AN OVERVIEW

The banking as it exists today is the result of the

transformation that has taken place over many
centuries .Throughout the globe, banking has been in the
existence in the one form or the other. The word bank is
said to be of Germanic origin, cognate with the French
word banque & the Italian word banca , both meaning
bench .It seems word may have derived its meaning from
the practice of Jewish money changers of Lombardy ( a
district in North Italy),who, in the middle ages, used to do
business sitting on benches in the market place.
The history of origins of banks is traceable in Asian times
the new testament contains a reference of the activities
of the money changers in the templates of Jerusalem. As
early as 2000 BC, the temples Babylonia were used as
banks & priests acted as financial agents until the public
lost confidence as a result of this belief in religion. In
ancient Greece, the famous Delphi & Olympia served as
the great depositories for the surplus funds of the public
& were the main centers of money lending business. The
traces of the credit by compensation & by the transfer
orders are found in Assyria, Phoenicia & Egypt before the
growth of the system in its full form in the Greece &
Rome.

INTRODUCTION
HISTORY OF JAMMU AND KASHMIR BANK
The Jammu & Kashmir Bank was founded on October 1
1938 under letters patent issued by the Maharaja of
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 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.
The bank had to face serious problems at the time of
independence when out of its total of ten branches two
branches ofMuzaffarabad,Rawalakot and Mirpur fell to the
other side of the line of control (now Azad 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 Jammu & Kashmir Bank is considered as one of the
fastest growing banks in India with a network of more
than 500 branches/offices spread across the country
offering world class banking products/services to its
customers. Today, the Bank has a status of value driven

organization and is always working towards building trust

with shareholders, customers, borrowers, regulators,
employees and other diverse stakeholders, for which it
has adopted a strategy directed to developing a sound
foundation of relationship and trust aimed at achieving
excellence, which of course, comes from the womb of
good corporate governance. Good governance is a source
of competitive advantage and a critical input for
achieving excellence in all pursuits. J&K Bank considers
good corporate governance as the sine qua non of a good
banking system and has adopted a policy based on all the
four pillars of good governance transparency,
disclosures, accountability and value.
According to the extended central laws of the state,
Jammu & Kashmir bank was defined as a government.
Company as per the provision of Indian companies act
1956. In the year 1971, the bank received the status of
scheduled bank.. It was declared as A class Bank by RBI
in 1976.
1993-94:- The bank tied up with Reuter news agency for
instantaneous informations about global foreign currency
rates & fluctuations thereof.
1995:- The banking Ombudsman scheme was launched in
June, with a view to provide quick & inexpensive facility to
resolve the grievances of banks customers.
1998:- J&K bank limited is coming out with a public issue
of 18500000 equity shares of Rs10 each for cash at a
premium of Rs 28 per share aggregating Rs 70.30 crore.

1999:- The bank entered into an agreement with IBA to

connect its ATMs through a share network.
2000:- J&K bank has tied up with INFOSYS technologies to
offer Internet banking for its e- commerce initiatives.
2001:- The bank has launched J&K bank- AMEX Co.
Branded Credit card pursuant to agreement entered with
American Express Bank.
The bank has tied up with the US based insurance giant,
METLIFE for the proposed foray in the insurance sector.
2003:- J&K bank has strengthen its bond with INFOSYS by
successfully deploying FINACLE Core banking.
J&K bank has decided to launch GLOGAL ACCESS CARD
(an international Debit Card) in association with MASTER
CARD INTERNATIONAL).
2004:- J&K bank approves Rs300 crores for Reliance
Infocom.
J&K bank ties up with ICICI Bank to share ATM networks.
J&K bank signs MoU with BAJAJ Tempo.
IDBI bank ties up for Visa transaction with J&K bank to
launch a platform for the states merchant establishment.
2006:- J&K bank receives approval from RBI for increasing
the FIIs holding.
2007:- J&K bank limited has appointed Mr. M S Verma (Ex
chairman, State bank of India) & Mr G P Gupta (Ex
chairman and Managing Director,IDBI) as Directors of the

bank in the meeting of the board of directors held on

June-9-2007.
Dr Haseeb Drabu was chairman and chief executive of the
bank for the period 2005 to 2010.
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 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 201213.
In its Platinum jubilee year, the banks board of directors
recommended special dividend of 500% or Rs 50 per
share for 201213.
Today the bank has more than ------ branches across the
country and has recently become a billion dollar company
and has status of a value driven organization and is
always towards building trust with shareholders
employees, customers, borrowers, regulators &other
diverse stakeholders for which it has adopted a strategy
directed to developing a sound foundation of relationship
&trust aimed at achieving excellence, which of course,
comes from the womb of good corporate governance.
good governance is a source of competitive advantage

