year ago, while deposits increased 16.30 per cent to Rs 1,76,796 crore.

The bank said retail, agriculture and MSME lending accounted for more than 60 per cent of incremental credit during the current financial year.

Its current account and savings account (CASA) ratio stood at 41.97 per cent, while the capital adequacy ratio improved to 16.57 per cent from 15.27 per cent a year earlier.

Commenting on the results, Managing Director and CEO Amitava Chatterjee said the growth in net interest income, doubling of other income and more than 26 per cent increase in quarterly operating profit reflected an improvement in the bank's earnings performance.

He said the bank would focus on sustaining income growth, strengthening deposit relationships, improving recoveries and managing funding costs during the second half of the financial year.

Chatterjee said the improvement in gross NPAs to a decade-low 2.23 per cent reflected disciplined lending and proactive credit monitoring despite continued expansion of the loan book.

Referring to the bank's long-term plans, he said the nearly 20 per cent growth in total business had brought it closer to its Vision 2030 target of Rs 5 lakh crore.

He said strengthening the bank's presence in Jammu and Kashmir and Ladakh, alongside selective expansion elsewhere in the country, would remain central to its growth strategy. (KNS)