J&K Bank Q4 Net Profit Declines 8% To Rs 585 Crore

Jammu & Kashmir Bank on Monday reported over 8% decline in net profit to Rs 584.54 crore for the January-March quarter of 2024-25 compared to Rs 638.67 crore in the year-ago period.

On a sequential basis, net profit rose by 10% compared to Rs 531.51 crore in the previous December quarter of fiscal 2024-25, according to an exchange filing by the bank.

Total income of the bank rose by 15% to Rs 3,616.16 crore in the fourth quarter of the last fiscal compared to Rs 3,134.74 crore in the same quarter of the previous year. The bank reported a total income of Rs 3,448.40 crore in the December quarter.

Total expenses rose to Rs 2,816.14 crore in the March quarter from Rs 2,470.91 crore in the year-ago period due to high employee expenses.

For the full 2024-25 fiscal, the bank reported a nearly 18% rise in net profit to Rs 2,082.46 crore compared to Rs 1,767.27 crore reported for FY 2023-24.

"The bank again for the third year in succession has posted very good profits. I start with the profits because that's one thing that everyone wants to know. We have crossed the Rs 2,000 crore profit mark this fiscal. Apart from the profit, as the guidance of the bank has been, we have posted double-digit growth in both advances and deposits, and we have also posted robust other income, non-interest income," J&K Bank managing director and chief executive officer Amitava Chatterjee told PTI.

He said overall, it has been a very good financial year for the bank.

"To top it all, the non performing assets have further reduced from 4.08% last year to 3.37% this year. The net NPAs continue to be below 1%," he said.

On the future plans, Chatterjee said the potential of the bank gives it an advantage to grow.

"We have a very strong presence in Union Territories of Jammu and Kashmir & Ladakh. So that gives us an advantage to grow in this geography. But we also have a very strong presence outside this area. In fact we are present in 20 other states of the country. This gives us an opportunity for diversification.

While we are very focused and positive in our growth strategy in Jammu and Kashmir and Ladakh, we will also try to diversify our portfolio to the other parts of the country," he added.

Chatterjee said there has been substantial growth which has come from the rest of the country.

"I am very positive that going forward we will have a balance of growth. We also have a clear visibility of NPAs. The best part is that the NPAs within JK and Ladakh are pretty low and the creation of fresh NPAs is negligible whether it is here or outside. I believe we will be able to bring the NPAs below three per cent this year, if not more," he said.

J&K Bank’s total deposits increased by 10.24% YoY to Rs 1.48 lakh crore (Rs 1,48,569.46 crore) as on March 31, 2025, compared to Rs 1,34,774.89 crore last year.

The net advances rose to Rs 1,04,198.72 crore, registering a growth of 11.13% from Rs 93,762.51 crore a year ago. The bank’s current account and saving account ratio stood at 47.01%, maintaining a healthy share of low-cost deposits in the overall mix.