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Jammu and Kashmir Bank Ltd

BSE Code : 532209 | NSE Symbol : J&KBANK | ISIN:INE168A01041| SECTOR : Banks |

NSE BSE
 
SMC down arrow

28.55

-1.10 (-3.71%) Volume 3366822

27-Sep-2022 13:14:54

Prev. Close

29.65

Open Price

29.95

Bid Price (QTY)

28.50(3667)

Offer Price (QTY)

28.55(999)

 

Today’s High/Low 30.25 - 27.95

52 wk High/Low 48.30 - 23.80

Key Stats

MARKET CAP (RS CR) 2850.79
P/E 3.52
BOOK VALUE (RS) 76.1666768
DIV (%) 0
MARKET LOT 1
EPS (TTM) 8.42
PRICE/BOOK 0.389277847553407
DIV YIELD.(%) 0
FACE VALUE (RS) 1
DELIVERABLES (%) 44.61
4

News & Announcements

15-Sep-2022

Jammu and Kashmir Bank Ltd - The Jammu & Kashmir Bank Limited - Annual General Meeting

14-Sep-2022

Jammu and Kashmir Bank Ltd - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

30-Aug-2022

Jammu and Kashmir Bank Ltd - The Jammu & Kashmir Bank Limited - Credit Rating

25-Aug-2022

Jammu and Kashmir Bank Ltd - Shareholder Meeting / Postal Ballot-Outcome of AGM

08-Aug-2022

Jammu & Kashmir Bank AGM scheduled

02-Aug-2022

Jammu & Kashmir Bank to convene board meeting

24-Jun-2022

Jammu & Kashmir Bank to convene board meeting

23-Jun-2022

Board of Jammu and Kashmir Bank to consider capital raising for FY23

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
AU Small Finance Bank Ltd 540611 AUBANK
Axis Bank Ltd 532215 AXISBANK
Bandhan Bank Ltd 541153 BANDHANBNK
Bank of Madura Ltd (Merged) 531966 BANKMADURA
Bank of Punjab Ltd(merged) 500070 BANKPUNJAB
Bank of Rajasthan Ltd(merged) 500019 BANKRAJAS
Centurion Bank of Punjab Ltd(merged) 532273 CENTBOP
City Union Bank Ltd 532210 CUB
CSB Bank Ltd 542867 CSBBANK
DCB Bank Ltd 532772 DCBBANK
Dhanlaxmi Bank Ltd 532180 DHANBANK
Equitas Small Finance Bank Ltd 543243 EQUITASBNK
Federal Bank Ltd 500469 FEDERALBNK
Fino Payments Bank Ltd 543386 FINOPB
Global Trust Bank Ltd (Merged) 500161 GLOBLTRUST
HDFC Bank Ltd 500180 HDFCBANK
ICICI Bank Ltd 532174 ICICIBANK
IDBI Bank Ltd(merged) 532235 IDBIBANK
IDBI Bank Ltd 500116 IDBI
IDFC First Bank Ltd 539437 IDFCFIRSTB
IndusInd Bank Ltd 532187 INDUSINDBK
ING Vysya Bank Ltd(Merged) 531807 INGVYSYABK
Karnataka Bank Ltd 532652 KTKBANK
Karur Vysya Bank Ltd 590003 KARURVYSYA
Kotak Mahindra Bank Ltd 500247 KOTAKBANK
Lakshmi Vilas Bank Ltd(Merged) 534690 LAKSHVILAS
Nedungadi Bank Ltd (Merged) 511264 NEDUNGBANK
RBL Bank Ltd 540065 RBLBANK
South Indian Bank Ltd 532218 SOUTHBANK
Standard Chartered PLC 580001 STAN
Suryoday Small Finance Bank Ltd 543279 SURYODAY
Tamilnad Mercantile Bank Ltd 543596 TMB
Times Bank Ltd (merged) 532252 TIMESBANK
Ujjivan Small Finance Bank Ltd 542904 UJJIVANSFB
United Western Bank Ltd(merged) 500430 UNIWESTBNK
Yes Bank Ltd 532648 YESBANK

Share Holding

Category No. of shares Percentage
Total Foreign 22570919 2.35
Total Institutions 8957692 0.93
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 22641270 2.36
Total Promoters 654098280 68.03
Total Public & others 253211700 26.33
Total 961479861 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Jammu and Kashmir Bank Ltd

Jammu And Kashmir Bank Limited (J & K), a state owned bank was incorporated in 01 October 1938 and commenced its business from 04 July 1939 at in Kashmir (India). As on 31 December 2020, the bank had a distribution network of 956 branches and 1382 ATMs across the country. It offers banking services under the three major divisions as Support services, Depository services and Third party services. The Bank operates mainly into four segments comprising of Treasury, Corporate/wholesale banking, Retail banking and other banking operations. According to the extended Central Laws of the State, Jammu & Kashmir Bank was defined as Government of Company as per the provision of Indian companies act 1956. In the year 1971, the Bank received the status of scheduled bank. RBI declared it as 'A' Class Bank in the year of 1976. During the year 1993, the Bank made tie up with Reuter News Agency for instantaneous information about global foreign currency rates and fluctuations. In the year of 1995, Banking Ombudsman Scheme was launched in June and a loan delivery system was introduced in April, which was used for large borrowers. During the year of 1998, J & K had introduced a new term deposit scheme under the title of Jana Priya Jamma Yojna carrying flexibility in the repayment schedule and in the same year the bank introduced Housing Loan and Education Loan Schemes. The Bank had entered into an agreement with IBA to connect its ATMs through a shared network in the year 1999. To offer Internet Banking and for its e-commerce initiatives, the bank made tie up with Infosys Technologies and also in the same year J&K Bank had entered into agreement with American Express to launch a co-branded credit card. J&K Bank had diversified into non-life insurance and depository business, apart from life Insurance and asset management business in the year of 2000. The Bank had launched Global Access Card (An International Debit Card) in association with Master Card International during the year of 2003. During the year 2004, J&K Bank agreed with ICICI Bank to share the ATM network. In the same year the bank had received the Asian Banking Award 2004 in Manila for its customer convenience programme. Signed MoU with Bajaj Tempo in the year of 2004. During the year 2005-06, J&K opened its branches in Chennai, Kanpur, Agra and Kolkata. Also in the same year introduced new product and services for rural finance. During the period of 2006-2007, the bank introduced various hi-tech and customer friendly products. The Bank and TATA Consultancy Services (TCS), Asia's largest IT company signed a Memorandum of Understanding (MoU) to signal their intent to work together to create an IT blue-print for the bank. Going forward with its renewed business strategy, J & K Bank had opened its 564th branch at Lassipora, Pulwama, Srinagar in July of the year 2008. During the financial year 2013-14, 92 new branches were established; thereby taking the number of branches to 777 as on 31st March 2014, spread over 20 states and one union territory. During the financial year 2013-14, 187 ATMs, both onsite & offsite, were commissioned thereby taking the number of ATMs to 800 as on 31st March 2014. During the financial year 2014-15, 40 new branches were established; thereby taking the number of branches to 817 as on 31st March 2015, spread over 20 states and one union territory. During the financial year 2014-15, 85 ATMs were commissioned thereby taking the number of ATMs to 885 as on 31st March 2015. During the year under review, bank increased its stake in JKBFSL by 100% by contributing Rs1000 lacs in share capital of the company, increasing its paid up capital to 2000 lacs for the year ended 31st March 2015 as against Rs1000 lacs as on 31st March 2014. During the financial year 2015-16, 40 new branches were established; thereby taking the number of branches to 857 as on 31st March 2016, spread over 20 states and one union territory. During the financial year 2015-16, 121 ATMs were commissioned thereby taking the number of ATMs to 1006 as on 31st March 2016. During the financial year 2016-17, 8 new branches were established; thereby taking the number of branches to 865 as on 31st March 2017, spread over 20 states and one union territory. During the financial year 2016-17, 90 ATMs were commissioned thereby taking the number of ATMs to 1096 as on 31st March.2017. During financial year 2018-19, 36 new branches were established, thereby taking number of branches to 938 as on 31st March 2019, spread over 20 states and one union territory. During the financial year 2018-19, 96 ATMs were commissioned thereby taking the number of ATMs to1294 as on 31st March 2019. During FY 2018-19, the Bank launched a bouquet of new products such as Gold Loan Scheme, Merchant Overdraft scheme and deploying Direct Selling Agents (DSA) in ROI (Rest of India) for housing loans. During the financial year 2019-20, 15 new branches were established, thereby taking the number of branches to 955 (including IARBs)as on 31.03.2020, spread over 17 states and 4 union territories. During the financial year FY19-20, 3 EBUs/USBs were established, 66 ATMs were commissioned thereby taking the number of ATMs to 1354 as on 31.03.2020. During the FY2020, the bank has allotted an preferential allotment of 15,65,92,546 equity shares of Re. 1/- each fully paid up for cash to the Government of Jammu and Kashmir at the issue price of Rs 31.93 per equity share.

Jammu and Kashmir Bank Ltd Chairman Speech

Dear Shareholder

It gives me immense pleasure to present the 84th Annual Report of the Bank and place before you the highlights of the Bank's performance for the FY2021-22. Details of the initiatives and achievements are provided in the enclosed Annual Report of the Bank.

It has been over six months since I assumed the responsibility of this wonderful institution as its first MD & CEO to take forward the momentum which your bank has gained in FY21.

Economic Outlook

After witnessing the slowdown in economy during the last two years due to COVID-19 pandemic, global economy has been on the path of recovery in FY2022. Going by the FY2021-22 results of banks, there is an unmistakable improvement in key financial metrics especially asset quality with reduced NPAs and improved profitability. And with strengthened balance-sheets, improved consumer and business confidence outlook from rating agencies backed by domestic demand; the banking sector looks poised for accelerated growth.

Although continuing Geo-Political strife marked by protracted Russia-Ukraine conflict coupled with the inflationary pressures have injected some moderation in the economic growth forecasts for FY 2023, however the easing of pandemic woes and some stability in the operating conditions of economy point towards a comparatively stable future outlook. Registering a growth of 8.7% in FY2022 as against the contraction of 6.6% in FY2021, Indian economy is expected to grow at 7.5% in FY2023, making it the fastest growing economy.

Bank's Performance

With your unflinching support and dedicated efforts of our staff, we have been able to register growth in all business segments in FY22, coinciding with the improvement in the economic activity. Profitability of your Bank has increased by 16%, registering a net profit of Rs. 501.56 Crore during FY2022. Net interest income of your Bank registered a growth of 6% to Rs. 975.50 Crores. Credit costs have declined significantly with Return on Assets as well as Return on equity increasing in FY2022 compared to FY2021. Your bank continued its focus on improving the asset quality while keeping special focus on recoveries and arresting fresh slippages.

