Jammu & Kashmir Bank

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Jammu and Kashmir Bank Limited
Native name
جموں و کشمیر بنک
Financial services
Founded1 October 1938
Key people
RK Chibber (Chairman & MD)
ProductsConsumer banking, corporate banking, finance and insurance, mortgage loans, private banking, wealth management, investment banking
RevenueDecrease7,178.66 crore (US$1.0 billion) (2017)[1]
Decrease 1,294.34 crore (US$180 million) (2017)[1]
Decrease −1,632.29 crore (US$−230 million) (2017)[1]
Total assetsIncrease82,018.67 crore (US$11 billion) (2017)[1]
OwnerGovernment of Jammu and Kashmir (68.18%)
Number of employees
(12603) (2019)
Capital ratio10.80% [1]

Jammu and Kashmir Bank Ltd. (J&K Bank) is a J&K–based semi-state owned scheduled banking and financial services company incorporated on 1 October 1938 by the King of Jammu and Kashmir, Hari Singh. The bank functions as a universal bank in Jammu and Kashmir while in the rest of India as a specialised bank.[2]


The Jammu and Kashmir Bank was founded on 1 October 1938 under letters patent issued by the King of Jammu and Kashmir, Hari Singh. The King had invited eminent investors to become the founding directors and shareholders of the bank.[3][4]

The bank commenced banking business on 4 July 1939 and was considered the first of its nature and composition as a state-owned bank in the country. The bank was established as a semi-state bank with participation in capital by state and the public under the control of state government. The bank had to face serious problems at the time of independence when out of its total of ten branches two branches of Muzaffarabad, Rawalakot and Mirpur fell to the other side of the line of control (now Pakistan administered Kashmir) along with cash and other assets.[5]

Following the extension of Central laws to the state of Jammu and Kashmir, the bank was defined as a government company as per the provisions of Indian Companies Act 1956.[6] In 1971, the bank had acquired the status of a scheduled bank and was declared as an "A" Class bank by the Reserve Bank of India in 1976.[6]


Government banking company incorporated and registered under the J&K Companies Regulations No. XI of 1977 (Samvat) and Old Private Sector Bank under RBI Guidelines[7] According to the website, J&K Bank functions as a universal bank in Jammu & Kashmir and as a specialised bank in the rest of the country. It was also the only private sector bank designated as RBI's agent for banking business, and carries out the banking business of the Central Government, besides collecting central taxes for CBDT. It has a strong State Government support in terms of capital infusion as needed from time to time.[2]


The bank celebrated its platinum jubilee in 2013. In that year the bank achieved a total business of 1000 billion and earned a net profit of 10 billion. On 1 April 2013 the bank surpassed the target of promised 1000 billion business and is confident of meeting its other annual targets as well in its platinum jubilee year.[8][9]

On 15 May 2013, bank announced that it has achieved the target of promised 10 billion profit for the FY 2012–13. The bank posted net profit of 10551 million and business turnover of 1034 billion for the FY 2012–13. In its platinum jubilee year, the banks board of directors recommended special dividend of 500% or 50 per share for 2012–13.[10][11][12]


The bank's corporate headquarters is in Srinagar near TRC (Tourist Reception Centre). The bank has a network of 1038 computerized bank branches out of which 877 branches are located in the Union Territory of Jammu and Kashmir and Union Territory of Ladakh (previously state of Jammu and Kashmir). The bank has network of 1340 ATMs and cash deposition machines (CDM) across the country as on March 21, 2020.[7]

Corruption allegations[edit]

J&K Bank has been allegedly accused on multiple occasions of un-accountability.[13][14] In 2019, following the formation of the union territories of Jammu and Kashmir, the Anti-corruption Bureau started investigations into alleged corrupt practices by a number of bank officials, including former bank chairpersons Parvaiz Ahmad Nengroo and Mushtaq Ahmad Sheikh. From 2011, chairpersons of J&K Bank allegedly made over "2,500 backdoor appointments".[13][15][16]

