Jammu & Kashmir Bank Ltd.J&K Bank: profit ₹546 Cr, GNPA 2.23%, credit growth guide raised

Jammu and Kashmir Bank's Q2 FY27 call, held on 22 October 2026, showed a regional bank rebuilding profit after a weak first quarter.

Total business grew 19.4% to ₹3.10 lakh crore, advances grew 23.7% and deposits grew 16.3%. Net profit was ₹546 crore, up about 29% on the quarter, and operating profit was ₹789 crore, up 27% on the year, helped by cost growth of only 6.5%. Gross NPA fell to 2.23% and net NPA to 0.51%, the best in a decade, with a provision coverage ratio of 91.76%. Net interest margin was squeezed to 3.22% for the half by costly deposits, which management expects to reverse as yields rise and bulk funding rolls off.

Retail, agriculture and MSME loans supplied all net incremental credit. The bank raised its FY27 guidance to 14% plus credit growth, 12% plus deposit growth, a CASA ratio of 42% plus, return on assets near 1.20% and gross NPA below 2%, and plans to raise ₹1,000 crore of equity and ₹500 crore of debt. No earlier promises were on file for comparison.