Fitch affirms Jammu and Kashmir Bank

Fitch Ratings said it affirmed Jammu and Kashmir Bank Ltd.'s national long-term rating at AA(ind) with a stable outlook, individual rating at D and its Rs. 6 billion lower tier 2 debt program at AA(ind).

JKB's national Long-term rating reflects higher expectation of support from government of India given the continuing dominance of banking activities in the Indian state of Jammu and Kashmir and its exclusive position as banker to the state government, together with the improved fiscal position of the Indian government, according to the agency.

The individual rating reflects the bank's stable financials, driven by its strong retail deposit franchise and robust risk management systems, the agency said.

The rating is constrained by JKB's regionally concentrated asset portfolio in J&K (50% loans), Fitch noted.

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