J & K Bank has reported 8% decline in net profit at Rs 584.54 crore for the quarter ended March 2025 (Q4FY2025). The bank has posted healthy 13% growth in net interest income (NII), while the core fee income of the bank declined 24% in Q4FY2025. The Net Interest Margin (NIM) of the bank improved to 3.88% in Q4FY2025 compared to 3.77% in the corresponding quarter of previous year.
On business front, the bank as has posted improved 10% growth in business with 10% surge in loan book. The asset quality of the bank has improved in Q4FY2025. Bank has maintained stable credit to deposit ratio at 72.0% at end March 2025 from 72.0% at end March 2024. However, the CASA ratio of the bank has declined to 47.0% at end March 2025 from 50.5% at end March 2024.

Asset quality improves: The bank has improved asset quality in Q4FY2025.

The fresh slippages of loans declined to Rs 198 crore in Q4FY2025 compared with 322 crore in previous quarter and Rs 325 crore in the corresponding quarter last year.

The recoveries of NPAs stood at Rs 192.15 crore, upgradations at Rs 92.95 crore and the write-off of loans was at Rs 348.66 crore in Q4FY2025.

The standard restructured loan book of the bank declined to Rs 544 crore end March 2025 compared to Rs 582 crore a quarter ago.

Provision coverage ratio was steady at 90.28% at end March 2025 compared to 89.67% a quarter ago and 91.58% a year ago.

The capital adequacy ratio of the bank stood at 16.3% with Tier I ratio at 14.0% at end March 2025.

The risk weighted assets of the bank has increased 7% YoY to Rs 99088 crore end March 2025,

Asset Quality Indicators: J & K Bank
'	Mar-25	Dec-24	Sep-24	Jun-24	Mar-24	Variation		'
						QoQ	YoY	'
Gross NPA (Rs Crore)	3604.84	4041.04	3916.26	3857.59	3956.19	-11	-9	'
Net NPA (Rs Crore)	818.07	898.08	813.39	727.58	736.85	-9	11	'
% Gross NPA	3.37	4.08	3.95	3.91	4.08	-71	-71	'
% Net NPA	0.79	0.94	0.85	0.76	0.79	-15	0	'
% PCR	90.28	89.67	90.54	91.57	91.58	61	-130	'
% CRAR - Basel III	16.29	15.09	14.99	15.07	15.33	120	96	'
% CRAR - Tier I - Basel III	13.96	12.71	12.70	12.81	13.09	125	87	'
Variation in basis points for figures given in percentages and in % for figures in Rs crore

'

Business Highlights:

Healthy business growth: The business of the bank has increased 10% YoY to Rs 255538 crore end March 2025, driven by 10% surge in advances to Rs 106985 crore. Deposits rose 10% to Rs 148552 crore at end March 2025.

CASA deposits ratio eases: The CASA deposits of the bank increased 3% YoY to Rs 69843 crore at end March 2025. The current account deposits increased 10% to Rs 16240 crore, while saving account deposits rose 1% to Rs 53604 crore end March 2025. The CASA ratio declined to 47.0% at end March 2025 compared to 50.5% at end March 2024, while declined from 48.2% a quarter ago. The term deposits have increased 18% to Rs 78709 crore end March 2025.

Loan growth improves: Advances growth was driven by retail loans rising 10% YoY to Rs 40652 crore at end March 2025, while credit to agriculture increased 7% to Rs 10128 crore and MSME 4% to Rs 20992 crore at end March 2025. The corporate credit has moved up 16% to Rs 35213 crore end March 2025.

Investment book of the bank increased 14% YoY to Rs 41213 crore at end March 2025. The SLR book moved up 7% to Rs 32083 crore, while non SLR book jumped 80% to Rs 9130 crore at end March 2025. The AFS book zoomed 104% to Rs 14175 crore, while HTM book declined 9% to Rs 26405 crore at end March 2025. The duration of the overall investment portfolio stood at 3.17 years end March 2025 compared with 3.29 years at end March 2024.

Margins improve yoy, decline qoq: The bank has shown 9 bps YoY jump in cost of deposits to 4.80%, while yield on advances declined 4 bps YoY to 9.44% in Q4FY2025. Thus, the NIM has improved 11 bps YoY, while declined 16 bps qoq to 3.88% in Q4FY2025.

