JAMMU AND KASHMIR BANK LIMITED

ANNUAL REPORT 2023-24

Message from MD & CEO

of people to go hungry. Despite these challenges, the
Indian economy has remained comparatively stable,
especially the banking sector. The Reserve Bank of
India (RBI) has affirmed that India’s banking sector is
sufficiently capitalized and well regulated. Innovative
reforms such as digital payments, neo-banking, and
fintech have significantly enhanced financial inclusion
and fuelled credit growth in the country.

During FY 2023-24, India’s GDP grew at a rate of

8.2%, backed by buoyant domestic demand and
strong investment activity. Looking ahead, the RBI
projects real GDP growth for India in FY 2024-25
at 7.2%. The prospects of fixed investment remain
bright with business optimism, healthy corporate
and bank balance sheets, robust government capital
expenditure and signs of an upturn in the private capex
cycle. Equity markets are rallying while sovereign
bond yields and the US dollar exhibit bidirectional
movements.

Bank’s Performance
Over the past year, our Bank has successfully
navigated a rapidly evolving financial landscape.
Despite uncertainties and disruptions, we have
achieved significant growth by adopting various
initiatives and keeping pace with industry standards
Dear Shareholders,
clubbed with investments improving steadily which
I am privileged to present the 86th Annual Report of
would economise Cost / Income ratio and shall further
our Bank for FY 2023-24 - a year that marks a historic
improve health of our balance sheet. Our deposits
chapter in our rich legacy. This report provides
grew by 10.44% to `1.35 lakh crore with a CASA ratio
comprehensive details of the Bank’s initiatives and
of 50.51% while Gross Advances increased by 12.57%
achievements during this period. It has been more
to `0.97 Lakh Crore during past financial year. As a
than two years since I assumed the responsibility
result of tremendous efforts put in by our Bank and
of Managing Director and CEO of this esteemed
improved operational efficiency, the Bank delivered
institution, and it is with great pride that I share our
an unprecedented profit of `1767.27 crore for FY
progress and success. First and foremost, I extend
2023-24, the highest in the history of our Bank.
my heartfelt gratitude to our shareholders for their
unwavering support and trust. Your confidence in
Our asset quality has improved significantly during FY
our vision and strategy has been instrumental in our
2023-24 registering its best asset quality figures with
journey towards excellence. We remain committed
Gross Non-Performing Assets (GNPA) has improved
to delivering value and sustainable returns on your
significantly from 6.04% in FY 2022-23 to 4.08% in
investments.
last financial year while Net NPA witnessed a sharp
decline to 0.79%. Net Interest Income (NII) grew by
Economy Overview
10% to `5203.69 crore. The Operating profit stood
The lingering war between Russia and Ukraine and the
at `2276.88 crore, registering a growth of 23% over
ongoing conflict in the Middle East have exacerbated
the previous year. The Cost-to-Income ratio has
the geopolitical tensions inducing unprecedented
been brought down by 398 bps to 62.24%. Return
levels of uncertainty in the global economy. According
on Asset (RoA) and Return on Equity (RoE) also
to the World Economic Report, this conflict could lead
improved significantly, standing at 1.22% and 18.01%,
to higher food prices and potentially cause millions
respectively.

2
In light of this remarkable performance, the Board has enhance customer experience. Bank is full committed
recommended a dividend of `2.15 per equity share for to achieve excellence in operational efficiency
the financial year ended March 31, 2024. This decision through digital and IT interventions, business process
reflects our commitment to delivering sustainable reengineering and process automation, etc. Under 5
growth reciprocating share holder confidence and Year Business Plan milestones for all major business
maximizing shareholder value. We believe that indicators viz- GNPA, NIM, CD ratio, Business per
our sustained efforts and strategic initiatives have employee, PCR, Cost to income, Non-interest income,
contributed to achievement of business milestones. Capital adequacy (CRAR), Return on assets, etc. have
Besides, our focus on risk management and also been set for vigorous monitoring. The upgraded
compliance has ensured that we maintain a robust platform of “J&K Bank mPay Delight+” offers a
framework to safeguard our stakeholders’ interests. unique “Bank in the Pocket” experience. Our online
Our Bank has consistently adhered to stringent account opening platform provides ease of service for
regulatory standards, establishing itself as a trusted prospective customers 24x7 at their convenience and
and responsible financial institution. comfort.

Strategic Initiatives Customer Delight

Digital & IT landscape is the new battlefield in With a dedicated workforce of 12,415 employees
banking industry for driving sales through online and a branch network of 1,004 branches along with
as well as offline modes. During FY 2023-24, we 1,569 ATMs/CRMs across the country as of March
undertook various initiatives to keep pace with 2024, we are committed to provide the best and
industry advancements and deliver superior services most convenient services to our customers. And to
to our customers to meet emerging changes in the take care of any grievances or concerns on service
economic, political and regulatory environment. Some front, our Customer Service Request Tracking System
of the major key initiatives of previous financial year (CSRTS) ensures secure and centralized platform
included: for handling complaints, facilitating easy search and
retrieval of data.
- Launch of QIP, raising CET1 capital of Rs 750
crore which positioned us strongly to fund our Way Forward
ambitious growth plans. As we celebrate the historical results of FY 2023-24,
- Online account opening platform for let us join hands and hearts to reinforce the culture of
instant customer onboarding and delightful trust, empathy, and mutual care within our family. We
experience. are committed to achieve our strategic objectives that
- Upgraded our mobile and e-banking platforms includes expanding our market presence, enhancing
with enhanced and industry best features. our digital capabilities and deepening customer
- Automation of charges for various services to relationships. Besides, we will continue to invest in
prevent revenue leakage. our employees, empowering them with necessary
- Introduction of Virtual ATM Facility for card- tools and knowledge.
less cash withdrawals.
- New Bancassurance partner to enhance Dear Shareholders,
insurance solutions. I would like to take this opportunity to express my
- Launch of premium debit cards with enhanced appreciation for the hard work, dedication, and
limits and offers. unwavering commitment of our employees, which has
- Online customer grievance resolution been instrumental in reaching this milestone in our
mechanism. journey of transformation. With focused perseverance
- Adoption of new technology platform for in business growth and governance, we are well poised
Kiosk Banking, to augment FI initiatives to achieve even greater success in the coming years.
through BCs. Lastly, I reiterate my gratitude to our shareholders
and customers, whose trust and support have been
Transforming Technology the main contributors to our success.
On the technology front, we are committed to
provide efficient, secure, and convenient banking
services to our valued customers. During the year,
our core IT infrastructure has been strengthened
with high availability, capacity additions, automation Thank you.
processes, hybrid cloud architecture and enhanced Baldev Prakash
security features for leveraging digital adoption to (Managing Director & CEO)

3
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Board of Directors

Mr. Baldev Prakash Dr. Pawan Kotwal (IAS) Mr. Santosh D. Vaidya (IAS)
Non-Executive Non-Independent Non-Executive Nominee
Managing Director & CEO
Director Director

Dr. Mandeep K Bhandari, (IAS) Mr. R.K. Chhibber Dr. Rajeev Lochan Bishnoi
Non-Executive Non-Independent Director Non-Executive Non-Independent Non-Executive Independent
Director Director

Mr. Naba Kishore Sahoo Mr. Umesh Chandra Pandey Mr. Anil Kumar Goel
Non-Executive Independent Non-Executive Independent
Non-Executive Independent
Director Director
Director

Mr. Anand Kumar Mr. Sudhir Gupta Ms. Shahla Ayoub

Non-Executive Independent Executive Non-Independent Non-Executive Independent
Director Director Director

4
 Jammu and Kashmir Bank Limited
Registered Office: Corporate Headquarters, M. A. Road
Srinagar – Jammu & Kashmir – 190001 Tel: +91-194-2481930-35
Email: board.sectt@jkbmail.com Web: www.jkbank.com
CIN: L65110JK1938SGC000048

Notice Comptroller & Auditor General of India, in terms

of provisions of Section 142 of the Companies Act,
NOTICE is hereby given that the 86th Annual General Meeting 2013, for the Financial Year 2024-25.
(AGM) of the Shareholders of the Jammu and Kashmir Bank
Limited (the “Bank”) will be held on Saturday, August 17, 2024 SPECIAL BUSINESS:
at 11:00 A.M at Jammu and Kashmir Bank Limited, Corporate 6. To consider and if thought fit, to pass with or
Headquarters, M.A. Road, Srinagar, J&K - 190001, to transact without modification(s), the following resolution as
the following business: an Ordinary Resolution:

ORDINARY BUSINESS: “RESOLVED THAT pursuant to the Reserve Bank of

1. To receive, consider and adopt the Audited Financial India circular No.DoR.HGG.GOV.REC.75/29.67.001/
Statements (standalone and consolidated) of the 2023-24 dated February 9, 2024 and subject to
Bank for the Financial Year ended 31st March, 2024 such approvals, consents, clarifications, permissions
including Balance Sheet as at 31st March, 2024 and and sanctions, as may be required from the
the Profit & Loss Account for the Financial Year appropriate authorities for the purpose, approval
ended on that date, together with the Reports of of the Shareholders of the Bank be and is hereby,
the Board of Directors and Auditors and comments accorded to the payment of fixed remuneration to
of the Comptroller and Auditor General of India the Non-Executive Directors of the Bank (except
thereon. Chairperson of the Board and Directors who are in
the full employment of Government or the Reserve
2. To declare dividend on Equity Shares of the Bank. Bank of India) an amount as may be deemed fit by
the Board from time to time, subject to a maximum
3. To appoint a Director in place of Mr. Rajesh Kumar of `10.00 lacs per annum per director w.e.f. April
Chhibber (DIN: 08190084), who retires by rotation 2023.
and being eligible, has offered himself for re-
appointment.
By order of the Board of Directors
4. To appoint a Director in place of Mr. Sudhir Gupta
(DIN: 09614492), who retires by rotation and being Mohammad Shafi Mir
eligible, has offered himself for re-appointment. Company Secretary
Place: Srinagar
5. To authorise the Board of Directors of the Bank to Dated: July 19, 2024
fix the remuneration of Auditors appointed by the

5
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

NOTES amended from time to time, all shares in respect of

a) A MEMBER ENTITLED TO ATTEND AND VOTE IS which dividend has not been paid or claimed for seven
ENTITLED TO APPOINT A PROXY TO ATTEND AND consecutive years or more shall be transferred by
VOTE ON HIS BEHALF AND THE PROXY NEED NOT the company in the name of Investor Education and
BE A MEMBER OF THE BANK. Protection Fund along with a statement containing
such details as may be prescribed: Provided that
PROXIES, IN ORDER TO BE VALID AND EFFECTIVE,
any claimant of shares transferred above shall be
MUST BE RECEIVED BY THE BANK AT IT’S
entitled to claim the transfer of shares from Investor
REGISTERED OFFICE NOT LESS THAN 48 HOURS
Education and Protection Fund in accordance with
BEFORE THE TIME FIXED FOR THE MEETING.
such procedure and on submission of such documents
A PERSON CAN ACT AS PROXY ON BEHALF OF NOT as may be prescribed.
MORE THAN FIFTY MEMBERS AND HOLDING IN THE
AGGREGATE NOT MORE THAN TEN PERCENT OF THE e) As per the requirement of Rule 6 of the IEPF Rules,
TOTAL SHARE CAPITAL OF THE BANK CARRYING the Bank had sent individual intimation to all the
VOTING RIGHTS. shareholders and also published notice in the leading
newspapers in English and regional language having
A MEMBER HOLDING MORE THAN TEN PERCENT wide circulation for the information to shareholders
OF THE TOTAL SHARE CAPITAL OF THE BANK, regarding transfer of shares to IEPF. The shares in
CARRYING VOTING RIGHTS MAY APPOINT A SINGLE respect of the shareholders whose dividend has not
PERSON AS PROXY AND SUCH PERSON SHALL been claimed for seven (7) consecutive years, upto
NOT ACT AS PROXY FOR ANY OTHER PERSON OR financial year 2015-16, have been transferred to
SHAREHOLDER. the designated Dematerialized Account of the IEPF
CORPORATE MEMBERS INTENDING TO SEND THEIR authority.
AUTHORIZED REPRESENTATIVES TO ATTEND THE f) Members can avail of the facility of nomination
MEETING ARE REQUESTED TO SEND A CERTIFIED in respect of shares held by them in physical form
COPY OF THE BOARD RESOLUTION TO THE BANK, pursuant to Section 72 of the Companies Act, 2013.
AUTHORISING THEIR REPRESENTATIVES TO Members desiring to avail this facility may send
ATTEND AND VOTE ON THEIR BEHALF AT THE their nomination in the prescribed Form SH-13 in
MEETING. original, signed ISR Forms in original alongwith self-
b) As per Sections 124 and 125 of the Companies Act, attested copy of PAN card and address proof, duly
2013, the amount of unpaid or unclaimed dividend filled in, to the Registrar & Share Transfer Agent at
lying in unpaid dividend account for a period of seven the address mentioned at point no. (h) in the Notes.
(7) years from the date of its transfer to the unpaid The prescribed forms in this regard are attached and
dividend account and the underlying Equity Shares form part of Corporate Governance Report. Members
of such unpaid or unclaimed dividend, are required holding shares in electronic form are requested to
to be transferred to the Investor Education and contact their Depository Participants directly for
Protection Fund (“IEPF”) established by the Central recording their nomination
Government. Accordingly, the unclaimed dividend in g) Members holding shares in dematerialized form are
respect of financial years 2014-15 and 2015- 2016 has requested to intimate any change in their address
already been transferred to the IEPF. The Bank had or bank account details (including 9 digit MICR no.,
not declared Dividend for Financial Year 2016-2017. 11 digit IFSC and core banking account no.) to their
respective Depository Participants with whom they
c) As per Rule 5 of Investor Education and Protection are maintaining demat accounts.
Fund (Accounting, Audit, Transfer and Refund) Rules,
2016 (“IEPF Rules”) as amended from time to time, h) Members holding shares in physical form are
information containing the names and the last known requested to send the complete ISR Forms in
addresses of the persons entitled to receive the original, duly signed by all the holder(s), intimating
sums lying in the account referred to in Section 125 the change in address immediately to the Registrar
(2) of the Act, nature of the amount, the amount to & Share Transfer Agent/Bank along with the self-
which each person is entitled, due date for transfer attested copy of their PAN Card(s), unsigned copy of
to IEPF, etc. is provided by the Bank on its website Cheque leaf of an active bank account and the copy
at the link https://www.jkbank.com/investor/ of the supporting documents evidencing change in
stockExchangeIntimation/shareholderInformation. address. Communication details of Registrar & Share
php. The concerned members are requested to verify Transfer Agent are as under:
the details of their unclaimed dividend, if any, from
the said websites and lodge their claim with the M/s KFin Technologies Limited
Bank’s Registrar & Share Transfer agent, before the Selenium Tower B, Plot 31-32,
unclaimed dividends are transferred to the IEPF. Financial District, Nanakramguda,
Serilingampally Mandal,
d) As per the provisions of Section 124(6) of the Hyderabad – 500 032,
Companies Act, 2013 read with Investor Education Telangana – India.
and Protection Fund Authority (Accounting, Audit, Toll Free Number: 1-800-309-4001
Transfer and Refund) Rules, 2016 (“IEPF Rules”) as Email: einward.ris@kfintech.com

6
i) Important communication to Members vi. Quote their Folio/DP & Client Id No. in all
As per the provisions of Companies Act, 2013 and correspondences with the Registrar &
Regulation 36 of the Securities and Exchange Share Transfer Agent/Bank.
Board of India (Listing Obligations & Disclosure vii. Avoid being accompanied by non-members
Requirements) Regulations, 2015, electronic copy and/or children.
of the Annual Report and this Notice, inter alia
indicating the process and manner of remote m) A Statement pursuant to Section 102 of the
e-voting along with attendance slip and proxy form Companies Act, 2013, setting out all material
are being sent by e-mail to those Members whose facts relating to the relevant items of business
e-mail addresses have been registered/made of this Notice is annexed herewith and the same
available to the Bank/Depository Participants for should be taken as part of this Notice. Further, as
this purpose unless the Member has requested for a required under Regulation 36(3) of the Securities
hard copy of the same. For Members who have not and Exchange Board of India (Listing Obligations
registered their e-mail addresses, physical copies and Disclosure Requirements) Regulations, 2015
of this Notice inter alia indicating the process and (hereinafter referred to as the “Listing Regulations”)
manner of remote e-voting along with attendance and the provisions of the Secretarial Standard No. 2
slip and proxy form and other documents annexed on General Meetings, a brief profile of the directors
to the Notice, will be sent to them in the permitted proposed to be appointed /re-appointed is set out in
mode. the Explanatory Statement to this Notice.

The Bank hereby requests Members who have not n) In case of joint holders attending the Meeting, only
updated their email IDs to update the same with their such joint holder who is higher in the order of names
respective Depository Participant(s) or Registrar will be entitled to vote during the AGM, provided the
& Share Transfer Agent of the Bank. Further, votes are not already cast by remote e-voting by the
Members holding shares in electronic mode are also first holder.
requested to ensure to keep their email addresses
updated with the Depository Participants/Registrar o) The route map for the AGM venue is provided at the
& Share Transfer Agent of the Bank. Members backend cover page of the annual report.
holding shares in physical mode are also requested
to update their email addresses by sending the
requisite ISR documentation to the Registrar & p) E-Voting:
Share Transfer Agent of the Bank quoting their folio The Bank is pleased to provide E-voting facility
number(s). through M/s Kfin Technologies Limited, in compliance
with Section 108 of the Companies Act, 2013 read
j) Members desirous of getting any information with rules framed thereunder and Regulation
about the accounts and operations of the Bank are 44 of the Securities and Exchange Board of India
requested to write their queries to the Bank at least (Listing Obligations and Disclosure Requirements)
ten days before the AGM to enable the Bank to gather Regulations, 2015 for all shareholders of the Bank
information. to enable them to cast their votes electronically on
the items mentioned in this notice of the 86th AGM
k) Only Registered Members/Beneficial Owners carrying of the Bank. Based on the consent received from Mr.
their attendance slips and holders of valid proxy DSM Ram, Practising Company Secretary, the Board
forms registered with the Bank will be permitted to of Directors of the Bank has appointed him as the
attend the meeting. Also Members/Proxy holders are Scrutinizer for conducting the voting process in a
requested to: fair and transparent manner. E-voting is optional
l) and Members can opt for only one mode for voting
i. Please carry photo ID card for identification/ i.e. either by remote e-voting or vote at the AGM. The
verification purposes. voting rights of shareholders shall be in proportion
ii. Note that briefcases, mobile phones, bags, to their shares of the paid up equity share capital of
helmets, eatables and other belongings will the Bank as on the record date i.e. Saturday, August
not be allowed to be taken inside the venue 10, 2024.
of the meeting for security reasons and
members/proxy holders will be required to The instructions for E-Voting are as under:
take care of their belongings.
iii. Note that no gifts will be distributed at the i. Pursuant to SEBI Circular No. SEBI/HO/CFD/
AGM. CMD/ CIR/P/2020/242 dated December 9,
iv. Note that members present in person or 2020 on “e-voting facility provided by Listed
through registered proxy shall only be Companies”, e-voting process has been enabled
entertained. to all the individual demat account holders, by
v. Note that the attendance slip/proxy form way of single login credential, through their
should be signed as per the specimen demat accounts / websites of Depositories /
signature registered with the Registrar DPs in order to increase the efficiency of the
& Share Transfer Agent/Depository voting process.
Participant.

7
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

ii. Individual demat account holders would be able iv. The voting rights of Members shall be in
to cast their vote without having to register proportion to their shares in the paid-up equity
again with the e-voting service provider share capital of the Bank as on the Cut-off Date
(ESP) thereby not only facilitating seamless i.e. Saturday, August 10, 2024 (“Cut-off Date”).
authentication but also ease and convenience of v. Any person holding shares in physical form
participating in e-voting process. Shareholders and non-individual Shareholders, who acquires
are advised to update their mobile number and shares of the Company and becomes a Member
e-mail ID with their Depository Participant(s) to of the Company after dispatch of AGM Notice
access e-voting facility. and holding shares as on the Cut-off Date, may
obtain the login ID and password by sending a
iii. The remote e-voting period commences on request at evoting@kfintech.com. However,
Wednesday, August 14, 2024 from 0900 Hours if he/she is already registered with Kfin
to Friday, August 16, 2024 upto 1700 Hours. Technologies Limited for remote e-voting then
During the remote e-voting period, Members of he/she can use his/her existing User ID and
the Bank, holding shares either in physical form password for casting the vote.
or in dematerialised form, may cast their votes vi. The details of the process and manner for
electronically. The remote e-voting module shall remote e-voting, voting during the AGM and
be disabled by M/s Kfin Technologies Limited attending the AGM are explained herein below:
for voting thereafter and thus, remote e-voting
shall not be allowed beyond Friday, August 16, Step 1: Access to Depositories e-voting system in case of
2024 (1700 hours). Once the vote on all the individual Shareholders holding shares in demat
resolutions are cast by a Member, whether mode.
partially or otherwise, the Member shall not be Step 2: Access to KFintech e-voting system in case of
allowed to change it subsequently or cast vote Shareholders holding shares in physical and non-
again. individual Shareholders holding shares in demat
mode
Step 3: Access to vote during the AGM.

Details on Step 1 are mentioned below:

I) Login method for remote e-voting for Individual Shareholders holding shares in demat mode:

Type of Shareholders Login Method

Individual Shareholders holding shares in de- 1. User already registered for IDeAS facility:
mat mode with NSDL I. Visit URL: https://eservices.nsdl.com
II. Click on the “Beneficial Owner” icon under “Login” under ‘IDeAS’ section.
III. On the new page, enter User ID and Password. Post successful authentication,
click on “Access to e-voting”
IV. Click on company name or e-voting service provider and you will be re-directed
to e-voting service provider website for casting the vote during the remote
e-voting period.
2. User not registered for IDeAS e-Services
I. To register click on link : https://eservices.nsdl.com
II. Select “Register Online for IDeAS” or click at https://eservices.nsdl.com/Se
cureWeb/ IdeasDirectReg.jsp
III. Proceed with completing the required fields.
IV. Follow steps given in point 1
3. Alternatively by directly accessing the e-Voting website of NSDL
I. Open URL: https://www.evoting.nsdl.com/
II. Click on the icon “Login” which is available under ‘Shareholder/Member’ sec-
tion.
III. A new screen will open. You will have to enter your User ID (i.e. your sixteen
digit demat account number held with NSDL), Password / OTP and a Verifica-
tion Code as shown on the screen.
IV. Post successful authentication, you will be requested to select the name of the
Company and the e-Voting Service Provider name, i.e. KFintech.
V. On successful selection, you will be redirected to KFintech e-Voting page for
casting your vote during the remote e-Voting period

8
 Individual Shareholders holding shares in de-
mat mode with CDSL 1. Existing user who have opted for Easi / Easiest
I. Visit URL: https://web.cdslindia.com/myeasinew/home/login/ or URL: www.
cdslindia.com
II. Click on New System Myeasi
III. Login with your registered User ID and Password.

The user will see the e-voting Menu. Click on e-voting link available against the
name of the Company and you will be re-directed to e-voting page of KFintech
for casting the vote during the remote e-voting period.
2. User not registered for Easi / Easiest
I. Option to register is available at https://web.cdslindia.com/myeasinew/ Reg-
istration/EasiRegistration
II. Proceed with completing the required fields.
III. Follow the steps given in point 1
3. Alternatively, by directly accessing the e-Voting website of CDSL
i. Visit URL: https://evoting.cdslindia.com/Evoting/EvotingLogin
ii. Provide your demat Account Number and PAN No.
iii. System will authenticate user by sending OTP on registered Mobile & e-mail
as recorded in the demat Account.
iv. After successful authentication, user will be redirected to KFintech e-voting
page for casting your vote during the remote e-voting period.
Individual Shareholder login through their demat I. You can also login using the login credentials of your demat account web-
accounts / Website of Depository Participant sites of Depository Participants registered with NSDL/CDSL for e-voting fa-
cility.
II. Once logged-in, you will be able to see e-voting option. Once you click on
e-voting option, you will be redirected to NSDL / CDSL Depository site after
successful authentication, wherein you can see e-voting feature.
III. Click on options available against Company name or e-voting service pro-
vider – KFintech and you will be redirected to e-voting website of KFintech
for casting your vote during the remote e-voting period without any further
authentication.

Members who are unable to retrieve User ID / Password are advised to use “Forgot user ID” / “Forgot Password” options
available on the websites of Depositories / Depository Participant(s). Helpdesk for Individual Shareholders holding shares in
demat mode for any technical issues related to login through Depository i.e. NSDL and CDSL.

Login type Helpdesk details

Please contact NSDL helpdesk by sending a request at evoting@nsdl.co.in or call at toll
Shares held with NSDL
free no.: 1800 1020 990 and 1800 22 44 30
Please contact CDSL helpdesk by sending a request at helpdesk.evoting@cdslindia.com or
Shares held with CDSL
contact at 022- 23058738 or 022-23058542-43

Details on Step 2 are mentioned below: iv. You will now reach password change Menu
Login method for remote e-Voting for Non-individual wherein you are required to mandatorily
Shareholders holding shares in demat mode and change your password. The new password
Shareholders holding shares in physical mode. shall comprise of minimum 8 characters
Members whose e-mail IDs are registered with the with at least one upper case (A- Z), one
Bank/Depository Participant(s), will receive an e-mail lower case (a-z), one numeric value (0-9)
from M/s Kfin Technologies Limited which will include and a special character (@,#,$, etc.,). The
details of E-Voting Event Number (EVEN), USER ID system will prompt you to change your
and password. They will have to follow the following password and update your contact details
process: like mobile number, e-mail ID etc. on first
login. You may also enter a secret question
i. Launch internet browser by typing the URL: and answer of your choice to retrieve your
https:// evoting.kfintech.com. password in case you forget it. It is strongly
ii. Enter the login credentials (i.e. User ID and recommended that you do not share your
password). In case of physical folio, User password with any other person and that
ID will be EVEN (E-Voting Event Number), you take utmost care to keep your password
followed by folio number. In case of Demat confidential.
account, User ID will be your DP ID and Client v. You need to login again with the new
ID. However, if you are already registered credentials.
with M/s Kfin Technologies Limited for vi. On successful login, the system will prompt
e-voting, you can use your existing User ID you to select the “EVENT” i.e., ‘Jammu and
and password for casting the vote. Kashmir Bank Limited’.
iii. After entering these details appropriately, vii. On the voting page, enter the number
click on “LOGIN”. of shares (which represents the number

9
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

of votes) as on the Cut-off Date under the depositories as on Cut-off Date shall be entitled
“FOR/AGAINST” or alternatively, you may to avail the facility of remote e-voting or voting at
partially enter any number in “FOR” and the AGM, as the case may be. The voting rights shall
partially “AGAINST” but the total number be reckoned on the basis of number of equity shares
in “FOR/ AGAINST” taken together shall held by the Members as on the Cut-off Date for the
purpose.
not exceed your total shareholding. You c. Members holding shares as on the Cut-off Date
may also choose the option ABSTAIN. If the shall be entitled to vote through remote e-voting or
Member does not indicate either “FOR” or voting during the AGM. In case of joint holders, the
“AGAINST” it will be treated as “ABSTAIN” Member whose name appears as the first holder in
and the shares held will not be counted the order of names as per the Register of Members/
under either head. List of Beneficial Owner of the Company will be
viii. Members holding multiple folios/demat entitled to vote during the AGM.
accounts shall choose the voting process d. The facility for remote e-voting shall remain available
separately for each folio/ demat accounts. from Wednesday, August 14, 2024 from 0900 Hours
to Friday, August 16, 2024 upto 1700 Hours. During
ix. Voting has to be done for each item of the this period shareholders’ of the Bank, holding
notice separately. In case you do not desire shares either in physical form or in dematerialized
to cast your vote on any specific item, it will form, as on the cut-off date of Saturday, August
be treated as abstained. 10, 2024 may cast their vote electronically. The
x. You may then cast your vote by selecting e-voting module shall be disabled by Registrar and
an appropriate option and click on “Submit”. Share Transfer Agent for voting thereafter. Once
xi. A confirmation box will be displayed. Click the vote on a resolution is cast by the shareholder,
“OK” to confirm else “CANCEL” to modify. the shareholder shall not be allowed to change
it subsequently. Further, the shareholders who
Once you have voted on the resolution(s),
have cast their vote electronically through remote
you will not be allowed to modify your vote. e-voting may participate in the AGM but shall not be
During the e-voting period, Members can allowed to vote at the AGM.
login any number of times till they have e. In case of any queries, you may refer the Frequently
voted on the Resolution(s) set forth in this Asked Questions (FAQs) for shareholders and
Notice. e-voting User Manual for shareholders available at
xii. Corporate/Institutional Members (i.e. other the download section of http://evoting.kfintech.com
than Individuals, HUF, NRI etc.) are required or contact M/s Kfin Technologies Limited at Tel No.
to send scanned certified true copy (PDF 1800-309-4001 (toll free).
f. Any person, who acquires shares of the Bank and
Format) of the Board Resolution/Authority
become Member of the Bank after dispatch of the
Letter etc., authorizing its representative Notice and holding shares as on the cut-off date
to attend the AGM on its behalf and to cast may follow the same instructions as mentioned
its vote through remote e-voting, together above for e-Voting.
with attested specimen signature(s) of the
duly authorised representative(s) pursuant II. The Scrutinizer shall immediately after the
to Section 113 of the Companies Act, 2013 at conclusion of voting at the AGM, first count the
ram.devata@gmail.com with a copy marked votes cast at the meeting, thereafter unblock the
to evoting@kfintech.com and to the Bank at votes cast through remote e-voting in the presence
sharedeptt_gc@jkbmail.com. of at least two witnesses not in the employment
of the Bank and make not later than two working
Details on Step 3 are mentioned below: days of conclusion of the meeting, a consolidated
Instructions for all the Shareholders for voting during Scrutinizer’s Report of the total votes cast in favour
the AGM.
or against, if any, to the Managing Director and CEO
i. A Member can opt for only single mode of voting of the Bank who shall countersign the same.
i.e. through remote e-voting or voting at the
AGM. If a Member casts vote(s) by both modes, III. The Managing Director and CEO or a person
then voting done through remote e-voting shall authorised by him in writing shall declare the result
prevail and vote(s) cast at the Meeting shall be of voting forthwith.
treated as “INVALID”. However, Members who
have voted through remote e-voting shall be IV. The voting results declared along with the
eligible to attend the AGM. Scrutinizer’s Report will be placed on the Bank’s
ii. The Members, who have not cast their vote
website www.jkbank.com and on the website of M/s
through remote e-voting can exercise their
voting rights at the AGM through Ballot Paper. KFin Technologies Limited, https://evoting.kfintech.
com, immediately after the declaration of the result
OTHER INSTRUCTIONS: by the Managing Director and CEO or a person
a. Members holding shares as on the Cut-off Date shall authorized by the Managing Director and CEO. The
be entitled to vote through remote e-voting or vote results will also be immediately intimated to The
at the meeting. BSE Limited and National Stock Exchange of India
b. User ID and password for e-voting is being sent on the Limited.
registered email of shareholders. Members whose
names are recorded in the Register of Members or
in the Register of Beneficial Owners maintained by V. Poll will also be conducted at the AGM and any

10
 Shareholder who has not cast vote through remote to them by the company during a financial year
e-voting facility, may attend the AGM and cast the does not exceed `5,000.
vote.
Tax will not be deducted at source in cases where
Dividend Related Information: a shareholder provides Form 15G (applicable
1. The Record Date for determining the names of to all individuals)/Form 15H (applicable to an
Members eligible for dividend on Equity Shares, if individual above the age of 60 years), provided
declared at the AGM, is Saturday, August 10, 2024. that the eligibility conditions are satisfied. Please
note that all fields mentioned in the Form are
2. Dividend as recommended by the Board of Directors, mandatory and the Bank may reject the forms
if approved at the AGM, will be paid by or before submitted, if they do not fulfil the requirement
Sunday, September 15, 2024, by way of electronic of the law.
mode or through physical dividend warrants, to those
Members whose names appear on the Register of Needless to mention, valid Permanent Account
Members/statements of beneficial position received Number (“PAN”) will be mandatorily required.
from NSDL and/or CDSL at the close of business Shareholders who are required to link Aadhaar
hours on Saturday, August 10, 2024. number with PAN as required under section
139AA(2) read with Rule 114AAA, should
compulsorily link the same. If, as required under
3. Members holding shares in physical form are the law, any PAN is found to have not been linked
requested to send the completed ISR Forms in with Aadhaar, then such a PAN will be inoperative
original, duly signed by all the holder(s), intimating and tax would be deducted at a higher rate
the change in address immediately to the Registrar under section 206AA of the IT Act. The Bank
& Share Transfer Agent/Bank along with the self- reserves its right to recover any demand raised
attested copy of their PAN Card(s), unsigned copy of subsequently on the Bank for not informing
Cheque leaf of an active Bank account and the copy the Bank or providing wrong information about
of the supporting documents evidencing change applicability of Section 206AA in your case.
in address. Communication details of Registrar &
Nil/lower tax shall be deducted on the dividend
Share Transfer Agent are as under: payable to following resident shareholders on
submission of self-declaration as listed below:
M/s KFin Technologies Limited
Selenium Tower B, Plot 31-32, I. Insurance Companies: Declaration that the
Financial District, Nanakramguda, provisions of Section 194 of the IT Act are not
Serilingampally Mandal, applicable to them along with self-attested
Hyderabad – 500 032, copy of registration certificate and PAN card.
Telangana – India.
Toll Free Number: 1-800-309-4001 II. Mutual Funds: Declaration by Mutual Funds
Email: einward.ris@kfintech.com Shareholders eligible for exemption under
section 10(23D) of the IT Act along with self-
attested copy of registration documents and
4. In case, the Bank is unable to pay the dividend to
PAN card.
any shareholder by electronic mode, due to non-
availability of the details of the bank account, the
Bank shall dispatch the dividend warrant to such III. Alternative Investment Fund (AIF)
shareholder by post. established in India: Declaration that the
shareholder is eligible for exemption under
5. Members may note that as per the Income Tax Act, section 10(23FBA) of the IT Act and they are
1961 (“IT Act”), as amended by the Finance Act, established as Category I or Category II AIF
2020, dividends paid or distributed by the Bank under the SEBI regulations, along with copy
after April 1, 2020, shall be taxable in the hands of of self-attested registration documents and
the shareholders and the Bank shall be required PAN card.
to deduct tax at source (TDS) at the prescribed
rates from the dividend to be paid to shareholders, IV. New Pension System Trust: Declaration
subject to approval of dividend by the shareholders along with self-attested copy of documentary
in the AGM. The TDS rate would vary depending on evidence supporting the exemption and self-
the residential status of the shareholder and the attested copy of PAN card.
documents submitted by them and accepted by
the Bank. In order to enable the Bank to determine V. Other Shareholders: Declaration along with
the appropriate TDS rate as applicable, Members self-attested copy of documentary evidence
are requested to submit relevant documents, as supporting the exemption and self-attested
specified in the below paragraphs, in accordance copy of PAN card.
with the provisions of the IT Act.
VI. Shareholders who have provided a valid
a) For Resident Shareholders certificate issued under section 197 of the
Tax will be deducted at source (“TDS”) under Act for lower/nil rate of deduction or an
Section 194 of the IT Act @ 10% on the amount exemption certificate issued by the income
of dividend payable unless exempt under any of tax authorities along with Declaration.
the provisions of the IT Act. However, in case of
resident shareholders, TDS would not apply if b) For Non-Resident Shareholders (including Foreign
the aggregate of total dividend distributed/paid Portfolio Investors)

11
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Tax is required to be withheld in accordance - at twice the rate specified in the relevant
with the provisions of Sections 195 and 196D provision of the IT Act; or
of the IT Act at applicable rates in force. As - at twice the rate or rates in force; or
per the relevant provisions of the Act, the - at the rate of 5%.
tax shall be withheld @ 20% (plus applicable
surcharge and cess) on the amount of dividend As per Central Board of Direct Taxes vide
payable. However, as per Section 90 of the Circular No. 11 of 2021 dated June 21, 2021, for
Act, a non-resident shareholder has the option determining TDS rate on dividend, the Bank
to be governed by the provisions of the Double will be using functionality of the Income Tax
Tax Avoidance Agreement (“DTAA”) between department to determine the applicability of
India and the country of tax residence of the Section 206AB of the IT Act.
shareholder, if they are more beneficial to the
shareholder. For this purpose, i.e. to avail the To summarise, dividend will be paid after
DTAA benefits, the non-resident shareholder will deducting the tax at source as under:
have to provide the following: I. Nil for resident shareholders receiving
dividend upto `5,000/- or in case Form
I. Self-attested copy of PAN card, if 15G/Form 15H (as applicable) along with
any, allotted by the Indian Income Tax self-attested copy of the PAN card is
Authorities. submitted.
II. Self-attested copy of Tax Residency II. 10% for other resident shareholders
Certificate (“TRC”) obtained from the tax in case copy of PAN card is provided/
authorities of the country of which the available.
shareholder is resident. III. 20% for resident shareholders if copy of
III. Self-declaration in Form 10F. PAN card is not provided/not available/
IV. Self-declaration by the non-resident not linked with Aadhaar Number.
shareholder of meeting DTAA eligibility IV. Tax will be assessed on the basis of
requirement and satisfying beneficial documents submitted by the non-resident
ownership requirement (Non-resident shareholders.
having PE in India would need to comply V. 20% plus applicable surcharge and cess
with provisions of section 206AB of the IT for non-resident shareholders in case the
Act). relevant documents are not submitted.
V. In case of Foreign Portfolio Investors, VI. Lower/Nil TDS on submission of self-
self-attested copy of SEBI registration attested copy of the valid certificate
certificate. issued under Section 197 of the IT Act.
VI. In case of shareholder being tax resident
of Singapore, please furnish the letter Aforesaid rates will be subject to applicability
issued by the competent authority or any of Section 206AB of the IT Act. In terms of Rule
other evidences demonstrating the non- 37BA of Income Tax Rules 1962, if dividend
applicability of Article 24 - Limitation income on which tax has been deducted at
of Relief under India-Singapore Double source is assessable in the hands of a person
other than the deductee, then such deductee
Taxation Avoidance Agreement (DTAA) should file declaration with Bank in the manner
prescribed by the said rules.
Please note that the application of beneficial
DTAA rate shall depend upon the completeness In case tax on dividend is deducted at a higher
and satisfactory review by the Bank, of rate in the absence of receipt or defect in any
the documents submitted by non-resident of the aforementioned details/documents, you
shareholders and meeting requirement of the Act will be able to claim refund of the excess tax
read with applicable DTAA. It must be ensured deducted while filing your Income Tax Return.
that self-declaration should be addressed to the No claim shall lie against the Bank for such taxes
Bank and should be in the prescribed format. deducted.
In absence of the same, the Bank will not be
obligated to apply the beneficial DTAA rate at Updation of Bank Account details: While on
the time of tax deduction on dividend. the subject, we request you to submit/update
your bank account details with your Depository
The Bank shall arrange to e-mail the soft copy Participant, in case you are holding shares
of TDS certificate at the registered e-mail ID of in electronic form. In case your shareholding
Members post payment of the dividend. is in physical form, you will have to submit a
scanned copy of a covering letter, mentioning
Section 206AB of the Act the folio number alongwith the requisite ISR
Rate of TDS @10% under section 194 of the IT documentation, duly signed by you, along with a
Act is subject to provisions of Section 206AB of cancelled cheque leaf with your name and bank
IT Act which provides for TDS in respect of non- account details and a copy of your PAN card
filers of income-tax return. As provided in section duly self-attested. This will facilitate receipt of
206AB, tax is required to be deducted at the dividend directly into your bank account. In case
highest of following rates in case of payments to the cancelled cheque leaf does not bear your
specified persons: name, please attach a copy of the bank pass-
book statement, duly self-attested.

12
 ANNEXURE TO NOTICE
EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013

Directors who are in the full employment of the Government

ITEM NO. 05 or Reserve Bank of India) an amount as may be deemed fit by
Though not strictly necessary, Explanatory Statement is the Board from time to time, subject to a maximum of `15.00
being given for Item No. 05 of the Notice, with the view to lacs per annum per Director with effect from April, 2022. The
set-out material facts concerning such business. Pursuant to resolution was however defeated by the shareholders.
the provisions of Section 142 of the Companies Act, 2013, the
remuneration of Auditors, appointed by C&AG under Section In view of the resolution being rejected by the shareholders,
139(5) of the Companies Act, 2013, has to be fixed by the Bank continued to pay compensation to the Non-Executive
Bank in General Meeting or in such manner as the Bank in the Directors as per previous RBI circular No. DBR. No. BC: 97/
General Meeting may determine. 29.67.001/2014-15 dated June 1, 2015 for the F.Y 2022-23,
with a cap of `10 lacs per director.
Historically, the Shareholders of the Bank at Annual General
Meetings have been empowering the Board of Directors of The RBI vide its circular No.DoR.HGG.GOV.
the Bank to pay remuneration to Statutory Auditors for the REC.75/29.67.001/2023-24 dated February 9, 2024 has
yearly audit and quarterly review of financial results for the again reviewed the fixed remuneration paid to the NEDs by
relevant financial year. enhancing the ceiling from `20.00 lakhs to `30.00 lakhs.
However, while doing so, the RBI repealed its earlier Circular
Members may accordingly authorize the Board of Directors dated June 1, 2015. Consequently, the Bank cannot pay the
to fix the remuneration of Auditors as per the best industry profit related compensation to NEDs any further till the
practices among the peer banks for the financial year payment of fixed remuneration as per the latest RBI circular
2024-25 including remuneration for the Limited Review of dated February 9, 2024 is approved by the Shareholders of
Quarterly Financial Results for the period ending 30th June, the Bank.
2024, 30th September, 2024 and 31st December, 2024.
RBI’s move to increase the remuneration cap from `20.00
The Board of Directors recommends the passing of the lacs to `30.00 lacs for Non-Executive Directors is aimed
proposed Resolution at Item No.05 as an ordinary resolution. at enabling the banks to attract and retain qualified and
competent individuals on their boards. This shall ensure that
No Director, Key Managerial Personnel of the Bank or the banks are governed by competent individuals who are
their relatives is in anyway concerned or interested in the sufficiently rewarded for their contributions in the context of
Resolution. increasingly complex and challenging environment in which
banks operate. However, keeping in view the size of our
ITEM NO. 06 Bank, the Board recommends paying of `10.00 lacs as fixed
In line with the RBI circular No. DBR. No. BC: 97/ remuneration per Non-Executive Director per annum.
29.67.001/2014-15 dated June 1, 2015 and pursuant to the
approval of shareholders in the Annual General Meeting In terms of regulation 17(6)(a) of SEBI (Listing Obligations
held on 20th July, 2016, the Bank, in addition to sitting fee and Disclosure Requirements) Regulations, 2015, the Board
and reimbursement of expenses, used to pay compensation of Directors shall recommend all fees or compensation, if
to the Non-Executive Directors in the form of profit related any, paid to non-executive Directors, including Independent
commission, not exceeding `10.00 lacs per annum for each Directors and shall require approval of shareholders in
Director, subject to the Bank making profits. general meeting.

The RBI on April 26, 2021 issued revised compensation The Board of Directors recommends the passing of the
guidelines vide circular No.DOR.GOV.REC.0/29.67.001 /2021- proposed Ordinary Resolution at Item No.06.
22 by raising the ceiling for payment of fixed remuneration
to Non-Executive Directors to `20.00 lacs per director per The Non-Executive Directors of the Bank entitled for the
annum. Accordingly, the Bank through postal ballot dated remuneration may be deemed concerned or interested in the
17th February, 2022 proposed to the shareholders of the Bank Resolution as it is intended for their benefit. Other Directors
to pay fixed remuneration to the Non-Executive Directors and Key Managerial Persons (KMPs) and their relatives are
(except Part Time Chairperson of the Board and those not concerned or interested in the Resolution.

13
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Details of Directors seeking appointment/re-appointment at the 86th Annual General Meeting as per
SS – 2 read with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Particulars Details of Directors seeking appointment/reappointment at the 86th Annual General Meeting

Name Rajesh Kumar Chhibber Sudhir Gupta

Non-Executive Non-Independent
Category Executive Director
Director
DIN 08190084 09614492
Date of Birth 09-10-1959 04-11-1967
Qualification BSc, CAIIB Part I BSc, LLB, CAIIB
Banking, Finance, Accountancy,
Banking, Finance, Law, Human Resource, Agriculture
Nature of Expertise / Experience Treasury & Investment Management,
& Rural Economy and Business Management
Agriculture & Rural Economy
Terms and conditions of
Re-appointment as Directors liable to retire by rotation.
appointment
During FY 2023-24, sitting Fee of
Details of Remuneration paid
`21,60,000/- was paid. In addition, an
and last drawn remuneration Salary of `40,21,929/-
amount `10,00,000/- as Commission
(including sitting fees) during
pertaining to financial year 2022-23 was
Financial Year 2023-2024
also paid.
Non-Executive Directors (excluding
Government Nominee Directors in active
service; RBI Nominated Directors in active As an Executive Director, Mr. Sudhir Gupta will be
service; Directors in Active Service of entitled to fixed pay of `45.05 Lacs (per annum) and
Government) are entitled to the sitting fee performance based variable pay of `45.05 Lacs (Per
Remuneration proposed to be
of `70,000/- for attending each meeting of annum) which stands approved by Reserve Bank of
paid
the Board and `40,000/- for a Committee India vide its letter no Dor.GOV55830/08.39.001/2022-
thereof. However, as on date, the Board of 23 dated 13.12.2022.
Directors has mutually decided to keep the
sitting fee for attending a meeting of the
Board/Committees of Board as `40,000/-.
Date of First Appointment on the
10th June, 2019 14th December, 2022
Board
Shareholding in the Bank 500 Shares 9747 Shares
Relationship with other Directors,
Nil Nil
Key Managerial Personnel
No. of Board Meetings attended
Attended 15 out of 16 Board meetings Attended 16 out of 16 Board meetings held during the
during the financial year 2023-
held during the Financial Year 2023-2024 Financial Year 2023-2024
2024
No. of Committee Meetings Attended 39 out of 39 Committee
Attended 30 out of 30 Committee meetings held during
attended during the financial year meetings held during the Financial Year
the Financial Year 2023-2024
2023-2024 2023-2024
Directorships, Membership /
Chairmanship of Committees of Nil Nil
other Boards

14
Director's Report
To the Members, Provisions
The Provision for Loan Losses, Standard Assets, Taxation
Your Board of Directors has pleasure in presenting the and others aggregated to `509.61 Crore in the financial year
86th Annual Report of your Bank, together with the audited 2023-24.
Balance Sheet, Profit and Loss Account and the report on
business and operations for the year ended 31st March, 2024. Net Profit/Loss
The Bank registered a Net Profit of `1767.27 Crore for the
Performance at a Glance financial year 2023-24.
• The aggregate business of the Bank stood at
`228537.40 Crore at the end of the financial year Dividend
2023-24. In view of the overall performance of the Bank and while
• The total deposits of the Bank grew by `12737.15 retaining capital to support future growth, the Board at
Crore from `122037.74 Crore as on 31st March, its meeting held on 4th May, 2024, recommended dividend
2023 to `134774.89 Crore as on 31st March, 2024, of 215 per cent for the financial year 2023-24 for approval
a growth of 10.44 percent. of the shareholders at the 86th Annual General Meeting. If
• CASA deposits of the Bank at `68072.61 Crore approved, the total outflow on account of dividend for the
constituted 50.51 percent of total deposits of the financial year 2023-24 will be `236.75 Crores. The record
Bank. date for payment of dividend is mentioned in the notice of
• Cost of deposits for the FY stood at 4.57 percent. the ensuing 86th AGM of the Bank. In terms of the Income Tax
• The net advances of the Bank stood at `93762.51 Act, 1961, the dividend income is taxable in the hands of the
Crore as on 31st March, 2024. Members.
• Yield on advances for the FY stood at 9.54 percent.
• Average Priority Sector Advances stood at Therefore, the dividend will be paid to the Members after
`43,010.17 Crore as on 31st March, 2024. deduction of applicable taxes, if any. In terms of Regulation
• The Bank effected cumulative cash recovery, up- 43A of the SEBI (Listing Obligations and Disclosure
gradation of NPAs and recovery in technical write- Requirements) Regulations, 2015, the Bank has formulated
off of `2026.75 Crore during FY 2023-24. and adopted a Dividend Distribution Policy with the
• Investment portfolio of the Bank stood at objective of appropriately rewarding Shareholders through
`34986.71 Crore as on 31st March, 2024. dividends while retaining the capital required for meeting
regulatory capital requirements, maintaining adequate
Insurance Business buffers and supporting its future growth. The said Policy
The Bank earned a commission income of `105.77 Crore has been hosted on the website of the Bank at https://
from Insurance Business by mobilizing a business of `680.50 www.jkbank.com/investor/stockExchangeIntimation/
Crore in life insurance (including fresh retail life business corporateGovernancepolicies.php.
of `208.92 Crore, Credit life business of `98.33 Crore and
renewal business of `373.25 Crore) and `252.23 Crore in Branch/ATM Network
non-life insurance during financial year 2023-24 During the financial year 2023-24, 15 new branches were
established, thereby taking the number of branches to 1004
Income Analysis (including IARBs) as on 31.03.2024, spread over 18 states
• The Interest income of the Bank stood at `11212.37 and 4 union territories. The area-wise breakup of the branch
Crore in the year 2023-24. Interest expenses network (excluding extension counters/ mobile branches and
stood at `6008.68 Crore for FY 2023-24. The Net service branches) on the basis of census 2011 as at the end of
Interest Income stood at `5203.69 Crore for FY FY 2023-24 is as under:
2023-24. Area   Branches (including IARBs)
• The Net Income from operations [Interest Spread
plus Non-interest Income] stood at `6029.17 Crore Metro      183
in the FY 2023-24. Urban    111
• The Operating Expenses registered an increase Semi-Urban 163
of `108.69 Crore during the financial year 2023-
24 and stood at `3752.29 Crore as compared to Rural     547
`3643.60 Crore in 2022-23. Total 1004
• The Cost to Income ratio (Operating Expenses to
Net Operating Income) stood at 62.24 percent in During the financial year 2023-24, 13 EBUs/USBs were
the financial year 2023-24. established taking the total number of EBUs/USBs to 94 and
31 ATMs were opened in FY23-24 taking the ATM network of
Gross Profit the Bank to 1417 as on 31.03.2024. Besides 45 CRMs (Cash
The Gross Profit for the financial year 2023-24 stood at Recycler Machines) were opened in FY23-24 taking the total
`2276.88 Crore. number of CRMs to 152 as on 31.03.2024.
Capital
The capital management framework of the Bank includes a
comprehensive internal capital adequacy assessment process

15
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

conducted periodically, which determines the adequate level 1. Dr. Rajeev Lochan Bishnoi (DIN:00130335)
of capitalization needed to meet the regulatory norms and 2. Mr. Naba Kishore Sahoo (DIN: 07654279)
current and future business needs. 3. Mr. Umesh Chandra Pandey (DIN: 01185085)
4. Mr. Anil Kumar Goel (DIN: 00672755)
The capital management framework of the Bank is 5. Mr. Anand Kumar (DIN: 03041018)
complemented by the risk management framework, which 6. Ms. Shahla Ayoub (DIN: 09834993)
covers the business and capital plans and stress testing
results integrated with the internal capital adequacy All Independent Directors of the Bank have given their
assessment process while assessing its impact on the capital respective declarations stating that they meet the criteria of
ratios and adequacy of capital buffers for current and future independence as laid down under the applicable laws and in
periods. the opinion of the Board, the Independent Directors meet the
said criteria.
As at March 31, 2024, the Subscribed and Paid-up Capital
of the Bank stood at `110,11,82,463.00 comprising of Appointments/Resignations from the Board of Directors
110,11,82,463 equity shares, which is 6,97,02,602 equity During the FY 2023-24, there were following changes in the
shares more than as at March 31, 2023. The said capital was composition of the Board:
raised by way of allotment of 6,97,02,602 equity shares at a • Dr. Pawan Kotwal, IAS (DIN: 02455728) was appointed
price of `107.60 which was at a discount of 4.49% (i.e. `5.06 as a Rotational Director on the Board of the Bank w.e.f.
per equity share) to the Qualified Institutional Buyers (QIB) July 24, 2023.
aggregating to a total amount of `749,99,99,975.20. The • Mr. Santosh Dattatraya Vaidya, IAS (DIN: 05340193) was
issue opened on December 11, 2023 and closed on December appointed as Govt. Nominee Director w.e.f. August 22,
14, 2023. The allotment was made on December 15, 2023. 2023.
• Dr. Mandeep K Bhandari, IAS (DIN: 07310347) was
Net Worth and Capital Adequacy Ratio (CRAR) appointed as a Rotational Director on the Board of the
• The Net Worth of the Bank stood at `10966.77 Crores Bank w.e.f. October 20, 2023.
on 31st March 2024.
• Capital Adequacy Ratio under Basel III stood at 15.33 Changes in the Board of Directors after the Closure of
percent as on March 31, 2024. The CET 1 component of Financial Year
CRAR is 12.02 percent and TIER 1 component of CRAR is There were no changes in the Board of Directors after the
13.09 percent as on 31st March 2024. closure of Financial Year.
• Adjusted Book Value per Share for the financial year
2023-24 stood at `92.90. Directors seeking appointment/re-appointment at AGM
Mr. Rajesh Kumar Chhibber (DIN: 08190084) and Mr.
Board of Directors Sudhir Gupta (DIN: 09614492), who are retiring by rotation,
Your Bank has Twelve (12) Directors consisting of Managing have offered themselves for re-appointment. The profile
Director & Chief Executive Officer, Executive Director and 10 and necessary details of the above mentioned Directors
Non-Executive Directors as on 31st March, 2024. have been included in the Notice of AGM and Corporate
Governance Report.
Independent and Non–Independent
• Non-Independent Executive Directors Appointments/Resignations of the Key Managerial
Mr. Baldev Prakash (DIN: 09421701), Non Independent Personnel
Executive Director has been serving as the MD & CEO of During the financial year 2023-24, Mr. Baldev Prakash,
the Bank since December 30, 2021, with the approval of Managing Director & Chief Executive Officer, Mr. Sudhir
the Reserve Bank of India (RBI). Mr. Sudhir Gupta (DIN: Gupta, Executive Director, Mr. Pratik D Punjabi, Chief
09614492), Non Independent Executive Director has Financial Officer and Mr. Mohammad Shafi Mir, Company
been serving as the Executive Director of the Bank since Secretary were the Key Managerial Personnel of the Bank.
December 14, 2022 with the approval of the Reserve
Bank of India (RBI). None of the Key Managerial Personnel has resigned during
the financial year.
• Non-Independent Non-Executive Directors
Dr. Pawan Kotwal, IAS (DIN: 02455728), Mr. Santosh Changes in the Key Managerial Personnel after the
Dattatraya Vaidya, IAS (DIN: 05340193), Dr. Mandeep Closure of Financial Year
K Bhandari, IAS (DIN: 07310347) and Mr. Rajesh Kumar Mr. Fayaz Ahmad Ganai was appointed as Chief Financial
Chhibber (DIN: 08190084) are the Non-Independent Officer of the Bank on April 16, 2024 in place of Mr. Pratik
Non-Executive Directors of the Bank. D Punjabi, who resigned from the services of the Bank w.e.f.
April 05, 2024 in order to explore professional opportunities
• Independent Non-Executive Directors outside the Bank.
In terms of the definition of ‘Independent Director’ as
prescribed under Regulation 16(b) of the SEBI (Listing Number of Meetings of the Board
Obligations and Disclosure Requirements) Regulations, During the year under review, Sixteen (16) Board Meetings
2015 and Section 149(6) of the Companies Act, 2013 and were held in due compliance with statutory provisions, on the
based on the declarations/disclosures received from following dates:
the Directors, the following Non–Executive Directors are 27.04.2023, 04 & 05.05.2023, 30.05.2023, 20.06.2023,
Independent Directors:- 15.07.2023, 24.07.2023, 16.08.2023, 25.08.2023,

16
26.09.2023, 20.10.2023, 20.11.2023, 15.12.2023, 20.01.2024, Chairperson are consolidated and discussed by the Board.
08.02.2024, 09.03.2024, 23.03.2024.
Your Bank has in place a process, wherein, declarations are
Committees of the Board obtained from the Directors regarding fulfilment of the ‘fit
The Bank has following Committees of the Board: and proper’ criteria in accordance with the RBI guidelines/
1) Management Committee Companies Act, 2013. The declarations from the Directors
2) Audit Committee other than Members of the NRC are placed before the NRC
3) Special Committee of Board on Frauds and the declarations of the Members of the NRC are placed
4) Stakeholders Relationship Committee before the Board. Assessment on whether the Directors fulfil
5) Information Technology Strategy Committee the said criteria is made by the NRC / Board on an annual
6) Corporate Social Responsibility & Environmental, basis.
Social and Governance Committee
7) Integrated Risk Management Committee Fiscal Year
8) Customer Service Committee The Fiscal Year for the Bank is reckoned as starting from 01st
9) Nomination and Remuneration Committee April to 31st March every year.
10) Legal and Impaired Assets Resolution Committee
Lead Bank Responsibility:
The compositions, powers, roles, terms of reference, etc. of J&K Bank is the only Private Sector Bank in the Country
aforesaid Committees are given in detail in the statement on assigned with responsibility of convening State/ UT
Corporate Governance annexed to this report. Level Bankers Committee-SLBC/ UTLBC meetings. The
Bank continued to satisfactorily discharge its Lead Bank
Performance Evaluation of the Board Responsibility in 12 districts of UT of J&K, i.e. Srinagar,
The Nomination and Remuneration Committee (NRC) has Ganderbal, Budgam, Baramulla, Bandipora, Kupwara,
approved a framework / policy for evaluation of the Board, Anantnag, Kulgam, Pulwama, Shopian, Poonch and Rajouri.
Committees of the Board and the individual Members of the Lead bank responsibility in other 8 districts of the UT, i.e.
Board (including the Chairperson). In conformity with the said Jammu, Samba, Kathua, Udhampur, Reasi, Doda, Ramban
policy requirements, following is the process of evaluation: and Kishtwar is assigned to State Bank of India.

• The performance evaluation of all the Independent The Annual Credit Plan 2023-24 for UT of J&K, which was
Directors is conducted by the entire Board excluding launched on 1st April,2023, envisaged a total credit target of
the Director being evaluated. `51,708.81 Crore for 16,51,877 beneficiaries. During FY 2023-
• Independent Directors evaluate the performance 24 banks operating in UT of J&K have disbursed total credit
of Non–Independent Directors, Chairperson of the of `66,052.25 Crore in favour of 18,15,203 beneficiaries,
Board, Whole Time Directors and Board as a whole registering an achievement of 128% in financial terms
and submit the report to the Board alongwith and 110% in physical terms. This includes disbursement
necessary comments and suggestive course of of `33,750.16 Crore in favour of 10,41,478 beneficiaries
action arising out of the evaluation. against the annual target of `41,261.10 Crore for 13,38,894
• The performance evaluation of the Committees of
beneficiaries under Priority Sector and `32,302.09 Crore in
the Board is conducted by the entire Board.
favour of 7,73,725 beneficiaries against the annual target
of `10,447.71 Crore for 3,12,983 beneficiaries under Non-
A questionnaire for the evaluation of the Board, its Committees
Priority Sector thereby registering achievement of 82% and
and the individual Members of the Board (including the
309% in financial terms respectively.
Chairperson) designed in accordance with the said framework
and covering various aspects of the performance relating to
J&K Bank was assigned annual target of `25,789.45 Crore
the following is forwarded to individual Directors:
for 8,26,635 beneficiaries under Priority and Non-Priority
Board Composition & Quality, Board Meetings Sectors of economy during FY 2023-24 against which
& Procedures, Board Development, Board `41,452.93 Crore were disbursed in favour of 12,94,848
Board Strategy & Risk Management, Board & beneficiaries registering an achievement of 161% in financial
Management Relations, Succession Planning
terms and 157% in physical terms.
and Stakeholder Value & Responsibility, etc.
Committees of Functions & Duties, Management Relations, Convening of meetings of J&K UTLBC and Sub-
the Board Committee Meetings & Procedures, etc. Committees of J&K UTLBC during FY 2023-24:
Chairman of the Managing Relationships, Leadership, Role & Three meetings of J&K UTLBC including one special meeting
Board Responsibility, etc. chaired by Secretary DFS, MoF, GoI and eight meetings of
Participation at Board / Committee Meetings, various Sub-Committees of J&K UTLBC were held during the
Whole Time Managing Relationships, Knowledge and Skills, financial year 2023-24 with special focus on implementation
Directors Personal Attributes, Contribution towards of following schemes/ programmes:
growth, Leadership and Initiative.  Prime Ministers Vishwakarma Scheme for socio-
Participation in meetings, managing economic development and betterment of artisans
Individual and craftsmen.
relationships, knowledge & skills & personal
Directors
attributes, etc.  SWAMITVA scheme to provide an integrated
property validation solution for rural India.
The responses received to the questionnaires on evaluation  Pledge financing for agriculture commodities
of the Board, its Committees, individual Directors including through electronic negotiable warehouse receipt
(e-NWR) to help farmers to seek loans from banks

17
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

against their NWR. and special focus of Government of Jammu & Kashmir
 Financing of Farmers Producer Organizations (FPO) on KCC saturation, the Banks/ FIs in J&K have issued
by banks. 2,19,893 fresh KCCs during FY 2023-24 involving an
 Expanding and deepening of digital payment amount of `998.92 Crore. This includes `525.20 Crore
ecosystem for 100% digital on-boarding of saving disbursed in favour of 1,70,407 beneficiaries under KCC
bank and business accounts Crop and `473.72 Crore to 49,486 beneficiaries under
KCC-AH& F.
Convening of District Level/ Block level meetings as per
Lead Bank Scheme With the above achievement during FY 2023-24, the
Lead Bank ensured that District- level and block level meetings, total number of active KCCs in J&K has reached to
such as DCC/ DLRC/ BLBC, and other related meetings under 10,83,775 as on March 31, 2024 with sanctioned credit
Lead Bank Scheme are held as per the schedule in all the 20 limit of `9,245.93 Crore.
districts of UT of J&K during the FY 2023-24.
The Fora discussed and reviewed wide range of banking Performance of Associate /Subsidiary Companies
sector issues in blocks and districts including preparation of Subsidiary:
Annual District Credit Plans using bottom up approach and As on March 31, 2024, the Bank has one unlisted wholly
review progress thereof on regular intervals. owned subsidiary namely, JKB Financial Services Limited
(JKBFSL) which was incorporated on August 27, 2008. JKB
Implementation of Financial Inclusion Plans (FIPs): Financial Services Limited was floated with the objective of
All the phases of Financial Inclusion Plan of GoI/ RBI primarily meeting the para-banking requirements of J&K
have been successfully accomplished in Union Territory Bank customers in particular and other customers of the twin
of J&K. The identified unbanked centers stand covered UTs of J&K and Ladakh in general. JKBFSL is a member of
by providing banking service outlets in the form of Bank
the National Stock Exchange of India Limited (NSE) & The
Branches/ Banking Correspondents or other modes of
BSE Limited (BSE). As a leading broking entity in the Union
coverage except for village Poshiana, District Poonch
Territories of J&K and Ladakh, JKBFSL provides a wide range
allocated to one of the Public Sector Banks, which is yet
to be covered. of financial services to its clients which include:

Responsibility of setting up of RSETIs in UT of J&K: Equity Broking Services: JKBFSL provides broking services in
In terms of guidelines issued by Ministry of Rural equity (cash/delivery, intra-day, futures and option). It plans
Development, Government of India, setting up the Rural to include BSE FO (Sensex and Bankex contracts) Commodity
Self Employment Training Institutes (RSETIs) in all the Trading and Pro Trading along with debt products to its
districts of UT of J&K was assigned by J&K UTLBC to kitty going forward. As a part of broking services offered
two banks, viz. J&K Bank and State Bank of India as per by the company, JKBFSL also facilitates opening of DEMAT
their Lead Bank responsibility. Accordingly, J&K Bank accounts for its clients.
has set up 12 RSETIs in its allocated 12 lead districts
(Anantnag, Bandipora, Baramulla, Budgam, Ganderbal, Margin Trading Facility: JKBFSL is providing margin-trading
Kulgam, Kupwara, Poonch, Pulwama, Rajouri, Shopian facility to its clients for leveraging their eligible collaterals by
and Srinagar). Performance of RSETIs in conducting funding their requirements on the cash-delivery segment of
training programmes and the number of candidates equities in NSE. The exposure is provided as per the norms
benefited through credit linkage is being reviewed in set by SEBI and other regulatory bodies.
Quarterly UTLBC meetings.
Gold ETF: JKBFSL is providing the facility to its customers
Responsibility of setting up of FLCs in UT of J&K: for buying and selling Gold ETF. This product being an
In terms of RBI guidelines for setting up of Financial exchange-traded fund can be bought and sold only on
Literacy Centres (FLCs) in all the districts of UT of Jammu stock exchanges, thus saving investors from the trouble of
and Kashmir, J&K Bank has made 12 FLCs operational keeping physical gold. The transparency in pricing/purity is
in its 12 allocated lead districts viz. Srinagar, Ganderbal, another advantage. Exchange Traded Funds are open-ended
Budgam, Baramulla, Bandipora, Kupwara, Anantnag, mutual fund schemes based on the ever-fluctuating cost of
Kulgam, Pulwama, Shopian, Poonch and Rajouri and gold. Gold ETFs give investors exposure to the gold market,
SBI having made 8 FLCs operational in its 8 allocated offering an excellent choice of investment for investors with
lead districts of UT of J&K, viz. Jammu, Samba, Kathua, conservative risk profile as gold as an asset is less volatile
Udhampur, Reasi, Doda, Ramban, Kishtwar. In addition, when compared to equities.
PNB, JKGB, EDB and J&K State Cooperative Bank have
also established 6, 2, 2 & 1 FLCs respectively, in various Initial Public Offer: To complement its broking business,
districts of UT of J&K, which as on 31.03.2024 takes the JKBFSL also facilitates its client’s participation in the IPOs
total number of FLCs in UT of J&K to 31. The performance floated by various companies. To provide these services,
of FLCs in conducting the Financial Literacy Camps as the company uses the ASBA platform of J&K Bank through
per the guidelines from RBI is being reviewed at various offline mode. However, the Company is working on the
forums including quarterly UTLBC meetings. application that will enable client to apply for IPO through
Mobile Application.
100% Saturation Drive for KCC Crop
With the launch of Viksit Bharat Sanklap Yatra(VBSY) Third Party Product Distribution: JKBFSL undertakes
and Ghar Ghar KCC Abhiyan by Government of India distribution of third party products like mutual funds and

18
ETFs according to its client’s requirements. The company
provides such distribution through online channels as well Authorised Capital ` 2,000 Crores
as through the BSE Star Mutual Fund platform. JKBFSL has
recently launched a mobile app called JKB mGrow, which Issued,
Share
Subscribed Subscribed
offers better user interface and user experience to customers. Capital
and Paid and Paid
The company is concurrently working on integrating the JKB ** paid
Particulars up Share up Share
mGrow with the JKB Mpay Delight+ platform, which will make during
Capital up to Capital
the mutual fund investments more accessible to customers. FY 2023-
FY 2022-23 as on
24
Through this integration, J&K Bank customers will be able 31.03.2024
to access the mutual fund distribution services provided by
Share of Government
JKBFSL through a single sign-on, all under one roof. The 192.48 102.24 294.72
of India
Company is also planning to introduce NSE platform for
investing in Mutual Funds. Share of Government
57.75 30.67 88.42
of U.T of J&K
Performance highlights of the JKBFSL during the financial Share of J&K Bank
134.73 71.57 206.30
year 2023-24: (Sponsor Bank)
Income:
• The total income of the Company surpassed `1500 ** During FY 2023-24, Bank has received an additional capital
lakhs mark during the financial year 2023-24 & grew support of `204.48 Crores from its promoters till March 31,
by 45% from `1046.40 Lakhs to `1514.56 Lakhs. 2024, thereby augmenting the CRAR to 11.21%.
• Income from MTF (Margin Trade Funding) is ` 285.24
Lakh for the financial year 2023-24 as compared to • Tier II Perpetual Bonds:
`255.81 Lakh in FY 2022-23 thereby registering a Out of total cost outlay of `23.34 Crores for
YoY growth of 12%. implementation of 100% CBS by JKGB, 50% i.e. `11.67
• Revenue from 3rd party products has been marked crore has been shared by J&K Bank (Sponsor Bank).
as a growth area for the company. The company has Date of issue: 04-12-2014
recorded AUM growth of around 137% on YoY basis
and accordingly the mutual fund commission grew • Area of Operation:
from `54.00 Lakhs in 2022-23 to `97.72 Lakhs in The area of operation of the J&K Grameen Bank
2023-24 thereby recorded a YOY growth of 81%. comprises of 13 districts of the UT of J&K and UT of
• The income from Equity broking for the financial Ladakh viz. Baramulla, Bandipora, Kupwara, Ganderbal,
year 2023-24 is `770.37 Lakhs & recorded a growth Srinagar Jammu, Kathua, Rajouri, Poonch, Samba,
of 51%. The overall trading volumes of the company Kishtwar, Leh and Kargil.
has increased by 52% YOY basis.
• The depository income during the financial year No. of Branches
2023-24 recorded growth of 42% and reached to (as on 31st March, 2024) : 216
`172.88 Lakhs. No. of Employees
• The PAT of the company during the financial year (as on 31st March, 2024) : 1226 (includes 9 officials
2023-24 stood at `264.01 Lakhs and thereby on deputation from J&K
recorded a growth of 118% YoY. Bank - Sponsor Bank).

Associate: Business Performance of the J&K Grameen Bank as on

Regional Rural Bank (Sponsored by J&K Bank): J&K 31.03.2024
Grameen Bank: • Total Business:
The J&K Grameen Bank has come into existence on 30th The total business of the bank as on 31st March 2024
June 2009 with the issuance of statutory notification by stood at `9364.33 Crores against `8513.30 Crores as on
Department of Financial Services, Ministry of Finance, 31st March 2023, thereby registering a growth of 9.99%
Government of India with its Head Office at Jammu and has during the financial year 2023-24.
commenced its business with effect from 01.07.2009.
• Deposits:
• Capital Structure: The deposits of the bank have increased from ` 5268.76
In terms of RRBs Act 1976, the authorised capital of Crores to `5710.15 Crores during the financial year 2023-
Regional Rural Banks was fixed at `5.00 Crore (which 24, thereby registering a growth rate of 8.38%.
stands amended to `2000 Crore in terms of the
Regional Rural banks (Amendment) Act, 2015 notified in • Advances:
the Gazette of India on 12-05-2015). The gross advances of the bank as on 31st March 2024
stood at `3654.18 Crores as against ` 3244.54 Crores as
The issued and paid up capital of the J&K Grameen on the corresponding date of the previous year recording
Bank as on 31st March 2024 is `589.44 Crores being a growth of 12.63%.
fully subscribed by the Central Government, State/ UT
Government and Sponsor Bank in the ratio of 50:15:35 • CD Ratio:
respectively and is tabulated below:
The C.D. Ratio of the bank has increased from 61.58%
as on 31st March 2023 to 63.99% as on 31st March, 2024.

19
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

• Priority Sector Advances: accordingly to better leverage Bank’s success in financial and
The Priority Sector Advances outstanding as on 31st institutional terms. With an established identity and image
March 2024 stood at `2845.64 Crores against `2595.45 in the JKL market, our focus remained to enhance Bank’s
Crores outstanding as on 31st March 2023, registering a position and boost its brand appeal in aesthetically vibrant
growth of 9.64% on YoY basis. JKGB has priority sector terms to complement its financial standing. While as in rest
advances to total advances outstanding percentage at of the country, we successfully increased our brand exposure
77.87% as on 31st March, 2024 which is well above the activities during the FY 2023-24 both on and off-line thereby
prescribed target of 75% to RRBs. enhancing Bank’s brand awareness, deepening its brand
perception and increasing its brand value.
• NPA Management:
Gross NPAs of the bank as on 31st March, 2024 stood at During the FY 2023-24, the Bank undertook various
`148.70 Crores (4.07%) against `147.51 Crores (4.55%) promotional activities to position its brand further favorably
as on 31st March, 2023. Accordingly Net NPAs as on 31st among the people, complementing ever-strengthening
March, 2024 stood at `45.45 Crores (1.28%) against significance of our institution on financial landscape of JKL
`55.89 Crores (1.77%) as on 31st March, 2023. and beyond. While Brand J&K Bank continues to hold the
sway among the people, Bank has ensured to put an effective
• Business per Employee: and efficient communication strategy in place to reinforce
The business per employee as on 31st March 2024 stood the brand recall.
at `7.64 Crores against `7.33 Crores as on corresponding
date of the previous year. During the FY, the Bank successfully ran a 360 degree brand-
deepening campaign - ‘Meri Kahani Meri Zubani” – wherein
• Business per Branch: customer testimonials from J&K and Ladakh highlighting
The business per branch as on 31st March 2024 stood as the inclusive and effective financial role that the Bank
`43.35 Crores against `39.60 Crores as on corresponding continues to play across the socio-economic landscape of its
date of the previous year. core geography to empower individuals and groups thereby
providing a solid base to the economy that is at the cusp of a
• Profitability: great transformation.  
The Bank has earned a net profit of `3.76 Crores as on
31st March, 2024 as against a net loss of `51.63 Crores as Also, after a slump of three years, tourism has witnessed
on 31st March, 2023. record high numbers in calendar year 2023 with a huge rush
of tourists visiting J&K and Ladakh by road as well as air
Advertising & Publicity route. Therefore, we have also increased our brand presence
During the FY 2023-24, we have been successful in at all three airports in UT’s of J&K and Ladakh besides placing
strengthening the bond of trust with all our stakeholders our advertisements prominently across J&K on customised
by leveraging all the means and channels available for road barricades at Srinagar and Jammu cities, tourist places,
uninterrupted communication throughout the financial year. pilgrim destinations like Katra and few places enroute Shri
The Bank’s products, services and facilities were successfully Amarnath Ji Shrine.
advertised and publicized through a series of mass-media
campaigns across the operational geographies of the Bank. While the thrust for using digital channels to communicate
Also, the advertising campaigns initiated by the Bank to to the people has been mandated in the face of ever
increase its overall business, while meeting the set targets, changing technological landscape with Bank enhancing its
were duly publicized with proper follow-up communications. digital footprints by leveraging its presence on social media
Also, the functioning and accomplishments of the Bank platforms, it has increased usage of traditional advertisement
were effectively communicated to relevant target audiences genres like outdoor advertising (OOH) through hoardings to
including major stake-holders, customers, shareowners, garner better mileage in terms of brand visibility and reach. A
other stakeholders and general public through customized well-drilled brand visibility enhancing activity was carried out
and efficiently packaged messages/hand-outs using mass by displaying Bank’s products and schemes at ATMs/CRMs &
media within J&K and Ladakh, besides rest of the country to Branches while making sure Glow Signboards-an important
earn high credibility and enhance our brand image. tool of brand identity-are properly maintained. Hoardings
were placed in twin cities of Jammu and Srinagar, national
Leveraging the power of internet in reaching out to a highways and other key locations across all major towns and
wider audience, we successfully increased our presence areas of JKL and rest of the country.
in the social-media universe further by strengthening and
streamlining our online presence through highly popular Moreover, people-centric and environment-friendly initiatives
mediums of social connectivity tools especially Facebook, commenced under CSR during FY2023-24 were properly
Twitter, Instagram, YouTube and LinkedIn. highlighted to earn public goodwill, strengthen the trust
and bond between Bank and its stakeholders, and create a
Brand Building continuity in the positive perception about the Bank.
Brand perception forms the fulcrum of any communication While doing all this, the key components of brand identity
plan, which is devised to complement the Bank’s business like logo, its colours, font, and other aspects were properly
strategy. Therefore, in line with the Bank’s vision to scale utilized and placed to deepen the brand perception and
up its business and expand presence in rest of the country loyalty among the stakeholders.
while deepening its foot-prints in Jammu & Kashmir and
Ladakh (JKL), we aligned the Brand Building campaigns

20
Major Awards and Recognitions Received During FY enhancement of stakeholder volume. Several matters have
2023-24 been voluntarily included in the statement on corporate
J&K Bank’s illustrious history of more than eight decades is governance annexed to this report, besides certificate from
decorated with awards and accolades. Over the years, the the Secretarial Auditors regarding compliance of conditions
Bank has collected numerous honours in various categories. of Corporate Governance as stipulated by the SEBI (Listing
During the FY 2023-24, the Bank outshone its competitors to Obligations & Disclosure Requirement) Regulations, 2015.
grab the headlines in following categories.
• Honoured with Best MSME Bank Award along with Management Discussion and Analysis
Second Best Award for Promoting Government The Management Discussion and Analysis Report for the
Schemes at MSME Banking Excellence Awards year under report is presented in a separate section forming
(2023). part of this report.
• Awarded with Development Leadership Award 2023
at 14th Agriculture Leadership Conclave 2023. Whistle Blower Policy & Vigil Mechanism
• Prestigious ‘Times Now India’s Impactful CEO - 2023’ The Bank has a Whistle Blower mechanism in place which
Award bestowed upon MD & CEO Baldev Prakash. enhances transparency in the organization by encouraging
• First Scheduled Commercial Bank (SCB) in the the employees/ directors/ other specified stakeholders to
country to have been awarded Payment Card report any wrongdoing, which comes to their knowledge in
Industry Data Security Standard (PCIDSS) Version
the day-to-day performance of their duties or interaction
4 Certification for both Issuance and Acquiring
with other fellow-colleagues/ Bank staff without fear of
Business.
retaliation, victimization and unfair-treatment. The Bank has
• Best Performance Award in CASA - India (1st Runner
up in Small Bank Category) at ICC Emerging Asia formulated the “Whistle Blower Policy” to guarantee them
Banking Conclave & Awards 2022 protection from any adverse departmental proceedings.
• Gold Award at Infosys Finacle Innovation Awards – The Policy is compliant to regulatory requirements under
2023 under the category of Process innovation. Section 177 (9) of the Companies Act 2013, and SEBI Listing
Regulations. The policy document is available on the Bank’s
Corporate Social Responsibility (CSR) official website under link:
As a responsible corporate citizen, J&K Bank envisions https://www.jkbank.com/investor/stockExchangeIntimation/
to integrate its strategic intent and business goals with corporateGovernancepolicies.php
the needs of the society in order to achieve an inclusive,
sustainable and harmonious environment. This represents Further, the mechanism adopted by the Bank encourages
the core principle and forms the basis of the Bank’s CSR the Whistle Blower to report genuine concerns or grievances
policy. and also provides for direct access to Chairman of the Audit
Committee of the Board, in exceptional cases.
The Bank, guided by the founding principles of its CSR policy,
takes and encourages initiatives aimed at improving the lives The grievance under Whistle Blower mechanism can be
and living conditions of the vulnerable sections of the society lodged on the Bank’s official website under link:
besides lending support to the society’s endeavours aimed at https://www.jkbank.com/others/common/wbGrievences.php
making the world a better place to live in.
In line with the same, the Bank continued its ‘social It is hereby affirmed that the Bank has not denied any of its
investment’ by undertaking projects of varied nature to personnel access to the Chairman of the Audit Committee of
alleviate the hardships of different sections of the society the Board and that the policy contains adequate provisions
and address issues of environmental sustainability. In turn, for protecting whistle blowers from unfair termination and
the Bank reaped benefits in the form of increased emotional other unfair prejudicial employment practices.
equity, brand-connect and goodwill.
In the FY 2023-24, six (06) complaints received under Whistle
During the financial year FY2023-24, the Bank continued to Blower Mechanism were placed before the Audit Committee
intervene and enhance value creation in the society through of Board.
CSR activities in consonance with its mission of ‘Serving to
Empower’. While CSR initiatives undertaken during FY2023- Protected Disclosure Scheme:
24 have, directly or indirectly, benefitted hundreds of The Bank in line with the RBI prescribed framework, has
thousands of people across UTs of J&K and Ladakh, some eco- devised a Policy Document on the “Protected Disclosure
centric activities have contributed towards reducing carbon Scheme.” The complaints under the Scheme cover the areas
footprint and encouraging green energy solutions. The such as corruption, misuse of office, criminal offences,
statutory disclosures with respect to the CSRESG Committee suspected/ actual fraud, failure to comply with existing
of the Board, including a report on the CSR, forms part of rules and regulations such as Reserve Bank of India Act,
this report at Annexure 1. The key areas of intervention and 1934, Banking Regulation Act 1949, etc. and acts resulting
the activities undertaken under CSR by the Bank during the in financial loss/ operational risk, loss of reputation, etc.
FY2023-24 are detailed in Corporate Functions Report. detrimental to depositors’ interest/ public interest. Reserve
Bank of India (RBI) will be the Nodal Agency to receive
Corporate Governance complaints under the Scheme.
The Bank has established a tradition of exemplary practices
in corporate governance. It encompasses not only regulatory The complaint under the scheme should be sent in a closed/
and legal requirements, but also several voluntary practices, secured envelope addressed to The Chief General Manager,
aimed at high level business ethics, effective supervision and Reserve Bank of India, Department of Banking Supervision,

21
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Fraud Monitoring Cell, Third Floor, World Trade Centre, risks for effective and continuous monitoring and control.
Centre 1, Cuffe Parade, Mumbai 400005. The envelope An independent risk management function ensures that risk
should be superscripted “Complaint under Protected is managed through a risk management architecture as well
Disclosures Scheme for Banks”. Complaints can also be made as through policies and processes approved by the Board
to RBI through e-mail: dbspd@rbi.org.in by giving full details of Directors. The risk management policies and procedures
as specified above. established are updated on continuous basis in compliance
to RBI guidelines and benchmarked to the best practices.
The policy document is available on the intranet page of the The Board of Directors with its Committee-Integrated Risk
Bank as well as on the Bank’s official website under link: Management Committee (IRMC) reviews risk management
https://www.jkbank.com/pdfs/policy/latest/Policy_ policies of the Bank pertaining to credit, market, liquidity,
protected.pdf operational & Pillar II risks that includes strategic risk and
reputational risk, Internal Capital Adequacy Assessment
It is hereby affirmed that no unfair treatment will be meted Process (ICAAP) and stress testing. The Senior Management
out to a Complainant by virtue of his/her having reported a Committees - Credit Risk Management Committee (CRMC),
Disclosure under this Policy. The Bank, as a policy, condemns Operational Risk Management Committee (ORMC) and
any kind of discrimination, harassment, victimization or any Market Risk Management Committee (MRMC) for credit
other unfair employment practice being adopted against risk, operational risk and market risk operate within the
Complainant(s). Complete protection will, therefore, be given broad risk management framework of the Bank to assess
to Complainant(s) against any unfair practice like retaliation, and minimize these risks. Bank has an independent Risk
threat or intimidation of termination/suspension of service, Management Vertical headed by the Chief Risk Officer, who
disciplinary action, transfer, demotion, refusal of promotion, reports to IRMC of Board and monitors the development
including any direct or indirect use of authority to obstruct and implementation of methodologies for risk identification,
the Complainant’s right to continue to perform his/ her assessment, measurement, monitoring and mitigation for
duties/functions including making further Disclosure under all risks. Information security and business continuity plan
the policy. In FY 2023-24, the Bank has not received any also forms part of risk management function in the Bank.
complaint under the “Protected Disclosure Scheme”. Treasury activities are separately monitored by mid office
which reports to Risk Management Vertical. The Bank has
Risk Management Stress Testing Policy to measure impact of adverse stress
A well-defined and comprehensive risk management scenarios on the adequacy of capital. The stress scenarios
framework of our Bank is based on a clear understanding are idiosyncratic, generic and a combination of both.
of different risks, accepting various risks, disciplined risk
Business Responsibility and Sustainability Report
assessment, measurement & continuous monitoring. The
(BRSR)
Bank has put in place a Risk Management and Risk Appetite
In terms of Regulation 34(2)(f) of the SEBI (Listing
Framework (RAF) that articulates the risk appetite and
Obligations and Disclosure Requirements) Regulations, 2015,
drills down the same into a limit framework for various risk
top 1000 Listed Entities based on their market capitalization
categories. Risk appetite defines the levels and types of risk
as on 31st March every year are required to submit their
that are acceptable, within risk capacity, in order to achieve
Business Responsibility and Sustainability Report (BRSR) on
strategic objectives and business plans. The risk appetite
the environmental, social and governance disclosures as a
framework, which is approved by the Board, bolsters effective
part of the Annual Report. The Bank’s BRSR describing the
risk management by promoting sound risk-taking through
initiatives taken by the Bank from an environmental, Social
a structured approach, within agreed boundaries. The key
and governance perspective is enclosed as Annexure- 6.
components of the Bank’s Risk Management architecture rely
on the risk governance structure, comprehensive processes Information under the Sexual Harassment of Women at
and internal control mechanism based on approved policies Workplace (Prevention, Prohibition and Redressal) Act,
and guidelines. The Bank’s risk management processes are 2013
guided by way of policies adopted appropriately for various The Bank does not engage in any form of child labour /
risk categories, independent risk oversight and periodic forced labour / involuntary labour and does not adopt any
monitoring by Board of Directors, Committee of the Board discriminatory employment practices. The Bank has a Policy
of Directors (Integrated Risk Management Committee against sexual harassment and a Committee “Internal
of Board) and Senior Management Committees – Credit Complaints Committee for Prevention, Prohibition and
Risk Management Committee, Market Risk Management Redressal of Sexual Harassment of Women at Workplace” has
Committee, Operational Risk Management Committee and been constituted for dealing with complaints of harassment
Asset Liability Committee (ALCO). The policies approved or discrimination. The said policy is in line with relevant Act
from time to time by Board of Directors, Committee of Board passed by the Parliament in 2013. The Bank, through the policy
(IRMC) form the basis for governing framework for each type ensures that all such complaints are resolved within defined
of risk. The Board sets the overall risk appetite and philosophy timelines. During the year, two complaints were lodged before
for the Bank and has an oversight of all the risks assumed by the Internal Complaints Committee duly constituted under
the Bank. The Bank’s Risk Management framework focuses the Sexual Harassment of Women at Work Place (Prevention
on the management of key areas of Risk such as Credit, and Redressal) Act, 2013 and the rules made thereunder.
Market, Operational Risk, Liquidity Risk and Pillar II risks; Accordingly, due inquiry proceedings were conducted in the
quantification of these risks, wherever possible. The risk cases, as stipulated in the Act and adequate opportunity was
management function in the Bank strives to proactively provided to both complainants and respondents to present/
anticipate vulnerabilities in the business operations through defend their case. Both the complaints were disposed of
quantitative or qualitative examination of the embedded within the requisite time frame of 90 days.