and a critical input for achieving excellence in all

pursuits . Jammu & Kashmir bank considers good
corporate
governancetransparency,
disclosures,
accountability and value, enabling it to practice
trusteeship, transparency, fairness and control, leading to
stakeholders delight, enhance shareholder value &ethical
corporate citizenship. it also ensures that bank is
managed by an independent and highly qualified board
following best globally accepted practices, transparent
disclosures and empowerment of share holders, besides
ensuring to meet share holders aspirations and societal
expectations following the principals of managements
executive freedom to drive the bank forward without
undue restrains but within the framework of effective
accountability. The excellence achieved by the bank in its
operations stemming from the root of voluntary good
governance has not gone unrecognized and bank has
recently bagged three prestigious awards for following
fair business practices and commitment to social
obligations.
J&K Bank is today one of the feasted grooving bank
of India with a network of 517 branches offices spread
across the country offering world class banking products
and service to its customers. Today the bank has the
status of value driven organization and is always
working towards
building trust
with
shareholders,
employees, customers, borrowers etc., for which it has
adopted strategy directed to developing a sound
foundation of relationship and trust aimed at achieving

excellence which of course comes from the

good corporate governance.

womb of

While announcing the JK Banks financial results for the

year 2009-10, the chairman of the bank said that bank is
looking ahead to increase the total business turnover to a
record Rs one lakh crore in 2012 from 60,294 crore the
bank has marked by March 2010 end, and net profit
of Rs 1000 cror e. The JK Bank that has emerged as face
of the economy of the state and is a participant in the
active development of the state has also created a
good network in many foreign countries.
T he bank has received a net profit of Rs 512.38
crore up by 25% from Rs 409. 84 crore recorded
during the previous financial year driven by a 70% rise in
fee income up to the end the last financial year 200910. The total business turnover moved to Rs 60,294
crore, increasing by 12% year on year over Rs 53,
935 crore. The loan book as on March 31, 2010
stood at Rs 23,057 crore up to 10% from last years Rs
20,930 crore, while the banks deposit base stood at Rs
37, 237 crore up to 13 from 33,004 crore as on March
ending 2009 T he fixed assets of the bank amount for
Rs.19.2 cr. and other assets are worth Rs 48.6cr. The
J&K Bank has the total cash and balance with RBI
Rs.321.996677 cr. and balancewith banks and money
at C&S notice is Rs. 121.727.cr as on 31-08-2008.
In the state of Jammu and Kashmir, the J&K Bank
has been the major contributor in providing credit to
poor artisans, retailers, small business, agriculture

and other allied activities, small scale industries and

technically qualified entrepreneurs. In these sectors with
Rs 137.89 cr. in agriculture sector, Rs 145.38 cr. in
industries sector and Rs 241.09 cr.
Revenue

68.21 billion(US$1.0 billion)(201516)

Operating income

116 billion (US$1.7 billion)(201516)

Net income

32.55 billion(US$480 million)(201516)

Total assets

420 billion (US$6.2 billion) as on 31 March 2016

Total equity

49.06 billion(US$730 million)(201213)

Number of

9400 as on 31 March 2013

employees

BALANCE SHEET OF J@K BANK

Particulars

Mar'16

Mar'15

Mar'14

Mar'13

Mar'12

Liabilities

12 Months

12 Months

12 Months

12 Months

12 Months

Share Capital

48.49

48.49

48.49

48.49

48.49

Reserves & Surplus

6375.48

6061.56

5675.12

4816.20

4044.69

Net Worth

6423.98

6110.05

5723.61

4864.69

4093.18

Secured Loan

2240.00

2339.67

1765.00

1075.00

1240.96

Unsecured Loan

69390.25

65756.19

69335.86

64220.62

53346.90

TOTAL LIABILITIES

78054.23

74205.91

76824.47

70160.31

58681.04

Assets
Gross Block

705.12

654.75

506.52

443.50

415.09

(-) Acc. Depreciation

.00

.00

.00

.00

.00

Net Block

705.12

654.75

506.52

443.50

415.09

Capital Work in Progress

58.60

34.16

27.29

12.68

5.18

Investments

20353.62

25124.30

26195.07

25741.07

21624.32

Inventories

.00

.00

.00

.00

.00

Sundry Debtors

.00

.00

.00

.00

.00

Cash and Bank

3203.00

3733.76

4213.90

5404.33

4453.87

Loans and Advances

55947.73

46538.48

47676.95

40141.74

33770.76

Total Current Assets

59150.74

50272.24

51890.85

45546.07

38224.63

Current Liabilities

2213.84

1879.54

1795.25

1583.00

1588.18

Provisions

.00

.00

.00

.00

.00

Total Current Liabilities

2213.84

1879.54

1795.25

1583.00

1588.18

NET CURRENT ASSETS

56936.89

48392.70

50095.60

43963.07

36636.45

Misc. Expenses

.00

.00

.00

.00

.00

TOTAL ASSETS(A+B+C+D+E)

78054.23

74205.91

76824.47

70160.31

58681.04

Rs (in Crores)

OR
Parameter

MAR'16

MAR'15

YoY

( Cr.)

( Cr.)

