Only Kashmir News Desk
Srinagar, August 22: India Ratings, a leading rating agency under the Fitch Group, has upgraded Jammu and Kashmir Bank’s long-term issuer rating from INDA+ to INDAA-, with a stable outlook. This upgrade highlights the bank’s significant role in the Union Territories of J&K and Ladakh, its strengthened financial position, and improved profitability.
Key drivers for the upgrade include the bank’s systemic importance to J&K, where it holds a strong market share and serves as the designated agent bank for the region. The bank has received consistent financial support from the governments of J&K and Ladakh, underscoring its critical role in the local economy. Additionally, the bank has bolstered its capital buffers, with its CET 1 ratio improving to 12% in FY24, alongside a marked improvement in asset quality, with GNPA reducing to 3.9% and NNPA to 0.8%.
The bank’s deposit profile also remains strong, with a CASA ratio of 49.8%, higher than peer banks, and a comfortable credit-to-deposit ratio of 71%. These factors collectively contribute to the bank’s stable and robust financial standing.
Expressing his satisfaction with the upgrade, MD & CEO Baldev Prakash said, “The rating upgrade positions us favorably for future growth and encourages us to serve our customers with renewed vigor and confidence. It is a testament to our resilience and hard work as an institution, reflecting our growing strength as we continue to align our strategies with the evolving needs of our customers and stakeholders.”
Prakash also highlighted the positive impact of the improving socio-political environment in J&K and Ladakh on the bank’s progress. With ongoing support from the J&K UT Government, the bank remains committed to driving economic transformation in the region, particularly in sectors like tourism, agriculture, and small businesses, ensuring not just growth but flourishing development.
India Ratings emphasized that the upgrade reflects the bank’s enhanced capital position, continued improvement in profitability, and the stable socio-political climate in its core business areas. The rating underscores J&K Bank’s strong market position and significant franchise in the Union Territories of J&K and Ladakh, positioning it well for future challenges and opportunities.
