Jammu, November 16: Jammu and Kashmir Bank is a name synonymous with the state of Jammu and Kashmir as the bank has touched almost everybody of the state in one way or the other.
The bank has been making the fortunes of the state subjects and the state since its inception despite many ups and downs through its journey of more than 77 years in the service of the state.
During this process the Jammu and Kashmir Bank has seen many changes in the shape of banking, its services and introduction of technology besides opening of new branches across the length and breadth of the country with plans to setup branches in foreign countries as well particularly Dubai etc.
J&K Bank functions as a universal bank in Jammu & Kashmir and as a specialised bank in the rest of the country. It is 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.
J&K Bank follows a two-legged business model whereby it seeks to increase lending in its home state which results in higher margins despite modest volumes, and at the same time, seeks to capture niche lending opportunities on a pan-India basis to build volumes and improve margins.
J&K Bank operates on the principle of ‘socially empowering banking’ and seeks to deliver innovative financial solutions for household, small and medium enterprises.
The Bank is listed on the NSE and the BSE. It has a track record of uninterrupted profits and dividends for four decades. The J&K Bank is rated P1+, indicating the highest degree of safety by Standard & Poor and CRISIL.
The bank is functioning with a vision “to catalyse economic transformation and capitalise on growth” and “to engender and catalyse economic transformation of Jammu and Kashmir and capitalise from the growth induced financial prosperity thus engineered. The Bank aspires to make Jammu and Kashmir the most prosperous state in the country, by helping create a new financial architecture for the J&K economy, at the center of which will be the J&K Bank.
The bank has a two-fold mission, “to provide the people of J&K international quality financial service and solutions and to be a super-specialist and profitable bank in the rest of the country.
The bank adopted a new logo representing Bank’s philosophy and business strategy. The three coloured squares represent the regions of Jammu, Kashmir and Ladakh. The counter-form created by the interaction of the squares is a falcon with outstretched wings – a symbol of power and empowerment. The synergy between the three regions propels the bank towards new horizons. Green signifies growth and renewal, blue conveys stability and unity, and red represents energy and power. All these attributes are integrated and assimilated in the white counter-form.
The Bank was founded on 1 October 1938 under letters patent issued by the Maharaja of Jammu and Kashmir, Hari Singh. The Maharaja invited eminent Kashmiri investors to become founding directors and shareholders of the bank, the most notable of which were Abdul Aziz Mantoo, Pesten Gee and the Bhaghat Family, all of whom acquired major shareholdings.
The bank commenced 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. In 1971, the bank acquired the status of a scheduled bank and was declared as an “A” Class bank by the Reserve Bank of India in 1976.
The bank had to face serious problems at the time of independence when out of its total ten branches two branches of Muzaffarabad, Rawalakot and Mirpur fell to the other side of the line of control (now Pakistan-occupied Kashmir) along with cash and other assets. Following the extension of Central laws to the state of Jammu & Kashmir, the bank was defined as a government company as per the provisions of Indian companies act 1956.
The bank celebrated its platinum jubilee in the year 2013. To make the year remarkable, the bank achieved a total business of Rs 1000 billion and earned a net profit of Rs 10 billion. On 1 April 2013 the bank surpassed the target of promised Rs 1000 billion business and is confident of meeting its other annual targets as well.
The bank’s corporate headquarters is in Srinagar and has a network of 821 computerized bank branches and 901 ATMs across the country.
Mushtaq Ahmed is the current Chairman & CEO of the bank while other directors include Navin Kumar Choudhary, IAS, Commissioner/Secretary to Govt. Finance Deptt. Govt of J&K, J. P. Sharma, Vikrant Kuthiala, Rakesh Kumar Gupta,Dilip K Kaul, Khaver Alam Jeelani, Azhar-Ul-Amin, Abdul Majid Mir and Mrs Masooda Jabeen under whose supervision the bank if making progress by leaps and bounds.