Jammu and Kashmir Bank has reported a 35% increase in net profit to Rs 421 crore for the third quarter ended on December 2023. The rise was attributed to a decline in bad loans and improvement in core income. The bank had earned a net profit of Rs 311 crore in the same period last year.

The total income of the bank increased to Rs 3,063 crore in the quarter, compared to Rs 2,682 crore in the previous fiscal quarter. The bank's interest income also rose to Rs 2,881 crore during the third quarter, up from Rs 2,441 crore in the same period last year.

The gross non-performing asset (NPA) ratio improved to 4.84% as of December 31, 2023, from 7.25% a year ago. The net NPA also declined to 0.63% compared to 2.08% at the end of December 2022.

The bank raised equity share capital of Rs 750 crore through Qualified Institutional Placement in December 2023, resulting in an improved Capital Adequacy Ratio of 14.18% compared to 13.82% in December 2022.

Overall, J&K Bank's strong performance in the third quarter was driven by the reduction in bad loans and improved financial indicators.