Jammu & Kashmir Bank

Jammu & Kashmir Bank Limited (J&K Bank) is an Indian public sector bank headquartered in Srinagar, Jammu and Kashmir. J&K Bank was incorporated on October 1, 1938, by then ruler of princely state of Jammu and Kashmir Maharaja Hari Singh with initial paid up capital of ₹ 5.00 Lakh. The bank registered a total business turnover of over Rs.1750 billion as on March 31, 2021.

Jammu and Kashmir Bank Limited
TypePublic
NSE: J&KBANK
BSE: 532209
Industry
Founded1 October 1938 (1938-10-01)
FounderMahraja Hari Singh
Headquarters
Srinagar, Jammu and Kashmir, India
Key people
Baldev Prakash
(MD & CEO)
Products
RevenueIncrease₹8,830.08 crore (US$1.1 billion) (2020)[1]
Increase ₹4,489.77 crore (US$560 million) (2020)[1]
Increase ₹432.121 crore (US$54 million) (2021)[1]
Total assetsIncrease ₹120,291.95 crore (US$15 billion) (2020)[1]
OwnerGovernment of Jammu and Kashmir
Number of employees
12,307 (2021)
Capital ratio12.20%[1]
Websitewww.jkbank.net

History

J&K Bank was founded on October 1, 1938, under letters patent issued by then Maharaja of Jammu & Kashmir, Maharaja Hari Singh. The Maharaja had invited eminent investors to become the founding directors and shareholders of the bank.

The bank commenced banking business on July 4, 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.

Post-independence, the two branches of the Bank out of 10 branches viz. Muzaffarabad Rawalkot and Mirpur (now PAK) fell to the other side of the Line of Control along with cash and other assets.

The Bank is defined as a government company as per provisions of Indian Companies Act 2013. In 1971, the bank acquired the status of a Scheduled bank and was declared an ‘A’ class bank by Reserve Bank of India in 1976.

J&K Bank is the scheduled commercial and oldest private sector bank in India.

Milestones

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 other annual targets as well in its platinum jubilee year.[2][3]

The bank on October 1, 2018, completed its 80 years of existence and the day was celebrated by the Bank under the theme “80 years of bonding – I pledge to strengthen it”.[4]

On July 1, 2019, the bank surpassed deposit base of Rs.1000 billion with over 10 million customers.[5]

In July 2020, the bank figured among the top 4 banks in India in achieving targets in digital payments, contributing towards ‘Digital India’ mission.[6]

Network

The Bank has over 2400 touch points across the country including 964 branches and 1388 ATMs as on Aug 31, 2021 spread over 18 states and 4 UTs. Out of 964 BUs, 804 are operating in the Union Territory of Jammu & Kashmir, 36 in Union Territory of Ladakh and 124 are operating outside the UTs of J&K and Ladakh. Bank has 75 Easy Banking Units (EBUs) in UT of J&K and Ladakh out of which 35 EBUs are operating in UT of Ladakh.

Subsidiaries

J&K Bank provides investment & stock broking through its wholly owned subsidiary JKB Financial Services Limited (JKBFSL). It has 12 branches (5 Branches in Kashmir, 6 Branches in Jammu and 1 Branch in Gurgaon) besides having sales desks across 61 J & K Bank Branches across the Union Territory of J & K. JKBFSL provides services in stock broking, depository, distribution of mutual funds, IPOs, ETFs, Tax Planning etc.

Associate

J&K Bank is also sponsor bank for J&K Grameen Bank with a share holding of 35% engaged in providing all kinds of financial services in UT of J&K and Ladakh. J&K Grameen Bank was established on June 30, 2009, and is functioning in 11 districts in the Union Territory of Jammu & Kashmir and 2 districts in UT of Ladakh.[7]

Tie-ups

Bank has entered into tie-ups with various national as well as multinational companies.

Under Bancassurance, Bank is a partner to PNB Metlife for life insurance while as for non-life, Bank has collaborated with Bajaj Allianz General Insurance Company Limited (BAGICL) & IFFCO Tokyo General Insurance Limited.[8]

Besides, Bank has entered into business agreements with companies like TATA motors,[9] Mahindra & Mahindra[10] for extending its financial services to its consumers.

Corruption allegations

J&K Bank has been allegedly accused on multiple occasions of un-accountability.[11][12] 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".[11][13][14]

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.[15][16][17]

See also

References
  1. " jkbank.com (March 2021).
  2. Jammu and Kashmir Bank achieves ₹ one lakh crore business – Economic Times. Articles.economictimes.indiatimes.com (1 April 2013). Retrieved on 6 December 2013.
  3. 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.
  4. IMTIYAZ, SOFI. "Celebrating eighty years of bonding". Greater Kashmir. Retrieved 28 July 2021.
  5. "Jammu & Kashmir Bank: Banking on profitability". Money Times. 22 May 2019. Retrieved 28 July 2021.
  6. KNS. "KNS". www.knskashmir.com. Retrieved 28 July 2021.
  7. "J&K Grameen Bank - Engendering Empowerment". www.jkgb.in. Retrieved 28 July 2021.
  8. "Statement on our relationship with Jammu & Kashmir Bank". www.iffcotokio.co.in. Retrieved 28 July 2021.
  9. www.ETAuto.com. "Tata Motors partners with J&K Bank for CV financing - ET Auto". ETAuto.com. Retrieved 28 July 2021.
  10. "Mahindra & Mahindra enters into preferred financier agreement with J&K Bank for Car Loans and Commercial Vehicle Finance". www.motoroids.com. 30 April 2013. Retrieved 28 July 2021.
  11. Pandit, M. Saleem (23 December 2019). "2 ex-chairmen of J&K Bank arrested for graft". The Times of India. Retrieved 8 August 2020.
  12. PTI (7 August 2020). "J&K was a broken state, frauds were at unbelievable levels everywhere, says chief secretary". ThePrint. Retrieved 8 August 2020.
  13. "J&K Bank loan fraud: Anti-corruption bureau lodges FIR in ₹1,100 cr scam". Livemint. 20 October 2019. Retrieved 8 August 2020.
  14. 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.
  15. "Ex-J&K Minister's Son "Siphoned Off" Loan Money To Travel, Buy Illegal Assets: ED". NDTV. 8 August 2020. Retrieved 8 August 2020.
  16. "ED raids 17 places over J&K Bank loan fraud case - Sentinelassam". Aentinel Assam. 7 August 2020. Retrieved 8 August 2020.
  17. "Bank fraud case: ED raids former J-K minister's son Hilal Rather". Hindustan Times. 6 August 2020. Retrieved 8 August 2020.
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