Srinagar: India Ratings has reaffirmed J&K Bank’s Long term issuer rating at ‘IND AA’. Instruments with AA rating are considered to have high degree of safety regarding timely servicing of financial obligations and carry very-low credit risk.
“Notably, the agency has re-affirmed the rating in view of the Bank’s turnaround in terms of growth, profit, improvement in asset quality, capital infusion and comfortable liquidity position,” J&K Bank said in a statement.
“Meanwhile, the Bank’s liquidity coverage ratio was 368.69 % at H1 of FY2019, which is over four times the regulatory requirement of 90%.
Furthermore, J&K Bank’s Common Equity Tier 1 (CET 1) is at 8.66% for H1 of the FY 2019 and 9.24% for FY 2018 against regulatory requirement of 7.375% under Basel III, which is relatively better than that of its peer banks. J&K Bank’s asset-liability tenure is also well supported by a high CASA ratio of 49.3%. The Bank plans to increase its business by about 20% annually over next two years, which will be led by the growth within the state,” the statement added.