Meanwhile, during the FY2021-22, your Bank registered a growth of over 6% in deposits with CASA ratio at 56.85% as of March 2022, which is among the best in the industry. Advances of your Bank also increased with 11% growth in retail advances - in line with the industry average. Priority sector loans grew by 9% during the year while as the corporate sector registered de-growth of 4%, owing to the bank's decision to focus lending primarily in retail sectors and mid-sized rated corporates only. Investment portfolio of your Bank increased by 10% to 0.33 Lakh Crore in FY2022, which are all domestic investments. The yield on investments is in line with the interest rate scenario and has come down to 5.65% from 6.25% in FY2021.

Moreover, Capital of your Bank improved by way of fresh infusion of capital by the J&K Government and also through Employee Stock Purchase Scheme (ESPS) and plow-back of profits resulting in Capital Adequacy Ratio (CAR) of 13.23%, an improvement of 123 bps over March 2021. Through capital planning, Tier I capital base of your Bank also improved to 11.73% in March 2022 from 10.28% in the previous year.

Strategic Initiatives

During FY2022, some key initiatives of strategic significance taken included placement of General Managers in Kashmir & Jammu Divisions and in Rest-of-India for better monitoring of business, management of business and follow-up, shifting of Treasury Operations to Mumbai for better business prospects, creation of Marketing Teams across the Zones for generation of fresh business leads and mobilization of business, establishment of Large Credit Units across the Zones for handling of corporate portfolio of Rs. 5 crore & above, extending Phone-pe-Loan facility to all J&K government employees and a complementary accidental insurance cover of 15 lakh to employees under the initiative ‘Azadi ka Amrit Mahotsav'.

Interestingly, Bank successfully concluded its maiden "Strategy Conclave" in the month of May where brain-storming sessions were carried out with the top Management and other employees. The conclave was convened to recollect, deliberate, analyze and express understandings of the major issues and challenges that confront our organisation from within and outside. Besides boosting the morale of the workforce through acknowledgements and rewards programs for top achievers, career progression of all the cadres has been undertaken as part of larger succession planning within the Bank.

All these steps from strategic to operational levels have been taken to fit into the larger organizational strides that are becoming inevitable in the highly competitive ecosystem of contemporary banking.

Technology Upgradation

Undertaking a major strategic initiative for long-term growth, your Bank has upgraded its core banking software from Finacle 7 to Finacle 10, the state-of-art version of Core Banking. The upgraded software has enhanced security features and supports third party applications integration resulting eventually in improved digital banking experience with seamless service-offerings to customer. Your Bank has also upgraded its flagship mobile banking product J&K Bank mPay - one-click application for all banking needs of a customer. EWS (Early Warning System) and other technical upgrades have also been deployed for better monitoring of loan accounts and better compliance to Cyber Security Frameworks of the regulator.

Customer Focus

Continuing focus on customer convenience, your Bank is committed to turn customer experience into customer delight. In this direction, Bank has taken a number of measures which include customer segmentation for differentiated product and service offerings. The Bank is introducing personalized cheques books, cash lifting services and door step banking services for its customers to enrich their banking experience.

Your Bank is also working continuously to improve the quality of service through customer satisfaction surveys and customer advisory forum meets regularly conducted at operative levels as per regulatory guidelines.

Way Forward

FY2022 has marked continued and sustained traction towards improved profitabiity by transcending the milestone of Rs. 500 crores PAT after a 7-year gap. Going forward we are envisaging better results on all parameters in FY 2022-23.

Initiating various ambitious projects under Business Process Re-engineering to pave way for the structural and technological transformation of the Bank, the focus of the Bank will continue to remain on sustainable-growth, improving asset quality, enhancing human capacities through up skilling, upgrading technological platforms to meet growth objectives and achieving the envisaged institutional excellence. Your Bank will also augment its capital further during the CFY so as to build resilience, achieve financial health reinforcement and improve upon all the financial parameters to deliver better value to all our stakeholders. I am hopeful that the Bank shall carry forward the momentum of FY2022 and shall improve its performance to achieve the set milestones in FY23.

Dear Shareholders,

Backed by the illustrious legacy of more than eight decades and your support, your Bank holds a great promise for not only its own future but for the region as an institution of systemic importance. For your support, I extend heartfelt gratitude to all of you and other stakeholders and express my resolve to deepen the trust reposed in us by all our stake-holders. Lastly but most importantly, I would like to thank our promoters, the Government of UTs of J&K and Ladakh for lending their gracious support. I am also grateful to the esteemed Board of Directors for their guidance. And I am highly thankful to the workforce of the Bank, whose commitment, sincerity and honest efforts have made the Bank's annual performance possible. As I look forward, I can see this Bank has the potential to scale the greater heights.

   

Jammu and Kashmir Bank Ltd Company History

Jammu And Kashmir Bank Limited (J & K), a state owned bank was incorporated in 01 October 1938 and commenced its business from 04 July 1939 at in Kashmir (India). As on 31 December 2020, the bank had a distribution network of 956 branches and 1382 ATMs across the country. It offers banking services under the three major divisions as Support services, Depository services and Third party services. The Bank operates mainly into four segments comprising of Treasury, Corporate/wholesale banking, Retail banking and other banking operations. According to the extended Central Laws of the State, Jammu & Kashmir Bank was defined as Government of Company as per the provision of Indian companies act 1956. In the year 1971, the Bank received the status of scheduled bank. RBI declared it as 'A' Class Bank in the year of 1976. During the year 1993, the Bank made tie up with Reuter News Agency for instantaneous information about global foreign currency rates and fluctuations. In the year of 1995, Banking Ombudsman Scheme was launched in June and a loan delivery system was introduced in April, which was used for large borrowers. During the year of 1998, J & K had introduced a new term deposit scheme under the title of Jana Priya Jamma Yojna carrying flexibility in the repayment schedule and in the same year the bank introduced Housing Loan and Education Loan Schemes. The Bank had entered into an agreement with IBA to connect its ATMs through a shared network in the year 1999. To offer Internet Banking and for its e-commerce initiatives, the bank made tie up with Infosys Technologies and also in the same year J&K Bank had entered into agreement with American Express to launch a co-branded credit card. J&K Bank had diversified into non-life insurance and depository business, apart from life Insurance and asset management business in the year of 2000. The Bank had launched Global Access Card (An International Debit Card) in association with Master Card International during the year of 2003. During the year 2004, J&K Bank agreed with ICICI Bank to share the ATM network. In the same year the bank had received the Asian Banking Award 2004 in Manila for its customer convenience programme. Signed MoU with Bajaj Tempo in the year of 2004. During the year 2005-06, J&K opened its branches in Chennai, Kanpur, Agra and Kolkata. Also in the same year introduced new product and services for rural finance. During the period of 2006-2007, the bank introduced various hi-tech and customer friendly products. The Bank and TATA Consultancy Services (TCS), Asia's largest IT company signed a Memorandum of Understanding (MoU) to signal their intent to work together to create an IT blue-print for the bank. Going forward with its renewed business strategy, J & K Bank had opened its 564th branch at Lassipora, Pulwama, Srinagar in July of the year 2008. During the financial year 2013-14, 92 new branches were established; thereby taking the number of branches to 777 as on 31st March 2014, spread over 20 states and one union territory. During the financial year 2013-14, 187 ATMs, both onsite & offsite, were commissioned thereby taking the number of ATMs to 800 as on 31st March 2014. During the financial year 2014-15, 40 new branches were established; thereby taking the number of branches to 817 as on 31st March 2015, spread over 20 states and one union territory. During the financial year 2014-15, 85 ATMs were commissioned thereby taking the number of ATMs to 885 as on 31st March 2015. During the year under review, bank increased its stake in JKBFSL by 100% by contributing Rs1000 lacs in share capital of the company, increasing its paid up capital to 2000 lacs for the year ended 31st March 2015 as against Rs1000 lacs as on 31st March 2014. During the financial year 2015-16, 40 new branches were established; thereby taking the number of branches to 857 as on 31st March 2016, spread over 20 states and one union territory. During the financial year 2015-16, 121 ATMs were commissioned thereby taking the number of ATMs to 1006 as on 31st March 2016. During the financial year 2016-17, 8 new branches were established; thereby taking the number of branches to 865 as on 31st March 2017, spread over 20 states and one union territory. During the financial year 2016-17, 90 ATMs were commissioned thereby taking the number of ATMs to 1096 as on 31st March.2017. During financial year 2018-19, 36 new branches were established, thereby taking number of branches to 938 as on 31st March 2019, spread over 20 states and one union territory. During the financial year 2018-19, 96 ATMs were commissioned thereby taking the number of ATMs to1294 as on 31st March 2019. During FY 2018-19, the Bank launched a bouquet of new products such as Gold Loan Scheme, Merchant Overdraft scheme and deploying Direct Selling Agents (DSA) in ROI (Rest of India) for housing loans. During the financial year 2019-20, 15 new branches were established, thereby taking the number of branches to 955 (including IARBs)as on 31.03.2020, spread over 17 states and 4 union territories. During the financial year FY19-20, 3 EBUs/USBs were established, 66 ATMs were commissioned thereby taking the number of ATMs to 1354 as on 31.03.2020. During the FY2020, the bank has allotted an preferential allotment of 15,65,92,546 equity shares of Re. 1/- each fully paid up for cash to the Government of Jammu and Kashmir at the issue price of Rs 31.93 per equity share.

Jammu and Kashmir Bank Ltd Directors Reports

To the Members,

Your Board of Directors has pleasure in presenting the 84th Annual Report of your Bank, together with the audited Balance Sheet, Profit and Loss Account and the report on business and operations for the year ended 31st March, 2022.

Performance at a Glance

The aggregate business of the Bank stood at Rs. 185111.06 Crore at the end of the financial year 2021-22.

The total deposits of the Bank grew by Rs. 6649.23 Crore from Rs.108061.15 Crore as on 31st March, 2021 to Rs. 114710.38 Crore as on 31st March, 2022, a growth of 6.15 percent.

CASA deposits of the Bank stood at Rs. 64874.61 Crore and constituted 56.56 percent of total deposits of the Bank.

Cost of deposits for the FY 2021-22 stood at 3.65 percent.

The net advances of the Bank stood at Rs. 70400.68 Crore as on 31st March, 2022.

Yield on advances for the FY 2021-22 stood at 8.32 percent.

Average Priority Sector advances stood at Rs. 33982.00 Crore as on 31st March, 2022.

