Are J&K Bank latest results good or bad?

Jun 07 2025 04:01 AM IST
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J&K Bank's latest results show strong interest earnings and zero NPAs, indicating stability, but a decline in profit before tax and operating profit raises concerns about the sustainability of its core business. Overall, the performance is mixed.
The Jammu & Kashmir Bank has released its financial results for the quarter ending March 2025, which highlight several operational trends. The bank reported a record interest earned of Rs 3,211.85 crore, demonstrating consistent growth over the last five quarters, although the quarter-on-quarter growth rate has moderated to 0.18%.

Notably, the bank's gross and net non-performing assets (NPAs) stand at 0.00%, indicating a stable position regarding stressed loans. The capital adequacy ratio (CAR) has reached its highest level in five quarters at 16.29%, suggesting a robust capital position. Additionally, cash and cash equivalents have risen to Rs 8,132.27 crore, reflecting improved short-term liquidity.

However, the bank's profit before tax (PBT) was reported at Rs 404.87 crore, which represents a decline compared to the average of the previous four quarters. The operating profit also decreased to Rs 395.71 crore, marking the lowest level in five quarters, and the operating profit margin has contracted to 12.32%. Furthermore, a significant portion of PBT is derived from non-operating income, which raises questions about the sustainability of the bank's core business model.

Overall, the company saw an adjustment in its evaluation, reflecting the mixed operational performance during the reported period.
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