Net interest income (NII) grew 7% to Rs 1,465.43 crore in Q1 FY26 compared with Rs 1369.22 crore in Q1 FY25. Net Interest Margin (NIM) declined to 3.72% in Q1 FY26 as against 3.86% recorded in Q1 FY25.

Total deposits increased 12.05% to Rs 1,48,542 crore as of 30th June 2025 compared with Rs 1,32,573 crore as of 30th June 2024. Net Advances grew 6.06% YoY to Rs 1,01,230.11 crore as of 30th June 2025 as against Rs 95,449.77 crore as of 30th June 2024.

CASA ratio declined to 45.71% in Q1 FY26 compared with 49.77% in Q1 FY25.

The gross non-performing asset (GNPA) fell 5.69% YoY to Rs 3,638.19 crore as on 30th June 2025, compared with Rs 3,857.59 crore as on 30th June 2024.

Gross NPA ratio reduced to 3.50% in Q1 FY26 from 3.91% in Q1 FY25. The net NPA ratio stood at 0.82% as of 30th June 2025, as against Rs 0.78% as of 30th June 2024.

The bank’s capital adequacy ratio (CAR) stood at 15.98% in June'25. CET-1 at 12.69%, Tier- I stood at 13.68%.

MD & CEO, Amitava Chatterjee, said, "Despite tough situation on 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.

Pertinently, the profitability for Q1 is subdued on account of impairment provision of Rs 87 crore made in this quarter towards our investment in the RRB - Jammu and Kashmir Grameen Bank, necessitated by amalgamation of Ellaquai Dehati Bank with erstwhile J&K Grameen Bank w.e.f. 30th April 2025. Excluding this non-recurring impact, our profitability growth would be upwards of 30% YoY. This one time provision has also impacted our ROA and ROE, however on a normalised basis both metrics remain broadly in line with our expectation.

On the asset quality front, as per our annual guidance, we plan to bring it to around 3% by the end of CFY through prudent lending, robust recovery mechanisms, and proactive monitoring using early warning systems and digital tools like our NPA tracker.

With CAR almost 16%, we remain well capitalized and have an enabling board approval for raising further capital to fund our growth plans and seize emerging opportunities across our business segments.”

J&K Bank offers banking services under the three major divisions of support services, depository services, and third-party services.

The scrip declined 2.01% to end at Rs 109.45 on the BSE.