The Jammu & Kashmir Bank Limited has informed the Exchange about Credit Rating
J&KBANK · price
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India Ratings and Research (Ind-Ra) has affirmed J&K Bank's long-term issuer rating and Basel III compliant Tier II bonds at 'IND AA-' with a Stable outlook. The total size of the Tier II bond issue was reduced from INR40 billion to INR35 billion, with one INR5 billion bond (INE168A08046) fully repaid in December 2024. The bank reported steady asset quality with gross NPAs at 3.5% and net NPAs at 0.8% as of June 2025, supported by ROA of 1.3% in FY25 and a CET-1 ratio of 12.7%. Key concerns flagged by the agency include high geographic concentration in the J&K region (71% of advances, 88% of deposits) and elevated SMA-1 and SMA-2 levels at 7.3% of total advances.
The rating affirmation at AA- with a stable outlook is a neutral-to-slightly-positive signal, indicating the agency's continued confidence in the bank's financial health and supporting stable borrowing costs. For shareholders, the lack of an upgrade suggests the bank still needs to reduce its J&K geographic concentration and bring down stressed asset levels to earn a higher rating.