Jammu & Kashmir Bank Reports 8% Decline in Q4 Profit to Rs 584.54 Crore

Jammu & Kashmir Bank reported a decline of over 8% in net profit for the January-March quarter of 2024-25, amounting to Rs 584.54 crore. This is a decrease from Rs 638.67 crore in the same period last year. However, compared to the previous December quarter of FY 2024-25, net profit increased by 10%, reaching Rs 531.51 crore.

Representative image

The bank's total income for the fourth quarter of the last fiscal rose by 15% to Rs 3,616.16 crore, compared to Rs 3,134.74 crore in the same quarter of the previous year. In the December quarter, total income was reported at Rs 3,448.40 crore. Total expenses increased to Rs 2,816.14 crore in the March quarter from Rs 2,470.91 crore a year ago, primarily due to higher employee costs.

Growth and Profitability

For the entire fiscal year 2024-25, Jammu & Kashmir Bank achieved a nearly 18% rise in net profit, amounting to Rs 2,082.46 crore compared to Rs 1,767.27 crore in FY 2023-24. "The bank again for the third year in succession has posted very good profits," stated J&K Bank MD & CEO Amitava Chatterjee. "We have crossed the Rs 2,000 crore profit mark this fiscal."

Chatterjee highlighted that apart from profits, the bank achieved double-digit growth in both advances and deposits while also posting robust non-interest income. He noted that it has been an excellent financial year for the bank overall.

Asset Quality and Future Plans

The bank's asset quality improved as NPAs reduced from 4.08% last year to 3.37% this year, with net NPAs remaining below one per cent. Chatterjee expressed optimism about future growth due to the bank's strong presence in Jammu and Kashmir and Ladakh UTs.

Chatterjee mentioned plans for diversification beyond these regions as well. "We are present in 20 other states of the country," he said, adding that this offers opportunities for diversification while maintaining focus on growth strategies within Jammu and Kashmir and Ladakh.

Deposits and Advances

The bank's total deposits increased by 10.24% YoY to Rs 1.48 lakh crore (Rs 1,48,569.46 crore) as of March 31, 2025, compared to Rs 1,34,774.89 crore last year. Net advances rose by 11.13% to Rs 1,04,198.72 crore from Rs 93,762.51 crore a year ago.

The CASA Ratio stood at a healthy level of 47.01%, indicating a strong share of low-cost deposits within the overall mix.

Chatterjee expressed confidence in achieving balanced growth moving forward while keeping NPAs under control both within JK and Ladakh as well as outside these regions.

With inputs from PTI