Srinagar, February 9 🙁KNS) India Ratings has revised J&K Bank’s “outlook” from “negative” to “stable” while confirming the Bank’s Basel III-compliant Tier II bond “IND A+” rating.
The rating agency, in its communication to the Bank, attributed the main drivers of the Bank’s rating to its systemic importance to the region, adequate government support and liquidity, maintaining asset quality, the continuous improvement of profitability and the operational process and the strengthening of the low cost Franchise CASA.
Recognizing the improved financial and other metrics of J&K Bank, the ratings could not have come at a better time, as they will further strengthen the Bank’s position in the markets, as the Bank has already accelerated its plans to raise capital.
The rationale that leads to positive rating action for banks, according to the agency’s communication, involves the “bank’s ability to significantly increase capital buffers and maintain them sufficiently above regulatory requirements. on a sustainable basis, margin expansion and process improvements measures, stable profitability of core lending operations and no material deterioration in asset quality from 1HFY22 levels.
Relevantly, the Bank in its results reported on Tuesday showed Rs 173.95 Cr as net profit for the third quarter ended December 31, 2021, 164% higher than Rs 65.94 Cr recorded for the third quarter of last financial year. . (KNS)