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The Jammu and Kashmir Bank recorded a strong double-digit jump in total business during the third quarter of the ongoing financial year, highlighting the trust of the customers in the institution, which is witnessing an expansion of deposits despite the adjustment in various schemes.

 

The latest business update shows that the assets of the bank increased 13.34 per cent year on year to Rs 2.72 lakh crore at the end of the December quarter, compared with the corresponding period last year.

 

The quarterly deposits witnessed a 10.58 per cent year-on-year increase to 1.55 lakh crore, indicating continued deposit mobilisation during the quarter.

The bank noted that the growth was driven by both retail and institutional deposits, despite a slower pace of small deposits.

 

According to the latest data, the bank's current account savings accounts (CASA) deposits also witnessed moderate growth of 68,736 crore at the end of the third quarter.

 

The CASA ratio witnessed a decline of nearly four per cent, settling at 44.10 per cent, compared with 48.17 per cent in the same quarter reported in the previous financial year.

 

The decline in the CASA ratio is attributed to a higher share of term deposits in the overall deposit mix, a trend witnessed across the entire banking sector, owing to higher interest rates offered by the banks and changes related to long-term capital gains (LTCG) taxation in 2025. The quarterly results also provide a detailed view of the bank’s strong performance.

 

The bank has, in recent years, focused on strengthening its balance sheet, improving asset quality and extending its advances and its deposit base.

Shares of Jammu and Kashmir Bank ended 1.37 per cent higher at ₹102.36 on the last trading day.

 

While the bank reported a steady increase in its term deposit schemes, offering attractive interest rates, the trend also reflects weaker consumer spending in Jammu and Kashmir, partly due to a significant rise in prices of fixed and movable assets in the UT.

 

Last year’s surge in gold prices has also deterred investors from investing in the precious metal, with the majority of people opting to put their money in deposit schemes for safe and steady returns.