The Bank effected cumulative cash recovery, up- gradation of NPA's and technical write-off of Rs. 2939.28 Crore during FY 2021-22.

Investment portfolio of the Bank stood at Rs. 33834.99 Crore as on 31st March, 2022.

Insurance Business

The Bank earned a commission income of Rs 62.13 Crore from Insurance Business by mobilizing a business of Rs 477.79 Crore in life insurance (including fresh retail life business of Rs 133.94 Crore, Credit life business of Rs 82.85 Crore and renewal business of Rs 261 Crore) and Rs 223.99 Crore in non-life insurance during financial year 2021-22.

Income Analysis

The Interest income of the Bank stood at Rs.8013.48 Crore in the year 2021-22. Interest expenses stood at Rs. 4102.25 Crore for FY2021-22. The Net Interest Income stood at Rs. 3911.23 Crore for FY2021-22.

The Net Income from operations [Interest Spread plus Non-interest Income] stood at Rs. 4692.16 Crore in the financial year 2021-22.

The Operating Expenses registered an increase of Rs.714.24 Crore during the financial year 2021-22 and stood at Rs.3592.78 Crore as compared to Rs. 2878.54 Crore in 2020-21.

The Cost to Income ratio (Operating Expenses to Net Operating Income) stood at 76.57 percent in the financial year 2021-22.

Gross Profit

The Gross Profit for the financial year 2021-22 stood at Rs. 1099.38 Crore.

Provisions

The Provision for Loan Losses, Standard Assets, Taxation and others aggregated to Rs.597.82 Crore in the financial year 2021-22.

Net Profit/Loss

The Bank registered a Net Profit of Rs.501.56 Crore for the financial year 2021-22.

Dividend

In terms of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Bank has formulated and adopted a Dividend Distribution Policy with the objective of appropriately rewarding Shareholders through dividends while retaining the capital required for supporting its future growth. The said Policy has been hosted on the website of the Bank at https://www.jkbank.com/pdfs/ policy/Dividend%20Distribution%20Policy.pdf In order to conserve/ augment capital base of the Bank, your Directors do not recommend any dividends for the financial year 2021-22.

Branch/ATM Network

During the financial year 2021-22, 25 new branches were established, thereby taking the number of branches to 980 (including IARBs) as on 31.03.2022, spread over 18 states and 4 union territories. The area-wise breakup of the branch network (excluding extension counters/ mobile branches and Service branches) on the basis of census 2011 as at the end of FY 2021-22 is as under:

Area Business Units (including IARBs)
Metro 174
Urban 108
Semi-Urban 162
Rural 536
Total 980

During the financial year FY 2021-22, 6 EBUs/USBs were established taking the total number of EBUs/USBs to 77, 21 ATMs were commissioned thereby taking the number of ATMs to 1404 as on 31.03.2022.

Capital

The capital management framework of the Bank includes a comprehensive internal capital adequacy assessment process conducted periodically, which determines the adequate level of capitalization needed to meet regulatory norms and current and future business needs.

The capital management framework of the Bank is complemented by the risk management framework, which covers the business and capital plans and stress testing results integrated with the internal capital adequacy assessment process while assessing its impact on the capital ratios and adequacy of capital buffers for current and future periods.

In order to comply with the requirements of section 12(1) (i) of the Banking Regulation Act, 1949, the authorized capital of the Bank was reduced from ` 250,00,00,000 to ` 185,00,00,000 after seeking Shareholders/ Reserve Bank of India approval.

As at March 31, 2022, the Subscribed and Paid-up Capital of the Bank stood at Rs.93,28,86,594.00 comprising of 93,28,86,594 equity shares, which is 21,94,35,656 equity shares more than as at March 31, 2021. The said capital was raised by way of:

Allotment of 16,76,72,702 equity shares at a price of Rs.29.82 to Government of Jammu and Kashmir on preferential basis amounting to a total of Rs. 499,99,99,973.64, and

Allotment of 5,17,62,954 equity shares at a price of Rs. 28.97 to the eligible employees of the Bank under J&K Bank Employee Stock Purchase Scheme, 2021 (JKBESPS 2021) amounting to a total of Rs.149,95,72,777.38.

The Bank also allotted 2,85,93,267 equity shares at a price of Rs. 32.70 which was at a discount of 4.97% (i.e. Rs 1.71 per equity share) to the Qualified Institutional Buyers (QIB) aggregating to a total amount of Rs. 93,49,99,830.90. The Issue opened on March 28, 2022 and closed on March 31, 2022. The allotment was, however, made on April 01, 2022.

Net Worth and Capital Adequacy Ratio (CRAR)

The Net Worth of the Bank stood at Rs.7063.82 Crore on 31st March 2022.

Capital Adequacy Ratio under Basel III stood at 13.23 percent as on March, 2022. The tier I component of CRAR is 11.73 percent as on 31st March 2022.

Book Value per Share for the financial year 2021-22 stood at Rs.75.72.

Board of Directors

Your Bank has Eleven (11) Directors consisting of MD & CEO and 10 Non-Executive Directors as on 31st March, 2022.

Non-Independent Executive Director

Mr. Baldev Prakash, Non Independent Executive Director has been serving as the MD & CEO of the Bank since December 30, 2021, with the approval of The Reserve Bank of India (RBI).

Non-Independent Non-Executive Director

1) Mr. Atal Dulloo, IAS, Financial Commissioner (Additional Chief Secretary) to Govt. of J&K, Finance Department,

2) Mr. Nitishwar Kumar, IAS, Principal Secretary to Lt. Governor Govt. of J&K,

3) Mr. R K Chhibber

4) Mr. Mohmad Ishaq Wani

Independent Non-Executive Director

In terms of the definition of ‘Independent Director' as prescribed under Regulation 16(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 149(6) of the Companies Act, 2013 and based on the declarations/disclosures received from the Directors, the following Non–Executive Directors are Independent Directors of the Bank:-

1. Dr. Rajeev Lochan Bishnoi

2. Mr. Naba Kishore Sahoo

3. Mr. Umesh Chandra Pandey

4. Mr. Anil Kumar Goel

5. Mrs. Sushmita Chadha

6. Mr. Anand Kumar

All Independent Directors of the Bank have given their respective declarations stating that they meet the criteria of Independence as laid down under the applicable laws and in the opinion of the Board, the independent directors meet the said criteria.

Appointments/Resignations from the Board of Directors

During the FY 2021-22, there were following changes in the composition of the Board:

Mr. Rigzian Sampheal, IAS, (DIN: 08157221) ceased to be the Director on the Board of the Bank w.e.f April 21, 2021 consequent upon his resignation from the Board of Directors of the Bank.

Mr. Atal Dulloo, IAS (DIN: 03542909) was appointed as Govt. Nominee Director w.e.f September, 01, 2021 in place of Dr. Arun Kumar Mehta, IAS (DIN: 02712778).

Mr. Vikram Gujral (DIN: 03637222) ceased to be Director on the Board of the Bank w.e.f September 30, 2021 consequent upon his non re-appointment at the 83rd Annual General Meeting of the Bank.

Mr. Baldev Prakash (DIN: 09421701) was appointed as a Govt. Nominee Director on December 27, 2021 and further as Managing Director and CEO (‘MD&CEO') of the Bank to be effective from the date of his actual joining. Upon his joining as the MD&CEO of the Bank on December 30, 2021, Mr. R K Chhibber ceased to be Chairman and Managing Director of the Bank.

Mr. Anil Kumar Misra (DIN: 08066460) ceased to be RBI appointed Additional Director on the Board of the Bank w.e.f January 04, 2022 consequent upon withdrawal of his nomination by The Reserve Bank of India.

Dr. Rajeev Lochan Bishnoi (DIN: 00130335) and Ms. Monica Dhawan (DIN: 01963007) ceased to be Independent Directors on the Board of the Bank w.e.f January 11, 2022 consequent upon completion of their terms.

Dr. Rajeev Lochan Bishnoi (DIN: 00130335) was appointed as an Independent Director on the Board of the Bank for a second term w.e.f. January 21, 2022.

Mr. Umesh Chandra Pandey (DIN: 01185085) and Mr. Anil Kumar Goel (DIN: 00672755) were appointed as Independent Directors on the Board of the Bank w.e.f January 21, 2022.

Mrs. Sushmita Chadha (DIN: 02939808) was appointed as an Independent Director on the Board of the Bank w.e.f January 31, 2022.

Mr. Naba Kishore Sahoo (DIN: 07654279) was re- appointed as an Independent Director on the Board of the Bank w.e.f March 01, 2022.

Mr. Anand Kumar (DIN: 03041018) was appointed as an Independent Director on the Board of the Bank w.e.f March 03, 2022.

During the year under report, no Independent Director resigned before the expiry of his/her tenure.

Changes in the Board of Directors after the Closure of Financial Year

Mr. Vivek Bharadwaj, IAS (DIN: 02847409) was appointed as Government Nominee Director vide order no. 567-JK(GAD) of 2022 dated May 17, 2022 on the Board of the Bank in place of Mr. Atal Dulloo, IAS (DIN: 03542909) w.e.f May 17, 2022.

Directors seeking appointment/re-appointment at AGM

Mr. Rajesh Kumar Chhibber (DIN: 08190084), Additional Director on the Board of Bank being eligible has offered himself for appointment as Director liable to retire by rotation. Dr. Mohmad Ishaq Wani (DIN: 08944038) who is retiring by rotation, has offered himself for re-appointment. The profile and necessary details of the above mentioned Directors have been included in the Notice & Corporate Governance Report.

Number of Meetings of the Board

During the year under review, Fourteen (14) Board Meetings were held, in due compliance with statutory provisions, on the following dates: 04.06.2021, 17 & 18.06.2021, 13.08.2021, 02.09.2021, 13 & 14.09.2021, 18.10.2021, 12.11.2021, 16.11.2021, 28.12.2021, 21.01.2022, 31.01.2022, 08.02.2022, 03.03.2022 and 17.03.2022.

Committees of the Board

During the period under review, the Bank had following Committees of the Board:

Management Committee

Audit Committee

Special Committee of Board on Frauds

Stakeholders Relationship Committee

Information Technology Strategy Committee

Corporate Social Responsibility Committee

Integrated Risk Management Committee

Customer Service Committee

Nomination & Remuneration Committee

Legal and Impaired Assets Resolution Committee

Human Resource Development Committee

Investment Committee

GST Steering Committee

Besides the above, the Bank had few specific purpose Committee of the Board:

Special Committee of Board (Constituted to devise a roadmap for alignment of pay structure of the Bank compliant with the IBA pay scales)

Compensation Committee

Special Committee of Board (Constituted for the purpose of reviewing the down-gradation of M/s Bharat Hotels Ltd.)