22
Employee accidental deaths judgment dated March 27, 2023, in Civil Appeal No. 7300 of
During the year 2024, there were no occurrences of employee 2022 (State Bank of India & Ors. vs. Rajesh Agarwal & Ors.) &
accidental death at the workplace. other connected matters along with judgement of Delhi High
Court dated May 12, 2023. Pursuant to the communication
Loans, Guarantees & Investment in Securities of RBI, the Bank following principles of natural justice,
Pursuant to section 186(11) of the Companies Act, 2013 loans particularly the rule of audi alteram partem, issued Show-
made, guarantees given or securities provided or acquisition Cause notices to the borrowers’ and after re-examining their
of shares by a Banking company in the ordinary course of its replies in light of the already conducted internal investigation
business are exempted from disclosure in the Annual Report. and Forensic Audit Reports the accounts were re-classified
as fraud in FY 2023-24.
Contracts or Arrangements with Related Parties
Considering the nature of the Industry in which the Bank Also in FY 2023-24 fraud amount was revised in two fraud
operates, transactions with related parties of the Bank are in cases pertaining to FY 2016-17 & FY 2020-21 by an amount of
the ordinary course of business and are also at arm’s length `22.40 Lacs and `19.14 Lacs. The fraud amount in these cases
basis. There was no materially significant related party was thus respectively revised to `60.04 lacs and `64.79 after
transaction entered by the Bank with Promoters, Directors, fresh claims were received and settled by the Bank.
Key Managerial Personnel or other persons which may have
a potential conflict with the interests of the Bank. The policy Frauds reported by Auditors
on Related Party Transactions and dealing with related During the year under review, one fraud was reported by the
parties as approved by the Audit Committee and the Board statutory auditors under Section 143 (12) of the Companies
of Directors is uploaded on the website of the Bank and the Act, 2013 to the Ministry of Corporate Affairs, Govt. of India.
link for the same is below:
https://www.jkbank.com/investor/stockExchangeIntimation/ Consolidated Financial Statements
corporateGovernancepolicies.php Pursuant to Section 129 of the Companies Act, 2013, the
Bank has prepared Consolidated Financial Statements of the
Statement of related party transactions under sub section Bank, its Subsidiary (JKB Financial Services Ltd.) and also
(1) of Section 188 of the Companies Act, 2013 is attached its Associate (J&K Grameen Bank) which shall be laid before
herewith as Annexure 5. shareholders at the 86th Annual General Meeting of the Bank
along with Bank’s Financial Statements under sub-section
Information under Insolvency and Bankruptcy Code, (2) of Section 129 i.e. Standalone Financial Statements of
2016 the Bank. Further, pursuant to the provisions of Accounting
The Bank as on 31st March, 2024 has cases under the IBC Standard (AS) 21 - Consolidated Financial Statements
resolution, the details whereof along with existing status is notified under Section 133 of the Companies Act 2013, read
tabulated as under: with Rule 7 of the Companies (Accounts) Rules 2014 issued
(Amt. in Crs) by the Ministry of Corporate Affairs, the Consolidated
Financial Statements of the Bank along with its Subsidiary/
Recoveries
S. No. of Stage of NPA / NPI
during the
Associate for the year ended March 31, 2023 form part of this
No. Accounts Process Outstanding Annual Report. The statement in form AOC-1 pursuant to first
year, if any
proviso to sub-section (3) of Section 129 read with Rule 5 of
Resolution Companies (Accounts) Rules 2014 is annexed as Annexure-4.
Process
1 26 1710.93 4.57
(Pending Statutory Auditors
with NCLT) The Statutory Central and Branch auditors of the Bank are
appointed by the Comptroller & Auditor General of India
Liquidation
2 23
Process
1867.10 25.97 (C&AG) pursuant to Section 139 (5) of the Companies Act,
2013. The Bank had three (3) Statutory Central Auditors
Resolution appointed by the C&AG of India for the year under report as
approved/ given below:
3 4 implemented 142.18 1. M/s Gupta Gupta & Associates LLP, Chartered Accountants
93.94
during the 2. M/s JCR & Co LLP, Chartered Accountants
year.
3. M/s Lunawat & Co, Chartered Accountants

Frauds reported by the Bank Statutory Central Auditor’s Report

The Bank during the financial year 2023-24 has detected/ For the FY 2023-24, there are no qualifications, reservation
reported 35 cases of frauds to the Reserve Bank of India or adverse remarks made by the Statutory Central Auditors
involving an amount of `241.35 Crores. in the audit report.

Out of the above 35 frauds, 03 frauds (involving three Fees paid to Statutory Auditors
accounts) which were declared as fraud in FY 2019-20 & FY The details of total fees (excluding taxes), for all services,
2020-21 involving an amount of `19598.00 lacs were de- paid by the Bank on a consolidated basis to the Statutory
activated in FY 2023-24 after directions from Reserve Bank Central Auditors are tabulated below:
of India which were in accordance to the Hon’ble Supreme

23
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

(Amount in `) Statutory Disclosures

M/s Gupta 1. The disclosures to be made under sub- section (3) (m)
M/s of Section 134 of the Companies Act, 2013 read with rule
S. Gupta & M/s JCR
Particular Lunawat Total (8) (3) of the Companies (Accounts) Rules, 2014 by your
No Associates & Co LLP
& Co
LLP Bank are explained as under:
Fee pay-
ment by A. Conservation of energy
Bank to (i) The steps taken or impact on conservation of
1 66,44,520 66,39,020 67,82,020 2,00,65,560 energy.
Central
Statutory The Bank is committed to achieving a low
Auditors carbon footprint through various energy
conservation initiatives. These include:
Certifica-
2 tion /Other 16,76,000 15,00,000 15,00,000 46,76,000
fee Data Center Optimization: The Bank’s Data
Center is located in a highly energy-efficient
Comments of C & AG facility in Noida. This facility adheres to ITIL-
As on date of this report, the Bank has not received the based service delivery frameworks and meets
comments under Section 143 (6) of the Companies Act, 2013 internationally recognized standards like ISO
from the Comptroller and Auditor General of India on the 9001 and ISO 20000, ensuring efficient and
accounts of the Bank for the year ended 31st March 2024 and secure operations while contributing to energy
the same alongwith Banks reply to the comments shall be conservation.
read out at the 86th Annual General Meeting.
Award Winning Disaster Recovery Center: The
Secretarial Auditors & Secretarial Audit Report Bank’s Disaster Recovery Center is housed in
Pursuant to Section 204 of the Companies Act 2013, your Asia’s largest rated 4 Hyper-scale Datacenter.
Bank has appointed CS Ghulam Jeelani Reshi, Proprietor This facility, aligned with TIA-942 standards, is
of M/s Reshi & Associates, Company Secretaries as its USGBC LEED Platinum Certified and has won
Secretarial Auditor to conduct the Secretarial Audit of the the Golden Peacock Eco-Innovation Award,
Bank for the FY2023-24. The Bank provided all assistance emphasizing its strong focus on environmental
and facilities to the Secretarial Auditor for conducting the sustainability.
audit. The report of Secretarial Auditor for the FY 2023-24 is
annexed to this report as Annexure 3. e-Office & Online Account Opening & Loan
Journeys: Our Bank’s “Online Account & Loan
Compliance with Secretarial Standards Journeys” initiative, along with the e-Office
The Bank is in compliance with all applicable Secretarial solution, exemplifies our commitment to
Standards as notified from time to time. environmental sustainability by reducing
paper consumption, minimizing printer
Change in the nature of business use, and conserving energy. These digital
During the year under review, there has been no change in transitions enhance operational efficiency
the nature of business of the Bank. and significantly lower our carbon footprint,
aligning with our broader ESG goals and
Material changes and commitment affecting financial contributing to a sustainable future.
position of the Bank
There are no material changes and commitments, affecting Digital Signage Screens: The Bank has
the financial position of the Bank which has occurred between increased the use of Digital Signage Screens
the end of the financial year of the Bank i.e. March 31, 2024 as an energy-efficient alternative to traditional
and the date of the Directors’ Report i.e. July 19, 2024. paper notices. These screens use low-power
LED displays, reducing the energy consumption
Ratings of various debt instruments associated with printing and distributing paper
The Credit Rating and change/revision in the Credit Ratings notices.
for various debt instruments issued by the Bank from time Energy-Efficient Hardware: The Bank uses
to time are provided in the Corporate Governance Report Energy Star compliant computing and
forming part of the Annual Report. communication hardware across all offices and
banking outlets, significantly reducing power
Employee Remuneration consumption.
The statement containing particulars of employees as
required under Section 197(12) of the Companies Act, 2013 (ii) Steps Taken to Utilize Alternate Sources of
read with Rule 5 (2) of the Companies (Appointment and Energy
Remuneration of Managerial Personnel) Rules, 2014 is given Though the Bank operates in a non-energy-
in “Annexure 2” forming part of this report. intensive environment, it prioritizes the
procurement and use of energy-efficient
hardware and equipment. Additionally, CFL

24
 lamps are being replaced with LED lamps/ business mobilization, asset quality management,
fixtures to further reduce energy consumption. and customer relationship management through
Business Correspondents (BC). It also includes a
(iii) Capital Investment in Energy Conservation mobile applications for Business Correspondents
Equipment (BCs) to facilitate doorstep banking.
The Bank is dedicated to implementing
energy conservation measures, investing To boost digital payments, the Bank also introduced
in cloud computing, compute on demand, its flagship product for UPI QR-SoundBox.
energy-efficient equipment such as virtual This portable speaker, equipped with a 4G SIM
servers, thin clients, multi-purpose printers, slot for connectivity, provides audio alerts for
kiosks, and scanners. These technologies help every payment, allowing merchants to manage
minimize energy consumption and promote transactions without checking SMS notifications.
sustainability across the Bank’s operations. Additionally, as part of our digital transformation, the
Bank now offers an online account opening facility
B. Technology Absorption with Video KYC. This service, initially available
At J&K Bank, our unwavering commitment to for General and Student Saving Accounts, allows
enhancing and simplifying the banking experience customers to open accounts anytime, enhancing
for our customers is at the forefront of our convenience and accessibility. The facility is
strategic initiatives. We are embracing innovative gradually being released for other business account
technologies to ensure our services are on par with variants shortly.
the best in the industry. Our Bank leverages advanced
technological solutions to offer unparalleled value Further to support the goals for conservation of
to our customers, whether through seamless energy and introduce operational efficiency, a
digital banking platforms or robust mobile banking modernized e-Office application suite has been
application. Throughout the year, the Bank has implemented Bank-wide, automating file and
implemented number of initiatives leveraging the correspondence management from creation
power of technology to enhance the overall banking to archival. A complementary mobile app for
experience for its customers. authorizers and approvers facilitates decision-
The Bank has successfully upgraded its Mobile making on the go, providing a user-friendly interface
Banking Application and rolled out its flagship to manage and approve documents efficiently.
upgrade as “mPay Delight+”. This upgrade
has introduced concept of “Bank-in-a-Pocket” C. Foreign Exchange Earnings and Outgo:
experience by making banking facilities available The Foreign Exchange earned in terms of actual
on the fingertips of our customers. The new inflows during the year and the Foreign Exchange
application has undergone complete redesigning outgo during the year in terms of actual outflow:
of UI/UX and introduced all new features like UPI-
Scan & Pay, Online Deposit Accounts, Full Fledged During the Year ended 31.03.2024, the Bank earned
Debit Card & Credit Card Management, Scheduled `473.09 lakhs and spent `163.86 lakhs in foreign
Transactions, Instant Loans, real-time email Update, currency. This does not include foreign currency
Full Statement Delivery over email, Bill Payments, cash flow in derivatives and foreign currency
mPay Lite and much more. The upgrade has been exchange transactions.
built on top of a resilient architecture which ensures
that the application is able to handle ever-growing 2. No significant and material orders were passed by the
transaction volume. The application is available over regulators or courts or tribunals impacting the going
Playstore & AppStore and has registered over a 1.5 concern status of the Bank’s operations in future.
Million installations and has already recorded a One
Thousand crore daily transaction amount mark. The 3. No Stock options were issued to the Directors of your
application features are being incrementally added Bank
through version upgrades and many more exciting
features like Launch of Corporate Mobile Banking Annual Return
have been planned for rollout in coming quarters. In accordance with the provisions of Companies Act, 2013,
The Bank has transitioned its UPI & IMPS platform the Annual Return of the Bank for the financial year 2023-24
from an on-premises setup to a cloud-hosted in the prescribed Form MGT-7 will be available on the website
model. This move ensures auto scalability to handle of the Bank at: https://www.jkbank.com/investor/financials/
unpredictable transaction volumes, essential for the annualReturns.php.
growing UPI ecosystem.
Directors Responsibility Statement
To move closer to door step banking, an all-new Pursuant to Section 134 (3) (c) of the Companies Act, 2013,
state of art solution for Financial Inclusion was the Board of Directors hereby state that:
launched, designed to support transactional
growth for the next five years. This platform (a) in the preparation of the annual accounts, the
extends beyond regulatory compliance, aiding in applicable accounting standards had been followed

25
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

along with proper explanation relating to material CEO & CFO Certification
departures; Certificate issued by Managing Director & CEO and Chief
(b) the directors had selected such accounting policies financial officer of the Bank, for the financial year under
and applied them consistently and made judgments review, was placed before the Board of Directors in their
and estimates that are reasonable and prudent so as meeting held on May 04, 2024 in terms of the Regulation
to give a true and fair view of the state of affairs of the 17(8) of the Listing Regulations.
Bank at the end of the financial year and of the profit
and loss of the Bank for that period; Divergence in asset classification and provisioning for
(c) the directors had taken proper and sufficient care NPAs
for the maintenance of adequate accounting records Based on the condition mentioned in RBI circular, no disclosure
in accordance with the provisions of this Act for on divergence in asset classification and provisioning for
safeguarding the assets of the Bank and for preventing NPAs is required with respect to RBI’s supervisory process
and detecting fraud and other irregularities; for the year ended March 31, 2023.
(d) the directors had prepared the annual accounts on a
going concern basis; and Acknowledgements
(e) the directors, had laid down internal financial controls The Directors thank the valued customers, shareholders, well-
to be followed by the Bank and that such internal wishers and correspondents of the bank in India and abroad
financial controls are adequate and were operating for their goodwill, patronage and support. The Directors
effectively. acknowledge with gratitude the valuable and timely advice,
(f) the directors had devised proper systems to ensure guidance and support received from Government of India,
compliance with the provisions of all applicable laws Government of Jammu & Kashmir, Reserve Bank of India,
and that such systems were adequate and operating Securities and Exchange Board of India (SEBI), Insurance
effectively. Regulatory Developmental Authority (IRDA), NABARD, SIDBI,
IBA, FIMMDA, FEDAI, Stock Exchanges, Ministry of Corporate
Adequacy of Internal Financial Controls related to Affairs, Registrar of Companies, Comptroller & Auditor
Financial Statements General of India, Financial Institutions and the Central
The Bank has adequate internal controls and processes in Statutory Auditors of the bank in the functioning of the bank.
place with respect to its financial statements which provide
reasonable assurance regarding the reliability of financial The Directors place on record their deep appreciation of the
reporting and the preparation of financial statements in valuable contribution of the members of the staff at all levels
accordance with Generally Accepted Accounting Principles. for the progress of the bank during the year and look forward
These controls and processes are driven through various to their continued cooperation in realization of the corporate
policies, procedures and certifications. The control goals in the years ahead.
environment of the Bank is adequate enough to provide
reasonable assurance regarding the reliability of financial
reporting and the preparation of the Bank’s financial For and on behalf of the Board of Directors
statements. The processes and controls are reviewed
periodically. Naba Kishore Sahoo Baldev Prakash
Independent Director MD & CEO
Requirement for maintenance of Cost Records
The cost records as specified by the Central Government Place: Srinagar (J&K)
under section 148(1) of the Companies Act, 2013 are not Date: July 19, 2024
required to be maintained by the Bank.

26
Annexure 1
Annual Report on CSR activities for the financial year ended 31st March, 2024

1. Brief outline on CSR Policy of the Company: Mr. Anand

5 Member 05 05
The Corporate Social Responsibility (CSR) policy of the Kumar
Bank envisages not only an inclusive and sustainable socio- Mr. Sudhir
6 Member 05 05
economic empowerment of the under-privileged; it strives Gupta
to help achieve a vibrant and environmentally conscious
ecosystem. The Bank, guided by the founding principles of 3. Provide the web-link(s) where Composition of
its CSR policy, helps support initiatives to improve the lives CSRESG Committee, CSR Policy and CSR Projects
and living conditions of the indigent sections of the society approved by the board are disclosed on the website
besides lending support to the society’s endeavors aimed at of the company.
making the world a better place to live.
https://www.jkbank.com/csr/index.html
In line with the same, the bank continued its ‘social-
investment’ in the form of monetary and other logistics 4. Provide the executive summary along with web-
support to systemically vital healthcare institutions as well link(s) of Impact Assessment of CSR Projects
as to alleviate the hardships of different sections of the carried out in pursuance of sub-rule (3) of rule 8, if
society. In turn, the bank reaped benefits in the form of applicable.
increased emotional equity, brand-connect and goodwill.
Nil/Not Applicable
During the Financial Year (FY) 2023-24, the Bank continued 5.
to intervene and enhance value creation in the society a) Average net profit of the company as per sub-section
through CSR activities in consonance with its mission of (5) of section 135 = `945.43 Cr.
‘Serving to Empower’. b) Two percent of average net profit of the
company as per sub-section (5) of section 135 =
2. Composition of Corporate Social Responsibility & `18.91 Cr.
Environmental, Social and Governance (CSRESG) c) Surplus arising out of the C S R Projects or
Committee: programmes or activities of the previous
financial years = NIL.
d) Amount required to be set-off for the financial year,
Number of if any = NIL
Number of
meetings of
Designation
meetings of
CSR&ESG e) Total CSR obligation for the financial year [(b)+(c)-
Sl. CSR&ESG
No.
Name ofDirector / Nature of
Committee
Committee (d)] = `18.91 Cr.
Directorship attended 6.
held during
during the
the year
year
a) Amount spent on CSR Projects (both Ongoing Project
and other than Ongoing Project) =`18.91 Cr.
Ms. Shahla
1
Ayoub
Chairperson 05 05 b) Amount spent in Administrative Overheads.
= NIL
Mr. Baldev
2 Member 05 05 c) Amount spent on Impact Assessment, if applicable
Prakash
= NIL/Not Applicable
Mr. Umesh d) Total amount spent for the Financial Year [(a)+(b)+(c)]
3 Member 05 05
Chandra Pandey
= `18.91 Cr.
Mr. Anil Kumar e) CSR amount spent or unspent for the Financial Year:
4 Member 05 05
Goel

27
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Amount Unspent (in `)

Total Amount Spent Total Amount transferred to Unspent CSR

Amount transferred to any fund specified under Schedule VII as
for theFinancial Year. Account as per sub-
per second proviso to sub-section (5) of section 135.
(in INR) section (6) of section 135.

Amount. Date of transfer. Name of the Fund Amount. Date of transfer.

18.91 Cr. Nil Not Applicable Not Applicable NIL Not Applicable

f) Excess amount for set-off, if any:

Amount
Sl. No. Particular
(in INR)
(1) (2) (3)

Two percent of average net profit of the company as per sub-section (5) of section 135 18.91 Cr.

Total amount spent for the Financial Year 18.91 Cr.

Excess amount spent for the Financial Year [(ii)-(i)] NIL
Surplus arising out of the CSR projects or programmes or activities of the previous
NIL
Financial Years, if any

Amount available for set off in succeeding Financial Years [(iii)-(iv)] NIL

7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:
1 2 3 4 5 6 7 8 9
Balance Amount transferred to a
Amount Amount
Amount in Fund as specified under
transferred to remaining to
Unspent CSR Schedule VII as per second
Preceding Unspent CSR Amount Spent be spent in Deficie ncy, if
Sl. Account proviso to sub- section (5)
Financial Account under in the Financial succeeding any
No. under sub- of section 135, if any
Year(s) sub- section Year (in Rs) Financial
section (6) of
(6) of section Years (in Rs)
section 135 Amount Date of
135 (in `)
(in `) (in `) Transfer
1 FY20-21 NIL NIL NIL NIL Not Applicable NIL NIL
2 FY21-22 NIL NIL 63,00,000.00 NIL Not Applicable NIL NIL
3 FY22-23 NIL NIL 1,18,00,000.00 NIL Not Applicable NIL NIL

8. Whether any capital assets have been created or acquired through

Corporate Social Responsibility amount spent in the Financial Year = No
If Yes, enter the number of Capital assets created/ acquired = NIL

Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent
in the Financial Year:
Short particulars of the
property or asset(s) Amount of
Sl. Pincode of the property Date of Details of entity/ Authority/ beneficiary of the
[including complete CSR amount
No. or asset(s) creation registered owner
address and location of spent
the property]

(1) (2) (3) (4) (5) (6)

Number, if CSR Registration Registered

Name
applicable address

Not Applicable (NA) NA NA NA NA NA NA

(All the fields should be captured as appearing in the revenue record, flat no, house no, Municipal Office/Municipal Corporation/
Gram panchayat are to be specified and also the area of the immovable property as well as boundaries)
9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per sub section-5 of
section 135 of the Companies Act, 2013. - (Not Applicable)

Sd/- Sd/-
Baldev Prakash Shahla Ayoub
(MD & CEO) (Chairperson CSRESG Committee)

28
Annexure 2
A. PARTICULARS OF EMPLOYEES AS PER RULE 5(2) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF
MANAGERIAL PERSONNEL) RULES, 2014 FOR THE YEAR ENDED 31st MARCH, 2024, ARE AS UNDER:

I. Employed throughout the Financial Year and in Receipt of Remuneration Aggregating `1.02 Crore or more
Per Annum: NIL*
II. Employed for a Part of the Financial Year and in Receipt of Remuneration Aggregating `8.50 Lakhs or more
Per Month: NIL
III. Employed throughout the financial year or part thereof and in receipt of remuneration which in aggregate
or the rate of which in aggregate is in excess of that drawn by managing director or whole time or manager
and holds by himself or along with his spouse and dependent children, not less than 2% of the equity shares
of the company: NIL

B. List of top ten employees (other than MD & CEO and ED) in terms of remuneration drawn during the FY 2023-24 with
following fields:
Whether any
such employee
Nature of Last is a relative of
Designation (as employment employment % of any Director or
Remunera- Qualification/ Date of
S. No. Name on 31st March, (whether Age held before equity Manager of the
tion drawn Experience Joining
2024) contractual or joining the shares company and
otherwise) Bank if so, name of
such Director or
Manager

PEER BSC (Medical)/DIP.

General Regular
1 MASOOD 4253483 TREASURY INVST; 18/10/1989 56 --- 0.0014 ---
Manager Employee
AHMAD RISK MGT /CAIIB
SUSHIL
General Regular BSC (Non-
2 KUMAR 4139142 18/04/1988 58 --- 0.0022 ---
Manager Employee Medical)/CAIIB
GUPTA
SYED BSC (Medical)/
General Regular
3 SHAFAT 3979432 Master of Arts 17/10/1989 60 --- 0.0028 ---
Manager Employee
HUSSAIN (English)/JAIIB

Bachelor of
Arts (ENGLISH
LITERATURE)/
IMTIYAZ PG Dip in Comp
General Regular
4 AHMAD 3907771 Applications / 20/10/1989 56 --- 0.0014 ---
Manager Employee
BHAT Master of Business
Admin (Banking;
Finance)/BSC
(Medical)/CAIIB
BA(LLB) (Law)/
TABASSUM General Regular
5 3890119 BSC (Medical)/ 17/10/1989 59 --- 0.0032 ---
NAZIR Manager Employee
JAIIB
SYED
SHUJAAT General Regular
6 3879181 BSC (Non-Medical) 17/10/1989 59 --- 0.0027 ---
HUSSAIN Manager Employee
ANDRABI
BSC (Non-
NARJAY General Regular
7 3867512 Medical)/LLB 25/10/1989 57 --- 0.0024 ---
GUPTA Manager Employee
(Law)/CAIIB

Pg. Dip. Comp.Sc;

Applications
SUNIT General Regular (Computer
8 3832089 27/10/1989 57 --- 0.0025 ---
KUMAR Manager Employee Science)/ BSC
(Non-
Medical)/ JAIIB

RAKESH General Regular BSC (Non-

9 3830710 25/10/1989 57 --- 0.0018 ---
KOUL Manager Employee Medical)/JAIIB

SYED RAIS General Regular BSC (Medical)/

10 3814618 18/10/1989 57 --- 0.0030 ---
MAQBOOL Manager Employee JAIIB/CAIIB

C) The ratio of the remuneration of each director to the median remuneration of employees and other details in terms of sub-section 12 of
Section 197 of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014:

29
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

S l .
Requirements Disclosure
No
MD & CEO 7.77
Executive Director 3.36
Mr. R K Chhibber 2.52
Dr. Rajeev Lochan Bishnoi 2.52

The ratio of the remuneration of each director to the median Mr. Naba Kishore Sahoo 2.61
I
remuneration of the employees for the financial year Dr. Mohmad Ishaq Wani 0.32
Mr. Umesh Chandra Pandey 2.49
Mr. Anil Kumar Goel 2.45
Mrs. Sushmita Chadha 0.39
Mr. Anand Kumar 2.71
MD & CEO -5.14

The percentage increase in remuneration of each director, CFO, CEO, Executive Director 238.68**
II
CS in the financial year CFO -4.05
CS 9.62

The percentage increase in the median remuneration of employees The median remuneration of the employees in the financial
III
in the financial year year was increased by 9.44%.

There were 12,415 permanent employees as on March 31,

IV The number of permanent employees on the rolls of the Bank
2024.

Average percentile increase already made in the salaries of

the employees other than the managerial personnel in the last Average percentile increase already made in the salaries
financial year and its comparison with the percentile increase in of the employees other than the Managerial personnel is
V
the managerial remuneration and justification thereof and point 9.80%. There is no exceptional increase in the salary of
out if there are any exceptional circumstances for increase in the employees or management.
managerial remuneration

Affirmation that the remuneration is as per the remuneration policy

VI Yes, it is confirmed
of the Bank

*The approved remuneration package for MD&CEO is above the threshold limit. However, actual remuneration paid during
the financial year 2023-24 was below the threshold.
** The position of Executive Director was vacant till 14.12.2022.

30
Annexure 3

FORM NO MR 3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2024
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To,
The Members,
Jammu and Kashmir Bank Limited
CIN: L65110JK1938SGC000048
Corporate Head Quarters, M A Road
Srinagar, J&K - 190001

I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate
practices by the Jammu and Kashmir Bank Limited (CIN: L65110JK1938SGC000048) (hereinafter referred to as the ‘Bank’).

The Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/
statutory compliances and expressing my opinion thereon.

Based on my verification of the Bank’s statutory registers, books, papers, minute books, forms and returns filed and other
records maintained by the Bank and also the information provided by the Bank, its officers and authorized representatives
during the conduct of secretarial audit, I hereby report that in my opinion, the Bank has, during the audit period covering the
financial year ended on March 31, 2024 complied with the statutory provisions listed hereunder and also that the Bank has
proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made
hereinafter:

I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Bank for the
financial year ended on March 31, 2024 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made there under;

(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

(iv) The Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign
Direct Investment, Overseas Direct Investment and External Commercial Borrowings;

Not applicable to the Bank during the audit period.

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI
Act’): -

(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;

(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;

During the FY, the Bank issued and allotted 6,97,02,602 equity shares at a price of `107.60 which was at a dis-
count of 4.49% (i.e. `5.06 per equity share) to the Qualified Institutional Buyers (QIB) aggregating to a total of
`749,99,99,975.20. The Issue opened on December 11, 2023 and closed on December 14, 2023. The allotment was
made on December 15, 2023.

The aforesaid issue and allotment was made in compliance with the above regulations.

(d) Securities and Exchange Board of India (Share Based Employee Benefits & Sweat Equity) Regulations, 2021 (Erst-
while Securities and Exchange Board of India (Share Based Employee Benefits) Regulation, 2014;

(e) Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (Erst-
while Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;

31
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
regarding the Companies Act and dealing with client;

Not applicable as the Bank is not registered as Registrar to an Issue and Share Transfer Agent during the audit
period.

(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021; and

Not applicable as the Bank has not delisted/proposed to delist its equity shares from any stock exchange during the
audit period.

(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018;

Not applicable as the Bank has not bought back/proposed to buy back any of its securities during the audit period.

(vi) List of other laws specifically applicable to the Bank:

a) Securities and Exchange Board of India (Bankers to an Issue) Regulations, 1994.

b) The Insolvency and Bankruptcy code, 2016, and amendments thereto from time to time.

c) The Banking Regulation Act, 1949 and rules framed thereunder so far as applicable to the Bank except:

• As required under the RBI circular No.DOR.GOV.REC.8/29.67.001/2021-22 dated April 26, 2021 on Corporate
Governance in Banks, the Bank did not have a part-time Non-Executive Chairman. However, the meetings of the
Board were chaired by Non-Executive Independent Director in compliance to the Circular.

• During the Financial year 2023-24, penalty of `2,14,150.00 (out of which `50,000.00 was later waived-off and
reversed by RBI) was imposed by the Reserve Bank of India on Currency Chests, `1,00,000.00 (out of which
`50,000.00 was later waived-off and reversed by RBI) was imposed by the Reserve Bank of India on ATM Cash
Outs and `20,000.00 was imposed by RBI on branch Prithviraj Road for not having all coin denominations.

• Further, penalty of `2.50 crores was imposed by RBI for non-compliance with certain directions issued by RBI
on ‘Creation of a Central Repository of Large Common Exposures-Across Banks’, read with ‘Central Repository
of Information on Large Credits (CRILC) – Revision in Reporting’, ‘Loans and Advances – Statutory and other
Restrictions’ and ‘Time-bound implementation and strengthening of SWIFT-related operational controls’.

d) The deposit Insurance and Credit Guarantee Corporation Act, 1961.

I have also examined compliance with the applicable clauses of the following:

(i) Secretarial Standards - SS-1 (related to Board Meetings) and SS-2 (related to General Meetings) issued by The Insti-
tute of Company Secretaries of India.

(j) The Bank has complied with all the provisions of the listing agreement and the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015. However, during the year, a fine of `20,000/- plus applicable GST was levied by
The BSE Limited for the delayed submission of disclosure under Regulation 60(2) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 for the period ended May, 2021 and December, 2021. The Bank con-
tested the levying of fine and represented for waiver. The BSE limited vide its mail dated 16.05.2024 has waived off
penalty pertaining to May-2021, while as request for waiver of penalty pertaining to Dec-2021 is under consideration
with the Exchange.

I further report that:

a) The Board of Directors of the Bank is duly constituted with proper balance of Executive, Non-Executive and Independent
Directors.

b) The changes in the composition of the Board of Directors that took place during the period under review were carried out
in compliance with the provisions of the Act.

c) Adequate notice was given to all directors atleast seven days in advance to the scheduled Board/Committee Meetings
except in those cases where the meetings were conducted at shorter notice. Agenda and detailed notes on agenda were
sent in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items
before the meeting and for meaningful participation at the meeting. Majority decisions were carried through while the
dissenting members’ views were captured and recorded as part of the minutes.

32
I further report that there are adequate systems and processes in the Bank commensurate with the size and operations of the
Bank to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

I further report that the compliance by the Bank of the applicable financial laws such as direct and indirect tax laws and
maintenance of financial records and books of accounts has not been reviewed in this Audit since the same have been subject
to review by Statutory Central Auditors and other designated professionals.

For Reshi & Associates

Company Secretaries

Ghulam Jeelani Reshi

(Proprietor)
FCS No -8720; C P No: 10020
Firm Registration No: S2011JK536600
UDIN: F008720F000646291
Place: Srinagar
Date: 01/07/2024

This Report is to be read with Annexure A and Forms an integral part of this report.

33
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Annexure A
To,
The Members,
JAMMU AND KASHMIR BANK LIMITED
CIN: L65110JK1938SGC000048
CORPRATE HEAD QUARTERS,
M.A ROAD SRINAGAR
J&K, – 190001

Our report of even date is to be read along with this letter.

1. Maintenance of Secretarial record is the responsibility of the management of the Bank. Our responsibility is to
express an opinion on these secretarial records based on our audit.

2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records during the period of my audit. The audit process was carried
on the basis of documents, reports and records made available to me, which were relied upon as audit evidence for
conducting the audit.

3. The verification was done on test check basis to ensure that correct facts are reflected in secretarial records. I
believe that the process and practices, I followed provide a reasonable basis for my opinion.

4. Wherever required, I have obtained the management representation about list of applicable laws, compliance of laws,
rules and regulations and happening of events etc.

5. The compliance of the provisions of corporate and other applicable laws, rules, regulations and standards is the
responsibility of management. My examination was limited to the verification of procedure on test check basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the Bank nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Bank.

For Reshi & Associates

Company Secretaries

Ghulam Jeelani Reshi

(Proprietor)
FCS No -8720; C P No: 10020
FRN: S2011JK536600
UDIN: F008720F000646291
Place: Srinagar
Date: 01/07/2024

34
Annexure 4

Form AOC-I
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts)
Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries/ associate companies/ joint ventures
Part “A”: Subsidiaries
(Amounts in ` in Lakhs)
S.
Particulars Remarks
No
JKB Financial Services
1. Name of the subsidiary
Limited

Reporting period for the subsidiary concerned, if different from the holding company’s
2. NA
reporting period

Reporting currency and Exchange rate as on the last date of the relevant Financial year in the
3. NA
case of foreign subsidiaries.

4. Share capital ` 4000.00

5. Reserves & surplus ` 353.03

6. Total assets ` 8205.19

7. Total Liabilities ` 8205.19

8. Investments NIL

9. Turnover ` 1514.57

10. Profit before taxation ` 351.03

11. Tax Expenses ` (87.02)

12. Profit after taxation ` 264.01

13. Proposed Dividend NIL

14. % of shareholding 100%

Notes: The following information shall be furnished at the end of the statement:

1. Names of subsidiaries which are yet to commence operations NIL

2. Names of subsidiaries which have been liquidated or sold during the year. NIL

35
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Part “B”: Associates and Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to The J&K Grameen Bank Jammu & Kashmir Asset
Associate Companies and Joint Ventures Name of Associates (Associate) Reconstruction Ltd.

1. Latest audited Balance Sheet Date 31.03.2024 NA

Shares of Associate/Joint Ventures held by the Bank on the year end :

Number
2. 2063 Lakhs 0.
Amount `20631 Lakhs 0.
Extend of Holding % 35 % 0.

The J&K Bank is the

sponsor Bank of the J&K
3. Description of how there is significant influence Grameen Bank, holding
35 % of its Share
Capital As per note below*

4. Reason why the associate is not consolidated NA

13065.71 Lakhs i.e. 35%

Net worth attributable to Shareholding as per latest audited Balance
5. of Total Net Worth of
Sheet
`37330.62 Lakhs As per note below*

6. Profit / Loss for the year `376.06Lakhs

7. Considered in Consolidation Yes No

8. Not Considered in Consolidation No Yes

*The Jammu & Kashmir Asset Reconstruction Limited was incorporated jointly by Government of J&K and Jammu & Kashmir
Bank Ltd on 28.04.2017. The Bank has subscribed capital to the tune of `98 lakhs whereas Government of J&K has subscribed
`102 lakh. In the meantime the promoters have decided to windup the company and the Bank in turn has approached the
Registrar of Companies (ROC) for removal of the name of the company from the register of companies under Section 248 of
the Companies Act, 2013. The application of the Bank is under consideration with ROC.

In terms of our report of even date annexed

Baldev Prakash R. K. Chhibber Naba Kishore Sahoo Umesh Chandra Pandey Anil Kumar Goel Anand Kumar
Managing Director & CEO Director Director Director Director Director
DIN: 09421701 DIN: 08190084 DIN: 07654279 DIN: 01185085 DIN: 00672755 DIN: 03041018

Sudhir Gupta Shahla Ayoub Fayaz Ahmad Ganai Mohammad Shafi Mir
Executive Director Director Chief Financial Officer Company Secretary
DIN: 09614492 DIN: 09834993

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160

Place : Srinagar
Dated: 4th May, 2024

36
Annexure 5
Form AOC-II
Form for disclosure of particulars of contracts/arrangements entered into by the company with related
parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s length
transactions under third proviso thereto
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts)
Rules, 2014)

1. Details of contracts or arrangements or transactions not at arm’s length basis:

------Not Applicable-----
2. Details of material contracts or arrangement or transactions at arm’s length basis

(a) Name(s) of the related party and nature of relationship

As per table
(b) Nature of contracts/ arrangements/ transactions “A” below

(c) Duration of the contracts/arrangements/transactions -

(d) Salient terms of the contracts or arrangements or transactions including the value, if any: -

(e) Date(s) of approval by the Board, if any: NA

(f) Amount paid as advances, if any: NA

TABLE “A” (` In Crores)

JKB Financial
Items/Related J&K Grameen Bank Jammu & Kashmir Asset
Services Ltd.
Party (Associate) Reconstruction Limited
(Subsidiary)

Balance as on date 1731.94 11.66

Deposits
Maximum Balance during the year 1731.94 23.91
Balance as on date 11.67* 5.91
Advances
Maximum Balance during the year 48.67 14.33
Balance as on date 206.31 40.00
Investments
Maximum Balance during the year 206.31 40.00
Interest Paid 99.22 0.75 * As per note below
Interest/Commission Received 0.21 0.47
Sale of Fixed Assets NIL NIL
Reimbursement on behalf of Associate/Subsidiary NIL 0.41
Deputation Staff Salary NIL 0.48
IT Support Services 1.03 0.00
Outstanding with Associate/Subsidiary NIL 0.12

Advances is shown as borrowings from the sponsor bank in shape of SOD, LAD and Perpetual Bonds.

*`11.67 crore is 50 % share of Sponsor Bank for implementation of CBS by JKGB in the form of Investment in Tier II
perpetual bonds.

*The Jammu & Kashmir Asset Reconstruction Limited was incorporated jointly by Government of J&K and Jammu & Kashmir
Bank Ltd on 28.04.2017. The Bank has subscribed capital to the tune of `98 lakhs whereas Government of J&K has subscribed
`102 lakh. In the meantime the promoters have decided to windup the company and the Bank in turn has approached the
Registrar of Companies (ROC) for removal of the name of the company from the register of companies under Section 248 of
the Companies Act, 2013. The application of the Bank is under consideration with ROC.

37
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

3. Salary to Key Managerial Person (KMP)

(Amt in Lakhs)

Mr.Baldev Prakash Ms. Sudhir Gupta Mr.Pratik D Punjabi Mr. Mohammad Shafi Mir
(MD & CEO) (Executive Director) (CFO) (Company Secretary)

Period for which post held From 01.04.2023 to From 01.04.2023 From 01.04.2023 From 01.04.2023
during FY 2023-24 31.03.2024 to 31.03.2024 to 31.03.2024 to 31.03.2024
Salary 97.52 40.21 31.05 28.25

FOR & ON BEHALF OF THE BOARD

Baldev Prakash
MD & CEO
DIN: 09421701

In terms of our report of even date annexed

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160

Place : Srinagar
Dated: 4th May, 2024

38
Annexure 6

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORTING FORMAT

SECTION A: GENERAL DISCLOSURES
I. Details of the listed entity

Corporate Identity Number (CIN) of the Listed Entity : L65110JK1938SGC000048

Name of the Listed Entity : Jammu and Kashmir Bank Limited
Year of incorporation : 1938
Registered office address : Corporate Headquarters, M. A. Road, Srinagar,
Kashmir –190001
Corporate address : Corporate Headquarters, M. A. Road, Srinagar, Kashmir –190001
E-mail : board.sectt@jkbmail.com
Telephone : 0194-248-1930-35
Website : www.jkbank.com
Financial year for which reporting is being done : 2023-24
Name of the Stock Exchange(s) where shares are listed : National Stock Exchange of India Limited & The BSE Limited.
Paid-up Capital : `11011.82 lakhs
Name and contact details (telephone, email address) of the : Mohammad Shafi Mir
person who may be contacted in case of any queries on Company Secretary & Compliance Officer
the BRSR report 0194-2481928
board.sectt@jkbmail.com
Reporting boundary - Are the disclosures under this report : The disclosures made in this report are on a standalone basis.
made on a standalone basis (i.e. only for the entity) or on
a consolidated basis (i.e. for the entity and all the entities
which form a part of its consolidated financial statements,
taken together).
Name of assurance provider : Not Applicable
Type of assurance obtained : Not Applicable

II. Products/services
16. Details of business activities (accounting for 90% of the turnover):
S. No. Description of Main Description of % of Turnover of the entity
Activity Business Activity
01 Banking and Financial Services Banking activities viz. retail, corporate banking 100%
(Commercial Bank) etc.

17. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):

S. No. Product/Service NIC Code % of total contributed Turnover

J&K Bank operates in three major segments:

1. Retail
2. Corporate
3. Treasury
All products and services are offered under these segments.
Some flagship products are:-
1. Saving Bank Deposits
01 2. Current Deposits 64191 100
3. Term Deposits
4. Housing Loans
5. Working Capital
6. Overdraft A/Cs
7. Car Loans
8. Agriculture Loans
9. Kissan Credit Card etc.

39
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

III. Operations
18. Number of locations where plants and/or operations/offices of the entity are situated:
Location Number of plants Number of offices Total
National NA 1173* 1173
International NA -- --

*Includes Extension counters, Easy Banking Units (USBs) and Large Credit Units (LCUs).

19. Markets served by the entity:

a. Number of locations
Locations Number
18 States
National (No. of States)
4 Union Territories
International (No. of Countries) Nil

b. What is the contribution of exports as a percentage of the total turnover of the entity?
The Bank ordinarily doesn’t directly contribute to the exports. However the Bank has customized products and services
for its customers relating to their foreign exchange related requirements, viz. Exports, Imports, other overseas
payments and inward remittances. Bank provides pre and post shipment credit facilities. Packing Credit Loan, both
in Rupee and Foreign Currency, thereby enabling the customers for procurement of their raw materials and Post
shipment credit facilities, viz. Export Bills negotiation under LC terms, advance against export bills, etc.

c. A brief on types of customers

The Bank caters to a diverse range of customers including individuals, state/UT and central governments, PSUs,
Educational Institutions, Corporations, employees (govt. as well as private), businessmen, students, MSMEs, corporates,
artisans, farmers, start-ups etc.

IV. Employees
20. Details as at the end of Financial Year:
a. Employees and workers (including differently abled):
Total Male Female
S. No. Particulars
(A) No. (B) % (B / A) No. (C) % (C / A)
EMPLOYEES
1. Permanent (D) 12415 9260 74.59 3155 25.41

Other than
2. 434 368 84.79 66 15.21
Permanent (E)

Total employees
3. 12849 9628 NA 3221 NA
(D + E)

WORKERS
4. Permanent (F)
Other than
5.
Permanent (G) Not Applicable
Total workers
6.
(F + G)

b. Differently abled Employees and workers:

S. Total Male Female
Particulars
No (A) No. (B) % (B / A) No. (C) % (C / A)
DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) 119 106 89.08 13 10.92
Other than
2. Nil Nil Nil Nil Nil
Permanent (E)

40
 Total differently
3. abled employees 119 106 89.08 13 10.92
(D + E)
DIFFERENTLY ABLED WORKERS
4. Permanent (F)
Other than
5.
permanent (G)
Total differently Not Applicable
6. abled workers
(F + G)

21. Participation/Inclusion/Representation of women

No. and percentage of Females
Total (A)
No. (B) % (B / A)
Board of Directors 12 1 8.33%

Key Management Personnel 4 0 0.00%

22. Turnover rate for permanent employees and workers

(Disclose trends for the past 3 years)
FY 2023-24 FY 2022-23 FY 2021-22
(Turnover rate in current FY) (Turnover rate in previous (Turnover rate in the year prior to
FY) the previous FY)

Male Female Total Male Female Total Male Female Total

Permanent
Employees 1.07 1.14 1.09 0.92 0.86 0.90 0.82 0.80 0.81

Permanent
Workers NA NA NA NA NA NA NA NA NA

V. Holding, subsidiary and associate companies (including joint ventures)

23. (a) Names of holding / subsidiary / associate companies / joint ventures
Does the entity indicated at column
Name of the holding / Indicate whether holding/
% of shares A, participate in the Business
S. No. subsidiary / associate Subsidiary/ Associate/
held by Responsibility initiatives of the listed
companies / joint ventures Joint Venture
listed entity entity?
(A)
(Yes/No)
JKB Financial Services
1 Subsidiary 100 No
Limited
2 J&K Grameen Bank Associate 35 No
Jammu & Kashmir Asset
3
Reconstruction Limited Associate * No

*The Jammu & Kashmir Asset Reconstruction Limited was incorporated jointly by Government of J&K and Jammu &
Kashmir Bank Ltd on 28.04.2017. The Bank has subscribed capital to the tune of `98 lakhs whereas Government of
J&K has subscribed `102 lakh. In the meantime the promoters have decided to windup the company and the Bank in
turn has approached the Registrar of Companies (ROC) for removal of the name of the company from the register of
companies under Section 248 of the Companies Act, 2013. The application of the Bank is under consideration with ROC.

VI. CSR Details

24. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No) Yes
(ii) Turnover (in `) 12037.84 Crores
(iii) Net worth (in `) 10966.77 Crores

VII. Transparency and disclosures compliances

25. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business
Conduct:

41
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Grievance FY 2022-23
FY 2023-24
Redressal Previous Financial Year
Current Financial Year
Stakeholder Mechanism in
group from Place (Yes/No) Number of Number of
whom (If Yes, then Number of
complaints Number of complaints
complaint is provide complaints
pending complaints pending
received web-link for filed Remarks Remarks
resolution filed resolution
grievance during the
at close of during the year at close of the
redress policy) year
the year year
Communities -- -- -- -- --

Investors
(other than -- Nil Nil Nil Nil
shareholders)

https://www.
jkbank.com/
Shareholders Yes 304 00 107 0
others/common/
grievance.php
https://reports.
Employees and
Yes Nil Nil jkbank.com/ Nil Nil
workers
jkbcms/login
https://www.
jkbank.com/
Customers Yes 3497 388 1662 33
others/common/
grievance.php
Value Chain
-- -- -- -- -- --
Partners
Other (please
-- -- -- -- -- --
specify)

26. Overview of the entity’s material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social
matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or
mitigate the risk along-with its financial implications, as per the following format:
Financial
implications
Indicate of the risk or
Material In case of
whether risk or Rationale for identifying opportunity
S. No. identified risk, approach to adapt or
opportunity the risk/ opportunity (Indicate
issue mitigate
(R/O) positive or
negative
implications)
A healthy asset quality shall
enhance the Bank’s financial
Sound Asset performance by improving
01 O N/A Positive
Quality profitability, minimizing credit
losses, and ensuring a robust
capital base
A satisfied customer base,
increases customer loyalty, which
Satisfied
02 O satisfies customers’ financial goals N/A Positive
Customer
resulting in increased business /
profitability.
• Multi-layered risk, manage-
Increases vulnerability to ment strategy
economic downturns or market
Systematic
03 Risk R
crashes, may lead to increased • Stress testing policy and Positive
regulatory scrutiny, reputational System in place
Management
damage, and a loss of investor
confidence • Independent risk manage-
ment function

42
 Financial
implications
Indicate of the risk or
Material In case of
whether risk or Rationale for identifying opportunity
S. No. identified risk, approach to adapt or
opportunity the risk/ opportunity (Indicate
issue mitigate
(R/O) positive or
negative
implications)
Builds investor confidence,
Enhanced
ensures compliance with
Transparency
04 O regulatory obligations, and N/A Positive
and
strengthens market positioning
disclosures
and relationship with stakeholders.
A strong economic performance
Robust provides a basis for maintaining
05 Economic O stability and generating positive N/A Positive
Performance momentum and long-term value
for our stakeholders.
Having a robust information
security structure (Software, Bank has put in place
expert manpower and operational effective Information
Privacy practices) helps to reduce cyber Security, Data Privacy
and threats and ensure privacy, data and Security Governance
06 O Positive
Data security for all our stakeholder’s Framework and Controls
Security privileged information thereby to ensure Confidentiality,
enhancing customer confidence Integrity and Availability of
which fetches more business Information Assets.
opportunities.

Bank has framed policies

with respect to information
technology / cyber security
risk which set forth limits,
Privacy and Data Security mitigation strategies
Privacy
Is becoming a major risk due to and internal controls.
and
07 R increasing digitization as post Information Security Positive
Data
pandemic the number of digital Management Policy and
Security
users has grown many folds. Cyber Security Policy are
in place for protecting the
bank’s cyberspace against
Cyber - attacks, threats and
vulnerabilities.

43
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting
the NGRBC Principles and Core Elements.
Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
Policy and management processes

1. a.Whether your entity’s policy/policies cover each principle and

Yes Yes Yes Yes Yes Yes NA Yes Yes
its core elements of the NGRBCs. (Yes/No)

b. Has the policy been approved by the Board? (Yes/No) Yes Yes Yes Yes Yes Yes NA Yes Yes

c. Web Link of the Policies, if available The policies are available on the Banks website www.jkbank.com.
2. Whether the entity has translated the policy into proce-
Yes Yes Yes Yes Yes Yes NA Yes Yes
dures. (Yes / No)
No, however in cases where the policies have been incorporated
3. Do the enlisted policies extend to your value chain partners?
specifically in the Memorandum of Understanding executed
(Yes/No)
between Bank and value chain partners same extend to them.

4. Name of the national and international codes/certifications/

No specific National or International codes, certifications, labels,
labels/ standards (e.g. Forest Stewardship Council, Fairtrade,
standards are applicable for the policies framed, nonetheless same
Rainforest Alliance, Trustea) standards (e.g. SA 8000, OHSAS,
comply with the applicable statutory & regulatory guidelines.
ISO, BIS) adopted by your entity and mapped to each principle.

The company is engaged in the banking business. It is not in the

business of manufacturing or activities related to manufacturing/
factories. Nonetheless Bank is committed for enhancing the business
5. Specific commitments, goals and targets set by the entity with
and other core activities with least bearings to environment and
defined timelines, if any.
society. The Bank has employed digitization of its activities with a
view to reduce the dependence on natural resources and lessening
the carbon emissions.

Bank provides a widespread banking services/products to

satisfaction of its customers through comprehensive infrastructure
consisting of branches, ATMs, CDMs and through digital channels
like Mobile Banking, WhatsApp Banking, Internet Banking, Point
of sale services and UPI. Use of digital channels facilitates the
6. Performance of the entity against the specific commitments, customers to do banking activities, without being physically present
goals and targets along-with reasons in case the same are not
met. at Bank’s branch/office, thereby contributing towards reducing the
carbon footprints, unnecessary travel, wastage of time and energy.
The Bank has also recently adopted Document Management System
and e-office as part of Go Green Initiative. All such initiatives are
being taken to achieve minimal usage of material resources which
affects the environment and society as a whole.

Governance, leadership and oversight

7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and achieve-
ments (listed entity has flexibility regarding the placement of this disclosure)

8. Details of the highest authority responsible for implementa-

The Board of the Bank through respective Committees.
tion and oversight of the Business Responsibility policy (ies).

Yes, the Bank has Corporate Social Responsibility & Environmental

Social and Governance Committee of the Bank which is responsible
for decision making on the sustainability related issues. The
members of the Committee are as under:
S.No Name DIN Designation

9. Does the entity have a specified Committee of the Board/ 01 Ms. Shahla Ayoub 09834993 Chairperson
Director responsible for decision making on sustainability re- 02 Mr. Baldev Prakash 09421701 Member
lated issues? (Yes / No). If yes, provide details.
03 Mr. Umesh Chandra Pandey 01185085 Member
04 Mr. Anil Kumar Goel 00672755 Member
05 Mr. Anand Kumar 03041018 Member
06 Mr. Sudhir Gupta 09614492 Member

44
10. Details of Review of NGRBCs by the Company:

Indicate whether review was undertaken by Frequency (Annually/ Half yearly/ Quarterly/ Any
Director / Committee of the Board/ Any other
Subject for Review Committee other – please specify)

P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9

Performance against above

policies and follow up action

Compliance with statutory The Bank complies with all the policies. The Board of the Bank and its Committees meet periodically
requirements of relevance to the inter-alia for evaluating the performance of the Bank and to review the policies and per the timelines
principles, and, rectification of stipulated in the policies.
any non-compliances

11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an
No
external agency? (Yes/No). If yes, provide name of the agency.

12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9

The entity does not consider the Principles material to its business (Yes/No)

The entity is not at a stage where it is in a position to formulate and implement

the policies on specified principles (Yes/No)
Not Applicable
The entity does not have the financial or/human and technical resources
available for the task (Yes/No)
It is planned to be done in the next financial year (Yes/No)
Any other reason (please specify)

45
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core
Elements with key processes and decisions. The information sought is categorized as “Essential” and “Leadership”.
While the essential indicators are expected to be disclosed by every entity that is mandated to file this report, the
leadership indicators may be voluntarily disclosed by entities which aspire to progress to a higher level in their quest
to be socially, environmentally and ethically responsible.

PRINCIPLE 1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical,
Transparent and Accountable.

Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year:
Total number of Topics/principles covered %age of persons in respective catego-
Segment training and awareness under the training and its
programmes held impact ry covered by awareness programmes

IT & Cyber Security, Gover-

Board of Directors 05 67%
nance
IT & Cyber Security, advanced
Key Managerial
02 programme on strategic lead- 75%
Personnel
ership
Employees other than BoD Capacity building & skill Up-
250 50%
and KMPs gradation
Workers Not Applicable

2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity
or by directors/KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the following
format (Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing
Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):
Monetary

Name of the regulatory/ Has an

NGRBC appeal been
enforcement agencies/ Amount (In INR) Brief of the Case preferred?
Principle
judicial institutions (Yes/No)
Deficiencies observed during inspec-
-- Reserve Bank of India 2,14,150.00 Yes
tion.
-- Reserve Bank of India 1,00,000.00 Penalty imposed on ATM cash outs. Yes
Penalty imposed for non-compliance
with certain directions issued by the
-- Reserve Bank of India 2,50,00,000.00 RBI on ‘Creation of a Central Reposi- No
tory of Large Common Exposures-
Across Banks’.
Penalty/ Fine
Deficiencies observed during inspec-
-- Reserve Bank of India 20,000.00 No
tion.
-- CBEC 2,290.00 Delayed reporting in GST. No
Non-compliance of regulation 60(2)
BSE Limited
-- 23,600.00 of SEBI LODR Regulations, 2015 in re- Yes
spect of coupon payments for Bonds.
Settlement -- -- -- --
Compounding
-- -- -- --
fee
Non-Monetary

Name of the regulatory/ Has an

NGRBC appeal been
enforcement agencies/ Amount (In INR) Brief of the Case preferred?
Principle
judicial institutions (Yes/No)
Imprisonment -- -- -- -- --
Punishment -- -- -- -- --

46
3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or non-
monetary action has been appealed.
Name of the regulatory/ enforcement
Case Details
agencies/ judicial institutions
Infirmities observed in the functioning of Currency Chests during RBI inspection.
The Bank has represented to the Reserve Bank of India for waiver of penalty. The RBI
Reserve Bank of India
has granted a waiver of `50,000.
Penalty imposed on ATM cash outs.
The Bank has represented to the Reserve Bank of India for waiver of penalty. The RBI Reserve Bank of India
has granted a waiver of `50,000.
Non-compliance of regulation 60(2) of SEBI LODR Regulations, 2015 in respect of cou-
pon payments for Bonds.
The Bank has contested the levying of fine and has represented for waiver. The BSE
limited vide its mail dated 16.05.2024 has waived off penalty pertaining to May-2021, BSE Limited
while as request for waiver of penalty pertaining to Dec-2021 is under consideration
with the exchange.

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a
web-link to the policy.
There is no policy for anti-corruption or anti-bribery policy in our Bank, however rules regarding prohibition of corruption/
bribery find a place in the Bank’s Officers Service Manual (OSM-2022) under the title ‘Conduct Rules’. The OSM is available
on the Bank’s Intranet for information of employees. Further the Bank has put in place the following measures to check
corruption or bribery:
The Bank has a functional Vigilance Vertical which is headed by Independent Chief Vigilance Officer (CVO). CVO reports to
MD & CEO of the Bank. The CVO looks into vigilance activities of the Bank, identifies corruption prone areas within the Bank
and collects information about corruption or malpractices within the Bank by way of surprise visits and offsite surveillance
done through Vigilance officers posted at 03 Divisions of the Bank.
The Bank has also in place a “Whistle-Blower Mechanism” which is compliant with regulatory requirements under Section
177 (9) of the Companies Act 2013, and Clause 49 of Equity Listing Agreement as amended by the Securities and Exchange
Board of India vide its circular No. CIR/CFD/ Policy Cell/2/2014 dated April 17, 2014.
The Bank has also in place “Protected Disclosures Scheme” which is compliant with RBI directions conveyed vide Circular
No. DO DBS. FRMC No. BC 5 /23.02.011 /2006-07 dated April 18, 2007.

5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement
agency for the charges of bribery/ corruption:
FY 2023-24 FY 2022-23
(Current Financial Year) (Previous Financial Year)
Directors Nil Nil
KMPs Nil Nil
Employees Nil Nil
Workers Not Applicable

6. Details of complaints with regard to conflict of interest:

FY 2023-24 FY 2022-23
(Current Financial Year) (Previous Financial Year)
Number Remarks Number Remarks
Number of complaints received in relation to issues of Conflict
Nil NA Nil NA
of Interest of the Directors
Number of complaints received in relation to issues of Conflict
Nil NA Nil NA
of Interest of the KMPs

7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by
regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest. Nil

8. Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured) in the following
format:
FY 2023-24 FY 2022-23
(Current Financial Year) (Previous Financial Year)
Number of days accounts payables -- --

47
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

9. Open-ness of business
Provide details of concentration of purchases and sales with trading houses, dealers and related parties along-with loans
and advances & investments, with related parties in the following format:
FY 2023-24 FY 2022-23
Parameter Metrics (Current (Previous Financial
Financial Year) Year)
Concentration of NA NA
a. Purchases from trading houses as % of total purchases
Purchases
b. Number of trading houses where purchases are made NA NA
from
c. Purchases from top 10 trading houses as% of total pur- NA NA
chases from trading houses
NA NA
Concentration of Sales a. Sales to dealers / distributors as % of total sales

NA NA
b. Number of dealers / distributors to whom sales are made

c. Sales to top 10 dealers / distributors as % of total sales to NA NA

dealers / distributors
a. Purchases (Purchases with related parties / Total Pur- NA NA
Share of RPTs in
chases)
NA NA
b. Sales (Sales to related parties / Total Sales)

c. Loans & advances (Loans & advances given to related

0.006% 0.010%
parties/Total loans & advances)
d. Investments( Investments in related parties/Total Invest-
0.72% 0.24%
ments made)

Leadership Indicators
1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year:
Topics / principles
Total number of awareness %age of value chain partners covered (by value of business done with
covered under the
programmes held such partners) under the awareness programmes
training

NA

2. Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/
No) If yes, provide details of the same.
Yes, the Bank has in place a process to monitor / manage conflict of interests involving members of the Board. As part
of the process, the Bank obtains declaration on an annual basis from the Board of Directors. Besides the Bank has
formulated and adopted working Code of Conduct for Board of Directors & Senior Management of the Bank. The Code
interalia prescribes the circumstances which may likely lead to conflict of interest.

48
 PRINCIPLE 2 Businesses should provide goods and services in a manner that is sustainable and safe

Essential Indicators

1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and
social impacts of product and processes to total R&D and capex investments made by the entity, respectively.
Previous
Details of improvements in
Current Year Financial Year
environmental and social impacts
Financial
R&D
Not Applicable
Capex

2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No) No
b. If yes, what percentage of inputs were sourced sustainably? Not Applicable

3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for
(a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.
The Bank is providing financial services and is not engaged in any manufacturing activity. The Bank follows sustainable
waste management practices and procedures for the effective disposal of generated waste.

4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether the waste
collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If
not, provide steps taken to address the same. N.A

Leadership Indicators

1. Has the entity conducted Life Cycle Perspective/Assessments (LCA) for any of its products (for manufacturing industry)
or for its services (for service industry)? If yes, provide details in the following format?
NIC Code Name of the %of total Boundary for which the Whether conducted Results communicated in public
Product/ Turnover Life Cycle Perspective/ by independent domain (Yes/No) If yes, provide
Service contributed Assessment as conducted external agency the web-link.
(Yes/No)

Not Applicable

2. If there are any significant social or environmental concerns and/or risks arising from production or disposal of your
products / services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other means, briefly
describe the same along-with action taken to mitigate the same.
Name of Product / Service Description of the risk / concern Action Taken
Not Applicable

3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing
industry) or providing services (for service industry).
Indicate input material Recycled or re-used input material to total material
FY 2023-24 FY 2022-23
Current Financial Year Previous Financial Year
Not Applicable, the Bank has deployed proper digital solutions and adopted paperless solutions wherever possible.

4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and
safely disposed, as per the following format:
FY 2023-24 FY 2022-23
Current Financial Year Previous Financial Year
Safely Safely
Re-Used Recycled Re-Used Recycled
Disposed Disposed
Plastics (including
packaging)
Not applicable. However, wastes generated out of routine operations are disposed through Local Municipal
E-waste bodies. Battery Waste, E-waste is returned to the supplier under buy back scheme. No hazardous waste
Hazardous waste generation due to the nature of activity.

Other waste

49
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
Reclaimed products and their packaging materials as % of total products
Indicate product category
sold in respective category
Not Applicable

PRINCIPLE 3 Businesses should respect and promote the well-being of all employees,
including those in their value chains

Essential Indicators

1. a. Details of measures for the well-being of employees:

Category % of employees covered by
Paternity
Total Health insurance Accident insurance Maternity benefits Day Care facilities
Benefits
(A)
Number % Number % Number % Number % Number %
(B) (B/A) (C) (C/A) (D) (D/A) (E) (E/A) (F) (F/A)
Permanent employees
Male 9260 * - 9260** 100 NA NA 9260 100 Nil Nil
Female 3155 * - 3155** 100 3155 100 NA NA Nil Nil
Total 12415 - - 12415 100 3155 100 9260 100 Nil Nil
Other than Permanent employees
Male 368 Nil Nil 368** 100 Nil Nil Nil Nil Nil Nil
Female 66 Nil Nil 66** 100 Nil Nil Nil Nil Nil Nil
Total 434 Nil Nil 434 100 Nil Nil Nil Nil Nil Nil

*Active employees are covered under Medical Reimbursement Scheme of the Bank in line with IBA norms.
** Active employees are covered under Group Accidental Insurance Cover (in case of accidental death).

b. Details of measures for the well-being of workers: Not Applicable

c. Spending on measures towards well-being of employees and workers (including permanent and other than
permanent) in the following format–
FY 2023-24 FY 2022-23
Current Financial Year Previous Financial Year
Cost incurred on wellbeing measures as a % of total revenue of
0.54% 0.59%
the company

2. Details of retirement benefits, for Current FY and Previous Financial Year.

FY 2023-24 FY 2022-23
Current Financial Year Previous Financial Year

Deducted and
Benefits No. of employees No. of workers Deducted and No. of employees No. of workers
deposited
covered as covered as deposited with covered as covered as
with the
a % of total a % of total the authority a % of total a % of total
authority
employees workers (Y/N/N.A.) employees workers
(Y/N/N.A.)

PF 35.6 NA Y 37 NA Y
Gratuity 100 NA Y 100 NA Y
ESI NA NA NA NA NA NA
Others – please
NA NA NA NA NA NA
specify

3. Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements
of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this
regard.
As per the regulatory requirements, branch/office premises are designed and provided for easy access to differently
abled employees. Ramps are facilitated wherever possible in the premises of Bank branches and ATMs.

50
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a
web-link to the policy.
Equal opportunity Policy as per the Rights of Persons with Disabilities Act, 2016 is not in place. However, the Bank
ensures that employees with disabilities are provided equal opportunity within the organization.

5. Return to work and Retention rates of permanent employees and workers that took parental leave.
Permanent employees Permanent workers
Gender Return to work rate Retention rate Return to work rate Retention rate
Male 100% 100% Not Applicable Not Applicable
Female 100% 100% Not Applicable Not Applicable

Total 100% 100% Not Applicable Not Applicable

6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker?
If yes, give details of the mechanism in brief.
Yes/No
(If Yes, then give details of the mechanism in brief)

Permanent Workers Not Applicable

Other than Permanent Workers Not Applicable
Permanent Employees
Yes, a dedicated Grievance Redressal portal has been implemented within the Banks
Other than Permanent Employees HRMS solution wherein all employees can lodge their grievances.

7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:
FY 2023-24 FY 2022-23
(Current Financial Year) (Previous Financial Year)
Total
Category Total employees No. of employees / workers No. of employees / workers
employees /
/ workers in in respective category, who % in respective category, who %
workers
respective are part of association(s) or (B/A) are part of association(s) (D/C)
In respective
category (A) Union (B) or Union (D)
category (C)
Total
Permanent 12415 12167 98.00 12786 12526 97.97
Employees
- Male 9260 9050 97.73 9561 9337 97.66
- Female 3155 3117 98.80 3225 3189 98.88
Total
Permanent
Workers
Not Applicable
- Male
- Female

8. Details of training given to employees and workers:

FY 2023-24 FY 2022-23
Current Financial Year Previous Financial Year
Category Total On Health and safety On Skill On Health and On Skill
measures up-gradation Total safety measures up-gradation
(A)
(D)
No.(B) %(B/A) No.(C) %C/A) No.(E) %(E/D) No.(F) %(F/D)
Employees
Male 9260 0 0 4557 49 9561 0 0 2941 31
Female 3155 0 0 1665 53 3225 0 0 1093 34
Total 12415 0 0 10348 12786 0 0 4034
Workers
Male
Female
Not Applicable
Total

51
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

9. Details of performance and career development reviews of employees and worker:

FY 2023-24 FY 2022-23
Category (Current Financial Year) (Previous Financial Year)
Total (A) No.(B) %(B/A) Total (C) No.(D) %(D/C)
Employees
Male 9260 9260 100 9561 9561 100
Female 3155 3155 100 3225 3225 100
Total 12415 12786 12786
Workers
Male
Female
Not Applicable
Total

10. Health and safety management system:

a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If
yes, the coverage such system? Yes
The Bank’s Premises have been provided adequate infrastructure to ensure mitigation of risks associated with
Electrical/Fire safety. We have a dedicated doctor at our Corporate Office and Zonal Office –Jammu who are on
site for 3 hours daily on three working days from Monday to Friday. All employees and their dependent families are
eligible for hospitalization coverage. The Bank also has enhanced the employee benefits for protection of health and
well-being such as Group term Life insurance and Group term accidental Insurance.

b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by
the entity?
The Bank takes into consideration the standard work-related hazards associated with electrical/fire and other related
incidents. The Bank has put in place an effective security measures to deter miscreants and protect employees/
workplaces. Some of the risk mitigation measures in place include–
 Physical security for access control measures at Branches/offices.
 CCTV monitoring
 Adequate lighting arrangements
 Fire-fighting arrangements

c. Whether you have processes for workers to report the work related hazards and to remove themselves from such
risks. (Y/N)
Not Applicable

d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services? (Yes/ No)
Yes

11. Details of safety related incidents, in the following format:

FY 2023-24 FY2022-23
Safety Incident/Number Category*
Current Financial Year Previous Financial Year

Lost Time Injury Frequency Rate (LTIFR) (per one million- Employees Nil Nil
person hours worked)
Workers Not Applicable Not Applicable
Employees Nil Nil
Total recordable work-related injuries
Workers Not Applicable Not Applicable
Employees Nil Nil
No. of fatalities
Workers Not Applicable Not Applicable

High consequence work-related injury or ill-health (excluding Employees Nil Nil

fatalities) Workers Not Applicable Not Applicable

*including in the contract workforce

12. Describe the measures taken by the entity to ensure a safe and healthy work place.
The Bank ensures the safety and health of its employees by ensuring that the workplace environment is equipped with
necessary infrastructure. Especially in wake of the recent Pandemic, the Bank ensured that Employees resort to COVID
related standard operating Procedures for to ensure that there is no spread of COVID or other pathogens amongst each
other in the office.
The Bank also takes into consideration the standard Work related hazards associated with Electrical/Fire related incidents,
and necessary infrastructure has been deployed at Offices/Branches to mitigate the associated risks. In order to provide

52
 safety to the Female employees of the Bank, an internal committee has been formulated by the he Bank in accordance
with the Sexual Harassment of Women at workplace (Prevention, prohibition and Redressal) Act, 2013.

13. Number of Complaints on the following made by employees and workers:

FY 2023-24 FY 2022-23
(Current Financial Year) (Previous Financial Year)

Filed during the Pending resolution Filed during Pending resolution

Remarks Remarks
year at the end of year the year at the end of year

Working Conditions Nil NA Nil NA

Health & Safety Nil NA Nil NA

14. Assessments for the year:

% of your plants and offices that were assessed (by entity or statutory
authorities or third parties)
Health and safety practices Nil
Working Conditions Nil

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant
risks / concerns arising from assessments of health & safety practices and working conditions.
Not Applicable

PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders
Essential Indicators

1. Describe the processes for identifying key stakeholder groups of the entity.
The key stakeholders are promoters (Govt. of Union territories of J&K & Ladakh) shareholders, investors, employees,
customers and public at large

2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.
Stakeholder Whether identified Channels of communication Frequency of Purpose and scope of
Group as Vulnerable & (Email, SMS, Newspaper, engagement engagement including key
Marginalized Pamphlets, Advertisement, (Annually/ Half topics and concerns raised
Group (Yes/No) Community Meetings, yearly/ during such
Notice Board, Quarterly / others – engagement
Website), Other please specify)
Connect with customers Ongoing Following its basic analysis,
and general public maintained feedback received through print
through regular media electronic and digital/ social
Customers & communications including media platforms is forwarded
No press releases, to relevant departments of
General Public
advertisements, public notices the bank to ensure its proper
etc. through all available registration and resolution.
platforms.

Email, SMS, Banks Intranet, Fortnightly/ Review/official communication /

Employees No Internal Meetings Monthly/ Half yearly/ seeking employee feedback
Annually
E-mail, website, newspaper Ongoing To provide the information
releases, Analyst meets and about the financial
Investors/
conference calls, Annual health of the Bank and
Shareholders/ No
General Meeting, publications, to comply the regulatory
Analyst
letters, and requirements
social media,
Meetings, discussions, Ongoing To appraise about the
Institutions & Newspaper and website customized products and
Industry Bodies
services
Letters, Emails, website, Ongoing In case of Bank the Govt.s of
publication press release UTs of J&K Ladakh are the
promoters having Majority
Governments & shareholding as such they are
Regulatory No required to
Authorities be updated and informed.
The regulatory authorities
are informed to achieve the
required compliances

53
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Email, Newspaper, Ongoing Support CSR projects, Financial

Communities & Advertisements, inclusion and other relevant
Civil No publications, website and
Society/ NGOs matters affecting the public at
social media, large.
Website, advertisements, Ongoing Vendor assessment and review,
Suppliers No email, letters service and business related
issues.

Leadership Indicators
1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social
topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
Engaging with stakeholders is a primary focus for the Bank in terms of communicating its performance and strategy.
One key stakeholder that the Bank actively engages with is its customers. The Bank utilizes various channels such
as its mobile banking platform, website, and regular interactions through branches and bank executives to establish
effective communication with customers. The objective is to keep customers informed about the Bank’s key deliverables
and performance. The interactions with customers are recorded by the Customer Care Division and presented to the
Customer Service Committee, which is an identified committee of the Board.

2. Whether stakeholder consultation is used to support the identification and management of environmental, and social
topics (Yes / No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were
incorporated into policies and activities of the entity.

The Board recognizes the importance of customer feedback and takes it seriously in its decision-making processes.
By involving the Customer Service Committee, the Board ensures that customer perspectives and concerns are given
due consideration when formulating strategies and making important decisions. This approach helps the Bank align its
actions with the expectations and needs of its customers, fostering a stronger relationship and better service delivery.

Overall, the Bank places high value on stakeholder engagement, particularly with customers, and has established
a structured process to capture their feedback and incorporate it into the decision-making at the Board level. This
commitment reflects the Bank’s dedication to maintaining open and transparent communication with stakeholders and
delivering on their expectations.

3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalized
stakeholder groups.
The Bank through Corporate Governance and disclosures is committed to being transparent to its stakeholders. The
Bank on regular basis engages with its stakeholders particularly customers and responsibly deliver on various issues
and concerns about the bank and its future endeavors.

The Bank engages with socially vulnerable / marginalized stakeholders through bank officials at branches, CSR
initiatives, employment melas, contact centre and through digital and print modes.

The actions taken for meeting the following needs and services:-
• Deliver 24x7 service
• Robust digital banking facilities viz. AEPS, etc.
• IVR services through vernacular languages
• Hassle-free customer services delivery

Besides, as a responsible corporate citizen, J&K Bank envisions to integrate its strategic intent and business goals
with the needs of the society in order to achieve an inclusive, sustainable and harmonious ecosystem. This represents
the core principle and forms the basis of the Bank’s CSR policy.

54
 PRINCIPLE 5 Businesses should respect and promote human rights
Essential Indicators
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the
following format:
FY 2023-24 FY 2022-23
Current Financial Year Previous Financial Year

Category No. of No. of

Total (A) employees / employees
%(B/A) Total (C) % (D / C)
workers / workers
covered (B) covered (D)
Employees
Permanent 12415 1862 15 12786 1023 8

Other than permanent -- -- -- -- -- --

Total Employees 12415 1862 15 12786 1023 8

Workers
Permanent
Other than
permanent
Not Applicable
Total Workers

2. Details of minimum wages paid to employees and workers, in the following format:

FY 2023-24 FY 2022-23
Current Financial Year Previous Financial Year

Equal to Minimum More than Equal to More than

Category Total Wage Minimum Wage Total Minimum Wage Minimum Wage
(A)
(D)
No. % No. No. % No.
% (C / A) %(F/D)
(B) (B /A) (C) (E) (E / D) (F)
Employees
Permanent 12415 -- -- 12415 100 12786 -- -- 12786 100
Male 9260 -- -- 9260 100 9561 -- -- 9561 100
Female 3155 -- -- 3155 100 3225 -- -- 3225 100

Other than
434 -- -- 434 100 437 -- -- -- 100
Permanent

Male 368 -- -- 368 100 370 -- -- -- 100

Female 66 -- -- 66 100 67 -- -- -- 100
Workers
Permanent
Male
Female
Other than Not Applicable
Permanent
Male
Female

55
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

3. Details of remuneration/salary/wages
a. Median Remuneration/ Wages:
Male Female
Median remuneration/ Median remuneration/
Number salary/ wages of Number salary/ wages of
respective category respective category
Board of Directors (BoD)
Key Managerial Personnel
Please refer to Annexure 3 of Directors Report Section of this Annual Report.
Employees other than BoD and KMP
Workers Not Applicable

b. Gross wages paid to females as % of total wages paid by the entity in the following format:
FY 2023-24 FY 2022-23
Current Financial Year Previous Financial Year
Gross wages paid to females as % of total wages 23.09 22.50

4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or
contributed to by the business? (Yes/No)
Yes, the Head of Human Resources who is responsible for the human resources function and the Industrial Relations
Officer (IRO) oversee and address any issue arising from any human rights impact or issues caused or contributed to
by the business.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
The Bank has deployed an “Employee grievance” portal on the Bank’s Intranet for employees to record and register
their grievance.
6. Number of Complaints on the following made by employees and workers:

FY2023-24 FY 2022-23
Current Financial Year Previous Financial Year
Filed during Pending resolution Filed during Pending resolution
Remarks Remarks
the year at the end of year the year at the end of year
Sexual Harassment 2 0 -- 1 0 --
Discrimination at
0 0 -- 0 0 --
workplace
Child Labour 0 0 -- 0 0 --
Forced Labour/
Involuntary 0 0 -- 0 0 --
Labour
Wages 0 0 -- 0 0 --
Other human rights
0 0 -- 0 0 --
related issues

7. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013, in the following format:
FY 2023-24 FY 2022-23
Current Financial Previous
Year Financial Year

Total Complaints reported under Sexual Harassment on of Women at Workplace

02 01
(Prevention, Prohibition and Redressal) Act, 2013 (POSH)

Complaints on POSH as a % of female employees / workers 0.06 0.03

Complaints on POSH upheld 00 00

8. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
Cases related to prevention of sexual harassment at work place are treated with utmost sensitivity and confidentially
in line with the guidelines of the Sexual Harassment of Women at Work Place (prevention, prohibition and redressal)
Act 2013. Further, the Bank provides protection against discrimination to employees who makes disclosure or raises a
concern under the whistle blower policy.
The Company strictly prohibits any attempt of retaliation by anyone against any employee who raises a concern.
Human rights requirements form a part of the Bank’s business agreements and contracts as and where relevant.

56
 9. Do human rights requirements form part of your business agreements and contracts? (Yes/No) Yes
10. Assessments for the year:
% of your plants and offices that were assessed (by entity or statutory
authorities or third parties)

Child labour
Forced/involuntary labour
Sexual harassment Nil
Discrimination at workplace
Wages
Others – please specify

11. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 10 above.
Not Applicable

PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment
Essential Indicators

1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:

FY 2023-24 FY 2022-23
Parameter (Current (Previous
Financial Year) Financial Year)
From renewable sources
Total electricity consumption (A) -- --
Total fuel consumption (B) -- --
Energy consumption through other sources (C) 0.0052x10 joules14
0.0052x1014 joules

Total energy consumed from renewable sources (A+B+C) 0.0052x1014 joules 0.0052x1014 joules

From non-renewable sources

Total electricity consumption (D) 0.7969x1014 joules 1.0046x1014 joules

Total fuel consumption (E) 0.5433x1014 joules 0.3387x1014 joules

Energy consumption through other sources (F) -- --
Total energy consumed from non-renewable sources (D+E+F) 1.3402x10 joules14
1.3433x1014 joules
Total energy consumed
1.3454x1014 joules 1.3485x1014 joules
(A+B+C+D+E+F)
Energy intensity per rupee of turnover (Total energy consumed / Revenue from
1121 joules 1333 joules
operations)

Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)
(Total energy consumed/Revenue from operations adjusted for PPP)

Energy intensity in terms of physical output

Energy intensity (optional) – the relevant metric may be selected by the entity

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency. No

2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and
Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have
been achieved. In case targets have not been achieved, provide the remedial action taken, if any. Not Applicable

57
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

3. Provide details of the following disclosures related to water, in the following format:
FY 2023-24 FY 2022-23
Parameter
(Current Financial Year) (Previous Financial Year)
Water withdrawal by source (in kilolitres)
(i) Surface water
(ii) Groundwater
(iii) Third party water
(iv) Seawater / desalinated water
(v) Others
Total volume of water withdrawal
(in kilolitres) (i + ii + iii + iv + v)
Total volume of water consumption Not Applicable
(in kilolitres)

Water intensity per rupee of turnover

(Total water consumption / Revenue from operations)

Water intensity per rupee of turnover adjusted for Purchasing Power Parity
(PPP) (Total water consumption / Revenue from operations adjusted for
PPP)

Water intensity in terms of physical output

Water intensity (optional) – the relevant metric may be selected by the entity

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency. No

4. Provide the following details related to water discharged:

FY 2023-24 FY 2022-23
Parameter (Current (Previous
Financial Year) Financial Year)

Water discharge by destination and level of treatment (in kilolitres)

(i) To Surface water
- No treatment
- With treatment – please specify level of treatment
(ii) To Groundwater
- No treatment

- With treatment – please specify level of treatment Not Applicable

(iii) To Seawater
- No treatment
- With treatment – please specify level of treatment
(iv) Sent to third-parties
- No treatment

- With treatment – please specify level of treatment

(v) Others
- No treatment

- With treatment – please specify level of treatment

Total water discharged (in kilolitres)

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency. No

58
5. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation. No

6. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:

FY 2023-24 FY 2022-23
Parameter Please specify unit
(Current Financial Year) (Previous Financial Year)

NOx
SOx
Particulate matter (PM)
Persistent organic pollutants (POP)
Not Applicable
Volatile organic compounds (VOC) (Being a banking company, the activities/ operations
carried out does not lead to emission of effluent gases)
Hazardous air pollutants (HAP)
Others – please specify

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency. No

7. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:
FY 2023-24 FY 2022-23
Parameter Unit (Current (Previous
Financial Year) Financial Year)

Metric tonnes
Total Scope 1 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs,
of CO2
PFCs, SF6, NF3, if available)
equivalent

Metric tonnes
Total Scope 2 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs,
of CO2
PFCs, SF6, NF3, if available)
equivalent

Total Scope 1 and Scope 2 emission intensity per rupee of turnover

(Total Scope 1 and Scope 2 GHG emissions / Revenue from operations) Not Applicable

(Being a banking company, the

Total Scope 1 and Scope 2 emission intensity per rupee of turnover activities/ operations carried out does
adjusted for Purchasing Power Parity (PPP) (Total Scope 1 and Scope 2 not lead to emission of effluent gases)
GHG emissions / Revenue from operations adjusted for PPP)

Total Scope 1 and Scope 2 emission intensity in terms of physical output

Total Scope 1 and Scope 2 emission intensity (optional) – the relevant

metric may be selected by the entity

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N)
If yes, name of the external agency. N.A

8. Does the entity have any project related to reducing Green House Gas emission? If yes, then provide details. N.A

59
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

9. Provide details related to waste management by the entity, in the following format:
Parameter FY 2023-24 FY 2022-23
(Current Financial (Previous Financial
Year) Year)
Total Waste generated (in metric tonnes)
Plastic waste (A)
E-waste (B)
Bio-medical waste (C)
Not Applicable
Construction and demolition waste (D)

Battery waste (E)

Radioactive waste (F)
Other Hazardous waste. Please specify, if any. (G)
Other Non-hazardous waste generated (H). Please specify, if any. (Break-up by
composition i.e. by materials relevant to the sector)

Total (A+B + C + D + E + F + G +H)

Waste intensity per rupee of turnover (Total waste generated/Revenue from

operations)

Waste intensity per rupee of turnover adjusted for Purchasing Power

Parity (PPP) (Total waste generated / Revenue from operations adjusted for PPP)
Waste intensity in terms of physical output

Waste intensity (optional) – the relevant metric may be selected by the entity

For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric
tonnes)
Category of waste
(i) Recycled
Not Applicable
(ii) Re-used
(iii) Other recovery operations
Total
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)

Category of waste
(i) Incineration
(ii) Landfilling Not Applicable

(iii) Other disposal operations

Total

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency. No

10. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your
company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted
to manage such wastes. Not Applicable

11. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries,
biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental
approvals / clearances are required, please specify details in the following format:

Type of Whether the conditions of environmental approval / clearance are being

Location of operations/
S. No. operations complied with? (Y/N) If no, the reasons thereof and corrective action
offices
taken, if any.

