J&K Bank share hit a 52 week high today at Rs 930, which is up 3.43 percent. The rise in the share rode upon the optimistic view about the rate cuts announced by Reserve Bank of India (RBI) in its Annual Monetary Policy 2012-13.
Commenting upon the RBI move, Chairman and CEO J&K Bank Mushtaq Ahmad said, "It is certainly a welcome step from the RBI to ensure more liquidity into the banking system through a repo rate cut. It will help banks like ours, which have immense regional and pan-India lending opportunities."
"We will be happy to pass on the benefit of cut to borrowers. Though seemed temporary, the initiative is an act of re-balancing towards checking inflation. The rate cut scenario will also allow us generate volumes, customer base and remain competitive outside the J&K State."
Meanwhile, Ahmadabad 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, business growth to pick up, significant improvement in asset quality, boost in CASA ratio and focus on J&K as strong reasons for their recommendations.
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