Capital Issuance Committee (Erstwhile Share Allotment Committee)

The composition, power, role, terms of reference, etc. of aforesaid committees are given in detail in the statement on Corporate Governance annexed to this report.

Performance Evaluation of the Board

The Nomination and Remuneration Committee (NRC) has approved a framework / policy for evaluation of the Board, Committees of the Board, Chairman of the Board, Managing Director & CEO and the individual Members of the Board (including the Chairperson). In conformity with the said policy requirements following is the process of evaluation:

The performance evaluation of all the Independent Directors is conducted by the entire Board excluding the Directors being evaluated.

Independent Directors evaluate the performance of Non– Independent Directors, Chairman of the Board, Managing

Director & CEO and Board as a whole and submit its report to the Board alongwith necessary comments and suggestive course of action arising out of the evaluation.

The performance evaluation of the Committees of the Board is conducted by the entire Board.

A questionnaire for the evaluation of the Board, its Committees and the individual Members of the Board (including the Chairperson) designed in accordance with the said framework and covering various aspects of the performance relating to the following is forwarded to individual Directors:

Board Board Composition & Quality, Board Meetings & Procedures, Board Development, Strategy & Risk Management, Board & Management Relations, Succession Planning and Stakeholder Value & Responsibility, etc.
Committees of the Board Functions & Duties, Management Relations, Committee Meetings & Procedures, etc.
Chairman of the Board Managing Relationships, Leade- rship, Role & Responsibility, etc. Participation at Board / Committee
Managing Director & CEO Meetings, Managing Relationships, Knowledge and Skills, Personal
Individual Directors Attributes, Contribution, Leadership and Initiative Participation in meetings, managing relationships, knowledge & skills and personal attributes, etc.

The responses received to the questionnaires on evaluation of the Board, its Committees, individual Directors Chairman and MD & CEO are consolidated and discussed by the Board.

Your Bank has in place a process wherein declarations are obtained from the Directors regarding fulfillment of the ‘fit and proper' criteria in accordance with RBI guidelines. The declarations from the Directors other than Members of the N&RC are placed before the N&RC and the declarations of the Members of the N&RC are placed before the Board. Assessment on whether the Directors fulfill the said criteria is made by the N&RC/Board on an annual basis.

Change in Key Managerial Personnel

As at March 31, 2022, Mr. Baldev Prakash, Managing Director & CEO, Mr. Balvir Singh Gandhi, Chief Financial Officer and Mr. Mohammad Shafi Mir, Company Secretary were the Key Managerial Personnel of the Bank.

Mr. Baldev Prakash was appointed Managing Director & Chief Executive Officer of the Bank in the Board meeting held on December 28, 2021 to be effective from December 30, 2021 (Date of actual joining) thereby relieving Mr. R K Chhibber as Chairman and Managing Director of the Bank. Mr. Balvir Singh Gandhi was appointed as Chief Financial Officer of the Bank on December 28, 2021 in place of Mrs. Rajni Saraf, who ceased to be the Chief Financial Officer of the Bank.

None of the Key Managerial Personnel has resigned during the year under review.

Changes in the Key Managerial Personnel after the Closure of Financial Year

Mrs. Rajni Saraf was appointed as Chief Financial Officer of the Bank on April 27, 2022 in place of Mr. Balvir Singh Gandhi, who ceased to be the Chief Financial Officer of the Bank.

Mr. Pratik D Punjabi was appointed as Chief Financial Officer of the Bank to be effective from the date of his joining (July 01, 2022) in place of Mrs. Rajni Saraf, who ceased to be the Chief Financial Officer of the Bank after attaining the age of superannuation on June 30, 2022.

Performance of Associate /Subsidiary Companies

Subsidiary:

As on March 31, 2022, the Bank has one unlisted wholly owned subsidiary - JKB Financial Services Limited (JKBFSL), which was incorporated on August 27, 2008. It is a member of the National Stock exchange (NSE) & Bombay Stock Exchange (BSE). A leading broker in the Union Territory of J&K, JKBFSL provides broking services in equity (cash/delivery, intra-day, futures and option), distributes Mutual Funds of leading Asset Management Companies & also banking products of J&K Bank.

Following are the performance highlights of the company during the year:

Income:

The income from Equity broking for the financial year 2021-22 is ` 604.17 lacs compared with ` 705.75 lacs during previous FY 2020-21 thereby registering a YoY decline of 14.39 %.

Income from MTF (Margin Trade Funding) is ` 180.42 lacs for the financial year 2021-22 as compared to ` 106.57 lacs in FY 2020-21 thereby registering a YoY growth of 69.30 %

The depository income grew from ` 108.52 lakhs to `141.23 lakhs during the year registering a YOY growth of 30.14%.

Revenue from 3rd party products has been marked as a growth area for the company. The company has recorded AUM growth of around 150% on YoY basis and accordingly the mutual fund commission grew from `12.30 lakhs to `22.37 lakhs thereby recording a YOY growth of 81.86%.

The total income of the Company grew from ` 984.30 lakhs to ` 991.25 lakhs.

Expenditure:

The total expenses during the financial year 2021-22 is ` 590.03 lacs as compared to ` 562.23 lacs in the previous financial year. The company has increased its investments in technology platforms & human capital.

Profits:

The Company registered profit before tax of ` 401.22 lakhs during the given financial year and the net profit achieved was `287.61 lakhs in comparison to a net profit of ` 267.13 lakhs during the previous financial year.

Associates:

As on March 31, 2022, the Bank has two associates viz. J&K Grameen Bank (Regional Rural Bank Sponsored by J&K Bank) and M/s Jammu and Kashmir Asset Reconstruction Limited. The performance highlights of the associates during the year are provided as under:

J&K Grameen Bank - Regional Rural Bank Sponsored by J&K Bank: The J&K Grameen Bank has come into existence on 30thJune 2009 with the issuance of statutory notification by GoI, MoF, Department of Financial Services under sub-section (1) of section 23 (A) of the Regional Rural Banks Act, 1976 vide F. No. 1/4/2006-RRB providing for amalgamation of Kamraz Rural Bank and Jammu Rural Bank into a single new Regional Rural Bank under the name of J&K Grameen Bank with its Head Office at Jammu and has commenced business effective from 01.07.2009.

Area of Operation:

The area of operation of the J&K Grameen Bank comprises of 13 districts of the UT of J&K and UT of Ladakh viz. Baramulla, Bandipora, Kupwara, Ganderbal, Srinagar Jammu, Kathua, Rajouri, Poonch, Samba, Kishtwar, Leh and Kargil.

No. of Branches (as on 31st March, 2022): 217
No. of Employees (as on 31st March, 2022): 1127 (includes 21 officials on deputation from J&K Bank - Sponsor Bank)

Capital Structure:

In terms of the RRBs Act 1976, the authorized capital of Regional Rural Banks was fixed at Rs.5.00 Crore (which stands amended to Rs. Two Thousand Crore in terms of the Regional Rural Banks (Amendment) Act, 2015 notified in the Gazette of India on 12-05-2015). The issued and paid up capital of the J&K Grameen Bank is Rs.97.16 Crore fully subscribed by the Central Government, State Government and Sponsor Bank in the ratio of 50:15:35 respectively. The details are tabulated hereunder:

1. Authorized Share Capital Rs. 2000 Crore
Subscribed / Paid up Share Capital Rs. 97.16 Crore
2. Central Government (50%) Rs. 48.58 Crore
State Government (15%) Rs. 14.57 Crore
Sponsor Bank (35%) Rs. 34.01 Crore

Tier II perpetual bonds (Date of issue: 04-12-2014):

Out of total cost outlay of Rs. 23.34 Crores for implementation of 100% CBS by JKGB, 50% i.e., Rs. 11.67 crore has been provided by J&K Bank (Sponsor Bank) in the form of perpetual debt (bonds) eligible as Tier – II of the sponsored bank.

Performance of the J&K Grameen Bank as on 31.03.2022 Business:

The total business of the bank as on 31st March 2022 stood at Rs.7646.50 Crore against Rs.7036.94 Crore as on 31st March 2021, thereby registering a growth of 8.66% during the financial year 2021-22.

Deposits:

The deposits of the bank have increased from Rs.4472.43 Crore to Rs.4767.90 Crore during the financial year 2021-22 thereby registering a growth rate of 6.61%.

Advances:

The gross advances of the Bank as on 31st March 2022 stood at Rs.2878.60 Crore as against Rs. 2564.51 Crore as on the corresponding date of the previous year recording a growth of 12.25%

CD Ratio:

The C.D. Ratio of the bank has increased by 303 bps from 57.34% as on 31st March 2021 to 60.37% as on 31st March, 2022.

Priority Sector Advances:

The priority sector advances outstanding as on 31st March 2022 stood at Rs. 2327.61 Crore against Rs. 2050.90 Crore outstanding as on 31st March 2021, registering a growth of 13.49% on Y-o-Y basis. RRB specific benchmark of 75% portion of priority sector advances to total advances outstanding has been well maintained with 80.86% as on 31st March, 2022.

NPA Management:

Gross NPAs of the Bank as on 31.03.2022 stood at Rs. 152.07 Crore (5.28%) against Rs. 184.42 Crore (7.19%) as on 31st March, 2021. Accordingly Net NPAs as on 31st March, 2022 stood at Rs. 69.75 Crore (2.49%) against Rs. 98.47 Crore (3.97%) as on 31st March, 2021.

Business per Employee:

The business per employee as on 31st March 2022 stood at Rs.6.78 Crore against Rs.6.65 Crore as on corresponding date of the previous year.

Business per Branch:

The business per branch as on 31st March 2022 stood as Rs. 35.24 Crore against Rs. 32.43 Crore as on corresponding date of the previous year.

Profitability:

Mainly due to the pension provision liability of Rs. 92.85 Crore during the year 2021-22, Bank has incurred a net loss of Rs. 27.39 Crore as on 31st March, 2022.

Lead Bank Responsibility:

J&K Bank is the only Private Sector Bank in the Country assigned with responsibility of convening UT Level Bankers Committee - UTLBC meetings. The Bank continued to satisfactorily discharge its Lead Bank Responsibility in 12 districts of UT of J&K, i.e. Srinagar, Ganderbal, Budgam, Baramulla, Bandipora, Kupwara, Anantnag, Kulgam, Pulwama, Shopian, Poonch and Rajouri. Lead bank responsibility in other 8 districts of the UT, i.e. Jammu, Samba, Kathua, Udhampur, Reasi, Doda, Ramban and Kishtwar is assigned to State Bank of India.