Not Applicable

60
12. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the
current financial year:

EIA Whether conducted by

Name and brief details Results communicated in Relevant
Notification Date independent external agency
of project public domain (Yes / No) Web link
No. (Yes / No)

Not Applicable

13. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water
(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and
rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following format:

Specify the law/ Provide Any fines / penalties / action

regulation/guidelines details of the taken by regulatory agencies such Corrective Action
S. No.
which was not complied non- as pollution control boards or by taken, if any
with compliance courts

Not Applicable

Leadership Indicators

1. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):

For each facility / plant located in areas of water stress, provide the following information:
(i) Name of the area
(ii) Nature of operations
(iii) Water withdrawal, consumption and discharge in the following format:
FY 2023-24 FY 2022-23
Parameter (Current Financial (Previous Financial
Year) Year)
Water withdrawal by source (in kilolitres)
(i) Surface water
(ii) Groundwater Not Applicable
(iii) Third party water
(iv) Seawater / desalinated water
(v) Others
Total volume of water withdrawal (in kilolitres)
Total volume of water consumption
(in kilolitres)
Water intensity per rupee of turnover
(Water consumed / turnover)
Water intensity (optional) – the relevant metric may be selected by the entity
Water discharge by destination and level of treatment (in kilolitres)
(i) Into Surface water
- No treatment
- With treatment – please specify level of treatment
(ii) Into Groundwater
- No treatment Not Applicable
- With treatment – please specify level of treatment
(iii) Into Seawater
- No treatment
- With treatment – please specify level of treatment
(iv) Sent to third-parties
- No treatment
- With treatment – please specify level of treatment
(v) Others
- No treatment
- With treatment – please specify level of treatment
Total water discharged (in kilolitres)

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency. N.A

61
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

2. Please provide details of total Scope 3 emissions & its intensity, in the following format:
FY 2023-24 FY 2022-23
Parameter Unit (Current Financial (Previous Financial
Year) Year)

Total Scope 3 emissions

Metric tonnes of CO2
(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6,
equivalent
NF3, if available)

Total Scope 3 emissions per rupee of turnover

Not Applicable
Total Scope 3 emission intensity (optional) – the relevant
metric may be selected by the entity

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N)
If yes, name of the external agency. No

3. With respect to the ecologically sensitive areas reported at Question 11 of Essential Indicators above, provide details of
significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and remediation
activities. Not Applicable

4. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource
efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide details of the same
as well as outcome of such initiatives, as per the following format:
Sr. No Initiative undertaken Details of the initiative (Web-link, if any, may be Outcome of the initiative
provided along-with summary)

Not Applicable

5. Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
The Bank is committed to ensuring that it is able to operate on an ongoing basis and will always endeavor to continue
business on behalf of customers with minimal interruption to services in the event of business disruption and ensure
continual improvement by adopting best practices/ changes in Bank’s BCMS framework.
For a robust BCMS (Business Continuity Management System) and to enhance resilience to disruptions, protect key
assets, maintain customer service and preserve reputation and competitive advantage, Bank has aligned its BCP with
ISO 22301 Standards.

6. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation
or adaptation measures have been taken by the entity in this regard.
Not Applicable

7. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental
impacts.
Not Applicable

62
 PRINCIPLE 7 Businesses, when engaging in influencing public and regulatory policy,
should do so in a manner that is responsible and transparent

Essential Indicators
1. a. Number of affiliations with trade and industry chambers/ associations.
b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body)
the entity is a member of/ affiliated to.
S. Name of the trade and industry chambers/ associations Reach of trade and industry chambers/
No. associations (State/National).

1 Fixed Income Money Market & Derivatives Association of India (FIMMDA). National
2 Foreign Exchange Dealers Association of India (FEDAI) National

3 Indian Banks Association (IBA) National

4 KCCI (Kashmir Chamber of Commerce & Industry) State
5 Federation of Indian Chambers of Commerce & Industry (FICCI) National

2. Provide details of corrective action taken or underway on any issues related to anticompetitive conduct by the entity,
based on adverse orders from regulatory authorities.
Name of authority Brief of the case Corrective action taken
Not Applicable

Leadership Indicators
3. Details of public policy positions advocated by the entity:
S. No. Public policy Method resorted for Whether Frequency of Review by Web
advocated such advocacy information Board Link, if available
available in public (Annually/ Half yearly/
domain? (Yes/No) Quarterly/
Others – please
specify)
The Bank does not participate in policy advocacy but is involved in consultation/ discussion forums with the government and
other bodies in the banking industries.

PRINCIPLE 8 Businesses should promote inclusive growth and equitable development

Essential Indicators
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the
current financial year.
No such project undertaken.
2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken
by your entity, in the following format:
No such project undertaken.
3. Describe the mechanisms to receive and redress grievances of the community.

For facilitating hassle free escalation of grievances & service requests, Bank has notified various communication
channels in the public domain which include on-line grievance portal on website.

Customers are provided the facility of registering their service request through mPay and eBanking channels
for hassle free escalation of grievances & Service Requests. The customers receive acknowledgement of their
complaint/Service Request instantly with unique ID for future reference and tracking.

The customer complaints/Service Requests are processed and disposed-off through the Grievance Portal within
defined TAT and response/ reply is sent to the complainant/ customer through Portal/ Email/SMS. Root cause
analysis of complaints is performed so as to plug the gaps, if any, and avoid recurrence of complaints on similar
grounds.

The customer complaints which are partially or wholly rejected by the Bank are auto-escalated to Bank’s Internal
Ombudsman for opinion before conveying final decision to the customer.

4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:
Not Applicable

63
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

5. Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers
employed on a permanent or non-permanent / on contract basis) in the following locations, as % of total wage
cost
FY 2023-24 FY 2022-23
Location
Current Financial Year Previous Financial Year
Rural 35.60% 34.57%
Semi-urban 16.08% 15.88%
Urban 26.92% 27.84%
Metropolitan 21.40% 21.71%

(Note: excluding provisioning cost on account of superannuation benefits and wage revision)

Leadership Indicators
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments
(Reference: Question 1 of Essential Indicators above):
Not Applicable
2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts
as identified by government bodies:
S. No. State Aspirational District Amount spent (In INR)
01 J&K Kupwara 2745300
02 J&K Baramulla 245300

3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers
comprising marginalized /vulnerable groups? (Yes/No) No
(b) From which marginalized /vulnerable groups do you procure? N.A
(c) What percentage of total procurement (by value) does it constitute? N.A

4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in
the current financial year), based on traditional knowledge:

Intellectual Property based on traditional Benefit

Owned/
shared
S. No. knowledge Acquired Basis of calculating benefit share
(Yes /
(Yes/No)
No)
Not Applicable

5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related
disputes wherein usage of traditional knowledge is involved.

Name of the authority Brief of the Case Corrective action taken

Not Applicable

6. Details of beneficiaries of CSR Projects:

No. of persons ben-
% of beneficiaries from vulnerable and margin-
S. No CSR Project efitted from the CSR
alised groups
Projects
50%
Contribution towards Upgrading facilities 346000 (beneficia-
of Sainik Bhawan Jammu & Srinagar for ries include ex-ser-
1 (conservative estimates based on the data avail-
the welfare of war veterans and depen- vicemen and their
able with regard to vulnerable sections of the
dents of Army/Navy/Air force Martyrs dependents)
society in J&K)
Providing equipment to Life Help Centre
2 for Child Care – a school for specially abled 35 100%
children
80%
(as the majority of the awareness camps were
Project on Menstrual Hygiene – Campaign
conducted in govt. schools located in rural areas
3 for preventive healthcare measures for 50000
wherein majority of the students enrolled are
Women.
usually from economically/weaker and under-
privileged sections of the society)

64
 No. of persons ben-
% of beneficiaries from vulnerable and margin-
S. No CSR Project efitted from the CSR
alised groups
Projects
Over 30000 Annually
Contribution towards establishment of
(Average number
4 Shina Cultural Centre at Dawar Gurez by Not quantifiable
of tourists visiting
Indian Army
Gurez per year)
Contribution towards upgrading Over 5000 annually
50% (conservative estimates based on the data
Infrastructure of Rural Self-Employment (minimum number
5 available with regard to vulnerable sections of the
Training Institutes (RSETIs) run by J&K of trainees in the
society in J&K)
Bank RSETIs per year)
6 Financial Literacy Campaign 5000000 Not quantifiable

Over 3000 annually

Contribution towards establishment of (number of children 95% (as over 95% of Ladakh UT’s population is
7
library at Zanaskar. in the age group of 11 categorized as ST)
to 25)

150
(number of trainees 50% (conservative estimates based
Entrepreneurship Development Project
from rural off-beat on the data available with regard to
8 in collaboration with SIDBI - Focussed on
tourist destinations vulnerable sections of the society in J&K)
Homestay training programme
trained during the
programme)

30% (though the trainings were imparted to

Entrepreneurship Development Programme
300 unemployed youth, an estimated 30% of the
9 in collaboration with NIESBUD, Ministry of
(trainees from J&K trainee group belonged to poor economic
Skill Development, GOI
UT) background)
Nasha Mukta Campaign aimed at achieving
10 128112 100%
drug and tobacco free society
Over 10000 annually 90% (govt.-run hospitals are mostly frequented
Providing One Critical Care Ambulance to
(vis-à-vis the number by Economically weaker sections and people
11 SKIMS, Srinagar and Two Ambulances to
of patients who need belonging to other marginalized and vulnerable
GMC Jammu
ambulance services) sections of society)

90%- (govt.-run hospitals are mostly frequented

Providing medical equipment to SKIMS, by Economically weaker sections and people
12 Over 10000 annually
Srinagar and GMC Jammu belonging to other marginalized and vulnerable
sections of society)

Over 13000 annually

Providing E-Vehicles to Central University 50% (being the percentage of specially-abled
(being number of
13 Jammu, BGSBU Rajouri, University of students and students from other marginalized/
students enrolled in
Jammu and NIT Srinagar vulnerable sections of the society)
these institutes)
150
Entrepreneurship Development Programme (number of trainees
95% (as over 95% of Ladakh UT’s population is
14 in collaboration with NIESBUD, Ministry of trained in the
categorized as ST)
Skill Development, GOI programme in
Ladakh UT)
Hearing aids and speech therapy Program
100% (project was focused on people from poor
15 to provide hearing assessment, speech 2500
economic background)
therapy and hearing aids to poor and needy
5000 +
(Minimum budding
50% (conservative estimates based on the data
Contribution to JKBRSETI Society for entrepreneurs
16 available with regard to vulnerable sections of the
Construction of RSETI Buildings receiving training
society in J&K)
from RSETIs per
year)
5000 +
(As the facility will
remotely connect
students from
50% (conservative estimates based on the data
Contribution towards establishing smart affiliated colleges,
17 available with regard to vulnerable sections of the
classes in University of Kashmir. multiplier effect
society in J&K)
is expected to
take number of
beneficiaries even
more)

65
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

No. of persons ben-

% of beneficiaries from vulnerable and margin-
S. No CSR Project efitted from the CSR
alised groups
Projects
Contribution towards augmentation of infra
18 at special schools, orphanages & old age 500 100%
homes run by Dept. of Social Welfare J&K
1000
(Conservative 50% (conservative estimates based on the data
Contribution towards establishing Libraries
19 number of 100 people available with regard to vulnerable sections of the
at 10 locations in Kashmir
to visit each library society in J&K)
regularly)
Over 300
Contribution towards Establishing Smart 50% (conservative estimates based on the data
(Based on student
20 classrooms and computer lab at SMVD available with regard to vulnerable sections of the
strength of the two
Gurukul and SMVD College of Nursing society in J&K)
educational centers)
1000
Funding Agriculture Production (project in its infancy,
Department’s “Kisan Sathi Chatbot” (an AI future number
21 Not Quantifiable
enabled virtual assistant for farmers) for of beneficiaries
one year expected to be in
tens of thousands)

60
Contribution towards construction of Girls
(being the total
22 Hostel by Sewa Bharti at Gandoh Bhalessa, 100%
intake capacity of the
Doda
hostel)

Not quantifiable
(Project to have
larger impact on the
ecological balance
Contribution towards construction of
of the highly eco-
23 mechanized Sewage Treatment Plant (STP) Not quantifiable
sensitive geography
at District Hospital Bandipora
of the district given
the project site’s
proximity to famed
Wullar Lake)
2000000
(Population of
Not quantifiable
Contribution towards development of Srinagar and Jammu
(Environment related CSR activities serve the
Modern Bus Stops/ Passenger Shed for cities and some
24 larger purpose of environmental sustainability
Srinagar & Jammu Smart City Electric Bus percentage of rural
by reducing carbon footprint and decreasing
Projects population that is
pollution levels).
connected to the
larger E-bus project)

Over 150000 90%- (govt.-run hospitals are mostly frequented

Providing Patient Transport Trolleys and
(calculated as per by Economically weaker sections and people
25 Wheelchairs to the Govt./ Semi Govt.
one beneficiary of belonging to other marginalized and vulnerable
Hospitals of J&K and Ladakh
the item per day) sections of society)

Over 15000
(students, staff
Providing ambulance to health centre of and the people
26 Not quantifiable
SKUAST-K from University’s
immediate catchment
area)

100
80% (majority of the beneficiaries belonged to
Funding livelihood generation project (number of
27 the remote rural & marginalized community of
through walnut plantation in Kishtawar beneficiaries of the
kishtawar)
project)

Not quantifiable
(Eco-friendly
28 Providing dustbins to DC office srinagar Not quantifiable
orientation of the
project)

66
 No. of persons ben-
% of beneficiaries from vulnerable and margin-
S. No CSR Project efitted from the CSR
alised groups
Projects

500
Providing Medical Equipment to Maha Bodhi 95% (as over 95% of the Ladakh UT’s population
29 (1% of the hospital’s
Karuna Chartiable Hospital is categorized as ST)
average footfall of
over 50000)

40
contribution towards sports academies (Number of trainees
30 Not quantifiable
(football academies of Bank) in the academies
every year)

Not quantifiable
(Community
development
oriented project
Contribution towards Aspirational District
31 that will primarily Not quantifiable
Kupwara for construction of Fish Sale Outlet
contribute to growth
and development
of regional sub-
economy)

75
Contribution towards Humanity Welfare (being 50% of the
32 Organization for purchase of One School number of special 100%
bus for specially-abled students children enrolled in
the school)

740
50% (conservative estimates based on the data
Contribution to Swami Vivekananda Medical (being 1% of the
33 available with regard to vulnerable sections of the
Mission Hospital for medical equipment hospital’s average
society in J&K)
annual footfall)

100
(being 20% of the
students currently
Contribution to Army Goodwill School Harka 95% (as over 95% of the Ladakh UT’s population
34 enrolled in the
Bahadur for one School Bus is categorized as ST)
school. Bus to make
multiple rounds to
ferry the students)

1083
Contribution to Mool Sustainability for (being the number
35 community development program of ST of people who 100%
Village benefitted from the
project)
Support to District Court Jammu for
36 Not quantifiable Not quantifiable
construction of Ladies Washroom
Providing seating benches to various
37 Not quantifiable Not quantifiable
institutions
500
(being the number 50% (conservative estimates based on the data
Establishing smart classes in Sainik School
38 of students currently available with regard to vulnerable sections of the
Nagrota
enrolled in the society in J&K)
school)

Over 10000
(average of 32
95%- (govt.-run hospitals are mostly frequented
Contribution towards construction of pre- people each day
by Economically weaker sections and people
39 fab patient/attendant sheds at District as the sheds have
belonging to other marginalized and vulnerable
Hospital Kargil the capacity of
sections of society)
accommodating 32
people)
Contribution towards providing one animal
40 ambulance to Narsingh Gao Seva Samiti, Not quantifiable Not quantifiable
Kathua

67
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

No. of persons ben-

% of beneficiaries from vulnerable and margin-
S. No CSR Project efitted from the CSR
alised groups
Projects
Contribution towards providing one school 48
bus and four smart classes to Chinar (being the number of
41 100%
Kashmir’s hostel for orphan and destitute children currently in
children the hostel)

PRINCIPLE 9 Businesses should engage with and provide value to their consumers in a responsible manner

Essential Indicators

1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
For facilitating hassle free escalation of grievances & service requests, Bank has notified various communication
channels in the public domain which include on-line grievance portal on website.

Customers are provided the facility of registering their service request through mPay and eBanking channels
for hassle free escalation of grievances & Service Requests. The customers receive acknowledgement of their
complaint/Service Request instantly with unique ID for future reference and tracking.

The customer complaints/Service Requests are processed and disposed-off through the Grievance Portal
within defined TAT and response/ reply is sent to the complainant/ customer through Portal/ Email/SMS. Root
cause analysis of complaints is performed so as to plug the gaps, if any, and avoid recurrence of complaints
on similar grounds.

The customer complaints which are partially or wholly rejected by the Bank are auto-escalated to Bank’s
Internal Ombudsman for opinion before conveying final decision to the customer.

2. Turnover of products and/ services as a percentage of turnover from all products/service that carry
information about:
As a percentage to total turnover
Environmental and social parameters relevant to the product
Safe and responsible usage

Recycling and/or safe disposal Not Applicable

3. Number of consumer complaints in respect of the following:

FY 2023-24 FY
(Current Financial Year) (Previous Financial Year)
Pending Remarks Remarks
Received Received Pending res-
resolution at
during the during the olution at the
the end of
year year end of year
year
Data Privacy 47 1 14 0
Advertising 0 0 0 0
Cyber Security 22 2 3 0
Delivery of essential services 388 7 93 0
Restrictive Trade Practices 0 0 0 0
Unfair trade practices 0 0 0 0
Other 3040 388 1552 33

4. Details of instances of product recalls on account of safety issues:

Not Applicable

5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If
available, provide a web-link of the policy.
The Bank has a Cyber Security policy which is for internal use and consumption. The Data Privacy related
controls are mentioned in the product related policies available on the website of the Bank like Internet
Banking policy, Mobile banking policy, etc.

68
6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery
of essential services; cyber security and data privacy of customers; re-occurrence of instances of product
recalls; penalty / action taken by regulatory authorities on safety of products / services. Nil

7. Provide the following information relating to data breaches:

a. Number of instances of data breaches along-with impact. Nil
b. Percentage of data breaches involving personally identifiable information of customers. Nil
c. Impact if any of the data breaches. Nil

Leadership Indicators

1. Channels / platforms where information on products and services of the entity can be accessed (provide web
link, if available).

The information about our products is available on our website www.jkbank.com or a customer can access
product and service information through watsapp banking / chatbot.
2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.
Besides Information about our various products and services, advisories are prominently displayed on Bank’s
social media handles viz. Facebook, X formerly Twitter, Instagram, YouTube, LinkedIn, and a series about
Cyber Jagrukta Abhiyan is published in Print Media & Social Media Handles on 1st Wednesday of every month.

3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.

The Bank has a Business Continuity Plan measures in place in case of any eventuality and the same is properly
communicated to our customers through social media, print media and other relevant channels.
For instance, in case of system updations, proper SMS is sent to customers on their registered numbers
regarding downtime of these systems which are usually carried out off-business hours. Further in case of
relocation of a branch or office premise, suitable communication in advance is sent to all customers about the
change.
During pandemic also, communications were sent on regular intervals to customers to use bank’s digital
banking services. Awareness across the enterprise about COVID-19 precautions were also disseminated in
multilingual format on Bank’s website for customers and our employees.

4. Does the entity display product information on the product over and above what is mandated as per local
laws? (Yes/No/Not Applicable) If yes, provide details in brief.
No

Did your entity carry out any survey with regard to consumer satisfaction relating to the major products /
services of the entity, significant locations of operation of the entity or the entity as a whole? (Yes/No) No

69
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Management Discussion and Analysis

GLOBAL ECONOMIC OUTLOOK: income levels. Multilateral cooperation is needed to limit the
The global economy remains remarkably resilient, with growth costs and risks of geoeconomic fragmentation and climate
holding steady as inflation returns to target. The journey change, speed the transition to green energy, and facilitate
has been eventful, starting with supply-chain disruptions debt restructuring.
in the aftermath of the pandemic, a Russian-initiated war
on Ukraine that triggered a global energy and food crisis, Domestic Economic Outlook:
and a considerable surge in inflation, followed by a globally While the global economy is going through extreme
synchronized monetary policy tightening. As global inflation headwinds, exposing tremendous volatility in demand;
descended from its mid-2022 peak, economic activity grew economic slowdown; disruption in the supply chain; sharp
steadily, defying warnings of stagflation and global recession. rise in energy and other commodity prices; rising inflation,
Growth in employment and incomes held steady, reflecting and interest rate hikes. In such an environment, the Indian
supportive demand developments, including greater-than- economy remains relatively better placed than other
expected government spending and household consumption emerging markets and global economies but is not entirely
and a supply-side expansion amid, notably, an unanticipated insulated from the impact of the global crisis. As per the
boost to labour force participation. data released by National Statistical Office (NSO) of Ministry
of Statistics and Programme Implementation (MOSPI),
As per IMF report on Global Economic Outlook, global growth India’s GDP growth during FY2023-24 is estimated at 8.2%
for 2024 and 2025 will hold steady around 3.2 percent with surpassing all projections. This reaffirms India’s position
global headline inflation expected to fall from an annual as the fastest-growing major economy globally. The Indian
average of 6.8 percent in 2023 to 5.9 percent in 2024 and economy and the domestic financial system remain resilient,
4.5 percent in 2025, with advanced economies returning supported by strong macroeconomic fundamentals, healthy
to their inflation targets sooner than emerging market and balance sheets of financial institutions, moderating inflation,
developing economies. The latest forecast for global growth improving external sector position and continuing fiscal
five years from now at 3.1 percent, is at its lowest in decades consolidation. The last decade witnessed a steady growth
in the Indian economy, attributed to increased public sector
Risks to the global outlook are now broadly balanced. On investment, a robust financial sector, and strong non-food
the downside, new price spikes stemming from geopolitical credit expansion. The domestic economy is experiencing
tensions, including those from the war in Ukraine and the strong momentum. The credit dispensation by Indian Banks
conflict in Gaza and Israel, could, along with persistent core is expected to witness double digit growth during FY25 as
inflation where labour markets are still tight, raise interest forecasted by Rating agency ICRA & S&P Global.
rate expectations and reduce asset prices. A divergence
in disinflation speeds among major economies could also The Reserve Bank of India, in its June Monetary Policy
cause currency movements that put financial sectors under Committee (MPC) meeting has projected the real GDP
pressure. In China, without a comprehensive response to the growth for 2024-25 at 7.2 per cent. IMF in its World Economic
troubled property sector, growth could falter, hurting trading Outlook update has increased India's growth forecast for the
partners. Geoeconomic fragmentation could intensify, with fiscal year 2024-25 by 20 basis points (bps) to 7 per cent,
higher barriers to the flow of goods, capital, and people attributed to improved private consumption, particularly
implying a supply-side slowdown. On the upside, looser fiscal in rural areas. Both World Bank & the United Nations have
policy than necessary and assumed in projections could raise projected Indian economy to grow at 6.6 per cent in FY2024-
economic activity in the short term, although risking more 25. Moody's in its Global Macroeconomic Outlook for 2024
costly policy adjustment later on. Inflation could fall faster has said that the Indian economy is likely to remain the
than expected amid further gains in labour force participation, fastest growing among G-20 economies on account of its
allowing central banks to bring easing plans forward. Artificial robust economic performance in 2023 and diminishing
intelligence and stronger structural reforms than anticipated global economic challenge. By all estimates, India’s growth
could spur productivity. is expected to remain strong, supported by macroeconomic
and financial stability.
As the global economy approaches a soft landing, the
near-term priority for central banks is to ensure that The U.N. World Economic Situation and Prospects (WESP)
inflation touches down smoothly, by neither easing policies 2024 report has said that consumer price inflation in India
prematurely nor delaying too long and causing target is projected to decelerate from 5.6% in 2023 to 4.5% in
undershoots. At the same time, as central banks take a 2024, staying within the central bank’s two to six per cent
less restrictive stance, a renewed focus on implementing medium-term target range. However as per Deloitte’s Indian
medium-term fiscal consolidation to rebuild room for Economic Outlook report 2024, consumer spending in India
budgetary maneuver and priority investments, and to ensure has been low after the pandemic, and the rebound has been
debt sustainability, is in order. Intensifying supply-enhancing inconsistent as well. One of the biggest reasons has been
reforms would facilitate inflation and debt reduction, allow the prolonged impact of the pandemic across consumer
economies to increase growth toward the higher prepandemic segments, exacerbated by subsequent global uncertainties.
era average, and accelerate convergence toward higher According to a survey by the Reserve Bank of India, consumer

70
confidence has barely reached pre-pandemic levels, and the cherries, pears, plums, almonds and walnuts.
improvement over the past few months has been gradual,
despite a strong pickup in economic activity. Remarkably, the tourism sector has also been playing a
significant role in the region’s economy as it makes an
The growth prospects of the Indian economy in 2024-25 look enormous contribution to the region’s local economies
bright. In India, labour market indicators have also improved through job creation and sustainable development. It is
amid robust growth and higher labour force participation. the largest service industry in the UT and is significantly
India’s government remains committed to gradually reduce contributing to the GSDP. It earns foreign exchange,
the fiscal deficit, while seeking to increase capital investment. provides widespread employment, and yields tax revenue.
Manufacturing is expected to maintain its momentum on the The government’s ambitious vision of positioning Kashmir
back of sustained profitability. Services activity is likely to as a global tourism hotspot gained significant traction in
grow above the pre-pandemic trend. Private consumption 2023, with the valley playing host to prestigious international
should gain steam with further pick-up in rural activity and events, including the G20 Tourism Working Group meeting
steady urban demand. A rise in discretionary spending and the Miss Universe press conference. More recently,
expected by urban households, as per the Reserve Bank’s an inaugural Formula-4 (F4) car racing event took place in
consumer survey, and improving income levels augur Srinagar. Here it is worth mentioning that pilgrimage tourism
well for the strengthening of private consumption. The provides an extra boost to the region’s economy.
prospects of fixed investment remain bright with business
optimism, healthy corporate and bank balance sheets, robust Meanwhile some of the major initiatives taken by the
government capital expenditure and signs of upturn in the Government to give boost to the economy of Jammu &
private capex cycle. Kashmir are as under;

J&K Economy • Jammu and Kashmir has achieved 100% saturation

Jammu & Kashmir has always been projected as an economy in schemes like Saubhagya, Ujjwala, Ujala, Old Age/
with immense potential across various sectors. It’s economy Widow and Disability Pension Scheme, SC/ST/
is primarily services-based and agriculture-oriented. Various Minority, Pre-Matric and Post-Matric Scholarship
efforts in the last few years to tap the economic potential Schemes, Poshan Tracker, Poshan Vatikas, Prime
are proving a shot in the arm of economic development of Minister’s Matru Vandana Yojana, Kisan Credit Card
the region. At current prices, the GSDP of J&K has been Scheme, Swachh Bharat Mission, Drinking Water,
estimated at Rs. 2.31 trillion (US$ 27.95 billion) in 2023- Play field & Youth Clubs, PM Kisan Samman Nidhi,
24. The UT’s GSDP increased at a CAGR of 8.84% between Soil Health Card and Public Distribution System.
2018-19 and 2023-24. The GSDP of UT is expected to double Besides, under JJM, 99.94% population has been
by the year 2027-28 with special emphasis on Agriculture, provided with piped water and 57.84% individual
Horticulture, Tourism, Industries and Service Sector households have tap connections. Under LPG-DBT
(PAHAL) 31.77 lakh beneficiaries have been covered.
Five major sectors are contributing to the region’s economy, Milk production has reached highest ever 2594
which include agriculture and horticulture, tourism, Thousand Metric Tons.
handicrafts, industries and government jobs. The economy • Road infrastructure by way of construction of
of the UT of J&K is predominately agriculture dependent and mega highways and tunnel projects is in progress.
nearly 70% of population is directly or indirectly engaged in A number of highway projects are presently under
agricultural and allied occupations which is based on Small execution which upon completion are expected
Land Holdings. The second sector is tourism, which varies to bring much respite for the people of Jammu &
but on average employs about a million people. The third is Kashmir.
handicrafts, or the artisanal sector, which employs around • The work on 6.5 Km Z-Morh Tunnel on Srinagar-
1 million people. The handicraft sector plays an important Sonamarg Road is going on at the brisk pace and
role in the state’s economic structure, and its high-quality will be completed during the current financial year
craftsmanship, appealing designs, and functional utility have at a cost of Rs. 2,378 crore, which will provide an
earned it international fame. Fourth is the industry sector, opportunity for tourists to visit the beautiful place
which is in its early stages of development. About 5 lakh of Sonamarg in winter as well.
people are employed by the government. • The construction of 135 Km stretch of six-lane Delhi-
Amritsar Katra Expressway falling in Jammu &
Overall, agriculture & horticulture in the primary sector, Kashmir has commenced. This will reduce the travel
manufacturing & construction in the secondary sector and time to Shri Mata Vaishno Devi Shrine to 6 hours
public administration in the tertiary sector are the largest only.
contributors towards the Gross State Domestic Product • Kashmir is likely to be connected to rest of the
(GSDP). country through rail network by July 2024.
• The Jammu and Kashmir Holistic Agriculture
Jammu and Kashmir’s economy is predominantly dependent Development Plan rolled out. Under this plan, 29
on agriculture and allied activities. Horticulture plays a vital projects have been approved with an outlay of Rs
role in the economic development of the J&K. This sector 5,012 crore over a period of next five years. This will
is one of the major source of income in the UTs economy. transform the agriculture economy of Jammu and
The region of Kashmir is known for its horticulture industry. Kashmir putting it on a new trajectory of growth,
Horticultural produce from J&K includes apples, apricots, doubling the output of sectors, boosting exports and
making the sectors sustainable and commercially

71
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

viable. It will herald a new phase of farming stringent security measures.

prosperity and rural livelihood security in Jammu
and Kashmir and create additional job opportunities Banking Sector in J&K:
to 2,87,910 people in agriculture and allied sectors. Role of banks operating in J&K and Ladakh assumes extra
18,861 new business enterprises will be created over significance as they play a crucial role to bail out the region
the period of next five years. from economic backwardness and bring in prosperity in all
• Under this Holistic Agriculture Development Plan; sectors of economy. The institutional structure of banking
67,000 Metric Ton Controlled Atmosphere (CA) in J&K consists of several institutions, namely, commercial
storage space will be created with full value chain banks, regional rural banks and cooperative banks. Banks are
and aggregation network. Honey production will meeting the financial requirements particularly of the un-
be tripled and Cocoon production will be increased organized sector and the self-employed in the micro and small
from 700 Metric Ton to 1,350 Metric Ton over the business sectors. To meet the objective of financial inclusion,
period of next five years. banks are deepening and broadening their network apart
• As a “Tourism Mission” initiative 75 new destination, from diversifying domain of their activities and jurisdiction.
75 Sufi/religious sites, 75 new cultural/heritage sites There has been notable improvement in the banking services
and 75 new tracks are being developed and opened with the increase in the bank branches over the years in J&K.
up so that the economic gain of tourism industry The region has developed a robust banking network with
trickle down to far off and hitherto unexplored areas. 2158 branches as at the end of March 31, 2024, spread across
The promotion of Film Tourism will be an important its nook and corner. The banking sector consists of 37 banks,
component of the “Tourism Mission” during current which includes 12 public sector banks, 11 private sector banks,
as well as upcoming years. 10 Cooperative banks, two regional rural banks, one State
Financial Corporation and India Posts Payment bank.
Banking Sector Outlook:
In 2023, the Indian banking sector underwent a remarkable The Annual Credit Plan 2023-24 for UT of J&K, which was
transformation, marking a pivotal moment in its trajectory. launched on 1st April, 2023, envisaged a total credit target of
The year saw a resurgence characterised by declining bad `51,708.81 Crore for 16,51,877 beneficiaries. During FY 2023-
loans, improved profitability, and bolstered capital positions, 24 banks operating in UT of J&K have disbursed total credit
setting a robust foundation for future growth. The sector of `66,052.25 Crore in favour of 18,15,203 beneficiaries,
faces a landscape filled with opportunities and challenges registering an achievement of 128% in financial terms
that will shape its course in the coming months. and 110% in physical terms. This includes disbursement
of `33,750.16 Crore in favour of 10,41,478 beneficiaries
The performance of the banking sector in 2023 was nothing against the annual target of `41,261.10 Crore for 13,38,894
short of remarkable. Profits soared to new highs. India›s beneficiaries under Priority Sector and `32,302.09 Crore in
banking sector reached a historic milestone with a net favour of 7,73,725 beneficiaries against the annual target
profit surpassing `3 lakh crore in FY24. The combined profit of `10,447.71 Crore for 3,12,983 beneficiaries under Non-
of listed public and private sector banks surged by 39%, Priority Sector thereby registering achievement of 82% and
totaling `3.1 lakh crore compared to `2.2 lakh crore in FY23. 309% in financial terms respectively.
As per RBIs Financial Stability Report publised in June 2024,
the asset quality of SCBs improved during 2023-24 with A glimpse of the aggregate analysis of the advances and
overall gross non-performing assets (NPA) ratio declining deposits position of the banks as on March 31, 2024 reflects
to a 12 year low of 2.8 per cent at end-March 2024. This some interesting behavioural aspects. All banks together have
significant improvement underscored the sectors focused granted loans to the tune of `1,13,729.84 crore, to various
efforts in risk management and debt recovery. Sustained sectors of economy with a deposit base of `1,81,240.34 crore
credit growth, increased digital adoption, and supportive at the end of March 2024. The credit – deposit (CD) ratio
government policies were instrumental in revitalising the stands at 62.75%.
sector, fortifying its resilience.
J&K Bank -Business Strategy
During the current FY, the sector cautiously anticipates Based on the economic outlook, the principal goal of the
a favourable outlook. Stable interest rates, a robust GDP, business strategy of the Bank is to build a strong balance
and declining inflation could positively influence lending sheet reflecting growth, better asset quality, good prospects
and deposit activities. The emphasis on technology and of maximization of returns and better capital structure.
infrastructure investments creates avenues for growth. During the period, bank shall focus on the following:
The sector›s resilient foundation—strengthened asset
quality, robust capitalization, and sustained profitability— Business Process Reengineering initiatives (BPR):
positions it favourably to navigate uncertainties. With a keen Bank has continuously endeavored to align its operations
focus on innovation, adaptive strategies, and prudent risk with contemporary business environment and adapt latest
management, the Indian banking sector strives for a future technologies and standards with regards to various business
characterised by sustained progress and resilience. aspects. In this direction, bank shall undertake initiatives
under BPR to streamline the processes and banking
Going forward rising interest rates and intensified competition operations by way of adoption of best in class technologies
from agile FinTech entities necessitates adaptability and and standards.
innovation. Additionally, the increased reliance on technology
exposes banks to heightened cybersecurity threats, urging

72
Focus on retail lending as well as corporate lending Business Contingency Plan (BCP):
The risk associated with corporate lending outside the UTs of To enhance resilience to disruptions, protect key assets,
J&K and Ladakh has been mitigated by shifting the focus to maintain customer service and preserve reputation and
AAA rated PSUs and high rated corporate borrowers (small & competitive advantage, Bank has aligned its BCP with ISO
mid segment) and retail lending with targets being allocated 22301 standards. As per the requirements of the ISO 22301,
for corporate sector in alignment with the risk profile and bank has put in place BCP policy, Business Continuity
risk appetite of the Bank. Bank is also strategizing to build plan and Business Continuity Management System Scope
retail portfolio outside the UTs of J&K and Ladakh through Document to mitigate the negative effects of disruptions
engagement of DSAs, tie-ups with builders and housing which can impact the Banks normal functioning, strategic
finance companies etc. plans, reputation, market position operations, liquidity, credit
quality and ability to remain in compliance with applicable
Focus on digital channels laws and regulations.
Banking industry is fast transforming from a system driven
by conservative delivery channels to a system hugely Cyber Security:
supplemented by IT enabled alternate delivery channels. The In today’s digital age, the banking industry faces
digital vision of the Bank is to provide the facility of seamless unprecedented cybersecurity challenges. The Bank is
digital payments to all its customers in a convenient, committed in ensuring the safety and security of customers’
easy, affordable, quick & secure manner. The Bank offers financial assets, maintaining the integrity of our banking
various products and services through multiple digital systems, and upholding our reputation by developing a
channels to cater to the diverse preferences and needs of dynamic framework to address the cyber security challenges
its customers. These channels include: Debit Card, Credit arising out of technological developments in cyber space
Card, Internet Banking, Mobile Banking, UPI, Phone Banking, (such as cloud computing, mobile computing, encrypted
Online Account Opening, Chatbot, social media, DBUs, and services, social media etc.). Bank shall create necessary
third party partnerships. The Bank has collaborated with systems, processes, structures, policies and mechanisms to
various FinTech companies through partnerships or formal coordinate and integrate with the various security advisory
agreements for various facilities on its Credit Cards, POS Centre’s, banking peers for timely information sharing on
services, FASTag, BBPS services, Loyalty Management, situational scenarios of existing and potential cyber security
Direct Debit arrangements etc. threats. This shall help in taking proactive, preventive and
protective actions by Bank. Besides Bank shall organize
Risk Management awareness programs on cyber security & run security
Bank has comprehensive risk management framework which literacy awareness campaign through electronic media to
is based on continuous risk assessment, measurement and help customers to be aware of challenges of cyber security.
monitoring of various risks. The key components of the Bank’s
risk management architecture rely on the risk governance Succession Planning:
structure, comprehensive processes and internal control The Bank recognizes the importance of the process to
mechanism based on approved policies and guidelines. Succession Planning to ensure continuity in the smooth
functioning of the organization. The Bank has put in place
Liability Mobilization: a policy on Succession Planning for the Board as well as the
Bank shall identify different segments of Customers and Senior Management. The policy formalizes a long term and
provide them the facilities as per their requirement by Short term succession plan for a prudent transition process,
introduction of new products & updation of existing products capable of finding and preparing successors. The Succession
so as to synergize them with the Current market trends and planning process involves the identification of Competency
demands. Technology shall be leveraged for launching of requirements of critical roles and leadership positions,
specific deposit products wherein online account opening, assessment of potential candidates and development of
etc. shall be enabled to target customers preferring digital required competency through planned development and
onboarding. Besides Corporate Salary Package launched by learning initiatives.
the Bank for employees of the corporates shall be aggressively
promoted & renowned private firms/educational institutions Customer Centricity:
will be pursued for onboarding under the Corporate Salary The Bank observes customer centricity through service
Package. excellence, integrity and transparency, and a comprehensive
range of innovative products and services responsive
Liquidity Risk: to customer needs to ensure customer satisfaction for
Bank maintains a robust liquidity risk management framework retaining existing customers and attracting new customers.
to withstand liquidity shocks and meet obligations in a timely For facilitating hassle free escalation of grievances & service
manner. Bank closely monitors its cash inflows and cash requests, Bank has notified various communication channels
outflows, to predict liquidity needs accurately. The bank in the public domain which include on-line grievance
has a well-defined Contingency Funding Plan (CFP) which portal on website, mPay and eBanking channels where the
ensures a bank has adequate sources of liquidity in place to customer complaints/Service Requests are processed and
fund normal operations under various contingent liquidity disposed-off within defined TAT and response/ reply is sent
event scenarios. Bank carefully manages and matches the to the complainant/ customer through Portal/ Email/SMS.
maturities of their assets and liabilities to avoid sudden Root cause analysis of complaints is performed so as to
imbalances in cash flows. This helps mitigate liquidity risk plug the gaps, if any, and avoid recurrence of complaints on
by ensuring that funds are available when needed to meet similar grounds. The Bank also conducts Customer Advisory
obligations. Forum (CAF) meetings at all Branches at monthly intervals.

73
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

These meetings help us obtain first hand feedback about d. Increased effective and meaningful stakeholder
our products and services and in turn facilitate necessary arrangement.
changes/ improvements as per customer expectations. e. Formulation and review of various policies aimed
Economizing Service delivery: at reaffirming and re-aligning of Corporate
It has been the endeavour of Bank to leverage technology Governance structure of the Bank.
for providing convenient digital services to our
customers. Adoption of latest banking technologies not only ESG initiatives:
facilitates better customer experience & ensures customer Environment, Social & Governance (ESG) has become
relationship management but also plays an important role an area of heightened focus and has changed bank’s
in reduction in cost of operations. Bank has introduced End outlook towards its business as it aims to align its ESG
to End Automation of Phone-Pe Loan to MOU Employees approach with its strategic goals. Bank has adopted
without any manual intervention through Straight through “Environment, Social and Governance (ESG) Policy”,
Processing (STP) platform. Bank recently upgraded its which seeks to adopt sustainable business practices that
mobile banking application ‘J&K Bank mPay Delight Plus’ ensure accomplishment of Bank’s long term strategies
which enables customers to view their account, scan QR, and have a positive impact on the environment and
transfer funds, open fixed/recurring deposit accounts, apply society. The ESG policy outlines the approach taken
for loans, pay utility bills, manage credit cards etc. The Bank to manage Bank’s Business, environmental and social
also undertook deployment of UPI QR Code in mission mode, performance in an integrated manner and help ensure
leading to good presence of our UPI QR Code at merchant that industry accepted standards and best practices
locations, particularly in J&K and Ladakh. Besides Bank is are applied when identifying, assessing and monitoring
expected to widen the ambit of centralization & automation environmental, social and governance risks with respect
of loan processing by including Housing Loan , SME, Agri, to the Bank’s business operations.
Corporate Loans and Forex & Trade Finance to reduce
TaT, increase employee productivity and enrich customer J&K Bank Financial Performance w.r.t Operations
experience. Online Account Opening Facility of the Bank performance
along with Video KYC enables the prospective customers to During the fiscal 2023-24, the total income was recorded
open a Bank Account 24x7 at their convenience and comfort at `12,037.85 Crore compared to `10,111.92 Crore for the
without any geographical barriers within country and without previous FY2022-23 showing an increase of 19.05%. Interest
the need for visiting a Bank Branch. income stood at `11,212.37 Crore for the FY 2023-24 as
against `9,355.11 Crore for the previous FY recording a YoY
increase of 19.85%. The non-interest income was `825.48
New Products & Services on the anvil:
Crore for the FY 2023-24 as against `756.81 Crore for the
Review of existing asset/liability products & introduction of
previous FY. Interest expended increased to `6008.68 Crore
fresh products is an ongoing process. This activity is being
in the fiscal 2023-24 from `4,609.83 Crore in the previous
undertaken by the bank in line with business objectives fiscal 2022-23 recording a YoY increase of 30.34%.
with due consideration to competitive landscape, micro
and macro-economic factors, target customers, socio- The Bank’s operating expenses stood at `3,752.29 Crore for
economic obligation and likewise. It remains an endeavour FY 2023-24 as compared to `3,643.60 Crore for FY 2022-23.
on the part of the bank to come up with competitive and Operating Profit stood at `2,276.88 Crore for FY 2023-24
customer friendly offerings so as to evade competition as compared to `1,858.49 Crore for FY 2022-23, growth of
and make available innovative product offerings to our 22.51% YoY.
customers. Bank’s Product Development and Approval
Policy provides for involvement of multiple functionaries in NPA Coverage Ratio of the Bank stood at 91.58% as on March
the product development and approval process, so that the 31, 2024 as compared to 86.20% as on March 31, 2023. Gross
best new offering can be created with due consideration to NPA Ratio stood at 4.08% as on March 31, 2024 as compared
regulatory and legal aspects, competitive factors, customer to 6.04% as on March 31, 2023. Net NPA Ratio has reduced
demographics, geographical factors etc. Technology shall be from 1.62% as on March 31, 2023 to 0.79% on March 31, 2024.
leveraged for launching of some deposit products wherein
online account opening, etc. shall be enabled to target The Bank posted a Net Profit of `1,767.27 Crore for the
customers preferring digital onboarding. financial year ended Mar, 2024 as compared to Net Profit of
`1,197.38 Crore during the financial year ended Mar, 2023.
Governance Initiatives
Various governance initiatives undertaken taken by The aggregate business of the bank stood at `2,28,537.40
the Bank during financial year 2023-2024 include the Crore at the end of the financial year 2023-24.
following:
a. Result oriented Performance evaluation of the The Bank recorded deposit growth of 10.44% and advances
Directors of the Bank by the Board and committees growth of 13.95% during the year.
of the Board.
b. Conduct of customised training / capacity building Cost of deposits has increased to 4.57% for FY 2023-24
programmes for the Directors of the Bank in the from 3.79% for FY 2022-23, while, CASA stood at 50.51%
reputed institutes of learning with a view to enrich for FY 2023-24.
the members of the Board.
c. Strengthening of Board Independence and Board
Diversity.

74
Segment-wise and Product-wise performance of the Bank we may call it a digital revolution, is playing a bigger role
The segment wise and product wise performance both in the than ever in banking. Banks, including our Bank are learning
Deposits and Credit is furnished below:- and participating in the digitizing of all aspects of banking.
Every form of traditional banking is exploring digitization and
Amount (in
Deposits Net Advances Amount (in Cr.) significant headways have been made in payments, mobile
Cr.)
banking, online banking, digital lending, e-KYC, remote
Cash Credits, Overdrafts customer servicing etc. Data security is, however a critical
Demand 14,823.76 26,725.37
& Demand Loans component in this revolution, and it is a key risk to manage.
The financial regulators in India are working towards building
Bills Purchased & a fundamentally strong system that can manage such risks
Savings 53,248.85 186.17
discounted and have been very successful at it.
Term 66,702.28 Term Loans 66,850.97
The banking sector is currently navigating a landscape
Total 1,34,774.89 Total 93,762.51 characterized by both opportunities and challenges. On the
one hand, technological advancements have opened new
• Total deposits of the Bank grew by `12,737.15 Crore doors for innovation, allowing banks to enhance customer
from `1,22,037.74 Crore as on March 31, 2023 to experience through digital services, mobile banking,
`1,34,774.89 Crore as on March 31, 2024, a growth and fintech collaborations. These opportunities not only
of 10.44% percent. CASA deposits of the Bank at streamline operations but also offer a platform for financial
`68,072.61 Crore constituted 50.51% percent of total inclusion by reaching underserved populations. However,
deposits of the Bank. these advancements come with their set of challenges. The
rise of cyber threats poses a significant risk to the security
• Average deposits stood at Rs.1,24,464.97 Crore during of financial transactions, demanding robust cybersecurity
FY 2023-24, compared to Rs.1,14,743.60 Crore during measures. Additionally, the evolving regulatory environment
FY 2022-23 recording a growth rate of 8.47%. and compliance requirements add complexity to banking
operations. Frequent changes in regulations, including capital
• During the year, Gross Credit increased from adequacy requirements, lending norms, and compliance
`86,155.64 Crore (FY 2022-23) to `96,981.86 Crore standards, can pose challenges for banks as they need to
(FY 2023-24), registering a growth of 12.57%. adapt and ensure compliance, potentially affecting their
profitability and operation. Taking cognizance of high growth
• Average advances increased by `11,745.69 Crore at in certain components of consumer credit and to strengthen
`90,244.68 Crore during FY 2023-24 compared to internal surveillance mechanisms & address the build-up of
`78,498.99 Crore during FY 2022-23.The average risks in certain segments, RBI has recently issued regulatory
yield on advances was 9.54% for the current fiscal measures wherein it has increased risk weights in respect of
against 8.91% during the previous fiscal.   consumer credit exposure of SCBs including personal loans
but excluding housing loans, education loans, vehicle loans
The Bank has the following business segments viz. Treasury, and loans secured by gold, by an additional 25 percentage
Corporate/wholesale banking, Retail banking and other points to 125%. Besides RBI has also increased the risk
banking operations. The segment-wise results of the Bank weights on exposures to NBFCs by additional 25 percentage
are furnished elsewhere in the report. points where the risk weight as per external rating of NBFCs
is below 100%. This direction from regulator will increase
Opportunities and Threats: the capital requirements of Banks which in turn will increase
Banks have a crucial part to play in the economic growth of their cost of capital. Besides maintaining good asset quality
the country. Banking sector is the key sector for the growth continues to be challenge for Banks as economic uncertainty
of overall economy of the country. Access to credit has or industry specific challenges can impact asset quality and
improved over the past decade through various measures profitability, posing a threat to banks’ stability.
taken by the government through industry-friendly policies,
entrepreneurship driven schemes & initiatives, GECL, MUDRA Striking a balance between innovation and security, and
schemes etc. Increasing employment opportunities and adapting to regulatory changes, is crucial for the banking
growing disposable income shall further raise the demand sector to thrive in this dynamic landscape. Successful
for banking and related services. Besides, launch of various navigation through these challenges can lead to increased
digital initiatives viz. UPI & BHIM payment platforms etc. by efficiency, customer satisfaction, and sustainable growth for
the government has helped the country to drive cashless banks in the ever-evolving financial industry.
transactions, through leveraging internet and mobile
technology. Banks have ramped up their efforts to expand Risks & Concerns
their footprints in digital platforms. Bank has comprehensive risk management framework which
is based on continuous risk assessment, measurement and
The digital payments system in India has evolved the fastest monitoring of various risks. The key components of the Bank’s
amongst the countries. It is evident from the record number risk management architecture rely on the risk governance
of UPI transactions per month. UPI transactions are expected structure, comprehensive processes and internal control
to breach 100 crore transactions per day by FY27, according mechanism based on approved policies and guidelines. Risk
to a report by PwC India, which projects UPI to dominate the Management is an integral part of the Bank’s organizational
retail digital payments landscape, accounting for 90 per cent structure and plays pivotal part in formulation of business
of the total transaction volumes over the next five years. strategy. The Bank has a well-charted risk management
The opportunities and potential to grow digitally are virtually policies for managing credit, operational and market risks
unlimited. Post pandemic, increased use of Digital platforms, based on accepting various risks, controlled risk assessment,

75
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

measurement and monitoring of these risks. The Board sets in various areas of the bank’s operations. The implementation
the overall risk appetite and philosophy for the Bank. of risk-based internal audit means that greater emphasis
is placed on the internal auditor’s role in mitigating risks.
The Integrated Risk Management Committee of the Board While focusing on effective risk management and controls,
(IRMC), which is a sub- committee of the Board, reviews in addition to appropriate transaction testing, the risk-based
various aspects of risk arising from the businesses of the internal audit not only offers suggestions for mitigating
Bank & frames, monitors and reviews the risk management current risks but also anticipates areas of potential risks and
framework. IRMC of Board oversees the management of plays an important role in protecting the bank from various
risks through Executive Management Committees-Credit risks. The Branches and other offices of the bank are also
Risk Management Committee (CRMC), Operational Risk subjected to other audits viz Concurrent Audit, IS Audit, Credit
Audit, Legal Audit, Stock Audit, Forex Audit, Snap Inspection,
Management Committee (ORMC), Market Risk Management
Management Audit and Forensic Audit which form part of the
Committee (MRMC) and Asset Liability Management
internal control mechanism. These audits are effective tools/
Committee (ALCO). The Integrated Risk Management
modes of early-warning system for detection of irregularities
Committee (IRMC) of the Board reviews risk management and lapses in daily operations of bank’s branches, checking
policies of the Bank pertaining to credit, market, liquidity, recurrence of irregularities, infirmities and deficiencies in
operational & Pillar II risks that includes strategic risk banking operations.
and reputational risk, stress testing, Business continuity
planning & information security. The Committee reviews Besides, keeping pace with rapid digitalization in your
implementation of Basel III norms, risk return profile of the bank, technology-based audit system has been introduced
Bank, compliance with RBI guidelines pertaining to credit, for enhanced efficiency and effectiveness through system
market, operational and residuary risks faced by the Bank. driven audits. The modules which uses technology for audit
The Chief Risk Officer (CRO) oversees the development purpose are:-
and implementation of Bank’s risk management functions.
Further details in this regard are available in Director’s 1. Concurrent Audit
Report and Corporate Functions Report. 2. Risk based Internal Audit
3. Long Form Audit Report
Internal Control and Systems Adequacy 4. Information Systems Audit
To strengthen effective controls for compliance to systems 5. Credit Audit
& procedures and policy decisions on various operational
6. Legal Audit
aspects of day-to-day banking, the Bank has well defined
7. Management Audit
internal control measures in place which are commensurate
to its size as also the complexity of operations.
All the critical operations of the Bank such as Treasury
Audit Committee of Board provides directions / oversees Operations, Centralized Processing Units, Data Centres,
the audit function of the bank including internal/ statutory / Contact Centre, Government Business Department, KYC/
external audit of the Bank and inspections of RBI. It reviews the AML Department, Terminal Benefits Department, Payments
internal inspections / audit functions of the Bank - systems, its & Settlement Department, etc. are subjected to Concurrent
quality and effectiveness in terms of follow up. Supervision, Audit. Core Banking Solution (CBS) and all other major
Control & Audit Division, Corporate Headquarters examines, information technology assets / applications, besides
identifies and finalizes the Branches/ other Operational concurrent audit, are also subjected to I.S Audit while
Offices for the purpose of various Audits from time to time. as departments at controlling offices are covered under
As per the approved Audit Policies, this annual exercise is Management Audit.
conducted every year so that there is smooth conduct of
various Audits like RBIA, Concurrent Audit, Credit Audit, Legal Branch Audit
audit, I.S Audit etc. In compliance to RBI guidelines, the Bank S&C and Audit Department undertakes review of the
has already put in place Audit system to strengthen various operations of Branches through Risk Based Internal Audit
measures for effective controls for compliance to systems (RBIA), an adjunct to Risk Based Supervision, as per RBI
& procedures and policy decisions on various operational directives. Your Bank has initiated a system driven process
aspects of day-to-day banking. through a software called eThic for conducting the audit of
all Branches of the Bank covering the business operations
Audits serve as one of the effective tools/modes of (i) early- which auto calculates the periodicity of next audit as per the
warning system for detection of irregularities and lapses
risk rating arrived at in current Audit.
in daily operations of bank’s branches; and (ii) checking
recurrence of irregularities, infirmities and deficiencies
Credit Audit
in banking operations thereby facilitating their detection,
Your Bank undertakes Credit Audit to review large value
diagnosis and initiating desired steps for their rectification,
standard borrowal accounts, evaluates portfolio quality
improvement of systems & procedures besides compliance
including audit of appraisals, sanction and follow-up process
to internal and regulatory guidelines and controlling risks/
on an ongoing basis. The loan review mechanism under credit
preventing frauds.
audit has been designed to provide feedback on effectiveness
of credit sanction and identify early deterioration in eligible
In the light of the fast changing dynamics of today’s banking
borrowal accounts.
environment and in tune with the extant guidelines the bank
has adopted Risk Based Internal Audit, which includes, in
Management Audit
addition to selective transaction testing, an evaluation of the
Management audit is an independent and systematic
risk management systems and control procedures prevailing
appraisal of how effectively and efficiently an organization is

76
accomplishing its objectives and performing the management from customers as well as non-customers, State & Central
functions of planning, organizing, directing, coordinating government agencies, print media, CAG and RBI. The internal
and controlling. Management audit is a total audit system sources consist of mainly inputs from inspections and audits
encompassing the entire gamut of management functions (snap, concurrent, RBIA, information system (IS) audit, off-
and tools including the internal audit/inspection functions. site surveillance reports, whistle-blower mechanism etc.). On
receipt of any communication from these sources, the fraud
Foreign Exchange (Forex) Audit angle is investigated from the concerned S & C Division of the
Foreign Exchange business of the Bank being conducted bank and further examined and analyzed by the investigating
across the country borders is exposed to a number of risks. officer at Vigilance Department who scrutinize its various
Foreign currency prices are subject to change on account aspects and propose suitable action depending on the
of monetary policies of the Reserve Bank and by domestic, severity of the findings ranging from issuance of caution /
international and overall global economic factors. Since the displeasure letters / suspension to termination and dismissal.
Forex market is a 24-hour global market with numerous In case it is deemed that further disciplinary action is needed
players involving vast sum of money, rates can move the case is referred to the Disciplinary Department, Corporate
considerably on account of any overseas developments Headquarters for completion of disciplinary proceedings as
and expectation of any change in monetary flows triggering per the extant rules of the bank.
speculation. Moreover, Forex market is information
technology driven and as such, decision-making has to be Human Resources and Industrial relations
instantaneous Bank believes that its greatest assets are its human resources
and training is a long term investment in people development
Information system audit for organizational excellence. Bank has updated all policies
Information system audit is a part of the overall audit related to HR as part of transformation journey.
process, which is one of the facilitators for good corporate Business per Employee and Net Profit per Employee
governance. Information System (IS) auditing is a systematic were at `17.81 crore and `13.75 lakh respectively for the
independent examination of the information systems and financial year ended March, 2024 compared to `15.57
the environment to ascertain whether the objectives, set crore and `9.06 lakh pertaining to the financial year ended
out to be met, have been achieved. IS Audit is the process Mar, 2023.
of collecting and evaluating evidence to determine whether
a computer system (information system) is safeguarding the Training:
assets, maintaining data integrity and operating effectively
Human Resource plays an important role in organizational
to achieve organizational goals.
development and its profitability. In order to keep the
employees updated and relevant in the market, besides
Concurrent Audit
Your Bank has put in place concurrent audit system carried sharpening their skill set and knowledge, new techniques,
out round the year at BUs on an ongoing basis. Concurrent procedures and technologies are introduced in the
audit is an independent appraisal activity conceived as a Organization. In line with organizational vision & goals and in
systematic examination of all financial transactions at a BUs order to develop leadership qualities and inculcate the sense
to ensure accuracy and compliance of internal systems and of motivation and responsibility among its staff, trainings
procedures as laid down by the bank. It aims at minimizing (both on job as well as off job) are imparted to the staff for
the incidence of serious errors and fraudulent manipulations which services of various Institutes are being utilized.
as it is intended to be undertaken concurrently. Your Bank Bank’s own Staff Training Colleges at Srinagar and Jammu
has engaged Chartered Accountant Firms in addition to also cater to the sizeable training needs of the organization.
the retired experienced bank officers and regular officers Offline trainings are conducted both in-house as well as at
for audits. Additionally, Concurrent Auditors are placed external training institutes. In FY 2023-24, 6222 officials
at Central Processing Centers to identify shortcomings in were imparted training in different banking related fields.
underwriting at a very early stage of the client relationship.
• The highest number of trainings were imparted in Credit
Legal Audit function where 2091 employees were trained during the
Legal Audit in your Bank covers scrutiny of the loan and year.
security related documents of loan accounts with credit • Digital banking also remained one of the focus area and
exposure of Rs.5 crore and above. The legal audit is a control 1431 employees designated as ‘Digimitras’ were trained
function, carried out by in-house team of internal auditors during the year
with requisite legal background/qualifications or through • Information security, NPA Management & Cross selling
panel advocates to ensure that there are no shortcomings in were other areas with more than 500 to 1600 employees
the documents or creation of security in favour of your Bank.
trained in each domain during the year.
The S, C & Audit Division handles the staff accountability
J&K Bank, apart from being among the four banks having
cases other than those having a vigilance angle. The staff
accountability cases are investigated by the field level stake in National Institute of Banking Studies & Corporate
functionaries located at three S&C Divisions viz. S&C Kashmir, Management (NIBSCOM), is also an Associate Member of
S&C Jammu and S&C Delhi. The cases are then analyzed below mentioned institutions/ bodies and officers of the
and put to hierarchy for referring to IAC (Internal Advisory Bank regularly participate in the trainings, seminars and
Committee) or for closure as the case may be. workshops organised by them.

Vigilance cases emanate from two sources i.e. external and i. National Institute of Banking Management (NIBM).
internal sources. The external sources include the complaints ii. Federation of Indian Chambers of Commerce &

77
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Industry of India (FICCI). anywhere and at any time including while travelling. Eight
iii. The Associated Chambers of Commerce & Industry courses comprising of 53 modules in areas of Information
of India (ASSOCHAM) Security , Information Security, KYC AML Certification, Risk
iv. Indian Institute of Banking & Finance (IIBF). Management, Treasury, International Trade Finance, Credit
v. Confederation of Indian Industry (CII) Monitoring & Credit were uploaded on the system and made
available to the employees for enhancing their knowledge.
Capacity Building: More than 1000 employees have already completed all the
In order to encourage and groom its staff to acquire further courses.
knowledge and skill sets for disposal of assignments diligently
and in a professional way, the Bank has taken a step ahead Manpower Planning
and enlisted courses contemporary to banking landscape as Manpower planning encompasses the process that identifies
per RBI’s guidelines. The officials successfully completing the number of employees that is required in terms of high
these courses are being reimbursed actual course fee and quality and quantity, hence it is seen as an ongoing process
honorarium in case of Diplomas and MBA (B&F). As many as of regular and structured planning.
seven Diploma courses and eight Certificate courses offered
by IIBF, besides certification/re-certification courses in IT HR always takes into consideration the growth of the Bank
conducted by Cisco/Solaris/Oracle/Microsoft/Sun Java have by transforming the current manpower position into desired
been enlisted. manpower position through planning and management
to have the right employee at the right position to ensure
Under RBI’s Capacity Building Programme, following seven effective utilization of manpower, thereby to achieve the
courses have been enlisted in order to develop a resource long term objectives/targets.
pool in critical areas viz Risk, Forex, Treasury etc.
The Man power Planning is resorted to in a professional
• Certified Credit Professional Course. manner to ensure proper staffing, that is placing the right
• Certified Treasury Professional Course. person at the right position. In order to adopt industry best
• Certified Risk in Financial Services. practices, the Bank hired the services of a consultant (KPMG)
• Diploma in IFRS by ACCA by KPMG. for conducting an organization wide manpower assessment
• The Chartered Financial Analyst Programme offered by in the Financial Year 2022-23. The manpower deployment
American Based CFA (USA). within the Bank is being done as per the said assessment.
• Financial Risk Management by GARP USA.
• Certification in Foreign Exchange Details of significant changes (i.e. change of 25% or
more as compared to the immediately previous FY) in key
During FY 2023-24, the Bank entered into an academic financial ratios.
arrangement with IIBF for conducting Training cum • Return on Assets is 1.22% for the Financial Year
Certification exclusively for the employees of the Bank to ended 31st March, 2024 as compared to 0.89% for
create a pool of certified resources in sensitive and critical the previous Financial Year.
Banking domains of Credit, Forex, Treasury, Risk Management • Gross NPA Ratio stood at 4.08% as on March 31,
and Audit & Accounting. 2024 as compared to 6.04% as on March 31, 2023.
• Net NPA Ratio stood at 0.79% as on March 31, 2024
as compared to 1.62% as on March 31, 2023.
e-Pathshala
• Earnings per Share is `16.80 for the Financial Year
During FY 2023-24, the Bank introduced an e-Learning
ended 31st March, 2024 as compared to `12.43 for
Management System christened ‘e-Pathshala’, a software
the previous Financial Year.
application accessible over Internet through PCs & • Adjusted Book Value per share stood at `92.90 as
Laptops. A mobile based version of the application was also on March 31, 2024 as compared to `67.76 as on
introduced to give employees ease of accessing the app from March 31, 2023.

78
Corporate Functions Report

Major CSR Activities in the Financial Year 2023-24 Details of activities undertaken under CSR during the FY
As a responsible corporate citizen, J&K Bank envisions 2022-23
to integrate its strategic intent and business goals with
the needs of the society in order to achieve an inclusive, A. Healthcare & Hygiene
sustainable and harmonious environment. This represents SDG 3 - “Ensure healthy lives and promote well-being
the core principle and forms the basis of the Bank’s CSR for all at all ages”
policy.
1. Menstrual Hygiene – Project for preventive
The Bank, guided by the founding principles of its CSR policy, healthcare measures for Women
takes and encourages initiatives aimed at improving the lives The Bank undertook an extensive awareness
and living conditions of the vulnerable sections of the society campaign on menstrual hygiene and utilized
besides lending support to the society’s endeavors aimed at the services of ‘Live For Others – Being Helpful
making the world a better place to live in. Foundation’, an MCA registered organization, for
project implementation, as per the following details:
In line with the same, the bank continued its ‘social • Campaign covered all the 20 districts of J&K.
investment’ by undertaking projects of varied nature to • Sustainability ensured through community
alleviate the hardships of different sections of the society involvement by way of collaborating with
and address issues of environmental sustainability. In turn, volunteers, educational institutions, local
the bank reaped benefits in the form of increased emotional stakeholders including panchs, sarpanchs,
equity, brand-connect and goodwill. SHGs, female leaders etc.
• Impact and effectiveness ensured by imparting
During the financial year FY2023-24, the bank continued awareness in local languages/dialects.
to intervene and enhance value creation in the society • 100 Awareness camps/seminars (Around 5
through CSR activities in consonance with its mission of in each district) with participant age groups
‘Serving to Empower’. While CSR initiatives undertaken varying from 12+ girls to women up to the age
during FY2023-24 have, directly or indirectly, benefitted of 52. Thousands of girls and women benefit
hundreds of thousands of people across UTs of J&K and from the initiative.
Ladakh, some eco-centric activities have contributed • Focus was on removing shyness, education
towards reducing carbon footprint and encouraging green & awareness regarding women hygiene,
energy solutions. The statutory disclosures with respect to removing myths & following scientific approach
the CSRESG   Committee of the Board, including a report on and, understanding the benefits of sanitary
the CSR, forms part of this report at Annexure 1. napkins and carrying this message forward.
• Free distribution of 500000 (Five Lac)
Key areas of intervention under the CSR programme: Ayushman Bharat sanitary pads/napkin during
a) Healthcare & Hygiene the course of the campaign.
b) Education
c) Skill Development & Livelihood Generation 2. NAJAATH – An initiative for Tobacco and Drug
d) Community Development/Welfare free Society
e) Ecology & Environment Conscious of the fact that Jammu and Kashmir is
f) Rural Development facing a growing menace that threatens not only the
g) Promotion of Sports health and well-being of its residents but also the
h) Promotion and Preservation of Art, Culture & social fabric of the community, J&K Bank initiated
Heritage a campaign for a drug and tobacco free society in
i) Animal Welfare
collaboration with Department of Health Services
j) Welfare of War Veterans, Ex-Servicemen and their
and Department of Education. The project was
families
initiated on a pilot-basis in twin cities of Jammu
CSRESG Committee of the Board and Srinagar through SPVLG Foundation. The major
• Ms. Shahla Ayoub Chairperson highlights of the initiative were:
• Mr. Baldev Prakash Member
• Mr. Umesh Chandra Pandey Member Awareness and Prevention
• Mr. Anil Kumar Goel Member • Awareness Programmes and targeted psycho-
• Mr. Anand Kumar Member educational sessions within the community
• Mr. Sudhir Gupta Member through Community Counselling Centres
(CCCs) and educational institutions.
• Community outreach programs to educate
individuals and families about the detrimental
effects of drug and tobacco use.
• Utilizing mass media platforms, such as FM

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 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

radio, TV (preferably DDK) and social media, healthcare facility in the region catering to
to amplify the message of a drug and tobacco- over 1.5 million patients annually) will help in
free lifestyle. Directorate of Health Services, transportation of patients with critical injuries
J&K provided relevant/ professional resource as the facility of a critical care ambulance was
for the purpose. lacking at SKIMS Soura. Further, owing to the
• Collaboration with local health authorities huge patient footfall at the hospital from all
to maximize the impact of the awareness over the region, requirement of such a facility
campaign. was the need of the hour as it can reasonably
improve the health-care infrastructure of the
Treatment and Support hospital, thereby bringing relief to hundreds,
• Introduce the patients to accessible and and even thousands, of patients annually.
proven-treatment-options.
• Creation of a referral network for individuals 4. Providing Medical and Allied equipment to SKIMS
requiring specialized care. Soura and GMC Jammu
• Counselling and psychological support to One of the key components of an efficient healthcare
foster long-term recovery through CCCs, which system is the availability of medical and allied
provide safe and secure drop-in space for drug equipment. These tools are the lifeline of healthcare
users in the community. These centres had providers, aiding in diagnostics, treatment, and
the provision of screening, assessment and patient care. In a region as geographically varied
psycho-social counselling and provided referral as J&K, having access to modern medical and allied
and linkage to treatment and rehabilitation equipment is crucial for diagnosing and managing a
services for drug dependents. wide range of health conditions. This includes testing
• Providing nicotine patches to chronic machine, patient-transport trolleys, privacy screens
smokers (identified by the concerned Health etc. as well as surgical instruments that enable
Department) to aid and encourage them to quit intricate surgeries. Moreover, the need extends to
smoking. basic hospital amenities likes seating benches, fans,
furniture etc. which ensure the overall quality of
3. Ambulances to GMC Jammu and SKIMS Soura healthcare services.
Proper healthcare is essential for the well-being In this connection, Bank funded the project of
and prosperity of any region, and this importance providing various medical and allied equipment
is magnified in a place like Jammu and Kashmir to SKIMS Soura and GMC Jammu. The equipment
where climatic conditions can be harsh and access includes:
to healthcare is often challenging due to the • Machinery/Equipment for Department of
rugged terrain. Beyond emergencies, healthcare Urology Super Speciality Hospital GMC Jammu
is necessary for routine medical needs, maternal • 200 + wall and pedestal fans for GMC, SMGS
and child health, and the management of chronic Hospital, Bone & Joint Hospital, Super
diseases and with growing population, the need for Speciality Hospital, State Cancer Institute
augmentation of healthcare facilities becomes all the • One Gastro-scope for the Department of
more important to cater to the diverse healthcare Gastroenterology, SKIMS, Srinagar
needs of the population. Although Government-run • 40+ privacy screens for wards at SKIMS,
healthcare facilities are providing all the required Srinagar
services but the huge footfall of patients affects the • 80-100 seating benches for attendants visiting
overall quality of the service. SKIMS, Srinagar

Carrying forward its legacy of complimenting 5. Providing hearing aids and speech therapy to
Government’s efforts in augmenting the overall persons with hearing & speech impairment
health infrastructure, Bank provided two ambulances Catering to the needs of the specially-abled is of
to GMC Jammu (and its associated hospitals) and paramount importance in building an inclusive and
one ambulance to SKIMS Soura. equitable society. By providing equal opportunities
and accessibility, we not only empower individuals-
• One of the two ambulances (basic patient- with-disabilities but also enrich our communities. It’s
transport vehicle) required at GMC Jammu a matter of social justice and human rights to ensure
is being used at State Cancer Institute that people-with-disabilities can participate fully in
GMC Jammu while the second (critical care all aspects of life, including education, employment,
ambulance) at Super Speciality Hospital and social interactions. In the case of hearing and
Jammu. Catering to a huge patient inflow, speech impaired individuals, the significance of
with patients from far off districts like catering to their needs is even more pronounced.
Rajouri, Poonch, Doda, Kishtwar too relying Communication being a fundamental human need,
for specialised treatment on the prestigious these individuals face unique challenges.
GMC and its associated hospitals, improving
ambulance availability related services is of In this connection, Bank collaborated with ‘Voluntary
immense importance. Medicare Society’, a well-established and credible
• The fully-equipped critical care ambulance organization serving the cause of specially-abled in
required at SKIMS Soura (the largest Kashmir for the past 50 years, to conduct hearing

80
 and speech assessment of the people and provide Trolleys and Foldable Wheelchairs to different
free hearing aids to the needy and deserving. The government-run hospitals in the twin UTs of J&K
major highlights of the project include: and Ladakh and augment the existing health-infra.
• Six (06) speech & audiology medical camps at Under the project, the Bank provided the following
different location in Kashmir during which ENT items to the District Hospitals of J&K & Ladakh and
specialists & speech therapists examined the GMC Jammu/Srinagar and its associated Hospitals;
persons with hearing and speech impairments.
• More than 500 people in Kashmir region were • 53 Hydraulic Casualty Trolleys
provided free-of-cost hearing-aids. • 179 Stretcher-on-trolleys
• Community based and Institutional Speech • 197 Foldable wheelchairs
Therapy provided to persons with speech The initiative reached all the districts and allowed
impairment by certified Speech Therapists to augment the Health Infrastructure especially in
over a period of six months. the rural and far flung district hospitals in the larger
• 5000+ potential beneficiaries (500+ direct interest of patient care.
beneficiaries of hearing aids and over 4500
beneficiaries of assessment camps and 8. Ambulance to Health Centre of SKUAST-K
speech therapies). Good healthcare contributes immensely towards a
healthier and more productive society by ensuring
6. Construction of mechanized Sewage Treatment timely and effective medical interventions,
Plant (STP) at District Hospital Bandipora promoting disease prevention and health
Importance of Wastewater treatment assumes education, enhancing life quality and expectancy,
more significance in the contemporary societies reducing the burden of illness and disability, and
especially in developing nations like India. The main supporting socio-economic development. Although
goal of wastewater treatment facilities is to protect Government-run healthcare facilities are providing
people as well as local ecosystems, from harmful all the required services but the huge footfall of
elements found in wastewater. Water treatment patients affects the overall quality of the service. In
facilities are designed to speed up the process of this context, realizing the need at the Health Centre
purifying water because the natural process can’t of SKUAST-K, J&K Bank in the FY2023-24 provided
keep up with the amount of waste society produces. one ambulance equipped with basic life-saving
And this holds all the more importance for public equipment to the Centre.
facilities like hospitals. It wouldn’t be amiss to mention that the Health
In the aforementioned context, the 150 bedded Centre of the University at Shalimar campus not
District Hospital of Bandipora, located in a low- only provides healthcare facility to the 5000
lying marshy land just half-a-kilometer away from students and 2000 employees of the University,
the banks of the Wullar Lake, was provided support but also caters to the local community including the
under CSR for setting up a Sewage Treatment Plant. surrounding catchment area of Shalimar, Ishber,
The lake and its surrounding marshes provide habitat Tailbal and inhabitants of Foreshore Road.
to important natural wildlife, thereby making it an
ecologically hyper-sensitive area. Corporate Social 9. Medical Equipment to Maha Bodhi Karuna
Responsibility (CSR) in the context of environmental Charitable Hospital
sustainability, particularly in wastewater treatment, One of the key components of an efficient
is imperative in addressing the global challenge healthcare system is the availability of medical
of water pollution and resource depletion. Given and allied equipment. These tools are the lifeline
the escalating strain on water bodies due to of healthcare providers, aiding in diagnostics,
various modern-day factors, advanced treatment treatment, and patient care. In a region like Ladakh
technologies like setting-up of Sewage Treatment with difficult geographical terrain, having access to
Plants can contribute a lot to the preservation of modern medical and allied equipment is crucial for
biodiversity, public health, and the overall well- diagnosing and managing a wide range of health
being of communities. conditions. In this regard, Maha Bodhi International
Meditation Centre (MIMC) is, among other projects,
7. Patient Transport Trolleys and Wheelchairs running Maha Bodhi Karuna Charitable Hospital
to the Govt./ Semi Govt. Hospitals of J&K and at Ladakh since 1999. The 30-bedded Charitable
Ladakh Hospital at Choglamsar Ladakh is spread over
The importance of a standard healthcare system an area of 28328 mt2 and is one of MIMC’s many
in any society cannot be over-stated and given service projects wherein free external health and
the huge load on the existing government-run medical services are provided to the needy. Maha
healthcare facilities especially in J&K and Ladakh, it Bodhi International Meditation Centre (MIMC)
has become imperative for responsible corporates has been serving the people of Ladakh through
like J&K Bank to step-in and compliment and support their various initiatives be it in education, disaster
the efforts of the Government through innovatively relief, sustainable development, humanitarian
conceived projects under Corporate Social services and most importantly Healthcare. Having
Responsibility. With this understanding and context, ascertained the on-ground work carried out by
a project was devised to provide Patient-Transport MIMC, Bank provided surgical equipment to the

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 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Urological Department of their charitable hospital in these facilities alleviate the financial burden on
the FY2023-24. The project is in line with the Bank’s families who might otherwise incur additional
larger objective of supporting and augmenting the costs for temporary accommodation. In essence,
healthcare infra of J&K and Ladakh for the welfare the incorporation of attendant residential sheds
of people. in hospitals is an essential step towards creating a
holistic and patient-centred healthcare system that
10. Medical equipment to Swami Vivekananda recognizes the significance of familial support in the
Medical Mission Hospital healing process.
Swami Vivekananda Medical Mission (SVMM) is
running ‘Swami Vivekananda Charitable Hospital’ Contributing towards this important aspect of
since 1970. The 40-bedded Charitable Hospital at Healthcare, Bank supported construction of pre-
Amphalla Jammu is spread over an area of almost fab structures (eight units) at District Hospital
10 Kanals and is one of SVMM’s many service Kargil for the overnight stay and convenience of
projects wherein free external health and medical patients and their attendants visiting the hospital
services are provided to the needy. The Hospital from far-off places. The structure will facilitate
is doing a commendable job in so far as catering accommodation of 32 people with each of the
to the healthcare needs of the local population is eight units having a capacity of accommodating
concerned. The organization is making continued 04 people. The individual units come with basic
efforts to augment its existing infra & services and facilities like kitchen, bathroom and sitting/sleeping
provide the best healthcare services to the patients. area to provide a decent, secure, comfortable and
The Hospital has established its credibility by convenient stay along with ensuring privacy.
serving the people through their specialized medical
faculties and providing free healthcare services to Along with enhancing the level of accessibility
thousands of needy patients every year. of Govt. Health Services to all, especially those
Augmentation of healthcare facilities and targeted coming from economically poor background and
CSR interventions in important areas can have residents of remote border areas of Kargil district
a profound impact on improving healthcare of Ladakh UT, the pre-fab structures in a location
accessibility, quality, and outcomes in the region like Kargil becomes even more pronounced given
which will ultimately contribute to the betterment of the geographical remoteness and extreme climatic
the lives of the people. In this regard, acknowledging conditions of the region. Bank’s support in providing
the hard-work of the SVMM Hospital, Bank in the residential accommodations for attendants/patients
FY2023-24 provided medical equipment to the visiting District Hospital Kargil is one more socially
surgical unit of the Hospital under CSR. relevant project undertaken in the Healthcare
sector.
11. Construction of Ladies Washroom at District
Court Complex Jammu B. Education
Bank provided support for construction of a ladies’ SDG 4 - “Ensure inclusive and equitable quality
washroom at District Court Complex Jammu, to education and promote lifelong learning opportunities
provide a clean and hygienic toilet facility to the for all”
ladies visiting the Court for various purposes. The
space will also serve as a safe toilet space for women 1. Financial Literacy/Awareness Campaign
in a busy public place like Court Complex. The project Financial Literacy is combination of financial
is also in line with objectives of Swacch Bharat awareness, knowledge, skills, attitude, and behaviour
Abhiyaan and fulfils Sustainable Development Goal necessary to make sound financial decisions and
pertaining to “ensuring access to sanitation for all”. ultimately achieve individual financial well-being
and develop a sustainable financial system. Being
12. Construction of pre-fab patient/attendant sheds financially aware helps people improve their
at District Hospital Kargil understanding of financial products, concepts and
One of the key components of an efficient risks and through information, instruction and
healthcare system is the availability & provision objective advice, develop the skills and confidence
of attendant residential sheds in hospitals which to become more aware of financial risks and
serves as a critical and compassionate necessity opportunities, to make informed choices, to know
in the healthcare infrastructure. These facilities where to go for help and to take other effective
serve as a supportive haven for family members actions to improve their financial well-being.
and caregivers who are accompanying patients
during their hospitalization. The emotional and Bank in the FY2023-24 utilized the modern means of
psychological well-being of patients is significantly communication in disseminating important financial
influenced by the presence of loved ones, offering information which not only ensured the widest
comfort, reassurance, and a sense of security. possible reach (over 5 million in aggregate), but
Attendant residential sheds play a pivotal role also reiterated Bank’s resolve in being a responsible
in fostering a healing environment by ensuring corporate citizen. Bank conducted the campaign for
that family members can stay close to their ailing basic banking services, social security services, cyber
relatives, especially during extended treatment security, safe digital banking etc. through:
periods or critical phases of illness. Moreover,

82
 • 2D informative videos which were shared on Bank’s Bank, in the FY2023-24, collaborated with
social media platforms like Facebook, Instagram ‘Sanjeevani Sharda Kendra Trust’, an NGO
and YouTube. working towards safeguarding the socio-cultural
• Running audio capsules on All India Radio and and educational heritage with a special focus on
the FM Stations operating in J&K and Ladakh. educational empowerment of children and youth, to
• Awareness through TV programmes on setup library-cum-reading rooms in Kashmir Valley
Doordarshan. with identified locations being Ranipora (Anantnag),
Vassu (Kulgam), Kakaran (Kulgam), Sheikh Pora
2. Establishment of Library at Zanskar, Ladakh (Budgam), Veervan (Baramulla), Durga Mandir (Uri),
J&K Bank collaborated with Tehsil Legal Services Pando Mandir (Lagama-Uri) and three in Srinagar
Committee / Munsiff Judicial Magistrate 1st Class (Badami Bagh, Maharaj Gunj & Indira Nagar).
Zanaskar to establish a public library at Zanskar, a
remote sub-division of district Kargil in the Union 5. Establishing Smart classrooms and computer
Territory of Ladakh. lab at SMVD Gurukul and SMVD College of
Functioning 24x7 and accessible against a nominal Nursing
registration charge for the students, the library Corporate Social Responsibility (CSR) initiatives
has already started playing an important role in aimed at promoting education across different
educational development of local communities by geographies serve as a transformative force,
providing access to information and resources, fostering sustainable development and societal well-
supporting literacy and education, promoting being. Ensuring the provision of quality education in
lifelong learning and serving as a community remote areas is imperative for fostering inclusive
gathering space. Around 10000 people from a development and bridging societal disparities. By
total population of around 20000 souls of the extending educational opportunities to under-
three blocks of the Zanaskar Tehsil are expected to served regions, we not only empower marginalized
benefit from the initiative. communities but also bridge educational disparities
and unlock the potential of underprivileged youth
3. Establishing Smart Classrooms in the University to contribute to the broader socio-economic fabric.
of Kashmir Quality education in remote areas also breaks the
To ensure that quality education is provided cycle of poverty, enhances social mobility, and
even in the remote and far-flung areas, J&K Bank cultivates local talent, ultimately nurturing a skilled
collaborated with the University of Kashmir, the workforce that can address regional challenges and
premier Educational Institution of Kashmir, to drive sustainable growth. It is a crucial step toward
extend the assistance of its experienced faculty building resilient communities and fostering a more
to all its affiliated colleges and satellite campuses equitable and interconnected world
in remote and far flung areas through advanced
technological tools by which tens of thousands Continuing its support in the field of promoting
of students studying in satellite campuses and education, Bank collaborated with Shri Mata Vaishno
affiliated educational institutions will be benefitted. Devi Charitable Society (SMVDCS) to establish;
Under this initiative, smart-classrooms with remote • Ten Smart Class Rooms (08 in SMVD Gurukul
connectivity were established in seven Departments and 02 in SMVD College of Nursing)
of Kashmir University, which will enable these • One Computer Lab at SMVD Gurukul
departments to extend teaching assistance to
remotely located institutions where such subjects 6. Contribution towards construction of Girls Hostel
are offered and will solve their problem of by Sewa Bharati at Gandoh Bhalessa, Doda
inadequate faculty to a reasonable extent. In the remote and hilly region of Gandoh Bhalessa,
The project aimed towards “promoting education” Doda, located approximately 220 kms from Jammu,
by utilizing advanced means of technology and local families faced formidable barriers in ensuring
shall prove beneficial in addressing the disparity in higher education for their children. Further, the
quality of education in cities & villages. region’s geographical isolation and economic
challenges forced students from far-flung areas
4. Establishing Libraries at 10 locations in Kashmir to endure daily commute of three to four hours to
Libraries play a pivotal role in society by serving reach colleges thereby placing a significant financial
as repositories of knowledge, culture, and history. burden on impoverished families and more often
They provide equitable access to information and than not, owing to unaffordability, students dropped
resources for people of all backgrounds thereby out of their studies which exacerbated illiteracy and
fostering literacy, education, and intellectual poverty within the area. This created a vicious cycle
growth. Libraries promote lifelong learning, critical of limited opportunities and limited growth.
thinking, and research skills, serving as hubs for
community engagement and cultural enrichment. To address this issue, ‘Sewa Bharati Jammu’, in
Additionally, they play a crucial role in preserving line with their parent organization’s objectives,
and archiving valuable literature and documents, constructed a single story girls’ hostel (with a
ensuring that future generations have access to the carpet area of 5643 ft2) in this challenging terrain of
collective wisdom of humanity. Gandoh Bhalessa, which, with its current capacity of
30 students, provides food, clothing, and boarding &

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 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

lodging facility to the needy girls of far-flung areas Army Goodwill School, Harka Bahadur (named
thereby facilitating education and empowering girls after Subedar Harka Bahadur, MVC of 1/5 Gorkha
of the region. In order to cater to the huge inflow Regiment) is one of the many Goodwill schools
of requests from students for accommodation, the operating under the auspices of Indian Army in the
organization expanded the capacity from 30 to 60 harsh and difficult geographical area of Kargil and
with the support of J&K Bank. is serving the educational needs of under-privileged
students of border villages. Established in 1995,
The hostel enables the girls of far-flung region to the school is located six kilometres from Kargil and
have equal opportunities in education. The hostel is has classes up to 10th standard with 541 under-
serving as a lifeline for economically disadvantaged privileged students currently enrolled. Lack of
girl students by eliminating the obstacles that hinder transport facility hindered enrolling more students
their access to education thereby enabling them as the daily commute in the harsh terrain often was
to aspire for a brighter future free of poverty and acting as a deterrent.
illiteracy. This not only helps promotion of education
but empowers the community in general and women Realizing the need, Bank provided a School Bus
in particular. Expanding the capacity of the hostel to the school for the welfare of the children. A
helped extend the opportunity and facility to more dedicated school bus will ensure safe and reliable
such deserving girls from under-privileged regions transportation, overcoming geographical barriers
and sections. and enabling a higher attendance rate thereby
promoting inclusivity by making education
7. School-bus to Humanity Welfare Organization accessible to all. It also enhances the overall safety
helpline’s Zaiba Aapa School for specially-abled of students, especially during adverse weather
students conditions, contributing to a more conducive
‘Humanity Welfare Organization Helpline’ is a not- learning environment. This initiative not only
for-profit organization established in the year 2003 facilitates academic progress but also emphasizes
with the objective of working towards the welfare of the importance of education by eliminating
persons with disabilities with a focus on specially- transportation hurdles, making it clear that every
abled children. The NGO, apart from running various child’s educational journey is valued. Moreover, the
skill development and employment generation school bus serves as a symbol of commitment to
programmes for specially-abled youth also deals the community, reinforcing the idea that education
with in-house education and rehabilitation of is a cornerstone for individual growth, community
around 130 children with multiple disabilities like development, and overall societal progress in the
hearing, speech & visual impairment, cerebral palsy, unique context of Ladakh.
autism, down’s syndrome etc. through its school
namely “Zaiba Apa Institute of inclusive education”. 9. Smart classes in Sainik School Nagrota
The school imparts free formal education and other In the contemporary world, the integration of
varied specialized training programs like Braille modern tools and technology has revolutionized the
for Children with Blindness, sign language courses educational landscape. These tools, ranging from
for the hearing & speech impaired and activities of interactive software to online platforms, enhance
daily living trainings for the children with mental the learning experience by providing dynamic
disabilities. In addition, physiotherapy and extra- and engaging ways to acquire information. They
curricular activities like sports, music, craft and promote collaboration, creativity, and adaptability,
mobility trainings are also provided to the children. preparing students for the challenges of a rapidly
Acknowledging the effort and hard-work of the evolving globalized society. The use of modern
organization, Bank provided one 30-seater school tools in education not only facilitates access to a
bus to the school for safe and secure to-and-fro vast pool of information but also cultivates a tech-
transportation services of the specially-abled savvy and innovative mind-set. As we navigate
children. The project is Bank’s humble contribution the complexities of the 21st century, the symbiotic
towards ensuring care of such disadvantaged relationship between education and modern tools
sections of the society. becomes increasingly crucial, laying the foundation
for a knowledgeable, skilled, and adaptable citizenry.
8. School Bus to Army Goodwill School Harka Further, as per the guidelines of the New Education
Bahadur Kargil Policy (NEP) 2020, much importance has been
In Ladakh, where the geographical remoteness and given to the integration of technology and use of
harsh climatic conditions pose significant challenges, smart classrooms and smart boards in the teaching
Army Goodwill Schools serve as vital educational process.
institutions, bridging the gap in access to education.
These schools have achieved remarkable success In this context, Bank supported establishment of
in providing education and fostering development eight smart classrooms in Sainik School Nagrota
in challenging environments and have significantly for providing education to the students by utilizing
increased literacy rates and educational access the modern means of teaching. Established in 1970,
thereby contributing to the empowerment of local Sainik School Nagrota is located at the serene
communities. location on the banks of river Tawi. The school is
affiliated with CBSE with 500 cadets currently

84
 enrolled and is the northern most & only such with the Sustainable Development Goal 4 which aims
boarding school in the UTs of J&K and Ladakh. For to ensure inclusive and equitable quality education
the last more than five decades, the school has been and promote lifelong learning opportunities for all.
doing a yeoman’s service by preparing students This goal supports the reduction of disparities and
academically, physically and mentally for entry into inequities in education, both in terms of access and
the National Defence Academy (NDA) and to join quality.
the Indian Armed forces as Officers. The school has
consistently contributed towards its primary role C. Skill Development & Livelihood Generation
as a feeder institution to the Armed Forces and SDG 1 –”End poverty in all its forms everywhere”
contributing in Nation Building by producing well- SDG 8 – “Decent work and economic growth”
disciplined citizens.
1. Upgrading Infrastructure of Rural Self-
Bank’s initiative is aimed at promoting education Employment Training Institutes (RSETIs)
as such initiatives serve as a transformative force JKBRSETI Society is running 12 RSETIs in 12 Districts
in fostering sustainable development and societal of the UT of J&K, providing the necessary skill and
well-being. re-skill development programmes/trainings to
unemployed youth especially in rural areas. Every
10. School bus and smart classes to Chinar Kashmir’s year, over 4000 unemployed youth get training
hostel for orphan and destitute children from these 12 RESTIs in varied fields. RSETIs provide
Education plays a pivotal role in shaping individuals a suitable training environment and a well-equipped
and societies, serving as a powerful catalyst for training facility which is of great importance to meet
personal and collective growth. By fostering the desired goals.
critical thinking, knowledge acquisition, and skill In order to construct the new RSETI buildings,
development, it empowers individuals to navigate improve the existing facilities and widen the scope
complexities, make informed decisions, and of the trainings, CSR support to JKBRSETI Society
contribute meaningfully to their communities. was provided for:
Moreover, education fuels economic progress by • Construction of RSETI building at Poonch and
nurturing a skilled workforce, promoting innovation, Shopian
and fostering an environment conducive to • Water purifiers, printers and salon chairs to all
societal advancement. It forms the cornerstone the 12 RSETIs
of progress, equity, and sustainable development,
serving as a beacon of hope for a brighter and more 2. Homestay Entrepreneurship Training Programme
inclusive future. However, ensuring equal access in collaboration with SIDBI (Small Industries
to education for all still remains a challenge in our Development Bank of India)
society and various Non-government organizations The scope for tourism in Kashmir is immense
are working hard to bridge this gap and ‘Child and with increasing interest in exploring off-beat
Nurture and Relief Kashmir (CHINAR Kashmir)’ destinations, Homestay Tourism is emerging as a
is one such organization. The organization was solution for having basic accommodation services at
established in 2004 with a mission to support cheaper rates throughout the geography. Keeping
orphans, destitute children, women, and youth that in view, J&K Bank, in collaboration with SIDBI
in Jammu & Kashmir. CHINAR Kashmir operates and their technical partner KPMG & implementing
several innovative programs aimed at the social and agency ‘JKDAG’, undertook a project for developing
economic upliftment of women and youth, ensuring six off-beat tourist destinations by training 150
familial care and education for destitute children, locals for establishing Homestays thereby serving
and offering material support to families in need. the dual purpose of livelihood generation and
In addition to their core programs, they have been tourism promotion.
deeply involved in disaster relief and rehabilitation
efforts in Kashmir since 2004. The project was conceived with a vision to create a larger
socio-economic impact as the initiative not only helped in
CHINAR Home Programme is a facility run by the up-skilling the stakeholders but also generate livelihood
organization since 2004 for orphaned and destitute opportunities in J&K. The project highlights include:
children in their hostel in Khanpora Budgam to
provide care and support to children who have lost • A 21-day classroom training and 7-day practical
their parent(s). These destitute and orphan children training to 150 aspiring/interested trainees with
mostly belong to the rural areas of Kupwara, a focus on operating and managing the homestay
Bandipora, Budgam, Kishtawar & Kulgam and are business, developing the entrepreneurial skills,
taken care of in a familial environment by CHINAR. digital/financial literacy, customer handling, soft
The children are provided quality education in good skills and modules like housekeeping, food and
private schools besides in-house tuition and all beverage service, food and beverage production,
their expenses are borne by CHINAR including the front office management, digital marketing, fiscal
transportation of children to and from the schools. management, opportunities of and approach to
J&K Bank provided support to CHINAR Kashmir credit linkage, etc.
for one school bus and four smart classes to be • Assessment and Certification of trainees by Tourism
established at the hostel. The project is also in line and Hospitality Sector Council (THSC), a regulatory

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 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

body for providing training and assessment for the for the beneficiaries to guide them periodically to
tourism and hospitality sector. ensure successful establishment of their Business
• Registration with Department of Tourism, Ventures and scaling up businesses.
E-profiling, and Creation of a Digital catalogue for • Scaling up of 03 existing Enterprises.
successful trainees.
5. Livelihood generation project through walnut
3. Entrepreneurship-cum-Skill Development plantation in Kishtawar
Programme in collaboration with the (NIESBUD) Corporate Social Responsibility (CSR) interventions
Ministry of Skill Development and Entrepreneurship, in the field of ‘livelihood generation’ have had
Govt. of India a transformative impact on communities by
In yet another endeavour to address shortage of contributing towards their social and economic
skilled manpower with a larger objective of meeting development. The initiatives extend beyond
the mounting needs and demands of the economy, philanthropy, as they address the root causes of
J&K Bank collaborated with NIESBUD (National poverty by fostering self-sustenance. The instant
Institute for Entrepreneurship & Small Business project aimed to uplift the economic status of 100
Development), Ministry of Skill Development socially / economically backward families in Kishtwar
and Entrepreneurship, Govt. of India for a joint District by assisting them to establish mini-orchards
intervention on an Entrepreneurship cum Skill of walnut on their lands. Implemented by ‘Sewa
Development Programme (ESDP) in Jammu and Bharti Jammu’, the plantation helped create local
Kashmir. The project saw 300 youth in both Jammu livelihood opportunity for the families and break the
and Kashmir regions being trained for undertaking vicious cycle of poverty in the region and improve
entrepreneurial journey. their economic status by helping them establish a
The project highlights include; sustainable source of income.
• Capacity Building of 300 participants on
Entrepreneurship Development Such initiatives empower local communities to
• Linking up 100 participants with suitable wage cultivate orchards, creating a renewable source of
employment income and improving overall livelihoods. Beyond
• Mentoring and Handholding Beneficiaries resulting economic benefits, these projects contribute to
into establishment of 10 Nano and Micro Enterprises environmental sustainability as trees enhance
• Extended Mentoring and Handholding Support to biodiversity and promote ecological balance. CSR
established enterprises for 2 years through post initiatives centered on fruit tree provision exemplify
mentoring support to Provide Escort Services a commitment to social and environmental
for the beneficiaries to guide them periodically to responsibility, demonstrating how businesses can
ensure successful establishment of their Business play a crucial role in fostering long-term, positive
Ventures and scaling up businesses. impacts on livelihoods while simultaneously
• Scaling up of 05 existing Enterprises contributing to the well-being of the planet.

