The Jammu and Kashmir 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 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. 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. Mushtaq Ahmed is the new Chairman & CEO of Jammu & Kashmir Bank.
J&K Bank's Annual Report 2008–09 has won three awards at the prestigious LACP 2009 Vision Awards – the world's largest award programme for Annual Reports, organized by California-based League of American Communications Professionals (LACP), US. The LACP is a forum within the public relations industry that facilitates discussion of best-in-class practices in public relations and recognizes exemplary communication capabilities at a global level. The awards received include – Rank 73 on the top hundred list of annual reports from around the world, Platinum Award in the Commercial Banks – Up to $10 billion annual revenue from the Asia Pacific Region and Silver Award for Most Creative Report across all sectors from the Asia Pacific Region. Dr Haseeb Drabu was chairman and chief executive of the bank for the period 2005 to 2010.
The bank is celebrating its platinum jubilee this fiscal year (FY13). To make this year remarkable, the bank aims to achieve a total business of Rs 1000 billion and earn 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 in its Platinum Jubilee year.
On 15 May 2013, bank announced that it has achieved the target of promised Rs 10 billion profit for the FY 2012–13. The bank posted net profit of Rs 10551 million and business turnover of Rs 1034 billion for the FY 2012–13. In its Platinum jubilee year, the banks board of directors recommended special dividend of 500% or Rs 50 per share for 2012–13.
Brief profile/conclusion
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.
The bank incorporated in 1938.