The Annual Credit Plan for UT of J&K for FY 2021-22 was launched on 1st April, 2021, envisaging a total credit target of Rs. 44,980.57 Crore for 14,97,700 beneficiaries. During FY 2021-22, banks operating in UT of J&K have disbursed total credit of Rs.36,758.34 Crore in favour of 12,53,654 beneficiaries, registering an achievement of 82% in financial terms and 84% in physical terms. This includes disbursement of Rs.19,095.87 Crore in favour of 8,46,050 beneficiaries against the annual target of Rs.35,482.62 Crore for 12, 11,772 beneficiaries under Priority Sector and Rs.17,662.47 Crore in favour of 4,07,604 beneficiaries against the annual target of Rs.9,497.95 Crore for 2,85,928 beneficiaries under Non- Priority Sector thereby registering achievement of 54% and 186% in financial terms respectively.

J&K Bank was assigned annual target of Rs.22,346.39 Crore for 7,54,694 beneficiaries under Priority and Non-Priority Sectors of economy during FY 2021-22 against which Rs.23,633.84 Crore were disbursed in favour of 8,71,928 beneficiaries registering an achievement of 106% in financial terms and 116% in physical terms.

During the FY 2021-22, following meetings were conducted:

3rd Meeting of J&K UTLBC held on 23rd June 2021 to review the performance of Banks/ FIs in UT of J&K in dispensation of credit and other banking services during the Financial Year ending 31st March 2021.

4th Meeting of J&K UTLBC held on 20th September 2021 to review the performance of Banks/ FIs in UT of J&K during the quarter ending June 2021.

5th Meeting of J&K UTLBC held on 30th November 2021 to review of the performance of Banks/ FIs in UT of J&K during the quarter ending September 2021.

6th Meeting of J&K UTLBC held on 30th March 2022 to review the performance of Banks/ FIs in UT of J&K during the quarter ending December 2021.

Special Meeting of J&K UTLBC held on 7th January 2022 to review Action Taken by Banks/ Government Departments on the Actionable Points emerged during the visit of Hon'ble Union Finance Minister to UT of J&K on 23rd November 2021.

Two Meetings of Sub-Committee of J&K UTLBC on Priority Sector were held on 30th December 2021 and 25th February 2022 to review the performance of banks in disbursement of credit to Priority Sector against Annual Credit Plan.

Convening of District Level/ Block level meetings as per Lead bank Scheme

Lead Bank ensured that District- level and block level meetings, such as DCC/ DLRC/ BLBC, and other relative meetings under Lead Bank Scheme are held as per schedule in all the 20 districts of UT of J&K during the FY 2021-22.

Implementation of Financial Inclusion Plans (FIPs):

1. After successful implementation of FIP-I and FIP-II, under the directions from Reserve Bank of India, a roadmap for opening "Brick & Mortar" branches or CBS-enabled Banking Outlets in the identified 104 villages having population over 5000 in UT of J&K is presently under implementation. These villages have been allocated to 8 major scheduled commercial banks operating in UT of J&K viz. J&K Bank-48, SBI-15, PNB-11, HDFC Bank-11, ICICI Bank-05, Canara Bank-05, UCO Bank-05 and CBI-04. As of 31.03.2022, 99 villages have been covered for banking services with opening of 13 brick & mortar branches and 86 CBS-enabled Banking outlets including 22 Access Points of India Post Payments Bank (IPPB). Out of the 99 covered villages, 48 villages have been covered by J&K Bank, 14 by SBI, 11 villages each by PNB & HDFC Bank, 4 villages each by ICICI Bank & Canara bank, 5 villages by UCO Bank and 2 village by Central bank of India.

2. Providing Banking Services within a radius of 5 KMs of every village:

Though the banking services as per Sub Service Area (SSA) Plan were provided across the erstwhile J&K State by 2016, however in the year 2019, National Informatics Centre (NIC) conducted a GPS (Latitude/ Longitude) based verification of available Banking Touch Points uploaded by banks on Jan Dhan Darshak App – (GIS App) and a fresh list of uncovered villages (i.e. villages not having a Bank Branch/BC/Post Office within 5 KMs distance) was arrived at by DFS and shared with respective SLBC/ UTLBC in the month of October 2019 for assigning same to banks for providing the necessary Banking Touch Points as per the 5 KM criteria fixed by DFS. Once the banks provide/ deploy the necessary Banking Touch Point in the allocated villages, the details of the same including Latitude/ Longitude Positions are to be uploaded/ updated to Jan Dhan Darshak App by the concerned bank so that village is reflected as "covered" as per the GPS Mapping.

For UT of J&K, 147 villages were identified by DFS as "uncovered" under GPS system of identification. All 147 locations stand covered by 6 banks i.e. J&K Bank-75, SBI-20, PNB-7, JKGB-28, IPPB-16 and EDB-1 by providing Banking Touch Points

Responsibility of setting up of RSETIs in UT of J&K:

In terms of guidelines issued by Ministry of Rural Development, Government of India, setting up the Rural Self Employment Training Institutes (RSETIs) in all the districts of UT of J&K was assigned by J&K UTLBC to two banks, viz. J&K Bank and SBI as per their Lead Bank responsibility. Accordingly, J&K Bank has set up 12 RSETIs in its allocated 12 lead districts (Srinagar, Ganderbal, Budgam, Baramulla, Bandipora, Kupwara, Anantnag, Kulgam, Pulwama, Shopian, Poonch and Rajouri). Performance of RSETIs in conducting training programmes and the number of persons benefited through credit linkage is being reviewed in Quarterly UTLBC meetings.

Responsibility of setting up of FLCs in UT of J&K:

In terms of RBI guidelines for setting up of Financial Literacy Centres (FLCs) in all the districts of UT of Jammu and Kashmir, J&K Bank has made 12 FLCs operational in its 12 allocated lead districts viz. Srinagar, Ganderbal, Budgam, Baramulla, Bandipora, Kupwara, Anantnag, Kulgam, Pulwama, Shopian, Poonch and Rajouri and SBI having made 8 FLCs operational in its 8 allocated lead districts of UT of J&K, viz. Jammu, Samba, Kathua, Udhampur, Reasi, Doda, Ramban, Kishtwar. In addition, PNB, JKGB, EDB and J&K State Cooperative Bank have also established 6, 2, 2 & 1 FLCs respectively, in various districts of UT of J&K, which as on 31.03.2022 takes the total number of FLCs in UT of J&K to 31. The performance of FLCs in conducting the Financial Literacy Camps as per the guidelines from RBI is being reviewed at various forums including quarterly UTLBC meetings.

100% Saturation Drive for KCC Crop.

Banks/ FIs in J&K has issued 68,186 fresh KCCs during FY 2021-22 involving an amount of Rs.591.41 Crore. This includes Rs.363.02 Crore disbursed in favour of 35,634 beneficiaries under KCC Crop and Rs.228.39 Crore to 32,552 beneficiaries under KCC-AH & F.

With the above achievement during FY 2021-22 the total number of active KCCs in J&K has reached to 9,52,896 as on 31.03.2022 with an outstanding credit of Rs.6,506.48 Crore.

Advertising and Publicity

To enhance the already established identity and image of the Bank, we branded and positioned our Bank in a way so that it stands out financially, aesthetically and intellectually within the public domain. By being relevant and compelling in our vigorous brand promotion through advertising and publicity, we have successfully improved our brand exposure during the FY 2021-22 thereby enhancing our brand perception and increasing our brand value. We have been successful in strengthening the bond of trust with all our stakeholders by leveraging all the means and channels of communications available for uninterrupted communication throughout the financial year. Besides, the Bank's products, services and facilities were successfully advertised and publicized through mass marketing strategies across the operational geography of the Bank. Also, the advertising campaigns initiated by the Bank to enhance the overall business, while meeting the set targets, were duly publicized with proper follow-up communications. Moreover, the functioning and accomplishments of the Bank were effectively communicated to relevant target audiences including major stake-holders, customers, shareowners, other stakeholders and general public through customized and efficiently packaged messages/hand-outs using mass media within the Union Territory and relevant channels across the country to earn high credibility and enhance our brand image. To leverage the power of internet for reaching out to a wider audience, we were successful in increasing our presence in the social-media universe by further strengthening and streamlining our online presence through highly popular mediums of social connectivity platforms especially Facebook, Twitter, Instagram and YouTube.

Brand Building

Brand perception forms the fulcrum of any communication marketing strategy. Bank has, as has been case over the years, undertook various promotional activities to position its brand further favourably among the masses, complementing ever-strengthening significance of our institution on financial landscape of UTs of J&K, Ladakh and beyond.

While Brand J&K Bank continues to hold the sway among the masses, Bank has ensured it put an effective and efficient communication strategy in place to bolster the brand recall.

While the thrust for using digital channels to communicate with the masses has been mandated in the face of ever changing technological landscape with Bank enhancing its digital footprints by leveraging its presence on social media platforms, it has also put in use traditional advertisement genres like outdoor advertising (OOH) through hoardings to garner mileage in terms of brand visibility and reach. A well-drilled brand visibility enhancing activity was carried out by displaying Bank's products and schemes at ATMs & Branches while making sure Glow Signboards - an important tool of brand identity - are properly maintained. Hoardings were placed in twin cities of Jammu and Srinagar, national highways and other key locations.

With Covid-19 ruling the roost in most of FY 2021-22, Bank earned public goodwill through continuity of its relentless Banking service amidst the crisis. Bank's role in mitigating the problems during the unprecedented Pandemic was effectively highlighted through appropriate communication channels which added to the brand value and engineering a positive perception and imagination which only furthered and strengthened the trust and bond between Bank and its stake-holders.

The key components of brand identity like logo, its colours, font and other aspects weren't compromised while positioning the brand among the stakeholders.

Awards & Certifications received by the Bank during FY 2021-22

J&K Bank's illustrious history of more than eight decades is decorated with awards and accolades. Over the years, the Bank has collected numerous honors in various categories. During the FY 2021-22, the Bank outperformed its competitors to grab the headlines in following categories;

‘Best Digital Financial Inclusion Initiatives' Award

J&K Bank won ‘Best Digital Financial Inclusion Initiatives' Award at Indian Banks' Association's 17th Annual Banking Technology Conference and Awards 2020-21.

‘Best IT Risk & Cyber Security Initiatives' Award

J&K Bank was adjudged as Runner Up for ‘Best IT Risk & Cyber Security Initiatives' Award at Indian Bank's Association's 17th Annual Banking Technology Conference and Awards: 2020-21' under Small Bank Category.

‘Utkarsh Puraskar' of DigiDhan Award - 2020-21

J&K Bank won ‘UtkarshPuraskar' of DigiDhan Award - 2020-21 for achieving 2nd highest percentage of digital payment transactions under the category of Small & Micro banks from Union Minister for Communications, Electronics & Information Technology and Railways (GoI), Ashwini Vaishnaw.