4. Entrepreneurship-cum-Skill Development D. Community Development/Welfare

Programme in collaboration with the NIESBUD, 1. Support to Life Help Centre for Child Care – a school
Ministry of Skill Development and Entrepreneurship, for specially-abled children
Govt. of India (in Ladakh) ‘Life Help Centre for Child Care’, a Srinagar based
Bank undertook a project in collaboration with not-for-profit organization established in the year
NIESBUD (National Institute for Entrepreneurship 2008 with the objective of working towards the
& Small Business Development), Ministry of Skill welfare of special-children, was provided various
Development, Government of India launched a items/equipment required for the care and therapy
separate Entrepreneurship cum Skill Development of the special-children. The Bank’s support will
Programme (ESDP) in Ladakh to strengthen the benefit around 35 special children, enrolled in the
skill development ecosystem in Union Territory. facility, suffering from various mental and genetic
The collaboration saw 100 youth from the region disorders like hearing, speech & visual impairment,
(50 each in twin districts of Leh and Kargil) being cerebral palsy, autism, Down’s syndrome etc. The
trained/ skilled/ up-skilled. The programme items provided include:
highlights include: • Occupational therapy equipment
• Surveillance setup
• Capacity Building of 100 participants on • Swings and games
Entrepreneurship Development • Cerebral Palsy Chairs and machine
• Linking up 50 participants with suitable wage • Music system
employment • Inverter and battery
• Mentoring and Handholding to Beneficiaries • Exercise equipment
resulting into establishment of 5 Nano and Micro
Enterprises 2. Upgrading the facilities of orphanages, institutes for
• Extended Mentoring and Handholding Support to specially-abled children and old-age homes run by
established enterprises for 2 years through post Department of Social Welfare J&K
mentoring support to Provide Escort Services Caring for orphans and specially-abled children is of
paramount importance in society. These are among

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 the most vulnerable, often lacking the support 4. Construction of Fish Sale Outlet at Aspirational
and resources that others may take for granted. District Kupwara
Providing them with proper care, attention, and Kupwara is one of the 117 Districts chosen by
opportunities is not just a moral obligation but also NITI Aayog under the ambitious National Level
crucial for their well-being and development. Caring Aspirational District Programme launched by the
for them not only meets their basic needs but also Prime Minister Narendra Modi in January 2018.
nurtures their self-esteem and confidence, enabling The Aspirational District Programmes aims to
them to lead more fulfilling lives. quickly and effectively transform these most under-
developed districts across the country. With States
Apart from being a moral imperative, setting up as the main drivers, this program focuses on the
special facilities for these children is a key aspect of strength of each district, identifying low-hanging
providing adequate care to this vulnerable section fruits for immediate improvement and measuring
of the society. These facilities cater to the specific progress by ranking districts on a monthly basis.
needs of the beneficiaries, whether it’s accessible Kupwara being a remote, border district has
infrastructure, specialized education, or tailored traditionally seen slow pace of development
healthcare services. Such facilities also create a safe and demands Bank’s attention. Pertinently, the
and inclusive environment where these children can backwardness of the district is the very reason that
thrive, learn, and grow. Kupwara has been identified by NITI Aayog as one of
the Aspirational District.
To contribute in this sector, Bank joined hands
with Department of Social Welfare of Jammu and District Administration Kupwara, under the auspices
Kashmir to provide certain amenities and augment of the Aspirational District Programme, had
the existing infra-structure of their special-care identified a wide range of projects/ initiatives that
institutions be it orphanages, special schools, are of vital importance for overall development of
juvenile rehab homes or senior citizen homes by the district, particularly in Health, Education and
providing funds for: Agriculture and allied sectors with construction of
a Fish Sale outlet as one of the projects. The Sale
• Open gym/recreational items for facilities Outlet will give a needed push in harnessing potential
at Jammu and Srinagar orphanages/special of Fisheries to evolve as a sub-regional economy of
schools the area, the benefits of which will percolate to the
• Two computer labs, one each at Srinagar and common public of the district at large.
Jammu orphanages
• Braille printer (with software) for special- J&K Bank collaborated with Aspirational District
children of residential school for blinds at Administration for construction of the Fish
Jammu Sale Outlet with an aim to localize Sustainable
• Recreational items for day-care old-age homes Development Goals leading to the progress of the
at Srinagar & Jammu District and the Nation.

3. Dustbins to DC office Srinagar 5. Community development program of ST Village

Corporate Social Responsibility (CSR) interventions at Ganderbal
play a pivotal role in promoting environmental Supporting socially and economically under-
sustainability and civic hygiene. By incorporating privileged sections of the society crucial for fostering
responsible waste management practices into the inclusive development and societal harmony,
CSR initiatives, socially-responsible corporates Kashmir, marked by its diverse demographics, faces
contribute to the creation of cleaner and healthier challenges related to economic disparities and social
communities. Proper waste disposal and segregation inequalities. By extending support to backward
mitigates the adverse impact of indiscriminate categories, which may include marginalized
littering on ecosystems and public health. Through communities and individuals facing economic
such interventions, Bank has always demonstrated a hardships, there is an opportunity to bridge the
commitment to social and environmental well-being gap and ensure that development initiatives reach
and contributed towards broader societal goals. all sections of the population. Initiatives aimed at
By actively engaging in the provision of dustbins, empowering such communities not only enhances
CSR initiatives become a tangible embodiment their socio-economic status but also contributes
of corporate responsibility, fostering a positive to the overall progress of the region by promoting
and sustainable impact on local environments and a sense of inclusivity and social justice along with
communities. strengthening the foundations of a more equitable
society.
Bank in the FY2023-24 provided dustbins to D.C
Office Srinagar for the convenience of the public Bank, in the FY2023-24, extended support to over
visiting the office every day. The activity, apart from 1000 households belonging either to ST Community/
promoting cleaner and hygienic environment also Priority Households by providing them sustainable
contributes towards community development. lighting solutions. Each of the over 1000 households
were provided with a solar-lantern thereby catering
to multiple aspects of the community which

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includes promotion of sustainable energy solutions students and staff members of these prestigious
and helping the community to avoid unhealthy & educational institutes while contributing towards
pollution causing means of lighting. The project was reducing carbon emissions in the campuses of these
implemented by ‘Mool Sustainability and Research institutions.
Centre’.
2. Development of Modern Bus Stops/ Passenger
6. Seating Benches to various institutions Sheds for Srinagar & Jammu Smart City Electric
Utility of seating benches in public spaces like Bus Projects
court complexes & district administrative offices Srinagar and Jammu are being developed as the
especially in the waiting spaces is of great value in two Smart Cities in the UT of J&K and both the
terms of providing comfortable seating facilities to cities have been actively working on their Smart
public/ litigants visiting these offices. The benches City projects to enhance urban infrastructure
while being available to all prove of immense benefit and services. The Smart City proposals include
to the women and specially-abled persons, especially initiatives to improve transportation, solid waste
in light of the fact that litigations and court cases management, water supply, and e-governance,
are hectic and time consuming, and availability of among other aspects. The projects aim to leverage
comfortable seating arrangement can act as a great technology to enhance the overall quality of life for
relief. its residents, promote sustainable development,
and create a more efficient and responsive urban
Similarly, the facility is of great importance in environment. Implementation of smart solutions,
educational institutions for the convenience of such as intelligent traffic management systems,
students. Proper outdoor seating places help integrated surveillance, and the use of information
students to improve social interaction & networking technology for citizen services, is expected to
and provide informal learning spaces along with contribute to the cities’ development as smart and
enhancing campus aesthetics. resilient urban centres.
It is with this understanding that Bank, in the
FY2023-24, provided seating benches to various With multiple projects in pipeline, the two Cities are
institutions which include: currently, among other projects, implementing the
Electric Bus Project. The e-buses, apart from being an
• District Court Samba eco-friendly alternative for commute, are equipped
• Jammu University’s Kathua Campus with state-of-the-art facilities for passengers which
• University of Jammu Main Campus include heating and cooling system for the weather
• District Court Srinagar needs of the city (being introduced for the first time
• D.C Office Doda in India), wheelchair accessibility for disabled by
way of foldable-mechanical ramps, digital payment
The sheer number of prospective beneficiaries of option for ride booking and real-time bus tracking
the initiative will be in thousands annually and the though mobile application which also shows the bus
initiative reiterates Bank’s resolve of being a socially routes.
responsible corporate.
Embracing e-buses aligns with the global trend
E. Ecology & Environment towards sustainable and environmental friendly
SDG 11 - “Make cities and human settlements inclusive, practices. Cities promoting electric public
safe, resilient, and sustainable” transportation projects demonstrate a commitment
SDG 13 - “Take urgent action to combat climate change to sustainability, which positively impacts the
and its impacts” public image and attractiveness. It also correlates
SDG 17 - “Strengthen the means of implementation with the preferences of environmentally conscious
and revitalize the global partnership for sustainable citizens and contributes to the global ESG goals.
development” J&K Bank collaborated with the twin Smart Cities
for development of Bus stops/Passenger Sheds for
1. E-Vehicles to key educational institutions under the E-Bus project in Jammu & Srinagar.
Bank’s Green Campus initiative
Conscious of the importance that green and clean F. Rural Development
ecosystem has on the overall sustainability of life, SDG 2 - “End hunger, achieve food security and improved
Bank has been encouraging green sources of energy nutrition and promote sustainable agriculture”.
both in its operations and through innovatively 1. Supporting Agriculture Production Department’s
conceived projects under Corporate Social (APD's) “Kisan Sathi Chatbot” (an AI enabled
Responsibility. With this understanding and context, virtual assistant for farmers)
Bank under its ambitious Green Campus initiative To tackle various challenges faced by our farming
provided e-vehicles to: community, the Government has devised a
• Central University of Jammu comprehensive strategy comprising 29 projects
• Baba Ghulam Shah Badshah University Rajouri under the “Holistic Agriculture Development
• University of Jammu, and Programme (HADP)”. These initiatives center on the
• National Institute of Technology, Srinagar principles of economy, equity, and ecology, aiming to
The initiative will benefit more than 15000 double gross output, enhance exports, and establish

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 sustainable and commercially viable enterprises. culture and tradition, Gurez holds an exceptional
This aspirational program spread across agriculture identity. However, like other cultures, the socio-
& allied sectors aims to increase the CAGR of J&K to economic advancements have led to the neglect of
11% in five years by transforming the agri-economy. the Shina Language and Culture. Rising up to the
Agriculture Production Department have developed occasion, Indian Army took a significant initiative
a ‘virtual assistant’ for farmers with an aim to to establish Shina Cultural Centre in Dawar Gurez
empower them with a wide array of available with an aim to promote and safeguard the culture
information regarding farming methods, schemes and language of the Dard tribe. Conscious of the
& subsidies, cropping systems, tools & technologies, need to preserve and propagate this great cultural
innovations, pricing, marketing, post-harvest legacy, Bank collaborated with Indian Army by way
management etc. The Artificial Intelligence-based of extending financial assistance to the tune of
WhatsApp Chatbot called the “Kisan Sathi Chatbot” Rs.10.00 Lac out of CSR Fund for establishment of
aims to address the information gap between the Shina Cultural Centre.
information and the end-user by directly providing
chat support to farmers on their mobile phones and I. Animal Welfare
answer the questions related to all the aforesaid 1. Animal ambulance to Narsingh Gao Seva Samiti,
aspects of farmers & farming. Kathua
Animal rights are of paramount importance in
J&K Bank collaborated with APD to fund the Chatbot fostering a compassionate and ethical society.
to not only promote improved & sustainable farming Recognizing and upholding the rights of animals
practices but also to help in the training and skill acknowledges their intrinsic value and inherent
development of farmers, enable access to farming worth, irrespective of their utility to humans.
technology, promote livelihood diversification, help Ensuring the well-being of animals encompasses
farmers in credit & market linkage and overall value safeguarding them from cruelty, exploitation, and
addition of their crops which aligns with the broader unnecessary suffering. Advocating for animal rights
goal of contributing to sustainable development and not only upholds principles of justice and empathy
addressing social and environmental challenges. but also acknowledges the interconnectedness of
all life on Earth. Moreover, promoting animal rights
G. Promotion of Sports contributes to environmental conservation and
SDG 3 – “Good health and well-being” sustainable practices, as the welfare of animals
1. J&K Bank Football academies is closely linked to the health of ecosystems and
J&K Bank, has, over the decades, taken varied and fostering a harmonious relationship between
substantial initiatives to promote sports culture humans and other species will pave the way for a
in J&K. Football being a popular game – played, more compassionate and sustainable world for
watched and appreciated locally, nationally and present and future generations.
internationally - has always assumed primary
focus of the Bank. After having established its In this context, Bank provided one animal ambulance
own football team, the Bank set up two football to ‘Shri Narsingh Gao Seva Samiti’, Kathua in
academies almost a decade ago, one each in Jammu FY2023-24.
and Srinagar with the purpose of promoting football
culture in J&K by way of encouraging, nurturing SNGSS has been running and maintaining the
and training budding talent. Around 20 players are Narsingh Gaushala for the past decade with the
selected every year in each of the two academies primary objective of providing medical care to the
for professional training through qualified and injured cows by bringing them to the Gaushala for
professional coaches. J&K Bank Football Academy medical care who otherwise suffer on the roads.
has so far produced scores of players including The organization rescues the deserted cows
more than 44 professional players who are playing from accident sites & other locations for proper
today for different departmental and professional treatment and care at their facility. The ambulance
clubs of the country with some even having played has enabled them to ensure proper, safe and swift
for international clubs. transportation of these injured animals allowing
Bank in the FY2023-24 provided support to them to do their work in an efficient and effective
the Football Academies under Corporate Social manner.
Responsibility.
J. Welfare of war veterans and their families
H. Promotion and Preservation of Art, Culture & 1. Welfare of war veterans and dependents of Army/
Heritage Navy/Air Force Martyrs
SDG 4 – “Ensure inclusive and equitable quality Sainik Bhawans and Sainik Offices in Kashmir and
education and promote lifelong learning opportunities Jammu working under the aegis of Sainik Welfare
for all” Department, J&K, are looking after the welfare
1. Establishment of Shina Cultural Centre at Dawar of around 350000 Ex-Servicemen/Widows/War
Gurez Widows/War Maata/Pita and their families across
With its deep-rooted history connected to Dardistan, J&K. J&K Bank, as a conscious corporate committed
the unique Shina language, the rich treasure of to the welfare of this important and proud segment
of our society, took various steps to upgrade the

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 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

facilities available at these spaces. The facilities degree of ease and transparency, the HR processes
include: are mainly managed through the technology. To use
• Increased security/surveillance at these HR data proactively and assure lucidity, HR system
Bhawans through installation of CCTV is managed through a robust HRMS viz., Peoples’
cameras system, a centrally occupied tool for managing
• Improving the basic residential facilities internal HR functions. Another HRMS tool SOLUS is
available to the families/ dependents of in place to manage Centralized Attendance system.
the Sainiks like beds, bed sheets, pillows,
blankets, mattresses, curtains, dining table/ The Bank has rolled out a KPI Based Performance
chairs, bulbs, garden benches, tea machine, Management System (PMS) across the Organization
water tanks, buckets/tumblers etc.). as one of the HR Transformation Initiatives launched
• Wheelchairs for divyaang ex-servicemen in Financial Year 2022-23, which has been further
or dependents of martyred soldiers/ ex- streamlined in the year 2023-24. The new KPI
servicemen. based appraisal System is envisaged to quantify and
• Tabs, Laptops and Bio-metric devices for the measure the organizational goals and establish the
Jeevan-Pramaan process/activity which bar in terms of the specific deliverables employees
aims at providing door-step life-certification will produce and provide a means to measure the
of army/navy/air-force pensioners (8247 in effectiveness and outcomes of their efforts. The
Kashmir and 87000 in Jammu). HRMS solution of the Bank has also been upgraded,
• Additionally, an Automatic Voltage Regulator which has resulted in end to end automation of
was provided to the District Sainik Office major HR Processes. The Bank has also implemented
Kupwara to help the office generator a cloud based ‘Learning Management System’ which
effectively respond to overloads. has substantially strengthened the ‘e-learning’
infrastructure of the Bank.
Awards & Certifications received by the Bank during
FY23-24 Under the Bank’s Compassionate appointment policy, 2
J&K Bank’s illustrious history of more than eight decades is Banking Attendants and 3 Assistant Banking Associates were
decorated with awards and accolades. Over the years, the appointed in the services of the Bank during FY 2023-24.
bank has collected numerous honours in various categories. In the FY 2023-23, revised ‘Compensation Policy’,
During the FY 2023-24, the bank outshone its competitors to ‘Mandatory Leave Policy’, ‘Policy on funding of
grab the headlines in following categories. defined benefits superannuation schemes’ and
‘Succession Policy’ have been approved by the
• Honoured with Best MSME Bank Award along with Board.
Second Best Award for Promoting Government
Schemes at MSME Banking Excellence Awards During the period, the Bank has conducted training
(2023). modules through online/offline training classes/
• Awarded with Development Leadership Award 2023 sessions/workshops etc. Around 6222 officials have
at 14th Agriculture Leadership Conclave 2023. been imparted training in different banking related
• Prestigious ‘Times Now India’s Impactful CEO - 2023’ fields.
Award bestowed upon MD & CEO Baldev Prakash. Under RBI’s Capacity Building Programme, several courses
• First Scheduled Commercial Bank (SCB) in the have been enlisted in order to develop a resource pool in
country to have been awarded Payment Card critical areas viz. Risk, Forex, Treasury etc. A good number
Industry Data Security Standard (PCIDSS) Version of officials of the Bank have been enrolling for these courses
4 Certification for both Issuance and Acquiring and subsequent to completion of any of these courses, actual
Business. fee is reimbursed in favour of successful officials, besides
• Best Performance Award in CASA - India (1st Runner travelling allowance and classroom/training fee is also borne
up in Small Bank Category) at ICC Emerging Asia by the Bank wherever applicable.
Banking Conclave & Awards 2022
• Gold Award at Infosys Finacle Innovation Awards – During the year 2023-24, the Bank introduced various new
2023 under the category of Process innovation. initiatives to further improve the efficiency of the trainings
imparted by the bank. Some of these are enumerated as
HR initiatives for the Financial Year 2023-24 under:
In today’s dynamic business environment, human
assets differentiate an organization from its i) Specialist Guest faculties from various reputed Institutions
competitors. Understanding the vital role played were requisitioned for conducting specialized training
by the motivated manpower in nurturing the programmes at Bank’s own Staff Training Colleges/Zonal
organisation, it has remained our major priority Offices. Few such programmes conducted are as under:
to continuously improve employee efficiency, • Five programmes on Marketing Strategies (two
performance and strive to institutionalise globally each at STC Jammu & Srinagar) was conducted in
competitive HR practices in the Bank. collaboration with NIBSCOM in the month of Aug
and Sep.
As employees’ are our first customers, we • Two Days Workshop on Investigation were
constantly strive to improve overall processes, conducted at STC Srinagar, on Aug 24 & 25, faculty
systems and infrastructure. Ensuring the highest for which was invited from IIBF.

90
 • Five Days programme on “Foreign Exchange for measurement of Credit Risk capital, ‘Basic Indicator
Business” was conducted in Collaboration with Approach’ for Operational Risk capital and ‘The Standardized
FEDAI from Sep 18 to 22, 2023, at Zonal Office Delhi Duration Approach’ for Market Risk capital. The Bank has
• Seven Days Treasury Orientation Programme was a robust risk management framework, which is geared to
conducted in Collaboration with SIFL from July 27 support the strategic objectives and business plans of the
to Aug 04, 2023 at Zonal Office Mumbai. Bank.

Advanced programme on Strategic Leadership for Top The Integrated Risk Management Committee (IRMC) of
Management was conducted jointly by ‘IIBF’ & ‘Jamnalal Bajaj the Board reviews risk management policies of the Bank
Institute of Management Studies’. 25 top level executives pertaining to credit, market, liquidity, operational & Pillar
including 12 General Managers and 13 Deputy General II risks that includes strategic risk and reputational risk,
Managers participated in the programme. and stress testing. The IRMC of Board is assisted by the
Executive Committees (CRMC, ORMC, MRMC & ALCO) by
In an endeavour to bring in transformational change in the review of policies for different risk categories that have a
Attendance system, the Bank upgraded it Biometric Solution material bearing on the bank. These committees anticipate
to the latest version with contactless, Facial Recognition vulnerabilities in business & embedded risks for management,
System. The transition is aimed to enhance efficiency and monitoring & control of these risks.
accuracy in capturing the attendance of employees, besides
facilitating seamless integration with other systems. The Credit Risk Management:
Bank is in the final phase of procuring a GPS enabled ‘Geo Credit Risk “defined as the possibility of losses associated
fencing’ based mobile attendance application/solution, with diminution in the credit quality of borrowers or
which shall enable the roaming or field staff to mark their counterparties, losses that stem from outright default or
attendance at one or more approved locations. reduction in portfolio value” is comprehensively managed
by the Bank with distinct credit risk architecture, policies,
Risk Management procedures and systems in place.
Bank’s risk management framework is based on a clear
understanding of various risks, disciplined risk assessment The credit risk management policy of the Bank provides
and measurement procedures and continuous monitoring. framework for credit risk management and embodies in itself
An independent risk management function ensures that the areas of risk identification, risk measurement, risk grading
risk is managed through a risk management architecture as techniques adopted by the Bank, documentation practice and
well as through policies and processes approved by Board the system adopted for management of problem loans. The
of Directors. The key risks that the Bank is exposed to are credit risk policy deals with short term implementation as well
Credit Risk, Market Risk, Liquidity Risk and Operational as long term approach to credit risk management to achieve
Risk. These risks not only have a bearing on the Bank’s desired business goals. The credit policy provides clear and
financial strength and operations but also on its reputation. well defined delegation of loan sanctioning which links risk
Bank has in place Board approved Risk Strategy / Policies and exposure amount to level of approval. Segment-wise
whose implementation is overseen by Board of Directors of and borrower category-wise exposure limits are fixed and
the Bank. The Board of Directors has oversight on all the monitored by the bank to address the risk of concentration.
risks assumed by the Bank and approves the risk policies The Bank’s credit risk management structure with Integrated
and strategies to establish an integrated risk management Risk Management Committee (IRMC) of Board at the apex
framework and control system in the Bank. The Integrated level and Credit Risk Management Committee (CRMC) at
Risk Management Committee (IRMC), a board level committee the executive level is responsible for overall credit risk
entrusted with the overall responsibility of ensuring that the management in the Bank. The committees periodically review
adequate structures, policies and procedures are in place for the credit risk profile, evaluate the overall risk faced by the
risk management in the bank. The day-to-day assessment, Bank and develop policies and strategies for identifying and
measurement and monitoring of various risks is managed managing credit risk at individual exposure level as well
by the Risk Management Vertical, which is headed by the as portfolio level in sync with the bank’s credit risk policy
Chief Risk Officer (CRO). The CRO reports to the IRMC of designed in accordance with regulatory guidelines.
the Board. The CRO is responsible for ensuring an effective
implementation of an enterprise-wide risk management The appraisal process encompasses a detailed risk
framework through various risk policies, processes and limits. assessment and rating of obligors, using the Bank’s rating
The risk management function in the Bank strives to models to measure credit risk that forms core of the credit
proactively anticipate vulnerabilities in the business risk management process. Comprehensive credit approval
operations through quantitative or qualitative examination processes by committees followed by post-sanction
of the embedded risks. The Bank continues to focus on monitoring processes and remedial measures are steps
improving its risk measurement systems including automation followed to minimize delinquencies. For managing legal risks
of the processes wherever feasible to ensure compliance of Bank has standard documents for various types of credit
regulatory requirements as well as bringing efficiency in the products for ensuring legal compliance of applicable laws and
risk management framework. The risk management policies ensuring that the documentation entered into by the Bank is
and procedures established are updated on continuous legally valid and enforceable.
basis and benchmarked to best practices. The Bank has
successfully implemented Basel norms since its introduction. Credit audit system and loan review mechanism function
Under this, it has adopted the ‘Standardized Approach’ independently of the credit processing and credit approval
system and ensure effective loan monitoring and management

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ANNUAL REPORT 2023-24

of credit risk and operational risk in the loan portfolio. Basic Indicator Approach.

Capital requirements for Credit risk are derived using Liquidity Risk:
Standardized Approach as per Basel-III guidelines. Asset-Liability Management (ALM) is a comprehensive
and dynamic framework for measuring, monitoring and
Operational Risk Management: managing the financial risks associated with changing
The Operational Risk Management process of Bank is driven interest rates, foreign exchange rates and other factors that
by a strong organizational culture and sound operating can affect the organization’s liquidity. Proper Asset Liability
procedures that involves corporate values, competencies, Management is necessary for a bank for managing balance
comprehensive system of internal controls and contingency sheet risk, especially liquidity risk and interest rate risk, so
planning. The Bank has implemented a robust and as to maximize its net interest earnings. Bank’s framework
comprehensive Operational Risk Management Framework for liquidity and interest rate risk management is spelt out
in sync with Board-approved Operational Risk Management in its Asset Liability Management Policy that is implemented,
Policy to identify, assess and monitor risks, strengthen monitored and periodically reviewed by the Asset Liability
controls and minimize Operational Risk losses. Committee (ALCO). The Asset-Liability Management
Committee (ALCO) is a decision making unit consisting of the
Integrated Risk Management Committee (IRMC) of Board bank’s top management, responsible for ensuring adherence
at the apex level and Operational Risk Management to the risk tolerance / limits set by the Board as well as
Committee (ORMC) at executive level are responsible for the implementing the liquidity risk management strategy of the
implementation of the Operational Risk framework of the Bank bank in line with bank’s risk management objectives and risk
and the management of operational risks across the Bank. tolerance. ALCO is headed by MD & CEO of the Bank.
Policies have been put in place for effective management
of Operational Risk in the Bank, which aim to ensure clear As a part of ALM process, the Bank has established various
accountability, responsibility and mitigation of operational Board approved limits to mitigate both liquidity and
risks. The Bank follows self-assessment programs for risk interest risks. While the maturity gap and stock ratio limits
analysis and risk reducing measures. The Integrated Risk help manage liquidity risk, the net interest income and
Management Committee (IRMC) approves the major aspects market value impacts help mitigate interest rate risk. This
of the Bank’s Operational Risks while the Operational Risk is reinforced by a comprehensive Board approved stress
Management Committee (ORMC) periodically reviews the testing programme covering both liquidity and interest rate
Operational Risk Management (ORM) Policy and associated risk. Bank conducts various studies to assess the behavioral
frameworks that include Loss data management, Key Risk pattern of non-contractual assets and liabilities and
Indicators and Risk Control & Self-Assessment. embedded options available to customers, which are used
while managing maturity gaps. Further, the Bank also has
The Bank has a robust Business Continuity plan that ensures necessary framework in place to manage intraday liquidity
uninterruptable operations in case of disruption and is risk.
periodically tested to ensure that it can meet any operational
contingencies. Bank’s Board has the ultimate responsibility The Liquidity Coverage Ratio (LCR), a global standard, is used
and oversight over BCP activity. The Board approves the to measure bank’s liquidity position. LCR seeks to ensure
Business Continuity Policy of bank. Senior Management is that the Bank has an adequate stock of unencumbered High
responsible for overseeing the BCP process. Bank’s Board Quality Liquid Assets (HQLA) that can be converted into cash
and Senior Management ensures BCP is independently easily and immediately to meet its liquidity needs under a
reviewed and approved at least annually. 30day calendar liquidity stress scenario.

There is an independent Information Security department Net Stable Funding Ratio (NSFR) supplements the LCR
headed by Chief Information Security officer (CISO) that and has a time horizon of one year. It has been developed
addresses information security related risks and ensures to provide a sustainable maturity structure of assets and
employee sensitization exercises. CISO reports to the Chief liabilities. NSFR would ensure that bank has a stable funding
Risk Officer (CRO) of the Bank. profile vis-a-vis its assets and off-balance sheet activities.

The Bank has Whistle Blower mechanism in place which Market Risk Management:
inter alia defines the governance, roles & responsibilities The market risk management is governed by Market risk
of various officials/ officers from branch to the Board level, policy of the Bank. A well-defined Market risk management
besides putting in place various controls for preventing framework is in place to assess and minimize risks inherent in
fraud incidents and detecting frauds in an effective way. The treasury operations through various risk management tools.
central vigilance team oversees implementation of fraud In addition to various regulatory limits, Bank has defined
prevention measures. Frauds are investigated to identify various internal limits like Net Overnight Open Position,
the root cause and relevant corrective steps are taken to Modified Duration, Stop Loss, VaR Limits, PV01 Limit, and
prevent recurrence. Fraud prevention committees at the Concentration & Exposure Limits and ensures adherence
senior management and Board level also deliberate on thereof on continuous basis for managing market risk in
material fraud events and initiate preventive action. Periodic trading book of the Bank. These limits are stipulated in Market
reports are submitted to the Board and senior management Risk Policy, Investment & Trading Policy, Asset Liability
committees. Management Policy, etc. All these policies are reviewed and
approved by the Bank’s Board of Directors. For the Market
Capital requirements for Operational risk are derived using Risk Management of the Bank, there is a functional separation

92
between the Treasury Front Office, Mid office and Treasury market share of the Bank.
Back Office. b) Changes in the Bank’s risk levels based on
on/ off balance sheet positions assessed
The Bank currently follows the standardised approach for under assumed scenarios using sensitivity
computation of market risk capital on interest rate related factors that generally relate to their impact on
instruments in the trading book, equities in the trading book profitability and capital adequacy.
and foreign exchange risk for its trading portfolio. c) Identification and assessment of all types of
material risks, capital requirement thereof and
Pillar II Risks: capital position under stress scenarios.
The Bank has a structured framework in the form of Internal
Capital Adequacy Assessment Process (ICAAP) to assess The Bank has a stress testing policy in place to measure
capital position vis-a-vis identified risks and also the future impact of adverse stress scenarios on the adequacy of capital.
capital requirement of the Bank. ICAAP is to identify, assess Periodic stress testing is undertaken on portfolio to gauge
and manage all risks that may have a material impact on the impact of stress scenarios on the health of portfolio,
business / financial position / capital adequacy and ensure profitability and capital adequacy. The stress scenarios are
that a bank is aware of its risk profile and has systems in idiosyncratic, market wide and a combination of both. Stress
place to assess, quantify and monitor these risks. One of the testing enables a Bank in forward looking assessment of risks,
objectives is to determine the economic capital required to which overcome the limitations of statistical risk measures
cover all risks faced. While Regulatory Capital is the capital or models based mainly on historical data and assumptions.
that the regulator requires a bank to maintain, Economic It also facilitates internal and external communication and
Capital is the capital that a bank needs to maintain and is, in helps senior management understand the condition of the
general, estimated using internal assessment of all the risks Bank in the stressed time. Stress testing forms an integral
including residual risks. Additionally, the Board approved part of the Internal Capital Adequacy Assessment Process
Stress Testing Policy entails the use of regulatory specified (ICAAP), which requires banks to undertake rigorous,
& internal scenarios to assess potential vulnerability to forward-looking stress testing that identifies severe events
extreme but plausible stressed business conditions. The or changes in market conditions that could adversely impact
ICAAP document addresses the following issues: the Bank.

a) Capital Planning and Management considering Ratings:

the material risks faced by the Bank and future Bank’s rating for its fixed deposits and Tier II Bonds (Basel
capital requirement of the Bank basis growth III Compliant) assigned by RBI accredited rating entities is as
strategies, macroeconomic environment and follows:

Instruments Rating Rating Agency Comments

Instruments with this rating are considered to have very strong degree of
Certificate of Deposit
CRISIL A1+ CRISIL safety regarding timely payment of financial obligations. Such instruments
Programme
carry lowest credit risk.

Instruments with this rating are considered to have very strong degree of
Short Term Fixed Deposit
CRISIL A1+ CRISIL safety regarding timely payment of financial obligations. Such instruments
Programme
carry lowest credit risk.

This rating indicates that the degree of safety regarding timely payment of
Fixed Deposit Programme AA- CRISIL
interest and principal is strong.

Instruments with this rating are considered to have high degree of safety
IND A+ India Ratings regarding timely servicing of financial obligations. Such instruments carry
very low credit risk.

Instruments with this rating are considered to have high degree of safety
Tier II Bonds
BWR AA- Brickwork regarding timely servicing of financial obligations. Such instruments carry
(under Basel III)
very low credit risk.

Instruments with this rating are considered to have adequate degree of

Care A+ Care Rating safety regarding timely servicing of financial obligations. Such instruments
carry very low credit risk.
Instruments with this rating are considered to have adequate degree of safety
Additional Tier 1 Bonds
BWR A Brickwork regarding timely servicing of financial obligations. Such instrument carry low
(under Basel III)
credit risk.

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 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Marketing & Product Development: agriculture community. Bank is committed in supporting the
The banking industry, being associated with financial services, creation of Agri-infrastructure such as CA Stores and other
operates in a dynamic environment that poses a variety of food processing units and establishment of sheep, dairy and
challenges, compelling it to remain proactive in redesigning poultry units. Bank is whole heartedly implementing various
and re-engineering itself to remain relevant and competitive. Government Sponsored Schemes like Integrated Diary
The mushroom growth of NBFCs and other organized private Development Scheme (IDDS), Integrated Sheep Development
lenders have triggered a paradigm shift in lending processes, Scheme (ISDS), Integrated Poultry Development Scheme
more so for personal loans. Thus the banks need to constantly (IPDS), PMFME, Agri-Infra Fund Scheme etc. Besides bank
update their existing offerings as well as come up with new has launched Holistic Agriculture Development Fund scheme
products to suit the existing market segments as well as to finance various projects in agri sector.
to penetrate new markets. In this backdrop, new product
development and updation of existing products assumes Bank is playing vital role in ensuring credit flow to MSME
utmost importance in the banking sector. Keeping abreast Sector in the UTs of J&K and Ladakh; and special attention
with the evolving trends in banking industry, Bank has put in is being paid to handholding of the sector in line within the
place a Board approved Product Development and Approval regulatory framework. The bank’s schemes for business
Policy which delineates the framework for introduction of community are regularly updated to align them with the
new products & review of existing ones in order to make market demands. Besides, the Bank also implements various
them inclusive, responsive and market oriented. flagship schemes of Government like PMEGP, JKREGP, PM
SVANidhi, Mission Youth Schemes.
The banking industry, like any other service industry has
to focus more on service delivery, as it heavily contributes In order to ensure that products and strategies of the
to service quality. Majority of the banks have shifted their bank are competitive and market oriented, the feedback
service delivery from physical branches/ channels to virtual and suggestions of various stake holders, as received
branches/ digital changes. On this account, vast branch during review meetings or through other channels are duly
network and deep geographical penetration which was earlier considered at the time of product revision or designing
considered a huge competitive advantage is probably not business strategies. Besides the prototype of revised or
relevant any more. Thus product development, in addition newly introduced products is shared with key stake holders
to routine product features, focuses on ease of processing for necessary validation/ value addition before routing them
of service requests, simplicity of processing, promptness for formal approval.
of delivery, safety , security and likewise. Customer centric
and customer friendly behavior of staff assumes paramount As a part of marketing and in order to provide customers
importance to customer satisfaction and customer delight, with special discounts on occasions of festivities, the Bank
thus training and development of staff to improve their launched many Business Promotion campaigns/ Festive offers
communication and presentation skills needs added during the FY 2023-24. Various concessions/ relaxations
emphasis. under specified schemes featured in these campaigns which
have been of considerable help in augmenting our retail
J&K Bank has a vast bouquet of specially designed products credit portfolio.
under MSME, Trade, Personal Loan Segment, Industry,
Handicrafts, Tourism, Agriculture, Micro Finance, Education Bank is imparting added focus on providing innovative digital
and other Service Sectors with enhanced focus on UT’s of financial services through interactive and secure Technology
J&K and Ladakh. These products are customized and tailor to its customers which shall enable virtual interaction
made to suit the specific requirements of target groups. with them without losing human touch. Besides, bank is
now migrating loan appraisal, sanction and disbursement
The personal consumption loan scheme is a flagship product to digital platform as well, so as to reduce TaT, improve
of the bank having wide acceptance in UT’s of J & K and efficiency and ensure prompt and hassle free credit delivery.
Ladakh. The product features are designed in such a manner A good number of loan products have already been shifted
so that they suit the needs of almost all the sections of to digital framework and bank is exploring all available
society thereby making this product more inclusive, and the options and putting in concerted efforts to widen the scope
Bank has so far been successful in covering a vast segment of of technology utilization in credit appraisal and dispensation
customers under the product. Housing Loan, Car Loan, Solar by transferring more customer segments and credit products
roof top Finance, Loans for purchase of Consumer Durables, to digital platform.
Loan against property and Festival Advance are other key
products under personal segment. Majority of the vehicle Bank has established in-house marketing teams for sourcing
loan schemes like Car Loan Scheme, Commercial Vehicle loan leads in Housing, Car and Education Loan segment.
Finance Scheme, Two wheeler finance schemes have been Besides, services of DSAs are also being utilized to source
reviewed to make them more competitive and marketable. loan proposals. The scope of DSA policy is being expanded
to sourcing of digital product leads as well. Services of
Under the Agriculture Sector, Bank has continued its apprentices are also being utilized for marketing and
endeavor to launch special campaigns for 100% coverage obtaining of market feedback.
of PM-Kisan Beneficiaries’ under Kisan Credit Card (KCC)
and a vast section of population has benefitted from the Bank has entered into various MoUs with various
scheme. Besides Bank launched a KCC saturation campaign manufacturers, particularly vehicle manufacturers so as to
titled “Ghar Ghar KCC” to extend this facility to left out pool the resources to coordinate with each other for better

94
and effective marketing and sales completion. mile delivery of bank products inching towards door step
banking.
Bank has initiated steps to augment fee based income by
increasing non-fund business and raising awareness among  Launch of UPI-QR SoundBox:
With an aim to enhance our scope in digital payments,
the staff and Bank’s Clientele to avail the benefits of non – QR–SoundBox was rolled out. This QR Sound Box is a
fund business. Cross selling of 3rd party products is being portable speaker that is equipped with a dedicated 4G SIM
emphasized to improve the non interest income of the bank. slot compatible across networks, for data connectivity.
Besides the services charges schedule has also been revised The QR-SoundBox will notify the merchant through audio
to align it to prevailing industry practices. alerts every time a customer makes a payment, helping
them to run their business smoothly without the hassle of
IT Initiatives during FY 2023-24 reading SMS every time a transaction has been made.

 Rollout of Online Account Opening Facility with

 Rollout of New Mobile Banking Application “JKB mPay VideoKYC:
Delight +”: As part of Business Process Re-Engineering & Go-Digital
As a major step towards realizing its digital banking initiative, our bank has successfully launched Online
objectives, our bank launched a new state of art mobile Account Opening Facility along with Video KYC which
banking application “mPay Delight +” to provide ‘Bank-in- enables the prospective customers to open a Bank
a-Pocket’ experience to its customers. The new features Account 24x7 at their convenience and comfort. In the
rolled out in the new version include UPI-Scan to Pay first phase the facility has been initially enabled for
option, ability to schedule transactions, Full statement General Saving Account and Student Saving Account
delivery over email, Management of Credit & Debit Cards, schemes.
opening/ closing of recurring & fixed deposits and much
more. Our flagship product ‘mPay Delight +’ has been
developed on a resilient architecture & framework which  Pan Bank Rollout of eOffice with Mobile App:
has the capacity to handle surges in transaction volumes A revamped and modern eOffice Application suite has been
observed on occasion of festivities and has in-fact launched across the bank. This Modernized e-Office Suite
already surpassed 1000crore daily transaction amount completely automates file & correspondence movement
mark while delivering uninterrupted services to our from creation to archival of files and correspondence and
valuable customers which has been recognized as a major all decisions can be captured in the file itself and remain
achievement given the service disruptions observed in intact throughout the lifetime of the file. Since its launch,
past on the legacy Mobile App. over 21000 notes have been initiated on the eOffice
application of which over 15000 notes were disposed
 Rollout of New UPI & IMPS Platform: of in same day. This tremendous acceptance of eOffice
The upgraded platform for UPI & IMPS on cloud hosted initiative has not only drastically reduced the paper
model has been rolled out for all customers of the bank. usage across the bank but also improved the decisioning
The platform was upgraded from existing on-premises to turnaround time. By transitioning to paperless processes
a cloud hosted platform and all the existing registered and significantly reducing paper usage, our bank
users were migrated to the new cloud platform from demonstrates its steadfast commitment to environmental
day one. The New UPI Platform is hosted on cloud and sustainability and our broader ESG goals, contributing
is able to scale up the infrastructure on demand. This to a greener future. To complement this and further
auto scalability is very much required for UPI Setups improvise the initiative, a mobile app was also launched
where projecting and envisaging transaction load is for Authorizer/Approver users which allows decisioning
not easy. The inherent convenience this UPI ecosystem on the go. The Mobile App allows convenient, easy to use
offers coupled with the Fintech UPI Apps has resulted interface for approving users to view their dashboard,
in an exponentially growing transaction volumes on download notes offline and make their decisions within
J&K Bank’s UPI System. The new UPI and IMPS platform the app itself.
has already been integrated into our Mobile Banking
Application ‘mPay Delight +’ and our eBanking setups and
our customers are able to avail all UPI & IMPS Services Achievements in Digital Banking FY2023-24
like UPI-Scan & PAY, Instant IMPS transfers , UPI-Virtual Digital technology is changing how Banks interact with their
Private Address(VPA) based transfers and much more. customers. In just a few years, the financial services industry
Since its launch in December 2023, total UPI registrations has evolved from traditional delivery channels to a system
have surpassed 35Lakhs and the number of transactions supplemented by alternate IT-enabled delivery channels.
on monthly basis has touched 10crore mark. Digital products play an instrumental role in reducing cost
 Rollout of New Financial Inclusion Platform: of operations. Besides reduction in footfall, the introduction
In order to upgrade and scale-up our Technology of digital delivery channels provides a leeway to operative
Platform for Financial Inclusion, an All-In-One Cloud levels to focus on sales operations. The ability of banks to
Hosted Solution for Financial Inclusion Products was deliver services through Digital Channels is crucial to achieve
rolled out. This hosted solution is capable of handling superior customer experience and competitive edge.
our projected transactional growth for next 5 years and
the bank is able to offer beyond Financial Inclusion set The digital banking transition has helped Bank to improve
of services spanning over business mobilization, asset
quality management, customer relationship management efficiency, generating growth and convenience for customers
through Business Correspondents using this application. with the opportunity to bring more prospective customers.
Through this platform upgrade, the bank is envisioning
that this channel shall not only serve the regulatory Our strategic priorities are focused around customers,
Financial Inclusion directions, but also propagate the technology and talent to build a future ready financial
banks business especially in improving the asset quality institution. We are leveraging emerging opportunities and
and recovery processes. The upgraded platform is also building our brand through superior customer experience,
providing a dedicated mobile app to BC’s to ensure last

95
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

innovative products and services as per customer demand access, Ecommerce Coupons, wellness coupons, golf
and community engagement. offers, dining offers etc.
J) To encourage digital payments and strengthen its
We remain committed for enhancing customer experience digital footprints, the bank launched a new Digital
through focus on customer journey, automation, innovative, product in its POS segment “SOFT POS” which is
comprehensive products and services ecosystem. utilized to receive quick and secure payments through
an application installed on Android Mobile Phones. Soft
The details of “Achievements in Digital Banking for the POS an innovative technology allows businesses to
FY 2023-24” are as below:- accept card payments in Contactless Mode directly
A) Received Runner up Award at ASSOCHAM 18th Annual on their smartphones (NFC Enabled) without the
Summit and Awards Banking and Financial Sector requirement of any additional hardware with a simple
Lending held at Mumbai in Best Digital Initiatives tap of the cardholder’s contactless credit or a debit
category. card.
B) The Digital transaction percentage of the Bank for the K) To stay ahead in the competitive market Bank
FY 2023-24 reached to 87.55 % launched another Digital Product ‘J&K Bank Sound
C) Bank successfully completed the 100% digitization Box’ which is a small portable speaker designed
project for all districts in UT of J&K. for payment alerts for UPI QR transactions. When a
D) Bank launched a new Digital product “Instant QR” customer makes a payment by scanning J&K Bank
which is utilized by our customers to receive instant UPI QR code, the Sound box will notify merchants of
and secure payments through mPay Delight plus and successful payments with a voice alert.
all other BHIM UPI apps like GooglePay, PhonePe, L) Bank launched Online Account Opening Facility along
Paytm etc. with Video KYC that enables the prospective
E) In our commitment to enhance customer convenience, customers to open a Bank Account 24x7 at their
Bank introduced Debit Card Home Delivery service. convenience and comfort. The service is aimed at
This offering allows customers to receive their debit providing our customers with a seamless and secure
cards at their doorstep, providing a hassle-free method to open a Bank account remotely without any
experience without the need to visit a branch. geographical barriers within the country and without
F) In its commitment to enhance customer experience the need for visiting a Bank Branch.
through digital transformation, the Bank rolled out M) Bank rolled out its flagship “J&K Bank Instant Digital
new flagship mobile banking app - mPay Delight+ with Loan” for employees of J&K Government and MOU-
value-added features for its customers. affiliated organizations. This offering replaced the
G) To align our UPI systems with growing volumes partially automated Phone Pe Loan facility, which
and to meet the customer expectations, bank has required human intervention. The Instant Digital
upgraded its UPI systems to latest technology driven Loan leverages Straight Through Processing (STP)
platform which offers industry best features to our technology, providing a seamless, fully automated
customers. Besides the new UPI features are being loan application and disbursement process. Customers
tightly integrated with mPay Delight+ app to make can now apply for and receive loans instantly through
digital interaction convenient & hassle free and offer a user-friendly digital platform, ensuring convenience
an omni-channel experience to our valued customers. and a hassle-free experience.
H) The bank launched Visa Debit and Credit Card which N) Some of the other Top Govt Departments that have
marks another significant milestone in the digital been onboard to online mode of collection during the
landscape of our Bank by providing our customers Financial year are as below:-
with a versatile and globally accepted payment • Jambu Zoo
solution across a wide network of ATMs and Merchant • State Dispute Redressal Commission.
establishments (POS & e-commerce) both domestic • University of Jammu CDC.
and international. • GMC Handwara, GMC Udhampur and GMC
I) To keep pace with the ever changing business Baramulla
environment and continuing its commitment to provide • Municipal Council Katra
superior products and services, the Bank launched new • Jammu and Kashmir Gao Raksha Samiti
premium versions of Debit Cards – Platinum and World • Balgarden Charitable Home For Destitute Children
Debit Card with value added features like Lounge • Polytechnic Doda

Digital User/Transaction Summary report for the FY 2023-24:-

Digital Channels Q4 FY 2022-23 Q1 FY 2023-24 Q2 FY 2023-24 Q3 FY 2023-24 Q4 FY 2023-24

Debit Card Users 38,58,499 39,66,855 41,10,866 41,64,707 43,06,879

m-Pay Users 19,58,831 20,29,588 21,44,712 21,70,128 24,35,581
UPI Users 15,87,660 17,48,218 20,13,383 17,27,788 19,82,207
Internet Banking Users 5,60,116 5,69,368 6,37,069 6,55,308 6,67,189
QR Merchants 1,35,368 1,58,090 2,71,270 3,33,142 4,36,553
Credit Card Users 78,050 1,02,546 1,08,164 1,13,166 1,17,847

96
 POS Users 11,619 11,530 11,356 14,222 14,304
Total Digital Transactions 16,41,17,163 18,68,94,824 20,48,86,731 22,68,57,500 24,95,25,448
Total Transactions 19,55,70,055 21,83,72,072 23,77,45,547 25,92,79,839 27,62,42,345
% age Digital Transactions 83.92% 85.59% 86.18% 87.50% 90.33%

Financial Inclusion preceding year, registering thereby a yoy increase of 25%.

Background: Financial inclusion has received a lot of attention
from the Policy Makers and the Regulators alike for inclusive B. Transactions Performed by BCs: Numbers
growth and equitable development of economy. Reserve Bank Performance
of India has adopted a bank-led model to deepen Financial Performance FY24
Inclusion and to make Banking services available across all Parameter FY23
FY 22 (YoY
population segments and geographies. (YoY Growth)
Growth)

Financial Inclusion, initially considered a regulatory 15,36,512 16,13,319

1. Carded 23,84,748
compulsion, has, over time, become an important (-35%) (5%)
business function for the Banks. Accordingly, the Business
4,52,477 27,18,289
Correspondent Channel is now being recognised as an 2. AePS 1,30,661
(246%) (500%)
important ‘Alternate Banking Channel’ owing to the
geographical overreach of the Business Correspondent 3. IMPS 0 0 3,693
network as well as its cost-effectiveness. 4. Third Party
0 0 79,252
Deposit
Financial Inclusion Function in the Bank
5. Bill Payment 0 0 76,974
Financial Inclusion has remained a prime focus area of the
Bank all along. The Business Correspondent Network of the Five types of financial transactions can be performed at
bank, popularly known as the Khidmat Centre Network, has the BC outlets. The last three types were, however, added
received focused attention from the Management of the in the last quarter of FY 24 consequent to adoption of new
bank and as a result the network has emerged as one of the technology solution.
important alternate channels of the Bank besides helping in
achieving the national Financial Inclusion milestones in J&K. There has been a thrust on AePS transactions because
these are done on behalf of those customers who are either
The Bank, in December 2023, adopted a new technology illiterate or are technology disabled. The AePS transactions
software for Kiosk Banking which has resulted not only in have, thus, seen a phenomenal YoY growth of 500% on the
stabilizing the Kiosk Banking platform but has also added a back of 27.18 Lakh transactions done at BC outlets in FY 24.
large number of services available to the customers of the Pertinent to mention that only 1.30 lakh such transactions
bank through the BC network. had been performed in FY 22. In the year 2022-2023 the
number of AePS transactions was 4.52 lakh; a growth of
Apart from that, a slew of management decisions and 246% over the preceding year.
operational initiatives have increased the efficiency of the
Business Correspondent Channel manifold. The Business The Card-based transactions had a YoY growth rate of only
correspondent network has been able to cater to the financial 5% in FY 24 clocking more than 16 lakh transaction. The
needs of the unbanked and under banked populations and relatively slower YoY growth is also because of customers
spaces by providing a large number of banking services to preferring AePS mode for transaction over card mode even
if they being cardholders.
the general public.
For IMPS, Third Party Deposit and Bill Payment transactions,
Financial Inclusion Strategy: In the Financial Year 2024, the
there is no historical data available since they were made
Bank adopted a three-dimensional strategy to rejuvenate
available at the Kiosk towards the end of FY24.
the BC network and leverage fully. The three concurrent
phases, 1) Turnaround; 2) Accelerate and 3) Transform were C. Account Opening
implemented simultaneously for better and speedier results I. No. of accounts opened by BCs
Impact: Review of Performance Performance

A. BC Network: Performance Parameter FY23 FY24

FY 22 (YoY (YoY
Performance Growth) Growth)
Performance
Parameter FY23 FY24
FY 22 19,862 24,957
(YoY Growth) (YoY Growth) 1. Savings Bank 34,569
(-42) (26%)
805 935
1. No. of Active BCs 645 2. Fixed Deposit 0 0 172
(25%) (16%)
3. Cash Certificate 0 0 0
At the end of FY2024 there were 935 active Business 4. Monthly Yield Deposit 0 0 250
Correspondents as against that of 805 for FY23 registering a
YoY growth of 16.15%. In the Financial Year 2023 the number 5. Recurring Deposit 0 0 78
of active BCs increased to 805 BCs as compared 645 in the

97
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

The previously used software solution allowed for opening Performance

of only Small Savings Bank Accounts and partial opening
Performance Parameter FY23 FY24
of General Savings Bank accounts. The current software
(YoY Growth) (YoY Growth)
application allows opening of all types of SB accounts,
Fixed Deposit Accounts for a maximum of Rs 50,000/- and 1. Pradhan Mantri
61,061 2,46,874
Recurring Deposit accounts. Surakhsha Bima Yojana-
(-23%) (304%)
PMSBY
A YoY growth of 26% was witnessed in FY 24 for total 2. Pradhan Mantri Jeevan 31,766 84,996
Savings Bank accounts opened by the BCs. Jyoti Bima Yojana- PMJJBY (-32%) (168%)
6,961 3,156
II. Basic Savings Bank Accounts: 3. Atal Pension Yojana- APY
(209%) (-55%)
The number of PMJDY accounts along with the amount Claims settled under PMJJBY and PMSBY: The cumulative
of deposit lying in the accounts at the end of FY 23 and position of insurance claims as on 31.03.2024 is tabulated
FY24 is tabulated hereunder: herein-below:
As on 31.03.2023 As on 31.03.2024
Claims
Amount Received Claims Claims
Amount No. of Ac- Scheme Insurer
No. of Accounts During Settled Rejected
(In Cr.) counts (In Cr.) FY24
18,28,103 129.07 17,95,501 140.01 New India
PMSBY Assurance 101 64 2
OD facility in Basic Savings Bank Account: Co.
In accordance with the regulatory guidelines, the bank has PMJJBY LIC of India 390 80 23
kept an option of overdraft upto Rs.10,000/- in all the PMJDY
Accounts. The position of OD outstanding in Basic Savings
Financial Literacy Camps
Bank Account as on 31.03.2024 is as under:
Camps conducted by Rural Branches: In compliance to
As on 31.03.2023 As on 31.03.2024 regulatory guidelines, the Bank conducts awareness camps
Amount through Rural Branches. Each rural branch is required to
No. of Ac- Amount No. of Ac- conduct at least one such camp every month. Special Camps
Gender (Rs in
counts (Rs in Lakh) counts are conducted for newly included people in the Financial
Lakh)
system while as Targeted Camps are conducted for specific
Male 4107 167.74 4779 276.58
target groups like farmers, SHGs, senior citizens, school
Female 2999 84.78 4945 145.57 children etc. The summary of such camps conducted in FY24
Total 7106 252.52 9724 422.15 is as under:
Year FY23 FY24
D. Ease Services:
Number of Camps 4948 6187
A number of Ease Services like Cheque Book
Request, Check Stop Request, Card Block Request,
SMS Alert Subscription, Passbook Printing, Mini Camps Conducted by FLCCs: In compliance to regulatory
Statement etc. are also now available through Kiosk guidelines, the Bank has set up Financial Literacy cum
Banking Platform. Credit Counseling Centres (FLCC) in its 12 lead districts.
The FLCCs conduct financial literacy camps to promote
E. Social Security Schemes: financial education, digital literacy among various population
PMSBY is an Accidental Insurance Scheme offering segments like School/College students, SHGs, rural women,
accidental death and disability cover of Rs. 2.00 bank clients etc. The summary of the camps conducted by
Lakh for death or permanent disability and a cover the FLCCs is presented as under:
of Rs. 1.00 lakh for partial disability for SB Account FY 23 FY24
holders in the 18-70 age group. The scheme is Special Target Special Target Special
Total
renewable from year to year. The bank achieved Camps Camps Camps Camps Camps
a yoy growth of 304% in enrollments under the
355 1153 1508 314 1132 1446
scheme in FY24

PMJJBY offers Life Insurance cover, renewable Camps conducted by CFLs

every year, of Rs 2.00 lakh for death due to any In compliance to the instruction of the Reserve Bank of
reason for all savings Bank Account Holders in the India, The Bank has established 56 Centres for Financial
age group of 18-50 years. The bank achieved a yoy Literacy (CFL) in collaboration with CRISIL Foundation and
growth of 168 % in enrollments under the scheme Responsenet Development Services- Non Governmental
in FY24. Organizations nominated by Reserve Bank of India. The CFLs
have been established in various blocks of the lead Districts of
Atal Pension Yojana is a government-backed the Bank. The number of financial literacy camps conducted
pension scheme targeted at the unorganized sector by the CFLs is summarized below.
in the age group of 18-40. The Bank enrolled 3156
beneficiaries under APY in FY 24.

98
 FY23 FY24
The Bank has constituted a ‘Standing Committee on
Number of camps 3259 9562 Customer Service’, which is responsible for implementation
and compliance of the ‘Code of Banks Commitment to
Customer Service Customers’. The committee consists of official and non-
The Bank realizes the importance of customer service and official members. The official members include the top
continues to lay utmost priority for rendering prompt and management of the Bank and non-official members include
efficient service to customers. the public representation so as to put the day-to-day issues
faced by the common customers and their resolution. The
For facilitating hassle free escalation of grievances & service non-official members have been included in the standing
requests, Bank has notified various communication channels committee so as to enable an independent feedback on the
in the public domain which include on-line grievance portal quality of customer service rendered by the Bank.
on website. Customers are provided the facility of registering The Bank has a Contact Center in place to provide tele-
their service request through mPay and eBanking channels banking services to its customers and to redress the
for hassle free escalation of grievances & Service Requests. customer grievances on 24x7x365 basis through leading
The customers receive acknowledgement of their complaint/ Service Provider.
Service Request instantly with unique ID for future reference
and tracking. The customer complaints/Service Requests Bank has various policies on customer service approved
are processed and disposed-off through the Grievance by the Board which have been conspicuously displayed on
Portal within defined TAT and response/ reply is sent to the Bank’s website for awareness of general public.
complainant/ customer through Portal/ Email/SMS.
Prompting Compliance
Bank has adopted ‘zero tolerance’ policy on staff The bank has implemented robust compliance processes in
misbehaviour with Customers. SOP has been framed for accordance with guidelines set by the Reserve Bank of India
handling staff misbehaviour complaints and circulated to (RBI) and the bank’s internal governance standards. Our
the Branches to sensitize the staff that the substantiated commitment to accountability, transparency, and business
complaints of misbehavior will be dealt with strictly ethics is evident in our adoption of industry best practices.
and disciplinary action will be initiated against the We have established a comprehensive Group compliance
erring employee besides transferring him/her to distant policy to identify and mitigate compliance risks effectively.
location.
To ensure compliance, the bank strictly adheres to all
Root cause analysis of complaints is performed so as to statutory provisions outlined in various legislations, including
plug the gaps, if any, and avoid recurrence of complaints the Banking Regulation Act, RBI Act, FEMA, and other
on similar grounds. This approach has helped the Bank in regulatory guidelines. Furthermore, we have implemented
making the grievance redressal mechanism more effective internal policies that align with these requirements,
and responsive. The customer complaints which are partially continually updated to reflect changes as necessary. Our
or wholly rejected by the Bank are auto-escalated to Bank’s enterprise-wide compliance framework establishes clear
Internal Ombudsman for opinion. roles and responsibilities to maintain adherence.
The Bank also conducts Customer Advisory Forum (CAF) Further, In order to foster a strong compliance culture, we
meetings at all Branches at monthly intervals. These meetings have established a dedicated “Compliance” Department at
help us obtain first hand feedback about our products the apex level. The Compliance function of the Bank is being
and services and in turn facilitate necessary changes/ headed by a senior officer of the rank of General Manager
improvements as per customer expectations. designated as Group Compliance Officer whose overall
responsibility is coordinating the efforts of identification and
The Bank has constituted a sub-committee of the Board management of Bank’s Compliance Risk and supervising the
known as ‘Customer Service Committee’ with the objective activities of other Compliance Function staff.
of bringing improvements in the quality of customer service
and to examine any other issues having a bearing on the Additionally, we have implemented the CERMO+ and TasC
quality of customer service rendered. The CSC of Board applications, which enable us to monitor regulatory guidelines
reviews the various customer service initiatives implemented and ensure compliance accordingly. These measures
by the bank from time to time and discuss on new initiatives strengthen our overall compliance efforts and demonstrate
to enhance the customer experience. our commitment to regulatory compliance.

99
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Independent Auditors Report

We are independent of the Bank in accordance with the Code
To of Ethics issued by the Institute of Chartered Accountants of
The Members of India together with the ethical requirements that are relevant to
Jammu & Kashmir Bank Limited. our audit of the financial statements under the provisions of the
Act and the Rules there under, and we have fulfilled our other
Report on Audit of the Standalone Financial Statements. Opinion ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence we
1. We have audited the accompanying standalone financial have obtained is sufficient and appropriate to provide a basis
statements of Jammu & Kashmir Bank Limited (‘the Bank’) for our opinion.
which comprise the Standalone Balance Sheet as at 31st March
2024, the standalone Profit & Loss Account and the standalone Emphasis of Matter
Statement of Cash Flow for the year then ended & notes to 3. We draw attention to
the financial statements including a summary of significant i. Note No 15(b)(vii) of Schedule 18 of the financial statements
accounting policies and other explanatory information in which regarding excess in fair value of Plan Assets in Gratuity
are included the Returns of 48 branches/offices audited by us Benefits over present value of funded obligation amounting
and 980 branches audited by the Statutory Branch Auditors for to Rs 243.07 crore credited to “Payments to and Provisions
the year ended on that date. The Branches/offices audited by for Employees” with consequential impact on results for the
us and those audited by other auditors have been selected by year.
the Comptroller & Auditor General of India in accordance with ii. Note no. 16(g) of Schedule 18 of the financial statements,
the guidelines issued to the Bank by the Reserve Bank of India. which states that ‘Other assets’ of the Bank include dues
In our opinion and to the best of our information and according to of Rs 3253.69 crore from Government of UT of Jammu and
the explanations given to us, the aforesaid standalone financial Kashmir on account of disbursement of Pension to retired
statements give the information required by the Banking employees of UT of Jammu and Kashmir.
Regulation Act, 1949 as well as the Companies Act, 2013 (‘the
Act’) in the manner so required for Banking Companies and are Our Opinion is not modified in respect of these matters.
in conformity with the accounting principles generally accepted
in India and give a true and fair view of the state of affairs of the Key Audit Matters
Bank as at 31st March 2024, and its profit and its cash flows for 4. Key audit matters are those matters that, in our professional
the year ended on that date. judgment, were of most significance in our audit of the
standalone financial statements the year ended March 31, 2024.
Basis for Opinion These matters were addressed in the context of our audit of
2. We conducted our audit in accordance with the Standards on the standalone financial statements as a whole, and in forming
Auditing (SAs) specified under section 143(10) of the Companies our opinion thereon, and we do not provide a separate opinion
Act, 2013. Our responsibilities under those Standards are on these matters. We have determined the matters prescribed
further described in the Auditor’s Responsibilities for the Audit below to be the key audit matters to be communicated in our
of the standalone Financial Statements section of our report. report.

Sr.
Key Audit Matters How the matter was addressed in our audit
No.
i. Classification of Advances, Income Recognition, Identification of and Our audit approach towards advances with reference to the
provisioning for non-performing Advances (Refer Schedule 9 read with Income Recognition and asset classification (IRAC) norms and
Note 3 of Schedule 17 to the financial statements): other related circulars/directives issued by the RBI and also
Advances include Bills purchased and discounted, Cash credits, Overdrafts, internal policies and procedures of the Bank includes the testing
Loans repayable on demand and Term loans. These are further categorized of controls on sample basis. Also performed other substantive
as secured by Tangible assets (including advances against Book Debts), procedures included and not limited to the following:
covered by Bank/Government Guarantees and Unsecured advances. a. The accuracy of the data input in the system for income
Advances constitute 60.68% of the Bank’s total assets. They are, interalia, recognition, classification into performing and non-
governed by income recognition, asset classification and provisioning performing Advances and provisioning in accordance with the
(IRAC) norms and other circulars and directives issued by the RBI IRAC norms in respect of the branches audited by us;
from time to time which provide guidelines related to classification b. Existence and effectiveness of monitoring mechanisms
of Advances into performing and non- performing Advances (NPA), by way of various internal audits as per the policies and
classification of advances and provisioning thereof is made as per RBI procedures of the Bank;
guidelines. The Bank classifies these Advances based on IRAC norms as c. Examination of advances including stressed advances on a
per its accounting policy No.3 of Schedule 17.
sample basis with respect to compliance with the RBI Master
Circulars/ Directions/ Guidelines;
Identification of performing and non-performing Advances involves
d. We have examined the efficacy of various internal controls
establishment of proper mechanism. The Bank accounts for all the over advances to determine the nature, timing and extent
transactions related to Advances in its Information Technology System of the substantive procedures and compliance with the
(IT System) viz. Core Banking Solution (CBS) which identifies whether the observations of the various audits conducted as per the
advances are performing or non- performing. monitoring mechanism of the Bank and RBI SPARC, IRAR
The bank is in the continuous process to upgrade existing & implement and RMP.
new IT applications in various areas of its business operations, including e. In carrying out substantive procedures at the branches audited
income recognition and asset classification in terms of RBI guidelines. These by us, we have examined large advances/ stressed advances
applications require detailed testing, verifications and User Acceptance while other advances have been examined on a sample basis
Testing (UAT) before final implementation. including review of valuation reports of independent valuers
The carrying value of the advances (net of provisions) may be materially provided by the Bank’s management.
misstated if, either individually or in aggregate, the IRAC norms are not f. We assessed and evaluated the process of identification of
properly followed. NPAs and corresponding reversal of income and creation of
Considering the nature of the transactions, regulatory requirements, provisions;
existing business environment, estimation/ judgement involved in g. Reliance is also placed on Audit Reports of other Statutory
valuation of securities and calculation of provisions, it is a matter of high Branch Auditors.
importance for the intended users of the Standalone Financial Statements, h. Bank has laid down detailed Standard Operating Procedure
we have determined this as a Key Audit Matter. to ensure control over processes. We have relied on these
Accordingly, our audit was focused on income recognition, asset Standard Operating Procedures and have conducted our
classification and provisioning pertaining to advances due to the testing based on these Standard Operating Procedures.
materiality of the balances.

100
 ii. Classification and Valuation of Investments, Identification of and Our audit approach towards Investments with reference
provisioning for Non-Performing Investments (Schedule 8 read with Note to the RBI Master directions included the understanding of
2 of Schedule 17 to the financial statements): internal controls and substantive audit procedures in relation
Investments include investments made by the Bank in various to valuation, classification, identification of non-performing
Government Securities, other approved securities, Shares, Debentures investments (NPIs), provisioning/depreciation related to
& Bonds, subsidiaries & sponsored Institutions, and other approved Investments. In particular;
securities. a. We understood and evaluated the Bank’s internal control
Investments constitute 22.64 % of the Bank’s total assets. These are system to comply with relevant RBI guidelines regarding
governed by the circulars and directives of the RBI. These directions of valuation, classification, identification of NPIs, provisioning/
RBI, inter-alia, cover valuation of investments, classification of investments, depreciation related to investments;
identification of non-performing investments, the corresponding non- b. For the selected sample of investments in hand, we tested
recognition of income and provision thereof. accuracy and compliance with the RBI Master directions
Considering the complexities and extent of judgement involved in the by re-performing valuation for each category of security.
valuation, volume of transactions, investments on hand and degree of Samples were selected after ensuring that all the categories
regulatory focus, this has been determined as a Key Audit Matter. of investments (based on nature of security) were covered
Accordingly, our audit was focused on valuation of investments, in the sample;
classification, identification of non-performing investments and c. We assessed and evaluated the process of identification of
provisioning related to investments. NPIs and corresponding reversal of income and creation of
provision;
d. We carried out substantive audit procedures to recompute
independently the provision to be maintained and
depreciation to be provided in accordance with RBI
guidelines.
iii. Assessment of Provisions and Contingent liabilities in respect of Our audit approach involved:
certain litigations on Taxes, various claims filed by other parties not a. Understanding the current status of the litigations/ tax
acknowledged as debt (Schedule 12 read with Note 15 (k) of Schedule 18 to assessments including the status upto the date of auditor’s report;
the financial statements): b. Examining recent orders and/or communication received from
There is high level of judgement required in estimating the level of various tax authorities/judicial forums and follow up action thereon;
provisioning. The Bank’s assessment is supported by the facts of c. Review and analysis of evaluation of the contentions of the Bank
matter, their own judgement, past experience, and advice from legal through discussions, collection of details of the subject matter under
and independent tax consultants wherever considered necessary. consideration, the likely outcome and consequent potential outflows
Accordingly, unexpected adverse outcomes may significantly impact the on those issues; and
Bank’s reported profit and state of affairs presented in the Balance Sheet. d. Verification of disclosures related to significant litigations and
We determined the above area as a Key Audit Matter in view of associated taxation matters.
uncertainty relating to the outcome of these matters which requires
application of judgement in interpretation of law. Accordingly, our audit
was focused on analyzing the facts of subject matter under consideration
and judgements/interpretation of law involved.
iv. Information Technology (“IT”) Systems and Controls impacting Our protocols pertaining to this issue comprised the following measures:
Financial Reporting Technology specialist assisted in the evaluation of the controls governing
The Bank’s IT environment comprises a multitude of autonomous and the Bank’s IT systems by gaining knowledge of the IT infrastructure, IT
interdependent IT systems that are utilized to process and record a environment, and IT systems. We assessed and examined the pertinent IT
substantial volume of transactions in the course of business operations. general controls on the critical IT systems and IT dependencies that were
determined to be significant for our examination of the Bank’s standalone
Consequently, the Bank’s financial reporting process is highly critical and financial statements and financial reporting process. Important general
reliant on these information technology systems. controls in information technology have been evaluated for the critical IT
systems in the following domains:
Appropriate IT general controls and IT application controls are necessary Programme change management, encompassing the transfer of programme
to ensure that such IT systems can process the data in a consistent, modifications to the production environment in accordance with established
comprehensive, and accurate manner, as required for dependable financial protocols,
reporting. while also ensuring the appropriate segregation of environments.
We have identified specific critical IT systems that significantly influence User access management, encompassing activities such as provisioning
the financial reporting process and associated control testing. These and de-provisioning user access, conducting access reviews, managing
systems are considered a critical audit matter due to several factors, including passwords, overseeing sensitive access rights, and implementing segregation
the Bank’s extensive use of automation, the complex nature of its IT of duties, to guarantee that only authorised personnel were granted privilege
architecture, and the influence it has on the financial records and financial access to applications, operating systems, and databases in the production
reporting process. environment.
Programme development, encompassing the establishment of controls
pertaining to the development or implementation of IT applications and the
associated infrastructure, upon which financial reporting is dependent.
IT operations, encompassing tasks such as backup and recovery,
monitoring, and job scheduling.
In addition, we assessed the operational efficiency and design of critical
IT dependencies that are integral to the critical business process. This
encompassed the testing of interfaces, automated controls, accounting
procedures, calculations, segregation of duties, and system-generated
reports, where applicable.
We established communication with individuals responsible for governance
and management, and when required, we implemented alternative audit
procedures and/or tested a combination of compensating controls or
remedied controls.

