Jammu and Kashmir Bank (J&KBANK) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw robust business growth, with credit growth outpacing the system and steady improvement in asset quality; net profit for FY 2024-25 reached a record ₹2,082 crore, marking a third consecutive year of lifetime high profits.

• Deposits grew 10.6% YoY to ₹1,55,861 crore; advances rose 17.3% YoY to ₹1,16,248 crore, with total business surpassing ₹2.5 lakh crore.

• Net profit for Q3 FY26 was ₹587 crore, up 18.7% QOQ and 10.4% YoY; asset quality improved with GNPA at 3% and NNPA at 0.68%.

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

• Upgraded long-term issuer rating to AA- with a stable outlook.

Financial highlights

• Net profit for nine months ended Dec 31, 2025, was ₹1,565.68 crore, up from ₹1,497.92 crore YoY; operating profit before tax for the quarter was ₹806 crore.

• NIM for Q3 was 3.62%, and for nine months 3.64%; cost of deposits at 4.69%; cost-to-income ratio improved to 55.88%.

• Annualized ROA and ROE for nine months at 1.23% and 15.16%, respectively; net worth increased 15.39% YoY to ₹14,525 crore.

• CASA ratio at 44.10% as of Dec 31, 2025; CD ratio at 72.85%.

• Standalone total income for Q3 FY26 was ₹3,592.90 crore; consolidated total income was ₹3,596.86 crore.

Outlook and guidance

• FY26 guidance: credit growth 12%, deposit growth 10%, CASA 45%, NIM 3.65%-3.7%, ROA 1.2%-1.25%, ROE 15%-16%, GNPA below 3%.

• Loan-to-deposit ratio targeted to rise to 76%-78% medium term, subject to regulatory compliance.

• Focus on improving asset quality, expanding outside J&K, and growing retail, agriculture, and MSME segments.

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

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