Branch expansion: The bank has added 7 branches and 1 ATMs in Q4FY2025, taking overall tally to 1019 branches and 1424 ATM`s end March 2025.

Book value of the bank stood at Rs 118.2 per share at end March 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 110.2 per share at end March 2025.

Quarterly Performance

NII rises as NIM improves yoy: Bank has recorded 10% increase in the interest earned at Rs 3211.85 crore, while interest expenses increased 8% to Rs 1731.86 crore in Q4FY2025. NII improved 13% to Rs 1479.99 crore in the quarter ended March 2025.

Other non-interest income jumps: Bank has posted 24% decline in core fee income to Rs 67 crore, while the treasury segment witnessed losses of Rs 37 crore. However, the recoveries and other income jumped 239% to Rs 374 crore, leading to 80% jump in the overall non-interest income to Rs 404.31 crore in the quarter ended March 2025.

Expenses ratio rises: The operating expenses of the bank increased 25% to Rs 1084.28 crore, as employee expenses increased 51% to Rs 731.73 crore in Q4FY2025. Other expenses declined 8% to Rs 352.55 crore. Cost to income ratio increased to 57.5% in Q4FY2025 compared with 56.6% in Q4FY2024. Operating Profit increased 21% to Rs 800.02 crore in Q4FY2025.

Provisions and contingencies write back declines:The bank has written back provisions of Rs 9.16 crore. The loan loss provisions jumped to Rs 58.04 crore, while there was write back of investment provisions amounting to Rs 69.81 crore and standard asset provisions were also reversed amounting to Rs 1.54 crore. Other provisions fell 92% to Rs 0.39 crore.

Effective tax rate increased to 27.8% in Q4FY2025 from 22.9% in Q4FY2024. Net Profit declined 8% YoY to Rs 584.54 crore during quarter ended March 2025.

Financial Performance FY2025:

Bank has posted 18% increase in net profit to Rs 2082.46 crore in the year ended March 2025 (FY2025). The net interest income increased 11% to Rs 5793.82 crore, while non-interest income moved up 38% to Rs 1136.81 crore, pushing up net total income by 15% to Rs 6930.63 crore in FY2025. The operating expenses increased 7% to Rs 4000.84 crore, while provision and contingencies were written back amounting to Rs 3.91 crore. Profit before tax increased 23% to Rs 2933.70 crore in FY2025. The cost-to-income ratio improved to 57.7% in FY2025 compared to 62.2% in FY2024. An effective tax rate rose to 29.0% in FY2025 compared to 25.9% in FY2024. The net profit has increased 18% to Rs 2082.46 crore in FY2025.

J & K Bank: Results
Particulars	2503 (3)	2403 (3)	Var %	2503 (12)	2403 (12)	Var %
Interest Earned	3211.85	2910.18	10	12535.86	11212.37	12
Interest Expended	1731.86	1604.06	8	6742.04	6008.68	12
Net Interest Income	1479.99	1306.12	13	5793.82	5203.69	11
Other Income	404.31	224.56	80	1136.81	825.48	38
Net Total Income	1884.30	1530.68	23	6930.63	6029.17	15
Operating Expenses	1084.28	866.85	25	4000.84	3752.29	7
Operating Profits	800.02	663.83	21	2929.79	2276.88	29
Provisions & Contingencies	-9.16	-165.05	-94	-3.91	-107.69	-96
Profit Before Tax	809.18	828.88	-2	2933.70	2384.57	23
EO	0.00	0.00	-	0.00	0.00	-
PBT after EO	809.18	828.88	-2	2933.70	2384.57	23
Provision for tax	224.64	190.21	18	851.24	617.30	38
PAT	584.54	638.67	-8	2082.46	1767.27	18
EPS*(Rs)	21.2	23.2	'	18.9	16.0	'
Adj BV (Rs)	110.2	92.2	'	110.2	92.2	'
* Annualized on current equity of Rs 110.13 crore. Face Value: Rs 1, Figures in Rs crore
Source: Capitaline Corporate Database

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