Khadi India Award – Pan India Category

J&K Bank won 4th position under Khadi India Awards from Khadi & Village Industries Commission (KVIC) Mumbai, Ministry of MSME (GoI), for implementing Prime Ministers Employment Generation Programme (PMEGP) across the country during FY 2020-21.

Khadi India Award – North India Category

J&K Bank ranked No. 1 by the Ministry of Micro, Small & Medium Enterprises (GoI) under Khadi India Awards for its excellent performance in implementing the Prime Minister's Employment Generation Programme (PMEGP) in North India during FY 2020-21.

National Award for SHG Bank Linkage

J&K Bank bagged ‘National Award for Outstanding Performance in Self Help Group (SHG) Bank Linkage for FY 2020-21' by the Ministry of Rural Development (GoI).

ISO 27001:2013 Certification

J&K Bank has received the latest certification of prestigious ISO 27001:2013 from Intertek - a reputed London-based Total Quality Assurance provider - for being compliant with the best industry standards in terms of privacy and security protocols.

Corporate Social Responsibility (CSR)

As a responsible corporate citizen, J&K Bank envisions to integrate its strategic intent and business goals with the needs of the society in order to achieve an inclusive, sustainable and harmonious ecosystem. This represents the core principle and forms the basis of the Bank's CSR policy.

The Corporate Social Responsibility (CSR) policy of the Bank envisages not only an inclusive and sustainable socio-economic empowerment of the underprivileged, but also strives to help achieve a vibrant and environmentally conscious ecosystem. The Bank, guided by the founding principles of its CSR policy, helps support initiatives to improve the lives and living conditions of the indigent sections of the society besides lending support to the society's endeavors aimed at making the world a better place to live.

In line with the same, the Bank continued its ‘social-investment' in the form of monetary and other logistics support to systemically vital healthcare institutions to alleviate the hardships of different sections of the society. In turn, the Bank reaped benefits in the form of increased emotional equity, brand-connect and goodwill.

During the financial year (FY) 2021-22, the Bank continued to intervene and enhance value creation in the society through CSR activities in consonance with its mission of ‘Serving to Empower'. The statutory disclosures in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014 forms part of this report at Annexure 1.The policy is available on the Bank's website at https://www.jkbank. com/pdfs/policy/JKB_CSR_Policy_V3.pdf

Key areas of intervention under the CSR Programme

a) Livelihood Generation

b) Preventive Healthcare

Details of activities undertaken under CSR during the FY 2021-22

Initiatives undertaken under CSR during the FY 2021-22 include:

Livelihood Generation

J&K Bank has been steadfast in its approach to empower communities and create opportunities for sustainable livelihoods. Offering every individual a chance to earn an honest living and inspiring people to lead a life of dignity and self-sufficiency has been the key role of the organization. The Bank considers it a mission to measurably improve the lives of under-privileged and differently abled persons by addressing their needs so as to facilitate their movement from margins of society towards the socio-economic mainstream. With this vision, J&K Bank undertook the project of providing financial assistance to Humanity Welfare Organization Helpline, an NGO, for their project of providing vocational training cum livelihood generation for specially-abled youth.

On the same lines, J&K Bank also contributed towards the construction of the NAR (National Academy of RUDSETI) building at Bengaluru. National Academy of RUDSETI is providing its services to all the RSETIs across the country. RSETIs act as dedicated institutions designed to ensure necessary skill training and skill up gradation of the rural BPL youth to mitigate the problem of unemployment. To eliminate poverty, it is necessary to create livelihood opportunities on sustainable basis for the people living below the poverty line as it will enable them to fulfill basic need of life i.e. food, health and shelter and that is what RSETIs deal with - training of youth for self-employment.

Preventive Healthcare

Preventive healthcare is an important dimension of health that needs significant attention and investment from all sections of the society. J & K Bank considers working in this sector as an ethical obligation to provide extensive support and assistance with regard to protecting and promoting health. The Bank remains at the forefront in this sector to help Institutes upgrade the healthcare facilities thereby enabling people to have access to the best-in-class medical treatment. The bank, as such, continued to extend support in this sector by helping procure the ‘Platelet/Therapeutic Plasma Apheresis Kits' for the treatment of patients suffering from blood cancer and other blood dysfunctional diseases at SKIMS, Srinagar and GMC Jammu.

The world has changed dramatically since the emergence of the Coronavirus Disease 2019 (COVID-19) pandemic. The pandemic swiftly and harshly interrupted life and economies, forcing businesses and governments to quickly make difficult choices to balance risks to individual health and economic health. While health organizations and Governments across globe are trying hard to curb the disease and deflate its impact, corporates too have contributed their bit to ensure human safety. Looking at the situation emerging because of this deadly virus, J & K Bank decided to do its bit and started an initiative called "Wear a Mask". The Bank procured and distributed face masks (three layer surgical masks) in and around health facilities, educational institutions etc in the capital cities of J&K i.e., Srinagar and Jammu, which have seen the bulk of Covid-19 cases in the UT.

Corporate Governance

The Bank has established a tradition of exemplary practices in corporate governance. It encompasses not only regulatory and legal requirements, but also several voluntary practices, aimed at high level business ethics, effective supervision and enhancement of stakeholder value. Several matters have been voluntary included in the statement on corporate governance annexed to this report, besides certificate from the Central Statutory Auditors regarding compliance of conditions of Corporate Governance as stipulated by the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Management discussion and analysis

The Management Discussion and Analysis Report for the year under review is presented in a separate section forming part of this report.

Whistle Blower Policy & Vigil Mechanism

The Bank has a Whistle Blower mechanism in place which enhances the transparency in the organization by encouraging the employees/ directors/ other stakeholders to report any wrongdoing, which comes to their knowledge in the day-to-day performance of their duties or interaction with other fellow-colleagues/ bank staff without fear of retaliation, victimization and unfair-treatment. The "Whistle Blower Policy" has been formulated to guarantee them protection from any adverse departmental proceedings. The Policy is compliant to regulatory requirements under Section 177 (9) of the Companies Act 2013, Regulation 22 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Further, the mechanism adopted by the Bank encourages the Whistle Blower to report genuine concerns or grievances and also provides for direct access to Chairman of the Audit Committee of the Board, in exceptional cases. The grievance under Whistle Blower mechanism can be lodged on the Bank's official website under link. https://www.jkbank.com/others/common/wbGrievences.php

It is hereby affirmed that the Bank has not denied any of its personnel access to the Chairman of the Audit Committee of the Board and that the policy contains adequate provisions for protecting whistle blowers from unfair termination and other unfair prejudicial employment practices. However, no case under the Whistle Blower Mechanism was referred to the Audit Committee of the Bank during the year.

Protected Disclosures Scheme:

The Bank in line with the RBI prescribed framework, has devised a Policy Document on the "Protected Disclosure Scheme" The complaints under the Scheme cover the areas such as corruption, misuse of office, criminal offences, suspected/ actual fraud, failure to comply with existing rules and regulations such as Reserve Bank of India Act, 1934, Banking Regulation Act 1949, etc. and acts resulting in financial loss/ operational risk, loss of reputation, etc. detrimental to depositors' interest/ public interest. Reserve Bank of India (RBI) will be the Nodal Agency to receive complaints under the Scheme.

The complaint under the scheme should be sent in a closed/ secured envelope addressed to The Chief General Manager, Reserve Bank of India, Department of Banking Supervision, Fraud Monitoring Cell, Third Floor, World Trade Centre, Centre 1, Cuffe Parade, Mumbai 400 005. The envelope should be superscripted "Complaint under Protected Disclosures Scheme for Banks". Complaints can also be made to RBI through e-mail: dbspd@rbi.org.in by giving full details as specified above.

The policy document is available on the intranet page of the bank as well as on the Bank's official website under link https://www.jkbank.com/pdfs/policy/latest/Policy_ protected.pdf

It is hereby affirmed that No unfair treatment will be meted out to a Complainant by virtue of his/her having reported a Disclosure under this Policy. The Bank, as a policy, condemns any kind of discrimination, harassment, victimization or any other unfair employment practice being adopted against Complainant(s). Complete protection will, therefore, be given to Complainant(s) against any unfair practice like retaliation, threat or intimidation of termination/suspension of service, disciplinary action, transfer, demotion, refusal of promotion, including any direct or indirect use of authority to obstruct the Complainant's right to continue to perform his duties/ functions including making further Disclosure under the policy. No compliant has been referred to the Bank under the "Protected Disclosure Scheme".

Risk Management

A well-defined, comprehensive risk management framework of our bank is based on accepting various risks, controlled risk assessment, measurement and monitoring of these risks. The key components of the Bank's Risk Management architecture rely on the risk governance structure, comprehensive processes and internal control mechanism based on approved policies and guidelines. The Bank's risk management processes are guided by way of policies adopted appropriately for various risk categories, independent risk oversight and periodic monitoring by Board of Directors, Committees of the Board of Directors and Senior Management Committees – Credit Risk Management Committee, Market Risk Management Committee, Operational Risk Management Committee and Asset Liability Committee (ALCO). These policies approved from time to time by Board of Directors, Committees of Board form the basis for governing framework for each type of risk. The Board sets the overall risk appetite and philosophy for the Bank and have an oversight of all the risks assumed by the Bank. The Bank's Risk Management framework focuses on the management of key areas of Risk such as Credit, Market, Operational Risk and Liquidity Risk and Pillar II risks, quantification of these risks, wherever possible. The risk management function in the Bank strives to proactively anticipate vulnerabilities in the business operations through quantitative or qualitative examination of the embedded risks for effective and continuous monitoring and control. An independent risk management function ensures that risk is managed through a risk management architecture as well as through policies and processes approved by Board of Directors. The risk management policies and procedures established are updated on continuous basis in compliance to RBI guidelines and benchmarked to best practices. The Board of Directors with its committee-Integrated Risk Management Committee (IRMC) reviews risk management policies of the Bank pertaining to credit, market, liquidity, operational & Pillar II risks that includes strategic risk and reputational risk, Internal Capital Adequacy Assessment Process (ICAAP) and stress testing. Risk Management is administered by Executive/ Senior Management Committees & Chief Risk Officer (CRO) through Integrated Risk Management Department (IRMD). The Bank has structured management committees; Credit Risk Management Committee (CRMC), Operational Risk Management Committee (ORMC) and Market Risk Management Committee (MRMC) for credit risk, operational risk and market risk that operate within the broad risk management framework of the Bank to assess and minimize these risks. Information security and business continuity plan also forms part of risk management functions in the Bank. Treasury activities are separately monitored by mid office, which reports to IRMD. The Bank has Stress Testing Policy to measure impact of adverse stress scenarios on the adequacy of capital. The stress scenarios are idiosyncratic, generic and a combination of both.

