J&K Bank Q1 Results | Net profit surges 17% to ₹485 crore; asset quality improves

Jammu & Kashmir Bank Ltd on Friday (July 25) reported a 16.6% year-on-year (YoY) increase in net profit at ₹484.8 crore for the first quarter that ended June 30, 2025.In the corresponding quarter of the previous fiscal, Jammu & Kashmir Bank posted a net profit of ₹415.4 crore. Net interest income (NII) was up 7%, coming at ₹1,465 crore against ₹1,369 crore in the corresponding quarter of FY25.
The gross non-performing asset (GNPA) stood at 3.50% in the June quarter against 3.37% in the March quarter. Net NPA came at 0.82% against 0.79% quarter-on-quarter.
Also Read: J&K Bank Q3 Business Update: Total business rises 8.56% to ₹2.37 lakh croreThe bank’s Return on Assets (RoA) rose to 1.17% from 1.08% in the same period last year, indicating better profitability. However, Net Interest Margin (NIM) for the quarter declined sequentially to 3.72% from 3.86% recorded in Q4FY2025.

The cost-to-income ratio improved on a YoY basis to 60.78%, reflecting improved operational efficiency. Operating profit rose 13% YoY to ₹672.84 crore, compared to ₹594.67 crore in the corresponding period last year.

On the balance sheet front, total deposits grew 12% YoY to ₹1,48,542 crore, up from ₹1,32,574 crore in Q1 FY25. Net advances increased 6.06% YoY to ₹1,01,230 crore, compared to ₹95,450 crore in the year-ago period. The CASA (Current Account and Savings Account) ratio stood at 45.71% as of June 30, 2025.Also Read: J&K Bank targets 12% asset base growth in FY26, counts on agri, corporate lending

Asset quality showed a marked improvement. Gross Non-Performing Assets (GNPA) ratio declined by 41 basis points YoY to 3.50%, compared to 3.91% a year ago. Net NPA stood at 0.82%, and the bank maintained a strong NPA coverage ratio of over 90%.

The Capital Adequacy Ratio (CAR) stood at a healthy 15.98%, providing the bank with a comfortable capital buffer to support future growth.

Amitava Chatterjee, MD and CEO, said, “Despite the tough situation on the ground due to the Pahalgam terror attack along with its aftermath that affected business activity and credit offtake in key geographies well into June, we have been able to deliver a healthy bottom line growth of around 17%.

The sudden decline in NIM should be viewed against the broader environment wherein repo rate cuts announced by the regulator impacted the margins.”

The results came after the close of the market hours. Shares of Jammu and Kashmir Bank Ltd ended at ₹109.45, down by ₹2.25, or 2.01% on the BSE.