Jammu and Kashmir Bank (J&KBANK) Q2 25/26 earnings summary

Executive summary

• Sequential deposit growth was 2.4% and advances growth 3.9% in Q2 FY26, with YOY deposit growth at 10.2% and advances at 9.4%, closely tracking industry averages.

• Net profit for Q2 FY26 was ₹494.11 crore (standalone), up 1.9% QOQ but down 10.3% YOY; consolidated net profit was ₹494.92 crore.

• Asset quality improved with GNPA at 3.32% (down from 3.95%) and NNPA at 0.76% (down from 0.85%).

• Over 90% of transactions are now digital, reflecting a strong digital transformation.

• Financial statements prepared in accordance with Indian GAAP, RBI, and SEBI guidelines, and subjected to limited review by statutory auditors.

Financial highlights

• Net profit for the quarter at ₹494.11 crore, up 1.9% QOQ; half-yearly net profit up 1.3% YOY despite a one-off impairment provision.

• Net Interest Margin (NIM) contracted to 3.56% from 3.90% YOY; Net Interest Income for Q2 FY26 was ₹1,433.99 crore, nearly flat YOY.

• Cost-to-income ratio increased to 60.81% from 54.56% YOY due to a one-off provision.

• Operating costs well controlled, with only 2.2% YOY growth.

• Net worth stood at ₹13,956.24 crore as of 30th September 2025.

Outlook and guidance

• FY26 guidance: credit and deposit growth at 12%, KASA at 48%, NIM 3.65–3.70%, ROA 1.20–1.25%, ROE 15–16%, GNPA below 3%.

• ROA and ROE guidance revised downward due to the exceptional impairment provision, but core profitability trajectory remains positive.

• Focus on improving asset quality, maintaining NPA levels, and expanding in retail, agriculture, and MSME segments.

• Continued investment in technology and digital banking to drive operational efficiency.

• Additional provisions made on sub-standard and doubtful assets above RBI norms to enhance prudence.