J&K Bank Q3 Profit Rises 10.7% Despite NII Dip; Asset Quality Improves

• J&K Bank reported a 10.7% YoY increase in net profit to ₹588 crore for Q3, up from ₹531 crore last year.
• Net Interest Income (NII) saw a marginal decline of 1.3% YoY, falling to ₹1,489 crore from ₹1,509 crore.
• Asset quality improved significantly, with gross NPAs easing to 3% (from 3.32% QoQ) and net NPAs to 0.68% (from 0.76% QoQ).
• The bank plans to raise up to ₹750 crore in equity via QIP and ₹500 crore through Basel III-compliant Tier 2 bonds to strengthen its capital base.
• J&K Bank was recently penalized ₹3.31 crore for non-compliance with financial inclusion, KYC norms, and loan regulations.

Why It Matters: J&K Bank's Q3 profit grew due to improved asset quality, despite a slight dip in net interest income.