Credit rating agency, Credit Analysis & Research (CARE) has revised rating of Jammu & Kashmir Bank’s Lower Tier II Bonds worth Rs 600 crore to ‘AA-’ from ‘AA’. The revision in the rating takes into account the increase in NPAs during H1FY15.
The rating continues to factor Jammu & Kashmir Bank’s long track record of operations of 75 years, majority ownership by the Government of Jammu & Kashmir, comfortable capitalization levels marked by consistently high Tier I Capital Adequacy Ratio (CAR), strong low-cost deposit base and moderate liquidity profile.
Jammu & Kashmir Bank is the only state government owned bank in the country with the Government of J&K (GoJK) holding around 53% shareholding in the bank. JKB holds a monopolistic position in the state of J&K constituting majority of the credit and deposits in the state.