Information Other than the Standalone Financial Statements and statements, our responsibility is to read the other information
Auditor’s Report Thereon and, in doing so, consider whether the other information is
5. The Bank’s Board of Directors is responsible for the other materially inconsistent with the standalone financial statements
information.The other information comprises the Corporate or our knowledge obtained in the audit or otherwise appears to
Governance Report, but does not include the standalone be materially misstated.
financial statements and our auditor’s report thereon. If, based on the work we have performed, we conclude that
Our opinion on the standalone financial statements does not there is a material misstatement of this other information; we
cover the other information and we do not express any form of are required to report that fact. We have nothing to report in
assurance or conclusion thereon. this regard.
In connection with our audit of the standalone financial

101
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24
Responsibilities of Management and Those Charged with a material uncertainty exists, we are required to draw attention
Governance for the Standalone Financial Statements in our auditor’s report to the related disclosures in the financial
6. The Bank’s Board of Directors is responsible for the matters statements or, if such disclosures are inadequate, to modify
stated in section 134(5) of the Companies Act, 2013 with respect our opinion. Our conclusions are based on the audit evidence
to the preparation of these standalone financial statements obtained up to the date of our auditor’s report. However, future
that give a true and fair view of the financial position, financial events or conditions may cause the Bank to cease to continue
performance and cash flows of the Bank in accordance with as a going concern.
the accounting principles generally accepted in India, including
the Accounting Standards specified under section 133 of the • Evaluate the overall presentation, structure and content of the
Act, and provisions of Section 29 of the Banking Regulation financial statements, including the disclosures, and whether the
Act, 1949 and circulars and guidelines issued by the Reserve financial statements represent the underlying transactions and
Bank of India (‘RBI’) from time to time. This responsibility events in a manner that achieves fair presentation.
also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of Materiality is the magnitude of the misstatements in the standalone
the assets of the Bank and for preventing and detecting frauds financial statements that, individually or in aggregate, makes it
and other irregularities; selection and application of appropriate probable that the economic decisions of a reasonably knowledgeable
accounting policies; making judgments and estimates that user of the financial statements may be influenced. We consider
are reasonable and prudent; and design, implementation quantitative materiality and qualitative factors in (i) planning the
and maintenance of adequate internal financial controls, scope of our audit work and evaluating the results of our work;
that were operating effectively for ensuring the accuracy and (ii) to evaluate the effect of any identified misstatement in the
and completeness of the accounting records, relevant to the financial statements.
preparation and presentation of the standalone financial
statements that give a true and fair view and are free from We communicate with those charged with governance regarding,
material misstatement, whether due to fraud or error. among other matters, the planned scope and timing of the audit and
In preparing the standalone financial statements, the significant audit findings, including any significant deficiencies in
management is responsible for assessing the Bank’s ability to internal control that we identify during our audit.
continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of We also provide those charged with governance with a statement that
accounting unless management either intends to liquidate the we have complied with the relevant ethical requirements regarding
Bank or to cease operations, or has no realistic alternative but independence, and to communicate with them all relationships
to do so. and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Auditor’s Responsibilities for the audit of the Financial Statements
7. Our objectives are to obtain reasonable assurance about From the matters communicated with those charged with governance,
whether the financial statements as a whole are free from we determine those matters that were of most significance in the audit
material misstatement, whether due to fraud or error, and to of the financial statements of the current period and are therefore
issue an auditor’s report that includes our opinion. Reasonable the key audit matters. We describe these matters in our auditor’s
assurance is a high level of assurance, but is not a guarantee that report unless law or regulation precludes public disclosure about
an audit conducted in accordance with SAs will always detect a the matter or when, in extremely rare circumstances, we determine
material misstatement when it exists. Misstatements can arise that a matter should not be communicated in our report because the
from fraud or error and are considered material if, individually adverse consequences of doing so would reasonably be expected to
or in the aggregate, they could reasonably be expected to outweigh the public interest benefits of such communication.
influence the economic decisions of users taken on the basis of
these financial statements. Other Matters
8. We did not audit the financial statements / information of
As part of an audit in accordance with SAs, we exercise 980 branches/ offices included in the standalone financial
professional judgment and maintain professional scepticism statements of the Bank whose financial statements / financial
throughout the audit. We also: information reflect total assets of Rs 70622.21 Crore as at 31st
Identify and assess the risks of material misstatement of the March 2024 and total revenue of Rs. 8476.06 Crore for the year
financial statements, whether due to fraud or error, design and ended on that date, as considered in the standalone financial
perform audit procedures responsive to those risks, and obtain statements. These branches cover 93.40 % of advances, 93.65
audit evidence that is sufficient and appropriate to provide a % of deposits and 91.86 % of non-performing assets as at 31st
basis for our opinion. The risk of not detecting a material March 2024 and 70.41 % of revenue for the year ended 31st
misstatement resulting from fraud is higher than for one March 2024. The financial statements / information of these
resulting from error, as fraud may involve collusion, forgery, branches have been audited by the branch auditors whose
intentional omissions, misrepresentations, or the override of reports have been furnished to us, and our opinion in so far as
internal control. it relates to the amounts and disclosures included in respect of
branches, is based solely on the reports of such branch auditors.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate 9. The annual financial results include the results for the quarter
in the circumstances. Under section 143(3) (i) of the Companies
Act, 2013, we are also responsible for expressing our opinion ended 31st March 2024 being the balancing figure between the
on whether the Bank has adequate internal financial controls audited figures in respect of the full financial year and the pub-
system in place and the operating effectiveness of such controls. lished unaudited year to date figures up to the third quarter of
the current financial year which were subjected to limited review
• Evaluate the appropriateness of accounting policies used by us.
and the reasonableness of accounting estimates and related Our opinion is not modified in respect of these matters.
disclosures made by management.
Report on Other Legal and Regulatory Requirements
• Conclude on the appropriateness of management’s use of the
going concern basis of accounting and, based on the audit 10. The Balance Sheet and the Profit and Loss Account have been
evidence obtained, whether a material uncertainty exists related drawn up in accordance with the provisions of Section 29 of the
to events or conditions that may cast significant doubt on the Banking Regulation Act, 1949 and Section 133 of the Companies
Act, 2013.
Bank’s ability to continue as a going concern. If we conclude that

102
11. The Comptroller and Auditor General of India has issued direc- i) the Bank has disclosed the impact of pending litigations
tions indicating the areas to be examined in terms of sub-section on its financial position in its financial statements – in
(5) of section 143 of the Companies Act, 2013, the compliance of Schedule 12., to the financial statements;
which is set out in “Annexure-A” to this Report.
ii) the Bank has made Nil provision, as required under the
12. As required by sub-section (3) of section 30 of the Banking Regu- applicable law or accounting standards, for material
lation Act, 1949, we report that: foreseeable losses, if any, on long term contracts
including derivative contracts;
(a) we have obtained all the information and explanations which,
to the best of our knowledge and belief, were necessary iii) there has been no delay in transferring amounts,
for the purpose of our audit and have found them to be required to be transferred, to the Investor Education
satisfactory; and Protection Fund by the Bank
(b) the transactions of the Bank, which have come to our
notice, have been within the powers of the Bank; iv) a) The management has represented that, to
(c) the returns received from the offices; and branches of the the best of its knowledge and belief, other than as
Bank have been found adequate for the purposes of our disclosed in the notes to the accounts, no funds
audit; have been advanced or loaned or invested (either
(d) the profit and loss account shows a true balance of profit from borrowed funds or share premium or any other
for the year then ended. sources or kind of funds) by the Bank to or in any other
person(s) or entity(ies), including foreign entities
13. Further, as required by section 143(3) of the Act, we report (“Intermediaries”), with the understanding, whether
that: recorded in writing or otherwise, that the Intermediary
a) we have sought and obtained all the information and shall, whether, directly or indirectly lend or invest in
explanations which to the best of our knowledge and belief other persons or entities identified in any manner
were necessary for the purpose of our audit; whatsoever by or on behalf of the company (“Ultimate
b) in our opinion, proper books of account as required by law Beneficiaries”) or provide any guarantee, security or
have been kept by the Bank so far as it appears from our the like on behalf of the Ultimate Beneficiaries;
examination of those books and proper returns adequate b) The management has represented, that, to
for the purposes of our audit have been received from the best of its knowledge and belief, other than as
branches not visited by us; disclosed in the notes to the accounts, no funds
c) the reports on the accounts of the branch offices of the have been received by the Bank from any person(s)
bank audited under section 143(8) of the Act by branch or entity(ies), including foreign entities (“Funding
auditors of the Bank have been sent to us and have been Parties”), with the understanding, whether recorded
properly dealt with by us in preparing this report; in writing or otherwise, that the Bank shall, whether,
d) the Balance Sheet, the Statement of Profit and Loss and directly or indirectly, lend or invest in other persons or
the Statement of Cash Flows dealt with in this report are in entities identified in any manner whatsoever by or on
agreement with the books of account and with the returns behalf of the Funding Party(“Ultimate Beneficiaries”)
received from the branches not visited by us; or provide any guarantee, security or the like on behalf
e) in our opinion, the aforesaid standalone financial of the Ultimate Beneficiaries; and
statements comply with the Accounting Standards c) Based on such audit procedures that were
specified under Section 133 of the Act, to the extent they considered reasonable and appropriate by us in the
are not inconsistent with the accounting policies prescribed circumstances, nothing has come to our notice that
by RBI; has caused us to believe that the representations
f) as per Notification No. GSR 463(E) dated 05.06.2015 under sub clause (a) and (b) contain any material
Section 164(2) of Companies Act, 2013 is not applicable misstatement.
to Jammu & Kashmir Bank Limited being a Government
Company; v) the dividend declared and paid during the year by the
g) with respect to the adequacy of the internal financial bank is in compliance with section 123 of the Companies
controls over financial reporting of the Bank and the Act 2013.
operating effectiveness of such controls, refer to our
separate Report in “Annexure B”; vi) As per the proviso to Rule 3(1) of the Companies
h) as per the Notification No.GSR 463(E) dated 05.06.2015 (Accounts) Rules, 2014 (as amended), the bank has
Section 197 of Companies Act, 2013 is not applicable to used such accounting software for maintaining its
The Jammu & Kashmir Bank Limited, being a Government books of account which has a feature of recording
Company; audit trail (edit log) facility and the same has been
i) with respect to the other matters to be included in operated throughout the year for all transactions
the Auditor’s Report in accordance with Rule 11 of the recorded in the software and the audit trail feature
Companies (Audit and Auditors) Rules, 2014, in our opinion has not been tampered with and the audit trail has
and to the best of our information and according to the been preserved by the company as per the statutory
explanations given to us: requirements for record retention.

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160
UDIN: 24541550BKAEUR9648 UDIN: 24089562BKCMZL2222 UDIN: 24080160BKCSIZ2889

Place : Srinagar
Dated: 4th May, 2024

103
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Annexure - A to Para 14 of Independent Auditor’s Report of even date on the standalone Financial Results of Jammu & Kashmir
Bank Limited. Directions/sub-directions of Comptroller and Auditor General of India under Section 143(5) of Companies Act 2013 for
the Financial Year 2023-2024

S. Directions/Sub directions Auditor’s comments including action taken wherever Impact on

No. required. accounts
and
financial
statements
1 Whether the company has system in place to process all the accounting As per information and explanation given to us the Nil
transactions through IT system? If yes, the implications of processing of bank has system in place to process all the accounting
accounting transactions outside IT system on the integrity of the accounts transactions through IT.
along with the financial implication, if any may be stated.

2 Whether there is any restructuring of an existing loan or cases of waiver/ Yes, the restructuring of loan was done as per the Refer
write off of debts/loans/interest etc. made by a lender (Jammu & provisions of the Reserve Bank of India and Bank’s own Schedule
Kashmir Bank Ltd) to the company (All Borrowers) due to the company’s Restructuring of loan Policy. 18 Note 4(b)
(Borrower’s) inability to repay the loan? If yes, the financial impact may be and 4(g)
stated. Whether such cases are properly accounted for? (In case, lender is
a Government company, then this direction is also applicable for statutory
auditor of lender company).
3 Whether funds (grants/subsidy etc.) received/receivable for specific There are no deviations. The loans received are utilized Nil
schemes from Central/State Government or its agencies were properly for the intended purpose. However, during the FY
accounted for/ utilized as per its term and conditions? List the cases of 2023-24 grants/ subsidy received have been utilized in
deviation. accordance with the stipulated guidelines.

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160
UDIN: 24541550BKAEUR9648 UDIN: 24089562BKCMZL2222 UDIN: 24080160BKCSIZ2889

Place : Srinagar
Dated: 4th May, 2024

104
 Annexure B to the Independent Auditor’s Report of even date on the standalone financial statements of
Jammu & Kashmir Bank Limited
(Referred to in paragraph 13(g) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143
of the Companies Act, 2013

1. We have audited the internal financial controls over financial the risks of material misstatement of the financial statements,
reporting of The Jammu & Kashmir Bank Limited (‘the Bank’) whether due to fraud or error.
as at 31 March 2024 in conjunction with our audit of the
standalone financial statements of the Bank for the year ended We believe that the audit evidence we have obtained is
on that date. sufficient and appropriate to provide a basis for our audit
opinion on the Bank’s internal financial controls system over
Management’s Responsibility for Internal Financial Controls over financial reporting.
Financial Reporting
2. The Bank’s Board of Directors is responsible for establishing Meaning of Internal Financial Controls over Financial Reporting
and maintaining internal financial controls based on the internal 5. A bank’s internal financial controls over financial reporting is a
control over financial reporting criteria established by the process designed to provide reasonable assurance regarding
Bank considering the essential components of internal control the reliability of financial reporting and the preparation of
stated in the Guidance Note on Audit of Internal Financial financial statements for external purposes in accordance with
Controls Over Financial Reporting (‘the Guidance Note’) issued generally accepted accounting principles. A bank’s internal
by the Institute of Chartered Accountants of India (‘the ICAI’). financial controls over financial reporting includes those
These responsibilities include the design, implementation and policies and procedures that (1) pertain to the maintenance of
maintenance of adequate internal financial controls that were records that, in reasonable detail, accurately and fairly reflect
operating effectively for ensuring the orderly and efficient the transactions and dispositions of the assets of the bank; (2)
conduct of its business, including adherence to Bank’s policies, provide reasonable assurance that transactions are recorded
the safeguarding of its assets, the prevention and detection as necessary to permit preparation of financial statements
of frauds and errors, the accuracy and completeness of the in accordance with generally accepted accounting principles,
accounting records, and the timely preparation of reliable and that receipts and expenditures of the bank are being made
financial information, as required under the Companies Act, only in accordance with authorisations of management and
2013 (‘the Act’). directors of the bank; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorized
Auditor’s Responsibility acquisition, use, or disposition of the bank’s assets that could
3. Our responsibility is to express an opinion on the Bank’s have a material effect on the financial statement.
internal financial controls over financial reporting based on
our audit. We conducted our audit in accordance with the Inherent Limitations of Internal Financial Controls over Financial
Guidance Note on Audit of Internal Financial Controls Over Reporting
Financial reporting (‘the Guidance Note’) and the Standards on 6. Because of the inherent limitations of internal financial controls
Accounting (“the standards”), issued by the ICAI and deemed over financial reporting including the possibility of collusion
to be prescribed under section 143 (10) of the Act, to the extent or improper management override of controls, material
applicable to an audit of internal financial controls, both issued misstatements due to error or fraud may occur and not be
by the ICAI. Those Standards and the Guidance Note require detected. Also, projections of any evaluation of the internal
that we comply with ethical requirements and plan and perform financial controls over financial reporting to future periods
the audit to obtain reasonable assurance about whether are subject to the risk that the internal financial controls
adequate internal financial controls over financial reporting over financial reporting may become inadequate because of
were established and maintained and if such controls operated changes in conditions, or that the degree of compliance with
effectively in all material respects. the policies or procedures may deteriorate.

4. Our audit involves performing procedures to obtain audit Opinion

evidence about the adequacy of the internal financial 7. In our opinion, the Bank has, in all material respects, an
controls system over financial reporting and their operating adequate internal financial controls system over financial
effectiveness. Our audit of internal financial control over reporting and such internal financial controls over financial
financial reporting included obtaining an understanding of reporting were operating effectively as at 31 March 2024,
internal financial controls over financial reporting, assessing based on the internal control over financial reporting criteria
the risk that a material weakness exists, and testing and established by the Bank considering the essential components
evaluating the design and operating effectiveness of internal of internal control stated in the Guidance Note issued by the
control based on the assessed risk. The procedures selected ICAI.
depend on the auditor’s judgement, including the assessment of

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160
UDIN: 24541550BKAEUR9648 UDIN: 24089562BKCMZL2222 UDIN: 24080160BKCSIZ2889

Place : Srinagar
Dated: 4th May, 2024

105
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Standalone Balance Sheet

as at 31st March, 2024
As at As at
CAPITAL AND LIABILITIES 31-03-2024 31-03-2023
Schedule ` “000” omitted ` “000” omitted
Capital 1 11,01,326 10,31,623

Reserves and Surplus 2 12,12,55,497 9,84,00,757

Deposits 3 1,34,77,48,949 1,22,03,77,383

Borrowings 4 2,88,50,015 2,89,23,058

Other Liabilities and Provisions 5 4,63,10,109 11,08,89,767

TOTAL :- 1,54,52,65,896 1,45,96,22,588

ASSETS

Cash and Balance with Reserve Bank of India 6 7,25,00,801 7,79,40,577

Balance with Banks & Money at Call & Short Notice 7 92,74,028 1,08,46,044

Investments 8 34,98,67,091 34,82,91,521

Advances 9 93,76,25,111 82,28,54,513

Fixed Assets 10 2,25,74,772 2,27,15,388

Other Assets 11 15,34,24,093 17,69,74,545

TOTAL :- 1,54,52,65,896 1,45,96,22,588

Contingent Liabilities 12 4,84,48,743 5,23,37,681

Bills for Collection 1,51,32,708 1,70,54,071

Principal Accounting Policies 17

Notes on Accounts 18

The schedules referred to above form an integral part of the Balance Sheet.

Baldev Prakash R. K. Chhibber Naba Kishore Sahoo Umesh Chandra Pandey Anil Kumar Goel Anand Kumar
Managing Director & CEO Director Director Director Director Director
DIN: 09421701 DIN: 08190084 DIN: 07654279 DIN: 01185085 DIN: 00672755 DIN: 03041018

Sudhir Gupta Shahla Ayoub Fayaz Ahmad Ganai Mohammad Shafi Mir
Executive Director Director Chief Financial Officer Company Secretary
DIN: 09614492 DIN: 09834993

Place : Srinagar
Dated: 4th May, 2024

In terms of our report of even date annexed

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160
UDIN: 24541550BKAEUR9648 UDIN: 24089562BKCMZL2222 UDIN: 24080160BKCSIZ2889

Place : Srinagar
Dated: 4th May, 2024

106
Schedules to Standalone Balance Sheet
as at 31st March, 2024
As at As at
SCHEDULE 1 - CAPITAL 31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted
Authorised Capital

1,850,000,000 (P.Y. 1,850,000,000 )

Equity Shares of Rs.1/- each 1,850,000 1,850,000

Issued :-

1,101,400,463 (P.Y 1,031,697,861) Equity Shares of Rs.1/= each 1,101,400 1,031,698

Subscribed and Paid-up Capital

1,101,182,463 (P.Y. 1,031,479,861 )

Equity Shares of Rs. 1/- each 1,101,182 1,031,479

Add Forfeited Equity Shares (218,000 ) ( P.Y. 218,000) 144 144

TOTAL 1,101,326 1,031,623

SCHEDULE 2 - RESERVES & SURPLUS

I. Statutory Reserves

Opening Balance 27,030,883 24,037,433

Additions during the year 4,418,171 2,993,450

Deductions during the year - -

Closing Balance 31,449,054 27,030,883

II. Capital Reserves

a) Revaluation Reserve Fixed Assets

Opening Balance 12,812,625 9,498,454

Additions during the year on account of Revaluation Reserve 179,256 3,519,560

Deduction during the year (depreciation) (302,758) (205,389)

Closing Balance 12,689,123 12,812,625

b) Others

Opening Balance 2,888,472 2,888,472

Additions during the year - -

Deductions during the year - -

Closing Balance 2,888,472 2,888,472

III. Share Premium

Opening Balance 21,824,157 17,604,651

Additions during the year 7,370,346 4,219,506

Deductions during the year

107
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedules to Standalone Balance Sheet

as at 31st March, 2024
As at As at
31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted
Closing Balance 29,194,503 21,824,157

IV) Revenue and other Reserves

a) Investment Fluctuation Reserve

Opening Balance 2,095,800 377,800

Additions during the year - 1,718,000

Deductions during the year - -

Closing Balance 2,095,800 2,095,800

b) Special Reserve (u/s 36 (i) (viii) of i.tax act, 1961

Opening Balance 1,231,600 1,231,600

Additions during the year 245,000 -

Deductions during the year - -

Closing Balance 1,476,600 1,231,600

c) Other Reserve

Opening Balance 30,517,220 23,565,220

Additions during the year 10,944,725 8,670,000

Deductions during the year - (1,718,000)

Closing Balance 41,461,945 30,517,220

TOTAL ( I,II,III & IV) 121,255,497 98,400,757

SCHEDULE 3 - DEPOSITS

A I. Demand Deposits

i) From Banks 1,114,430 1,331,995

ii) From Others 147,123,147 138,600,300

TOTAL (I & ii) 148,237,577 139,932,295

II. Saving Bank Deposits 532,488,529 520,247,496

III. Term Deposits

i) From Banks 28,280,883 21,387,369

ii) From Others 638,741,960 538,810,223

TOTAL (i & ii) 667,022,843 560,197,592

TOTAL A (I+II+III) 1,347,748,949 1,220,377,383

B. I. Deposits of branches in India 1,347,748,949 1,220,377,383

II. Deposits of branches outside India - -

TOTAL B (I+II) 1,347,748,949 1,220,377,383

108
Schedules to Standalone Balance Sheet
as at 31st March, 2024
As at As at
31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted
SCHEDULE 4 - BORROWINGS

I. Borrowings in India

i) Reserve Bank of India - -

ii) Other Banks - -

iii) Unsecured Redeemable Debentures/Bonds (BASEL III for Tier I &
28,810,000 28,810,000
Tier II Capital)
iv) Other Institutions & Agencies 40,015 113,058

TOTAL ( i to iv ) 28,850,015 28,923,058

II. Borrowings outside India - -

GRAND TOTAL ( I & II ) 28,850,015 28,923,058

Secured borrowings included in I & II above Nil Nil

SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS

i) Bills Payable 3,826,531 2,985,297

ii) Inter Office Adjustments (Net) - -

iii) Interest Accrued 237,195 289,481

iv) Deferred Tax Liability (Net) - -

v) Provision Against Standard Assets 4,313,990 5,460,829

vi) Other (Including Provisions) 37,932,393 102,154,160

TOTAL ( i to vi) 46,310,109 110,889,767

SCHEDULE 6 - CASH & BALANCES WITH RESERVE BANK OF INDIA

I. Cash in Hand (Including Foreign Currency Notes) 6,156,011 6,373,076

II. Balance with Reserve Bank of India

a) In Current Account 58,344,790 54,567,501

b) In Other Accounts 8,000,000 17,000,000

TOTAL (I & II) 72,500,801 77,940,577

109
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedules to Standalone Balance Sheet

as at 31st March, 2024
As at As at
31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted
SCHEDULE 7 - BALANCE WITH BANKS AND MONEY AT CALL AND
SHORT NOTICE

I. In India

i) Balance with Banks

a) In Current Accounts 164,555 416,670

b) In Other Deposit Accounts 10 10

TOTAL (i) of (a & b) 164,565 416,680

ii) Money At Call and Short Notice

a) With Banks - 1,000,000

b) With Other Institutions 7,995,576 8,708,708

TOTAL (ii) of (a & b) 7,995,576 9,708,708

TOTAL (i & ii) 8,160,141 10,125,388

II. Outside India

i) In Current Accounts 530,052 227,636

ii) In Other Deposit Accounts - -

iii) Money at Call & Short Notice 583,835 493,020

TOTAL II of (i, ii & iii) 1,113,887 720,656

GRAND TOTAL (I&II) 9,274,028 10,846,044

SCHEDULE 8 - INVESTMENTS

I. Investments in India in

i) Government Securities 299,205,666 291,558,271

ii) Other Approved Securities - -

iii) Shares (Pref. + Equity) 1,005,292 1,018,560

iv) Debentures and Bonds 7,566,743 7,145,437

v) Subsidiaries and/or Joint Ventures 400,000 400,000

vi) Sponsored Institutions 2,179,726 87,508

vii) Others :

a) Certificate of Deposit 39,260,750 47,754,843

b) Suitfile - -
c) Venture Capital 239 239
d) Commercial Paper - -
e) Security Receipts 248,675 326,663
TOTAL ( I ) 349,867,091 348,291,521

110
Schedules to Standalone Balance Sheet
as at 31st March, 2024
As at As at
31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted

II. Investments Outside India in

i) Government Securities Nil Nil

ii) Subsidiaries and/or Joint Ventures abroad Nil Nil

iii) Others investments Nil Nil

TOTAL II of (i-iii) - -

TOTAL (I & II) 349,867,091 348,291,521

III. Investments Category-Wise

i) Held to Maturity 290,695,663 268,010,374

ii) Held for Trading 6,421 11,726

iii) Available for Sale 59,165,007 80,269,421

TOTAL III of (i-iii) 349,867,091 348,291,521

SCHEDULE 9 - ADVANCES

A i) Bills Purchased and Discounted 1,861,700 2,123,234

ii) Cash Credits, Overdrafts and Loans Repayable on Demand 267,253,699 252,298,285

iii) Term Loans 668,509,712 568,432,994

TOTAL (i to iii) 937,625,111 822,854,513

B i) Secured by Tangible Assets (includes advances against book debts) 649,018,028 566,150,949

ii) Covered by Bank/Govt. Guarantees 3,140,303 3,602,502

iii) Unsecured 285,466,780 253,101,062

TOTAL (i to iii) 937,625,111 822,854,513

C I. Advances in India

i) Priority Sector 352,044,234 253,934,033

ii) Public Sector 11,066,140 6,416,170

iii) Banks 3,414 39

iv) Others 574,511,323 562,504,271

TOTAL (i to iv) 937,625,111 822,854,513

II. Advances Outside India

i) Due from Banks - -

ii) Due from Others - -

GRAND TOTAL ( I & II ) 937,625,111 822,854,513

111
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedules to Standalone Balance Sheet

as at 31st March, 2024
As at As at
31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted
SCHEDULE 10 - FIXED ASSETS

I. Premises

a) At cost as at 31st March of the preceding year 21,449,425 17,807,006

Additions during the year 432,942 3,759,443

21,882,367 21,566,449

Deductions during the year 194,125 117,024

21,688,242 21,449,425

Depreciation to date 3,297,120 2,934,324

Total (a) 18,391,122 18,515,101

b) Constructions work in progress 407,100 441,257

TOTAL (I) [ a+b ] 18,798,222 18,956,358

II. Other Fixed Assets (Including Furniture & Fixtures)

a) At cost as at 31st March of the preceding year 16,284,878 15,199,548

Additions during the year 1,862,862 1,101,660

18,147,740 16,301,208

Deductions during the year 99,520 16,330

18,048,220 16,284,878

Depreciation to date 14,359,568 12,557,812

TOTAL (II) 3,688,652 3,727,066

b) Capital work in progress 87,898 31,964

TOTAL (II) [ a+b ] 3,776,550 3,759,030

GRAND TOTAL (I & II) 22,574,772 22,715,388

SCHEDULE 11 - OTHER ASSETS

I. Interest Accrued 7,948,147 6,992,882

II. Inter Office Adjustment (Net) 700,609 702,481

III. Tax paid in Advance/Tax Deducted at Source (Net of Provisions) 628,514 1,864,986

IV. Stationery and Stamps 51,679 42,769

V. Deferred Tax Asset (Net) 1,551,197 1,828,499

VI. Non-Banking Assets acquired in satisfaction of claims - -

VII. Others * 142,543,947 165,542,928

TOTAL ( I to VII ) 153,424,093 176,974,545

* Includes deposits placed with NABARD/SIDBI/NHB/RIDF/MUDRA amounting to Rs. 97258125 thousand
(Previous year Rs. 68072650 thousand)
112
Schedules to Standalone Balance Sheet
as at 31st March, 2024
As at As at
31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted
SCHEDULE 12 - CONTINGENT LIABILITIES

I. Claims against the Bank not acknowledged as debts 3,592,693 2,446,709

II. Liability for partly paid investments - -

III. Liability on account of outstanding Forward Exchange Contracts 13,980,447 19,013,257

IV. Guarantees given on behalf of constituents:-

a) In India 22,754,491 21,964,418

b) Outside India 263,457 247,358

V. Acceptances, Endorsements & Other Obligations 5,056,171 5,926,586

VI. Other items for which the Bank is Contingently liable 2,801,484 2,739,353

TOTAL ( I to VI ) 48,448,743 52,337,681

113
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Standalone Profit & Loss Account

for the year ended at 31st March, 2024
YEAR ENDED YEAR ENDED
SCHEDULE 31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted
I INCOME
Interest Earned 13 112,123,623 93,551,062
Other Income 14 8,254,789 7,568,107
TOTAL 120,378,412 101,119,169
II EXPENDITURE
Interest Expended 15 60,086,768 46,098,253
Operating Expenses 16 37,522,857 36,436,014
Provisions and Contingencies 5,096,105 6,611,102
TOTAL 102,705,730 89,145,369
III NET PROFIT / (LOSS) 17,672,682 11,973,800
TOTAL 120,378,412 101,119,169
IV APPROPRIATIONS
TRANSFERED TO
i) Statutory Reserve 4,418,170 2,993,450
ii) Capital Reserve - -
iii) Revenue and Other Reserve 10,641,970 8,464,610
iv) Investment Fluctuation Reserve - -
v) Special Reserve 245,000 -
vi) Proposed Dividend 2,367,542 515,740
TOTAL 17,672,682 11,973,800
Principal Accounting Policies 17
Notes on Accounts 18
Earnings per Share (in Rs.) (Basic/Diluted) 16.80 12.43

The schedules referred to above form an integral part of the Profit & Loss Account.

Baldev Prakash R. K. Chhibber Naba Kishore Sahoo Umesh Chandra Pandey Anil Kumar Goel Anand Kumar
Managing Director & CEO Director Director Director Director Director
DIN: 09421701 DIN: 08190084 DIN: 07654279 DIN: 01185085 DIN: 00672755 DIN: 03041018

Sudhir Gupta Shahla Ayoub Fayaz Ahmad Ganai Mohammad Shafi Mir
Executive Director Director Chief Financial Officer Company Secretary
DIN: 09614492 DIN: 09834993

Place : Srinagar
Dated: 4th May, 2024

In terms of our report of even date annexed

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160
UDIN: 24541550BKAEUR9648 UDIN: 24089562BKCMZL2222 UDIN: 24080160BKCSIZ2889

Place : Srinagar
Dated: 4th May, 2024

114
Schedules to Standalone Profit & Loss Account
for the year ended at 31st March, 2024
YEAR ENDED YEAR ENDED
31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted
SCHEDULE 13 - INTEREST EARNED

I. Interest/Discount on Advances/Bills 86,086,671 69,975,540

II. Income on Investments (Net of Amortization) 22,654,302 20,709,235

III. Interest on Balances with R.B.I and other Inter Bank Funds 369,059 946,813

IV. Others 3,013,591 1,919,474

TOTAL (I to IV) 112,123,623 93,551,062

SCHEDULE 14 - OTHER INCOME

I. Commission, Exchange & Brokerage 2,380,283 1,586,530

II. Profit /(Loss) on Sale of Investments (Net) 575,221 516,668

Profit on Sale of Investments 575,221 562,506

Less: Loss on sale of investments - (45,838)

III. Profit /(Loss) on revaluation of Investments (Net) 458,561 (125,277)

Profit on revaluation of Investments 514,705 -

Less: loss on revaluation of investments (56,144) (125,277)

IV. Profit/( Loss) on Sale of Land, Buildings & Other Assets (Net) 10,670 11,932

Profit on Sale of Land, Buildings & Other Assets 10,838 12,721

Less: Loss on Sale of Land, Buildings & Other Assets (168) (789)

V. Profit /(Loss) on Exchange Transactions (Net) 122,264 142,024

Profit on Exchange Transactions 123,645 143,195

Less: Loss on E/Transactions (1,381) (1,171)

Income earned by way of Dividends etc. from Subsidiaries, Companies
VI. - -
and/or Joint Venture abroad/in India
VII. Miscellaneous Income 4,707,790 5,436,230

TOTAL (I to VII) 8,254,789 7,568,107

SCHEDULE 15 - INTEREST EXPENDED

I. Interest on Deposits 56,861,121 43,516,295

II. Interest on RBI/Inter-Bank Borrowings 375,672 364,795

III. Others 2,849,975 2,217,163

TOTAL (I to III) 60,086,768 46,098,253

115
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedules to Standalone Profit & Loss Account

for the year ended at 31st March, 2024

YEAR ENDED YEAR ENDED

31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted

SCHEDULE 16 - OPERATING EXPENSES

I. Payments to and provisions for Employees 25,715,586 27,036,554

II. Rent, Taxes and Lighting 1,129,150 1,047,628

III. Printing and Stationery 124,976 97,637

IV. Advertisement and Publicity 114,278 51,323

V. Depreciation on Bank’s Property 2,175,456 1,575,629

VI. Directors Fees, Allowances and Expenses 32,892 27,257

VII. Auditors Fees & Expenses (Including Branch Auditor’s fees & Expenses) 170,731 130,780

VIII. Law Charges 173,667 186,138

IX. Postage, Telegrams, Telephones etc. 53,457 49,391

X. Repairs and Maintenance 392,509 308,182

XI. Insurance 1,635,985 1,441,397

XII. Other Expenditure 5,804,170 4,484,098

TOTAL (I to XII) 37,522,857 36,436,014

116
Schedule 17
"Principal Accounting Policies"
A. Overview
Jammu and Kashmir Bank (J&K Bank) is a Scheduled Commercial Bank and one of the oldest private sector banks in
India, incorporated in 1938. J&K Bank is listed on both NSE and BSE and has its Corporate Headquarters at Srinagar. The
Bank functions as a leading bank in the Union Territories of Jammu & Kashmir and Ladakh and is designated by Reserve
Bank of India as agency bank for carrying out banking business for the Government of Jammu & Kashmir and Ladakh.
J&K Bank caters to banking requirements of various customer segments which includes Business enterprises, employees
of government, semi-government and autonomous bodies, farmers, artisans, public sector organizations and corporate
clients. Group companies of the J&K Bank include JKBFSL (wholly owned subsidiary) and JK Grameen Bank (Associate
RRB). The Bank offers a wide range of retail credit products, including home finance, personal loans, education loan,
agriculture lending, trade credit and consumer credit and a number of unique financial products tailored to the needs of
various customer segments.

B. Basis of preparation of Financial Statements

The accompanying financial statements are prepared on historical cost basis, except as otherwise stated, following the
“Going Concern” concept and conform to the Generally Accepted Accounting Principles (GAAP) in India, applicable
statutory provisions and regulatory norms prescribed by the Reserve Bank of India (RBI), statutory guidelines of the
Banking Regulation Act, 1949, applicable mandatory Accounting Standards (AS)/Guidance Notes/pronouncements issued
by the Institute of Chartered Accountants of India (ICAI) and practices prevailing in the banking industry in India.
The financial statements have been prepared in accordance with requirements under the Third Schedule of the Banking
Regulation Act, 1949.

C. Use of Estimates
The preparation of financial statements requires the management to make estimates and assumptions that are considered
in the reported amount of assets and liabilities (including contingent liabilities) as on the date of financial statements
and the reported income and expenses for the reporting period. Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable.

D. Significant Accounting Policies

1. Revenue Recognition
1.1 Income and expenditure are accounted on accrual basis, unless otherwise stated.
1.2 Interest / Discount income from Non-Performing Assets (NPAs) including investments is recognized in the Profit
and Loss Account on realization basis, as per the prudential norms prescribed by RBI.
1.3 Partial recovery in Non-Performing Assets is appropriated first towards principal and thereafter towards interest.
1.4 Fee, commission (other than insurance commission & Government business), exchange income, locker rent,
insurance claims, dividend on shares and units in Mutual Fund and interest on refund of income tax are accounted
for on receipt basis.
1.5 Interest on overdue Term Deposits is provided at the rate of interest applicable to Savings Bank Deposits.
1.6 Unforeseen income/ expenses are accounted for in the year of receipt/ payment.
1.7 Stationery issued to branches has been considered as consumed.

2. Investments
Investments are accounted for in accordance with the extant RBI guidelines on investment classification and valuation,
as given below:
2.1 Classification:
Investments are classified into Held to Maturity (HTM), Available for Sale (AFS) and Held for Trading (HFT)
categories, in accordance with the guidelines issued by Reserve Bank of India. Disclosure of the investments
under the three categories mentioned above is made under six classifications viz.
i. Government Securities
ii. Other Approved Securities
iii. Shares
iv. Bonds and Debentures
v. Subsidiaries and Joint Ventures
vi. Others
2.2 Basis of classification:
i. Investments that the Bank intends to hold till maturity are categorized as “Held to Maturity (HTM)”.
ii. Investments that are held principally for resale within 90 days from the date of purchase are categorized
as “Held for Trading (HFT)”.
iii. Investments, which are not classified in above two categories, are classified as “Available for Sale (AFS)”.
iv. An investment is classified as HTM, HFT or AFS at the time of its acquisition. Subsequent shifting
amongst categories is done with the approval of the Board normally once in a year and in conformity with

117
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 17
"Principal Accounting Policies"
regulatory guidelines.
v. Investments in subsidiaries and associates are classified as HTM.
2.3 Valuation:
i. Investments classified as “Held-to-Maturity” (HTM) category are carried at acquisition cost unless such costs
are higher than the face value, in which case, the premium is amortized over the term to maturity using
straight line method.
ii. The individual scrip’s in the “Available-for-Sale” category are marked to market at quarterly intervals. The
net depreciation under each of six classifications under which investments are presented in the balance
sheet is fully provided for, whereas the net appreciation under any of the aforesaid classifications is ignored.
iii. The individual scrip in the “held-for-trading” category is marked to market at weekly intervals and the net
depreciation under each of the six classifications under which investments are presented in the Balance
Sheet is accounted for in the Profit and Loss account and appreciation is ignored.
iv. The market value for the purpose of periodical valuation of investments, in case of quoted securities included
in “Available for Sale” and “Held for trading” categories is based on the prices declared by the Financial
Benchmarks India Pvt. Ltd. (FBIL) in accordance with RBI circular FMRD.DIRD.7/14.03.025/2017-18 dated
March 31, 2018. For securities whose prices are not published by FBIL, securities are revalued at market
prices available from the trades/quotes on the stock exchanges and prices declared by the Fixed Income
Money Market and Derivatives Association of India (FIMMDA).
In respect of unquoted securities, the procedure adopted is as below:
Category of Securities Value
Government of India Securities and State At rates put out by FIMMDA/PDAI/ Financial
Government Securities Benchmarks India Pvt. Ltd. (FBIL)
Other Approved Securities, Preference Shares, On yield to maturity (YTM) basis at the rate
Debentures and PSU Bonds prescribed by FIMMDA/PDAI/FBIL with such mark
ups as laid down by RBI or FIMMDA/PDAI/FBIL
Equity Shares At Break-up value (without considering revaluation
reserves) to be ascertained from the company’s
latest balance sheet. The date as on which the latest
balance sheet is drawn up shall not precede the date
of valuation by more than 18 months. In case, the
latest balance sheet is not available, the shares shall
be valued at Re.1 per company.
Mutual Fund Units At latest re-purchase price declared by the Mutual
Fund in respect of each scheme. In case of funds with
a lock-in period or any other fund, where repurchase
price is not available, units shall be value at Net Asset
Value (NAV) of the scheme. If NAV is not available,
these shall be valued at cost, till the end of the lock-in
period.
Treasury Bills and Commercial Papers At carrying cost
Certificate of deposits At carrying cost

v. Transfer of securities amongst categories is affected at the lower of acquisition cost/ book value/ market
value on the date of transfer and the depreciation, if any, on such shifting is fully provided for and the book
value of securities is changed accordingly.
vi. The transactions in all securities are recorded on a Settlement Date and cost is determined on the weighted
average cost method.
vii. Investments in subsidiary are valued at acquisition cost.
viii. Investments in J&K Grameen Bank/Sponsored Institutions are valued at carrying cost (i.e Book Value) as per
RBI Guidelines.
ix. The investment in security receipts obtained by way of sale of NPA to Asset Reconstruction Companies
(ARCs) is recognized at lower of Net Book Value (NBV) (i.e. Book value less provisions held), of the financial
asset and redemption value of the Security Receipt.
2.4 The depreciation in value of investments where interest/principal is in arrears is not set-off against the
appreciation in respect of other performing securities. Such investments including Non-performing Non-SLR
investments are treated applying RBI prudential norms on NPA Classification and appropriate provisions are made
as per RBI norms and no income on such investments is recognized.

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Schedule 17
"Principal Accounting Policies"
2.5 Profit or loss on sale of investments is taken to the Profit and Loss account. However, in case of profit on sale of
investments in “Held to Maturity” category, an equivalent amount of profit, net of taxes and the amount required
to be transferred to Statutory reserve, is appropriated to the “Capital Reserve Account”.
2.6 Broken period interest paid/received on debt instruments is treated as interest expense/income and is excluded
from cost/sale consideration.
2.7 Brokerage paid on securities purchased is charged to revenue account except for equity investment operations
where the same is added to the cost of purchase of investment.
2.8 Repurchase & Reverse repurchase transactions are accounted for in accordance with the extant RBI guidelines.
2.9 In accordance with RBI circular No. FMRD.DIRD.01/14.03.038/2018-19 dated July 24, 2018, the Bank has made
changes in accounting for Repo/ Reverse Repo transactions including Triparty Repo (Other than transactions
under the liquidity adjustment facility (LAF) with the RBI). Accordingly, the securities sold and purchased under
Repo/Reverse Repo are accounted for as collateralized lending and borrowing transactions. However, securities
are transferred as in the case of normal outright sale/purchase transactions and such movement of securities
are reflected using Repo/Reverse Repo accounts and contra entries. The above entries are reversed on the date
of maturity. Cost and revenue are accounted as interest expenditure/Income as the case may be. Balance in
Repo account is classified under schedule 4 (Borrowing) and balance in Reverse Repo account is classified under
schedule 7 (Balance with Banks & money at call & short notice).
2.10 In respect of Non-Performing Securities, income is not recognized and appropriate provision is made for
depreciation in the value of such securities as per Reserve Bank of India guidelines.

3. Advances
3.1 Classification of Advances and Provisions thereof have been made as per the Income Recognition, Asset Classification
and Provisioning Norms formulated by the RBI viz., Standard, Sub-Standard, Doubtful and Loss Assets. Bank has
made provisions on Non-Performing Assets as per the prudential norms prescribed by the RBI as under:
Category of Provision norms
Assets
Sub-Standard 15% on Secured Exposure
25% on Unsecured Exposure
20% on Unsecured Exposure in respect of Infrastructure loan accounts where certain
safeguards such as escrow accounts are available
Doubtful-I 25% on Secured
100% on Unsecured
Doubtful-II 40% on Secured
100% on Unsecured
Doubtful-III 100% on Secured
100% on Unsecured
Loss 100%

‘with effect from the quarter ended 31st December 2023 the bank shall maintain additional provisions @10% each in
respect of NPA BOS in sub-standard category (both secured/unsecured) and Doubtful -1 and Doubtful – 2 (secured
portion only) over and above the minimum provisions required as per the current IRAC norms.’
3.2 Advances are shown net of unrealized interest and provisions/ Technical write offs made in respect of non-
performing advances. Provisions on standard advances are reflected in Schedule 5 of the Balance Sheet under the
head “Other Liabilities & Provisions - Others” and are not considered for arriving at the Net NPAs.
3.3 Restructuring of Advances and provisioning thereof have been made as per RBI guidelines.
3.4 Amounts recovered against debts written off in earlier years are recognized as revenue in the year of recovery.
3.5 The Bank also makes additional provisions on specific non-performing assets.
3.6 Appropriation of recoveries in NPAs are made in order of priority as under:
i. Principal Due
ii. Charges, Costs, Commission etc.
iii. Unrealized Interest/ Interest

4. Floating Provisions
In accordance with the RBI guidelines, the Bank has an approved policy for creation and utilization of floating provisions
for advances. The quantum of floating provisions to be created is assessed at the end of each quarter. These provisions
are utilized only for contingencies under extraordinary circumstances specified in the policy with prior permission of
Reserve Bank of India.

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 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 17
"Principal Accounting Policies"
5. Fixed Assets and Depreciation
5.1 Fixed Assets, other than premises, are carried at cost less accumulated depreciation and impairment, if any.
Freehold premises are carried at revalued amount, being fair value at the date of revaluation less accumulated
depreciation.
5.2 Cost includes cost of purchase, freight, duties, taxes and all expenditure such as site preparation, installation costs
and professional fees incurred on the asset before it is put-to-use. Subsequent expenditure(s) incurred on the
assets put-to-use are capitalized only when it increases the future benefits from such assets or their functioning
capability. The fixed assets are depreciated as per straight line method, considering residual value at 5% of original
cost, as per the provisions of Companies Act 2013 based on the useful life of the assets prescribed in Part C of the
Schedule II of the Companies Act 2013 as given hereunder:
Description of Fixed Assets Useful Life (Years)
Buildings (With RCC Frame Structure) 60
Buildings (Other than RCC Frame Structure) 30
Boundary Wall 5
Plant and Machinery 15
Furniture and Fixtures 10
Vehicles 8
Others (Including temporary structures etc.) 3

Depreciation on computers (including ATMs/CDMs) along with software, forming integral part of the computers is
computed at 33.33% on straight line method in terms of RBI guidelines issued vide letter no BP.1660/21.04.018/2001
dated 01.02.2001, taking residual value as Nil.
In compliance with Section 15(1) of Banking Regulation Act, 1949, the Bank write off the entire amount of intangible
assets.
Useful life of the mobile phones is considered to be 2 years and the depreciation is charged in straight line method
as per provisions of Companies Act 2013 with no residual value.
5.3 In respect of assets acquired during the year, depreciation is charged on proportionate basis for the number of days
the assets have been put-to-use during the year.
5.4 Premium paid for leasehold properties is amortized over the period of lease.
5.5 The Bank revalues freehold immovable assets every three years. The increase in Net Book Value of the asset due
to revaluation is credited to the Revaluation Reserve Account without routing through the Profit and Loss Account.
However, where such an increase is a reversal of any previous decrease arising on revaluation which has been
charged to profit and loss account, such increase is credited to profit and loss account to the extent that it offsets
the previously recorded decrease. A decrease in net book value arising on revaluation of fixed assets is charged to
profit and loss account except that, to the extent such a decrease is related to a previous increase on revaluation
that is included in Revaluation Reserve, it is charged against that earlier increase. Additional Depreciation on the
revalued asset is charged to the Profit and Loss Account and appropriated from the Revaluation Reserves to
General Reserve. The revalued asset is depreciated over the balance useful life of the asset as assessed at the time
of revaluation.
5.6 Assets costing less than Rs.1,000 each are charged off in the year of purchase.

6. Employee Benefits
6.1 Short Term Employee Benefits:
The undiscounted amounts of short-term employee benefits which are expected to be paid in exchange for the
services rendered by employees are recognized during the period when the employee renders the service.
6.2 Long Term Employee Benefits:
i. Defined Contribution Plan:
Provident Fund: Provident Fund is a defined contribution scheme as the bank pays fixed contribution at pre-
determined rates. The obligation of the Bank is limited to such fixed contribution. The contributions are charged
to profit and loss account. The Bank is paying matching contribution towards those employees who have not
opted for the pension.
ii. Defined Benefit Plan
Gratuity
The Bank pays gratuity, a defined benefit plan, to vested employees on retirement or resignation or on death
while in employment or on termination of employment. The Bank makes contribution to recognized trust which
administers the funds on its own account or through insurance companies. Actuarial valuation of the gratuity
liability is determined by an independent actuary appointed by the Bank. Actuarial valuation of gratuity liability is

120
Schedule 17
"Principal Accounting Policies"
determined based on certain assumptions regarding rate of interest, salary growth, mortality and staff attrition
as per the projected unit credit method. The actuarial gains or losses arising during the year are recognized in
the profit and loss account.
Pension
The Bank provides for pension to all eligible employees. The Bank makes contribution to a trust which administers
the funds on its own account or through insurance companies. The plan provides for pension payment including
dearness relief on a monthly basis to these employees based on the respective employee’s years of service with
the Bank and applicable salary. Actuarial valuation of the pension liability is determined by an independent
actuary appointed by the Bank. Actuarial valuation of pension liability is determined based on certain assumptions
regarding rate of interest, salary growth, mortality and staff attrition as per the projected unit credit method.
The actuarial gains or losses arising during the year are recognized in the profit and loss account. Employees
covered by the pension plan are not eligible for employer’s contribution under the provident fund plan.
The Bank also operates a New Pension Scheme (NPS) for all employees joining the Bank on or after 1st August,
2010 (Such new joinees not being entitled to become members of the existing pension scheme). As per the
scheme, these employees contribute 10% of their salary and the Bank contributes 14% of the employee’s salary.
The amount contributed by the Bank to NPS during the year is recognized in the profit and loss account.
Leave Salary
The Bank provides for compensated absence based on actuarial valuation conducted by an independent
actuary, appointed by the Bank.

7. Transactions involving Foreign Exchange

7.1 Foreign currency transactions are recorded on initial recognition in the reporting currency by applying to the
foreign currency amount the exchange rate between the reporting currency and the foreign currency on the date
of transaction.
7.2 Foreign currency monetary items are reported using the Foreign Exchange Dealers Association of India (FEDAI)
closing (spot/forward) rates.
7.3 Monetary Assets and Liabilities as on balance sheet date have been translated using closing rate as at year-end
announced by FEDAI.
7.4 Exchange difference arising on the settlement of monetary items at rates different from those at which they were
initially recorded is recognized as income or as an expense in the period in which they arise.
7.5 Outstanding foreign exchange spot and forward contracts held for trading are revalued at the exchange rates
notified by FEDAI for specified maturities and the resulting Profit or Loss is recognized in the Profit and Loss
Account.

8. Segment Reporting
The Bank recognizes the business segment as the primary reporting segment in accordance with the RBI guidelines and
in compliance with the Accounting Standard 17 issued by Institute of Chartered Accountants of India (ICAI).

9. Taxes on Income
Income tax expense is the aggregate amount of current tax and deferred tax expense incurred by the Bank. The
current tax expense and deferred tax expense are determined in accordance with the provisions of the Income Tax Act,
1961 and as per Accounting Standard 22- “Accounting for taxes on Income” respectively. Deferred Tax adjustments
comprises of changes in the deferred tax assets or liabilities during the year. Deferred tax assets and liabilities are
recognized by considering the impact of timing differences between taxable income and accounting income for the
current year and carry forward losses. Deferred tax assets and liabilities are measured using tax rates and tax laws that
have been enacted or substantively enacted at the balance sheet date. The impact of changes in deferred tax assets
and liabilities is recognized in the profit and loss account.

10. Provisions, Contingent Liabilities and Contingent Assets

10.1 In conformity with AS 29 – “Provisions, Contingent Liabilities and Contingent Assets” issued by the Institute of
Chartered Accountants of India, the Bank recognizes provisions only when it has a present obligation because
of a past event, and would result in a probable outflow of resources to settle the obligation and when a reliable
estimate of the amount of the obligation can be made.
10.2 No provision is recognized for
I. Any possible obligation that arises from past events and the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Bank; or
II. Any present obligation that arises from past events but is not recognized because:
• It is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; or

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 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 17
"Notes on Standalone Accounts"
• A reliable estimate of the amount of obligation cannot be made.
Such obligations are recorded as Contingent Liabilities.
10.3 The Bank has made 100% provision for redemption against the accumulated reward points in respect of
standard credit card holders.
10.4 Contingent Assets are not recognized in the financial statements.

11. Impairment of Assets

Fixed assets are reviewed for impairment whenever events or changes in circumstances warrant that the carrying
amount of an asset may not be recoverable. Impairment to be recognized is measured by the amount by which the
carrying amount of the asset exceeds the fair value of the asset.

12. Share Issue Expenses

Share issue expenses are charged to the Share Premium account.

13. Earnings per Share

13.1 The Bank reports basic and diluted earnings per share in accordance with AS 20 – “Earnings per Share”
issued by the ICAI. Basic Earnings per Share are computed by dividing the Net Profit after Tax for the year
attributable to equity shareholders by the weighted average number of equity shares outstanding for the
year.
13.2 Diluted Earnings per Share reflect the potential dilution that could occur if securities or other contracts to
issue equity shares were exercised or converted during the year. Diluted Earnings per Share are computed
using the weighted average number of equity shares and dilutive potential equity shares outstanding at year
end.

122
Schedule 18
"Notes on Standalone Accounts"
1. Regulatory Capital (
1.1 a) Composition of Regulatory Capital (Different for Consolidated) (Amount in ` crore)
Sr. Current Previous
Particulars
No. Year Year

i) Common Equity Tier 1 capital (CET 1) 11180.59 8549.38

ii) Additional Tier 1 capital 1000.00 1000.00

iii) Tier 1 capital (i + ii) 12180.59 9549.38

iv) Tier 2 capital 2084.79 2352.40

v) Total capital (Tier 1+Tier 2) 14265.38 11901.78

vi) Total Risk Weighted Assets (RWAs) 93028.60 77373.33

vii) CET 1 Ratio (CET 1 as a percentage of RWAs) 12.02% 11.05%

viii) Tier 1 Ratio (Tier 1 capital as a percentage of RWAs) 13.09% 12.34%

ix) Tier 2 Ratio (Tier 2 capital as a percentage of RWAs) 2.24% 3.04%

Capital to Risk Weighted Assets Ratio (CRAR) (TotalCapital as a percentage
x) 15.33% 15.38%
of RWAs)
xi) Leverage Ratio 7.60% 6.35%
Percentage of the shareholding of
xii) Nil NIL
a) Government of India
9.85
xiii) Amount of paid-up equity capital raised during the year 6.97

xiv) Amount of non-equity Tier 1 capital raised during the year Nil NIL

xv) Amount of non-equity Tier 2 capital raised during the year Nil 1021

Revaluation Reserve has been reckoned as CET1 capital at a discount of 55% in line with RBI guidelines.
b) Drawdown from Reserves(BST) (Amount in ` crore)
S
Reserves Amount Drawn Purpose
No.

Depreciation on revalued portion of fixed assets amounting to `

30.09crore has been transferred to General Reserve. Further an
1 Revaluation Reserve 30.27
amount of ` 0.18crore has been transferred to general reserve on
account of disposal of a previously revalued asset.

1.2 During the FY 2022-23, the Bank raised equity capital through Employee Stock Purchase Scheme (JKBESPS-2023)
by allotting 7,00,00,000 (Seven Crores) equity shares to the eligible employees. Statutory Central Auditors for FY
2022-23 issued a Qualified Opinion stating that the JKBESPS-2023 was not implemented in conformity with Para
2.3.1.7 of RBI Circular no RBI/2015-16/95 DBR.No.Dir.BC.10/13.03.00/2015-16 on “Loans and Advances Statutory and
Other Restrictions” dated July 1,2015 and Clause 21 of JKBESPS-2023. The Bank, however has maintained that
the JKBESPS-2023 was in conformity with the applicable laws/regulations. The Bank received the listing approval
in respect of the shares issued under JKBESPS 2023 from BSE and NSE on May 03, 2023 and October 20, 2023
respectively and trading approval from both the exchanges on November 9, 2023.The Bank has, therefore, reckoned
the amount of Rs.338.31 crores for computation of financial ratios/prudential limits concerning net worth/capital
funds with effect from 31st December, 2023 in terms of independent examination and approval of the matter by the
Audit committee of the Board. (BST)
1.3 During financial year 2023-24, Bank has raised Equity Share Capital (including Share Premium) of Rs. 750 Crores
through Qualified Institutional Placement on 15 December, 2023. The Bank issued and allotted 6,97,02,602 fully
paid-up equity shares of Re. 1 each (face value) at a premium of Rs. 106.60 per share to the investors on discount of
4.49% (i.e. Rs.5.06 per share) on floor price of Rs. 112.66 per Equity Share determined, as per the formula prescribed

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ANNUAL REPORT 2023-24

Schedule 18
"Notes on Standalone Accounts"
under Regulations 176(1) of the SEBI ICDR Regulations. Due to change in accounting policy, para D(12) of schedule 17
the share issue expenses amounting to Rs. 6.00crores have been charged to share premium account.

2. Asset Liability Management:

a) Maturity pattern of certain items of assets and liabilities

Maturity Pattern of Assets and Liabilities as on 31032024 (Standalone) (Amount in ` crore)

More than Over 3 Over 6 Over 1 Over 3
31 days
8 to 14 15 to 30 2 months months months years years Over 5
Next Day 2 to 7 Days upto 2 TOTAL
Days Days upto 3 upto 6 upto 1 upto 3 upto 5 years
Months
months months years years years

Deposits 695.47 4410.92 2440.79 3279.68 2570.57 3226.61 7362.24 13354.56 48855.18 32402.10 16176.78 134774.89

Borrowings 0.00 0.00 0.00 0.00 0.00 1000.00 0.00 500.00 0.00 1385.00 0 2885.00

Investments 4508.15 2.19 9.75 9.79 759.28 1670.91 744.34 4035.17 5749.08 4622.30 12875.75 34986.71

Advances 509.79 1137.53 1248.47 1810.30 1185.02 1788.04 3784.51 6690.74 45433.26 16292.15 13882.71 93762.51

Foreign
Currency 26.24 169.04 7.00 158.56 0.00 175.19 104.10 154.00 20.85 0.00 0.00 814.98
Assets

Foreign
Currency 50.72 192.68 5.67 171.91 0.00 111.15 106.48 161.20 7.01 0.00 6.17 812.99
liabilities
Note* Classification of assets and liabilities under the maturity buckets is based on the same estimates and assumptions as used by the bank for compiling the Liquidity
report submitted to the RBI

Classification of assets and liabilities under the maturity buckets is based on the same estimates and assumptions as used by
the bank for compiling the Liquidity Report submitted to the RBI.

b) Liquidity Coverage Ratio (LCR)

Liquidity Coverage Ratio (LCR) guidelines were implemented by the Banks with an objective to maintain adequate level of
unencumbered High Quality Liquid Assets (HQLAs) that can be converted into cash to meet its liquidity needs for a time-
horizon up to 30 calendar days under a significantly severe liquidity stress scenario.

Stock of High-Quality Liquid Assets (HQLAs)

LCR =

Total Net Cash Outflows over the next 30 calendar days

HQLA comprise of liquid assets that can be readily encashed or used as collateral to obtain cash in a range of stress scenarios.
There are two categories of assets included in the stock of HQLAs, viz. Level 1 and Level 2 (Level 2A and Level 2B) assets.
While Level 1 assets are with 0% haircut, Level 2A and Level 2B assets are with 15% and 50% haircuts respectively. The Total
Net Cash Outflows are the total expected cash outflows minus total expected cash inflows for the subsequent 30 calendar
days.
Quarter March 2024 Quarter December 2023 Quarter September 2023 Quarter June 2023 Quarter March 2023

Total Total Total Total Total Total Total Total Total Total
Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
value value value value value value value value value value
( Average ) (Average ) (Average) (Average) (Average) (Average) (Average) (Average) (Average) (Average)

High Quality Liquid Assets

Total High Quality
1 29743.37 29724.46 29729.80 29710.44 28984.35 28967.23 29414.04 30055.91 30280.73 30259.92
Liquid Assets ( HQLA )
Cash Outflows
Retail deposits and
deposits from small
2 92434.94 6981.69 89832.29 6595.51 88376.11 6489.80 88154.61 6613.96 85082.06 6267.89
business customers,
of which
(i) Stable deposits 45235.86 2261.78 47698.84 2382.16 46956.28 2347.81 46848.67 2391.84 46278.27 2313.95

124
Schedule 18
"Notes on Standalone Accounts"
Quarter March 2024 Quarter December 2023 Quarter September 2023 Quarter June 2023 Quarter March 2023

Total Total Total Total Total Total Total Total Total Total
Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
value value value value value value value value value value
( Average ) (Average ) (Average) (Average) (Average) (Average) (Average) (Average) (Average) (Average)

(ii) Less stable deposits 47199.08 4719.91 42133.45 4213.35 41419.82 4141.98 41305.94 4222.12 38803.78 3953.95
Unsecured wholesale
3 21135.25 11447.50 18060.50 10124.2 19436.75 10621.40 20897.89 10183.47 19758.50 9495.77
funding ,of which
Operational Deposits
(i) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(all counterparties)
Non Operational
(ii) deposits ( all 21135.25 11447.50 18060.50 10124.42 19436.75 10621.40 20897.89 10183.47 19758.50 9495.77
counterparties)
(iii) Unsecured debt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Secured Wholesale
4 0 0 0.00 0.00 0.00 0.00 0.00 0.00 11.19 0.00
funding
Additional requirements
5 79.11 79.11 100.01 100.01 66.12 66.12 76.00 79.73 0.86 0.86
of which
Outflows related to
derivative exposure
(i) 79.11 79.11 100.01 100.01 66.12 66.12 76.00 79.73 0.86 0.86
and other collateral
requirements
outflows related to
(ii) loss of funding on debt 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
products
credit and liquidity
(iii) 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
facilities
Other contractual
6 7332.07 562.68 6879.07 517.31 9153.76 785.45 7379.02 678.13 6957.00 598.56
funding Obligations
Other contingent
7 5221.12 204.72 5230.64 205.00 5276.94 206.39 4527.55 175.18 3628.74 137.65
funding Obligations
8 Total cash outflows 126202.49 19275.70 120102.51 17542.25 122309.69 18169.16 121035.07 17730.47 115439.59 16501.99

Cash Inflows
secured Lending (e.g.
9 0.00 0.00 0.00 0.00 0.00 0.00 5346.43 0.00 0.00 0.00
reverse repo)
Inflows from fully
10 692.85 355.95 665.48 351.53 634.09 359.97 1662.75 867.88 2397.04 1227.17
performing exposure
11 Other cash inflows 190.19 95.09 455.33 227.67 126.50 63.94 675.75 346.75 655.49 326.66

12 Total cash inflows 883.04 451.04 1120.81 579.20 62.59 423.91 7684.94 1214.63 3052.52 1553.83

TOTAL HQLA 29743.37 29724.46 29729.80 29710.44 28984.35 28967.23 29414.04 30055.91 30280.73 30259.92

Total Net Cash Outflows 125319.45 18824.66 118981.0 16963.05 122247.10 17745.25 113350.14 16515.84 112387.07 14948.17
Liquidity Coverage
157.90% 175.15% 163.24% 181.98% 202.43%
ratio (%)

In accordance with RBI guidelines vide circular no. RBI/2014-15/529 DBR. No. BP.BC.80/21.06.201/2014-15 dated 31st March 2015, average weighted and unweighted amounts
have been calculated taking simple daily average. We have considered 48 data points for the quarter March 2024.

Bank’s LCR was at 157.90% based on daily average of past three months (Q4 FY23-24). The position remained above the minimum regulatory requirement of 100%. Average
HQLA held during the quarter was Rs 29743.37 Cr which were mostly in the form of level 1 assets. The weighted average total net cash outflows were to the tune of Rs
18824.66 Cr.
Liquidity Management in the Bank is driven by RBI guidelines and Bank’s ALM Policy. ALCO has been empowered by the Bank’s Board to formulate the funding strategies to
ensure that the funding sources are well diversified and is consistent with the operational requirements of the Bank. In addition to daily / monthly LCR reporting, Bank also
prepares daily Structural Liquidity Statement to assess the liquidity needs of the Bank on an ongoing basis.

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Schedule 18
"Notes on Standalone Accounts"
c) Net Stable Funding Ratio (NSFR)
Net Stable Funding Ratio (NSFR) guidelines ensure reduction in funding risk over a longer time horizon by requiring banks to
fund their activities with sufficiently stable sources of funding in order to mitigate the risk of future funding stress. The NSFR
is defined as the amount of Available Stable Funding relative to the amount of Required Stable Funding.

Bank’s NSFR comes to 169% as at the end of the quarter Q4 (FY 2023-24) and is above the minimum regulatory requirement
of 100%. The Available Stable Funding (ASF) as on 31.03.2024 stood at Rs. 136076.41 crores and amount for Required Stable
Funding (RSF) as on 31.03.2024 was Rs 80335 crores.
The Available Stable Funding (ASF) is primarily driven by the total regulatory Capital as per Basel III capital adequacy guidelines
stipulated by RBI and the deposits from retail customers, small business customers and non-financial corporate customers.
Under the Required Stable Funding (RSF).the primary drivers are unencumbered performing loans with residual maturities of
one year or more.
The following table contains the unweighted and weighted values of the NSFR components.
Statement of NSFR BLR 7

Name of the Bank Jammu & Kashmir Bank

Statement for the Quarter Ending Mar-24

S.No. Items Unweighted Weighted

Associated ASF
Amount Amount
factors
A. Components of ASF category (Liability Categories) (Rs. Crore) (Rs. Crore)

I Total regulatory capital (excluding Tier 2 instruments with residual maturity of less than one year) 1.00 14755.86 14755.86

II Other capital instruments with effective residual maturity of one year or more 1.00 0.00 0.00
III Other liabilities with effective residual maturity of one year or more 1.00 12191.36 12191.36
Stable non-maturity (demand) deposits and term deposits with residual maturity of less than one
IV 0.95 41337.38 39270.51
year provided by retail and small business customers

Less stable non-maturity deposits and term deposits with residual maturity of less than one year
V 0.90 73568.37 66211.54
provided by retail and small business customers
Funding with residual maturity of less than one year provided by non-financial corporate
VI 0.50 816.86 408.43
customers
VII Operational deposits 0.50 0.00 0.00

Funding with residual maturity of less than one year from sovereigns, PSEs, and multilateral and
VIII 0.50 6613.34 3306.67
national development banks

Other funding with residual maturity between six months and less than one year not included
IX 0.50 502.00 251.00
in the above categories, including funding provided by central banks and financial institutions

All other liabilities and equity not included in the above categories, including liabilities without
X 0.00 562.06 0.00
a stated maturity (with a specific treatment for deferred tax liabilities and minority interests)
NSFR derivative liabilities net of NSFR derivative assets if NSFR derivative liabilities are greater
XI 0.00 0.00 0.00
than NSFR derivative assets
XII “Trade date” payables arising from purchases of financial instruments, foreign currencies 0.00 0.00 0.00

B. Total Available Stable Funding 150347.24 136395.38

Un-weighted Weighted
Associated RSF
C. Components of RSF category Amount Amount
Factor
(Rs Crore) (Rs. Crore)
I Coins and banknotes 0.00 615.60 0.00
II Cash Reserve Ratio (CRR) including excess CRR 0.00 5034.92 0.00
III All claims on RBI with residual maturities of less than six months 0.00 800.00 0.00
“Trade date” receivables arising from sales of financial instruments, foreign currencies and
IV 0.00 0.00 0.00
commodities.
V Unencumbered Level 1 assets, excluding coins, banknotes, CRR and SLR Securities 0.05 0.00 0.00

126
Schedule 18
"Notes on Standalone Accounts"
Statement of NSFR BLR 7

Name of the Bank Jammu & Kashmir Bank

Statement for the Quarter Ending Mar-24

S.No. Items Unweighted

Associated ASF Weighted Amount
Amount
A. Components of ASF category (Liability Categories) factors (Rs. Crore)
(Rs. Crore)

VI Unencumbered SLR Securities 0.05 29816.11 1490.81

Unencumbered loans to financial institutions with residual maturities of less than six months,
where the loan is secured against Level 1 assets as defined in LCR circular dated June 9, 2014 and
VII 0.10 0.00 0.00
various amendments as indicated in the text of the circular, and where the bank has the ability to
freely rehypothecate the received collateral for the life of the loan

All other ‘standard’ unencumbered loans to financial institutions with residual maturities of less
VIII 0.15 799.56 119.93
than six months not included in the above categories

IX Unencumbered Level 2A assets 0.15 169.28 25.39

X Unencumbered Level 2B assets 0.50 1.60 0.80

XI HQLA encumbered for a period of six months or more and less than one year 0.50 0.00 0.00

‘Standard’ Loans to financial institutions and central banks with residual maturities between six
XII 0.50 0.00 0.00
months and less than one year

XIII Deposits held at other financial institutions for operational purposes 0.50 68.67 34.33

All other assets not included in the above categories with residual maturity of less than one
XIV year, including ‘standard’ loans to non-financial corporate clients, to retail and small business 0.50 44762.94 22381.47
customers, and ‘standard’ loans to sovereigns and PSEs
Unencumbered ‘standard’ residential mortgages with a residual maturity of one year or more and
XV 0.65 6828.73 4438.67
assigned the minimum risk weight under the Standardised Approach
Other unencumbered ‘standard’ loans not included in the above categories, excluding loans to
XVI financial institutions, with a residual maturity of one year or more and with a risk weight of less 0.65 10969.87 7130.42
than or equal to 35% under the Standardised Approach

Cash, securities or other assets posted as initial margin for derivative contracts and cash or other
XVII 0.85 133.68 113.62
assets provided to contribute to the default fund of a CCP

Other unencumbered performing loans with risk weights greater than 35% under the Standardised
XVIII 0.85 32836.16 27910.74
Approach and residual maturities of one year or more, excluding loans to financial institutions

Unencumbered securities that are not in default and do not qualify as HQLA with a remaining
XIX 0.85 546.21 464.28
maturity of one year or more and exchange-traded equities

XX Physical traded commodities, including gold 0.85 0.00 0.00

XXI All assets that are encumbered for a period of one year or more 1.00 0.00 0.00

NSFR derivative assets net of NSFR derivative liabilities if NSFR derivative assets are greater than
XXII 1.00 10.41 10.41
NSFR derivative liabilities

XXIII 5% of derivative liabilities 1.00 0.22 0.22

All other assets not included in the above categories, including non-performing loans, loans
to financial institutions with a residual maturity of one year or more, non-exchange-traded
XXIV 1.00 14386.96 14386.96
equities, fixed assets, items deducted from regulatory capital, retained interest, insurance assets,
subsidiary interests and defaulted securities

XXV All restructured ‘standard’ loans which attract higher risk weight and additional provision 1.00 591.63 591.63

D. Required Stable Funding – On Balance Sheet Assets [I to xxv] 148370.97 79098.90

E. Off-Balance Sheet Assets

127
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Standalone Accounts"
Statement of NSFR BLR 7

Name of the Bank Jammu & Kashmir Bank

Statement for the Quarter Ending Mar-24

S.No. Items Unweighted

Associated ASF Weighted Amount
Amount
A. Components of ASF category (Liability Categories) factors (Rs. Crore)
(Rs. Crore)

5% of the currently
I Irrevocable and conditionally revocable credit and liquidity facilities to any client 8937.19 446.86
undrawn portion

5% of the currently
II Other contingent funding obligations, including products and instruments (a) + (b) + (c) 5198.14 259.91
undrawn portion

5% of the currently
(a) Unconditionally revocable credit and liquidity facilities 5198.14 259.91
undrawn portion

3% of the currently
(b) Trade finance-related obligations (including guarantees and letters of credit) 0.00 0.00
undrawn portion

3% of the currently
( c) Guarantees and letters of credit unrelated to trade finance obligations 0.00 0.00
undrawn portion

III Non-contractual obligations (a) + (b) + (c) 0.00

potential requests for debt repurchases of the bank’s own debt or that of related conduits,
(a) 0.05 0.00 0.00
securities investment vehicles and other such financing facilities
structured products where customers anticipate ready marketability, such as adjustable rate
(b) 0.05 0.00 0.00
notes and variable rate demand notes (VRDNs)

( c) managed funds that are marketed with the objective of maintaining a stable value 0.05 0.00 0.00

F. Required Stable Funding – Off Balance Sheet Items (I)+(II)+(III) 605.88

G. Total Required Stable Funding (D+F) 7980566

H. NSFR (B / G) 171.03
As per the extant RBI Guidelines, the banks are required to make Pillar 3 disclosures including Leverage Ratio, Liquidity
Coverage Ratio and Net Stable funding ratio under the BASEL III Framework. Accordingly, these disclosures are being made
available on the Bank’s website i.e. www.jkbank.com. These disclosures have not been subjected to audit or review by the
Statutory Central Auditors of the Bank.

3. Investments (Treasury)
a) Composition of Investment Portfolio (Different for consolidated)
As at 31st March,2024 (Amount in crore)
Investments in India Investments outside India
Government
Subsidiar- Total In-
Particulars Other Total in- securities Subsidiaries Total
Government Debentures ies and/ vestments
Approved Shares Others vestments (including and/or joint Others Invest-
Securities and Bonds or joint outside
Securities in India local authori- ventures ments
ventures India
ties)
Held to Maturity

Gross 28811.5937 0.0000 0.0000 0.0000 257.9726 0.0000 29069.5663 NIL NIL NIL NIL NIL

Less: Provision for

non-performing 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 NIL NIL NIL NIL NIL
investments (NPI)

Net 28811.5937 0.0000 0.0000 0.0000 257.9726 0.0000 29069.5663 NIL NIL NIL NIL NIL

128
Schedule 18
"Notes on Standalone Accounts"
NIL NIL NIL NIL NIL
Available for Sale NIL NIL NIL NIL NIL

Gross 1108.9729 0.0000 555.1959 1141.8730 0.0000 4127.5777 6933.6195 NIL NIL NIL NIL NIL

Less: Provision for

0.0000 0.0000 455.3192 385.1987 0.0000 176.6113 1017.1292 NIL NIL NIL NIL NIL
depreciation and NPI

Net 1108.9729 0.0000 99.8767 756.6743 0.0000 3950.9664 5916.4903 NIL NIL NIL NIL NIL

NIL NIL NIL NIL NIL

Held for Trading NIL NIL NIL NIL NIL

Gross 0.0000 0.0000 0.6525 0.0000 0.0000 0.0000 0.6525 NIL NIL NIL NIL NIL

Less: Provision for

0.0000 0.0000 0.0104 0.0000 0.0000 0.0000 0.0104 NIL NIL NIL NIL NIL
depreciation and NPI

Net 0.0000 0.0000 0.6421 0.0000 0.0000 0.0000 0.6421 NIL NIL NIL NIL NIL

NIL NIL NIL NIL NIL

Total Investments 29920.5666 0.0000 555.8484 1141.8730 257.9726 4127.5777 36003.8383 NIL NIL NIL NIL NIL

Less: Provision for

non-performing 0.0000 0.0000 453.4902 384.4227 0.0000 48.2400 886.1529 NIL NIL NIL NIL NIL
investments

Less: Provision for

0.0000 0.0000 455.3192 385.1987 0.0000 176.6113 1017.1292 NIL NIL NIL NIL NIL
depreciation and NPI

Net 29920.5666 0.0000 100.5292 756.6743 257.9726 3950.9664 34986.7091 NIL NIL NIL NIL NIL

As at 31st March 2023 (Amount in ` crore)

Investments in India Investments outside India
Total investments
Subsidiariesand/or
Other Approved

Government Total
Debenturesand

joint ventures
Government

Particulars Subsidiaries Total

Securities
Securities

in India
Shares

securities Investments
Others

Others
Bonds

and/or joint Investments

(including local outside
ventures
authorities) India

Held to Maturity

Gross 26752.29 0 0 0 85.67 0 26837.96 0 0 0 0 0

Less: Provision for non-
0 0 0 0 36.92 0 36.92 0 0 0 0 0
performing investments (NPI)

Net 26752.29 0 0 0 48.75 0 26801.04 0 0 0 0 0

Available for Sale

Gross 2403.54 0 573.46 1013.96 0 4986.13 8977.09 0 0 0 0 0

Less: Provision for depreciation
0 0 472.78 299.42 0 177.95 950.15 0 0 0 0 0
and NPI
Net 2403.54 0 100.68 714.54 0 4808.18 8026.94 0 0 0 0 0
Held for Trading
Gross 0 0 1.20 0 0 0 1.20 0 0 0 0 0

129
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Standalone Accounts"
Less: Provision for depreciation and NPI 0 0 0.03 0 0 0 0.03 0 0 0 0 0
Net 0 0 1.17 0 0 0 1.17 0 0 0 0 0
Total Investments 29155.83 0 574.66 1013.96 85.67 4986.13 35816.25 0 0 0 0 0
Less: Provision for non-performing
0 0 467.05 294.98 0 48.24 810.27 0 0 0 0 0
investments
Less: Provision for depreciation and NPI 0 0 472.81 299.42 36.92 177.95 987.10 0 0 0 0 0
Net 29155.83 0 101.85 714.54 48.75 4808.18 34829.15 0 0 0 0 0

b) Movement of Provisions for Depreciation and Investment Fluctuation Reserve (Amount in ` crore)

Particulars Current Year Previous Year

i) Movement of provisions held towards depreciation on investments

a) Opening balance 176.83 84.12
b) Add: Provisions made during the year 4.67 97.63
c) Less: Write off / write back of excess provisions during the year 55.07 4.92
d) Closing balance 126.43 176.83
ii) Movement of Investment Fluctuation Reserve (IFR)
a) Opening balance
209.58 37.78
b) Add: Amount transferred during the year
0.00 171.80
c) Less: Drawdown
0.00 0.00
d) Closing balance
209.58 209.58
iii) Closing balance in IFR as a percentage of closing balance of investments in Available
for Sale (AFS) and Held for Trade (HFT)/Current category 3.54 2.61

c) Sale and Transfers to/from Held to Maturity (HTM) Category (Treasury )

The value of sale and transfer of securities to/from HTM Category (excluding permitted transfers) has not exceeded
5% of the book value of investments held in HTM category at the beginning of the year.

d) Non-SLR Investment Portfolio (Treasury )

i) Non-performing non-SLR investments
(Amount in ` crore)

S. No. Particulars Current Year Previous Year

a) Opening balance 870.39 722.07

b) Additions during the year since 1 April st
47.37 172.34
c) Reductions during the above period 14.00 24.02
d) Closing balance 903.76 870.39
Total provisions held (excluding floating provision of ` 2.76 Crores and` 29.57 crore of
e) 890.70 810.27
interest capitalized)

ii) Issuer composition of non-SLR investments (Different for consolidated)

(Amount in ` crore)
Extent of Below Extent of
Extent of Private Extent of unlisted
Sn. Issuer Amount Investment unrated
Placement Securities*
Grade securities* Securities*
1 2 3 4 5 6 7
Current Previous Current Previous Current Previous Current Previous Current Previous
Year Year Year Year Year Year Year Year Year Year

a) PSUs 119.32 69.31 119.32 69.31 - - -

b) Fis (incl. NBFC’s AIFI’S) 1447.28 1423.84 657.49 712.95 114.33.00 115.00 - -

c) Banks (incl. CD’s) 3211.96 4094.34 0.00 0.00 0.00 0.00 - -

d) Private Corporates (incl. CP’s) 893.51 824.89 318.34 279.93 216.47 177.44 23.03 23.03 23.03 23.03

e) Subsidiaries/Joint Ventures** 257.97 85.67 - - - - - -

130
Schedule 18
"Notes on Standalone Accounts"
Extent of Below Extent of
Extent of Private Extent of unlisted
Sn. Issuer Amount Investment unrated
Placement Securities*
Grade securities* Securities*
1 2 3 4 5 6 7
Current Previous Current Previous Current Previous Current Previous Current Previous
Year Year Year Year Year Year Year Year Year Year

f) Others 153.23 162.38 - - - - -

Less: Provision held towards depreciation/NPI/ Interest Capitalized
g) 1017.13 987.10 - - - - - -
***
Total *** 5066.14 5673.33 1090.15 1062.19 330.80 292.44 23.03 23.03 23.03 23.03

*Investments in Equity, Equity Oriented Mutual Funds, Venture Capital, Rated Assets Backed Securities, Central and State
Government Securities are not segregated under these categories as these are exempt from rating/listing guidelines.
**Investments in Subsidiaries/Joint Ventures have not been segregated into various categories as these are not covered
under relevant RBI Guidelines.
*** Excludes floating provision of `2.76 Crores

e) Repo transactions (in face value terms) (Amount in ` crore)

Daily average
Minimum Maximum
outstanding Outstanding as
outstanding outstanding
during the on March 31
during the year during the year
year
i) Securities sold under repo
a) Government securities 500.00 500.00 4.11 0.00
b) Corporate debt securities 0.00 0.00 0.00 0.00
c) Any other securities 0.00 0.00 0.00 0.00

ii) Securities purchased under reverse repo

a) Government securities 1200 1700.00 51.50 0.00
b) Corporate debt securities 0.00 0.00 0.00 0.00
c) Any other securities 0.00 0.00 0.00 0.00

f) Government Security Lending (GSL) transactions (in market value terms) Treasury
FY 2023-24
Daily Average
Minimum Maximum Outstanding
outstanding
Particulars outstanding outstanding as on 31st
during the
during the year during the year March,2024
year
a) Securities lent through GSL transactions 0.00 0.00 0.00 0.00

b) Securities borrowed through GSL transactions 0.00 0.00 0.00 0.00

c) Securities placed as collateral under GSL transactions 0.00 0.00 0.00 0.00
d) Securities received as collateral under GSL Transactions 0.00 0.00 0.00 0.00

FY 2022-23
Daily
Maximum
Minimum Average Outstanding
outstanding
Particulars outstanding outstanding as on 31st
during the
during the year during the March,2023
year
year
a) Securities lent through GSL transactions 0.00 0.00 0.00 0.00
b) Securities borrowed through GSL transactions 0.00 0.00 0.00 0.00
c) Securities placed as collateral under GSL transactions 0.00 0.00 0.00 0.00
d) Securities received as collateral under GSL Transactions 0.00 0.00 0.00 0.00

131
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Standalone Accounts"
g) Investments include `217.97crores in J&K Grameen Bank, Sponsored institution of the Bank. The Bank had made a
prudential provision of `36.92crores in financial year 2020-21 as net worth of J&K Grameen Bank had eroded due
to continuing loses and there was a permanent diminution in carrying cost of investment. However, to bring the
investment valuation inline with the provision of RBI Master Direction on classification, valuation and operation of
Investment Portfolio of Commercial Banks dated August 25, 2021 (updated as on December 8th 2022), the bank has
reversed the provision in the current year.
The Bank has made investments of Rs. 71.56 crore on 18.09.2023 in J&K Grameen Bank as application money for
which shares were allotted and taken in share account on 18.03.2024. The Bank had made additional investment of
Rs. 100.73 crores on 28.04.2022 in J&K Grameen Bank as application money for which shares were allotted and taken
in account on 09.06.2023.
h) Floating Provisions (Investments) Treasury
(Amount In Crores)
Previous
Particulars Current Year
Year
Opening balance 2.76 2.76
Additions made during the year 0.00 0.00
Utilization made during the year 0.00 0.00
Closing Balance 2.76 2.76

4. Asset Quality (BST )

Classification of advances and provisions held
FY 2023-24 (01.04.2023-31.03.2024) PREVIOUS YEAR (01.04.2022-31.03.2023)

Standard Non-Performing Total Standard Non-Performing Total

PARTICULARS
Total Total Non- Total Total Non-
Sub
Standard Sub standard Doubtful Loss Performing Standard Doubtful Loss Performing
standard
Advances Advances Advances Advances

Gross Standard Advances

and NPAs

Opening Balance 80951.21 787.82 3434.83 981.78 5204.43 86155.64 68721.92 879.77 4206.68 1434.08 6520.54 75242.46

Add: Additions during the

1111.62 7446.61
year

Less: Reductions during

2359.86 8762.72
the year*

Closing balance 93025.66 426.74 2750.82 778.64 3956.19 96981.86 80951.21 787.82 3434.83 981.78 5204.43 86155.64

*Reductions in Gross NPAs

882.45 1263.05 214.35 2359.86 6126.96 2065.89 569.86 8762.72
due to:
i) Upgradation 903.23 6448.58
ii) Recoveries (excluding
recoveries from upgraded 843.95 1276.98
accounts)
iii) Technical/ Prudential16
506.86 329.61
Write-offs
iv) Write-offs other than
22.60 475.81
those under (iii) above
e) Due to Compromise/
83.23 231.72
settlement
e) Interest Reversal 0.00 0.02
Provisions (excluding
Floating Provisions)
Opening balance of
424.78* 134.15 2642.06 981.78 3757.99 4304.07 482.85 142.40 3108.85 1434.08 4685.33 5168.18
provisions held

132
Schedule 18
"Notes on Standalone Accounts"
Add: Fresh provisions
-72.73 -12.52
made during the year
Less: Excess provision
528.90 914.82
reversed/ Write-off loans
Closing balance of
431.40 115.04 2262.68 778.64 3156.36 424.78* 134.15 2642.06 981.78 3757.99
provisions held
*Recasted
Net NPAs17
Opening Balance 641.93 692.31 0.00 1334.24 733.32 1016.78 0.00 1750.10
Add: Fresh additions
1184.35 7459.13
during the year
Less: Reductions during
1830.96 7847.90
the year
Closing Balance *** 311.33 425.52 0.00 736.84 641.93 692.31 0.00 1334.24

*** Closing Balance has been arrived after subtracting ICAP of Rs 3.52 Cr (Rs 43.79 as on 31.12.2023 and Rs 40.27 cr on 31.03.2024) and adding ECGC/
CGTMSE of Rs 1.92 cr (Rs 20.79 Cr as on 31.12.2023 and Rs 22.72 Cr as on 31.03.2024)
Floating Provisions
Opening Balance 124.48 13.11
Add: Additional provisions
0.00 111.37
made during the year
Less: Amount drawn down
0.00 0.00
during the year ****
Closing balance of floating
124.48 124.48
provisions
Technical write-offs and
the recoveries made
thereon
Opening balance of
Technical/ Prudential 4461.84 4596.59
written-off accounts
Add: Technical/ Prudential
506.86 329.61
write-offs during the year

Less: Recoveries made

from previously technical/
173.74 464.37
prudential written-off
accounts during the year

Closing balance 4794.96 4461.84

Ratios Current Year Previous Year

Gross NPA to Gross Advances 4.08% 6.04%
Net NPA to Net Advances 0.79% 1.62%
Provision coverage ratio 91.58% 86.20%

a) Sector-wise Advances and Gross NPAs ( (Amounts in ` crore)

Current Year Previous Year

Percentage Percentage
S.No. Sector Outstanding of Gross of Gross
Outstanding Total
Total Gross NPAs NPAs to Total Gross NPAs NPAs to Total
Advances
Advances Advances in Advances in
that Sector that Sector
i) Priority Sector
1 Agriculture & Allied Activities 9133.80 426.55 4.67 9183.74 672.39 7.32

Advances to Industries sector

2 3918.68 249.79 6.37 2769.80 265.26 9.58
eligible as priority sector lending

133
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Standalone Accounts"
2.a Manufacturing 3866.73 248.42 6.42 2723.03 263.01 9.66
3 Services 17346.96 668.81 3.86 9001.79 366.91 4.08
3.a Services 7485.44 263.92 3.53 3289.44 223.66 6.80
3.b Trade 9438.58 404.89 4.29 5412.31 143.25 2.65
4 Personal Loans 5673.58 44.98 0.79 5070.84 40.76 0.80
4.a Personal 5056.39 38.66 0.76 4618.74 34.16 0.74
4.b Micro-credit 617.19 6.32 1.02 452.10 6.60 1.46
Sub-Total (i) 36073.02 1390.13 3.85 26026.17 1345.32 5.17
ii) Non-Priority Sector  
1 Agriculture & Allied Activities 287.03 0.05 0.02 686.81 0.03 0.00
2 Industry 11460.98 656.47 5.73 11206.84 1162.25 10.37
2.a Manufacturing 3697.25 442.58 11.97 5097.37 721.64 14.16
2.b Infrastructure 7760.60 211.75 2.73 6095.06 437.27 7.17
3 Services 15661.45 1641.89 10.48 19925.56 2416.48 12.13
3.a Trade 2091.41 417.09 19.94 5362.31 764.74 14.26
3.b Financial Market 10867.30 625.24 5.75 8478.11 684.94 8.08
4 Personal loans 33499.38 267.66 0.80 28310.34 280.35 0.99
4.a personal 31952.92 267.00 0.84 27055.51 279.14 1.03
Sub-Total (ii) 60908.85 2566.07 4.21 60129.54 3859.11 6.42
Total (i + ii) 96981.86 3956.19 4.08 86155.72 5204.43 6.04

Sub sectors have been disclosed where the outstanding advances exceeds 10% of the outstanding total advances to that sector.

b) Restructuring of advances in terms of RBI Circular DBR.No.BP.BC.45/21.04.048/2018-19 dated 7th June 2019 (IAPM)
In terms of RBI Circular DBR No. BP. BC 45/21.04.048/2018-19 dated June 7, 2019 on Prudential Framework for
Resolution of Stressed Assets, Bank has not made additional provisions for the quarter ended March 31 2024 as the
existing provisions are adequate to take care of the NPAs as detailed below (Total provision as on March 31, 2024 is
Rs. 27.24 Crores):
Provisions held as Provision held as
Amount of loans to Amount of loans Additional
Amount of loans on 31.03.2023 on 31.03.2024
be classified as NPA as on 31.03.2024 provision made
impacted by RBI Circular
out of (b) during the year
classified as NPA ended 31.03.2024
(a)
(b) (c) (e)
(d) (f)
27.24 27.24 27.24 27.24 0.00 27.24

c) Divergence in asset classification and provisioning: (BST )

No disclosure on divergence in asset classification and provisioning for NPAs is required with respect to RBI’s
supervisory process for the year ended March 31, 2023, based on the conditions mentioned in RBI circular No. DBR.
BP.BC.No.31/21.04.018/2018-19 dated 1st April, 2019.
d) Disclosure of transfer of loan accounts (SMAs & NPAs) in terms of RBI Circular No.DOR.STR.REC.51/21.04.048/2021-
22 dated 24th September 2021, the details of loans transferred/acquired (Loan not in default) during the year Period
01-04-2023 to 31-03-2024: (Credit Monitoring & IAPM)
i) NPA accounts transferred during the period 01.04.2023 to 31.03.2024:
The details of the Non-Performing Assets transferred during the period 01.04.2023 to 31.03.2024 are given below:
(Amounts in ` crore)
Current Year Previous Year
S To
Particulars To To permitted To other To other
No To ARCs permitted
ARCs transferees transferees transferees
transferees
a. No of accounts Nil Nil Nil 3 Nil 1
Aggregate principal outstanding
b. NA NA NA 562.76 NA 188.11
of loans transferred
Weighted average residual tenor
c. NA NA NA 2.68 NA 0
of the loans transferred (Years)
Net book value of loans
d. transferred (at the time of NA NA NA 142.84 NA 0
transfer)

134
Schedule 18
"Notes on Standalone Accounts"
Aggregate consideration (` in
e. NA NA NA 305.12 NA 94.33
crore)
Additional consideration
f. realized in respect of accounts NA NA NA 1.23 NA 0
transferred in earlier years

No Excess Provision on sale of NPAs to Securitization Company (SC)/reconstruction Company (RC) has been accounted for in
the Profit & Loss Account during the current financial year.
ii. The Bank has not acquired any stressed loan or NPA during the year.
iii. The Bank has not transferred any Special Mention Account (SMA) and loan not in default.
iv. Bank has not acquired any “Loan not in default” through assignment of loans.
v. Bank has not acquired any stressed loans and not transferred any loan not in default/Special Mention Account (SMA).
vi. Bank has not invested in Security Receipts (SR) issued by Asset Reconstruction Companies (ARC) in respect of stressed loans
transferred to ARCs.
vii. Distribution of the Security Receipts (SRs) held across the various categories of Recovery Ratings assigned to such SRs by the credit
rating agencies as on March 31, 2024: (Treasury ) (In ` Crore)
Recovery Rating Band Book Value as on 31.03.2024 Book Value as on 31.03.2023
RR1+ 13.39 13.39
RR1 80.18 0.00
RR3 0.00 0.00
RR4 38.27 64.26
NA* 21.40 4.55
Rating not assigned** 0.00 80.18
Total 153.24 162.38

*100% provisions made against the SRs

**SRs received in Q4 of FY 2022-23, as per ARC rating shall be assigned within 180 days

f) Fraud accounts (Vigilance) (` in crore)
Particulars Current year Previous Year
Number of frauds reported 35 20
Amount involved in fraud (`Crore) 241.76 380.04
Amount of provision made for such frauds 237.72 375.32
Amount of Unamortised provision debited from ‘other reserves’ as at the end of the year) Nil Nil
*During the FY 2023-24, the total number of fresh fraud cases declared/reported is 32 and reclassified 3 fraud cases with aggregate
total amount involved being `241.76 crores out of which an amount of `4.04 Crores being recovered.

g) Resolution Framework for COVID-19 related stress (Credit Monitoring )

Details of resolution plan implemented under the Resolution Framework for COVID 19 related stress as per RBI Circular
dated August 06, 2020 (Resolution Framework 1.0) and May 05, 2021 (Resolution Framework 2.0) as at March 31,
2024 are given below: (Credit Monitoring ) (` in Crores)
Exposure to
accounts classified
Exposure to accounts
as Standard
Of (A) amount classified as Standard
consequent to Of (A), aggregate
Of (A) amount paid by the consequent to
implementation of debt that slipped
Type of borrower written off during borrowers implementation of
resolution plan – into NPA during
the half-year during the half- resolution plan – Position
Position as at the the half-year
year as at the end of this half-
end of the previous
year
half-year
(A)
Personal Loans 56.94 2.72 0.00 6.55 47.67
Corporate persons* 339.26 18.84 0.00 56.50 263.92
Of which MSMEs 51.69 9.01 0.00 8.20 34.48
Others 174.51 8.76 0.00 20.00 145.76
Total 570.71 30.31 0.00 83.05 457.35
* As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016

135
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Standalone Accounts"
5. Exposures
a) Exposure to real estate sector (CCB)
Previous
S.No Particulars Current Year
Year
Direct Exposure
(i) Residential Mortgages
Lending fully secured by mortgages on residential property that is or will be occupied by
14169.49 11650.95
the borrower or that is rented;
Of which individual housing loans eligible for inclusion in priority sector advances 4579.99 4541.64
(ii) Commercial Real Estate 1792.79 2177.29

1. Lendings secured by mortgages on commercial real estates (office buildings, retail space,
multi-purpose commercial premises, multi-family residential buildings, multi-tenanted
0 0
commercial premises, industrial or warehouse space, hotels, land acquisition, development
and construction, etc.). Exposure would also include non-fund based (NFB) limits.

