Particle.news
Download on the App Store

J&K Bank Logs Record FY26 Profit for Fourth Straight Year

Management plans a potential capital raise to brace for new expected‑credit‑loss rules in 2027.

Overview

  • J&K Bank, which released results Tuesday, reported net profit of Rs 2,363.47 crore for FY26, up about 13% from the prior year.
  • The lender finished with its best‑ever quarter, earning nearly Rs 800 crore in Q4 versus Rs 584.54 crore a year earlier.
  • Asset quality strengthened, with gross non‑performing loans at 2.5% and net at 0.64%, and the coverage ratio holding above 90% despite a one‑time Rs 179 crore hit on J&K Grameen Bank in H1.
  • Net interest income inched up to Rs 5,875.77 crore after the RBI cut policy rates by 125 basis points in 2025, which lowered lending yields and intensified competition for deposits.
  • Capital buffers remained robust at a 16.55% capital adequacy ratio, and the CEO said the bank may raise funds this year to prepare for expected‑credit‑loss accounting that starts April 1, 2027.