J&K Bank stock not ripe for bottom-fishing

It is likely to extend Thursday's fall amid earnings downgrades and weak financial results

Jammu and Kashmir (J&K) Bank's share price fell as much as 18 per cent before closing with a net decline of 14 per cent in Thursday's trade as the new management laid out the future road map.

Parvez Ahmed, chairman and chief executive since October 6, told investors in a conference call on Thursday that the bank was looking to "deep clean" its balance sheet and aimed to take its provision coverage ratio (PCR) to about 90 per cent over the next six quarters, from 50 per cent currently. PCR is the amount of money a bank has kept