Revenue and Income Growth
Over the past seven years, J&K Bank’s interest earned has shown a consistent upward trend, rising from ₹7,675.56 crores in March 2019 to ₹12,535.86 crores by March 2025. This growth reflects the bank’s expanding lending and investment activities. Income on investments has also increased steadily, reaching ₹2,669.23 crores in the latest fiscal year, up from ₹1,551.99 crores in 2019. Interest on advances and bills, the core income driver, grew from ₹5,935.24 crores in 2019 to ₹9,422.99 crores in 2025, underscoring the bank’s enhanced credit portfolio.
Other income sources contributed ₹1,136.81 crores in 2025, up from ₹812.63 crores in 2019, supporting total income growth to ₹13,672.67 crores in the latest year, a significant rise from ₹8,488.19 crores six years earlier.
Profitability and Margins
J&K Bank’s net interest income (NII) has improved consistently, reaching ₹5,793.82 crores in March 2025 from ₹3,383.93 crores in 2019. This reflects effective management of interest expenses, which increased moderately from ₹4,291.63 crores to ₹6,742.04 crores over the same period. Operating profit before provisions and contingencies surged to ₹2,929.79 crores in 2025, up from ₹1,717.90 crores in 2019, indicating better cost control and operational efficiency despite rising employee and other operating expenses.
Profit before tax has shown a remarkable turnaround, climbing from a modest ₹659.74 crores in 2019 to ₹2,933.70 crores in 2025. The bank recovered from a loss before tax in 2020, reflecting resilience amid challenging conditions. Correspondingly, profit after tax rose sharply to ₹2,082.46 crores in 2025, compared to ₹464.89 crores in 2019, with earnings per share increasing to ₹18.91 from ₹8.35.
Margins have strengthened notably, with the operating profit margin (excluding other income) improving to 68.12% in 2025 from 53.92% in 2019. The PAT margin also expanded to 16.61% in 2025, a significant improvement from 6.06% six years prior.
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Asset Quality and Capital Position
The bank’s asset quality has improved significantly, with gross non-performing assets (NPAs) declining from ₹6,221.35 crores in 2019 to ₹3,604.84 crores in 2025. Net NPAs have also reduced markedly to ₹818.07 crores from ₹3,239.61 crores over the same period. This improvement is reflected in the net NPA ratio, which dropped to 0.79% in 2025 from 4.89% in 2019, signalling enhanced credit risk management.
Capital adequacy ratios have strengthened, with the total capital adequacy ratio rising to 16.29% in 2025 from 12.46% in 2019, and Tier 1 capital ratio increasing to 13.96% from 10.6%. Provision coverage ratio also improved to 90.28%, indicating robust provisioning against potential credit losses.
Balance Sheet and Deposits
J&K Bank’s total assets expanded from ₹1,08,872.10 crores in 2020 to ₹1,69,468.46 crores in 2025, driven by growth in advances and investments. Advances increased steadily to ₹1,04,198.72 crores in 2025 from ₹64,399.07 crores in 2020, while investments rose to ₹41,212.66 crores from ₹23,052.24 crores. Deposits grew robustly to ₹1,48,569.46 crores in 2025 from ₹97,788.23 crores in 2020, reflecting strong customer confidence and market presence.
CASA (current and savings account) ratio, a key indicator of low-cost deposits, moderated to 47.01% in 2025 from 56.84% in 2021, though the absolute CASA amount increased to ₹69,844 crores, supporting stable funding costs.
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Cash Flow and Operational Footprint
Cash and cash equivalents have shown a positive trend, with closing balances rising to ₹9,759 crores in 2025 from ₹8,177 crores in 2024. The bank recorded a net increase in cash and cash equivalents of ₹1,582 crores in 2025, reversing prior years’ declines. This improvement supports liquidity and operational flexibility.
Operationally, the bank has expanded its branch network to 1,019 branches in 2025 from 940 in 2019, and increased ATMs to 1,424 from 1,291, enhancing customer reach and service delivery.
Summary
J&K Bank’s historical performance reveals a strong recovery and growth trajectory, with consistent increases in income, profitability, and asset quality. The bank has successfully managed to reduce its NPAs, improve capital adequacy, and expand its balance sheet and deposit base. While CASA ratio has moderated, the absolute CASA amount and overall deposits have grown, supporting stable funding. Operational expansion through branches and ATMs further complements its financial progress. These factors collectively position J&K Bank as a steadily strengthening player in the banking sector.
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