CRISIL has reaffirmed the rating of fixed deposit of J&K Bank to FAA- and removed it from 'Rating Watch with Negative Implications'. ‘FAA –’ reflects ‘very high degree of timely payments of interest and principal’.
Notably, the rating agency had on November 8, 2016 placed the rating on ‘Watch with Negative Implications” on account of the pressure on asset quality compounded by the increase in stress in the advances to small and medium sized enterprises, MSME’ and corporate within certain regions of J&K. This was in addition to the continued slippages from its large ticket corporate loan book.
Pertinently CRISIL has also reaffirmed the bank's short-term fixed deposits and certificate of deposits programme at 'CRISIL A1+', indicating the ‘very strong degree of safety regarding timely payment of financial obligations’.