Excelsior Correspondent
SRINAGAR, Aug 23: India Ratings – a Fitch Group company has upgraded Jammu and Kashmir Bank’s rating from INDA+ to INDAA- with the outlook is stable.
The reason behind up gradation is the bank’s systemic significance for Jammu & Kashmir given its strong franchise and substantial market share in the UTs of J&K and Ladakh besides being the designated agent bank by the Reserve Bank of India for the UTs.
Expressing his pleasure over the upgrade, MD & CEO Baldev Prakash said, “The rating upgrade positions us favourably for future growth and encourages us to serve our customers with renewed vigour and confidence. While being a testament of our resilience and hard work as an institution, it also reflects our growing strength as we continue to align our strategies with the evolving needs of our customers and stakeholders. The stable outlook also reinforces our commitment to maintaining a robust financial profile while contributing to the economic growth of our operational geographies.”
“The improving socio-political environment in the UTs of J&K and Ladakh has really played a crucial role in our progress. And with continued support of our major share holder i.e. J&K UT Government, we will remain steadfast in our mission to support and drive the economic transformation of the region to see tourism, agriculture and small businesses not only grow but flourish”, he added.
The bank has received continued financial support from the Governments of the strategically important UTs as it plays a major role in the region’s economy.
With the CET 1 ratio improving to 12% in FY24, the asset quality metrics have consistently improved with GNPA of the bank declining to 3.9% and NNPA falling to 0.8% in line with peer banks. The bank’s CASA ratio has remained higher than it’s peers at 49.8% and credit to deposit ratio remaining comfortable at 71%.
The rating continues to highlight the bank’s strong market position and franchise in the UTs of J&K and Ladakh.
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