J&K Bank January-March Net Profit Falls On Year 8% On Higher Expenses

Jammu & Kashmir Bank’s net profit for the March quarter fell over 8% on year to ₹5.85 billion as expenses climbed, the lender said in a filing Monday. For the financial year ended March, net profit rose to ₹20.82 billion from ₹17.67 billion a year ago.

Total expenses in the March quarter rose 14% on year to ₹28.16 billion and were up over 4% sequentially. Operating expenses rose 8% on quarter and 25% on year to ₹10.84 billion. Employee costs and other operating expenses increased 4.4% and 17% on quarter, respectively.

Provisions for non-performing assets jumped to ₹580 million from ₹227.6 million in the December quarter. Provision reversals stood at ₹91.6 million, compared with ₹98 million in the previous quarter.

Asset quality improved, with the gross NPA ratio falling to 3.37% as on March 31 from 4.08% a quarter ago. Net non-performing assets ratio also eased to 0.79% from 0.94% as on December 31.

Total income for the March quarter rose 15.4% on year to ₹36.16 billion. For 2024–25, income climbed to ₹136.73 billion from ₹120.38 billion. Other income more than doubled on year to ₹4.04 billion in the March quarter. Net interest income rose 11.3% on year to ₹57.94 billion, while net interest margin stood at 3.92%.

Managing Director and CEO Amitava Chatterjee said the bank is now geared for growth in high-potential regions, particularly J&K and Ladakh, and will continue to focus on retail, MSME, and agriculture lending alongside digital transformation.

As on March 31, total deposits rose 10.2% on year to ₹1.49 trillion and net advances grew 11.13% to ₹1.04 trillion. The CASA ratio stood at 47.01%. Provision coverage was over 90% and the capital adequacy ratio stood at 16.29%.

The board has recommended a dividend of ₹2.15 per share.