Notably, the agency has re-affirmed the rating in view of the Banks turnaround in terms of growth, profit, improvement in asset quality, capital infusion and comfortable liquidity position.
Meanwhile, the Banks liquidity coverage ratio was 368.69 % at H1 of FY2019, which is over four times the regulatory requirement of 90%.
Furthermore, J&K Banks 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 Banks asset-liability tenure is also well supported by a high CASA ratio of 49.3%.
Having a high systemic importance, J&K Bank is a dominant player in strategically important state of Jammu and Kashmir, where it plays the major role in economy besides acting as the agent of RBI.
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.
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