Moody’s negative ranking won’t impact JK Bank: Experts, Bankers
Srinagar Nov 10: Even as Moody’s downgrading Indian banking system outlook to “negative” has sent shock waves in the banking sector, state’s premier financial institution, J&K Bank, won’t get affected, experts and bankers said.
Senior executives of the J&K Bank categorically rejected any impact on its business by the global rating firm’s downgrading ratings for Indian banks.
“J&K Bank is fully protected. The negative ranking won’t have any impact on our business,” said a senior executive of the bank.
Experts said: “The Bank should not feel concerned about this ranking. It has strong fundamentals. And, it has a strong and loyal customer base in the state.”
However, some experts said: “If at all this ranking will have any impact, it is then the Reserve Bank of India that will have to tackle it and issue guidelines to the banks as to how to deal with it.”
Experts said: “It is not the problem for single bank. It is for all banks as a whole.”
A senior official of the HDFC Bank said: “The bigger impact of Moody’s ranking will be on private banks, which may face solvency issues as compared to other government owned banks.”
To mention, global ratings firm Moody’s Wednesday downgraded the outlook of the Indian banking system to “negative” from “stable” amid an economic slowdown, which is affecting asset quality, capitalisation and profitability.
“With asset quality, given the tightening environment, we anticipate that it will deteriorate over the next 12-18 months, thereby causing an increase in provisioning needs for the banks in FY2012 and FY2013,” Moody’s Vice-President and Senior Analyst Vineet Gupta had said.
A “negative” outlook is one that is characterised by volatility and uncertain conditions, according to Moody’s.
Interestingly, the central government had immediately downplayed the ranking stating that the Non Performing Assets (NPAs) of the banks in India were in good position as compared to their global peers.
Lastupdate on : Thu, 10 Nov 2011 21:30:00 Makkah time
Lastupdate on : Thu, 10 Nov 2011 18:30:00 GMT
Lastupdate on : Fri, 11 Nov 2011 00:00:00 IST
- MORE FROM BUSINESS
- JK’s maiden drug policy in December
- BSNL special scheme for students, incentives on landlines
- Moody’s negative ranking won’t impact JK Bank: Experts, Bankers
- Government to raise post office savings deposit interest to 4 pc
- Govt neglecting agri-research; more funds sought in 12th plan
- India initiates major free trade move in SAARC
- Companies plan double-digit hike for inflation-hit employees
GK NEWS NETWORK
Srinagar, Nov 10: Former Chief Minister and patron of Peoples Democratic Party (PDP) Mufti Muhammad Sayeed on Thursday welcomed outcome of talks between Prime Minister Dr Manmohan Singh and Pakistan Prime More
- Srinagar City
‘280 more join PC’
GK NEWS NETWORK
Srinagar, Nov 10: Buoyed by entry of more people from other parties to Srinagar wing of Peoples Conference, the PC Chairman Sajad Lone on Thursday said time had come to take the City to “new heights of More
BOPEE to conduct medical entrance test in JK: Chib
Jammu, Nov 10: Minister for Medical Education, Technical Education, Youth Services and Sports R S Chib on Thursday said that the medical entrance 2012-13 shall not be covered under Medical Council of India More
- South Asia
Islamabad, Nov 10: Six militants along with 25,000 kg explosives have been arrested in Pakistan's Punjab province, a media report said. They were arrested Wednesday in the suburbs of the province More
Van (Turkey), Nov 10: A Japanese aid worker was among 10 people killed by a second earthquake in eastern Turkey, and angry residents protested today that authorities should have closed down two collapsed More