Business Responsibility Report

In terms of Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, top 1000 Listed Entities based on their market capitalization as on 31st March every year are required to submit their Business Responsibility Report (BRR) as a part of the Annual Report. The Bank's Business Responsibility Report describing the initiatives taken by the Bank from an environmental, Social and governance perspective is enclosed as Annexure - 6.

Employees Stock Purchase Scheme

During the period under report, the Bank implemented J&K Bank Employee Stock Purchase Scheme, 2021 (JKBESPS, 2021), under which equity shares of the Bank were offered and allotted to the eligible employees, in accordance with the scheme parameters and the regulatory guidelines applicable to ESPS.

The Bank has received a certificate from its Secretarial Auditor to the effect that the scheme has been implemented in accordance with the SEBI Regulations and as per the resolution passed by the Members of the Bank authorising issuance of the said shares. The details, as required to be disclosed under Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 {Erstwhile Securities and Exchange Board of India (Share Based Employee Benefits) Regulation, 2014}, including the aforesaid certificate from the Secretarial Auditor are available on the Bank's website at https://www. jkbank.com/investor/investorInfo/ESPS.php

Information under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

The Bank does not engage in any form of child labour / forced labour / involuntary labour and does not adopt any discriminatory employment practices. The Bank has a Policy against sexual harassment and a Committee "Internal Complaints Committee for Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace" has been constituted for dealing with complaints of harassment or discrimination. The said policy is in line with relevant Act passed by the parliament in 2013. The Bank, through the policy, ensures that all such complaints are resolved within defined timelines. During the year, one complaint was lodged before the Internal Complaints Committee duly constituted under the Sexual Harassment of Women at Work Place (Prevention and Redressal) Act, 2013 and the rules made thereunder. Accordingly, due inquiry proceedings were conducted in the case, as stipulated in the Act and adequate opportunity was provided to both complainant and respondent to present/ defend their case. The same was disposed of within the requisite time frame of 90 days.

Loans, Guarantees & Investment in Securities

Pursuant to section 186(11) of the Companies Act, 2013 loans made, guarantees given or securities provided or acquisition of shares by a Banking company in the ordinary course of its business are exempted from disclosure in the Annual Report. The particulars of investments made by the Bank are disclosed in notes number 5 to 8 of Schedule 18 of the Financial Statements as per the applicable provisions of the Banking Regulation Act, 1949.

Contracts or Arrangements with Related Parties

Considering the nature of the Industry in which the Bank operates, transactions with related parties of the Bank are in the ordinary course of business and are also at arm's length basis. There was no materially significant related party transaction entered by the Bank with promoters, Directors, Key managerial personnel or other persons which may have a potential conflict with the interests of the Bank. The policy on Related Party Transactions and dealing with related parties as approved by the Audit Committee and the Board of Directors is uploaded on the website of the Bank and the link for the same is https://www.jkbank.com/pdfs/policy/ Related%20Party%20Transactions%20Policy.pdf Statement of related party transactions under sub section (1) of section 188 of the Companies Act, 2013 is attached herewith as Annexure 5.

Information under Insolvency and Bankruptcy Code, 2016

The Bank as on 31st March, 2022 has cases under the IBC resolution the details whereof along with existing status is tabulated as under: (Amt. in Crs)

S. No. No. of Accounts Stage of Process NPA / NPI outstanding Recoveries during the year , if any
1 27 Resolution process (Pending with NCLT) 2682.57 Nil
2 19 Liquidation Process 1501.56 2.08
3 0 Resolution approved / implemented during the year 0 0

Frauds reported by the Bank

The Bank during the financial year 2021-22 has detected/ reported 19 cases of frauds to Reserve Bank of India involving an amount of Rs 246.16 Crore.

Frauds reported by Auditors

During the year under review, no fraud was reported by any of the statutory auditors under section 143 (12) of the Companies Act, 2013 to the Ministry of Corporate Affairs, Govt. of India.

Consolidated Financial Statements

Pursuant to Section 129 of the Companies Act, 2013, the Bank has prepared Consolidated Financial Statements of the Bank, its Subsidiary (JKB Financial Services Ltd.) and also its Associate (J&K Grameen Bank) which shall be laid before shareholders at the ensuing 84th Annual General Meeting of the Bank along with Bank's Financial Statements under sub-section (2) of Section 129 i.e. Standalone Financial Statements of the Bank. Further, pursuant to the provisions of Accounting Standard (AS) 21 - Consolidated Financial Statements notified under section 133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules 2014 issued by the Ministry of Corporate Affairs, the Consolidated Financial Statements of the Bank along with its subsidiary/Associate for the year ended March 31, 2022 form part of this Annual Report.

Statutory Auditors

The Central Statutory and Branch auditors of the Bank are appointed by the Comptroller & Auditor General of India (C&AG) pursuant to Section 139(5) of the Companies Act, 2013. The Bank had four (4) Central Statutory auditors appointed by the C&AG of India for the year under review as given below:

1. O AGGARWAL & CO, Chartered Accountants

2. DHARAM RAJ & CO, Chartered Accountants

3. ARORA VOHRA & CO, Chartered Accountants

4. HEM SANDEEP & CO, Chartered Accountants

Fees paid to Statutory Auditors

The details of total fees, for all services, paid by the Bank on a consolidated basis to the Statutory Central Auditors are tabulated below: (Amount in Rs. Lakhs)

S. No. Particular M/S O Aggarwal & Co. M/S Hem Sandeep & Co M/S Arora Vohra & Co M/S Dharam Raj & Co M/s K K Goel & Associates* M/s P C Bindal &Co* M/s Verma Associates* M/s O P Garg & Co* Total
1 Statutory Audit / Limited Review / Certification & Attestation Charges 72.80 85.85 85.71 88.36 24.55 26.91 24.55 24.55 433.28
2 Fee payment by J & K Grameen Bank (Associate) to Central Statutory Auditors of the Bank 4.55 4.55

* Fee paid on account of limited review for the 1st quarter of the financial year 2021-22 to previous year Statutory Central Auditors.

Comments of C&AG

Comptroller and Auditor General of India has Comments under Section 143 (6) of The Companies Act, 2013 on the accounts of the Bank for the year ended 31st March 2022 and the Bank's replies to the comments are furnished as under:

S.No. CAG Comments Auditors'/Banks' Remarks
1. The statutory auditors at Point No. 2 have reported that the waiver / write off of debts had resulted in loss of Rs.229.88 crore. However, the waiver/write-off of debts by the Bank had resulted in loss of Rs.29.60 crore, the remaining amount of Rs.200.28 crore being unapplied interest was not recognized by the Bank. For effecting recovery in Non-Performing Assets (NPAs) the Bank takes recourse to various options which includes One-Time Settlements where the Bank endeavours to recoup the maximum outstandings in the shortest possible time. However, in some chronic NPAs the recovery entails some sacrifice of the unapplied interest and sometimes a part of the principal NPA balance is also waived. As the Bank does not recognize the interest income on NPAs in line with the Income Recognition & Asset Classification guidelines of the RBI, therefore the waiver of unapplied interest does not affect the Profit & Loss of the Bank. It is essentially a notional loss. However, the waiver of principal NPA balance results in Loss which has been rightly pointed out by the C&AG to be Rs. 29.60 Crore for the FY ended March'2022.
2. The statutory auditors at Point No. 10 have stated that no case of greening of advances and up-gradation of loan account at the fag end of the year or delay/ non-declaration of NPA as per RBI guidelines has been reported. The statement made by the Statutory Auditors is incorrect as advances amounting to Rs.586.64 crore were not declared as NPA by the Bank as per RBI guidelines. Assets worth Rs.586.64 crore were downgraded after identification by the auditors during the audit of Branch units. As such the final accounts show these loans as NPA and should have been disclosed by the Statutory Auditor in the declaration under Section 143(5). In line with the ‘Income Recognition & Asset Classification' guidelines of the RBI, the Bank has automated the Asset classification (downgrade / upgrade) of all borrowal accounts. The accounts identified by the Statutory Auditors for downgrading were mainly on account of non- financial reasons. Ever-greening of loan accounts happens when the accounts are maintained as Standard through circumvention or ad-hoc credits by sanctioning some additional credit facilities. The downgrade on non-financial grounds does not in any way suggest that the Bank resorted to any greening or upgradation of accounts towards fag-end of the year. Hence the statement of the Statutory Auditors that no case of greening of loan accounts have been observed is factually correct.
3. Other Assets (Schedule-11) includes amount of Rs.1716.11 crore as pension dues from Government of UT of Jammu & Kashmir and Government of UT of Ladakh. However, this material fact has neither been disclosed in Notes to Account nor qualified by the statutory auditors. The same has been duly mentioned in the Notes to Accounts at Point No. 22 to the Notes to Accounts in the audited financial results.

Secretarial Auditors

Pursuant to Section 204 of the Companies Act 2013, your Bank has appointed CS Ghulam Jeelani Reshi, Proprietor of M/s Reshi & Associates, Company Secretaries as its Secretarial Auditor to conduct the Secretarial Audit of the Bank for the FY 2021-22. The Bank provided all assistance and facilities to the Secretarial Auditor for conducting their audit.

Secretarial Audit Report

The report of Secretarial Auditor for the FY 2021-22 is annexed to this report as Annexure 2. The Bank's replies to the comments of Secretarial Auditor are furnished as under:

S.No. Comments/Observations of the Secretarial Auditor Response of the Bank
1. The Composition of the Board was not in compliance to the Section 152 of the Companies Act, 2013 as the Bank did not have adequate number of rotational directors. The non-compliance in the period under report was mainly on account of reasons beyond the control of the Bank. However, the Bank is in the process of complying with Section 152 of the Companies Act, 2013.
2 The Bank filed the Forms DIR-12 relating to the appointment/ cessation of CFO & appointment of Govt. Nominee Director with Registrar of Companies beyond the stipulated time period under the Act with additional fee due to system issues/technical reasons. The comments are self-explanatory and thus, do not require any further explanations.
3 Due to non-reappointment of Mr. Vikram Gujral at the 83rd Annual General Meeting held on September 30, 2021 the composition of Nomination & Remuneration Committee had fallen below the minimum required level. The Committee was reconstituted on December 28, 2021 with the requisite membership.

Compliance with Secretarial Standards

The Bank is in compliance with all applicable Secretarial Standards as notified from time to time except to the extent stated in the secretarial audit report.