(iii) Investment in Mortgage-Backed Securities (MBS) and other securitized exposures: 0 0

(a) Residential 0 0
(b) Commercial real estate 0 0
2. Indirect Exposure
Fund based and non-fund-based exposures on National housing Bank and Housing Finance
3468.69 3025.03
Corporation
Total Exposure to Real Estate Sector 19430.97 16853.27

b) Exposure to capital market (Credit Monitoring )

(Amount in Crores of Rs.)
Particulars
Current Year Previous Year
i) Direct investment in equity shares, convertible bonds, convertible debentures and units of equity
75.50 74.42
oriented mutual funds the corpus of which is not exclusively invested in corporate debt;
ii) Advances against shares / bonds / debentures or other securities or on clean basis to individuals for
investment in shares (including IPOs / ESOPs), convertible bonds, convertible debentures, and units 0.00 0.00
of equity oriented mutual funds;
iii) Advances for any other purposes where shares or convertible bonds or convertible debentures or
0.05 0.04
units of equity oriented mutual funds are taken as primary security;
iv) Advances for any other purposes to the extent secured by the collateral security of shares or
convertible bonds or convertible debentures or units of equity oriented mutual funds i.e. where the
0.00 0.00
primary security other than shares / convertible bonds / convertible debentures / units of equity
oriented mutual funds does not fully cover the advances;
v) Secured and unsecured advances to stockbrokers and guarantees issued on behalf of stockbrokers
15.00 15.00
and market makers;
vi) Loans sanctioned to corporates against the security of shares / bonds / debentures or other securities
or on clean basis for meeting promoter’s contribution to the equity of new companies in anticipation 0.00 0.00
of raising resources;
vii) Bridge loans to companies against expected equity flows / issues; 0.00 0.00
viii) Underwriting commitments taken up by the banks in respect of primary issue of shares or convertible
0.00 0.00
bonds or convertible debentures or units of equity oriented mutual funds;
ix) Financing to stockbrokers for margin trading; 0.00 0.00
x) All exposures to Venture Capital Funds (both registered and unregistered) 0.00 0.02
Total exposure to capital market 90.55 89.48

c) Risk category-wise country exposure (FOREX ) (Amount ` in Crores)

Exposure Provisions Exposure Provisions
Risk Category (net) as at held as at (net) as at held as at
Mar-24 Mar-23 Mar-23 Mar-22
Insignificant 615.32 0.00 118.98 0.00
Low 76.12 0.00 18.03 0.00
Moderately Low 4.98 0.00 1.98 0.00
Moderate 0.00 0.00 0.00 0.00
Moderately High 1.53 0.00 0.10 0.00
High 2.03 0.00 0.00 0.00
Very high 0.00 0.00 0.00 0.00
Total 699.97 0.00 139.09 0.00

136
Schedule 18
"Notes on Standalone Accounts"
d) Unsecured Advances (CCB) (Amounts in ` crore)
Particulars Current year Previous Year

Total unsecured advances of the bank 28546.68 25310.11

Out of the above, amount of advances for which intangible securities such as charge over the
Nil Nil
rights, licenses, authority, etc. have been taken
Estimated value of such intangible securities NA NA

e) Factoring exposures (FOREX)

The Banks factoring exposure as at 31.03.2024 Nil is (Previous Year - Nil)
f) Intra-group exposures (Amounts in ` crore)
Previous
Particulars Current Year
Year
Total Amount of intra-group Exposure 15.00 15.00

Total Amount of top-20 intra group exposures 15.00 15.00

Percentage of intra –group exposures to total exposures of the bank on borrowers/customers 0.01% 0.01%

Details of breach of limit on intra-group exposures and regulatory action thereon, if any NIL NIL

g) Unhedged foreign currency exposure ( BST )

In accordance with RBI circular no DBOD .BP.BC.85/21.06.200/2013-14 dated 15th January, 2014 and circular no
DBOD.BP.BC.116/21.06.200/2013-14 dated 3rd June 2014, banks are required to make an additional provision in
respect of borrowers with Un-hedged Foreign Currency Exposures (UFCE) from April 1, 2014 onwards. Accordingly,
our bank has made the necessary provisions.
(Amounts in ` crore)
Provision Held
Current Year Previous Year
Particulars
31.03.2024 31.03.2023
Opening balance 3.76 2.70
Additions during the Year 6.14 1.16
Deductions during the Year 5.35 0.10
Closing balance 4.54 3.76

The incremental capital held by the Bank towards the foreign currency exposure amounts to ` 0.12 crores (previous
year ` 1.13 crores)

6. Concentration of deposits, advances, exposures and NPAs

a) Concentration of Deposits ( DL (Amounts in ` crore)
Particulars Current Year Previous Year

Total Deposits of 20 largest depositors 13164.34 10984.00

Percentage of 20 largest deposits to total Deposits of the Bank 9.77% 9.00%

b) Concentration of Advances (Amounts in ` crore)

Particulars Current Year Previous Year
Total Advances to the twenty largest borrowers 17692.73 11819.29
Percentage of advances to twenty largest borrowers to total advances of the bank 13.79% 13.28%

c) Concentration of Exposures (Amounts in ` crore)

Particulars Current Year Previous Year

Total exposure to the twenty largest borrowers/customers 16071.68 12440.52

Percentage of exposures to the twenty largest borrowers /customers to the total exposure
15.19% 11.89%
of the bank on borrowers/customers

137
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Standalone Accounts"
d) Concentration of NPAs ) (Amounts in ` crore)
Particulars Current Year Previous Year
Total Exposure to the top twenty NPA accounts 1811.70 2400.18

Percentage of Exposure to the twenty largest NPA exposure to total Gross NPAs. 45.79% 46.12%

7. Derivatives ( TREASURY )
a) Forward rate agreement/Interest rate swap (Amounts in ` crore)
Particulars Current Year Previous Year
i) The notional principal of swap agreements 0.00 0.00
ii) Losses which would be incurred if counterparties failed to fulfil their obligations 0.00 0.00
under the agreements
0.00 0.00
iii) Collateral required by the bank upon entering into swaps
iv) Concentration of credit risk arising from the swaps 0.00 0.00
v) The fair value of the swap book 0.00 0.00

b) Exchange traded interest rate derivatives (Amounts in ` crore)

Sr.
Current Year Previous Year
No. Particulars
Notional principal amount of exchange traded interest rate derivatives undertaken
i) 0.00 0.00
during the year (instrument wise)
Notional principal amount of exchange traded interest rate derivatives outstanding as
ii) 0.00 0.00
on 31st March (instrument wise)
Notional principal amount of exchange traded interest rate derivatives outstanding
iii) 0.00 0.00
and not ‘highly effective’ (instrument wise)
Mark to market value of exchange traded interest rate derivatives outstanding and not
iv) 0.00 0.00
‘highly effective’ (instrument wise)

c) Disclosures on risk exposures in derivatives

i) Qualitative disclosures
The only derivatives traded by the Bank in the foreign exchange market are forward contracts. Forward
contracts are being used to hedge /cover the exposure in foreign exchange arising out of Merchant
transactions and trading positions.
To cover the risks arising out of above derivatives, various limits like AGL, IGL and stop loss have been
prescribed in the trading policy of the bank which are monitored through VaR.
Outstanding forward exchange contracts held for trading are revalued at the exchange rates for appropriate
maturity rates as announced by FEDAI at the year-end exchange rates and the resultant gain/ loss is taken
to revenue.
ii) Quantitative Disclosures (Amounts in ` crore)
Sr.
Particulars Current Year Previous Year
No
Currency Interest Rate Currency Interest Rate
Derivatives Derivatives Derivatives Derivatives
Derivatives (Notional Principal Amount)
(i) a) For Hedging NIL NIL NIL NIL
b) For Trading NIL NIL NIL NIL
Marked to Market Position
(ii) a) Asset (+) NIL NIL NIL NIL
b) Liability (-) NIL NIL NIL NIL
(iii) Credit Exposure (2) NIL NIL NIL NIL
Likely Impact of 1% change in interest rate (100*PV01)
(iv) a) On hedging derivatives NIL NIL NIL NIL
b) On Trading derivatives NIL NIL NIL NIL
Maximum & minimum of 100*PV01 observed during the year
(v) a) On hedging NIL NIL NIL NIL
b) On Trading NIL NIL NIL NIL

138
Schedule 18
"Notes on Standalone Accounts"
d) Credit default swaps
Bank did not enter in any credit default swap.

8. Disclosures relating to securitisation ( IAPM

Mar 31
S.no Particulars Mar 31 (Current Year)
(Previous Year)
1. No of SPEs holding assets for securitisation transactions originated by the originator Nil Nil

2. Total amount of securitised assets as per books of the SPEs Nil Nil

Total amount of exposures retained by the originator to comply with MRR as on

3. Nil Nil
the date of balance sheet
a) Off-balance sheet exposures
• First loss Nil Nil
• Others
b) On-balance sheet exposures
• First loss Nil Nil
• Others

4. Amount of exposures to securitisation transactions other than MRR Nil Nil

a) Off-balance sheet exposures

i) Exposure to own securitisations
• First loss
• Others Nil Nil
ii) Exposure to third party securitisations
• First loss
• Others
b) On-balance sheet exposures
i) Exposure to own securitisations
• First loss
• Others Nil Nil
ii) Exposure to third party securitisations
• First loss
• Others
Sale consideration received for the securitized assets and gain/loss on sale on
5. Nil Nil
account of securitization

Form and quantum (outstanding value) of services provided by way of, liquidity
6. Nil Nil
support, post-securitisation asset servicing, etc.
Performance of facility provided. Please provide separately for each facility viz. Credit
enhancement, liquidity support, servicing agent etc. Mention percent in bracket as of
total value of facility provided.
7. Nil Nil
(a) Amount paid
(b) Repayment received
(c) Outstanding amount
Average default rate of portfolios observed in the past. Please provide breakup
8. Nil Nil
separately for each asset class i.e. RMBS, Vehicle Loans etc

Amount and number of additional/top up loan given on same underlying asset. Please
9. provide breakup separately for each asset Nil Nil
class i.e. RMBS, Vehicle Loans, etc.

Investor complaints
10. (a) Directly/Indirectly received and; Nil Nil
(b) Complaints outstanding

9. Off balance sheet SPVs sponsored

The bank has not floated any off balance Sheet SPV.

139
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Standalone Accounts"
10. Transfers to Depositor Education and Awareness Fund (DEA Fund) ( BRANCH (Amounts in ` crore)
Particulars Current Year Previous Year
Opening balance of amounts transferred to DEA Fund 273.93 244.30

Add: Amounts transferred to DEA Fund during the year 34.98 34.28

Less: Amounts reimbursed by DEA Fund towards claims 28.77 4.65

Closing balance of amounts transferred to DEA Fund 280.14 273.93

The Closing balance of amounts transferred to DEA Fund as disclosed above are also included under schedule 12 – Contingent Liabilities –
other items for which the bank is contingently liable.

11. Disclosure of complaints ( Customer

Summary information on complaints received by the bank from customers and from the Offices of Ombudsman
Sr. Previous year Current year
Particulars
No (FY 2022-23) (FY 2023-24)
Complaints received by the bank from its customers
1. Number of complaints pending at beginning of the year 1116 2324
2. Number of complaints received during the year 52608 54686
Number of complaints disposed during the year 51400 55465
3.
3.1 Of which, number of complaints rejected by the bank 582 8273
4. Number of complaints pending at the end of the year 2324 1545
Maintainable complaints received by the bank from OBOs
Number of maintainable complaints received by the bank from OBOs 530 616
5.1. Of 5, number of complaints resolved in favour of the bank by BOs 514 589
5.
Of 5, number of complaints resolved through conciliation / mediation / advisories issued by
5.2 10 29
BOs
5.3 Of 5, number of complaints resolved after passing of Awards by BOs against the bank 0 0
6. Number of Awards unimplemented within the stipulated time (other than those appealed) 0 0

Note :
1. Maintainable complaints refer to complaints on the grounds specifically mentioned in BO Scheme 2006 and covered within the ambit
of the Scheme.
2. Till the Financial Year 2022-23, the Bank was disclosing only the non-digital complaints in the summary information. For the current
year, the number of complaints pending at the beginning of the year, received and disposed during the year and pending at the end of
the year include digital and non-digital complaints. The figures for the previous year have been regrouped accordingly.
Note:
• Number of BO complaints pending at the beginning of FY2022-23 ------ 9
• Number of BO complaints pending at the end of FY2022-23 ------- 15
• Number of BO complaints pending at the end of FY2023-24 ------- 13
a) Top five grounds of complaints received by the bank from customers
% increase /
Number of decrease in Number of Of 5, number
Number of
complaints the number complaints of complaints
complaints
Grounds of complaints, (i.e. complaints relating to) pending at the of complaints pending at pending
received during
beginning of received over the end of beyond 30
the year
the year the previous the year days
year
1 2 3 4 5 6
Current Year
Ground – 1
2291 51332 0.2 1221 0
(Internet/Mobile/Electronic Banking)
Ground – 2
8 1401 129 135 0
(Loans and Advances)
Ground – 3
1 172 161 30 0
(ATM/Debit Cards)
Ground – 4
1 157 59 12 0
(Credit Cards)
Ground - 5
1 151 26 21 0
(Account opening/difficulty in operation of accounts)

140
Schedule 18
"Notes on Standalone Accounts"
a) Top five grounds of complaints received by the bank from customers
Other Grounds
• Staff Misbehaviour
• Deficiency of services
• Insurance
• Leakage of Account Info 22 1473 110 126 1
• Non-Linkage of Aadhaar
• Unauthorised Debits
• Pension and facilities for senior citizens/differently abled
• Others
Total Complaints 2324 54686 3 1545 1
Previous Year
Ground – 1
1105 50982 48 2291 0
(Internet/Mobile/Electronic Banking)
Ground – 2
2 612 353 8 1
(Loans and Advances)
Ground - 3
2 120 2900 1 0
(Account opening/difficulty in operation of accounts)
Ground – 4
0 99 27 1 0
(Credit Cards)
Ground – 5
1 95 313 5 0
(Staff Behavior)
Other Grounds
• ATM/Debit Cards
• Deficiency of services
• Insurance
• Leakage of Account Info 6 700 57 18 0
• Non-Linkage of Aadhaar
• Unauthorised Debits
• Pension and facilities for senior citizens/differently abled
• Others
Total Complaints 1116 52608 50 2324 1

12. Disclosure of penalties imposed by the Reserve Bank of India ( Compliance )

During the year ended March 31, 2024, Reserve Bank of India (RBI) in exercise of the powers vested under the provisions of
Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949 has levied following monetary
penalties on the Bank:
Cumulative Amount
S No. Nature of Penalty Number of Instances
(In ` lacs)
1.** Penalty imposed by RBI on Currency Chests 39 2.14*
2.*** Penalty imposed by RBI on ATM Cash Outs 10 1.00*
3. Penalty imposed on non-compliances with RBI directions 1 250.00
4. Penalty imposed on branch office(s) 1 0.20
Total 51 253.34
*This amount has been recovered from the concerned employees.
**` 0.50 Lacs (one instance) out of penalty at S. No. 1 &
***` 0.50 Lacs (five instances) out of penalty at S. No. 2 have been waived-off and reversed by RBI.

141
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Standalone Accounts"
13. Disclosures on remuneration (Board / HRD)

Type of Information
disclosure
Qualitative a) Information relating Bank has constituted the Nomination and Remuneration Committee of the Board pursuant to the requirement of the Reserve Bank of
to the composition India and the Companies Act, 2013, which constituted of following members of the Board as on 31.03.2024.
and mandate of Mr. Anand Kumar (Chairman N&RC)
the Remuneration Dr. Rajeev Lochan Bishnoi
Committee. Mr. Naba Kishore Sahoo
( Ms. Shahla Ayoub

b) Information relating to The major objective of Banks’ Compensation Policy are:

the design and structure
of remuneration • To ensure effective governance of compensation.
processes and the key i. Actively oversee the compensation systems design and operation.
features and objectives of ii. Monitor and review the compensation system to ensure the system operates as intended.
remuneration policy. iii. Employees engaged in financial system and control must be independent, have necessary authority and must be compensated in a
manner that is Independent of the business areas they oversee and commensurate with their key role in the Bank.
• To ensure effective alignment of compensation with prudent risk taking:
i. Compensation must be adjusted for all types of risks.
ii. Compensation outcome must be symmetric with risk outcomes.
iii. Compensation pay out schedules must be sensitive to the time horizon of risks.
iv. The proportion of cash, equity and other forms of compensation must be consistent with risk alignment.
• To comply with the regulatory directives whereby all private sector banks are required to formulate and adopt a comprehensive
Compensation Policy covering all their employees and conduct annual review thereof.
• To attract, develop and retain high-performing and motivated employees
The Compensation Policy of the Bank is in line with the regulatory guidelines, however as per Board directions, the policy shall be
considered for implementation once the Bank reaches a cost to income ratio of 50% or below, in-line with the peer banks. The Bank
being a member bank of Indian Banks’ Association (IBA), as such the compensation structure of the Banks’ employees is currently
guided by the IBA stipulated pay structure. However, in the case of Contractual Senior Employees viz. MD & CEO, ED and the CFO, the
compensation structure (for the FY 2023-24) is aligned as per the compensation policy.

c) Description of the ways The Compensation Policy of the Bank is in line with the regulatory guidelines, however as per Board directions, the policy shall be
in which current and considered for implementation once the Bank reaches a cost to income ratio of 50% or below, in-line with the peer banks. The Bank
future risks are taken being a member bank of Indian Banks’ Association (IBA), as such the compensation structure of the Banks’ employees is currently
into account in the guided by the IBA stipulated pay structure, without any performance linked variable components. However, in the case of Contractual
remuneration processes. Senior Employees viz. MD & CEO, ED and the CFO, the compensation structure (for the FY 2023-24) is aligned as per the compensation
It should include the policy, wherein performance linked Variable pay is included within the remuneration.
nature and type of the As per the Compensation Policy, various types of risks are to be taken into account by the Bank in its remuneration process. A wide
key measures used to variety of measures of credit, market, liquidity and various other risks shall be used by the bank in implementation of risk adjustment
take account of these which shall involve both quantitative and judgmental elements.
risks. In order to manage current and future risks, the compensation policy stipulates variable pay as a component of the compensation
structure of Whole Time Directors, Material Risk Takers (MRTs) and Control function staff. The variable portion of the compensation
comprises of cash and non-cash (share linked instruments) components which is deferred over a period of 3 years so that the
compensation is adjusted for all types of risks that the Bank may be exposed to.
The compensation policy also stipulates ‘malus’ and ‘clawback’ options to take into account specific crystallised risk, adverse
performance outcomes including those related to misconduct and deterioration in financial performance of the Bank.
d) Description of the ways As per the compensation policy, the variable component of remuneration (wherever applicable) is assessed by the Bank based on
in which the bank seeks the individual performance in relation to KRAs for a reference performance year. KRAs take into consideration both the quantitative
to link performance (financial aspects) and qualitative (nonfinancial aspects) parameters. The quantum of Variable Pay is a function of the Bank’s and the
during a performance individual’s performance with due adjustment for risks involved.
measurement period with
levels of remuneration.

e) A discussion of the As per the bank’s compensation policy, deferral and vesting of variable remuneration shall apply to the MD & CEO /Whole Time
bank’s policy on deferral Directors (WTDs), Material Risk Takers (MRTs) and control Function staff.
and vesting of variable The Material Risk Takers (MRTs) and Control Function Staff designated by the Bank within the policy include the following:
remuneration and a a) Material Risk Takers (MRTs)
discussion of the bank’s The following officials have been identified as MRTs based on the RBI stipulated qualitative and quantitative criteria for identification
policy and criteria for of MRTs.
adjusting deferred General Managers within the following domains.
remuneration before 1. Consumer & Commercial Banking (CCB)/Corporate Banking (including Divisional Heads in business line function)
vesting and after vesting. 2. Central Banking Operations (CBO)
3. Govt. Banking & Treasury Ops.
4. Strategy & IT
5. BSD, Insurance
6. Human Resources
7. IAPM
8. Law
b) Control Function Staff
The following officials have been identified as the Control Function Staff:
1. Chief Compliance Officer (CCO)/GCO
2. Head of Internal Audit (HIA)
3. Chief Risk Officer (CRO)
4. CIV/CVO
5. Company Secretary
6. Finance/CFO
In line with the RBI guidelines, the Bank’s compensation policy stipulates the following principles for Deferral / vesting of variable
remuneration for WTDs/CEO, MRTs:
• At least 50% of Total Pay, should be variable.
• The variable pay can be in the form of share-linked instruments or a mix of cash and share-linked instruments. There should be
proper balance between the cash and share-linked components in the variable pay. Only in cases where the compensation by way of
share-linked instruments is not permitted by law/regulations, the entire variable pay can be in cash.
• A minimum of 50% of the Total Variable Pay shall be paid via non-cash instruments.
• The compensation policy stipulates that the total variable pay of the MD & CEO to be limited to a maximum of 100% of the fixed
pay (as against the maximum permissible regulatory ceiling of 300% of the fixed pay), to be allocated equally (50%) between the
cash component and non-cash component. The said ceiling being the minimum would apply to the MRTs and Control Function staff
as well.

142
Schedule 18
"Notes on Standalone Accounts"
Cash Component:
(a) Upfront payment shall be 50% of cash component of Variable Pay
(b) Deferred payment shall be 50% of cash component of Variable Pay
• Non-cash Components (share-linked instruments):
(a) ESOP/ESOS: The monetary value, of grant of share-linked instruments shall not exceed 50% of Variable Pay
• Period of Deferral Arrangement:
The deferral period shall be a minimum of three years. This would be applicable to both the cash and non-cash components of the
variable pay. However, in cases where the cash component of variable pay is under INR 25 lakhs, deferral requirements for cash
component will not apply.
Members of staff engaged in financial and risk control, including internal audit, should be compensated in a manner that is
independent of the business areas they oversee and commensurate with their key role in the bank. The mix of fixed and variable
compensation for control function personnel should be weighted in favour of fixed compensation, as such the requirement of
minimum 50% of total compensation to be paid in the form of variable pay will not be applicable for this category of staff. However, a
reasonable proportion of compensation has to be in the form of variable pay, so that exercising the options of malus and/or clawback,
when warranted, is not rendered infructuous.
The Compensation policy stipulates Malus and Clawback clauses for adjusting deferred remuneration before & after vesting (applicable
for WTDs, CEO, MRTs and Control function Staff):
Malus: Payment of all or part of amount of deferred variable pay can be prevented
Clawback: Previously paid or already vested deferred variable pay can also be recovered under this clause.

FRAMEWORK TO INVOKE MALUS / CLAWBACK CLAUSES:

The variable pay shall be subject to ex-post risk adjustment measures to take into account specific crystallised risk or adverse
performance outcome including those relating to misconduct. It shall include reduction of current year awards (in-year adjustment), the
application of malus (reducing or cancelling deferred pay that have not yet vested), and clawback (recouping already vested awards).
The ‘malus’ and ‘clawback’ clause will be invoked when the employee demonstrates fraudulent behavior, moral turpitude, lack of
integrity, flagrant breach of company policies and statutory norms resulting in financial or non-financial losses.
Malus and clawback will be applied basis informed judgment of NRC for following
conduct/risk related circumstances:
a. Any act which exposes the bank to substantial risk.
b. Non-disclosure of material conflict of interest by the employee or any misuse of official powers.
c. Any misconduct pertaining to moral turpitude, theft, misappropriation, corruption, forgery, embezzlement or an act of a
felonious or criminal nature.
d. Fraud, breach of trust, dishonesty, or wrongful disclosure by the employee of any confidential information pertaining to the
bank or any of its affiliates.
e. Wilful misinterpretation / misreporting of financial performance of the bank.
f. Material failure in risk management controls or material losses due to negligent risk-taking which are attributable to the
employee, whether directly or indirectly.
g. An act of wilful, reckless or grossly negligent conduct which is detrimental to the interest or reputation of the bank or any of its
affiliates, monetarily or otherwise.
h. Material breach of:
• Code of Conduct
• Any Non-Disclosure Agreement
• Regulatory procedures
• Internal rules and regulations or any other such instance for which the NRC, in its discretion, deems it necessary to apply malus or
/ and clawback provisions.
i. Violation of guidelines for Anti Hedging and guidelines for Prevention of Insider Trading.
The occurrence of any/some/all of the above conditions/events shall trigger a review by the Nomination and Remuneration Committee
for the application of the Malus or the Clawback arrangement.
Malus may be applied to the following additional circumstances:
i. In the event of deterioration in financial performance in form of drop in Profit After Tax (PAT) from one financial year to the next
by 30% or more, the NRC shall evaluate and decide if Malus needs to be applied on none, part or all of the unvested deferred
variable compensation. For the evaluation, the NRC may take into consideration conditions leading to the deterioration in financial
performance, including changes in regulations, industry performance and others.
ii. In the event when there is a deterioration of more than 5% in the operating profit and/or net Non-Performing Asset (NPA)/to net
Advances exceeds 0.75%, and deterioration in any other specific performance criteria that may be laid down by the Nomination and
Remuneration Committee (NRC). The NRC will review the performance taking into consideration the macroeconomic environment
as well as the internal performance indicators and accordingly decide whether any part of the deferred tranche belonging to a
financial year merits a withdrawal.
iii. In the event where the assessed divergence in Bank’s provisioning for Non-Performing Assets (NPAs) or asset classification
exceeds the prescribed threshold for public disclosure, the Bank shall not pay the unvested portion of the variable compensation
for the assessment year under ‘Malus’ clause. Such a scenario can also lead to the invoking of the ‘Clawback’ clause. Further, in
such situations, no proposal for increase in variable pay (for the assessment year) shall be entertained. In case the Bank’s post
assessment Gross NPAs are less than 2.0%, these restrictions will apply only if criteria for public disclosure are triggered either on
account of divergence in provisioning or both provisioning and asset classification.

Final decision to invoke malus and/or clawback shall be approved by NRC. In deciding the application of malus / clawback to any part
or all of variable pay or incentives (whether paid, vested or unvested), the NRC will follow due process and adhere to the principles of
natural justice and proportionality. Further, in assessing the quantum of cancellation / withdrawal, the NRC will take into consideration
all relevant factors, including inter alia, internal factors such as role and responsibilities of the employee, culpability and proximity to
the misconduct as well as any external factors that may have been beyond the control of the concerned employee.
Prior to yearly pay out of the deferred components of Total Variable Pay, NRC shall review the release of the pay-out. In the event
where the clawback clause is invoked, the employee will agree to return the previously received Total Variable Pay back to the Bank,
taking into account relevant regulatory/ statutory stipulations. In case the vested stock options have already been exercised, the
employee shall return fair value of options at the time of grant, using Black-Scholes model

143
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

f) Description of the The compensation policy of the Bank stipulates the following components of performance linked variable pay:
different forms of • Cash component
variable remuneration • Non-cash component (share linked instruments). This shall be granted to employees, in the form of Employee Stock
(i.e. cash, shares, ESOPs Options (ESOPs). The Bank shall have in place an Employee Stock Option Scheme (ESOS), formulated in accordance with the SEBI-
and other forms) that SBEBSE (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
the bank utilizes and the ESOS shall have an inbuilt deferral design; grant immediately following the reference performance year with no immediate vesting,
rationale for using these 30% vesting after end of first year following the reference performance year, next 30% vesting after end of second year & balance
different forms. 40% vesting after the end of third year, which is intended to spread and manage risk.
• Employee stock options shall be fair valued on the date of grant by the Bank using
Black-Scholes model.

Particulars Current Year Previous Year

Quantitative g) Number of meetings held by the Nomination and The Committee met ten times during The Committee met ten times during the year
Disclosures Remuneration Committee during the financial year the year and total sitting fee of ` and total sitting fee of `15,60,000.00* was paid
and remuneration paid to its members. 12,00,000.00* was paid to the Members to the Members of the Committee.
(The quantitative of the Committee. (*It is pertinent to mention that in addition to the
disclosures should (*It is pertinent to mention that in addition above fee, GST @ 18% has been paid, out of which
only cover Whole to the above fee, GST @ 18% has been paid, 9% has been claimed as input credit
Time Directors/Chief out of which 9% has been claimed as input
Executive Officer/ credit
Material Risk Takers)
i) Number of employees having received a variable NIL NIL
remuneration award during the financial year.

h) ii) Number and total amount of sign-on awards made

NIL NIL
during the financial year.

i) Details of guaranteed bonus, if any, paid as join-

NIL NIL
ing / sign on bonus

ii) Details of severance pay, in addition to accrued

benefits, if any. NIL NIL

i) Total amount of outstanding deferred remuneration, *Cash (Deferred): ` 0.12 Cr

split into cash, shares and share-linked *Non-Cash/ ESOP (Deferred): ` 0.35 Cr Deferred Cash: ` 0.18 Cr
i) instruments and other forms. *pertains to the assessment of variable Deferred Non-Cash (ESOP): ` 0.46
pay for the reference performance year
(FY 2021-22 & 2022-23).

ii) Total amount of deferred remuneration paid out in

NIL NIL
the financial year.

j) Breakdown of amount of remuneration awards for the Total Fixed Salary: ` 4.86 Cr
Total Fixed Salary: ` 4.22 Cr
financial year to show fixed and variable, deferred and Total Variable Pay : Nil*
Total Variable Pay : ` 1.03 Cr
non-deferred.
Deferred variable pay: ` 0.64 Cr
*Variable Pay assessment for MD & CEO/
Non-deferred variable Pay: ` 0.39 Cr
WTD/MRT for FY 2023-24 is pending.

i) Total amount of outstanding deferred remuneration

NIL NIL
and retained remuneration exposed to ex post
explicit and/or implicit adjustments.
k)
ii) Total amount of reductions during the financial year NIL NIL
due to ex post explicit adjustments.

iii) Total amount of reductions during the financial NIL NIL

year due to ex post implicit adjustments.

l) Number of MRTs identified 10* 11*

*Identified as per the Compensation *Identified as per the Compensation Policy of
Policy of the Bank the Bank

(i) Number of cases where malus has been exercised NIL

Nil
m)
(ii) Number of cases where clawback has been NIL
Nil
exercised

(iii) Number of cases where both malus and clawback NIL

Nil
have been exercised.

General Quantitative (n) The mean pay for the Bank as a whole (excluding sub-
Disclosure staff) and the deviation of the pay of each of its WTDs • Mean pay for the Bank as a whole for all employees (excluding sub-staff) who were in
from the mean pay. employment for FY2023-24 was ` 14.44 lacs
Ratio of pay of WTD to the mean pay for the bank as a whole (for FY 2023-24): 9.53X
• Mean pay for the Bank as a whole for all employees (excluding sub-staff) who were in
employment for FY2022-23 was ` 11.08 lacs
Ratio of pay of WTD to the mean pay for the bank as a whole (for FY 2022-23): 6.07X

144
Schedule 18
"Notes on Standalone Accounts"
Details of Remuneration paid to Non - Executive Directors during FY 2023-24
Profit related
Name Sitting Fee Compensation Total
(FY 2022-23)

Dr. Rajeev Lochan Bishnoi 2160000 1000000 3160000

Mr. Naba Kishore Sahoo 2280000 1000000 3280000

Dr. Mohmad Ishaq Wani 0 400000 400000

Mr. R K Chhibber 2160000 1000000 3160000

Mr. Umesh Chandra Pandey 2120000 1000000 3120000

Mr. Anil Kumar Goel 2080000 1000000 3080000

Mrs. Sushmita Chadha 0 493151 493151
Mr. Anand Kumar 2400000 1000000 3400000
Total 13200000 6893151 20093151

14. Other Disclosures

a) Business ratios (BST)
Particulars Current Year Previous Year
Interest Income as a percentage to Working Funds 7.76% 6.92%
Non-Interest Income as a percentage to Working Funds 0.57% 0.56%
Cost of Deposits 4.57% 3.79%
Net Interest Margin 3.92% 3.89%
Operating Profit as a percentage to Working Funds 1.58% 1.37%
Return on Assets 1.22% 0.89%

Business (deposits plus advances) per employee(in ` crore) 17.81 15.57

Profit per employee (in ` crore) 0.14 0.09

* Working funds and Assets are the average of monthly total assets as reported to RBI in Form X.
** Net Interest Margin is the Net Interest Income divided by average Earning Assets. Net Interest Income is the
difference between the Interest Income and the Interest Expenses
*** Deposits (other than inter-bank deposits) & Gross Advances are as at the close of the year.
b) Bancassurance business ( Insurance )
Fees/brokerage earned in respect of the insurance broking, agency and bancassurance business
(Amounts in ` crore)
Current Year Previous Year
Name of the Company
FY2023-24 FY2022-23
PNB MetLife 55.69 47.36
Life Insurance Corporation of India 1.67 0
Bajaj Allianz Life Insurance Company Limited 22.17 0
Bajaj Allianz General Insurance Company Limited 22.73 20
IFFCO TOKIO General Insurance Company 3.51 3.33
Total 105.77 70.69
c) Marketing and distribution
The details of fees / remuneration received in respect of the marketing and distribution function (excluding
bancassurance business) are as under: (Amounts in ` crore)
S.No Nature of income Current Year Previous Year
1 Commission from JKBFSL on opening DEMAT Accounts 0.16 0.03
2 Commission from JKBFSL on mobilizing Mutual Funds 0.12 0.07
3 Service Charges from PMFBY 0.42 0.13
Total 0.70 0.23

145
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Standalone Accounts"

d) Disclosures regarding Priority Sector Lending Certificates (PSLCs) ( Credit Mon

iThe Bank has purchased the following PSLCs during the year: (Amount in ` crore)
Current Year Previous Year
Category
(Currency Face Value) (Currency Face Value)
PSLC Small and Marginal Farmers 1708.00 50.00
Total 1708.00 50.00

The Bank has sold the following PSLCs during the year: (in ` crore)
Current Year Previous Year
Category
(Currency Face Value) (Currency Face Value)
PSLC Small and Marginal Farmers 0.00 0.00

Total 0.00 0.00

e) Provisions and contingencies (Amount in ` crore)

STANDALONE DETAILS OF PROVISIONS YEAR ENDED 31.03.2024 YEAR ENDED 31.03.2023
1 Provision for Taxes ( A+B ) 617.30 586.98
A. Income Tax 588.79 530.55
B. Deferred Tax 28.51 56.43
2 Provision for Bad & Doubtful Debts (73.61) (12.51)
3 Provision for Standard Assets (114.68) 63.23
4 Provision for Non Performing Investment 75.88 83.46
Provision for diminution in the fair value of restructured/rescheduled
5 0.00 (28.24)
advances
6 Provision for Contingent Liabilities 0.10 (2.33)
7 Provision for Contingencies - (27.74)
8 Provision for Frauds/ Embezzlements (other than Advances) 4.62 (1.74)
Total :- 509.61 661.11

f) Implementation of IFRS converged Indian Accounting Standards (Ind AS) RBI vide Circular DBR.BP.BC.
No.29/21.07.001/2018-19 dated March 22, 2019 deferred implementation of Ind AS till further notice. However,
RBI requires all banks to submit Proforma Ind AS financial statements every half year.
The bank hired a consultant for implementation of Ind AS in the Financial Year 2023-2024 and consultant has
started the process of parallel conversion to IND AS. The base year for Ind As conversion is Financial Year 2023-
2024 with transition date as at April 1, 2023.
It is pertinent to mention that the Bank had previously availed the services of a consultant for implementation
of Ind AS but the contract was terminated due to non-performance by the previous Consultant.
g) Payment of DICGC Insurance Premium ( BRANCHES ) (Amount in ` crore)
S.no Particulars Current Year Previous Year
i) Payment of DICGC Insurance Premium 143.24 140.81

ii) Arrears in payment of DICGC premium Nil Nil

h) Disclosure on amortisation of expenditure on account of enhancement in family pension of employees of banks

Bank has estimated the additional liability on account of revision in family pension for employees as per IBA Joint
Note dated November 11, 2020, amounting to `72.50 Crores. However, RBI vide their Circular RB1/2021-22/105
DOR.ACC.REC.57/21.04.018/2021-22 dated 4th October 2021, has permitted Banks to amortize the said additional
liability over a period of not exceeding 5 (five) years, beginning with financial year ending 31st March 2022,
subject to a minimum of 1/5th of the total amount being expensed every year. Bank has opted the said provision
of RBI, charged an amount of `3.625 crores and` 14.50 crores to the Profit & Loss account for the quarter & Year
ended 31st March 2024 respectively and the balance unamortized expense of `29.00 Crores has been carried
forward. Had the bank charged the entire additional liability to the Profit and loss account, the consequential net
profit for the year ended march 31, 2024 would have been ` 1738.27crores (this will change1742.22crore )
i) Disclosure of Letters of Comfort (LoCs) issued by banks ( CCB / Forex)

146
Schedule 18
"Notes on Standalone Accounts"
The Bank has not issued any letter of comfort on behalf of the customers or on its behalf in respect of trade
credits during the FY 2023-24.
j) Portfolio-level information on the use of funds raised from green deposits ( DLM )
(Amount in ` crore)
Particulars Current Financial Year Previous Financial Year Cumulative*
Use of green deposit funds**
(1) Renewable Energy
(2) Energy Efficiency
(3)Clean Transportation
(4)Climate Change Adaptation
(5)Sustainable Water and Waste Management
(6) Pollution Prevention and Control
(7) Green Buildings No such scheme is available for the reference period. However,
(8) Sustainable Management of Living Natural Resources and Land Use the Bank is in process to roll out the Green Deposit scheme.
(9) Terrestrial and Aquatic Biodiversity Conservation
Total Green Deposit funds allocated (B = Sum of 1 to 9)
Amount of Green Deposit funds not allocated (C = A – B)
Details of the temporary allocation of green deposit proceeds pending
their allocation to the eligible green activities/projects

* This shall contain the cumulative amount since the RE started offering green deposits. For example, if a bank has commenced raising green
deposits from June 1, 2023, then the annual financial statement for the period ending March 31, 2025, would contain particulars of deposits
raised and allocated from June 1, 2023, till March 31, 2025. Further, the actual amount of green deposits raised during the year and use of
such funds shall be given under this disclosure.
**Under each category, REs may provide sub-categories based on the funds allocated to each sub-sector. For example, REs may provide
sub-categories like solar energy, wind energy, etc. under “Renewable Energy”.

15. Disclosure Requirements as per the Accounting Standards

a) Accounting Standard 5: Net Profit or Loss for the period, Prior Period Items, and Changes in Accounting Policies
• During the year, there were no material prior period income/expenditure items.
There are following changes in the Significant Accounting Policies adopted during the Financial Year 2023-24
as compared to those followed in the previous Financial Year 2022-2023:
(i) To be more prudent the Bank has made additional provision of Rs. 135.67crore on its secured portion at
the rate of 10% on its non-performing assets held in sub-standard, D-1, & D-2 Category over and above the
prescribed norms.
(ii) Due to change in accounting policy, para D(12) of schedule 17 the share issue expenses amounting to
`6.00crores have been charged to share premium account.
b) Accounting Standard – 15 “Employee Benefits” HRD
The bank has recognized in its books of accounts the liability arising out of employee benefits as the sum of the
present value of obligation as reduced by fair value of plan assets on the balance sheet date, as under:
I - Principal Actuarial Assumptions as the Balance Sheet date:
Actuarial Assumptions PENSION GRATUITY LEAVE ENCASHMENT
Year Current Year Previous Year Current Year Previous Year Current Year Previous Year
Discount Rate 7.20% 7.45% 7.20% 7.45% 7.20% 7.45%
Expected Return on Plan Assets 7.20% 7.45% 7.20% 7.0% NA NA
Rate of Escalation in salary 5.50% 5.50% 5.50% 5.50% 5.50% 5.50%
Attrition Rate 1% 1% 1% 1% 1% 1%

II - Changes in Present value of the obligation (PVO)-Reconciliation of Opening & Closing Balance
(Amount ` in Crore)
Particulars PENSION GRATUITY LEAVE ENCASHMENT
Present value of Obligation 01.04.2023 2646.48 1120.08 501.41
Interest Cost 185.09 81.30 36.18
Current Service Cost 74.54 70.12 29.61
Benefits paid (324.03) (57.48) (31.44)
Actuarial (loss)/ gain on obligations (Balancing figure) 858.58 (307.64) (24.84)
Present Value of Obligations, 31.03.2024 3440.66 906.38 510.92

147
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Standalone Accounts"
III -Changes in the Fair Value of the Plan Assets-Reconciliation of Opening & Closing Balances: (Amount ` in Crore)
LEAVE
Particulars PENSION GRATUITY
ENCASHMENT
Fair Value of Plan Assets 01.04.2023 2560.00 1119.92 0.00
Expected return on Plan assets 109.18 81.30 0.00
Contributions by Bank 1001.69 0.16 40.95
Benefits paid (324.03) (57.48) (31.44)
Actuarial (loss)/ gain on Plan Assets (Balancing figure) 93.70 5.56 0.00
Fair Value of Plan Assets, 31.03.2024 3440.55 1149.46 0.00

IV - Actual return on Plan Assets (Amount ` in Crore)

LEAVE
Particulars PENSION GRATUITY
ENCASHMENT
Expected return on Plan Assets 109.18 81.30 0.00
Actuarial (loss)/ gain on Plan Assets 93.71 5.56 0.00
Actual Return on Plan Assets 202.89 86.86 0.00

V- Net Actuarial Gain/ (loss) recognized (Amount ` in Crore)

LEAVE
Particulars PENSION GRATUITY
ENCASHMENT
Actuarial (Gain)/loss for the period – Obligation 858.57 (307.64) (24.84)
Actuarial (Gain)/ loss for the period – Plan Assets (93.71) (5.56) 0.00
Total (Gain)/Loss for the period 764.86 (313.20) (24.84)
Actuarial (Gain ) or loss recognized in the period 764.86 (313.20) (24.84)
Unrecognized Actuarial gain/ (loss) at the end of the year 0.00 0.00 0.00

VI - Amount recognized in Balance Sheet & Related Analysis (Amount ` in Crore)

LEAVE
Particulars PENSION GRATUITY
ENCASHMENT
Present value obligation, 31.03.2024 3440.67 906.39 510.93
Fair Value of Plan Assets, 31.03.2024 (3440.55) (1149.46) 0.00
Difference 0.12 (243.07) 510.93
Unrecognized Transitional Liability 0.00 0.00 0.00
Unrecognized Past Service cost-vested benefits-Carried Forward 0.00 0.00 0.00
Liability Recognized in the Balance Sheet 0.12 *(243.07) 510.93
Negative amount determined under Paragraph 55 of AS-15(R) - - -
Present value of available refunds and reductions in future contributions - - -
Resulting asset as per Paragraph 59 (b) of AS-15 (R) - *243.07 -

VII-Expense recognized in Profit and Loss Statement (Amount ` in Crore)

LEAVE
Particulars PENSION GRATUITY
ENCASHMENT
Current Service Cost 74.55 70.12 29.61
Interest Cost 185.09 81.31 36.18
Expected return on Plan assets (109.18) (81.30) 0.00
Net Actuarial (Gain)/loss recognized in the year 764.87 (313.20) (24.84)
Past Service Cost-Recognized 0.00 0.00 0.00
Expenses recognized in the statement of profit and loss 915.33 (243.07) 40.95

During the year while considering the defined benefit obligation for the gratuity fund, the actuarial came across that Special Grade
Allowance was being considered in earlier years as part of service cost. Consequent to this, there is surplus in Plan Assets amounting to
`243.07 crores, representing excess of fair value of Plan Assets over Present Value Obligation. Correspondingly, an amount of `243.07
crores has been credited to ‘payment to and provision for employees’ during the year. Figures of previous year are not comparable to that
extent.

148
Schedule 18
"Notes on Standalone Accounts"

VIII-Movement in Net liability to be recognized in Balance Sheet (Amount ` in Crore)

LEAVE
Particulars PENSION GRATUITY
ENCASHMENT
Opening Net Liability 86.48 0.16 501.41
Expenses 915.33 (243.07) 40.95
Contributions/ Benefits paid (1001.69) (0.16) (31.44)
Closing Net Liability /(Asset)
0.12 (243.07) 510.93
(Liability recognized in B/S in current period)

IX - Amount for the Current Period (Amount ` in Crore)

LEAVE
Particulars PENSION GRATUITY
ENCASHMENT
Defined Benefit Obligation 3440.67 906.39 510.93
Plan Assets 3440.55 1149.46 0.00
Surplus/(Deficit) (0.12) 243.07 510.93
Experience adjustments on plan liabilities 494.69 (328.51) (36.69)
Actuarial loss/(gain) due to change in financial assumptions 363.88 20.87 11.85
Experience adjustments on plan assets (93.71) (5.56) 0.00
Net actuarial loss/ (gain) for the year 764.86 (313.20) (24.84)

X - Major Categories of Plan Assets (as percentage of Total Plan Assets)

Particulars PENSION (%) GRATUITY (%)

Government of India Securities 1% 6.04%

State Government Securities 0 41.86%
High Quality Corporate Bonds 0 39.80%
Equity Shares of listed companies 0 2.89%
Funds managed by Insurer 99% 0.74%
Other- Bank Deposits and CD’s 0 8.67%
Treasury Bills 0 0
Total 100 100.00

XI - Best Estimate of contribution during next year (Amount ` in Crore)

PENSION GRATUITY
Particulars
(Funded) (Funded)

Bank’s best estimate of Contribution during next year 700.00 150.00

Particular Basis of assumption:

Discount rate: Discount rate has been determined by reference to market yields on the balance sheet date on Government
Bonds of term consistent with estimated term of the obligations as per para 78 of AS-15(R).
Expected rate of return on plan assets: The expected return on plan assets is based on market expectations, at the beginning
of the period, for returns over the entire life of the related obligation.
Rate of escalation in salary: The estimates of future salary increases considered in actuarial valuations taking into account
inflation, seniority, promotion and other relevant factors mentioned in paras 83-91 of AS-15R.
Attrition rate: Attrition rate has been determined by reference to past and expected future experience and includes all types
of withdrawals other than death but including those due to disability.
During the year while considering the defined benefit obligation for the gratuity fund, the actuarial came across that special
grade allowance is being considered in earlier years as part of service cost .Consequent to this, there is surplus in plan assets
amounting to `243.07 crores, representing excess of fair value of plan assets over present value obligation. Corresponding
amount of `243.07 Crores has been credited to payment to and provisions of employees during the year. Figures of previous
year are not comparable to that extent.

149
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Standalone Accounts"
The Jammu and Kashmir Bank Employees Pension Fund Trust transfers future liability of pension payments to pensioners and
family pensioners by way of purchasing annuities from annuity service providers currently
LIC of India. Annuity is purchased on return of purchase price i.e. upon death of the pensioner purchase price is being credited
back to J K Bank employees’ pension fund Trust. Since the stream of present pension payments has already been transferred
to LIC of India thus actuarial valuation of pensioners and family pensioners has not been carried out.
*The above information is based on the information certified by the actuary except para XI above.

c) Accounting Standard – 17 “Segment Reporting” (Different in consolidated) ( BST )

i) The Bank has recognized business segment as its primary reportable segment under AS-17 classified into treasury,
Corporate/ Wholesale banking, Retail banking and other banking Business. The necessary disclosure is given below:
(`in Crore)
YEAR ENDED
STANDALONE SEGMENT REPORTING FOR THE QUARTER / YEAR ENDED 31ST (` in Crore)
MARCH, 2024
31.03.2024 31.03.2023
PARTICULARS (AUDITED) (AUDITED)
1) Segment Revenue (income)
i) Treasury Operations 2719.30 2406.11
ii) Corporate/Wholesale Banking 2477.36 1847.26
iii) Retail Banking 7931.88 7016.52
(a) Digital Banking 0.08 0.02
(b) Other Retail Banking 7931.80 7016.50
iv) Other Banking Business 106.77 73.93
v) Un-Allocated Business 0.00 0.00
Total 13235.31 11343.82
Less: Inter Segment Revenue 1197.46 1231.90
Net Income from Operations 12037.85 10111.92
2) Segment Results
i) Treasury Operations 139.69 102.59
ii) Corporate/Wholesale Banking 1394.06 748.27
iii) Retail Banking 2062.31 2337.73
(a) Digital Banking (0.77) (0.38)
(b) Other Retail Banking 2063.08 2338.11
iv) Other Banking Business 105.34 72.51
v) Un-Allocated Business (1316.83) (1476.74)
Profit/(Loss) from Ordinary Activities (Before Tax) 2384.57 1784.36
Less: Tax Expenses/(credit) 617.30 586.98
Less: Extraordinary Profit/(Loss) 0.00 0.00
Net Profit/(Loss) After Tax 1767.27 1197.38
3) Segment Assets
i) Treasury Operations 46444.45 43516.46
ii) Corporate/Wholesale Banking 29973.41 26183.85
iii) Retail Banking 78107.55 76258.85
(a) Digital Banking 0.47 0.60
(b) Other Retail Banking 78107.08 76258.25
iv) Other Banking Business 1.18 3.10
v) Un-Allocated Business 0.00 0.00
Total:- 154526.59 145962.26
4) Segment Liabilities

150
Schedule 18
"Notes on Standalone Accounts"
YEAR ENDED
STANDALONE SEGMENT REPORTING FOR THE QUARTER / YEAR ENDED 31ST (` in Crore)
MARCH, 2024
31.03.2024 31.03.2023
PARTICULARS (AUDITED) (AUDITED)
i) Treasury Operations 405.35 145.18
ii) Corporate/Wholesale Banking 38309.90 35468.54
iii) Retail Banking 103573.19 100402.85
(a) Digital Banking 1.35 0.22
(b) Other Retail Banking 103571.84 100402.63
iv) Other Banking Business 2.47 2.45
v) Un-Allocated Business 0.00 0.00
Total:- 142290.91 136019.02
5) Capital Employed
(Segment assets-Segment Liabilities)
i) Treasury Operations 46039.10 43371.28
ii) Corporate/Wholesale Banking (8336.49) (9284.69)
iii) Retail Banking (25465.64) (24144.00)
(a) Digital Banking (0.88) 0.38
(b) Other Retail Banking (25464.76) (24144.38)
iv) Other Banking Business (1.29) 0.65
v) Un-Allocated Business 0.00 0.00
Total :- 12235.68 9943.24

ii) As the Bank does not have any overseas branch there is no requirement as to reporting of Geographical Segment.
d) Accounting Standard – 18 “Related Party Disclosures” (BST )
1. Related Parties (Amount `in Crore)
J&K Grameen JKB Financial
Items/Related Party Bank Services Ltd. Jammu & Kashmir Asset Reconstruction Limited
(Associate) (Subsidiary)
Balance as on date 1731.94 11.66
Deposits Maximum Balance
1731.94 23.91
during the year

Balance as on date 11.67* 5.91

Advances
Maximum Balance
48.67 14.33
during the year

Balance as on date 206.31 40.00

Investments The Jammu & Kashmir Asset Reconstruction Limited was incorporated jointly by
Maximum Balance
206.31 40.00 Government of J&K and Jammu & Kashmir Bank Ltd on 28.04.2017. The Bank
during the year
has subscribed capital to the tune of ` 98 lakhs whereas Government of J&K has
Interest Paid 99.22 0.75 subscribed `102 lakh. In the meantime the promoters have decided to windup the
Interest/Commission Received 0.21 0.47 company and the Bank in turn has approached the Registrar of Companies (ROC) for
removal of the name of the company from the register of companies under Section
Sale of Fixed Assets NIL 0.00 248 of the Companies Act, 2013. The application of the Bank is under consideration
Reimbursement on behalf of with ROC.
NIL 0.41
Associate/Subsidiary
Deputation Staff Salary 0.00 0.48

Transfer of Current Assets/

NIL 0.00
Liabilities(Net)

IT Support Services 1.03 0.00

Outstanding with Associate/
NIL 0.12
Subsidiary
Advances is shown as borrowings from the sponsor bank in shape of SOD, LAD and Perpetual Bonds.
*Rs.11.67 crore is 50 % share of Sponsor Bank for implementation of CBS by JKGB in the form of Investment in Tier II perpetual bonds.

151
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Standalone Accounts"

2. Salary to Key Managerial Person (KMP) (Amount in Lakhs)

Mr. Mohammad
Mr. Sudhir Gupta Mr. Pratik D
Mr. Baldev Prakash Shafi Mir
(Executive Punjabi
(MD & CEO)* (Company
Director) (CFO)
Secretary)
From 01.04.2023 to From 01.04.2023 From 01.04.2023 From 01.04.2023
Period for which post held during FY 2023-24
31.03.2024 to 31.03.2024 to 31.03.2024 to 31.03.2024

Salary 97.52 40.21 31.05 28.25

Note: Transactions in the nature of Banker-Customer relationship have not been disclosed including those with Key
Management Personnel and relatives of Key Management Personnel, in terms of paragraph 5 of AS 18.
e) Accounting Standard – 19 “Leases” ( Estate )
The properties taken on lease/rental basis are renewable / cancellable at the option of the Bank.
The lease entered into by the Bank are for agreed period with an option to terminate the leases even during the
currency of lease period by giving agreed calendar months’ notice in writing.
Lease rent paid for operating leases are recognized as an expense in the Profit & Loss account in the year to which it
relates. The lease rent recognized during the year is ` 83.51 crores (previous year being `83.57 crores)
f) Accounting Standard – 20 “Earnings per Share” (Different in Consolidated) ( BST )
The Bank reports basic and diluted earnings per equity share in accordance with Accounting Standard 20 – “Earnings
per Share”. Basic Earnings per Share is computed by dividing net profit after tax by the weighted average number of
equity shares outstanding during the year.
Particulars Standalone Current Year Previous Year

Number of Equity Shares outstanding at the beginning of the year 1031479861 932886594

Number of Equity Shares issued during the year 69702602 98593267

Number of Equity Shares outstanding at the end of the year 1101182463 1031479861
Weighted average number of equity shares used in computing basic earnings per share 1052047842 963589450

Weighted average number of equity shares used in computing diluted earnings per share 1052047842 963589450
Net profit / (loss) (` in crore) 1767.27 1197.38

Basic earnings per share (`) 16.80 12.43

Diluted earnings per share (`) 16.80 12.43

g) Accounting Standard – 21 “Consolidated Financial Statements” BST

The Bank has a fully owned subsidiary company “JKB Financial Services Ltd.”. The investment towards the capital
of subsidiary company is ` 40.00 Crores (Previous Year ` 40.00 Crores). The consolidated financial statements are
placed accordingly in terms of AS 21.
h) Accounting Standard – 22 “Accounting for Taxes on Income” Standalone (Different in consolidated) ( BST )
ii) Current Tax:
During the year, the Bank has debited to Profit & Loss Account ` 588.79 crore (Previous Year ` 530.55 crore)
on account of current tax. The current tax has been calculated in accordance with the provisions of Income Tax
Act, 1961.
The Bank has exercised the option of lower tax permitted under Section 115BAA of the Income-tax Act, 1961 as
introduced by the Taxation Laws (Amendment) Act, 2019 from the financial year 2019-20 onwards.
iii) Deferred Tax: BST
During the year, ` 28.51 crore has been debited to Profit & Loss Account (Previous Year debit ` 56.43 crore) on
account of deferred tax.
The major components of DTA and DTL are given below (Amount ` in Crore)
Current Year Previous Year

Deferred Deferred Tax Deferred Deferred Tax

Timing Difference
Tax Asset Liabilities Tax Asset Liabilities

Depreciation on Assets 0.00 6.27 0.00 18.88

Leave Encashment/Gratuity/Pension/Bonus 128.59 0.00 126.20 0.00

152
Schedule 18
"Notes on Standalone Accounts"
Current Year Previous Year

Deferred Deferred Tax Deferred Deferred Tax

Timing Difference
Tax Asset Liabilities Tax Asset Liabilities

Special Reserve 0.00 37.16 0.00 31.00

Wage Revision 0.00 0.00 30.53 0.00

Bad & Doubtful Assets 69.96 0.00 76.00 0.00

Total 198.55 43.43 232.73 49.88

iv) During the year, Bank has transferred ` 24.50crores to Special Reserve created u/s 36 (1) (viii) of Income Tax Act,
1961, and consequential effect in Deferred Tax Liability amounts to `6.17crores has been created on this amount.
i) Accounting Standard – 23 “Accounting for Investments in Associates in CFS” BST
The Bank has a sponsored Bank “J&K Grameen Bank”. The investment towards the capital of associate concern is`
217.97crores (Previous Year ` 34.01crores).
The consolidated financial statements are placed accordingly in terms of AS 23.
Accounting Standard – 28 “Impairment of Assets” Estate
Majority of fixed assets of the bank are considered as corporate assets and not cash generating assets and in
the opinion of the management, there is no material impairment in the fixed assets regarding other fixed assets
generating cash there is no material impairment. As such no provision is required as per AS-28.
j) Accounting Standard – 29 “Provisions, Contingent Liabilities and Contingent Assets” BST
i) Description of Contingent Liabilities BST
Sr.
Particulars Brief Description
No.

The Bank is a party to various proceedings in the normal course of business.

The Bank does not expect the outcome of these proceedings to have a material
Claims against the Bank not acknowledged as
1 adverse effect on the Bank’s financial conditions, result of operations or cash
debts
flows. The Bank is also a party to various taxation matters in respect of which
appeals are pending.

This represents amount remaining unpaid towards liability for partly paid
2 Liability on partly paid-up investments
investments.

The Bank enters into foreign exchange contracts in its normal course of
business to exchange currencies at a pre-fixed price at a future date. Forward
Liability on account of outstanding forward
3 exchange contracts are commitments to buy or sell foreign currency at a future
exchange contracts
date at the contracted rate. The derivative instruments become favourable or
unfavourable as a result of fluctuations in market rates.

As a part of its commercial banking activities, the Bank issues documentary

credit and guarantees on behalf of its customers. Documentary credits such
Guarantees given on behalf of constituents, as letters of credit enhance the credit standing of the Bank’s customers.
4
acceptances, endorsements and other obligations Guarantees generally represent irrevocable assurances that the Bank will
make payments in the event of the customer failing to fulfill its financial or
performance obligations

These include: a) Bills rediscounted by the Bank; b) Capital commitments; c)

Other items for which the Bank is contingently Investment purchases pending settlement; d) Amount transferred to the RBI
5
liable under the Depositor Education and Awareness Fund (DEAF); e) Other sundry
contingent liabilities

The Contingent Liabilities mentioned above are dependent upon the outcome of Court/arbitration/ out of Court settlements,
disposal of appeals, the amount being called up, terms of contractual obligations, devolvement and raising of demand by
concerned parties, as the case may be.
ii) Movement of provisions against Contingent Liabilities (B
ST) The movement of provisions against contingent liabilities given in the table below: (Amount ` in Crore)
Particulars Current Year Previous Year
Opening balance 16.62 26.45
Additions during the year 5.89 0.68
Amount utilised/reversed during the year 0.13 10.51
Closing balance 22.38 16.62

153
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Standalone Accounts"

16.Additional Disclosures ( ESTATE )

a. Payment to Micro, Small & Medium Enterprises under the Micro, Small & Medium Enterprises Development Act, 2006
There have been no reported cases of delayed payments of the principal amount or interest due thereon to Micro, Small
& Medium Enterprises.
b. Office Accounts ( Branche
Reconciliation/adjustment of inter-bank/inter-branch transactions, branch suspense, Government Transactions,
NOSTRO, System Suspense, Clearing, and Sundry Deposits is in progress on an ongoing basis. The impact, in the opinion
of the management of the un-reconciled entries, if any, on the financial statements would not be material.
c. Provision on accounts covered under the provisions of Insolvency and Bankruptcy Code (IBC):
In terms of RBI letter no. DBR,No.BO.15199/21.04.048/2016-17 dated June 23, 2017 and Letter no. DBR.
BP.1908/21.04.048/2017-18 dated August 28, 2017 for the accounts covered under the provisions of Insolvency and
Bankruptcy Code (IBC), the Bank is holding total provision of ` 126.55 crore (Aggregate provision of RBI List 1 and
List 2 accounts) as on March 31, 2024 (100% of Gross NPA advances). (Previous year` 129.35 crore {100% of total
outstanding}
d. During the year ended March 31, 2024, the Bank has made provision of ` 263crore towards wage revision on account of
12th Bi-Partite Wage Settlement effective from November 01, 2022 on ad-hoc basis. The same has been accounted for as
‘Payments to and provisions for employees’ under “Schedule 16: Operating Expenses.” ( HRD )
e. Previous year figures have been regrouped/reclassified/Recasted, wherever necessary, to conform to current year
classification.
f. Miscellaneous Income: BST – Saleem Sb )
During the year the following incomes earned (under the head Miscellaneous Income) were more than 1% of the Total
Income: - (Amount ` In Crores)
S No Income Category Amount
1. Recovery in Technically Written Off Accounts 134.17
2. Income On Card Business 148.17

g. Other Liabilities and provisions/ Other Assets: BST – Saleem Sb )

Following items under the head others in Schedule 11 – Other Assets exceeds 1% of the total assets
(Amount ` In Crores)
S No Particulars Amount

1. Dues From Government of J&K on account of Pension disbursed to retirees 3253.69

2. Investment in NABARD Refinance 2476.78

3. Investment in RIDF Refinance 2417.56
4. Investment in SIDBI Refinance 3559.49

h. Tax paid in advance/Tax deducted at source includes amount adjusted by Income Tax Department in respect of various
disputed demands. Based on the favourable appellate orders and interpretation of law, no further provision has been
considered by the management in respect of the disputed demands. BST
i. Fixed Assets ESTAT
Documentation formalities are pending in respect of certain immovable properties held by the bank valued at 8.90 Crore
(previous year 9.20 crores). In respect of immovable properties valued at 47.24 Crore (previous year 49.89 crores) as
on 31.03.2024 Bank holds agreement to sell along with the possession of the properties.
• Properties not having clear title/lease deeds for freehold & lease lands of the Bank:-
Value of property
S.No Particulars Category Area. as on 31.03.2024
(Crore)
1 Premises of Business Unit Vashi, Mumbai (1st Floor) NR-RCC 5400 Sq. ft. 7.57
2 Land at Currency Chest, Budgam Own land 4 Kanals & 05 Marlas. 0.14
3 Ansal Plaza. NR-RCC 17925 Sq. ft. 47.24
4 Land at Kargil. Own land 1 Kanal 4 Marlas. 0.99
5 Land at Kulgam. Own land 2 Kanals. 0.2
TOTAL 56.14

154
Schedule 18
"Notes on Standalone Accounts"
• The Bank during the Financial Year 2023-24 has revisited revaluation of its 51 freehold land and offices/buildings
based on valuations as on 31.03.2023 made by the independent valuers of the Bank resulting into net appreciation of
` 17.92 Crores credited to the revaluation reserve and a net amount of ` 0.06 crores on account of revaluation has
been drawn down from P/L account as it was earlier credited to P/L Account.
• Further, pursuant to the revised accounting standard-10 “Property, plant and equipment “applicable from 1st April
2017, depreciation of 30.09 Crores (previous year ` 20.54 Crores) on the revalued portion of the fixed assets (being
Premises & Land) has been transferred from the Revaluation reserve to General/ Revenue reserve and an amount of
0.18 Crore has been transferred from Revaluation Reserve to General Reserve on account of disposal of a previously
revalued asset.
• Further, Depreciation on Bank’s property includes amortization in respect of leased properties amounting to ` 0.76
Crores (previous year` 0.76 crores).
j. Corporate Social Responsibility (CSR)
Pursuant to Section 135 of the Companies Act 2013, specified companies covered under section 135(1) of the Companies
Act 2013 are required to spend at least 2% of the average net profits made during the three immediately preceding
financial years in pursuance of their Corporate Social Responsibility Policy. Accordingly, the Bank was required to spend
an amount of ` 18.91 crores (Previous Year ` 1.18 crores) on CSR activities during FY 2023-24, against which the Bank
has spent an amount of ` 18.91 crores (Previous year` 1.18 crores).
k. Provision Coverage Ratio (PCR) BST
Provision coverage ratio as on March 31, 2024 is 91.58% (previous year 86.20%) without taking into account the floating
provision of Rs.124.48 Crores held by the Bank as on March 31, 2024 which is part of Tier-II Capital.
l. Investor Complaints Boar
The details of investor complaints for the year ended March 31, 2024 are as under:
S No Particulars Number
1 No of complaints pending at the beginning of the financial year Nil
2 No. of complaints received during the financial year 304
3 No. of complaints disposed during the financial year 304
4 No. of complaints pending at the end of the financial year 0
m. In accordance with the approved accounting policy in respect of intangible assets and in compliance with Section 15(1)
of Banking Regulation Act 1951, The Bank has written off the entire amount of intangible assets amounting to Rs. 77.68
crores (Previous year Rs.35.72 crore)
n. Proposed Dividend BST
The Board of Directors at its meeting held on May 04, 2024 proposed a dividend of ` 2.15 per share (previous year Re
0.50 per share), subject to approval of the members at the ensuing Annual General Meeting. Effect of the proposed
dividend has been reckoned in determining capital funds in the computation of capital adequacy ratios as at March 31,
2024.

Baldev Prakash R. K. Chhibber Naba Kishore Sahoo Umesh Chandra Pandey Anil Kumar Goel Anand Kumar
Managing Director & CEO Director Director Director Director Director
DIN: 09421701 DIN: 08190084 DIN: 07654279 DIN: 01185085 DIN: 00672755 DIN: 03041018

Sudhir Gupta Shahla Ayoub Fayaz Ahmad Ganai Mohammad Shafi Mir
Executive Director Director Chief Financial Officer Company Secretary
DIN: 09614492 DIN: 09834993

Place : Srinagar
Dated: 4th May, 2024

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160
UDIN: 24541550BKAEUR9648 UDIN: 24089562BKCMZL2222 UDIN: 24080160BKCSIZ2889

Place : Srinagar
Dated: 4th May, 2024

155
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Standalone Cash Flow Statement

for the year ended 31st March, 2024
YEAR ENDED YEAR ENDED
31.03.2024 31.03.2023
(AUDITED) (AUDITED)
` `000’ Omitted ` `000’ Omitted
A CASH FLOW FROM OPERATING ACTIVITIES (8,514,863) (4,205,132)
B CASH FLOW FROM INVESTING ACTIV ITIES (2,571,263) (1,234,655)
C CASH FLOW FROM FINANCING ACTIVITIES 4,074,334 6,375,936
NET CHANGE IN CASH AND CASH EQUIVALENTS (7,011,792) 936,149
D CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 88,786,621 87,850,472
E CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 81,774,829 88,786,621
A. CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit after Taxes 17,672,682 11,973,800
Add : Provision for Taxes 6,173,005 5,869,827
Net profit before taxes (i) 23,845,687 17,843,627
Adjustment for :
Depreciation charges 2,175,456 1,575,629
Provision for NPA’s (736,088) (125,132)
Provision on Standard Assets (1,146,839) 632,352
Depreciation on investment 458,561 (125,277)
Provision for Non-Performing investment 758,834 834,572
Other provisions 47,193 (600,519)
Interest paid on subordinate Bonds (Financing Activities) 2,849,975 2,217,163
Total Adjustment (ii) 4,407,092 4,408,788
Operating profit before change in Operating assets & liabilities ( i ) + ( ii ) 28,252,779 22,252,415
Adjustment for changes in Operating Assets & Liabilities
Increase / (Decrease) in Deposits 127,371,566 73,273,584
Increase / (Decrease) in Borrowings (73,043) 4,885
Increase / (Decrease) in Other liabilities & provisions (65,331,815) 55,919,298
(Increase) / Decrease in investments (2,077,287) (10,650,933)
(Increase) / Decrease in Advances (114,034,510) (118,440,228)
(Increase) / Decrease in Other Assets 22,028,878 (22,013,866)
Net Cash flow from Operating activities ( iii ) (32,116,211) (21,907,260)
Cash generated from operation ( i + ii + iii ) (3,863,432) 345,155
Less : Tax paid 4,651,431 4,550,287
TOTAL : ( A ) (8,514,863) (4,205,132)
B. CASH FLOW FROM INVESTING ACTIVITIES :
a) Fixed Assets (1,855,585) (1,234,655)
b) Investment in Subsidiary/Sponsored Institution (715,678) -
TOTAL : ( B ) (2,571,263) (1,234,655)

156
Standalone Cash Flow Statement
for the year ended 31st March, 2024

C. CASH FLOW FROM FINANCING ACTIVITIES:

a) Share Capital 69,703 98,593
b) Share Application Money - (935,000)
b) Share Premium 7,370,346 4,219,506
c) Tier I & II Bonds - 5,210,000
d) Dividend Paid (515,740) -
e) Interest paid on Bonds (2,849,975) (2,217,163)
TOTAL :( C ) 4,074,334 6,375,936
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR
D.
(1st April)
a) Cash in hand & Balance with R.B.I 77,940,577 77,502,028
b) Balance with Banks & Money at Call & Short Notice 10,846,044 10,348,444
TOTAL :( D ) 88,786,621 87,850,472
E. CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
a) Cash in hand & Balance with R.B.I 72,500,801 77,940,577
b) Balance with Banks & Money at Call & Short Notice 9,274,028 10,846,044
TOTAL :( E ) 81,774,829 88,786,621

For and on behalf of the Board

Baldev Prakash R. K. Chhibber Naba Kishore Sahoo Umesh Chandra Pandey Anil Kumar Goel Anand Kumar
Managing Director & CEO Director Director Director Director Director
DIN: 09421701 DIN: 08190084 DIN: 07654279 DIN: 01185085 DIN: 00672755 DIN: 03041018

Sudhir Gupta Shahla Ayoub Fayaz Ahmad Ganai Mohammad Shafi Mir
Executive Director Director Chief Financial Officer Company Secretary
DIN: 09614492 DIN: 09834993

Place : Srinagar
Dated: 4th May, 2024

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160
UDIN: 24541550BKAEUR9648 UDIN: 24089562BKCMZL2222 UDIN: 24080160BKCSIZ2889

Place : Srinagar
Dated: 4th May, 2024

157
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Independent Auditors Report

To and fair view of the state of affairs of the Bank as at 31st
The Members of March, 2024;
Jammu & Kashmir Bank Limitead. b) the Profit and Loss Account read with the notes thereon
shows a true balance of profits; and
Report on Audit of the Consolidated Financial Statements. c) the Cash Flow Statement gives a true and fair view of the
Opinion cash flows for the year ended on that date.
1. We have audited the accompanying consolidated financial
statements of Jammu and Kashmir Bank Limited (‘the Bank’) Basis for Opinion
and its subsidiary & associate (together, ‘the Group’) comprising 3. We conducted our audit in accordance with the Standards
of the consolidated Balance Sheet as at 31st March 2024, the on Auditing (SAs) specified under section 143(10) of the
consolidated Profit and Loss Account, and the consolidated Companies Act, 2013. Our responsibilities under those Standards
Cash Flow Statement for the year then ended, and a summary are further described in the Auditor’s Responsibilities for the
of significant accounting policies and notes to the consolidated Audit of the Consolidated Financial Statements section of our
financial statements (herein after referred to as ‘the consolidated report. We are independent of the Bank in accordance with the
financial statements’). The consolidated financial statements Code of Ethics issued by the Institute of Chartered Accountants
included the Returns for the year ended on that date of: of India (‘ICAI’) together with the ethical requirements that are
relevant to our audit of the Consolidated financial statements
(i) 48 branches/offices audited by us; under the provisions of the Act and the Rules thereunder, and we
(ii) 980 branches/offices audited by Statutory Branch Auditors; have fulfilled our other ethical responsibilities in accordance with
(iii) One subsidiary audited by the subsidiary company auditor; these requirements and the Code of Ethics. We believe that the
and audit evidence we have obtained is sufficient and appropriate to
(iv) One associate audited by the associate appointed auditor. provide a basis for our opinion.
The branches/offices audited by us and those audited
by the other Auditors have been selected by the Comptroller Emphasis of Matter
and Auditor General of India in accordance with the Guidelines 3. We draw attention to
issued to the bank by the Reserve Bank of India.
2. In our opinion and to the best of our information and according i. Note No 15(b)(vii) of Schedule 18 of the financial
to the explanations given to us and based on the consideration statements regarding excess in fair value of Plan Assets in
of report of other auditor on separate audited financial Gratuity Benefits over present value of funded obligation
statements / financial information of the subsidiary, associate amounting to Rs 243.07 crore credited to “Payments to
and branches, as referred to in paragraphs 9 to 12 below, the and Provisions for Employees” with consequential impact
aforesaid consolidated Financial Results: on results for the year.
ii. Note no. 16(g) of Schedule 18 of the financial statements,
(i) includes the annual financial results of the following entities: which states that ‘Other assets’ of the Bank include dues
of Rs 3253.69 crore from Government of UT of Jammu
and Kashmir on account of disbursement of Pension to
S.No Name of Company Relation retired employees of UT of Jammu and Kashmir.
1 Jammu & Kashmir Bank Ltd Parent
Our Opinion is not modified in respect of these matters.
2 JKB Financial Services Limited Subsidiary
Key Audit Matters
3 J&K Grameen Bank Associate 5. Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
(ii) given the information required by the Banking consolidated financial statements the year ended March 31,
Regulation Act, 1949 as well as the Companies Act, 2013 2024. These matters were addressed in the context of our
in the manner so required for banking Companies and audit of the consolidated financial statements as a whole,
are in conformity with accounting principles generally and in forming our opinion thereon, and we do not provide a
accepted in India and: separate opinion on these matters. We have determined the
a) the Balance Sheet read with the notes thereon is a full matters prescribed below to be the key audit matters to be
and fair Balance Sheet containing all the necessary communicated in our report.
particulars, is properly drawn up so as to exhibit a true

158
Sr.
Key Audit Matters How the matter was addressed in our audit
No.
Classification of Advances, Income Recognition, Identification
i. of and provisioning for non-performing Advances (Refer
Schedule 9 read with Note 3 of Schedule 17 to the financial
statements): Our audit approach towards advances with reference to the
Income Recognition and asset classification (IRAC) norms and
Advances include Bills purchased and discounted, Cash other related circulars/directives issued by the RBI and also
credits, Overdrafts, Loans repayable on demand and Term internal policies and procedures of the Bank includes the testing
loans. These are further categorized as secured by Tangible of controls on sample basis. Also performed other substantive
assets (including advances against Book Debts), covered by procedures included and not limited to the following:
Bank/Government Guarantees and Unsecured advances.
a. The accuracy of the data input in the system for income
Advances constitute 60.68% of the Bank’s total assets. recognition, classification into performing and non-
They are, interalia, governed by income recognition, asset performing Advances and provisioning in accordance with the
classification and provisioning (IRAC) norms and other IRAC norms in respect of the branches audited by us;
circulars and directives issued by the RBI from time to time
which provide guidelines related to classification of Advances b. Existence and effectiveness of monitoring mechanisms by way
into performing and non- performing Advances (NPA), of various internal audits as per the policies and procedures
classification of advances and provisioning thereof is made of the Bank;
as per RBI guidelines. The Bank classifies these Advances
based on IRAC norms as per its accounting policy No.3 of c. Examination of advances including stressed advances on a
Schedule 17. sample basis with respect to compliance with the RBI Master
Circulars/ Directions/ Guidelines;
Identification of performing and non-performing Advances
involves establishment of proper mechanism. The Bank d. We have examined the efficacy of various internal controls
accounts for all the transactions related to Advances in its over advances to determine the nature, timing and extent
Information Technology System (IT System) viz. Core Banking of the substantive procedures and compliance with the
Solution (CBS) which identifies whether the advances are observations of the various audits conducted as per the
performing or non- performing. monitoring mechanism of the Bank and RBI SPARC, IRAR and
RMP.
The bank is in the continuous process to upgrade existing e. In carrying out substantive procedures at the branches audited
& implement new IT applications in various areas of its by us, we have examined large advances/ stressed advances
business operations, including income recognition and asset while other advances have been examined on a sample basis
classification in terms of RBI guidelines. These applications including review of valuation reports of independent valuers
require detailed testing, verifications and User Acceptance provided by the Bank’s management.
Testing (UAT) before final implementation.
f. We assessed and evaluated the process of identification of
The carrying value of the advances (net of provisions) may be NPAs and corresponding reversal of income and creation of
materially misstated if, either individually or in aggregate, the provisions;
IRAC norms are not properly followed.
g. Reliance is also placed on Audit Reports of other Statutory
Considering the nature of the transactions, regulatory Branch Auditors.
requirements, existing business environment, estimation/
judgement involved in valuation of securities and calculation h. Bank has laid down detailed Standard Operating Procedure
of provisions, it is a matter of high importance for the to ensure control over processes. We have relied on these
intended users of the Standalone Financial Statements, we
have determined this as a Key Audit Matter. Standard Operating Procedures and have conducted our testing
based on these Standard Operating Procedures.
Accordingly, our audit was focused on income recognition,
asset classification and provisioning pertaining to advances due
to the materiality of the balances.

ii. Classification and Valuation of Investments, Identification Our audit approach towards Investments with reference to the
of and provisioning for Non-Performing Investments RBI Master directions included the understanding of internal
(Schedule 8 read with Note 2 of Schedule 17 to the financial controls and substantive audit procedures in relation to valuation,
statements): classification, identification of non-performing investments (NPIs),
provisioning/depreciation related to Investments. In particular;
Investments include investments made by the Bank in
various Government Securities, other approved securities, a. We understood and evaluated the Bank’s internal control
Shares, Debentures & Bonds, subsidiaries & sponsored system to comply with relevant RBI guidelines regarding
Institutions, and other approved securities. valuation, classification, identification of NPIs, provisioning/
depreciation related to investments;
Investments constitute 22.59 % of the Bank’s total assets.
These are governed by the circulars and directives of the b. For the selected sample of investments in hand, we tested
RBI. These directions of RBI, inter-alia, cover valuation of accuracy and compliance with the RBI Master directions
investments, classification of investments, identification by re-performing valuation for each category of security.
of non-performing investments, the corresponding non- Samples were selected after ensuring that all the categories
recognition of income and provision thereof. of investments (based on nature of security) were covered in
the sample;
Considering the complexities and extent of judgement
involved in the valuation, volume of transactions, c. We assessed and evaluated the process of identification of
investments on hand and degree of regulatory focus, this NPIs and corresponding reversal of income and creation of
has been determined as a Key Audit Matter. provision;

Accordingly, our audit was focused on valuation of d. We carried out substantive audit procedures to recompute
investments, classification, identification of non-performing independently the provision to be maintained and depreciation
investments and provisioning related to investments. to be provided in accordance with RBI guidelines.

