J&K Bank Q2 Results, October 22, 2026: Profit Up 10.6% to ₹546 Crore, Gross NPA at Decade Low

J&K Bank Q2 results came out on the afternoon of October 22, 2026, and the headline is a decent one. The Srinagar-based lender reported a standalone net profit of ₹546.36 crore for the September quarter, up 10.6% from ₹494.11 crore a year ago and 28.8% higher than the ₹424.18 crore it made in the June quarter. The figures come from the bank’s press release filed on NSE and its reviewed financial results.

The sequential jump matters more than the yearly one. June was a soft quarter for the bank, and this one claws a good part of that back.

J&K Bank Q2 results: where the profit came from

Core lending income grew, but slowly. Net interest income rose 5% year on year to ₹1,502 crore. The real kick came from other income, which roughly doubled to ₹314.90 crore from ₹153.76 crore in the same quarter last year, and was up 47% on the June quarter.

Costs stayed tight. Operating expenses grew just 1.5% year on year for the half-year, so the cost-to-income ratio for the quarter fell to 56.57% from 60.79% a year earlier. Operating profit for the half-year came to ₹1,492 crore, up a little over 15%. MD and CEO Amitava Chatterjee said operating profit for the quarter alone was up over 26% year on year. Return on assets rose 20 basis points from the June quarter to 1.07%.

One thing we’d point out: because June was weak, first-half profit is still slightly behind last year. H1 FY27 standalone net profit was ₹970.54 crore, against ₹978.95 crore in H1 of the previous year.

Asset quality at a ten-year best

This is the part the bank is proudest of, and the numbers back it up. Gross NPA ratio fell 109 basis points year on year to 2.23%, which the bank calls its lowest level in a decade. It was also 14 basis points better than in June. Net NPA improved to 0.51% from 0.76% a year ago.

Provision coverage rose to 91.76% at the end of September from 90.53% at the end of June. The annualised gross slippage ratio for the half-year was just 0.4%, according to the CEO.

Loans are growing faster than deposits

Total business grew 19.38% year on year to ₹3,10,347 crore. Gross advances rose 23.72% to ₹1,33,551 crore from ₹1,07,943 crore, while deposits grew 16.30% to ₹1,76,796 crore. The bank said more than 60% of net new credit so far this year went to retail, agriculture and MSME borrowers.

That gap between loan and deposit growth is worth keeping an eye on. Chatterjee himself flagged funding costs as a focus for the second half, along with deeper deposit relationships. CASA deposits rose 1.73% over the June quarter, and the CASA ratio stood at 41.97%.

Capital looks comfortable. The capital adequacy ratio was 16.57% at the end of September, up from 15.27% a year earlier. The bank repeated its Vision 2030 aim of ₹5 lakh crore in total business.

What we’d watch next

The quarter’s profit leaned heavily on other income, and NII growth of 5% is slow next to 23.72% loan growth. If deposit costs ease, margins can catch up. If not, the bank will need fee income and recoveries to keep doing the heavy lifting. For a step-by-step way to read a bank’s quarter, see our guide to analysing quarterly results. For another lender’s numbers from the same day, read our note on CreditAccess Grameen Q2 results.

Disclaimer: This article is for information and education only and is not investment advice. Do your own research or consult a SEBI-registered adviser before making any investment decision.