J&K Bank was established in 1938 and commenced business in 1939. It operates as a universal bank in Jammu and Kashmir and acts as a specialized bank in the rest of the country. It also offers fixed deposits at attractive interest rates for short, medium and long term deposits.
The updated list of J&K Bank FD Rates, for Regular and Senior Citizen, is listed below:
|Tenure||Regular FD Rate||Senior Citizen FD Rates|
|Upto Amount||Rs. 1 Crore||Rs. 1 Crore|
|7 days to 30 days||5.00%||5.5|
|31 days to 45 days||5.50%||6|
|46 days to 90 days||6.25%||6.75|
|91 days to 180 days||6.75%||5.25|
|181 days to 270 days||6.85%||7.35|
|271 days to less than 1 year||6.90%||7.4|
|1 year to less than 3 years||6.75%||7.25|
|3 years to less than 5 years||6.90%||7.4|
|5 years to 10 years||6.80%||7.3|
The bank offers attractive interest rates for short term fixed deposits. For a minimum tenure of 30 days, the rate of interest offered is 5.00% p.a. The rate of interest increases by a huge margin of 3% thus making it 7.00% p.a. for a tenure period of 60 and 90 days. The rate of interest is upped by 1.00% from 7.00% p.a. to 8.00% p.a. for a tenure of 181-270 days. A tenure of up to one year earns a rate of interest of 8.25% p.a.
It offers a higher rate of interest for medium and long term fixed deposits. A medium term tenure ranging from 1 to 2 years earns a rate of interest of 9.00% p.a. A rate of interest of 8.75% p.a. is levied on term deposits of 3 and 4 years and a tenure of 5 years earns an interest of 8.50% p.a.
J&K Bank offers an additional rate of interest of 0.50% higher than the prescribed rates. The highest rate of interest offered for senior citizens at 9.25% p.a. for a tenure ranging between 1 to 2 years.
Recently, the shares of Jammu & Kashmir (J&K) Bank came down to a level of 98.10%. This level is below Rs.1000 from its previous level of Rs.1800. The J&K Bank has been under tremendous pressure after witnessing this decline for the first time in years. This decline also affects the asset quality and profitability of the bank as the rating agency CRISIL has rated Jammu & Kashmir Bank’s fixed deposits from AA+/stable to AA/negative, which is a descending order. However, the short term debt instruments possessed by the bank have been confirmed at A1+ by the rating agency. This is an indication of the healthy resource profile the bank has, and also the continued support the bank is likely to receive even during its time of crisis.
4th April 2015