159
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

iii. Assessment of Provisions and Contingent liabilities in Our audit approach involved:
respect of certain litigations on Taxes, various claims filed
by other parties not acknowledged as debt (Schedule 12 read a. Understanding the current status of the litigations/ tax
with Note 15 (k) of Schedule 18 to the financial statements): assessments including the status upto the date of auditor’s
report;
There is high level of judgement required in estimating the
level of provisioning. The Bank’s assessment is supported by b. Examining recent orders and/or communication received from
the facts of matter, their own judgement, past experience, various tax authorities/judicial forums and follow up action
and advice from legal and independent tax consultants thereon;
wherever considered necessary. Accordingly, unexpected
adverse outcomes may significantly impact the Bank’s c. Review and analysis of evaluation of the contentions of the
reported profit and state of affairs presented in the Balance Bank through discussions, collection of details of the subject
Sheet. matter under consideration, the likely outcome and consequent
potential outflows on those issues; and
We determined the above area as a Key Audit Matter in
view of associated uncertainty relating to the outcome of d. Verification of disclosures related to significant litigations and
these matters which requires application of judgement in taxation matters.
interpretation of law. Accordingly, our audit was focused on
analyzing the facts of subject matter under consideration and
judgements/interpretation of law involved.

iv. Information Technology (“IT”) Systems and Controls Our protocols pertaining to this issue comprised the following
impacting Financial Reporting measures:

The Bank’s IT environment comprises a multitude of autonomous Technology specialist assisted in the evaluation of the controls
and interdependent IT systems that are utilized to process and governing the Bank’s IT systems by gaining knowledge of the IT
record a substantial volume of transactions in the course of infrastructure, IT environment, and IT systems. We assessed and
business operations. examined the pertinent IT general controls on the critical IT systems
and IT dependencies that were determined to be significant for our
examination of the Bank’s standalone financial statements and
Consequently, the Bank’s financial reporting process is highly financial reporting process. Important general controls in information
critical and reliant on these information technology systems. technology have been evaluated for the critical IT systems in the
following domains:
Appropriate IT general controls and IT application controls are Programme change management, encompassing the transfer
necessary to ensure that such IT systems can process the data in a of programme modifications to the production environment in
consistent, comprehensive, and accurate manner, as required for accordance with established protocols, while also ensuring the
dependable financial reporting. appropriate segregation of environments.
User access management, encompassing activities such as provisioning
and de-provisioning user access, conducting access reviews, managing
We have identified specific critical IT systems that significantly passwords, overseeing sensitive access rights, and implementing
influence the financial reporting process and associated control segregation of duties, to guarantee that only authorised personnel
testing. These systems are considered a critical audit matter due to were granted privilege access to applications, operating systems, and
several factors, including the Bank’s extensive use of automation, databases in the production environment.
the complex nature of its IT architecture, and the influence it has on
the financial records and financial reporting process.
Programme development, encompassing the establishment of controls
pertaining to the development or implementation of IT applications
and the associated infrastructure, upon which financial reporting is
dependent.

IT operations, encompassing tasks such as backup and recovery,

monitoring, and job scheduling.

In addition, we assessed the operational efficiency and design of

critical IT dependencies that are integral to the critical business process.
This encompassed the testing of
interfaces, automated controls, accounting procedures, calculations,
segregation of duties, and system-generated reports, where applicable.
We established communication with individuals responsible for
governance and management, and when required, we implemented
alternative audit procedures and/or tested a combination of
compensating controls or remedied controls.

160
Information Other than the consolidated Financial Statements decisions of users taken on the basis of these Consolidated
and Auditor’s Report Thereon Financial Results.
6. The Bank's Board of Directors is responsible for the other • As part of an audit in accordance with SAs, we exercise
information. The other information comprises the Corporate professional judgment and maintain professional scepticism
Governance Report (but does not include the consolidated throughout the audit. We also:
financial statements and our auditor’s report thereon). Identify and assess the risks of material misstatement of
Our opinion on the consolidated financial statements does not the consolidated financial statements, whether due to fraud
cover the other information and we do not express any form of or error, design and perform audit procedures responsive to
assurance or conclusion thereon. those risks, and obtain audit evidence that is sufficient and
In connection with our audit of the Consolidated financial appropriate to provide a basis for our opinion. The risk of not
statements, our responsibility is to read the other information detecting a material misstatement resulting from fraud is
and, in doing so, consider whether the other information higher than for one resulting from error, as fraud may involve
is materially inconsistent with the Consolidated financial collusion, forgery, intentional omissions, misrepresentations,
statements or our knowledge obtained in the audit or otherwise or the override of internal control.
appears to be materially misstated. • Obtain an understanding of internal control relevant to the
If, based on the work we have performed, we conclude that audit in order to design audit procedures that are appropriate
there is a material misstatement of this other information, we in the circumstances. Under section 143(3) (i) of the Companies
are required to report that fact. We have nothing to report in Act, 2013, we are also responsible for expressing our opinion
this regard. on whether the group has adequate internal financial controls
system in place and the operating effectiveness of such
Responsibilities of Management and Those Charged with controls.
Governance for the Consolidated Financial Results • Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
7. The Bank's Management and Board of Directors is responsible disclosures made by management.
for the matters stated in section 134(5) of the Companies • Conclude on the appropriateness of management’s use of the
Act, 2013 (‘the Act’) with respect to the preparation of these going concern basis of accounting and, based on the audit
consolidated financial results that give a true and fair view of evidence obtained, whether a material uncertainty exists
the financial position, financial performance and cash flows related to events or conditions that may cast significant doubt
of the group in accordance with the accounting principles on the group’s ability to continue as a going concern. If we
generally accepted in India, including the Accounting conclude that a material uncertainty exists, we are required
Standards specified under section 133 of the Act, and to draw attention in our auditor’s report to the related
provisions of Section 29 of the Banking Regulation Act, 1949 disclosures in the financial statements or, if such disclosures
and circulars and guidelines issued by the Reserve Bank of are inadequate, to modify our opinion. Our conclusions are
India (‘RBI’) from time to time. This responsibility also includes based on the audit evidence obtained up to the date of our
maintenance of adequate accounting records in accordance auditor’s report. However, future events or conditions may
with the provisions of the Act for safeguarding of the assets cause the group to cease to continue as a going concern.
of the Bank and for preventing and detecting frauds and • Evaluate the overall presentation, structure and content of the
other irregularities; selection and application of appropriate Consolidated Financial Statements, including the disclosures,
accounting policies; making judgments and estimates that and whether the Consolidated Financial Statements represent
are reasonable and prudent; and design, implementation the underlying transactions and events in a manner that
and maintenance of adequate internal financial controls, achieves fair presentation.
that were operating effectively for ensuring the accuracy • Obtain sufficient appropriate audit evidence regarding the
and completeness of the accounting records, relevant to the financial information of the entities within the Group and its
preparation and presentation of the consolidated financial associates to express an opinion on the consolidated financial
statements that give a true and fair view and are free from statements. We are responsible for the direction, supervision
material misstatement, whether due to fraud or error. and performance of the audit of the financial statements of
In preparing the consolidated financial results, respective such entities included in the consolidated financial statements
Management and Board of Directors of the entities included of which we are the independent auditors. For the other entities
in the Group are responsible for assessing the ability of the included in the consolidated financial statements, which have
Group to continue as a going concern, disclosing, as applicable, been audited by other auditors, such other auditors remain
matters related to going concern and using the going concern responsible for the direction, supervision and performance of
basis of accounting unless Management and Board of Directors the audits carried out by them. We remain solely responsible
either intends to liquidate the Group or to cease operations, or for our audit opinion.
has no realistic alternative but to do so. The respective Board Materiality is the magnitude of the misstatements in the
of Directors of the entities included in the Group are also consolidated financial results that, individually or in aggregate,
responsible for overseeing the financial reporting process of makes it probable that the economic decisions of a reasonably
the Group. knowledgeable user of the Consolidated Financial Statements
may be influenced. We consider quantitative materiality and
Auditor’s Responsibilities for the audit of the consolidated qualitative factors in (i) planning the scope of our audit work
Financial Results and evaluating the results of our work; and (ii) to evaluate
the effect of any identified misstatement in the consolidated
8. Our objectives are to obtain reasonable assurance about financial results.
whether the Consolidated Financial Results as a whole are We communicate with those charged with governance
free from material misstatement, whether due to fraud or regarding, among other matters, the planned scope and
error, and to issue an auditor’s report that includes our timing of the audit and significant audit findings, including
opinion. Reasonable assurance is a high level of assurance, any significant deficiencies in internal control that we identify
but is not a guarantee that an audit conducted in accordance during our audit.
with SAs will always detect a material misstatement when it We also provide those charged with governance with a
exists. Misstatements can arise from fraud or error and are statement that we have complied with relevant ethical
considered material if, individually or in the aggregate, they requirements regarding independence, and to communicate
could reasonably be expected to influence the economic with them all relationships and other matters that may

161
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

reasonably be thought to bear on our independence, and Report on Other Legal and Regulatory Requirements
where applicable, related safeguards. From the matters
communicated with those charged with governance, we 13. The consolidated Balance Sheet and the Profit and Loss
determine those matters that were of most significance in Account have been drawn up in accordance with the provisions
the audit of the Consolidated Financial Statements of the of Section 29 of the Banking Regulation Act, 1949 and Section
current period and are therefore the key audit matters. We 133 of the Companies Act, 2013 read with Rule 7 of the
describe these matters in our auditor’s report unless law or Companies (Accounts) Rules, 2014.
regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a 14. The Comptroller and Auditor General of India has issued
matter should not be communicated in our report because directions indicating the areas to be examined in terms of
the adverse consequences of doing so would reasonably be sub-section (5) of section 143 of the Companies Act, 2013, the
expected to outweigh the public interest benefits of such compliance of which is set out in “Annexure-A” to this Report.
communication.
15. As required by sub-section (3) of section 30 of the Banking
9. Other Matters Regulation Act, 1949, we report that:
We did not audit the financial statements/information of 980
branches/ offices (of the Bank ) included in the consolidated a) we have obtained all the information and explanations
financial results of the Group whose financial statements/ which, to the best of our knowledge and belief, were
financial information reflect total assets of Rs. 70622.21 necessary for the purpose of our audit and have found
crores including total advances of Rs 90579.23 Crores and them to be satisfactory;
total revenue of Rs 8476.06 Crores as at 31st March 2024, b) the transactions of the Bank , which have come to our
as considered in the Consolidated Financial Statements. The notice, have been within the powers of the Bank;
financial statements / information of these branches has c) the returns received from the offices; and branches of
been audited by the branch auditors whose reports have been the Bank have been found adequate for the purposes of
furnished to us, and in our opinion in so far as it relates to our audit;
the amounts and disclosures included in respect of branches, d) the consolidated profit and loss account shows a true
is based solely on the report of such branch auditors. Our balance of profit for the year then ended.
opinion on the financial statements does not cover the other
information and the Basel-III disclosure and we do not express 16. Further, as required by section 143(3) of the Act, we report
any form of assurance conclusion thereon. that:
a) the other auditor whose report we have relied upon have
sought and obtained all the information and explanations
10. The accompanying consolidated Financial Results include which to the best of our knowledge and belief were necessary
the audited financial results of 1 subsidiary whose financial for the purpose of our audit of the consolidated financial
statements/ results/ financial information reflects Group’s statements;
share of total revenues of Rs 15.15 crores, and Group’s share of b) in our opinion, proper books of account as required by law
total net profit after tax of Rs 2.64 crores for the year ended have been kept by the Group so far as it appears from our
on that date, which has been audited by other auditor, which examination of those books;
financial statements, other financial information and Auditor c) the reports on the accounts of the branch offices of the Group
report have been furnished to us by the management. Our audited under section 143(8) of the Act by branch auditors of
the Bank have been sent to us/ the other auditor whose report
opinion on the consolidated financial statements, in so far as we have relied upon and have been properly dealt with by us in
it relates to the amounts and disclosures included in respect preparing this report;
of this subsidiary, is based solely on the reports of such other d) the Consolidated Balance Sheet, the Statement of Profit and
auditor. Loss and the Statement of Cash Flows dealt with by this report
are in agreement with the books of account;
11. The consolidated financial results includes Bank’s share of e) in our opinion, the aforesaid consolidated financial statements
net profit after tax of Rs.1.32 crores for the year ended March comply with the Accounting Standards specified under Section
31, 2024, as considered in the Statement, in respect of one 133 of the Act, read with Rule 7 of the Companies (Accounts)
associate, whose financial statements have not been audited Rules, 2014, to the extent they are not inconsistent with the
by us. These financial statements have been audited by other accounting policies prescribed by RBI;
independent auditor whose report on financial statements f) on the basis of written representations received from the
has been furnished to us by the management and our opinion directors as on 31st March 2024 and taken on record by the
on the Statement, in so far as it relates to the amounts and Board of Directors, none of the directors is disqualified as on
disclosures included in respect of this associate, is based solely 31st March 2024 from being appointed as a director in terms
on the report of such auditor. of Section 164(2) of the Act;
g) with respect to the adequacy of the internal financial controls
12. We did not incorporate The Jammu & Kashmir Asset over financial reporting of the Group and the operating
Reconstruction Limited which has been incorporated by effectiveness of such controls, refer to our separate Report
in “Annexure B”;
Government of J&K and J&K Bank Ltd on 28.04.2017. The
h) as per the Notification No. GSR 463(E) dated 05.06.2015
Bank has subscribed capital to the tune of Rs 98 lakhs whereas
Section 197 of Companies Act, 2013 is not applicable to Jammu
Government of J&K has subscribed Rs 102 lakhs. The Bank has
& Kashmir Bank Limited, being a Government Company;
incurred Rs 7632730/- towards incorporation expenses for
i) with respect to the other matters to be included in the Auditor’s
the company. The promoters i.e. J&K Government and Jammu
Report in accordance with Rule 11 of the Companies (Audit and
& Kashmir Bank Limited have not released their respective
Auditors) Rules, 2014, in our opinion and to the best of our
shares towards the capital of the company. In the meantime,
information and according to the explanations given to us:
the promoters have decided to wind up the company and in i) the Bank has disclosed the impact of pending litigations
turn the Bank has approached the Registrar of Companies on its financial position in its financial statements – in
(J&K) (ROC) for removal of the name of the company from the Schedule 12., to the financial statements;
Register of Companies under Section 248 of the Companies ii) The Group did not have any long term contracts including
Act, 2013. The application of the Bank is pending with ROC derivative contracts for which there were any material
foreseeable losses and
iii) There has been no delay in transferring amounts, required
Our opinion is not modified in respect of these matters. to be transferred, to the Investor Education and Protection
Fund by the Bank;

162
 iv) any person(s) or entity(ies), including foreign entities
(a) The respective Managements of the Bank, its (“Funding Parties”), with the understanding, whether
subsidiary and associate, whose financial statements recorded in writing or otherwise, that the Bank or
have been audited under the Act, have represented any of such subsidiaries shall, directly or indirectly,
to us and the other auditors of such subsidiary and lend or invest in other persons or entities identified
associate, respectively, that to the best of their in any manner whatsoever by or on behalf of the
knowledge and belief, no funds (which are material Funding Party (“Ultimate Beneficiaries”) or provide
either individually or in the aggregate) have been any guarantee, security or the like on behalf of the
advanced or loaned or invested (either from borrowed Ultimate Beneficiaries.
funds or share premium or any other sources or kind c) Based on the audit procedures, that has been
of funds) by the Bank or any of such subsidiary or considered reasonable and appropriate in the
associate to or in any other person(s) or entity(ies), circumstances, performed by us and those performed
including foreign entities (“Intermediaries”), with by the auditors of the subsidiary and associate,
the understanding, whether recorded in writing or whose financial statements have been audited under
otherwise, that the Intermediary shall, directly or the Act, nothing has come to our or other auditors’
indirectly, lend or invest in other persons or entities notice that has caused us or the other auditors to
identified in any manner whatsoever by or on behalf believe that the representations under subclause (i)
of the Bank or any of such subsidiary or associate and of Rule 11(e) contain any material misstatement.
(“Ultimate Beneficiaries”) or provide any guarantee, v) The dividend declared and paid during the year by the Bank,
security or the like on behalf of the Ultimate is in compliance with Section 123 of the Companies Act 2013.
Beneficiaries. vi) As per the proviso to Rule 3(1) of the Companies (Accounts)
b) The respective Managements of the Bank and its Rules, 2014 (as amended), the bank has used such accounting
subsidiary and associate, whose financial statements software for maintaining its books of account which has a
have been audited under the Act have represented feature of recording audit trail (edit log) facility and the same
to us and the other auditors of such subsidiary and has been operated throughout the year for all transactions
associate respectively that, to the best of their recorded in the software and the audit trail feature has not
knowledge and belief, no funds (which are material been tampered with and the audit trail has been preserved
either individually or in the aggregate) have been by the company as per the statutory requirements for record
received by the Bank or any of such subsidiaries from retention.

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160
UDIN: 24541550BKAEUS9046 UDIN: 24089562BKCMZM9295 UDIN: 24080160BKCSJA6004

Place : Srinagar
Dated: 4th May, 2024

163
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Annexure-A to Para 14 of Independent Auditor’s Report of even date on the consolidated Financial Results of Jammu and Kashmir
Bank Limited.
Directions/sub-directions of Comptroller and Auditor General of India under Section 143(5) of Companies Act 2013 for the
Financial Year 2023-2024

Impact on accounts
Auditor’s comments including
S. No. Directions/Sub directions and
action taken wherever required
financial statements

Whether the company has system in place to process all the As per information and
accounting transactions through IT system? If yes, the implications explanation given to us the bank
1 of processing of accounting transactions outside IT system on the has system in place to process Nil
integrity of the accounts along with the financial implication, if any all the accounting transactions
may be stated. through IT.

Whether there is any restructuring of an existing loan or cases

of waiver/write off of debts/loans/interest etc. made by a lender
Yes, the restructuring of loan
Jammu and Kashmir bank Ltd) to the company (all Borrowers)
was done as per the provisions
due to the company’s (borrower’s) inability to repay the loan? If Refer Schedule 18
2 of the Reserve Bank of India and
yes, the financial impact may be stated. Whether such cases are Note 4(b) and 4(g)
Bank’s own Restructuring of
properly accounted for? (In case, lender is a Government company,
loan Policy.
then this direction is also applicable for statutory auditor of lender
company).

There are no deviations. The

loans received are utilized for
Whether funds (grants/subsidy etc.) received/receivable for specific
the intended purpose. However,
schemes from Central/State Government or its agencies were
3 during the FY 2023-24 grants/ Nil
properly accounted for/ utilized as per its term and conditions? List
subsidy received has been
the cases of deviation.
utilized in accordance with the
stipulated guidelines.

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160
UDIN: 24541550BKAEUS9046 UDIN: 24089562BKCMZM9295 UDIN: 24080160BKCSJA6004

Place : Srinagar
Dated: 4th May, 2024

164
 Annexure B to the Independent Auditor’s Report of even date on the Consolidated Financial Statements of Jammu
and Kashmir Bank Limited
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of
the Companies Act, 2013

1. We have audited the internal financial controls over

financial reporting of The Jammu & Kashmir Bank 4. Our audit involves performing procedures to obtain
Limited (‘the Bank’) and its subsidiary audited by audit evidence about the adequacy of the internal
other auditor (together referred to as ‘the Group’) as financial controls system over financial reporting and
at 31 March 2024 in conjunction with our audit of the their operating effectiveness. Our audit of internal
Consolidated Financial Statements of the group for financial control over financial reporting included
the year ended on that date. Reporting under clause obtaining an understanding of internal financial
(i) of sub section 3 of section 143 of the act in respect controls over financial reporting, assessing the risk that
of the adequacy of the internal financial controls with a material weakness exists, and testing and evaluating
reference to financial statements is not applicable to J the design and operating effectiveness of internal
& K Grameen Bank (‘the Associate’). control based on the assessed risk. The procedures
selected depend on the auditor’s judgement, including
Management’s Responsibility for Internal Financial the assessment of the risks of material misstatement of
Controls over Financial Reporting the financial statements, whether due to fraud or error.
2. The respective Boards of Directors of the group are
responsible for establishing and maintaining internal 5. We believe that the audit evidence we have obtained
financial controls based on the internal control over is sufficient and appropriate to provide a basis for our
audit opinion on the Group’s internal financial controls
financial reporting criteria established by the Group system over financial reporting.
considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Meaning of Internal Financial Controls over Financial
Financial Controls Over Financial Reporting (‘the Reporting
Guidance Note’) issued by the Institute of Chartered 6. A Group’s internal financial controls over financial
Accountants of India (‘the ICAI’). These responsibilities reporting is a process designed to provide reasonable
include the design, implementation and maintenance of assurance regarding the reliability of financial reporting
adequate internal financial controls that were operating and the preparation of financial statements for external
effectively for ensuring the orderly and efficient purposes in accordance with generally accepted
conduct of its business, including adherence to Group’s accounting principles. A Group’s internal financial
policies, the safeguarding of its assets, the prevention controls over financial reporting includes those policies
and detection of frauds and errors, the accuracy and and procedures that
completeness of the accounting records, and the timely
preparation of reliable financial information, as required a) pertain to the maintenance of records that, in
under the Companies Act, 2013 (‘the Act’). reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the
.Auditor’s Responsibility group;
3. Our responsibility is to express an opinion on the Group’s
internal financial controls over financial reporting based b) provide reasonable assurance that transactions
on our audit. We conducted our audit in accordance are recorded as necessary to permit preparation
with the Guidance Note on Audit of Internal Financial of financial statements in accordance with
Controls Over Financial Reporting (‘the Guidance Note’) generally accepted accounting principles, and that
and the Standards on Auditing (‘the Standards’), issued receipts and expenditures of the group are being
by the ICAI and deemed to be prescribed under section made only in accordance with authorisations of
143(10) of the Act, to the extent applicable to an audit management and directors of the group; and
of internal financial controls, both issued by the ICAI.
Those Standards and the Guidance Note require that c) provide reasonable assurance regarding
we comply with ethical requirements and plan and prevention or timely detection of unauthorized
perform the audit to obtain reasonable assurance acquisition, use, or disposition of the group’s
about whether adequate internal financial controls over assets that could have a material effect on the
financial statement.
financial reporting was established and maintained and
if such controls operated effectively in all material
respects.

165
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Inherent Limitations of Internal Financial Controls over Opinion

Financial Reporting 8. In our opinion, the Group has, in all material respects,
7. Because of the inherent limitations of internal financial an adequate internal financial controls system over
controls over financial reporting including the possibility financial reporting and such internal financial controls
of collusion or improper management override of over financial reporting were operating effectively as
controls, material misstatements due to error or fraud at 31 March 2024, based on the internal control over
may occur and not be detected. Also, projections of consolidated financial reporting criteria established
any evaluation of the internal financial controls over by the Group considering the essential components of
financial reporting to future periods are subject to the internal control stated in the Guidance Note issued by
risk that the internal financial controls over financial the ICAI.
reporting may become inadequate because of changes
in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160
UDIN: 24541550BKAEUS9046 UDIN: 24089562BKCMZM9295 UDIN: 24080160BKCSJA6004

Place : Srinagar
Dated: 4th May, 2024

166
Consolidated Balance Sheet
as at 31st March, 2024

As at As at
Schedule 31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted

CAPITAL AND LIABILITIES

Capital 1 1,101,326 1,031,623
Reserves and Surplus 2 120,825,934 97,931,629
Minority Interest 2A - -
Deposits 3 1,347,632,358 1,220,271,791
Borrowings 4 28,850,015 28,923,058
Other Liabilities and Provisions 5 46,636,179 110,967,815
TOTAL 1,545,045,812 1,459,125,916
ASSETS
Cash and Balance with Reserve Bank of India 6 72,500,801 77,940,577
Balance with Banks & Money at Call & Short Notice 7 9,463,996 11,048,018
Investments 8 349,002,224 347,804,013
Advances 9 937,565,965 822,776,113
Fixed Assets 10 22,577,497 22,717,523
Other Assets 11 153,935,329 176,839,672
TOTAL 1,545,045,812 1,459,125,916
Contingent Liabilities 12 48,448,743 52,337,681
Bills for Collection 15,132,708 17,054,071
Principal Accounting Policies 17
Notes on Accounts 18

The schedules referred to above form an integral part of the Balance Sheet.

Baldev Prakash R. K. Chhibber Naba Kishore Sahoo Umesh Chandra Pandey Anil Kumar Goel Anand Kumar
Managing Director & CEO Director Director Director Director Director
DIN: 09421701 DIN: 08190084 DIN: 07654279 DIN: 01185085 DIN: 00672755 DIN: 03041018

Sudhir Gupta Shahla Ayoub Fayaz Ahmad Ganai Mohammad Shafi Mir
Executive Director Director Chief Financial Officer Company Secretary
DIN: 09614492 DIN: 09834993

Place : Srinagar
Dated: 4th May, 2024

In terms of our report of even date annexed

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160
UDIN: 24541550BKAEUS9046 UDIN: 24089562BKCMZM9295 UDIN: 24080160BKCSJA6004

Place : Srinagar
Dated: 4th May, 2024

167
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedules to Consolidated Balance Sheet

as at 31st March, 2024
As at As at
31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted

SCHEDULE 1 - CAPITAL
Authorised Capital
1,850,000,000 (P.Y. 1,850,000,000 )
Equity Shares of Rs.1/- each 1,850,000 1,850,000
Issued
1,101,400,463 (P.Y 1,031,697,861) Equity Shares of Rs.1/= each 1,101,400 1,031,698
Subscribed and Paid-up Capital
1,101,182,463 (P.Y. 1,031,479,861 )
Equity Shares of Rs. 1/- each 1,101,182 1,031,479

Add Forfeited Equity Shares (218,000 ) ( P.Y. 218,000) 144 144

TOTAL 1,101,326 1,031,623

SCHEDULE 2 - RESERVES & SURPLUS

I. Statutory Reserves
Opening Balance 27,030,883 24,037,433
Additions during the year 4,418,171 2,993,450
Deductions during the year - -
Closing Balance 31,449,054 27,030,883
II. Capital Reserves
a) Revaluation Reserve Fixed Assets
Opening Balance 12,812,625 9,498,454
Additions during the year on account of Revaluation Reserve 179,256 3,519,560
Deduction during the year (depreciation) (302,758) (205,389)
Closing Balance 12,689,123 12,812,625
b) Others
Opening Balance 2,888,472 2,888,472
Additions during the year - -
Deductions during the year - -
Closing Balance 2,888,472 2,888,472
III. Share Premium
Opening Balance 21,824,157 17,604,651
Additions during the year 7,370,346 4,219,506
Deductions during the year - -
Closing Balance 29,194,503 21,824,157

168
Schedules to Consolidated Balance Sheet
as at 31st March, 2024
As at As at
31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted
IV) Revenue and other Reserves
a) Investment Fluctuation Reserve
Opening Balance 2,095,800 377,800
Additions during the year - 1,718,000
Deductions during the year - -
Closing Balance 2,095,800 2,095,800
b) Special Reserve (u/s 36 (i) (viii) of i.tax act, 1961

Opening Balance 1,231,600 1,231,600

Additions during the year 245,000 -

Deductions during the year - -

Closing Balance 1,476,600 1,231,600

c) Other Reserve
Opening Balance 30,048,092 23,264,722
Additions during the year 10,984,290 8,501,370
Deductions during the year - (1,718,000)

Closing Balance 41,032,382 30,048,092

TOTAL ( I,II,III & IV) 120,825,934 97,931,629

SCHEDULE 3 - DEPOSITS

A I. Demand Deposits
i) From Banks 1,114,430 1,331,995
ii) From Others 147,116,556 138,594,708
TOTAL (I & ii) 148,230,986 139,926,703
II. Saving Bank Deposits 532,488,529 520,247,496
III. Term Deposits
i) From Banks 28,280,883 21,387,369
ii) From Others 638,631,960 538,710,223
TOTAL (i & ii) 666,912,843 560,097,592

TOTAL A (I+II+III) 1,347,632,358 1,220,271,791

B. I. Deposits of branches in India 1,347,632,358 1,220,271,791

II. Deposits of branches outside India - -
TOTAL B (I+II) 1,347,632,358 1,220,271,791

169
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedules to Consolidated Balance Sheet

as at 31st March, 2024

As at As at
31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted

SCHEDULE 4 - BORROWINGS
I. Borrowings in India
i) Reserve Bank of India - -

ii) Other Banks - -

iii) Unsecured Redeemable Debentures/Bonds (BASEL III for Tier I
28,810,000 28,810,000
& Tier II Capital)
iv) Other Institutions & Agencies 40,015 113,058

TOTAL ( i to iv ) 28,850,015 28,923,058

II. Borrowings outside India - -

GRAND TOTAL ( I & II ) 28,850,015 28,923,058

Secured borrowings included in I & II above NIL Nil

SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS

i) Bills Payable 3,826,531 2,985,297
ii) Inter Office Adjustments (Net) - -
iii) Interest Accrued on Non-cumulative deposits 237,195 289,481
iv) Deferred Tax Liability (Net) - -
v) Provision Against Standard Assets 4,313,990 5,460,829
vi) Other (Including Provisions) 38,258,463 102,232,208
TOTAL ( i to vi) 46,636,179 110,967,815

SCHEDULE 6 - CASH & BALANCES WITH RESERVE BANK OF INDIA

I. Cash in Hand (Including Foreign Currency Notes) 6,156,011 6,373,076

II. Balance with Reserve Bank of India
i) In Current Account 58,344,790 54,567,501
ii) In Other Accounts 8,000,000 17,000,000
TOTAL (I & II) 72,500,801 77,940,577

SCHEDULE 7 - BALANCE WITH BANKS AND MONEY AT CALL AND

SHORT NOTICE
I. In India
i) Balance with Banks
a) In Current Accounts 196,648 429,769
b) In Other Deposit Accounts 157,885 188,885
TOTAL (i) of (a & b) 354,533 618,654
ii) Money At Call and Short Notice
a) With Banks - 1,000,000
b) With Other Institutions 7,995,576 8,708,708
TOTAL (ii) of (a & b) 7,995,576 9,708,708
TOTAL (i & ii) 8,350,109 10,327,362

170
Schedules to Consolidated Balance Sheet
as at 31st March, 2024

As at As at
31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted
II. Outside India
i) In Current Accounts 530,052 227,636
ii) In Other Deposit Accounts - -
iii) Money at Call & Short Notice 583,835 493,020
TOTAL II of (i, ii & iii) 1,113,887 720,656

GRAND TOTAL (I&II) 9,463,996 11,048,018

SCHEDULE 8 - INVESTMENTS
I. Investments in India
i) Government Securities 299,205,666 291,558,271
ii) Other Approved Securities - -
iii) Shares (Pref. + Equity) 1,005,292 1,018,560
iv) Debentures and Bonds 7,566,743 7,145,437
v) Subsidiaries and/or Joint Ventures - -
vi) Sponsored Institutions 1,714,859 -
vii) Others :
a) Certificate of Deposit 39,260,750 47,754,843
b) Suitfile - -
c) Venture Capital 239 239
d) Commercial Paper - -
e) Security Receipts 248,675 326,663

TOTAL ( I ) 349,002,224 347,804,013

II. Investments Outside India in -

i) Government Securities Nil Nil
ii) Subsidiaries and/or Joint Ventures abroad Nil Nil
iii) Others investments Nil Nil

TOTAL II of (i-iii) - -

TOTAL (I & II) 349,002,224 347,804,013

III. Investments Category-Wise

i) Held to Maturity 289,830,796 267,522,866
ii) Held for Trading 6,421 11,726
iii) Available for Sale 59,165,007 80,269,421
TOTAL III of (i-iii) 349,002,224 347,804,013

171
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedules to Consolidated Balance Sheet

as at 31st March, 2024
As at As at
31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted

SCHEDULE 9 - ADVANCES

A i) Bills Purchased and Discounted 1,861,700 2,123,234

ii) Cash Credits, Overdrafts and Loans Repayable on Demand 267,194,553 252,219,885

iii) Term Loans 668,509,712 568,432,994

TOTAL (i to iii) 937,565,965 822,776,113

i) Secured by Tangible Assets (includes advances against book
B 648,958,882 566,072,549
debts)
ii) Covered by Bank/Govt. Guarantees 3,140,303 3,602,502

iii) Unsecured 285,466,780 253,101,062

TOTAL (i to iii) 937,565,965 822,776,113

C I. Advances in India

i) Priority Sector 352,044,234 253,934,033

ii) Public Sector 11,006,994 6,416,170

iii) Banks 3,414 39

iv) Others 574,511,323 562,425,871

TOTAL (i to iv) 937,565,965 822,776,113

II. Advances Outside India

i) Due from Banks NIL NIL

ii) Due from Others
(a) Bills purchased and discounted
NIL NIL
(b) Syndicated Loans
(c)Others

GRAND TOTAL ( I & II ) 937,565,965 822,776,113

SCHEDULE 10 - FIXED ASSETS

I. Premises

a) At cost as at 31st March of the preceding year 21,449,425 17,807,006

Additions during the year 432,942 3,759,443

21,882,367 21,566,449

Deductions during the year 194,125 117,024

21,688,242 21,449,425

Depreciation to date 3,297,120 2,934,324

Total (a) 18,391,122 18,515,101

172
Schedules to Consolidated Balance Sheet
as at 31st March, 2024
As at As at
31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted

b) Constructions work in progress 407,100 441,257

TOTAL (I) [ a+b ] 18,798,222 18,956,358

II. Other Fixed Assets (Including Furniture & Fixtures)

a) At cost as at 31st March of the preceding year 11,027,488 11,924,863

Additions during the year 1,864,544 (881,020)
12,892,032 11,043,843
Deductions during the year 92,031 16,330
12,800,001 11,027,513
Depreciation to date 14,033,082 12,327,568

TOTAL (II) (1,233,081) (1,300,055)

IIA. Leased Assets

a) At cost as at 31st March of the preceding year 5,281,128 3,297,956

Additions during the year - 1,983,172
5,281,128 5,281,128
Deductions during the year 7,812 -
5,273,316 5,281,128
Depreciation to date 348,857 251,872

TOTAL (IIA) 4,924,458 5,029,256

III. Capital Work in progress (Including Leased Assets) net of Provisions 87,898 31,964

GRAND TOTAL (I,II, IIA & III) 22,577,497 22,717,523

SCHEDULE 11 - OTHER ASSETS

I. Interest Accrued 7,948,147 6,992,882

II. Inter Office Adjustment (Net) 700,609 702,481

III. Tax paid in Advance/Tax Deducted at Source (Net of Provisions) 636,736 1,870,514

IV. Stationery and Stamps 51,679 42,769

V. Deferred Tax Asset (Net) 1,552,595 1,828,971

VI. Non-Banking Assets acquired in satisfaction of claims - -

VII. Others * 143,045,563 165,402,055

TOTAL ( I to VII ) 153,935,329 176,839,672

* Includes deposits placed with NABARD/SIDBI/NHB/RIDF/MUDRA amounting to Rs. 97258125 thousand

(Previous year Rs. 68072650 thousand)

173
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedules to Consolidated Balance Sheet

as at 31st March, 2024

SCHEDULE 12 - CONTINGENT LIABILITIES

I. Claims against the Bank not acknowledged as debts 3,592,693 2,446,709

II. Liability for partly paid investments - -

III. Liability on account of outstanding Forward Exchange Contracts 13,980,447 19,013,257

IV. Guarantees given on behalf of constituents:-

a) In India 22,754,491 21,964,418

b) Outside India 263,457 247,358

V. Acceptances, Endorsements & Other Obligations 5,056,171 5,926,586

VI. Other items for which the Bank is Contingently liable 2,801,484 2,739,353

TOTAL ( I to VI ) 48,448,743 52,337,681

174
Consolidated Profit & Loss Account
for the year ended at 31st March, 2024

YEAR ENDED YEAR ENDED

Schedule 31.03.2024 31.03.2023
` ‘000’ Omitted ` ‘000’ Omitted

I INCOME
Interest Earned 13 112,132,032 93,552,281
Other Income 14 8,376,732 7,652,417
TOTAL 120,508,764 101,204,698
II EXPENDITURE
Interest Expended 15 60,079,311 46,094,380
Operating Expenses 16 37,625,563 36,508,699
Provisions and Contingencies 5,104,807 6,615,753
TOTAL 102,809,681 89,218,832
III PROFIT
Consolidated Net Profit for the year 17,699,083 11,985,866
Share of earnings/loss in Associates (net) 13,162 (180,696)
Consolidated Net profit/(loss) for the year before deducting Minorities Interest 17,712,245 11,805,170
Less: Minorities Interest - -
Consolidated Net profit/(loss) for the year attributable to the group 17,712,245 11,805,170
Add: Brought forward consolidated profit/(loss) attributable to the group - -
Profit available for Appropriation 17,712,245 11,805,170
IV APPROPRIATIONS
TRANSFERED TO
i) Statutory Reserve 4,418,170 2,993,450
ii) Capital Reserve - -
iii) Revenue and Other Reserve 10,681,533 8,295,980
iv) Investment Fluctuation Reserve - -
v) Special Reserve 245,000 -
vi) Proposed Dividend 2,367,542 515,740
TOTAL 17,712,245 11,805,170
Principal Accounting Policies 17
Notes on Accounts 18
Earnings per Share (Basic/Diluted) 16.84 12.25
The schedules referred to above form an integral part of the Profit & Loss Account.
Baldev Prakash R. K. Chhibber Naba Kishore Sahoo Umesh Chandra Pandey Anil Kumar Goel Anand Kumar
Managing Director & CEO Director Director Director Director Director
DIN: 09421701 DIN: 08190084 DIN: 07654279 DIN: 01185085 DIN: 00672755 DIN: 03041018

Sudhir Gupta Shahla Ayoub Fayaz Ahmad Ganai Mohammad Shafi Mir
Executive Director Director Chief Financial Officer Company Secretary
DIN: 09614492 DIN: 09834993

Place : Srinagar
Dated: 4th May, 2024

In terms of our report of even annexed

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160
UDIN: 24541550BKAEUS9046 UDIN: 24089562BKCMZM9295 UDIN: 24080160BKCSJA6004

Place : Srinagar
Dated: 4th May, 2024

175
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedules to Consolidated Profit & Loss Account

for the year ended at 31st March, 2024

YEAR ENDED YEAR ENDED

31.03.2024 31.03.2023
` `000’ Omitted ` `000’ Omitted

SCHEDULE 13 - INTEREST EARNED

I. Interest/Discount on Advances/Bills 86,086,671 69,975,540

II. Income on Investments (Net of Amortization) 22,654,302 20,709,235

III. Interest on Balances with R.B.I and other Inter Bank Funds 367,187 941,712

IV. Others 3,023,872 1,925,794

TOTAL (I to IV) 112,132,032 93,552,281

SCHEDULE 14 - OTHER INCOME

I. Commission, Exchange & Brokerage 2,464,271 1,590,919

II. Profit /(Loss) on Sale of Investments (Net) 575,221 516,668

Profit on Sale of Investments 575,221 562,506

Less: Loss on sale of investments - (45,838)

III. Profit /(Loss) on revaluation of Investments (Net) 458,561 (125,277)

Profit on revaluation of Investments 514,705 -

Less: loss on revaluation of investments (56,144) (125,277)

IV. Profit/( Loss) on Sale of Land, Buildings & Other Assets (Net) 10,670 11,932

Profit on Sale of Land, Buildings & Other Assets 10,838 12,721

Less: Loss on Sale of Land, Buildings & Other Assets (168) (789)

V. Profit /(Loss) on Exchange Transactions (Net) 122,264 142,024

Profit on Exchange Transactions 123,645 143,195

Less: Loss on E/Transactions (1,381) (1,171)

Income earned by way of Dividends etc. from Subsidiaries, Companies and/

VI. - -
or Joint Venture abroad/in India
VII a) Lease finance Income
b) Lease management fee
- -
c) Overdue charges
d) Interest on lease rent receivables
VIII. Miscellaneous Income 4,745,745 5,516,151
TOTAL (I to VIII) 8,376,732 7,652,417
SCHEDULE 15 - INTEREST EXPENDED

I. Interest on Deposits 56,853,664 43,512,422

II. Interest on RBI/Inter-Bank Borrowings 375,672 364,795

III. Others 2,849,975 2,217,163

TOTAL (I to III) 60,079,311 46,094,380

176
Schedules to Consolidated Profit & Loss Account
for the year ended at 31st March, 2024

SCHEDULE 16 - OPERATING EXPENSES

I. Payments to and provisions for Employees 25,789,798 27,085,632

II. Rent, Taxes and Lighting 1,129,500 1,046,554

III. Printing and Stationery 125,194 97,822

IV. Advertisement and Publicity 115,760 51,323

V. (a) Depreciation on Bank’s Property other than Leased Assets 2,079,245 1,324,684

(b) Depreciation on Leased Assets 96,986 251,872

VI. Directors Fees, Allowances and Expenses 32,982 27,392

VII. Auditors Fees & Expenses (Including Branch Auditor’s fees & Expenses) 171,260 131,354

VIII. Law Charges 174,209 187,193

IX. Postage, Telegrams, Telephones etc. 53,646 49,637

X. Repairs and Maintenance 393,178 308,336

XI. Insurance 1,636,025 1,441,450

XII. Amortisation of Goodwill, if any - -

XII. Other Expenditure 5,827,780 4,505,450

TOTAL (I to XII) 37,625,563 36,508,699

177
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 17
"Principal Accounting Policies"
A. Overview
Jammu and Kashmir Bank (J&K Bank) is a Scheduled Commercial Bank and one of the oldest private sector banks in
India, incorporated in 1938. J&K Bank is listed on both NSE and BSE and has its Corporate Headquarters at Srinagar. The
Bank functions as a leading bank in the Union Territories of Jammu & Kashmir and Ladakh and is designated by Reserve
Bank of India as agency bank for carrying out banking business for the Government of Jammu & Kashmir and Ladakh.
J&K Bank caters to banking requirements of various customer segments which includes Business enterprises, employees
of government, semi-government and autonomous bodies, farmers, artisans, public sector organizations and corporate
clients. Group companies of the J&K Bank include JKBFSL (wholly owned subsidiary) and JK Grameen Bank (Associate
RRB). The Bank offers a wide range of retail credit products, including home finance, personal loans, education loan,
agriculture lending, trade credit and consumer credit and a number of unique financial products tailored to the needs of
various customer segments.

B. Basis of preparation of Financial Statements

The accompanying financial statements are prepared on historical cost basis, except as otherwise stated, following the
“Going Concern” concept and conform to the Generally Accepted Accounting Principles (GAAP) in India, applicable
statutory provisions and regulatory norms prescribed by the Reserve Bank of India (RBI), statutory guidelines of the
Banking Regulation Act, 1949, applicable mandatory Accounting Standards (AS)/Guidance Notes/pronouncements issued
by the Institute of Chartered Accountants of India (ICAI) and practices prevailing in the banking industry in India.
The financial statements have been prepared in accordance with requirements under the Third Schedule of the Banking
Regulation Act, 1949.

C. Use of Estimates
The preparation of financial statements requires the management to make estimates and assumptions that are considered
in the reported amount of assets and liabilities (including contingent liabilities) as on the date of financial statements
and the reported income and expenses for the reporting period. Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable.

D. Significant Accounting Policies

1. Revenue Recognition
1.1 Income and expenditure are accounted on accrual basis, unless otherwise stated.
1.2 Interest / Discount income from Non-Performing Assets (NPAs) including investments is recognized in the Profit
and Loss Account on realization basis, as per the prudential norms prescribed by RBI.
1.3 Partial recovery in Non-Performing Assets is appropriated first towards principal and thereafter towards interest.
1.4 Fee, commission (other than insurance commission & Government business), exchange income, locker rent,
insurance claims, dividend on shares and units in Mutual Fund and interest on refund of income tax are accounted
for on receipt basis.
1.5 Interest on overdue Term Deposits is provided at the rate of interest applicable to Savings Bank Deposits.
1.6 Unforeseen income/ expenses are accounted for in the year of receipt/ payment.
1.7 Stationery issued to branches has been considered as consumed.

2. Investments
Investments are accounted for in accordance with the extant RBI guidelines on investment classification and valuation,
as given below:

2.1 Classification:
Investments are classified into Held to Maturity (HTM), Available for Sale (AFS) and Held for Trading (HFT)
categories, in accordance with the guidelines issued by Reserve Bank of India. Disclosure of the investments under
the three categories mentioned above is made under six classifications viz.
i. Government Securities
ii. Other Approved Securities
iii. Shares
iv. Bonds and Debentures
v. Subsidiaries and Joint Ventures
vi. Others

2.2 Basis of classification:

i. Investments that the Bank intends to hold till maturity are categorized as “Held to Maturity (HTM)”.
ii. Investments that are held principally for resale within 90 days from the date of purchase are categorized as
“Held for Trading (HFT)”.
iii. Investments, which are not classified in above two categories, are classified as “Available for Sale (AFS)”.

178
Schedule 17
"Principal Accounting Policies"
iv. An investment is classified as HTM, HFT or AFS at the time of its acquisition. Subsequent shifting amongst
categories is done with the approval of the Board normally once in a year and in conformity with regulatory
guidelines.
v. Investments in subsidiaries and associates are classified as HTM.

2.3 Valuation:
i. Investments classified as “Held-to-Maturity” (HTM) category are carried at acquisition cost unless such
costs are higher than the face value, in which case, the premium is amortized over the term to maturity
using straight line method.
ii. The individual scrip’s in the “Available-for-Sale” category are marked to market at quarterly intervals. The
net depreciation under each of six classifications under which investments are presented in the balance
sheet is fully provided for, whereas the net appreciation under any of the aforesaid classifications is ignored.
iii. The individual scrip in the “held-for-trading” category is marked to market at weekly intervals and the net
depreciation under each of the six classifications under which investments are presented in the Balance
Sheet is accounted for in the Profit and Loss account and appreciation is ignored.
iv. The market value for the purpose of periodical valuation of investments, in case of quoted securities included
in “Available for Sale” and “Held for trading” categories is based on the prices declared by the Financial
Benchmarks India Pvt. Ltd. (FBIL) in accordance with RBI circular FMRD.DIRD.7/14.03.025/2017-18 dated
March 31, 2018. For securities whose prices are not published by FBIL, securities are revalued at market
prices available from the trades/quotes on the stock exchanges and prices declared by the Fixed Income
Money Market and Derivatives Association of India (FIMMDA).
In respect of unquoted securities, the procedure adopted is as below:

Category of Securities Value

Government of India Securities and State Govern- At rates put out by FIMMDA/PDAI/ Financial Benchmarks
ment Securities India Pvt. Ltd. (FBIL)
Other Approved Securities, Preference Shares, De- On yield to maturity (YTM) basis at the rate prescribed by
bentures and PSU Bonds FIMMDA/PDAI/FBIL with such mark ups as laid down
by RBI or FIMMDA/PDAI/FBIL
Equity Shares At Break-up value (without considering revaluation re-
serves) to be ascertained from the company’s latest
balance sheet. The date as on which the latest bal-
ance sheet is drawn up shall not precede the date
of valuation by more than 18 months. In case, the
latest balance sheet is not available, the shares shall
be valued at Re.1 per company.
Mutual Fund Units At latest re-purchase price declared by the Mutual Fund
in respect of each scheme. In case of funds with a
lock-in period or any other fund, where repurchase
price is not available, units shall be value at Net As-
set Value (NAV) of the scheme. If NAV is not avail-
able, these shall be valued at cost, till the end of the
lock-in period.
Treasury Bills and Commercial Papers At carrying cost
Certificate of deposits At carrying cost

v. Transfer of securities amongst categories is affected at the lower of acquisition cost/ book value/ market
value on the date of transfer and the depreciation, if any, on such shifting is fully provided for and the book
value of securities is changed accordingly.
vi. The transactions in all securities are recorded on a Settlement Date and cost is determined on the weighted
average cost method.
vii. Investments in subsidiary are valued at acquisition cost.
viii. Investments in J&K Grameen Bank/Sponsored Institutions are valued at carrying cost (i.e Book Value) as
per RBI Guidelines.
ix. The investment in security receipts obtained by way of sale of NPA to Asset Reconstruction Companies
(ARCs) is recognized at lower of Net Book Value (NBV) (i.e. Book value less provisions held), of the financial
asset and redemption value of the Security Receipt.

2.4 The depreciation in value of investments where interest/principal is in arrears is not set-off against the appreciation

179
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 17
"Principal Accounting Policies"
in respect of other performing securities. Such investments including Non-performing Non-SLR investments are
treated applying RBI prudential norms on NPA Classification and appropriate provisions are made as per RBI norms
and no income on such investments is recognized.
2.5 Profit or loss on sale of investments is taken to the Profit and Loss account. However, in case of profit on sale of
investments in “Held to Maturity” category, an equivalent amount of profit, net of taxes and the amount required
to be transferred to Statutory reserve, is appropriated to the “Capital Reserve Account”.
2.6 Broken period interest paid/received on debt instruments is treated as interest expense/income and is excluded
from cost/sale consideration.
2.7 Brokerage paid on securities purchased is charged to revenue account except for equity investment operations
where the same is added to the cost of purchase of investment.
2.8 Repurchase & Reverse repurchase transactions are accounted for in accordance with the extant RBI guidelines.
2.9 In accordance with RBI circular No. FMRD.DIRD.01/14.03.038/2018-19 dated July 24, 2018, the Bank has made
changes in accounting for Repo/ Reverse Repo transactions including Triparty Repo (Other than transactions under
the liquidity adjustment facility (LAF) with the RBI). Accordingly, the securities sold and purchased under Repo/
Reverse Repo are accounted for as collateralized lending and borrowing transactions. However, securities are
transferred as in the case of normal outright sale/purchase transactions and such movement of securities are
reflected using Repo/Reverse Repo accounts and contra entries. The above entries are reversed on the date of
maturity. Cost and revenue are accounted as interest expenditure/Income as the case may be. Balance in Repo
account is classified under schedule 4 (Borrowing) and balance in Reverse Repo account is classified under schedule
7 (Balance with Banks & money at call & short notice).
2.10 In respect of Non-Performing Securities, income is not recognized and appropriate provision is made for depreciation
in the value of such securities as per Reserve Bank of India guidelines.

3. Advances
3.1 Classification of Advances and Provisions thereof have been made as per the Income Recognition, Asset Classification
and Provisioning Norms formulated by the RBI viz., Standard, Sub-Standard, Doubtful and Loss Assets. Bank has
made provisions on Non-Performing Assets as per the prudential norms prescribed by the RBI as under:
Category of Assets Provision norms
Sub-Standard 15% on Secured Exposure
25% on Unsecured Exposure
20% on Unsecured Exposure in respect of Infrastructure loan accounts where certain
safeguards such as escrow accounts are available
Doubtful-I 25% on Secured
100% on Unsecured
Doubtful-II 40% on Secured
100% on Unsecured
Doubtful-III 100% on Secured
100% on Unsecured
Loss 100%

‘with effect from the quarter ended 31st December 2023 the bank shall maintain additional provisions @10% each in
respect of NPA BOS in sub-standard category (both secured/unsecured) and Doubtful -1 and Doubtful – 2 (secured
portion only) over and above the minimum provisions required as per the current IRAC norms.’

3.2 Advances are shown net of unrealized interest and provisions/ Technical write offs made in respect of non-
performing advances. Provisions on standard advances are reflected in Schedule 5 of the Balance Sheet under the
head “Other Liabilities & Provisions - Others” and are not considered for arriving at the Net NPAs.
3.3 Restructuring of Advances and provisioning thereof have been made as per RBI guidelines.
3.4 Amounts recovered against debts written off in earlier years are recognized as revenue in the year of recovery.
3.5 The Bank also makes additional provisions on specific non-performing assets.
3.6 Appropriation of recoveries in NPAs are made in order of priority as under:
i. Principal Due
ii. Charges, Costs, Commission etc.
iii. Unrealized Interest/ Interest

4. Floating Provisions
In accordance with the RBI guidelines, the Bank has an approved policy for creation and utilization of floating provisions
for advances. The quantum of floating provisions to be created is assessed at the end of each quarter. These provisions
are utilized only for contingencies under extraordinary circumstances specified in the policy with prior permission of
Reserve Bank of India.

180
Schedule 17
"Principal Accounting Policies"
5. Fixed Assets and Depreciation

5.1 Fixed Assets, other than premises, are carried at cost less accumulated depreciation and impairment, if any.
Freehold premises are carried at revalued amount, being fair value at the date of revaluation less accumulated
depreciation.
5.2 Cost includes cost of purchase, freight, duties, taxes and all expenditure such as site preparation, installation costs
and professional fees incurred on the asset before it is put-to-use. Subsequent expenditure(s) incurred on the
assets put-to-use are capitalized only when it increases the future benefits from such assets or their functioning
capability. The fixed assets are depreciated as per straight line method, considering residual value at 5% of original
cost, as per the provisions of Companies Act 2013 based on the useful life of the assets prescribed in Part C of the
Schedule II of the Companies Act 2013 as given hereunder:

Description of Fixed Assets Useful Life (Years)

Buildings (With RCC Frame Structure) 60
Buildings (Other than RCC Frame Structure) 30
Boundary Wall 5
Plant and Machinery 15
Furniture and Fixtures 10
Vehicles 8
Others (Including temporary structures etc.) 3

Depreciation on computers (including ATMs/CDMs) along with software, forming integral part of the computers is
computed at 33.33% on straight line method in terms of RBI guidelines issued vide letter no BP.1660/21.04.018/2001
dated 01.02.2001, taking residual value as Nil.
In compliance with Section 15(1) of Banking Regulation Act, 1949, the Bank write off the entire amount of intangible
assets.
Useful life of the mobile phones is considered to be 2 years and the depreciation is charged in straight line method
as per provisions of Companies Act 2013 with no residual value.
5.3 In respect of assets acquired during the year, depreciation is charged on proportionate basis for the number of days
the assets have been put-to-use during the year.
5.4 Premium paid for leasehold properties is amortized over the period of lease.
5.5 The Bank revalues freehold immovable assets every three years. The increase in Net Book Value of the asset due
to revaluation is credited to the Revaluation Reserve Account without routing through the Profit and Loss Account.
However, where such an increase is a reversal of any previous decrease arising on revaluation which has been
charged to profit and loss account, such increase is credited to profit and loss account to the extent that it offsets
the previously recorded decrease. A decrease in net book value arising on revaluation of fixed assets is charged to
profit and loss account except that, to the extent such a decrease is related to a previous increase on revaluation
that is included in Revaluation Reserve, it is charged against that earlier increase. Additional Depreciation on the
revalued asset is charged to the Profit and Loss Account and appropriated from the Revaluation Reserves to
General Reserve. The revalued asset is depreciated over the balance useful life of the asset as assessed at the time
of revaluation.
5.6 Assets costing less than Rs.1,000 each are charged off in the year of purchase.

6. Employee Benefits
6.1 Short Term Employee Benefits:
The undiscounted amounts of short-term employee benefits which are expected to be paid in exchange for the
services rendered by employees are recognized during the period when the employee renders the service.

6.2 Long Term Employee Benefits:

i. Defined Contribution Plan:
Provident Fund: Provident Fund is a defined contribution scheme as the bank pays fixed contribution at pre-
determined rates. The obligation of the Bank is limited to such fixed contribution. The contributions are charged
to profit and loss account. The Bank is paying matching contribution towards those employees who have not
opted for the pension.

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 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 17
"Principal Accounting Policies"
ii. Defined Benefit Plan
Gratuity
The Bank pays gratuity, a defined benefit plan, to vested employees on retirement or resignation or on death
while in employment or on termination of employment. The Bank makes contribution to recognized trust which
administers the funds on its own account or through insurance companies. Actuarial valuation of the gratuity
liability is determined by an independent actuary appointed by the Bank. Actuarial valuation of gratuity liability is
determined based on certain assumptions regarding rate of interest, salary growth, mortality and staff attrition
as per the projected unit credit method. The actuarial gains or losses arising during the year are recognized in
the profit and loss account.
Pension
The Bank provides for pension to all eligible employees. The Bank makes contribution to a trust which
administers the funds on its own account or through insurance companies. The plan provides for pension
payment including dearness relief on a monthly basis to these employees based on the respective employee’s
years of service with the Bank and applicable salary. Actuarial valuation of the pension liability is determined by
an independent actuary appointed by the Bank. Actuarial valuation of pension liability is determined based on
certain assumptions regarding rate of interest, salary growth, mortality and staff attrition as per the projected
unit credit method. The actuarial gains or losses arising during the year are recognized in the profit and loss
account. Employees covered by the pension plan are not eligible for employer’s contribution under the provident
fund plan.
The Bank also operates a New Pension Scheme (NPS) for all employees joining the Bank on or after 1st August,
2010 (Such new joinees not being entitled to become members of the existing pension scheme). As per the
scheme, these employees contribute 10% of their salary and the Bank contributes 14% of the employee’s salary.
The amount contributed by the Bank to NPS during the year is recognized in the profit and loss account.
Leave Salary
The Bank provides for compensated absence based on actuarial valuation conducted by an independent actuary,
appointed by the Bank.

7. Transactions involving Foreign Exchange

7.1 Foreign currency transactions are recorded on initial recognition in the reporting currency by applying to the
foreign currency amount the exchange rate between the reporting currency and the foreign currency on the date
of transaction.
7.2 Foreign currency monetary items are reported using the Foreign Exchange Dealers Association of India (FEDAI)
closing (spot/forward) rates.
7.3 Monetary Assets and Liabilities as on balance sheet date have been translated using closing rate as at year-end
announced by FEDAI.
7.4 Exchange difference arising on the settlement of monetary items at rates different from those at which they were
initially recorded is recognized as income or as an expense in the period in which they arise.
7.5 Outstanding foreign exchange spot and forward contracts held for trading are revalued at the exchange rates
notified by FEDAI for specified maturities and the resulting Profit or Loss is recognized in the Profit and Loss
Account.

8. Segment Reporting
The Bank recognizes the business segment as the primary reporting segment in accordance with the RBI guidelines
and in compliance with the Accounting Standard 17 issued by Institute of Chartered Accountants of India (ICAI).

9. Taxes on Income
Income tax expense is the aggregate amount of current tax and deferred tax expense incurred by the Bank. The
current tax expense and deferred tax expense are determined in accordance with the provisions of the Income Tax Act,
1961 and as per Accounting Standard 22- “Accounting for taxes on Income” respectively. Deferred Tax adjustments
comprises of changes in the deferred tax assets or liabilities during the year. Deferred tax assets and liabilities are
recognized by considering the impact of timing differences between taxable income and accounting income for the
current year and carry forward losses. Deferred tax assets and liabilities are measured using tax rates and tax laws that
have been enacted or substantively enacted at the balance sheet date. The impact of changes in deferred tax assets
and liabilities is recognized in the profit and loss account.

182
Schedule 17
"Principal Accounting Policies"
10. Provisions, Contingent Liabilities and Contingent Assets
10.1 In conformity with AS 29 – “Provisions, Contingent Liabilities and Contingent Assets” issued by the Institute of
Chartered Accountants of India, the Bank recognizes provisions only when it has a present obligation because
of a past event, and would result in a probable outflow of resources to settle the obligation and when a reliable
estimate of the amount of the obligation can be made.
10.2 No provision is recognized for
I. Any possible obligation that arises from past events and the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Bank; or
II. Any present obligation that arises from past events but is not recognized because:
• It is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; or
• A reliable estimate of the amount of obligation cannot be made.
Such obligations are recorded as Contingent Liabilities.
10.3 The Bank has made 100% provision for redemption against the accumulated reward points in respect of
standard credit card holders.
10.4 Contingent Assets are not recognized in the financial statements.

11. Impairment of Assets

Fixed assets are reviewed for impairment whenever events or changes in circumstances warrant that the carrying
amount of an asset may not be recoverable. Impairment to be recognized is measured by the amount by which the
carrying amount of the asset exceeds the fair value of the asset.

12. Share Issue Expenses

Share issue expenses are charged to the Share Premium account.

13. Earnings per Share

13.1 The Bank reports basic and diluted earnings per share in accordance with AS 20 – “Earnings per Share” issued
by the ICAI. Basic Earnings per Share are computed by dividing the Net Profit after Tax for the year attributable
to equity shareholders by the weighted average number of equity shares outstanding for the year.

13.2 Diluted Earnings per Share reflect the potential dilution that could occur if securities or other contracts to
issue equity shares were exercised or converted during the year. Diluted Earnings per Share are computed
using the weighted average number of equity shares and dilutive potential equity shares outstanding at year
end.

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 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
Jammu and Kashmir Bank Limited along with its Subsidiary and an Associate constitute the group which has been considered
in the preparation of consolidated financial statements as under:

% voting power held as at

Country of
Name of the Entity Relationship
Incorporation 31.03.2024 31.03.2023

JKB Financial Services Ltd. Subsidiary India 100% 100%

J&K Grameen Bank Associate India 35% 35%

Disclosures made by Parent Company

1. Regulatory Capital (
1.1 a) Composition of Regulatory Capital (Different for Consolidated)
(Amount in ` crore)
Sr.
Particulars CurrentYear PreviousYear
No.

i) Common Equity Tier 1 capital (CET 1) 11177.63 8542.47

ii) Additional Tier 1 capital 1000.00 1000.00

iii) Tier 1 capital (i + ii) 12177.63 9542.47
iv) Tier 2 capital 2096.46 2361.15
v) Total capital (Tier 1+Tier 2) 14274.09 11903.61
vi) Total Risk Weighted Assets (RWAs) 92578.18 77222.80
vii) CET 1 Ratio (CET 1 as a percentage of RWAs) 12.07% 11.06%
viii) Tier 1 Ratio (Tier 1 capital as a percentage of RWAs) 13.15% 12.36%
ix) Tier 2 Ratio (Tier 2 capital as a percentage of RWAs) 2.26% 3.06%
Capital to Risk Weighted Assets Ratio (CRAR) (TotalCapital as a percentage of
x) 15.42% 15.41%
RWAs)
xi) Leverage Ratio 7.60% 6.34%
Percentage of the shareholding of
xii) Nil Nil
a) Government of India
xiii) Amount of paid-up equity capital raised during the year 6.97 9.85
xiv) Amount of non-equity Tier 1 capital raised during the year Nil Nil

xv) Amount of non-equity Tier 2 capital raised during the year Nil 1021

Revaluation Reserve has been reckoned as CET1 capital at a discount of 55% in line with RBI guidelines.
b) Drawdown from Reserves(BST)
(Amount in ` crore)

S No. Reserves Amount Drawn Purpose

Depreciation on revalued portion of fixed assets amounting to ` 30.09crore

has been transferred to General Reserve. Further an amount of ` 0.18crore
1 Revaluation Reserve 30.27
has been transferred to general reserve on account of disposal of a
previously revalued asset.

1.2 During the FY 2022-23, the Bank raised equity capital through Employee Stock Purchase Scheme (JKBESPS-2023)
by allotting 7,00, 00,000 (Seven Crores) equity shares to the eligible employees. Statutory Central Auditors for FY
2022-23 issued a Qualified Opinion stating that the JKBESPS-2023 was not implemented in conformity with Para
2.3.1.7 of RBI Circular no RBI/2015-16/95 DBR.No.Dir.BC.10/13.03.00/2015-16 on “Loans and Advances Statutory and
Other Restrictions” dated July 1,2015 and Clause 21 of JKBESPS-2023. The Bank, however has maintained that
the JKBESPS-2023 was in conformity with the applicable laws/regulations. The Bank received the listing approval
in respect of the shares issued under JKBESPS 2023 from BSE and NSE on May 03, 2023 and October 20, 2023
respectively and trading approval from both the exchanges on November 9, 2023.The Bank has, therefore, reckoned
the amount of Rs.338.31 crores for computation of financial ratios/prudential limits concerning net worth/capital

184
Schedule 18
"Notes on Consolidated Accounts"
funds with effect from 31st December, 2023 in terms of independent examination and approval of the matter by the
Audit committee of the Board. (BST)
1.3 During financial year 2023-24, Bank has raised Equity Share Capital (including Share Premium) of `750 Crores
through Qualified Institutional Placement on 15 December, 2023. The Bank issued and allotted 6,97,02,602 fully
paid-up equity shares of Re. 1 each (face value) at a premium of `106.60 per share to the investors on discount of
4.49% (i.e. `5.06 per share) on floor price of `112.66 per Equity Share determined, as per the formula prescribed
under Regulations 176(1) of the SEBI ICDR Regulations. Due to change in accounting policy, para D(12) of schedule 17
the share issue expenses amounting to Rs. 6.00crores have been charged to share premium account.

2. Asset Liability Management:

a) Maturity pattern of certain items of assets and liabilities

Maturity Pattern of Assets and Liabilities as on 31032024 (Consolidated) (Amount in ` crore)

More
Over 3
31 days than2 Over 6
2 to 7 8 to 14 15 to 30 months Over 1 yr Over 3 yrs Over 5
Next Day upto 2 months months TOTAL
Days Days Days upto 6 upto 3 yrs upto 5 yrs yrs
Months upto 3 upto 1 yr
months
months

Deposits 695.47 4410.92 2440.79 3279.68 2570.57 3226.61 7362.24 13343.56 48854.52 32402.10 16176.78 134763.24

Borrowings 0.00 0.00 0.00 0.00 0.00 1000.00 0.00 500.00 0.00 1385.00 0 2885.00

Investments 4508.15 2.19 9.75 9.79 759.28 1670.91 744.34 4035.17 5762.14 4622.30 12776.20 34900.22

Advances 509.79 1137.53 1248.47 1810.30 1185.02 1788.04 3784.51 6690.74 45427.35 16292.16 13882.70 93756.60

Foreign
26.24 169.04 7.00 158.56 0.00 175.19 104.10 154.00 20.85 0.00 0.00 814.98
Currency Assets

Foreign
Currency 50.72 192.68 5.67 171.91 0.00 111.15 106.48 161.20 7.01 0.00 6.17 812.99
Liabilities

Note* Classification of assets and liabilities under the maturity buckets is based on the same estimates and assumptions as used by the bank for compiling the
Liquidity report submitted to the RBI

Classification of assets and liabilities under the maturity buckets is based on the same estimates and assumptions as used by
the bank for compiling the Liquidity Report submitted to the RBI.

b) Liquidity Coverage Ratio (LCR)

Liquidity Coverage Ratio (LCR) guidelines were implemented by the Banks with an objective to maintain adequate
level of unencumbered High Quality Liquid Assets (HQLAs) that can be converted into cash to meet its liquidity
needs for a time-horizon up to 30 calendar days under a significantly severe liquidity stress scenario.

Stock of High-Quality Liquid Assets (HQLAs)

LCR =
Total Net Cash Outflows over the next 30 calendar days

HQLA comprise of liquid assets that can be readily encashed or used as collateral to obtain cash in a range of stress
scenarios. There are two categories of assets included in the stock of HQLAs, viz. Level 1 and Level 2 (Level 2A and
Level 2B) assets. While Level 1 assets are with 0% haircut, Level 2A and Level 2B assets are with 15% and 50%
haircuts respectively. The Total Net Cash Outflows are the total expected cash outflows minus total expected cash
inflows for the subsequent 30 calendar days.

185
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
Quarter March 2024 Quarter December 2023 Quarter September 2023 Quarter June 2023 Quarter March 2023

Total Total Total Total Total Total Total Total Total Total
Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
value value value value value value value value value value
( Average ) (Average ) (Average ) (Average ) (Average ) (Average ) (Average ) (Average ) (Average ) (Average )

High Quality Liquid

Assets
Total High
Quality Liquid
1 29743.37 29724.46 29729.80 29710.44 28984.35 28967.23 29414.04 30055.91 30280.73 30259.92
Assets (
HQLA )
Cash Outflows

Retail deposits
and deposits
from small
2 92434.94 6981.69 89832.29 6595.51 88376.11 6489.80 88154.61 6613.96 85082.06 6267.89
business
customers, of
which

(i) Stable deposits 45235.86 2261.78 47698.84 2382.16 46956.28 2347.81 46848.67 2391.84 46278.27 2313.95

Less stable
(ii) 47199.08 4719.91 42133.45 4213.35 41419.82 4141.98 41305.94 4222.12 38803.78 3953.95
deposits

Unsecured
wholesale
3 21135.25 11447.50 18060.50 10124.42 19436.75 10621.40 20897.89 10183.47 19758.50 9495.77
funding ,of
which

Operational
(i) Deposits (all 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
counterparties)

Non
Operational
(ii) 21135.25 11447.50 18060.50 10124.42 19436.75 10621.40 20897.89 10183.47 19758.50 9495.77
deposits ( all
counterparties)

Unsecured
(iii) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
debt

Secured
4 Wholesale 0 0 0.00 0.00 0.00 0.00 0.00 0.00 11.19 0.00
funding
Additional
5 requirements 79.11 79.11 100.01 100.01 66.12 66.12 76.00 79.73 0.86 0.86
of which

Outflows
related to
derivative
(i) 79.11 79.11 100.01 100.01 66.12 66.12 76.00 79.73 0.86 0.86
exposure and
other collateral
requirements

outflows
related to loss
(ii) 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
of funding on
debt products

credit and
(iii) liquidity 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
facilities
Other
contractual
6 7332.07 562.68 6879.07 517.31 9153.76 785.45 7379.02 678.13 6957.00 598.56
funding
Obligations
Other
contingent
7 5221.12 204.72 5230.64 205.00 5276.94 206.39 4527.55 175.18 3628.74 137.65
funding
Obligations

186
Schedule 18
"Notes on Consolidated Accounts"

Quarter March 2024 Quarter December 2023 Quarter September 2023 Quarter June 2023 Quarter March 2023

Total Total Total Total Total Total Total Total Total Total
Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
value value value value value value value value value value
( Average ) (Average ) (Average ) (Average ) (Average ) (Average ) (Average ) (Average ) (Average ) (Average )

Total cash
8 126284.49 19357.70 120102.51 17542.25 122309.69 18169.16 121035.07 17730.47 115439.59 16501.99
outflows

Cash Inflows

secured
9 Lending (e.g. 0.00 0.00 0.00 0.00 0.00 0.00 5346.43 0.00 0.00 0.00
reverse repo)
Inflows
from fully
10 692.85 355.95 665.48 351.53 634.09 359.97 1662.75 867.88 2397.04 1227.17
performing
exposure
Other cash
11 190.19 95.09 455.33 227.67 126.50 63.94 675.75 346.75 655.49 326.66
inflows
Total cash
12 883.04 451.04 1120.81 579.20 62.59 423.91 7684.94 1214.63 3052.52 1553.83
inflows

TOTAL HQLA 29743.37 29724.46 29729.80 29710.44 28984.35 28967.23 29414.04 30055.91 30280.73 30259.92

Total Net Cash

126284.49 19357.70 118981.70 16963.05 122247.10 17745.25 113350.14 16515.84 112387.07 14948.17
Outflows

Liquidity
Coverage ratio 157.80% 175.15% 163.24% 181.98% 202.43%
(%)

In accordance with RBI guidelines vide circular no. RBI/2014-15/529 DBR. No. BP.BC.80/21.06.201/2014-15 dated 31st March 2015, average weighted and
unweighted amounts have been calculated taking simple daily average. We have considered 48 data points for the quarter March 2024.

Bank’s LCR was at 157.80% based on daily average of past three months (Q4 FY23-24). The position remained above the minimum regulatory requirement of
100%. Average HQLA held during the quarter was Rs 29743.37 Cr which were mostly in the form of level 1 assets. The weighted average total net cash outflows
were to the tune of Rs 18824.66 Cr.

Liquidity Management in the Bank is driven by RBI guidelines and Bank’s ALM Policy. ALCO has been empowered by the Bank’s Board to formulate the funding
strategies to ensure that the funding sources are well diversified and is consistent with the operational requirements of the Bank. In addition to daily / monthly
LCR reporting, Bank also prepares daily Structural Liquidity Statement to assess the liquidity needs of the Bank on an ongoing basis.

c) Net Stable Funding Ratio (NSFR)

Net Stable Funding Ratio (NSFR) guidelines ensure reduction in funding risk over a longer time horizon by requiring
banks to fund their activities with sufficiently stable sources of funding in order to mitigate the risk of future funding
stress. The NSFR is defined as the amount of Available Stable Funding relative to the amount of Required Stable
Funding.

Bank’s NSFR comes to 169% as at the end of the quarter Q4 (FY 2023-24) and is above the minimum regulatory
requirement of 100%. The Available Stable Funding (ASF) as on 31.03.2024 stood at Rs. 136076.41 crores and amount
for Required Stable Funding (RSF) as on 31.03.2024 was Rs 80335 crores.
The Available Stable Funding (ASF) is primarily driven by the total regulatory Capital as per Basel III capital adequacy
guidelines stipulated by RBI and the deposits from retail customers, small business customers and non-financial
corporate customers.
Under the Required Stable Funding (RSF).the primary drivers are unencumbered performing loans with residual
maturities of one year or more.

187
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
The following table contains the unweighted and weighted values of the NSFR components.

Statement of NSFR BLR 7

Name of the Bank Jammu & Kashmir Bank
Statement for the Quarter Ending Mar-24
Unweighted Weighted
Associated
S.No. Items Amount Amount
ASF factors
(Rs. Crore) (Rs. Crore)

A. Components of ASF category (Liability Categories)

Total regulatory capital (excluding Tier 2 instruments with residual

I 1.00 14755.86 14755.86
maturity of less than one year)
Other capital instruments with effective residual maturity of one year or
II 1.00 0.00 0.00
more

III Other liabilities with effective residual maturity of one year or more 1.00 12233.41 12233.41

Stable non-maturity (demand) deposits and term deposits with residual

IV maturity of less than one year provided by retail and small business 0.95 41337.38 39270.51
customers

Less stable non-maturity deposits and term deposits with residual maturity
V 0.90 73568.37 66211.54
of less than one year provided by retail and small business customers

Funding with residual maturity of less than one year provided by non-
VI 0.50 816.86 408.43
financial corporate customers

VII Operational deposits 0.50 0.00 0.00

Funding with residual maturity of less than one year from sovereigns,
VIII 0.50 6613.34 3306.67
PSEs, and multilateral and national development banks

Other funding with residual maturity between six months and less than one
IX year not included in the above categories, including funding provided by 0.50 502.00 251.00
central banks and financial institutions

All other liabilities and equity not included in the above categories,
X including liabilities without a stated maturity (with a specific treatment for 0.00 562.06 0.00
deferred tax liabilities and minority interests)

NSFR derivative liabilities net of NSFR derivative assets if NSFR derivative

XI 0.00 0.00 0.00
liabilities are greater than NSFR derivative assets

“Trade date” payables arising from purchases of financial instruments,

XII 0.00 0.00 0.00
foreign currencies

B. Total Available Stable Funding 150429.24 136477.38

Un-weighted Weighted
Associated
C. Components of RSF category Amount Amount
RSF Factor
(Rs. Crore) (Rs. Crore)
I Coins and banknotes 0.00 615.60 0.00

II Cash Reserve Ratio (CRR) including excess CRR 0.00 5034.92 0.00

III All claims on RBI with residual maturities of less than six months 0.00 800.00 0.00

“Trade date” receivables arising from sales of financial instruments,

IV 0.00 0.00 0.00
foreign currencies and commodities.

Unencumbered Level 1 assets, excluding coins, banknotes, CRR and SLR

V 0.05 0.00 0.00
Securities

VI Unencumbered SLR Securities 0.05 29816.11 1490.81

188
Schedule 18
"Notes on Consolidated Accounts"
Unencumbered loans to financial institutions with residual maturities of
less than six months, where the loan is secured against Level 1 assets as
VII defined in LCR circular dated June 9, 2014 and various amendments as 0.10 0.00 0.00
indicated in the text of the circular, and where the bank has the ability to
freely rehypothecate the received collateral for the life of the loan
All other ‘standard’ unencumbered loans to financial institutions with
VIII residual maturities of less than six months not included in the above 0.15 799.56 119.93
categories
IX Unencumbered Level 2A assets 0.15 169.28 25.39

X Unencumbered Level 2B assets 0.50 1.60 0.80

HQLA encumbered for a period of six months or more and less than one
XI 0.50 0.00 0.00
year

‘Standard’ Loans to financial institutions and central banks with residual

XII 0.50 0.00 0.00
maturities between six months and less than one year

XIII Deposits held at other financial institutions for operational purposes 0.50 68.67 34.33

All other assets not included in the above categories with residual maturity
of less than one year, including ‘standard’ loans to non-financial corporate
XIV 0.50 44762.94 22381.47
clients, to retail and small business customers, and ‘standard’ loans to
sovereigns and PSEs

Unencumbered ‘standard’ residential mortgages with a residual maturity

XV of one year or more and assigned the minimum risk weight under the 0.65 6828.73 4438.67
Standardised Approach

Other unencumbered ‘standard’ loans not included in the above categories,

excluding loans to financial institutions, with a residual maturity of one
XVI 0.65 10969.87 7130.42
year or more and with a risk weight of less than or equal to 35% under the
Standardised Approach

Cash, securities or other assets posted as initial margin for derivative

XVII contracts and cash or other assets provided to contribute to the default 0.85 133.68 113.62
fund of a CCP

Other unencumbered performing loans with risk weights greater than

XVIII 35% under the Standardised Approach and residual maturities of one 0.85 32836.16 27910.74
year or more, excluding loans to financial institutions

Unencumbered securities that are not in default and do not qualify as

XIX HQLA with a remaining maturity of one year or more and exchange- 0.85 546.21 464.28
traded equities

XX Physical traded commodities, including gold 0.85 0.00 0.00

XXI All assets that are encumbered for a period of one year or more 1.00 0.00 0.00

NSFR derivative assets net of NSFR derivative liabilities if NSFR

XXII 1.00 10.41 10.41
derivative assets are greater than NSFR derivative liabilities

XXIII 5% of derivative liabilities 1.00 0.22 0.22

All other assets not included in the above categories, including non-
performing loans, loans to financial institutions with a residual maturity
XXIV of one year or more, non-exchange-traded equities, fixed assets, items 1.00 14386.96 14386.96
deducted from regulatory capital, retained interest, insurance assets,
subsidiary interests and defaulted securities

All restructured ‘standard’ loans which attract higher risk weight and
XXV 1.00 591.63 591.63
additional provision

D. Required Stable Funding – On Balance Sheet Assets [I to xxv] 148370.97 79098.90

189
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
E. Off-Balance Sheet Assets

5% of the
Irrevocable and conditionally revocable credit and liquidity facilities to currently
I 8937.19 446.86
any client undrawn
portion
5% of the
Other contingent funding obligations, including products and instruments currently
II 5198.14 259.91
(a) + (b) + (c) undrawn
portion

5% of the
currently
(a) Unconditionally revocable credit and liquidity facilities 5198.14 259.91
undrawn
portion
3% of the
Trade finance-related obligations (including guarantees and letters of currently
(b) 0.00 0.00
credit) undrawn
portion

3% of the
currently
( c) Guarantees and letters of credit unrelated to trade finance obligations 0.00 0.00
undrawn
portion

III Non-contractual obligations (a) + (b) + (c) 0.00

potential requests for debt repurchases of the bank’s own debt or that of
(a) related conduits, securities investment vehicles and other such financing 0.05 0.00 0.00
facilities

structured products where customers anticipate ready marketability,

(b) 0.05 0.00 0.00
such as adjustable rate notes and variable rate demand notes (VRDNs)

managed funds that are marketed with the objective of maintaining a

( c) 0.05 0.00 0.00
stable value

F. Required Stable Funding – Off Balance Sheet Items (I)+(II)+(III) 605.88

G. Total Required Stable Funding (D+F) 79805.66

H. NSFR (B / G) 171.01%

As per the extant RBI Guidelines, the banks are required to make Pillar 3 disclosures including Leverage Ratio, Liquidity
Coverage Ratio and Net Stable funding ratio under the BASEL III Framework. Accordingly, these disclosures are being made
available on the Bank’s website i.e. www.jkbank.com. These disclosures have not been subjected to audit or review by the
Statutory Central Auditors of the Bank.