In August 2020, the Enforcement Directorate (ED) claimed that the son of former Jammu and Kashmir finance minister Abdul Rahim Rather, Hilal Rather, used money loaned from JK Bank "to splurge on foreign tours and acquire personal assets in India, Dubai and the US." In relation to this the ED raided a number of places in Srinagar, Jammu, Delhi and Punjab.[17][18][19]


In 2013, J&K Bank was awarded the best bank in terms of rural reach by Dun and Bradstreet - Polaris Financial Technology Awards.[20] In 2013, in terms of profitability, J&K Bank was the third most profitable bank in India.[21] In 2019, J&K Bank was awarded the "Top Bankers Award (North Zone)" for its work towards the Prime Minister's Employment Generation Programme.[22]

See also[edit]


  1. ^ a b c d e "Balance Sheet 31.03.2017" jkbank.com (15 March 2018).
  2. ^ a b "JK Bank: Brief Profile". JK Bank. Retrieved 8 August 2020.
  3. ^ About
  4. ^ JKB
  5. ^ Customer relationship management in j & k bank, p. 4,5
  6. ^ a b "Jammu & Kashmir Bank History | Jammu & Kashmir Bank Information - The Economic Times". Economic Times. Retrieved 8 August 2020.
  7. ^ a b Strategy and Business Development Division, J K Bank
  8. ^ Jammu and Kashmir Bank achieves one lakh crore business – Economic Times. Articles.economictimes.indiatimes.com (1 April 2013). Retrieved on 6 December 2013.
  9. ^ JK Bank vaults 1 lakh cr biz target Lastupdate:- Tue, 2 Apr 2013 18:30:00 GMT. Greaterkashmir.com (2 April 2013). Retrieved on 6 December 2013.
  10. ^ J&K Bank Q4 net profit up 20% at Rs 250cr. Moneycontrol.com. Retrieved on 6 December 2013.
  11. ^ JK Bank crosses Rs 1000 crore profit mark Lastupdate:- Thu, 16 May 2013 18:30:00 GMT. Greaterkashmir.com (16 May 2013). Retrieved on 6 December 2013.
  12. ^ J&K Bank posts 20.16% increase net profit; announces 500% dividend – Moneylife. Moneylife.in. Retrieved on 6 December 2013.
  13. ^ a b Pandit, M. Saleem (23 December 2019). "2 ex-chairmen of J&K Bank arrested for graft". The Times of India. Retrieved 8 August 2020.
  14. ^ PTI (7 August 2020). "J&K was a broken state, frauds were at unbelievable levels everywhere, says chief secretary". ThePrint. Retrieved 8 August 2020.
  15. ^ "J&K Bank loan fraud: Anti-corruption bureau lodges FIR in ₹1,100 cr scam". Livemint. 20 October 2019. Retrieved 8 August 2020.
  16. ^ Sharma, Arun (21 October 2019). "FIR against J&K Bank ex-chief, 23 others for Rs 1,100-crore fraud". The Financial Express. Retrieved 8 August 2020.
  17. ^ "Ex-J&K Minister's Son "Siphoned Off" Loan Money To Travel, Buy Illegal Assets: ED". NDTV. 8 August 2020. Retrieved 8 August 2020.
  18. ^ "ED raids 17 places over J&K Bank loan fraud case - Sentinelassam". Aentinel Assam. 7 August 2020. Retrieved 8 August 2020.
  19. ^ "Bank fraud case: ED raids former J-K minister's son Hilal Rather". Hindustan Times. 6 August 2020. Retrieved 8 August 2020.
  20. ^ "J&K Bank Gets Best Bank Award". Kashmir Life. 23 August 2013. Retrieved 8 August 2020.
  21. ^ "Jammu and Kashmir won FE India's Best Bank Award 2012-13". Jagranjosh.com. 2 April 2013. Retrieved 8 August 2020.
  22. ^ "J&K Bank bags Top Bankers Award for PMEGP - Jammu Links News". www.jammulinksnews.com. Retrieved 8 August 2020.

External links[edit]