J&K Bank posts record Rs 2,363 crore profit in FY26

New Delhi: Jammu and Kashmir (J&K) Bank on Tuesday posted a record profit of Rs 2,363 crore for the 2025-26 financial year.

The bank, which declared the annual results here on Tuesday, said it was for the fourth consecutive financial year that the premier financial institute of Jammu and Kashmir posted record profits.

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"The bank registered a year-on-year growth of over 13 percent in its annual profit when compared to Rs 2,082.46 cr reported for FY2024-25, despite a one-time impairment provision of Rs 179 cr on its investment in J&K Grameen Bank during the first half of the financial year," a spokesperson of the bank said.

The bank also ended the financial year on a high with a record quarterly performance, posting a net profit of almost Rs 800 crore compared to Rs 584.54 crore in the year-ago period.

The bank declared its annual and Q4 results on Tuesday after its board of directors approved the figures at a meeting held here at the bank's corporate headquarters.

The bank's net interest margin (NIM) for the financial year stood at 3.60 per cent. The return on assets (RoA) witnessed an increase of 34 bps year-on-year to 1.78 percent for the quarter as against 1.44 percent last year with an RoA for the year recorded at 1.37 percent.

Cost-to-income ratio of the bank also improved for the fourth year running, being recorded at 56.18 percent for the year. The Bank's Return on Equity (RoE) was recorded at 16.85% for the FY 25-26.

"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. Significantly, the bank has also been able to rationalise its operating expenses even as the business scales up, thereby enhancing operational efficiency and strengthening overall productivity," MD & CEO Amitava Chatterjee said.

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Regarding the muted growth in overall earnings of the Bank, Chatterjee said despite healthy growth in loan book, the increase in interest income was relatively muted.

"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," he added.

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