The third quarter operational performance of Jammu & Kashmir Bank has shown a strong 2025-26 financial year with a sharp growth of its lending activities in the form of double-digit growth. Based on the preliminary business reports published by the bank, its gross advances registered a significant increase of 17.26% on an annual basis. Its gross advances amounted to ₹1,16,247.92 crore, which was significantly higher than ₹99,133.35 crore of the same period the previous year. This expansion in credit offtake throws focus on the fact that the bank is actively contributing to the economic activity in its main areas of operation.

Substantial expansion and steady increase in deposits

Jammu & Kashmir Bank also registered a healthy upward trend in the overall business volume of the business in the quarter. It reached a total business of ₹2,72,109.27 crore, comprising deposits and advances, as of the end of December 2025. This was an increase of 13.34% over the ₹1,240,080.49 crore as at December 31, 2024. The fact that the bank has grown its business by more than ₹32,000 crore in just one year shows a growing market share and suggests the effectiveness of its strategic plans to grow its loan book and ensure that its business transactions run smoothly across its different sections of business in the bank.

On the liability side, the bank indicated a consistent growth in its deposit base, which is vital to financing its vigorous lending expansion. The total deposits increased by 10.58% to ₹1,55,861.35 crore on December 31, 2025, compared to ₹1,40,947.14 crore last year. Current Account and Savings Account (CASA) deposits within this deposit structure also registered a slight growth of 1.25% and were ₹68,736.27 crore.

It is remarkable that the CASA ratio, that is, the percentage of low-cost deposits in the total deposit mix, was decreasing. This ratio was 44.10% by the close of the third quarter, compared to 48.17% the year before, implying that the bank was moving towards term deposits as part of the customer base in a fluctuating interest rate environment.

Investment trends and stock market reactions

The main banking business of lending and deposits experienced growth, but on the other hand, a slight contraction of the investment portfolio of the bank was experienced in the same period. Gross investments have decreased by 2.07%, and as of December 31, 2025, gross investments are at ₹40,535.76 crore, whereas a year ago they stood at ₹41,394.29 crore. This change implies possible repositioning of resources to more rewarding advances than passive investments. Jammu and Kashmir Bank is also able to offer its various banking products and services under three major segments of support services, depository services, and third-party services that allow it to have a wholesome approach to financial management of both its retail and corporate customers.

The tentative Q3 performance is after a quarter of fluctuating financial performance in the previous quarter. In the second quarter of FY26, the bank recorded a 1.91% growth in the net profit on a sequential basis, and it stood at ₹494.11 crore, even though the total income declined by 2.04% in the second quarter. Compared to the same period of the year, the net profit has reduced by 10.31% in Q2, which was a slight increment in the revenue by 0.79%. Although these are fluctuating quarterly earnings, the market reacted in a positive manner to the recent growth data of the bank. On January 2, 2026, before the most recent provisional disclosure, Jammu Kashmir Bank shares surged 1.29% to settle at ₹102.35 on the BSE.

Conclusion

Jammu & Kashmir Bank has now stepped into the last quarter of the 2025-26 financial year with a definite impetus in its developing credit and the general enhancement of the business. The 17.26% increase in gross advances and the 13.34% increase in total business indicate the inherent strength of the bank in its core banking business.

Although the decrease in the CASA ratio and the minimal increase in gross investments are aspects that require strategic changes, the increase in both the deposits and advances by more than 10 points makes the bank a robust player in the banking industry of the region. With the bank still trying to sail through the changing financial environment with its specialized divisions, it is geared towards maintaining the growth path to provide long-term value to its stakeholders.