%Change

Share Capital

48.49

48.49

0.00%

Share warrants & Outstandings

0.00

0.00

0.00%

Total Reserve

6,375.48

6,061.56

5.18%

SOURCES OF FUNDS

Shareholder's Funds

6,423.98

6,110.05

5.14%

Deposits

69,390.25

65,756.19

5.53%

Borrowings

2,240.00

2,339.67

-4.26%

Other Liabilities & Provisions

2,213.84

1,724.84

28.35%

TOTAL LIABILITIES

80,268.07

75,930.75

5.71%

Cash and balance with Reserve Bank of India

3,126.74

2,373.06

31.76%

Balances with banks and money at call and short notice

76.27

1,360.71

-94.39%

Investments

20,353.62

22,759.59

-10.57%

Advances

50,193.29

44,585.82

12.58%

Gross Block

1,428.49

1,317.27

8.44%

Less : Accumulated Depreciation

723.37

662.52

9.19%

Less : Impairment of Assets

0.00

0.00

0.00%

Net Block

705.12

654.75

7.69%

Lease Adjustment

0.00

0.00

0.00%

Capital Work in Progress

58.60

34.16

71.55%

Other Assets

5,754.44

4,162.67

38.24%

TOTAL ASSETS

80,268.07

75,930.75

5.71%

Contingent Liability

16,864.11

21,697.24

-22.28%

Bills for collection

1,208.82

1,173.09

3.05%

APPLICATION OF FUNDS:

PROFIT AND LOSS ACCOUNT

Profit & Loss account of Jammu and Kashmir ------------------- in Rs. Cr. ------------------Bank
Mar '16 Mar '15
Mar '14

12 mths 12 mths

Income

12 mths

Mar '13

Mar '12

12 mths

12 mths

Interest Earned

6,843.5
7

7,061.13

6,767.00

6,136.80

4,835.58

Other Income

504.03

593.97

390.26

483.73

334.12

Total Income

7,347.6
0

7,655.10

7,157.26

6,620.53

5,169.70

Interest expended

4,133.4
8

4,410.22

4,082.52

3,820.76

2,997.22

Employee Cost

1,019.5
9

894.03

743.91

652.26

521.41

Selling, Admin & Misc Expenses

1,714.5
1

1,747.75

1,070.52

1,042.68

803.86

Depreciation

63.99

94.50

77.86

49.73

43.95

Operating Expenses

1,546.2
1

1,409.05

1,175.00

989.01

802.14

Provisions & Contingencies

1,251.8
8

1,327.23

717.29

755.66

567.08

Total Expenses

6,931.5
7

7,146.50

5,974.81

5,565.43

4,366.44

Mar '16 Mar '15

Mar '14

Mar '13

Mar '12

12 mths 12 mths

12 mths

12 mths

12 mths

Net Profit for the Year

416.03

508.60

1,182.47

1,055.10

803.25

Total

416.03

508.60

1,182.47

1,055.10

803.25

Equity Dividend

84.84

101.80

242.39

242.39

162.40

Corporate Dividend Tax

17.27

20.35

41.19

41.19

26.36

Earning Per Share (Rs)

8.58

10.49

243.92

217.65

165.69

Equity Dividend (%)

175.00

210.00

500.00

500.00

335.00

Expenditure

Per share data (annualised)

Book Value (Rs)

132.51

126.04

1,180.67

1,003.49

844.34

Transfer to Statutory Reserves

313.92

386.44

898.89

771.52

614.49

Transfer to Other Reserves

0.00

0.01

0.00

0.00

0.00

Proposed Dividend/Transfer to Govt

102.11

122.15

283.58

283.58

188.76

Total

416.03

508.60

1,182.47

1,055.10

803.25

Appropriations

OR
Parameter

MAR'16

MAR'15

( Cr.)

( Cr.)

Change %

Interest Earned

6,843.57

7,061.13

-3.08%

Other Income

504.03

593.97

-15.14%

Total Income

7,347.60

7,655.10

-4.02%

Interest Expended

4,133.48

4,410.22

-6.27%

Operating Expenses

1,546.20

1,409.05

9.73%

PBIDT

1,667.91

1,835.83

-9.15%

Provisions and Contingencies

976.23

1,015.52

-3.87%

Profit Before Tax

691.68

820.31

-15.68%

Taxes

275.65

311.71

-11.57%

Total

6,931.57

7,146.50

-3.01%

416.03

508.60

-18.20%

I. INCOME

II. EXPENDITURE

III. Profit & Loss

PAT

Extraordinary Items

0.00

0.00

0.00%

Profit brought forward

0.00

0.00

0.00%

Adjusted Net Profit

0.00

0.00

0.00%

Total Profit & Loss

416.03

508.60

-18.20%

Appropriations

416.03

508.60

-18.20%

Equity Dividend (%)

175.00

210.00

-16.67%

Earnings Per Share (in )

8.58

10.49

-18.20%

Book Value (in )

132.51

126.04

5.14%