New Delhi, Oct. 22 -- J&K Bank on Thursday reported an 10.60 per cent growth in its net profit to Rs 546.36 crore in Q2 FY27. The bank had posted a net profit of Rs 494 crore in the year-ago period. Total income rose to Rs 4,042 crore in Q2 FY27 from Rs 3,446 crore in the same period a year ago, J&K Bank said in a regulatory filing.
Interest income of the bank improved to Rs 3,727 crore in Q2 FY27 from Rs 3,292 crore in Q2 FY26. The bank's Net Interest Income (NII) rose 5 per cent to Rs 1,502 crore during the quarter. The Cost-to-Income Ratio for the quarter has consequently witnessed substantial improvement, being recorded at 56.57 per cent compared to 60.79 per cent for the corresponding quarter last year, the bank said in a statement.
Asset quality of the bank witnessed improvement with gross NPAs falling to 2.23 per cent of gross advances at the end of the September quarter of 2026 against 3.32 per cent a year ago. Net NPAs or bad loans also declined to 0.51 per cent compared to 0.76 per cent in the year-ago period.
On the improvement in asset quality, J&K Bank MD & CEO Amitava Chatterjee said, "The continuing improvement in our GNPA ratio by 14 bps QoQ to 2.23 per cent, the lowest level in a decade, along with an annualised gross slippage ratio of just 0.4 per cent for the half year." This reflects the cumulative impact of the bank's continued focus on disciplined underwriting & proactive credit monitoring mechanism, he said.
The bank has been able to broadly maintain its CASA ratio at around 42 per cent, being recorded at 41.97 per cent as on September 30, 2026, it said. The bank's Capital Adequacy Ratio increased to 16.57 per cent from 15.27 per cent at the end of September 2025.
Published by HT Digital Content Services with permission from Millennium Post.