Deep, Heavy Pockets

The Jammu and Kashmir Bank (JKB) is a private sector bank which was formed in 1938. The J&K state government holds a majority 53 per cent, yet this bank is classified as a private sector bank, which is one of its kind in the country. The bank functions as a universal bank in J&K and as a specialised bank in the rest of the country. JKB is also the only private sector bank in India which is designated as RBI's agent for banking business. Headquartered in Srinagar, JKB is the official banking business handler for the state government and also carries out the banking business of the Central Government, besides collecting central taxes for CBDT. JKB operates on the principle of 'socially empowering banking' and seeks to deliver innovative financial solutions for households and small and medium enterprises. Till the end of FY13, the bank had 689 branches out of which 110 were outside J&K. The branches in JKB account for 64 per cent of the total deposits and 39 per cent of the total advances. The total loan book of the bank stood at ₹39,200 crore and total deposits at ₹64,220 crore as on FY13-end. JKB has a market share of 66 per cent in advance and 64 per cent in deposits in J&K. By the end of Q2 FY13, the number of branches had reached to 754. JKB has an uninterrupted track record of profits and dividends for four decades. Strengths JKB has a strategic advantage of being a owned by the Jammu and Kashmir State Government. The bank operates in a region which has always been difficult for other players to enter into, which has helped it capture the largest market sh

This article was originally published on March 28, 2014.