Srinagar, Feb 9:(KNS)  India Ratings has revised the ‘Outlook’ on J&K Bank from ‘Negative’ to ‘Stable’ while affirming the ‘IND A+’ rating to Bank’s Basel III compliant Tier II bonds.

The rating agency, in its communication to the Bank, has attributed the key drivers for rating of the Bank to its systemic importance for the region, adequate Government support and liquidity, maintained asset quality, ongoing improvement in profitability and operational process and strengthened low cost CASA Franchise.

Acknowledging the improving financial and other parameters of J&K Bank, the ratings couldn’t have come at a better time, for it will enhance the Bank’s standing further in the markets as the Bank has already expedited its capital raising plans.

The rationale that leads to a positive rating action for banks, as per the communication from the agency, involves the ‘ability of the bank to increase capital buffers significantly and maintain it sufficiently above regulatory requirements on a sustainable basis, expansion in margins and process improvement measures, stable profitability from the core lending operations and no material deterioration in the asset quality from 1HFY22 levels.’

Pertinently, the Bank in its results declared on Tuesday posted Rs 173.95 Cr as net profit for the third quarter ended December 31, 2021, which is 164% up from Rs 65.94 Cr recorded for the third quarter of the last financial year. (KNS)