Employee Remuneration

The statement containing particulars of employees as required under section 197(12) of the Companies Act, 2013 read with rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given in "Annexure 3" forming part of this report.

Statutory Disclosures

1. The disclosures to be made under sub- section (3)(m) of Section 134 of the Companies Act, 2013 read with rule (8) (3) of the Companies (Accounts) Rules, 2014 by your Bank are explained as under:

A. Conservation of energy

(i) The steps taken or impact on conservation of energy.

Bank is continuously working towards achieving low carbon footprint for which many steps have been taken including use of energy efficient IT equipment Various initiatives taken in this regard by the Bank are given below:

Bank's Data Center is hosted at a high energy efficient hosting facility in Noida which operate on the ITIL based service delivery framework and follow ISO 9001 and ISO 2000 standards.

Bank is shifting its Disaster Recovery Site to a new co-location site in Mumbai which is Asia's Largest Rated 4 Hyper scale Datacenter aligned to TIA-942 standard having strong focus on various environmental considerations

Integration with Government Digi locker Platform has been achieved to increase the usage of digitized documents for providing various banking facilities to customers which shall help to reduce the need of printing various documents.

Usage of Digital Signage Screens has been increased across the Bank to display various regulatory notifications /advisories digitally therefore eliminating the paper usage.

Energy star compliant computing and communication hardware is used by the Bank across all offices and banking outlets.

(ii) The steps taken by the Bank for utilizing alternate sources of energy.

Bank operates in a non-energy intensive environment. However, it is always ensured that energy efficient hardware / equipment which consumes less power is procured and put in operation. Besides replacement of CFL Lamps with LED Lamps / fixtures wherever needed stands achieved.

(iii) The capital investment on energy conservation equipment.

Bank is continuously striving to ensure energy conservation equipment are used across enterprise like Virtual Servers, Thin Clients, Multi-purpose Printers, multi-purpose kiosks, scanners, etc.

B. Technology Absorption :-

With increased adoption & demand for digital channels by customers, our Bank has been at forefront to introduce new digital services, leverage advanced technological platforms for better & enhanced customer experience Many new digital services have been introduced with customer centric focus which includes new Mobile banking platform (mPay Delight), Contactless Card transactions, RuPay Debit Card, Digilocker, GRAS, Enterprise Fraud Risk Monitoring, Contact Centre feature enhancement etc.

As part of the long term IT Strategy Bank has recently migrated to the latest version of Core Banking Solution (Finacle 10) that has powerful transformational capabilities for increased productivity, rapid innovation and a comprehensive set of offerings to meet diverse customer demands.

C. Foreign Exchange Earnings and Outgo:

The Foreign Exchange earned in terms of actual inflows during the year and the Foreign Exchange outgo during the year in terms of actual outflow: During the Year ended 31.03.2022 the Bank earned Rs.78.51 lacs and spent Rs.152.86 lacs in foreign currency. This does not include foreign currency cash flow in derivatives and foreign currency exchange transactions.

2. No significant and material orders were passed by the regulators or courts or tribunals impacting the going concern status of the Bank's operations in future.

3. Number of cases filed, if any and their disposal under Section 22 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:

Your Bank has Zero tolerance towards any action on the part of any executive/employee which may fall under the ambit of ‘Sexual Harassment' at workplace, and is fully committed to uphold and maintain the dignity of every women executive/employee working in the Bank. One complaint of sexual harassment was lodged with the Internal Complaints Committee during the year 2021-22 and the same was disposed-off within the required time frame of 90 days.

4. No Stock options were issued to the Directors of your Bank

Annual Return

In accordance with the provisions of Companies Act, 2013, the Annual Return of the Bank for the financial year 2021- 22 in the prescribed Form MGT-7 is available on the website of the Bank at:https://www.jkbank.com/investor/financials/ annualReturns.php

Directors Responsibility Statement

Pursuant to Section 134(3)(c) of the Companies Act, 2013, the Board of Directors hereby state that:

(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(b) the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit and loss of the Bank for that period;

(c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(d) the directors had prepared the annual accounts on a going concern basis;

(e) the directors, had laid down internal financial controls to be followed by the Bank and that such internal financial controls are adequate and were operating effectively and;

(f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Adequacy of Internal Financial Controls related to Financial Statement

The Bank has adequate internal controls and processes in place with respect to its financial statements which provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements. These controls and processes are driven through various policies, procedures and certifications. The processes and controls are reviewed periodically. The Bank has a mechanism of testing the controls at regular intervals for their design and operating effectiveness to ascertain the reliability and authenticity of financial information.

Requirement for maintenance of cost Records

The cost records as specified by the Central Government under section 148(1) of the Companies Act, 2013 are not required to be maintained by the Bank.

CEO & CFO Certification

Certificate issued by Mr. Baldev Prakash, MD & CEO and Mrs. Rajni Saraf, CFO of the Bank, for the financial year under review, was placed before the Board of Directors at its meeting held on 12th May, 2022 in terms of Regulation 17(8) of the Listing Regulations.

Important Events after the Closure of Financial Year ended 31-03-2022

This report covers the period of financial year of the Bank beginning on 1st April, 2021 to 31st March, 2022. However, few material events listed below happened from 1st April, 2022 till the date of this report:

a) The Board of Directors of the Bank on 27th April, 2022 decided to obtain consent of the Members of the Bank through Postal Ballot by way of special resolutions:

Re-appointment of Mr. Naba Kishore Sahoo (DIN: 07654279) as an Independent Director on the Board of the Bank

Appointment of Mr. Anand Kumar (DIN: 03041018) as an Independent Director on the Board of the Bank

The shareholders of the Bank approved the above mentioned resolutions on 29th May, 2022.

b) The Government of Jammu & Kashmir vide order no. 567-JK(GAD) of 2022 dated 17th May, 2022 has nominated Mr. Vivek Bharadwaj, IAS {Financial Commissioner (Additional Chief Secretary), Finance Department} as Government Nominee Director on the Board of Directors of the Bank in place of Mr. Atal Dulloo, IAS (Additional Chief Secretary) with effect from 17th May, 2022 and the same was taken on record by the Board of Directors of the Bank in their meeting held on 10th June, 2022.

c) On 1st April, 2022, the bank has allotted 2,85,93,267 (Two Crore Eighty Five Lac Ninety Three Thousand Two Hundred And Sixty Seven) equity shares at a price of Rs. 32.70 (Rupees Thirty Two and Seventy Paisa Only) which was at a discount of 4.97% (i.e. Rs 1.71 per equity share) to the Qualified Institutional Buyers (QIB) aggregating to a total of Rs. 93,49,99,830.90 (Rupees Ninety Three Crore Forty Nine Lacs Ninety Nine Thousand Eight Hundred Thirty and Ninety Paisa Only). The Issue opened on March 28, 2022 and closed on March 31, 2022.

d) Mrs. Rajni Saraf was appointed as Chief Financial Officer of the Bank on April 27, 2022 in place of Mr. Balvir Singh Gandhi, who ceased to be the Chief Financial Officer of the Bank.

e) Mr. Pratik D Punjabi was appointed as Chief Financial Officer of the Bank to be effective from the date of his joining i.e. July 01, 2022 in place of Mrs. Rajni Saraf, who ceased to be the Chief Financial Officer of the Bank after attaining the age of superannuation on June 30, 2022.

Transfer of Shares to UT of Ladakh

The J&K Govt. General Administration Department S.O. No. 339 dated 30/10/2020 apportioned the Assets, Liabilities and Posts of the erstwhile State of Jammu and Kashmir between the Union Territory of Jammu and Kashmir and Union Territory of Ladakh. As per the said notification, 8.23% shareholding of Jammu & Kashmir Bank Ltd as on the date of enforcement of Jammu & Kashmir Reorganisation Act, 2019 i.e. October 31, 2019 (which amounts to 13.89% of the shareholding of the erstwhile state of Jammu and Kashmir as on 31.10.2019) shall be transferred to the UT of Ladakh and then the remaining 51% of shareholding of erstwhile Jammu and Kashmir state would remain with the UT of Jammu and Kashmir. The Reserve Bank of India vide letter no. DOR. HOL.No.S481/16.01.063/2021- 22 dated July 26, 2021, has accorded approval for the said apportionment. For want of formalities, the shares earmarked to the Union Territory of Ladakh are yet to be transferred.

Acknowledgements

The Directors thank the valued customers, shareholders, well-wishers and correspondents of the bank in India and abroad for their goodwill, patronage and support. The Directors acknowledge with gratitude the valuable and timely advice, guidance and support received from Government of India, Government of Jammu & Kashmir, Reserve Bank of India,

Securities and Exchange Board of India (SEBI), Insurance Regulatory Developmental Authority (IRDA), NABARD, SIDBI, IBA, FIMMDA, FEDAI, Stock Exchanges, Ministry of Corporate Affairs, Registrar of Companies, Comptroller & Auditor General of India, Financial Institutions and the Central Statutory Auditors of the bank in the functioning of the bank. The Directors place on record their deep appreciation of the valuable contribution of the members of the staff at all levels for the progress of the bank during the year and look forward to their continued cooperation in realization of the corporate goals in the years ahead.

   

Jammu and Kashmir Bank Ltd Company Background

Baldev Prakash
Incorporation Year1938
Registered OfficeMoulana Azad Road,
Srinagar,Jammu & Kashmir-190001
Telephone91-194-2481930-35 Extn 1541-1547,Managing Director
Fax91-194-2481928
Company SecretaryMohammad Shafi Mir
AuditorO Aggarwal & Co/Arora Vohra & Co/Hem Sandeep & Co
Face Value1
Market Lot1
ListingBSE,MSEI ,NSE,
RegistrarKFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032

Jammu and Kashmir Bank Ltd Company Management

Director NameDirector DesignationYear
Mohammad Shafi MirCompany Sec. & Compli. Officer2022
R K ChhibberDirector2022
Baldev PrakashManaging Director & CEO2022
Rajeev Lochan BishnoiIndependent Director2022
Anil Kumar GoelIndependent Director2022
Umesh Chandra PandeyIndependent Director2022
Naba Kishore SahooIndependent Director2022
Anand KumarIndependent Director2022
Vivek BharadwajNominee (Govt)2022
Nitishwar KumarDirector2022
Mohamed Ishaq WaniDirector2022
Sushmita ChadhaIndependent Director2022

Jammu and Kashmir Bank Ltd Listing Information

Listing Information
BSESMALLCA
BSEALLCAP
BSEFINANCE

Jammu and Kashmir Bank Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Interest/disc on advance/billsRs.0006572.4972
Income on investments Rs.0001607.6093
Interest on balance with RBI Rs.000266.032
Others NA 0000.1504

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