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NII declined 1.3% year-on-year to ₹1,489 crore from ₹1,509 crore, indicating pressure on interest income during the quarter. However, asset quality metrics showed sequential improvement, with gross non-performing assets (NPA) easing to 3% from 3.32% quarter-on-quarter. Net NPA also improved to 0.68% from 0.76% in the previous quarter, underscoring better recoveries and controlled slippages.
The bank’s recent history includes regulatory action, with Jammu & Kashmir Bank being penalised ₹3.31 crore on January 25, 2025, for breaches of directions relating to financial inclusion, Know Your Customer (KYC) norms, and loans and advances.
Also read: RBI penalises Canara Bank, Bank of India, J&K Bank for non-compliance
On the capital front, the bank’s board, on November 26, 2025, approved a fund-raising plan for FY2025–26. This includes raising up to ₹750 crore in equity through one or more tranches via a Qualified Institutional Placement, subject to shareholder and regulatory approvals. Additionally, the board cleared the issuance of up to ₹500 crore through non-convertible, redeemable, unsecured, Basel III-compliant Tier 2 bonds on a private placement basis, aimed at strengthening the bank’s capital base.
J&K Bank Q2FY26 results
In the July–September quarter, the bank reported an 11% fall in net profit to ₹494.11 crore, while profit for the first half of the financial year edged up to ₹978.95 crore from ₹966.41 crore a year earlier.
Total income for Q2 rose to ₹3,447 crore from ₹3,420 crore year-on-year, while NII for the quarter stood at ₹1,433.99 crore. For H1, NII increased 3.4% year-on-year to ₹2,899.43 crore, with the net interest margin maintained at 3.64%.
Also read: J&K Bank Q2 Update: Loans, deposits, investment grew from last year
Shares of Jammu & Kashmir Bank Ltd closed 2.48% lower on the BSE at ₹100.20.
