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.
  Â
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.