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J&K Bank’s long term Issuer Rating reaffirmed at ‘AA’

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Srinagar, Dec 7: India Ratings has reaffirmed J&K Bank’s Long term issuer rating at ‘IND AA’. Instruments with AA rating are considered to have high degree of safety regarding timely servicing of financial obligations and carry very-low credit risk.

Notably, the agency has re-affirmed the rating in view of the Bank’s turnaround in terms of growth, profit, improvement in asset quality, capital infusion and comfortable liquidity position.

Meanwhile, the Bank’s liquidity coverage ratio was 368.69 % at H1 of FY2019, which is over four times the regulatory requirement of 90%.

 

Furthermore, J&K Bank’s 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 Bank’s 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.

Though the outlook has been revised to negative, the revision has been done as the rating agency perceives capitalization pressure in view of the bank’s high growth aspirations. The bank, however, is confident of maintaining capital over and above the regulatory requirement along with a comfortable cushion.


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JK Bank quarterly results: Market experts predict 65% long-term upside potential

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Srinagar, Jan 20: J&K Bank results for the third quarter have come up with numbers having enough indicators to tell the market pundits that the bank is bound to see a positive growth in the coming days, starting the current quarter.
The bank has exceeded expectations according to the market experts who say the numbers are quite assuring and the script is being strongly recommended for buying with upside potential of 65% in the long term.
As per recommendations by major broking houses like Prabhudas Leeladhar, ICICI Direct, Anand Rathi and Elara Securities, the bank looks strong in long term perspective. At the current price the stock is a great investment opportunity to those interested in the stock market.
Commenting upon the expected move of J&K Bank, Rakesh Kumar, Analyst at Elara Securities said in a written statement: “Jammu & Kashmir Bank’s operating performance was above market estimates as margin improved by 22bp QoQ (basis points Quarter-on-Quarter) due to higher credit yield.”
Kumar, as per the statement, said that lower-than-expected provisions and higher operating profit beat “led to significantly higher net profit of Rs 1.07bn versus our estimates of Rs 0.17bn.”
He added on the balance sheet front, credit grew by 12 per cent YoY while deposits witnessed growth of 18 per cent YoY.
“Within deposits, the rest of India’s (RoI) term deposits grew at an average 48% over the past two quarters, and we believe that such a continued phenomenon will result in increased cost of funds over the long term,” Kumar said.
He said that JKBK has exposure worth Rs 13.5 bn to stress-laden IL&FS Group, of this, the bank has reclassified exposure as sub-standard in Q3FY19, and this resulted in higher slippages at Rs 10.3bn (past two quarters average at Rs 5.1bn), and, as a consequence, both GNPA and NNPA saw a sharp uptick. However, despite higher credit cost, coverage ratio at 66 per cent was close to its past four-quarters average at 68 per cent.
In sync with Elara Securities views, Simi Bhaumik, Technical Equity Analyst (Offficially registered with SEBI) told Zee Business online: “Technically the J&K Bank strip looks strong in long-term perspective. In short-term, the stock has moved from Rs 39 levels to Rs 41 levels. If it breaks the Rs 41-42 levels, it can move for its another resistance at Rs 48. After breaking this level and sustaining above that, one can expect the Rs 65 target.”

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Khyber Gulmarg wins best destination hotel award 2018, again

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Srinagar, Jan 20: The Khyber Himalayan Resort & Spa, Gulmarg’s first luxury resort, has once again been awarded by Outlook Traveller, India’s prestigious travel magazine.
At the recently held Outlook Traveller Boutique Hotels Awards 2018, the resort was conferred with the Best Destination Hotel Award.
The 3rd edition of the Outlook Traveller Boutique Hotel Awards was held in Haridwar recently where the best boutique properties around the country were awarded for their contribution to the hospitality industry.
The chief guest for the night was Satpal Maharaj, the Minister of Tourism, Government of Uttarakhand.
“We are truly overwhelmed with the response from both guests and traveller writers and of course the eminent jury. This honour is testimony to the hard work by the team at The Khyber ensuring a superlative, international class guest experience and a memorable time in Gulmarg enjoying the natural beauty and activities available all year round,” said Umar Tramboo, MD, Pinnacle Resorts Pvt. Ltd, promoter of The Khyber Himalayan Resort & Spa, Gulmarg.
In a short span, since it opened six years ago, The Khyber Himalayan Resort and Spa has been hugely appreciated for its impeccable service, warm hospitality, and facilities at par with international standards.
The Khyber has consistently received recognition from several hospitality and travel awards including Condé Nast Traveller India, the Last Word in Travel, as Favourite Boutique Hotel –India, for six consecutive years.
In addition to luxurious guest rooms, The Khyber has a Wellness Block, which houses the world-class international spa, The Khyber Spa by L’OCCITANE along with a state of the art gym with the latest equipment, separate steam and sauna chambers for men and women. It also offers an impressive heated indoor pool offering dramatic views of the mountain ranges.
About the Outlook Traveller Boutique Hotel Awards
Outlook Traveller Boutique Hotel Awards 2018 are meant to celebrate an industry that is well in its prime and will remain so long as people seek new experiences and retain their wanderlust.
These are much coveted travel awards, which are given to brands that have left an everlasting impression on their guests through their hospitality and services.
The esteemed jury members along with EY, the process advisors for the event, made the celebrations on the banks of the holy Ganga a great success.
The jury for the 2018 edition was: Aman Nath, chairman, Neemrana Hotels; Dilip Puri, founder & CEO, Indian School of Hospitality; fashion designer Anupamaa Dayal; Anurag Mallick & Priya Ganapathy of Red Scarab Media; and Charukesi Ramadurai, travel writer and blogger.

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Delhi HC grants protection to JK rape victim, her husband

Press Trust of India

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New Delhi, Jan 20: An alleged rape victim and her husband, who have temporarily shifted here from Jammu and Kashmir apprehending threat to their lives, have been given protection by the Delhi High Court.
The high court was informed by the couple that personal circumstances forced them to leave their native place and made serious allegations against some police officials and political workers.
The couple claimed that the woman was allegedly physically assaulted and raped and the man was kept in detention for several days by the Jammu and Kashmir police and now he was out on bail.
The court directed the concerned DCP of Delhi Police to look into the matter and forthwith provide protection to the couple and that their address shall not be disclosed to any other person except the government counsel.
“The petitioners’ (couple) residence in the NCT of Delhi shall not be disturbed, except by due process of law and with prior intimation to this court,” Justice Najmi Waziri said.
The couple said they had approached the Jammu and Kashmir High Court in September 2018 seeking protection and the court had directed the state to look into the matter of providing protection to the petitioners.
However, they claimed that no protection was accorded to them and they apprehend a grave threat to their life, limb and liberty and were constrained to temporarily shift to Delhi.
The Delhi High Court directed the concerned DCP to look into the matter and forthwith provide due protection to the couple and asked the police officials to give their numbers to them so that they can reach out for help in case of any exigency.

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