Shares of Jammu and Kashmir Bank were trading higher on Monday, January 5, after the lender reported a steady improvement in business performance for the third quarter of FY26, led by strong growth in advances and deposits.
In a provisional quarterly update released on Friday, the bank said its total business rose 13.34% year-on-year to Rs 2.72 lakh crore as of December 31, 2025, compared with Rs 2.40 lakh crore in the corresponding period last year.
Advances and deposits drive growth
The improvement was primarily driven by robust lending activity. Gross advances increased 17.26% YoY to Rs 1,16,247.92 crore, up from Rs 99,133.35 crore a year earlier, reflecting sustained momentum across lending segments.
Total deposits grew 10.58% YoY to Rs 1,55,861.35 crore, compared with Rs 1,40,947.14 crore as of December 31, 2024. The bank said deposit growth during the quarter was supported by both retail and institutional inflows, indicating steady customer engagement.
CASA ratio declines
However, growth in low-cost deposits remained muted. CASA deposits stood at Rs 68,736.27 crore, up just 1.25% YoY, resulting in a decline in the CASA ratio to 44.10%, from 48.17% a year ago. The lower ratio suggests a higher contribution from term deposits in the overall deposit mix.
Investments edge lower
On the investment side, gross investments declined marginally by 2.07% YoY to Rs 40,535.76 crore, compared with Rs 41,394.29 crore in the year-ago period.
Recent financial performance
In the previous quarter, Q2 FY26, Jammu and Kashmir Bank had reported a 1.91% sequential increase in net profit to Rs 494.11 crore, even as total income declined 2.04% QoQ to Rs 3,446.71 crore. On a year-on-year basis, net profit had fallen 10.31%, while revenue rose marginally 0.79%.
Stock reaction
The market responded positively to the Q3 business update. The stock had closed at Rs 105.42 on January 2, up 2.65%, and was trading further higher in early deals on Monday.
The bank clarified that all figures disclosed are provisional in nature and subject to audit and review.
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