| J&K Bank hits historic high, posts highest ever annual profit of Rs 2363 Cr | | |  Early Times Report
SRINAGAR, May 5: Continuing its stellar streak of record profits for the fourth consecutive financial year, J&K Bank has posted its highest ever annual profit of Rs 2363.47 Cr for the FY 2025-26. The Bank registered a year-on-year growth of over 13% in its annual profit when compared to Rs 2082.46 Cr reported for FY 2024-25, 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.
The Bank also ended the financial year on a high with a record quarterly performance, posting a net profit of almost Rs.800 crores when compared to Rs 584.54 Cr recorded for the corresponding period last year. The Bank declared its annual and Q4 results today after its Board of Directors approved the figures at a meeting held here at the Bank's Corporate Headquarters.
Operating Highlights
The Bank's net interest margin (NIM) for the financial year stood at 3.60%. The Return on Assets (RoA) witnessed increase of 34 bps YoY to 1.78% for the quarter as against 1.44% recorded last year with RoA for the year recorded at 1.37%. Cost to Income ratio of the Bank also improved for the fourth year running, being recorded at 56.18% for the year. The Bank's Return on Equity (RoE) was recorded at 16.85% for the FY 25-26.
Affected by the reduction in repo rates by the regulator, the Bank's net interest income for the financial year grew marginally to Rs 5875.77 Cr.
Commenting on the growth numbers, MD & CEO Amitava 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. Significantly, the Bank has also been able to rationalize its operating expenses even as the business scales up, thereby enhancing operational efficiency and strengthening overall productivity."
"With historic profits of Rs 2363.47 Cr, a GNPA at 2.5%, PCR exceeding 90% and CRAR over 16.50%, our Bank stands well-positioned to accelerate the next phase of growth journey. This remarkable performance is a testament to the dedication of our staff, the unwavering trust of our customers, and the steadfast support of our promoters - Governments of J&K and Ladakh", MD & CEO added. |
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