Srinagar, Apr 17: J&K Bank share hit a 52-week high today at Rs 930. The rise in the share price came in the wake of policy rate cuts announced by Reserve Bank of India (RBI) in its Annual Monetary Policy 2012-13 today.
 With a view to boost growth, the RBI cut the policy rates by 50 basis points fixing the repo rate at 8 per cent and reverse repo rate at 7 per cent.
 Commenting on the RBI move, Chairman and CEO, J&K Bank, Mushtaq Ahmad said, “It is certainly a welcome step that will ensure more liquidity into the banking system. It will help banks like ours, which have immense regional and pan-India lending opportunities.”
 About passing on the benefit to the customers, Mushtaq said: “We will be more than happy to pass on the benefit of the cut to the borrowers.  Though seemed temporary, the initiative is an act of rebalancing towards checking inflation. The rate cut scenario will also allow us generate volumes, customer base and remain competitive outside J&K.”
 Meanwhile, Ahmedabad based Broking House, Shah Investors Home Ltd (SIHL) which is also a member of National Securities Depository Ltd (NSDL), has recommended `Buy` on Jammu & Kashmir Bank with a price target of Rs 1,056 as against the current market price (CMP) of Rs 922 in its report today.
 SIHL has enumerated the Bank’s undisputed leadership in J&K state, business growth to pick up, significant improvement in asset quality, boost in CASA ratio and focus on J&K state as strong reasons for their recommendations.

Lastupdate on : Tue, 17 Apr 2012 21:30:00 Makkah time
Lastupdate on : Tue, 17 Apr 2012 18:30:00 GMT
Lastupdate on : Wed, 18 Apr 2012 00:00:00 IST