190
Schedule 18
"Notes on Consolidated Accounts"

3. Investments Treasury)
a) Composition of Investment Portfolio

As at 31st March,2024 (Amount in crore) fferent for consolidated)

Investments in India Investments outside India
Govern-
ment
Subsidiar- Total
Particulars Other Total securities Subsidiaries
Government Debentures ies and/ Investments Total
Approved Shares Others investments (includ- and/or joint Others
Securities and Bonds or joint outside Investments
Securities in India ing local ventures
ventures India
authori-
ties)

Held to Maturity

Gross 28811.5937 0 0 0 0 0 28811.5937 0 0 0 0 0

Less: Provision
for non-
performing 0 0 0 0 0 0 0.0000 0 0 0 0 0
investments
(NPI)

Net 28811.5937 0 0 0 0 0 28811.5937 0 0 0 0 0

Available for
0 0 0 0 0
Sale

Gross 1108.9729 0 0 1141.8730 0 4127.5777 6933.6195 0 0 0 0 0

Less: Provision
for depreciation 0 0 455.3192 385.1987 0 176.6113 1017.1292 0 0 0 0 0
and NPI

Net 1108.9729 0 99.8767 756.6743 0 3950.9664 5916.4903 0 0 0 0 0

Held for Trading 0 0 0 0 0 0 0

Gross 0 0 0.6525 0 0 0 0.6525 0 0 0 0 0

Less: Provision
for depreciation 0 0 0.0104 0 0 0 0.0104 0 0 0 0 0
and NPI

Net 0 0 0.6421 0 0 0 0.6421 0 0 0 0 0

Total
29920.5666 0 555.8484 1141.8730 0 4127.5777 35745.8657 0 0 0 0 0
Investments

Less: Provision
for non-
0 0 453.4902 384.4227 0 52.7887 890.7016 0 0 0 0 0
performing
investments

Less: Provision
for depreciation 0 0 455.3192 385.1987 0 176.6113 1017.1292 0 0 0 0 0
and NPI

Net 29920.5666 0.0000 100.5292 756.6743 0.0000 3950.9664 34728.7365 0 0 0 0 0

191
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
As at 31st March, 2023 (Amount in crore)

Investments in India Investments outside India

Particulars Government Total Total

Subsidiaries Total Subsidiaries Investments Investments
Other securities
Government Debenturesand and/or joint investments and/or joint outside
Approved Shares Others (including local Others
Securities Bonds ventures in India ventures
Securities authorities) India

Held to Maturity

Gross 26752.29 0 0 0 0 0 26752.29 0 0 0 0 0

Less: Provision for non-

0 0 0 0 0 0 0 0 0 0 0 0
performing investments (NPI)

Net 26752.29 0 0 0 0 0 26752.29 0 0 0 0 0

Available for Sale

Gross 2403.54 0 573.46 1013.96 0 4986.13 8977.09 0 0 0 0 0

Less: Provision for depreciation

0 0 472.78 299.42 0 177.95 950.15 0 0 0 0 0
and NPI

Net 2403.54 0 100.68 714.54 0 4808.18 8026.94 0 0 0 0 0

Held for Trading

Gross 0 0 1.20 0 0 0 1.20 0 0 0 0 0

Less: Provision for depreciation

0 0 0.03 0 0 0 0.03 0 0 0 0 0
and NPI

Net 0 0 1.17 0 0 0 1.17 0 0 0 0 0

Total Investments 29155.83 0 574.66 1013.96 0 4986.13 35730.58 0 0 0 0 0

Less: Provision for non-

0 0 467.05 294.98 0 48.24 810.27 0 0 0 0 0
performing investments

Less: Provision for depreciation

0 0 472.81 299.42 0 177.95 950.18 0 0 0 0 0
and NPI

Net 29155.83 0 101.85 714.54 0 4808.18 34780.40 0 0 0 0 0

b) Movement of Provisions for Depreciation and Investment Fluctuation Reserve (Amount in ` crore)
Particulars Current Year Previous Year

i) Movement of provisions held towards depreciation on investments

a) Opening balance
176.83 84.12
b) Add: Provisions made during the year
4.67 97.63
c) Less: Write off / write back of excess provisions during the year
55.07 4.92
d) Closing balance
126.43 176.83
ii) Movement of Investment Fluctuation Reserve (IFR)
a) Opening balance
209.58 37.78
b) Add: Amount transferred during the year
0.00 171.80
c) Less: Drawdown
0.00 0.00
d) Closing balance
209.58 209.58
iii) Closing balance in IFR as a percentage of closing balance of investments in Available for
Sale (AFS) and Held for Trade (HFT)/Current category 3.54 2.61

192
Schedule 18
"Notes on Consolidated Accounts"
c) Sale and Transfers to/from Held to Maturity (HTM) Category (Treasury )
The value of sale and transfer of securities to/from HTM Category (excluding permitted transfers) has not exceeded
5% of the book value of investments held in HTM category at the beginning of the year.

d) Non-SLR Investment Portfolio (Treasury )

i) Non-performing non-SLR investments (Amount in ` crore)
Extent of Below
Extent of Private Extent of unrated Extent of unlisted
Sn. Issuer Amount Investment Grade
Placement Securities* Securities*
securities*
1 2 3 4 5 6 7
Current Previous Current Previous Current Previous Current Previous Current Previous
Particulars
Year Year Year Year Year Year Year Year Year Year
a) PSUs 119.32 69.31 119.32 69.31 - - -

b) Fis (incl. NBFC’s AIFI’S) 1447.30 1423.84 652.49 712.95 114.33 115.00 - -

c) Banks (incl. CD’s) 3211.93 4094.34 0.00 0.00 0.00 0.00 - -

Private Corporates
d) 893.51 824.89 318.34 279.93 216.47 177.44 23.03 23.03 23.03 23.03
(incl. CP’s)

Subsidiaries/Joint
e) 0 0 - - - - - -
Ventures
f) Others (SRs) 153.24 162.38 - - - - -
Total (A) 5825.29 6574.76 1090.15 1062.19 330.80 292.44 23.03 23.03 23.03 23.03
Less: Provision held towards
g) depreciation/NPI/ Interest 1017.13 950.18 - - - - - -
Capitalized (B)

Total (A-B) 4808.17 5624.58 1090.15 1062.19 330.80 292.44 23.03 23.03 23.03 23.03

*Investments in Equity, Equity Oriented Mutual Funds, Venture Capital, Rated Assets Backed Securities, Central and State
Government Securities are not segregated under these categories as these are exempt from rating/listing guidelines.
**Investments in Subsidiaries/Joint Ventures have not been segregated into various categories as these are not covered
under relevant RBI Guidelines.
*** Excludes floating provision of `2.76 Crores

e) Repo transactions (in face value terms) (Amount in ` crore)

Minimum
Maximum Daily average
outstanding Outstanding as
outstanding outstanding
during the on March 31
during the year during the year
year

i) Securities sold under repo

a) Government securities 500.00 500.00 4.11 0.00
b) Corporate debt securities 0.00 0.00 0.00 0.00
c) Any other securities 0.00 0.00 0.00 0.00

ii) Securities purchased under reverse repo

a) Government securities 1200 1700.00 51.50 0.00
b) Corporate debt securities 0.00 0.00 0.00 0.00
c) Any other securities 0.00 0.00 0.00 0.00

193
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
f) Government Security Lending (GSL) transactions (in market value terms) Treasury
FY 2023-24
Minimum Daily Average
Maximum Outstanding
outstanding outstanding
Particulars outstanding as on 31st
during the during the
during the year March,2024
year year

a) Securities lent through GSL transactions 0.00 0.00 0.00 0.00

b) Securities borrowed through GSL transactions 0.00 0.00 0.00 0.00

c) Securities placed as collateral under GSL transactions 0.00 0.00 0.00 0.00

d) Securities received as collateral under GSL Transactions 0.00 0.00 0.00 0.00

FY 2022-23

Minimum Daily Average

Maximum Outstanding
outstanding outstanding
Particulars outstanding as on 31st
during the during the
during the year March,2023
year year

a) Securities lent through GSL transactions 0.00 0.00 0.00 0.00

b) Securities borrowed through GSL transactions 0.00 0.00 0.00 0.00

c) Securities placed as collateral under GSL transactions 0.00 0.00 0.00 0.00

d) Securities received as collateral under GSL Transactions 0.00 0.00 0.00 0.00

g) Investments include `217.97crores in J&K Grameen Bank, Sponsored institution of the Bank. The Bank had made a
prudential provision of `36.92crores in financial year 2020-21 as net worth of J&K Grameen Bank had eroded due
to continuing loses and there was a permanent diminution in carrying cost of investment. However, to bring the
investment valuation inline with the provision of RBI Master Direction on classification, valuation and operation of
Investment Portfolio of Commercial Banks dated August 25, 2021 (updated as on December 8th 2022), the bank has
reversed the provision in the current year.
The Bank has made investments of Rs. 71.56 crore on 18.09.2023 in J&K Grameen Bank as application money for
which shares were allotted and taken in share account on 18.03.2024. The Bank had made additional investment
of Rs. 100.73 crores on 28.04.2022 in J&K Grameen Bank as application money for which shares were allotted and
taken in account on 09.06.2023.

h) Floating Provisions (Investments) (Amount In Crores)

Particulars Current Year Previous Year

Opening balance 2.76 2.76

Additions made during the year 0.00 0.00

Utilization made during the year 0.00 0.00

Closing Balance 2.76 2.76

194
Schedule 18
"Notes on Consolidated Accounts"

4. Asset Quality (BST )

Classification of advances and provisions held
FY 2023-24 (01.04.2023-31.03.2024) PREVIOUS YEAR (01.04.2022-31.03.2023)

Standard Non-Performing Total Standard Non-Performing Total

PARTICULARS
Total Non- Total Non-
Total Standard Total Standard
Sub standard Doubtful Loss Performing Sub standard Doubtful Loss Performing
Advances Advances
Advances Advances
Gross Standard Advances and NPAs

Opening Balance 80951.21 787.82 3434.83 981.78 5204.43 86155.64 68721.92 879.77 4206.68 1434.08 6520.54 75242.46

Add: Additions during the year 1111.62 7446.61

Less: Reductions during the year* 2359.86 8762.72

Closing balance 93025.66 426.74 2750.82 778.64 3956.19 96981.86 80951.21 787.82 3434.83 981.78 5204.43 86155.64

*Reductions in Gross NPAs due to: 882.45 1263.05 214.35 2359.86 6126.96 2065.89 569.86 8762.72

i) Upgradation 903.23 6448.58

ii) Recoveries (excluding recoveries from upgraded accounts) 843.95 1276.98

iii) Technical/ Prudential Write-offs

16
506.86 329.61

iv) Write-offs other than those under (iii) above 22.60 475.81

e) Due to Compromise/ settlement 83.23 231.72

e) Interest Reversal 0.00 0.02

Provisions (excluding Floating Provisions)

Opening balance of provisions held 424.78* 134.15 2642.06 981.78 3757.99 4304.07 482.85 142.40 3108.85 1434.08 4685.33 5168.18

Add: Fresh provisions made during the year -72.73 -12.52

Less: Excess provision reversed/ Write-off loans 528.90 914.82

Closing balance of provisions held 431.40 115.04 2262.68 778.64 3156.36 424.78* 134.15 2642.06 981.78 3757.99
*Recasted
Net NPAs17
Opening Balance 641.93 692.31 0.00 1334.24 733.32 1016.78 0.00 1750.10

Add: Fresh additions during the year 1184.35 7459.13

Less: Reductions during the year 1830.96 7847.90

Closing Balance *** 311.33 425.52 0.00 736.84 641.93 692.31 0.00 1334.24

*** Closing Balance has been arrived after subtracting ICAP of Rs 3.52 Cr (Rs 43.79 as on 31.12.2023 and Rs 40.27 cr on 31.03.2024) and adding ECGC/CGTMSE of Rs 1.92 cr (Rs 20.79 Cr as on 31.12.2023 and Rs 22.72 Cr as on 31.03.2024)

Floating Provisions

Opening Balance 124.48 13.11

Add: Additional provisions made during the year 0.00 111.37

Less: Amount drawn down during the year **** 0.00 0.00

Closing balance of floating provisions 124.48 124.48

Technical write-offs and the recoveries made thereon

Opening balance of Technical/ Prudential written-off accounts 4461.84 4596.59

Add: Technical/ Prudential write-offs during the year 506.86 329.61

Less: Recoveries made from previously technical/ prudential written-off

173.74 464.37
accounts during the year

Closing balance 4794.96 4461.84

195
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
Ratios (BST) Current Year Previous Year

Gross NPA to Gross Advances 4.08% 6.04%

Net NPA to Net Advances 0.79% 1.62%

Provision coverage ratio 91.58% 86.20%

a) Sector-wise Advances and Gross NPAs (Amount in ` crore) APM )

Current Year Previous Year

Percentage Percentage
Sector of Gross of Gross
S.No. Outstanding Outstanding
Gross NPAs to Gross NPAs
Total Total
NPAs Total Ad- NPAs to Total
Advances Advances
vances in Advances in
that Sector that Sector

i) Priority Sector

1 Agriculture & Allied Activities 9133.80 426.55 4.67 9183.74 672.39 7.32
Advances to Industries sector eligible as
2 3918.68 249.79 6.37 2769.80 265.26 9.58
priority sector lending
2.a Manufacturing 3866.73 248.42 6.42 2723.03 263.01 9.66
3 Services 17346.96 668.81 3.86 9001.79 366.91 4.08
3.a Services 7485.44 263.92 3.53 3289.44 223.66 6.80
3.b Trade 9438.58 404.89 4.29 5412.31 143.25 2.65

4 Personal Loans 5673.58 44.98 0.79 5070.84 40.76 0.80

4.a Personal 5056.39 38.66 0.76 4618.74 34.16 0.74
4.b Micro-credit 617.19 6.32 1.02 452.10 6.60 1.46

Sub-Total (i) 36073.02 1390.13 3.85 26026.17 1345.32 5.17

ii) Non-Priority Sector  

1 Agriculture & Allied Activities 287.03 0.05 0.02 686.81 0.03 0.00
2 Industry 11460.98 656.47 5.73 11206.84 1162.25 10.37
2.a Manufacturing 3697.25 442.58 11.97 5097.37 721.64 14.16
2.b Infrastructure 7760.60 211.75 2.73 6095.06 437.27 7.17
3 Services 15661.45 1641.89 10.48 19925.56 2416.48 12.13
3.a Trade 2091.41 417.09 19.94 5362.31 764.74 14.26
3.b Financial Market 10867.30 625.24 5.75 8478.11 684.94 8.08

4 Personal loans 33499.38 267.66 0.80 28310.34 280.35 0.99

4.a personal 31952.92 267.00 0.84 27055.51 279.14 1.03

Sub-Total (ii) 60908.85 2566.07 4.21 60129.54 3859.11 6.42

Total (i + ii) 96981.86 3956.19 4.08 86155.72 5204.43 6.04
Sub sectors have been disclosed where the outstanding advances exceeds 10% of the outstanding total advances to that sector.

b) Restructuring of advances in terms of RBI Circular DBR.No.BP.BC.45/21.04.048/2018-19 dated 7th June 2019. In terms of RBI Circular
DBR No. BP. BC 45/21.04.048/2018-19 dated June 7, 2019 on Prudential Framework for Resolution of Stressed Assets, Bank has not
made additional provisions for the quarter ended March 31 2024 as the existing provisions are adequate to take care of the NPAs
as detailed below (Total provision as on March 31, 2024 is Rs. 27.24 Crores):

196
Schedule 18
"Notes on Consolidated Accounts"
(Amounts in ` crore)
Provision held as
Amount of loans Amount of loans Amount of loans as Provisions held as Additional
on 31.03.2024
impacted by RBI to be classified as on 31.03.2024 out on 31.03.2023 provision made
Circular NPA of (b) classified as during the year
NPA ended 31.03.2024
(a) (b) (c) (d) (e)
(f)

27.24 27.24 27.24 27.24 0.00 27.24

c) Divergence in asset classification and provisioning: (BST )

No disclosure on divergence in asset classification and provisioning for NPAs is required with respect to RBI’s
supervisory process for the year ended March 31, 2023, based on the conditions mentioned in RBI circular No. DBR.
BP.BC.No.31/21.04.018/2018-19 dated 1st April, 2019.
e) Disclosure of transfer of loan accounts (SMAs & NPAs) in terms of RBI Circular No.DOR.STR.REC.51/21.04.048/2021-
22 dated 24th September 2021, the details of loans transferred/acquired (Loan not in default) during the year Period
01-04-2023 to 31-03-2024: (Credit Monitoring & IAPM)
i) NPA accounts transferred during the period 01.04.2023 to 31.03.2024:
The details of the Non-Performing Assets transferred during the period 01.04.2023 to 31.03.2024 are given below:
(Amount in ` crore)
Current Year Previous Year
S
Particulars
No To To permitted To other To permitted To other
To ARCs
ARCs transferees transferees transferees transferees
a. No of accounts Nil Nil Nil 3 Nil 1
Aggregate principal outstanding of
b. NA NA NA 562.76 NA 188.11
loans transferred
Weighted average residual tenor of the
c. NA NA NA 2.68 NA 0
loans transferred (Years)
Net book value of loans transferred (at
d. NA NA NA 142.84 NA 0
the time of transfer)
e. Aggregate consideration (` in crore) NA NA NA 305.12 NA 94.33
Additional consideration realized in
f. respect of accounts transferred in NA NA NA 1.23 NA 0
earlier years

No Excess Provision on sale of NPAs to Securitization Company (SC)/reconstruction Company (RC) has been accounted
for in the Profit & Loss Account during the current financial year.
ii. The Bank has not acquired any stressed loan or NPA during the year.
iii. The Bank has not transferred any Special Mention Account (SMA) and loan not in default.
iv. Bank has not acquired any “Loan not in default” through assignment of loans.
v. Bank has not acquired any stressed loans and not transferred any loan not in default/Special Mention Account
(SMA).
vi. Bank has not invested in Security Receipts (SR) issued by Asset Reconstruction Companies (ARC) in respect of
stressed loans transferred to ARCs.
Distribution of the Security Receipts (SRs) held across the various categories of Recovery Ratings assigned to
vii.
such SRs by the credit rating agencies as on March 31, 2024: (Treasury)
(Amount in ` crore)
Recovery Rating Band Book Value as on 31.03.2024 Book Value as on 31.03.2023
RR1+ 13.39 13.39
RR1 80.18 0.00
RR3 0.00 0.00
RR4 38.27 64.26
NA* 21.40 4.55
Rating not assigned** 0.00 80.18
Total 153.24 162.38
*100% provisions made against the SRs
**SRs received in Q4 of FY 2022-23, as per ARC rating shall be assigned within 180 days

197
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"

f) Fraud accounts (Amount ` in crore)
Particulars Current year Previous Year

Number of frauds reported 35 20

Amount involved in fraud (` Crore) 241.76 380.04

Amount of provision made for such frauds 237.72 375.32

Amount of Unamortised provision debited from ‘other reserves’ as at the end of the
Nil Nil
year)
*During the FY 2023-24, the total number of fresh fraud cases declared/reported is 32 and reclassified 3 fraud cases with aggregate
total amount involved being ` 241.76 crores out of which an amount of ` 4.04 Crores being recovered.

g) Resolution Framework for COVID-19 related stress (Credit Monitoring )

Details of resolution plan implemented under the Resolution Framework for COVID 19 related stress as per RBI
Circular dated August 06, 2020 (Resolution Framework 1.0) and May 05, 2021 (Resolution Framework 2.0) as at
March 31, 2024 are given below: (Amount ` in Crores)
Exposure to accounts
Exposure to accounts
classified as Standard
Of (A) Of (A) amount classified as Standard
consequent to Of (A), aggregate
amount paid by the consequent to
implementation of debt that slipped
Type of borrower written off borrowers implementation of
resolution plan – into NPA during
during the during the resolution plan –
Position as at the end of the half-year
half-year half-year Position as at the end
the previous half-year
of this half-year
(A)
Personal Loans 56.94 2.72 0.00 6.55 47.67
Corporate persons* 339.26 18.84 0.00 56.50 263.92
Of which MSMEs 51.69 9.01 0.00 8.20 34.48
Others 174.51 8.76 0.00 20.00 145.76
Total 570.71 30.31 0.00 83.05 457.35

* As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016

5. Exposures
a) Exposure to real estate sector (CCB)
S.No Particulars Current Year Previous Year

Direct Exposure
(i) Residential Mortgages
Lending fully secured by mortgages on residential property that is or will be
14169.49 11650.95
occupied by the borrower or that is rented;
Of which individual housing loans eligible for inclusion in priority sector advances 4579.99 4541.64
(ii) Commercial Real Estate 1792.79 2177.29
1. Lendings secured by mortgages on commercial real estates (office buildings,
retail space, multi-purpose commercial premises, multi-family residential
buildings, multi-tenanted commercial premises, industrial or warehouse space, 0 0
hotels, land acquisition, development and construction, etc.). Exposure would
also include non-fund based (NFB) limits.
Investment in Mortgage-Backed Securities (MBS) and other securitized
(iii) 0 0
exposures:
(a) Residential 0 0
(b) Commercial real estate 0 0

2. Indirect Exposure

Fund based and non-fund-based exposures on National housing Bank and Housing
3468.69 3025.03
Finance Corporation
Total Exposure to Real Estate Sector 19430.97 16853.27

198
Schedule 18
"Notes on Consolidated Accounts"
b) Exposure to capital market (Credit Monitoring )
(Amount ` in Crores)
Particulars
Current Previous
Year Year

i) Direct investment in equity shares, convertible bonds, convertible debentures and units of equity
75.50 74.42
oriented mutual funds the corpus of which is not exclusively invested in corporate debt;

ii) Advances against shares / bonds / debentures or other securities or on clean basis to individuals for
investment in shares (including IPOs / ESOPs), convertible bonds, convertible debentures, and units of 0.00 0.00
equity oriented mutual funds;

iii) Advances for any other purposes where shares or convertible bonds or convertible debentures or units
0.05 0.04
of equity oriented mutual funds are taken as primary security;

iv) Advances for any other purposes to the extent secured by the collateral security of shares or
convertible bonds or convertible debentures or units of equity oriented mutual funds i.e. where the
0.00 0.00
primary security other than shares / convertible bonds / convertible debentures / units of equity
oriented mutual funds does not fully cover the advances;

v) Secured and unsecured advances to stockbrokers and guarantees issued on behalf of stockbrokers
15.00 15.00
and market makers;
vi) Loans sanctioned to corporates against the security of shares / bonds / debentures or other securities
or on clean basis for meeting promoter’s contribution to the equity of new companies in anticipation 0.00 0.00
of raising resources;
vii) Bridge loans to companies against expected equity flows / issues; 0.00 0.00

viii) Underwriting commitments taken up by the banks in respect of primary issue of shares or convertible
0.00 0.00
bonds or convertible debentures or units of equity oriented mutual funds;

ix) Financing to stockbrokers for margin trading; 0.00 0.00

x) All exposures to Venture Capital Funds (both registered and unregistered) 0.00 0.02

Total exposure to capital market 90.55 89.48

c) Risk category-wise country exposure (Amount ` in Crores)

Exposure (net) Provisions Exposure (net) Provisions
Risk Category as at held as at as at held as at

Mar-24 Mar-23 Mar-23 Mar-22

Insignificant 615.32 0.00 118.98 0.00
Low 76.12 0.00 18.03 0.00
Moderately Low 4.98 0.00 1.98 0.00
Moderate 0.00 0.00 0.00 0.00
Moderately High 1.53 0.00 0.10 0.00
High 2.03 0.00 0.00 0.00
Very high 0.00 0.00 0.00 0.00
Total 699.97 0.00 139.09 0.00

d) Unsecured Advances (Amounts in ` crore)

Particulars Current year Previous Year

Total unsecured advances of the bank 28546.68 25310.11

Out of the above, amount of advances for which intangible securities such as
Nil Nil
charge over the rights, licenses, authority, etc. have been taken
Estimated value of such intangible securities NA NA

199
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
e) Factoring exposures (FOREX)
The Banks factoring exposure as at 31.03.2024 is Nil (Previous Year - Nil)
f) Intra-group exposures ( IRMD )
(Amount in ` crore)
Particulars Current Year Previous Year

Total Amount of intra-group Exposure 15.00 15.00

Total Amount of top-20 intra group exposures 15.00 15.00

Percentage of intra –group exposures to total exposures of the bank on borrowers/

0.01% 0.01%
customers

Details of breach of limit on intra-group exposures and regulatory action thereon, if any NIL NIL

g) Unhedged foreign currency exposure ( BST )

In accordance with RBI circular no DBOD .BP.BC.85/21.06.200/2013-14 dated 15th January, 2014 and circular no
DBOD.BP.BC.116/21.06.200/2013-14 dated 3rd June 2014, banks are required to make an additional provision in
respect of borrowers with Un-hedged Foreign Currency Exposures (UFCE) from April 1, 2014 onwards. Accordingly,
our bank has made the necessary provisions.
(Amount in ` crore)
Provision Held

Current Year Previous Year

Particulars
31.03.2024 31.03.2023

Opening balance 3.76 2.70

Additions during the Year 6.14 1.16

Deductions during the Year 5.35 0.10

Closing balance 4.54 3.76

The incremental capital held by the Bank towards the foreign currency exposure amounts to ` 0.12 crores
(previous year ` 1.13 crores)

6. Concentration of deposits, advances, exposures and NPAs

a) Concentration of Deposits (Amount in ` crore)
Particulars Current Year Previous Year

Total Deposits of 20 largest depositors 13164.34 10984.00

Percentage of 20 largest deposits to total Deposits of the Bank 9.77% 9.00%

b) Concentration of Advances (Amount in ` crore)

Particulars Current Year Previous Year

Total Advances to the twenty largest borrowers 17692.73 11819.29

Percentage of advances to twenty largest borrowers to total advances of the bank 13.79% 13.28%

c) Concentration of Exposures (Amount in ` crore)

Particulars Current Year Previous Year

Total exposure to the twenty largest borrowers/customers 16071.68 12440.52

Percentage of exposures to the twenty largest borrowers /customers to the total exposure
15.19% 11.89%
of the bank on borrowers/customers

200
Schedule 18
"Notes on Consolidated Accounts"
d) Concentration of NPAs (Amount in ` crore)
Particulars Current Year Previous Year

Total Exposure to the top twenty NPA accounts 1811.70 2400.18

Percentage of Exposure to the twenty largest NPA exposure to total Gross NPAs. 45.79% 46.12%

7. Derivatives ( TREASURY )
a) Forward rate agreement/Interest rate swap (Amount in ` crore)
Particulars Current Year Previous Year
0.00 0.00
i) The notional principal of swap agreements
0.00 0.00
ii) Losses which would be incurred if counterparties failed to fulfil their obligations under the
agreements
iii) Collateral required by the bank upon entering into swaps
0.00 0.00
iv) Concentration of credit risk arising from the swaps
0.00 0.00
v) The fair value of the swap book
0.00 0.00

b) Exchange traded interest rate derivatives (Amount in ` crore)

Sr.
Particulars Current Year Previous Year
No.
Notional principal amount of exchange traded interest rate derivatives undertaken during
i) 0.00 0.00
the year (instrument wise)
Notional principal amount of exchange traded interest rate derivatives outstanding as on
0.00 0.00
ii) 31st March (instrument wise)
Notional principal amount of exchange traded interest rate derivatives outstanding and
0.00 0.00
iii) not ‘highly effective’ (instrument wise)
Mark to market value of exchange traded interest rate derivatives outstanding and not
0.00 0.00
iv) ‘highly effective’ (instrument wise)

c) Disclosures on risk exposures in derivatives

i) Qualitative disclosures
The only derivatives traded by the Bank in the foreign exchange market are forward contracts. Forward
contracts are being used to hedge /cover the exposure in foreign exchange arising out of Merchant
transactions and trading positions.
To cover the risks arising out of above derivatives, various limits like AGL, IGL and stop loss have been
prescribed in the trading policy of the bank which are monitored through VaR.
Outstanding forward exchange contracts held for trading are revalued at the exchange rates for appropriate
maturity rates as announced by FEDAI at the year-end exchange rates and the resultant gain/ loss is taken
to revenue.

ii) Quantitative Disclosures (Amount in ` crore)

Current Year Previous Year

Interest Interest
Sr. Currency Currency
Particulars Rate Rate
No Derivatives Derivatives
Derivatives Derivatives

Derivatives (Notional Principal Amount)

(i) a) For Hedging NIL NIL NIL NIL
b) For Trading NIL NIL NIL NIL

Marked to Market Position

(ii) a) Asset (+) NIL NIL NIL NIL
b) Liability (-) NIL NIL NIL NIL
(iii) Credit Exposure (2) NIL NIL NIL NIL

201
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ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"

Current Year Previous Year

Likely Impact of 1% change in interest rate (100*PV01)

(iv)
a) On hedging derivatives NIL NIL NIL NIL
b) On Trading derivatives NIL NIL NIL NIL

Maximum & minimum of 100*PV01 observed during the year

(v) a) On hedging NIL NIL NIL NIL
b) On Trading NIL NIL NIL NIL

d) Credit default swaps

Bank did not enter in any credit default swap.

8. Disclosures relating to securitisation ( IAPM

Mar 31 Mar 31
S.no Particulars (Current (Previous
Year) Year)

1. No of SPEs holding assets for securitisation transactions originated by the originator Nil Nil

2. Total amount of securitised assets as per books of the SPEs Nil Nil

Total amount of exposures retained by their originator to comply with MRR as on the date of
3. Nil Nil
balance sheet
a) Off-balance sheet exposures
• First loss Nil Nil
• Others
b) On-balance sheet exposures
• First loss Nil Nil
• Others
4. Amount of exposures to securitisation transactions other than MRR Nil Nil

a) Off-balance sheet exposures

i) Exposure to own securitisations
• First loss
• Others Nil Nil
ii) Exposure to third party securitisations
• First loss
• Others

b) On-balance sheet exposures

i) Exposure to own securitisations
• First loss
• Others Nil Nil
ii) Exposure to third party securitisations
• First loss
• Others
Sale consideration received for the securitized assets and gain/loss on sale on
5. Nil Nil
account of securitization

Form and quantum (outstanding value) of services provided by way of, liquidity support, post-
6. Nil Nil
securitisation asset servicing, etc.
Performance of facility provided. Please provide separately for each facility viz. Credit
enhancement, liquidity support, servicing agent etc. Mention percent in bracket as of total value
of facility provided.
7. Nil Nil
(a) Amount paid
(b) Repayment received
(c) Outstanding amount
Average default rate of portfolios observed in the past. Please provide breakup separately for
8. Nil Nil
each asset class i.e. RMBS, Vehicle Loans etc

202
Schedule 18
"Notes on Consolidated Accounts"
Mar 31 Mar 31
S.no Particulars (Current (Previous
Year) Year)
Amount and number of additional/top up loan given on same underlying asset. Please provide
9. breakup separately for each asset Nil Nil
class i.e. RMBS, Vehicle Loans, etc.
Investor complaints
10. (a) Directly/Indirectly received and; Nil Nil
(b) Complaints outstanding

9. Off balance sheet SPVs sponsored

The bank has not floated any off Balance Sheet SPV.

10. Transfers to Depositor Education and Awareness Fund (DEA Fund) (Amount in ` crore)
Particulars Current Year Previous Year

Opening balance of amounts transferred to DEA Fund 273.93 244.30

Add: Amounts transferred to DEA Fund during the year 34.98 34.28

Less: Amounts reimbursed by DEA Fund towards claims 28.77 4.65

Closing balance of amounts transferred to DEA Fund 280.14 273.93

The Closing balance of amounts transferred to DEA Fund as disclosed above are also included under schedule 12 – Contingent Liabilities –
other items for which the bank is contingently liable.

11. Disclosure of complaintsCustomer

Summary information on complaints received by the bank from customers and from the Offices of Ombudsman
Sr. Previous year Current year
Particulars
No (FY 2022-23) (FY 2023-24)
Complaints received by the bank from its customers
1. Number of complaints pending at beginning of the year 1116 2324
2. Number of complaints received during the year 52608 54686
Number of complaints disposed during the year 51400 55465
3.
3.1 Of which, number of complaints rejected by the bank 582 8273
4. Number of complaints pending at the end of the year 2324 1545
Maintainable complaints received by the bank from OBOs
Number of maintainable complaints received by the bank from OBOs 530 616

5.1. Of 5, number of complaints resolved in favour of the bank by BOs 514 589
5.
Of 5, number of complaints resolved through conciliation / mediation / advisories
5.2 10 29
issued by BOs
5.3 Of 5, number of complaints resolved after passing of Awards by BOs against the bank 0 0

6. Number of Awards unimplemented within the stipulated time (other than those appealed) 0 0

Note : 1. Maintainable complaints refer to complaints on the grounds specifically mentioned in BO Scheme 2006 and covered within the ambit
of the Scheme.
2. Till the Financial Year 2022-23, the Bank was disclosing only the non-digital complaints in the summary information. For the current year,
the number of complaints pending at the beginning of the year, received and disposed during the year and pending at the end of the year
include digital and non-digital complaints. The figures for the previous year have been regrouped accordingly.

Note:
• Number of BO complaints pending at the beginning of FY2022-23 ------ 9
• Number of BO complaints pending at the end of FY2022-23 ------- 15
• Number of BO complaints pending at the end of FY2023-24 ------- 13

203
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"

a) Top five grounds of complaints received by the bank from customers

Number of Number of
% increase / decrease Number of Of 5, number
complaints complaints
Grounds of complaints, in the number of complaints of complaints
pending at the received
(i.e. complaints relating to) complaints received pending at the pending beyond
beginning of during the
over the previous year end of the year 30 days
the year year

1 2 3 4 5 6

Current Year

Ground – 1
2291 51332 0.2 1221 0
(Internet/Mobile/Electronic Banking)
Ground – 2
8 1401 129 135 0
(Loans and Advances)
Ground – 3
1 172 161 30 0
(ATM/Debit Cards)
Ground – 4
1 157 59 12 0
(Credit Cards)
Ground - 5
(Account opening/difficulty in operation of 1 151 26 21 0
accounts)
Other Grounds
• Staff Misbehaviour
• Deficiency of services
• Insurance
• Leakage of Account Info
22 1473 110 126 1
• Non-Linkage of Aadhaar
• Unauthorised Debits
• Pension and facilities for senior citizens/
differently abled
• Others
Total Complaints 2324 54686 3 1545 1
Previous Year

Ground – 1
1105 50982 48 2291 0
(Internet/Mobile/Electronic Banking)

Ground – 2
2 612 353 8 1
(Loans and Advances)
Ground - 3
(Account opening/difficulty in operation of 2 120 2900 1 0
accounts)

Ground – 4
0 99 27 1 0
(Credit Cards)

Ground – 5
1 95 313 5 0
(Staff Behavior)

Other Grounds
• ATM/Debit Cards
• Deficiency of services
• Insurance
• Leakage of Account Info
6 700 57 18 0
• Non-Linkage of Aadhaar
• Unauthorised Debits
• Pension and facilities for senior citizens/
differently abled
• Others

Total Complaints 1116 52608 50 2324 1

204
Schedule 18
"Notes on Consolidated Accounts"
12. Disclosure of penalties imposed by the Reserve Bank of India ( Compliance )
During the year ended March 31, 2024, Reserve Bank of India (RBI) in exercise of the powers vested under the provisions of
Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949 has levied following monetary
penalties on the Bank:
Number of Cumulative Amount
S No. Nature of Penalty
Instances (In ` lacs)

1.** Penalty imposed by RBI on Currency Chests 39 2.14*

2.*** Penalty imposed by RBI on ATM Cash Outs 10 1.00*

3. Penalty imposed on non-compliances with RBI directions 1 250.00

4. Penalty imposed on branch office(s) 1 0.20

Total 51 253.34
*This amount has been recovered from the concerned employees.
**` 0.50 Lacs (one instance) out of penalty at S. No. 1 &
***` 0.50 Lacs (five instances) out of penalty at S. No. 2 have been waived-off and reversed by RBI.

13. Disclosure on remuneration(

Type of disclosure Information

Bank has constituted the Nomination and Remuneration Committee of the Board pursuant to the re-
quirement of the Reserve Bank of India and the Companies Act, 2013, which constituted of following
members of the Board as on 31.03.2024.
Information relating to the composition and
Qualitative a) Mr. Anand Kumar (Chairman N&RC)
mandate of the Remuneration Committee.
Dr. Rajeev Lochan Bishnoi
Mr. Naba Kishore Sahoo
Ms. Shahla Ayoub

The major objective of Banks’ Compensation Policy are:

• To ensure effective governance of compensation.
i. Actively oversee the compensation systems design and operation.
ii. Monitor and review the compensation system to ensure the system operates as intended.
iii. Employees engaged in financial system and control must be independent, have necessary
authority and must be compensated in a manner that is Independent of the business areas
they oversee and commensurate with their key role in the Bank.
• To ensure effective alignment of compensation with prudent risk taking:
i. Compensation must be adjusted for all types of risks.
ii. Compensation outcome must be symmetric with risk outcomes.
Information relating to the design and struc- iii. Compensation pay out schedules must be sensitive to the time horizon of risks.
ture of remuneration processes and the key iv. The proportion of cash, equity and other forms of compensation must be consistent with
b)
features and objectives of remuneration risk alignment.
policy. • To comply with the regulatory directives whereby all private sector banks are required to
formulate and adopt a comprehensive Compensation Policy covering all their employees and
conduct annual review thereof.
• To attract, develop and retain high-performing and motivated employees
The Compensation Policy of the Bank is in line with the regulatory guidelines, however as per
Board directions, the policy shall be considered for implementation once the Bank reaches a
cost to income ratio of 50% or below, in-line with the peer banks. The Bank being a member
bank of Indian Banks’ Association (IBA), as such the compensation structure of the Banks’
employees is currently guided by the IBA stipulated pay structure. However, in the case of
Contractual Senior Employees viz. MD & CEO, ED and the CFO, the compensation structure (for
the FY 2023-24) is aligned as per the compensation policy.

The Compensation Policy of the Bank is in line with the regulatory guidelines, however as per Board
directions, the policy shall be considered for implementation once the Bank reaches a cost to income
ratio of 50% or below, in-line with the peer banks. The Bank being a member bank of Indian Banks’ As-
sociation (IBA), as such the compensation structure of the Banks’ employees is currently guided by the
IBA stipulated pay structure, without any performance linked variable components. However, in the
case of Contractual Senior Employees viz. MD & CEO, ED and the CFO, the compensation structure (for
the FY 2023-24) is aligned as per the compensation policy, wherein performance linked Variable pay is
included within the remuneration.
Description of the ways in which current and As per the Compensation Policy, various types of risks are to be taken into account by the Bank in its
future risks are taken into account in the re- remuneration process. A wide variety of measures of credit, market, liquidity and various other risks
c) muneration processes. It should include the shall be used by the bank in implementation of risk adjustment which shall involve both quantitative
nature and type of the key measures used to and judgmental elements.
take account of these risks. In order to manage current and future risks, the compensation policy stipulates variable pay as a com-
ponent of the compensation structure of Whole Time Directors, Material Risk Takers (MRTs) and Con-
trol function staff. The variable portion of the compensation comprises of cash and non-cash (share
linked instruments) components which is deferred over a period of 3 years so that the compensation is
adjusted for all types of risks that the Bank may be exposed to.
The compensation policy also stipulates ‘malus’ and ‘clawback’ options to take into account specific
crystallised risk, adverse performance outcomes including those related to misconduct and deteriora-
tion in financial performance of the Bank.

205
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
As per the compensation policy, the variable component of remuneration (wherever applicable) is
Description of the ways in which the bank
assessed by the Bank based on the individual performance in relation to KRAs for a reference per-
seeks to link performance during a perfor-
d) formance year. KRAs take into consideration both the quantitative (financial aspects) and qualitative
mance measurement period with levels of
(nonfinancial aspects) parameters. The quantum of Variable Pay is a function of the Bank’s and the
remuneration.
individual’s performance with due adjustment for risks involved.

As per the bank’s compensation policy, deferral and vesting of variable remuneration shall apply to
the MD & CEO /Whole Time Directors (WTDs), Material Risk Takers (MRTs) and control Function staff.
The Material Risk Takers (MRTs) and Control Function Staff designated by the Bank within the policy
include the following:
a) Material Risk Takers (MRTs)
The following officials have been identified as MRTs based on the RBI stipulated qualitative and
quantitative criteria for identification of MRTs.
General Managers within the following domains.
1. Consumer & Commercial Banking (CCB)/Corporate Banking (including Divisional Heads in busi-
ness line function)
2. Central Banking Operations (CBO)
3. Govt. Banking & Treasury Ops.
4. Strategy & IT
5. BSD, Insurance
6. Human Resources
7. IAPM
8. Law
b) Control Function Staff
The following officials have been identified as the Control Function Staff:
1. Chief Compliance Officer (CCO)/GCO
2. Head of Internal Audit (HIA)
3. Chief Risk Officer (CRO)
4. CIV/CVO
5. Company Secretary
6. Finance/CFO
In line with the RBI guidelines, the Bank’s compensation policy stipulates the following principles for
Deferral / vesting of variable remuneration for WTDs/CEO, MRTs:
• At least 50% of Total Pay, should be variable.
• The variable pay can be in the form of share-linked instruments or a mix of cash and share-linked
instruments. There should be proper balance between the cash and share-linked components in
the variable pay. Only in cases where the compensation by way of share-linked instruments is not
permitted by law/regulations, the entire variable pay can be in cash.
• A minimum of 50% of the Total Variable Pay shall be paid via non-cash instruments.
• The compensation policy stipulates that the total variable pay of the MD & CEO to be limited to
a maximum of 100% of the fixed pay (as against the maximum permissible regulatory ceiling of
300% of the fixed pay), to be allocated equally (50%) between the cash component and non-cash
component. The said ceiling being the minimum would apply to the MRTs and Control Function staff
A discussion of the bank’s policy on deferral as well.
and vesting of variable remuneration and a • Cash Component:
e) discussion of the bank’s policy and criteria for (a) Upfront payment shall be 50% of cash component of Variable Pay
adjusting deferred remuneration before vest- (b) Deferred payment shall be 50% of cash component of Variable Pay
ing and after vesting. • Non-cash Components (share-linked instruments):
(a) ESOP/ESOS: The monetary value, of grant of share-linked instruments shall not exceed 50% of
Variable Pay
• Period of Deferral Arrangement:
The deferral period shall be a minimum of three years. This would be applicable to both the cash and
non-cash components of the variable pay. However, in cases where the cash component of variable pay
is under INR 25 lakhs, deferral requirements for cash component will not apply.
Members of staff engaged in financial and risk control, including internal audit, should be compensated
in a manner that is independent of the business areas they oversee and commensurate with their key
role in the bank. The mix of fixed and variable compensation for control function personnel should be
weighted in favour of fixed compensation, as such the requirement of minimum 50% of total compen-
sation to be paid in the form of variable pay will not be applicable for this category of staff. However,
a reasonable proportion of compensation has to be in the form of variable pay, so that exercising the
options of malus and/or clawback, when warranted, is not rendered infructuous.
The Compensation policy stipulates Malus and Clawback clauses for adjusting deferred remuneration
before & after vesting (applicable for WTDs, CEO, MRTs and Control function Staff):
Malus: Payment of all or part of amount of deferred variable pay can be prevented
Clawback: Previously paid or already vested deferred variable pay can also be recovered under this
clause.
FRAMEWORK TO INVOKE MALUS / CLAWBACK CLAUSES:
The variable pay shall be subject to ex-post risk adjustment measures to take into account specific crys-
tallised risk or adverse performance outcome including those relating to misconduct. It shall include
reduction of current year awards (in-year adjustment), the application of malus (reducing or cancelling
deferred pay that have not yet vested), and clawback (recouping already vested awards).
The ‘malus’ and ‘clawback’ clause will be invoked when the employee demonstrates fraudulent behav-
ior, moral turpitude, lack of integrity, flagrant breach of company policies and statutory norms result-
ing in financial or non-financial losses.
Malus and clawback will be applied basis informed judgment of NRC for following
conduct/risk related circumstances:
a. Any act which exposes the bank to substantial risk.
b. Non-disclosure of material conflict of interest by the employee or any misuse of official powers.
Any misconduct pertaining to moral turpitude, theft, misappropriation, corruption, forgery, embezzle-
ment or an act of a felonious or criminal nature.
d. Fraud, breach of trust, dishonesty, or wrongful disclosure by the employee of any confidential infor-
mation pertaining to the bank or any of its affiliates.
e. Wilful misinterpretation / misreporting of financial performance of the bank.
f. Material failure in risk management controls or material losses due to negligent risk-taking which are
attributable to the employee, whether directly or indirectly.

206
Schedule 18
"Notes on Consolidated Accounts"
g. An act of wilful, reckless or grossly negligent conduct which is detrimental to the interest or reputa-
tion of the bank or any of its affiliates, monetarily or otherwise.
h. Material breach of:
• Code of Conduct
• Any Non-Disclosure Agreement
• Regulatory procedures
• Internal rules and regulations or any other such instance for which the NRC, in its discretion, deems
it necessary to apply malus or / and clawback provisions.
i. Violation of guidelines for Anti Hedging and guidelines for Prevention of Insider Trading.
The occurrence of any/some/all of the above conditions/events shall trigger a review by the Nomi-
nation and Remuneration Committee for the application of the Malus or the Clawback arrangement.
Malus may be applied to the following additional circumstances:
i. In the event of deterioration in financial performance in form of drop in Profit After Tax (PAT)
from one financial year to the next by 30% or more, the NRC shall evaluate and decide if Malus
needs to be applied on none, part or all of the unvested deferred variable compensation. For the
evaluation, the NRC may take into consideration conditions leading to the deterioration in financial
performance, including changes in regulations, industry performance and others.
ii. In the event when there is a deterioration of more than 5% in the operating profit and/or net
Non-Performing Asset (NPA)/to net Advances exceeds 0.75%, and deterioration in any other spe-
cific performance criteria that may be laid down by the Nomination and Remuneration Committee
(NRC). The NRC will review the performance taking into consideration the macroeconomic environ-
ment as well as the internal performance indicators and accordingly decide whether any part of the
deferred tranche belonging to a financial year merits a withdrawal.
iii. In the event where the assessed divergence in Bank’s provisioning for Non-Performing Assets
(NPAs) or asset classification exceeds the prescribed threshold for public disclosure, the Bank shall
not pay the unvested portion of the variable compensation for the assessment year under ‘Malus’
clause. Such a scenario can also lead to the invoking of the ‘Clawback’ clause. Further, in such situ-
ations, no proposal for increase in variable pay (for the assessment year) shall be entertained. In
case the Bank’s post assessment Gross NPAs are less than 2.0%, these restrictions will apply only
if criteria for public disclosure are triggered either on account of divergence in provisioning or both
provisioning and asset classification.
Final decision to invoke malus and/or clawback shall be approved by NRC. In deciding the applica-
tion of malus / clawback to any part or all of variable pay or incentives (whether paid, vested or
unvested), the NRC will follow due process and adhere to the principles of natural justice and pro-
portionality. Further, in assessing the quantum of cancellation / withdrawal, the NRC will take into
consideration all relevant factors, including inter alia, internal factors such as role and responsibili-
ties of the employee, culpability and proximity to the misconduct as well as any external factors that
may have been beyond the control of the concerned employee.
Prior to yearly pay out of the deferred components of Total Variable Pay, NRC shall review the
release of the pay-out. In the event where the clawback clause is invoked, the employee will agree
to return the previously received Total Variable Pay back to the Bank, taking into account relevant
regulatory/ statutory stipulations. In case the vested stock options have already been exercised,
the employee shall return fair value of options at the time of grant, using Black-Scholes model

The compensation policy of the Bank stipulates the following components of performance linked vari-
able pay:
• Cash component
• Non-cash component (share linked instruments). This shall be granted to employees, in the form of
Employee Stock Options (ESOPs). The Bank shall have in place an Employee Stock Option Scheme
Description of the different forms of variable (ESOS), formulated in accordance with the SEBI-SBEBSE (Share Based Employee Benefits and
remuneration (i.e. cash, shares, ESOPs and Sweat Equity) Regulations, 2021.
f)
other forms) that the bank utilizes and the ra- ESOS shall have an inbuilt deferral design; grant immediately following the reference performance
tionale for using these different forms. year with no immediate vesting, 30% vesting after end of first year following the reference per-
formance year, next 30% vesting after end of second year & balance 40% vesting after the end of
third year, which is intended to spread and manage risk.
• Employee stock options shall be fair valued on the date of grant by the Bank using
Black-Scholes model.

207
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
Particulars Current Year Previous Year

Quantitative Disclosures g) Number of meetings held by the Nomination and The Committee met ten times during the The Committee met ten times
Remuneration Committee during the financial year and total sitting fee of`12,00,000.00* during the year and total sitting fee
(The quantitative disclosures year and remuneration paid to its members. was paid to the Members of the Committee. of `15,60,000.00* was paid to the
should only cover Whole Time (*It is pertinent to mention that in addition Members of the Committee.
Directors/Chief Executive Officer/ to the above fee, GST @ 18% has been paid, (*It is pertinent to mention that in
Material Risk Takers) out of which 9% has been claimed as input addition to the above fee, GST @ 18%
credit). has been paid, out of which 9% has been
claimed as input credit

i) Number of employees having received a

variable remuneration award during the NIL NIL
financial year.

ii) Number and total amount of sign-on awards

NIL NIL
made during the financial year.

i) Details of guaranteed bonus, if any, paid as

h) NIL NIL
joining / sign on bonus

ii) Details of severance pay, in addition to ac-

NIL NIL
crued benefits, if any.

i) Total amount of outstanding deferred Cash (Deferred): ` 0.12 Cr

remuneration, split into cash, shares and *Non-Cash/ ESOP (Deferred): ` 0.35 Cr
i) share-linked instruments and other forms. Deferred Cash: ` 0.18 Cr
*pertains to the assessment of variable
Deferred Non-Cash (ESOP): ` 0.46
pay for the reference performance year
(FY 2021-22 & 2022-23).

ii) Total amount of deferred remuneration paid

NIL NIL
out in the financial year.

j) Breakdown of amount of remuneration awards Total Fixed Salary: ` 4.86 Cr Total Fixed Salary: ` 4.22 Cr
for the financial year to show fixed and variable, Total Variable Pay: Nil* Total Variable Pay : ` 1.03 Cr
deferred and non-deferred. Deferred variable pay: ` 0.64 Cr
*Variable Pay assessment for MD & CEO/ Non-deferred variable Pay: ` 0.39 Cr
WTD/MRT for FY 2023-24 is pending.

i) Total amount of outstanding deferred

remuneration and retained remuneration
NIL NIL
k) exposed to ex post explicit and/or implicit
adjustments.

ii) Total amount of reductions during the financial

NIL NIL
year due to ex post explicit adjustments.

iii) Total amount of reductions during the financial

NIL NIL
year due to ex post implicit adjustments.

10* 11*
l) Number of MRTs identified *Identified as per the Compensation *Identified as per the Compensation
Policy of the Bank Policy of the Bank

i) Number of cases where malus has been

exercised NIL NIL

ii) Number of cases where clawback has been

NIL NIL
m) exercised

iii) Number of cases where both malus and

NIL NIL
clawback have been exercised.

General Quantitative Disclosure (n) The mean pay for the Bank as a whole (excluding • Mean pay for the Bank as a whole for all employees (excluding sub-staff) who
sub-staff) and the deviation of the pay of each of were in employment for FY2023-24 was ` 14.44 lacs Ratio of pay of WTD to the
its WTDs from the mean pay. mean pay for the bank as a whole (for FY 2023-24): 9.53X
• Mean pay for the Bank as a whole for all employees (excluding sub-staff) who
were in employment for FY2022-23 was ` 11.08 lacs Ratio of pay of WTD to the
mean pay for the bank as a whole (for FY 2022-23): 6.07X

Details of Remuneration paid to Non - Executive Directors during FY 2023-24

Profit related
Name Sitting Fee Compensation (FY Total
2022-23)
Dr. Rajeev Lochan Bishnoi 2160000 1000000 3160000
Mr. Naba Kishore Sahoo 2280000 1000000 3280000
Dr. Mohmad Ishaq Wani 0 400000 400000
Mr. R K Chhibber 2160000 1000000 3160000
Mr. Umesh Chandra Pandey 2120000 1000000 3120000
Mr. Anil Kumar Goel 2080000 1000000 3080000
Mrs. Sushmita Chadha 0 493151 493151
Mr. Anand Kumar 2400000 1000000 3400000
Total 13200000 6893151 20093151

208
Schedule 18
"Notes on Consolidated Accounts"
14. Other Disclosures
a) Business ratios (BST)

Particulars Current Year Previous Year

Interest Income as a percentage to Working Funds 7.76% 6.92%

Non-Interest Income as a percentage to Working Funds 0.57% 0.56%
Cost of Deposits 4.57% 3.79%
Net Interest Margin 3.92% 3.89%
Operating Profit as a percentage to Working Funds 1.58% 1.37%
Return on Assets 1.22% 0.89%
Business (deposits plus advances) per employee(in ` crore) 17.81 15.57
Profit per employee (in ` crore) 0.14 0.09

Bancassurance business ( Insurance )

b)
Fees/brokerage earned in respect of the insurance broking, agency and bancassurance business
(Amount in ` crore)
Current Year Previous Year
Name of the Company
FY2023-24 FY2022-23
PNB MetLife 55.69 47.36
Life Insurance Corporation of India 1.67 0
Bajaj Allianz Life Insurance Company Limited 22.17 0
Bajaj Allianz General Insurance Company Limited 22.73 20
IFFCO TOKIO General Insurance Company 3.51 3.33
Total 105.77 70.69

c) Marketing and distribution ( Insurance )

The details of fees / remuneration received in respect of the marketing and distribution function (excluding
bancassurance business) are as under:
(Amount in ` crore)
S.No Nature of income Current Year Previous Year
1 Commission from JKBFSL on opening DEMAT Accounts 0.16 0.03
2 Commission from JKBFSL on mobilizing Mutual Funds 0.12 0.07
3 Service Charges from PMFBY 0.42 0.13
Total 0.70 0.23

d) Disclosures regarding Priority Sector Lending Certificates (PSLCs) ( Credit Mon

The Bank has purchased the following PSLCs during the year:
(Amount in ` crore)
Current Year Previous Year
Category (Currency Face (Currency Face
Value) Value)

PSLC Small and Marginal Farmers 1708.00 50.00

Total 50.00 50.00

The Bank has sold the following PSLCs during the year: (Amount in ` crore)
Current Year Previous Year
Category (Currency Face (Currency Face
Value) Value)

PSLC Small and Marginal Farmers 0.00 0.00

Total 0.00 0.00

209
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
e) Provisions and contingencies (Amount in ` crore)
YEAR ENDED YEAR ENDED
CONSOLIDATED DETAILS OF PROVISIONS
31.03.2024 31.03.2023
1 Provision for Taxes ( A+B ) 618.17 587.45
A. Income Tax 589.75 531.01
B. Deferred Tax 28.42 56.44
2 Provision for Bad & Doubtful Debts (73.61) -12.51
3 Provision for Standard Assets (114.68) 63.24
4 Provision for Non Performing Investment 75.88 83.46
5 Provision for diminution in the fair value of restructured/rescheduled advances 0.00 -28.24
6 Provision for Contingent Liabilities 0.10 -2.33
7 Provision for Contingencies -27.74
8 Provision for Frauds/ Embezzlements (other than Advances) 4.62 -1.74
Total :- 510.48 661.58

f) Implementation of IFRS converged Indian Accounting Standards (Ind AS) ( CA Arshid )

RBI vide Circular DBR.BP.BC.No.29/21.07.001/2018-19 dated March 22, 2019 deferred implementation of Ind AS
till further notice. However, RBI requires all banks to submit Proforma Ind AS financial statements every half
year.
The bank hired a consultant for implementation of Ind AS in the Financial Year 2023-2024 and consultant has
started the process of parallel conversion to IND AS. The base year for Ind As conversion is Financial Year 2023-
2024 with transition date as at April 1, 2023.
It is pertinent to mention that the Bank had previously availed the services of a consultant for implementation
of Ind AS but the contract was terminated due to non-performance by the previous Consultant.
g) Payment of DICGC Insurance Premium (Amount in ` crore)
S.no Particulars Current Year Previous Year

i) Payment of DICGC Insurance Premium 143.24 140.81

ii) Arrears in payment of DICGC premium Nil Nil

h) Disclosure on amortisation of expenditure on account of enhancement in family pension of employees of Bank

has estimated the additional liability on account of revision in family pension for employees as per IBA Joint Note
dated November 11, 2020, amounting to `72.50 Crores. However, RBI vide their Circular RB1/2021-22/105 DOR.
ACC.REC.57/21.04.018/2021-22 dated 4th October 2021, has permitted Banks to amortize the said additional
liability over a period of not exceeding 5 (five) years, beginning with financial year ending 31st March 2022,
subject to a minimum of 1/5th of the total amount being expensed every year. Bank has opted the said provision
of RBI, charged an amount of `3.625 crores and ` 14.50 crores to the Profit & Loss account for the quarter & Year
ended 31st March 2024 respectively and the balance unamortized expense of `29.00 Crores has been carried
forward. Had the bank charged the entire additional liability to the Profit and loss account, the consequential net
profit for the year ended march 31, 2024 would have been ` 1738.27crores (this will change )
i) Disclosure of Letters of Comfort (LoCs) issued by banks ( CCB / Forex)
The Bank has not issued any letter of comfort on behalf of the customers or on its behalf in respect of trade
credits during the FY 2023-24.
j) Portfolio-level information on the use of funds raised from green deposits
k) DLM )

210
Schedule 18
"Notes on Consolidated Accounts"
(Amount in ` crore)

Current Previous
Particulars Financial Financial Cumulative*
Year Year

Total green deposits raised (A)

Use of green deposit funds**

(1) Renewable Energy

(2) Energy Efficiency

(3)Clean Transportation

(4)Climate Change Adaptation

(5)Sustainable Water and Waste Management

(6) Pollution Prevention and Control No such scheme is available for the reference
period. However, the Bank is in process to roll
(7) Green Buildings out the Green Deposit scheme.
(8) Sustainable Management of Living Natural Resources and Land Use

(9) Terrestrial and Aquatic Biodiversity Conservation

Total Green Deposit funds allocated (B = Sum of 1 to 9)

Amount of Green Deposit funds not allocated (C = A – B)

Details of the temporary allocation of green deposit proceeds pending their allocation to
the eligible green activities/projects.

* This shall contain the cumulative amount since the RE started offering green deposits. For example, if a bank has commenced raising
green deposits from June 1, 2023, then the annual financial statement for the period ending March 31, 2025, would contain particulars of
deposits raised and allocated from June 1, 2023, till March 31, 2025. Further, the actual amount of green deposits raised during the year
and use of such funds shall be given under this disclosure.
**Under each category, REs may provide sub-categories based on the funds allocated to each sub-sector. For example, REs may provide
sub-categories like solar energy, wind energy, etc. under “Renewable Energy”.

15. Disclosure Requirements as per the Accounting Standards

a) Accounting Standard 5: Net Profit or Loss for the period, Prior Period Items, and Changes in Accounting Policies
• During the year, there were no material prior period income/expenditure items.
• There are following changes in the Significant Accounting Policies adopted during the Financial Year 2023-24
as compared to those followed in the previous Financial Year 2022-2023:
(i) To be more prudent the Bank has made additional provision of Rs. 135.67crore on its secured portion at
the rate of 10% on its non-performing assets held in sub-standard, D-1, & D-2 Category over and above the
prescribed norms.
(ii) Due to change in accounting policy, para D(12) of schedule 17 the share issue expenses amounting to Rs.
6.00crores have been charged to share premium account..

b) Accounting Standard – 15 “Employee Benefits” RD

The bank has recognized in its books of accounts the liability arising out of employee benefits as the sum of the
present value of obligation as reduced by fair value of plan assets on the balance sheet date, as under:
I - Principal Actuarial Assumptions as the Balance Sheet date:
Actuarial Assumptions PENSION GRATUITY LEAVE ENCASHMENT
Current Previous Current Previous Current Previous
Year
Year Year Year Year Year Year
Discount Rate 7.20% 7.45% 7.20% 7.45% 7.20% 7.45%

Expected Return on Plan Assets 7.20% 7.45% 7.20% 7.0% NA NA

Rate of Escalation in salary 5.50% 5.50% 5.50% 5.50% 5.50% 5.50%

Attrition Rate 1% 1% 1% 1% 1% 1%

211
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"

II - Changes in Present value of the obligation (PVO)-Reconciliation of Opening & Closing Balance
(Amount ` in Crore)
LEAVE
Particulars PENSION GRATUITY
ENCASHMENT
Present value of Obligation 01.04.2023 2646.48 1120.08 501.41
Interest Cost 185.09 81.30 36.18
Current Service Cost 74.54 70.12 29.61
Benefits paid (324.03) (57.48) (31.44)
Actuarial (loss)/ gain on obligations (Balancing figure) 858.58 (307.64) (24.84)
Present Value of Obligations, 31.03.2024 3440.66 906.38 510.92

III -Changes in the Fair Value of the Plan Assets-Reconciliation of Opening & Closing Balances:
(Amount ` in Crore)
LEAVE
Particulars PENSION GRATUITY
ENCASHMENT

Fair Value of Plan Assets 01.04.2023 2560.00 1119.92 0.00

Expected return on Plan assets 109.18 81.30 0.00
Contributions by Bank 1001.69 0.16 40.95
Benefits paid (324.03) (57.48) (31.44)
Actuarial (loss)/ gain on Plan Assets (Balancing figure) 93.70 5.56 0.00
Fair Value of Plan Assets, 31.03.2024 3440.55 1149.46 0.00

IV - Actual return on Plan Assets (Amount ` in Crore)

LEAVE
Particulars PENSION GRATUITY
ENCASHMENT
Expected return on Plan Assets 109.18 81.30 0.00
Actuarial (loss)/ gain on Plan Assets 93.71 5.56 0.00
Actual Return on Plan Assets 202.89 86.86 0.00

V - Net Actuarial Gain/ (loss) recognized (Amount ` in Crore)

LEAVE
Particulars PENSION GRATUITY
ENCASHMENT
Actuarial (Gain)/loss for the period – Obligation 858.57 (307.64) (24.84)
Actuarial (Gain)/ loss for the period – Plan Assets (93.71) (5.56) 0.00
Total (Gain)/Loss for the period 764.86 (313.20) (24.84)
Actuarial (Gain ) or loss recognized in the period 764.86 (313.20) (24.84)
Unrecognized Actuarial gain/ (loss) at the end of the year 0.00 0.00 0.00

VI - Amount recognized in Balance Sheet & Related Analysis (Amount ` in Crore)

LEAVE
Particulars PENSION GRATUITY
ENCASHMENT
Present value obligation, 31.03.2024 3440.67 906.39 510.93
Fair Value of Plan Assets, 31.03.2024 (3440.55) (1149.46) 0.00
Difference 0.12 (243.07) 510.93
Unrecognized Transitional Liability 0.00 0.00 0.00
Unrecognized Past Service cost-vested benefits-Carried Forward 0.00 0.00 0.00
Liability Recognized in the Balance Sheet 0.12 *(243.07) 510.93
Negative amount determined under Paragraph 55 of AS-15(R) - - -

212
Schedule 18
"Notes on Consolidated Accounts"

LEAVE
Particulars PENSION GRATUITY
ENCASHMENT
Present value of available refunds and reductions in future contributions - - -
Resulting asset as per Paragraph 59 (b) of AS-15 (R) - *243.07 -

VII-Expense recognized in Profit and Loss Statement (Amount ` in Crore)

LEAVE
Particulars PENSION GRATUITY
ENCASHMENT
Current Service Cost 74.55 70.12 29.61
Interest Cost 185.09 81.31 36.18
Expected return on Plan assets (109.18) (81.30) 0.00
Net Actuarial (Gain)/loss recognized in the year 764.87 (313.20) (24.84)
Past Service Cost-Recognized 0.00 0.00 0.00
Expenses recognized in the statement of profit and loss 915.33 (243.07) 40.95
During the year while considering the defined benefit obligation for the gratuity fund, the actuarial came across that Special Grade
Allowance was being considered in earlier years as part of service cost. Consequent to this, there is surplus in Plan Assets amounting to
Rs.243.07 crores, representing excess of fair value of Plan Assets over Present Value Obligation. Correspondingly, an amount of Rs.243.07
crores has been credited to ‘payment to and provision for employees’ during the year. Figures of previous year are not comparable to that
extent.

VIII-Movement in Net liability to be recognized in Balance Sheet (Amount ` in Crore)

LEAVE
Particulars PENSION GRATUITY
ENCASHMENT

Opening Net Liability 86.48 0.16 501.41

Expenses 915.33 (243.07) 40.95
Contributions/ Benefits paid (1001.69) (0.16) (31.44)
Closing Net Liability /(Asset)
0.12 (243.07) 510.93
(Liability recognized in B/S in current period)

IX - Amount for the Current Period (Amount ` in Crore)

LEAVE
Particulars PENSION GRATUITY
ENCASHMENT

Defined Benefit Obligation 3440.67 906.39 510.93

Plan Assets 3440.55 1149.46 0.00
Surplus/(Deficit) (0.12) 243.07 510.93
Experience adjustments on plan liabilities 494.69 (328.51) (36.69)
Actuarial loss/(gain) due to change in financial assumptions 363.88 20.87 11.85
Experience adjustments on plan assets (93.71) (5.56) 0.00
Net actuarial loss/ (gain) for the year 764.86 (313.20) (24.84)

X - Major Categories of Plan Assets (as percentage of Total Plan Assets)

Particulars PENSION (%) GRATUITY (%)

Government of India Securities 1% 6.04%

State Government Securities 0 41.86%
High Quality Corporate Bonds 0 39.80%
Equity Shares of listed companies 0 2.89%
Funds managed by Insurer 99% 0.74%

213
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
Other- Bank Deposits and CD’s 0 8.67%
Treasury Bills 0 0
Total 100 100.00

XI - Best Estimate of contribution during next year (Amount ` in Crore)

PENSION GRATUITY
Particulars
(Funded) (Funded)

Bank’s best estimate of Contribution during next year 700.00 150.00

Particular Basis of assumption:

Discount rate: Discount rate has been determined by reference to market yields on the balance sheet date on Government
Bonds of term consistent with estimated term of the obligations as per para 78 of AS-15(R).
Expected rate of return on plan assets: The expected return on plan assets is based on market expectations, at the beginning
of the period, for returns over the entire life of the related obligation.

Rate of escalation in salary: The estimates of future salary increases considered in actuarial valuations taking into account
inflation, seniority, promotion and other relevant factors mentioned in paras 83-91 of AS-15R.

Attrition rate: Attrition rate has been determined by reference to past and expected future experience and includes all types
of withdrawals other than death but including those due to disability.

During the year while considering the defined benefit obligation for the gratuity fund, the actuarial came across that special
grade allowance is being considered in earlier years as part of service cost .Consequent to this, there is surplus in plan assets
amounting to Rs 243.07 crores, representing excess of fair value of plan assets over present value obligation. Corresponding
amount of Rs 243.07 Crores has been credited to payment to and provisions of employees during the year. Figures of previous
year are not comparable to that extent.

The Jammu and Kashmir Bank Employees Pension Fund Trust transfers future liability of pension payments to pensioners and
family pensioners by way of purchasing annuities from annuity service providers currently
LIC of India. Annuity is purchased on return of purchase price i.e. upon death of the pensioner purchase price is being credited
back to J K Bank employees’ pension fund Trust. Since the stream of present pension payments has already been transferred
to LIC of India thus actuarial valuation of pensioners and family pensioners has not been carried out.

*The above information is based on the information certified by the actuary except para XI above.

c) Accounting Standard – 17 “Segment Reporting” (Different in consolidated) ( BST )

i) The Bank has recognized business segment as its primary reportable segment under AS-17 classified into treasury,
Corporate/ Wholesale banking, Retail banking and other banking Business. The necessary disclosure is given below:
(Amount ` in Crore)
YEAR ENDED
CONSOLIDATED SEGMENT REPORTING FOR THE QUARTER / YEAR ENDED 31ST MARCH, 2024
31.03.2024 31.03.2023

PARTICULARS (AUDITED) (AUDITED)

1) SEGMENT REVENUE (INCOME)

i) Treasury Operations 2719.30 2406.11
ii) Corporate/Wholesale Banking 2478.21 1847.41
iii) Retail Banking 7944.05 7024.92
(a) Digital Banking 0.08 0.02
(b) Other Retail Banking 7943.97 7024.90
iv) Other Banking Business 106.77 73.93
v) Un-Allocated Business 0.00 0.00
Total 13248.33 11352.37
Less: Inter Segment Revenue 1197.46 1231.90

214
Schedule 18
"Notes on Consolidated Accounts"
YEAR ENDED
CONSOLIDATED SEGMENT REPORTING FOR THE QUARTER / YEAR ENDED 31ST MARCH, 2024
31.03.2024 31.03.2023

PARTICULARS (AUDITED) (AUDITED)

Net Income from Operations 12050.87 10120.47

2) Segment Results
i) Treasury Operations 139.69 102.59
ii) Corporate/Wholesale Banking 1394.89 748.18
iii) Retail Banking 2072.40 2344.41
(a) Digital Banking (0.77) (0.38)
(b) Other Retail Banking 2073.17 2344.79
iv) Other Banking Business 105.34 72.51
v) Un-Allocated Business (1324.25) (1481.65)
Profit/(Loss) from Ordinary Activities (Before Tax) 2388.07 1786.04
Less: Tax Expenses/(credit) 618.17 587.45
Less: Extraordinary Profit/(Loss) 0.00 0.00
Net Profit/(Loss) before share in profit/(loss) of Associates 1769.90 1198.59
Add/(Less): Share in Profit/(Loss) of Associates 1.32 (18.07)
Net Profit/(Loss) After Tax 1771.22 1180.52
3) Segment Assets
i) Treasury Operations 46357.97 43428.66
ii) Corporate/Wholesale Banking 29992.53 26204.19
iii) Retail Banking 78152.90 76276.64
(a) Digital Banking 0.47 0.60
(b) Other Retail Banking 78152.43 76276.04
iv) Other Banking Business 1.18 3.10
v) Un-Allocated Business 0.00 0.00
Total 154504.58 145912.59
4) Segment Liabilities
i) Treasury Operations 405.35 145.18
ii) Corporate/Wholesale Banking 38318.90 35470.86
iii) Retail Banking 103585.14 100397.78
(a) Digital Banking 1.35 0.22
(b) Other Retail Banking 103583.79 100397.56
iv) Other Banking Business 2.47 2.45
v) Un-Allocated Business 0.00 0.00
Total:- 142311.86 136016.27
5) Capital Employed
(Segment assets-Segment Liabilities)
i) Treasury Operations 45952.62 43283.48
ii) Corporate/Wholesale Banking (8326.37) (9266.67)
iii) Retail Banking (25432.24) (24121.14)
(a) Digital Banking (0.88) 0.38

215
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
YEAR ENDED
CONSOLIDATED SEGMENT REPORTING FOR THE QUARTER / YEAR ENDED 31ST MARCH, 2024
31.03.2024 31.03.2023

PARTICULARS (AUDITED) (AUDITED)

(b) Other Retail Banking (25431.36) (24121.52)

iv) Other Banking Business (1.29) 0.65
v) Un-Allocated Business 0.00 0.00
Total :- 12192.72 9896.32

ii) As the Bank does not have any overseas branch there is no requirement as to reporting of Geographical Segment.
d) Accounting Standard – 18 “Related Party Disclosures” (BST )

1. Related Parties (Amount ` in Crore)

J&K Grameen JKB Financial
Items/Related Party Bank Services Ltd. Jammu & Kashmir Asset Reconstruction Limited
(Associate) (Subsidiary)

Balance as on date 1731.94 11.66

Deposits
Maximum Balance
1731.94 23.91
during the year

Balance as on date 11.67* 5.91

Advances
Maximum Balance
48.67 14.33
during the year

Balance as on date 206.31 40.00

Investments
Maximum Balance The Jammu & Kashmir Asset Reconstruction Limited was
206.31 40.00
during the year incorporated jointly by Government of J&K and Jammu &
Kashmir Bank Ltd on 28.04.2017. The Bank has subscribed
Interest Paid 99.22 0.75 capital to the tune of ` 98 lakhs whereas Government
of J&K has subscribed `102 lakh. In the meantime the
promoters have decided to windup the company and the
Interest/Commission Received 0.21 0.47
Bank in turn has approached the Registrar of Companies
(ROC) for removal of the name of the company from the
Sale of Fixed Assets NIL 0.00 register of companies under Section 248 of the Companies
Act, 2013. The application of the Bank is under consideration
Reimbursement on behalf of with ROC.
NIL 0.41
Associate/Subsidiary

Deputation Staff Salary 0.00 0.48

Transfer of Current Assets/

NIL 0.00
Liabilities(Net)
IT Support Services 1.03 0.00

Outstanding with Associate/Subsidiary NIL 0.12

Advances is shown as borrowings from the sponsor bank in shape of SOD, LAD and Perpetual Bonds.
*Rs.11.67 crore is 50 % share of Sponsor Bank for implementation of CBS by JKGB in the form of Investment in Tier II perpetual bonds.

216
Schedule 18
"Notes on Consolidated Accounts"

(Amount in Lakhs)

2. Salary to Key Managerial Person (KMP)

Mr. Mohammad
Mr. Baldev Prakash Mr. Sudhir Gupta Mr. Pratik D Punjabi Shafi Mir
(MD & CEO)* (Executive Director) (CFO) (Company
Secretary)

Period for which post held during FY From 01.04.2023 to From 01.04.2023 to From 01.04.2023 to From 01.04.2023 to
2023-24 31.03.2024 31.03.2024 31.03.2024 31.03.2024

Salary 97.52 40.21 31.05 28.25

Note: Transactions in the nature of Banker-Customer relationship have not been disclosed including those with Key
Management Personnel and relatives of Key Management Personnel, in terms of paragraph 5 of AS 18.
e) Accounting Standard – 19 “Leases” Estate )
The properties taken on lease/rental basis are renewable / cancellable at the option of the Bank.
The lease entered into by the Bank are for agreed period with an option to terminate the leases even during the
currency of lease period by giving agreed calendar months’ notice in writing.
Lease rent paid for operating leases are recognized as an expense in the Profit & Loss account in the year to which it
relates. The lease rent recognized during the year is ` 83.51 crores (previous year being ` 83.57 crores)

f) Accounting Standard – 20 “Earnings per Share” (Different in Consolidated) ( BST )

The Bank reports basic and diluted earnings per equity share in accordance with Accounting Standard 20 – “Earnings
per Share”. Basic Earnings per Share is computed by dividing net profit after tax by the weighted average number of
equity shares outstanding during the year.

Particulars Current Year Previous Year

Number of Equity Shares outstanding at the beginning of the year 1031479861 932886594
Number of Equity Shares issued during the year 69702602 98593267
Number of Equity Shares outstanding at the end of the year 1101182463 1031479861
Weighted average number of equity shares used in computing basic earnings per share 1052047842 963589450
Weighted average number of equity shares used in computing diluted earnings per share 1052047842 963589450
Net profit / (loss) (` in crore) 1771.22 1180.50
Basic earnings per share (`) 16.84 12.25
Diluted earnings per share (`) 16.84 12.25

g) Accounting Standard – 21 “Consolidated Financial Statements” ST

The Bank has a fully owned subsidiary company “JKB Financial Services Ltd.”. The investment towards the capital
of subsidiary company is ` 40.00 Crores (Previous Year ` 40.00 Crores). The consolidated financial statements are
placed accordingly in terms of AS 21.

h) Accounting Standard – 22 “Accounting for Taxes on Income” Standalone (Different in consolidated) ( BST )
During the year, the Bank has debited to Profit & Loss Account ` 589.75 crore (Previous Year ` 531.01 crore)
on account of current tax. The current tax has been calculated in accordance with the provisions of Income Tax
Act, 1961.
The Bank has exercised the option of lower tax permitted under Section 115BAA of the Income-tax Act, 1961 as
introduced by the Taxation Laws (Amendment) Act, 2019 from the financial year 2019-20 onwards

ii) Deferred Tax: BST

During the year, ` 28.42 crore has been debited to Profit & Loss Account (Previous Year debit ` 56.44 crore) on
account of deferred tax.

217
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
The major components of DTA and DTL are given below (Amount ` in Crore)
Current Year Previous Year

Deferred Tax Deferred Tax Deferred Tax Deferred Tax

Timing Difference
Asset Liabilities Asset Liabilities
Depreciation on Assets 0.05 6.27 0.05 18.88
Leave Encashment/Gratuity/Pension/Bonus 128.68 0.00 126.20 0.00
Special Reserve 0.00 37.16 0.00 31.00
Wage Revision 0.00 0.00 30.53 0.00
Bad & Doubtful Assets 69.96 0.00 76.00 0.00
Total 198.69 43.43 232.78 49.88

iii) During the year, Bank has transferred ` 24.50crores to Special Reserve created u/s 36 (1) (viii) of Income Tax
Act, 1961, and consequential effect in Deferred Tax Liability amounts to ` 6.17crores has been created on this
amount.

i) Accounting Standard – 23 “Accounting for Investments in Associates in CFS” BST

The Bank has a sponsored Bank “J&K Grameen Bank”. The investment towards the capital of associate concern is
` 217.97crores (Previous Year ` 34.01crores).
The consolidated financial statements are placed accordingly in terms of AS 23.

j) Accounting Standard – 28 “Impairment of Assets” Estate

Majority of fixed assets of the bank are considered as corporate assets and not cash generating assets and in
the opinion of the management, there is no material impairment in the fixed assets regarding other fixed assets
generating cash there is no material impairment. As such no provision is required as per AS-28.

k) Accounting Standard – 29 “Provisions, Contingent Liabilities and Contingent Assets” BST

i) Description of Contingent Liabilities BST

Sr.
Particulars Brief Description
No.

The Bank is a party to various proceedings in the normal course of business. The Bank does
Claims against the Bank not not expect the outcome of these proceedings to have a material adverse effect on the Bank’s
1
acknowledged as debts financial conditions, result of operations or cash flows. The Bank is also a party to various
taxation matters in respect of which appeals are pending.

Liability on partly paid-up

2 This represents amount remaining unpaid towards liability for partly paid investments.
investments

The Bank enters into foreign exchange contracts in its normal course of business to exchange
Liability on account of
currencies at a pre-fixed price at a future date. Forward exchange contracts are commitments
3 outstanding forward exchange
to buy or sell foreign currency at a future date at the contracted rate. The derivative
contracts
instruments become favourable or unfavourable as a result of fluctuations in market rates.

As a part of its commercial banking activities, the Bank issues documentary credit and
Guarantees given on behalf
guarantees on behalf of its customers. Documentary credits such as letters of credit enhance
of constituents, acceptances,
4 the credit standing of the Bank’s customers. Guarantees generally represent irrevocable
endorsements and other
assurances that the Bank will make payments in the event of the customer failing to fulfill its
obligations
financial or performance obligations

These include: a) Bills rediscounted by the Bank; b) Capital commitments; c) Investment

Other items for which the Bank
5 purchases pending settlement; d) Amount transferred to the RBI under the Depositor
is contingently liable
Education and Awareness Fund (DEAF); e) Other sundry contingent liabilities

The Contingent Liabilities mentioned above are dependent upon the outcome of Court/arbitration/ out of Court settlements,
disposal of appeals, the amount being called up, terms of contractual obligations, devolvement and raising of demand by
concerned parties, as the case may be.

218
Schedule 18
"Notes on Consolidated Accounts"
ii) Movement of provisions against Contingent Liabilities (B
ST)
The movement of provisions against contingent liabilities given in the table below:
(Amount ` in Crore)
Particulars Current Year Previous Year
Opening balance 16.62 26.45
Additions during the year 5.89 0.68
Amount utilised/reversed during the year 0.13 10.51
Closing balance 22.38 16.62

16. Additional Disclosures ( ESTATE )

a. Payment to Micro, Small & Medium Enterprises under the Micro, Small & Medium Enterprises Development Act,
2006

There have been no reported cases of delayed payments of the principal amount or interest due thereon to Micro,
Small & Medium Enterprises.

b. Office Accounts ( Branche

Reconciliation/adjustment of inter-bank/inter-branch transactions, branch suspense, Government Transactions,
NOSTRO, System Suspense, Clearing, and Sundry Deposits is in progress on an ongoing basis. The impact, in the
opinion of the management of the un-reconciled entries, if any, on the financial statements would not be material.

c. Provision on accounts covered under the provisions of Insolvency and Bankruptcy Code (IBC): IAPM )
In terms of RBI letter no. DBR,No.BO.15199/21.04.048/2016-17 dated June 23, 2017 and Letter no. DBR.
BP.1908/21.04.048/2017-18 dated August 28, 2017 for the accounts covered under the provisions of Insolvency
and Bankruptcy Code (IBC), the Bank is holding total provision of ` 126.55 crore (Aggregate provision of RBI List
1 and List 2 accounts) as on March 31, 2024 (100% of Gross NPA advances). (Previous year ` 129.35 crore {100%
of total outstanding})

d. During the year ended March 31, 2024, the Bank has made provision of ` 263 crore towards wage revision on
account of 12th Bi-Partite Wage Settlement effective from November 01, 2022 on ad-hoc basis. The same has been
accounted for as ‘Payments to and provisions for employees’ under “Schedule 16: Operating Expenses.” ( HR
D )
e. Previous year figures have been regrouped/reclassified/ recasted, wherever necessary, to conform to current
year classification.

f. Miscellaneous Income: BST – Saleem Sb )

During the year the following incomes earned (under the head Miscellaneous Income) were more than 1% of the
Total Income: (Amount ` in Crore)
S No Income Category Amount

1. Recovery in Technically Written Off Accounts 134.17

2. Income On Card Business 148.17

g. Other Liabilities and provisions/ Other Assets: BST – Saleem Sb )

Following items under the head others in Schedule 11 – Other Assets exceeds 1% of the total assets
(Amount ` In Crores)
S No Particulars Amount

1. Dues From Government of J&K on account of Pension disbursed to retirees 3253.69

2. Investment in NABARD Refinance 2476.78
3. Investment in RIDF Refinance 2417.56
4. Investment in SIDBI Refinance 3559.49

h. Tax paid in advance/Tax deducted at source includes amount adjusted by Income Tax Department in respect
of various disputed demands. Based on the favourable appellate orders and interpretation of law, no further
provision has been considered by the management in respect of the disputed demands. BST

219
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Schedule 18
"Notes on Consolidated Accounts"
i. Fixed Assets ESTAT
• Documentation formalities are pending in respect of certain immovable properties held by the bank valued at
8.90 Crore (previous year 9.20 crores). In respect of immovable properties valued at 47.24 Crore (previous
year 49.89 crores) as on 31.03.2024 Bank holds agreement to sell along with the possession of the properties.
• Properties not having clear title/lease deeds for freehold & lease lands of the Bank:-

Value of property as
S.No Particulars Category Area. on 31.03.2024
(Crore)
1 Premises of Business Unit Vashi, Mumbai (1st Floor) NR-RCC 5400 Sq. ft. 7.57
2 Land at Currency Chest, Budgam Own land 4 Kanals & 05 Marlas. 0.14
3 Ansal Plaza. NR-RCC 17925 Sq. ft. 47.24
4 Land at Kargil. Own land 1 Kanal 4 Marlas. 0.99
5 Land at Kulgam. Own land 2 Kanals. 0.2
TOTAL 56.14

• The Bank during the Financial Year 2023-24 has revisited revaluation of its 51 freehold land and offices/
buildings based on valuations as on 31.03.2023 made by the independent valuers of the Bank resulting
into net appreciation of ` 17.92 Crores credited to the revaluation reserve and a net amount of ` 0.06
crores on account of revaluation has been drawn down from P/L account as it was earlier credited to
P/L Account.
• Further, pursuant to the revised accounting standard-10 “Property, plant and equipment “applicable
from 1st April 2017, depreciation of 30.09 Crores (previous year ` 20.54 Crores) on the revalued portion of
the fixed assets (being Premises & Land) has been transferred from the Revaluation reserve to General/
Revenue reserve and an amount of 0.18 Crore has been transferred from Revaluation Reserve to General
Reserve on account of disposal of a previously revalued asset.
• Further, Depreciation on Bank’s property includes amortization in respect of leased properties amounting
to ` 0.76 Crores (previous year ` 0.76 crores).

j. Corporate Social Responsibility (CSR)

Pursuant to Section 135 of the Companies Act 2013, specified companies covered under section 135(1) of the
Companies Act 2013 are required to spend at least 2% of the average net profits made during the three immediately
preceding financial years in pursuance of their Corporate Social Responsibility Policy. Accordingly, the Bank was
required to spend an amount of ` 18.91 crores (Previous Year ` 1.18 crores) on CSR activities during FY 2023-24,
against which the Bank has spent an amount of ` 18.91 crores (Previous year ` 1.18 crores).

k. Provision Coverage Ratio (PCR) BST

Provision coverage ratio as on March 31, 2024 is 91.58% (previous year 86.20%) without taking into account the
floating provision of Rs.124.48 Crores held by the Bank as on March 31, 2024 which is part of Tier-II Capital.

l. Investor Complaints Boar

The details of investor complaints for the year ended March 31, 2024 are as under:
S No Particulars Number
1 No of complaints pending at the beginning of the financial year Nil
2 No. of complaints received during the financial year 304
3 No. of complaints disposed during the financial year 304
4 No. of complaints pending at the end of the financial year 0

m. In accordance with the approved accounting policy in respect of intangible assets and in compliance with Section
15(1) of Banking Regulation Act 1951, The Bank has written off the entire amount of intangible assets amounting
to Rs. 77.68 crores (Previous year Rs.35.72 crore)

220
Schedule 18
"Notes on Consolidated Accounts"

n. Proposed Dividend BST

The Board of Directors at its meeting held on May 04, 2024 proposed a dividend of ` 2.15 per share (previous
year Re 0.50 per share), subject to approval of the members at the ensuing Annual General Meeting. Effect of the
proposed dividend has been reckoned in determining capital funds in the computation of capital adequacy ratios
as at March 31, 2024.

For and on behalf of the Board

Baldev Prakash R. K. Chhibber Naba Kishore Sahoo Umesh Chandra Pandey Anil Kumar Goel Anand Kumar
Managing Director & CEO Director Director Director Director Director
DIN: 09421701 DIN: 08190084 DIN: 07654279 DIN: 01185085 DIN: 00672755 DIN: 03041018

Sudhir Gupta Shahla Ayoub Fayaz Ahmad Ganai Mohammad Shafi Mir
Executive Director Director Chief Financial Officer Company Secretary
DIN: 09614492 DIN: 09834993

Place : Srinagar
Dated: 4th May, 2024

In terms of our report of even date annexed

FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160
UDIN: 24541550BKAEUS9046 UDIN: 24089562BKCMZM9295 UDIN: 24080160BKCSJA6004

Place : Srinagar
Dated: 4th May, 2024

221
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Consolidated Cash Flow Statement

for the year ended 31st March, 2024
YEAR ENDED YEAR ENDED
31.03.2024 31.03.2023
(AUDITED) (AUDITED)
` ‘000’ Omitted ` ‘000’ Omitted

A CASH FLOW FROM OPERATING ACTIVITIES (8,525,535) (4,071,273)

B CASH FLOW FROM INVESTING ACTIV ITIES (2,572,597) (1,235,136)

C CASH FLOW FROM FINANCING ACTIVITIES 4,074,334 6,375,936

NET CHANGE IN CASH AND CASH EQUIVALENTS (7,023,798) 1,069,527

D CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 88,988,595 87,919,068

E CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 81,964,797 88,988,595

A. CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit after Taxes 17,712,245 11,805,170

Add : Provision for Taxes 6,181,707 5,874,477

Net profit before taxes (i) 23,893,952 17,679,647

Adjustment for :

Depreciation charges 2,176,231 1,576,556

Provision for NPA’s (736,088) (125,131)

Provision on Standard Assets (1,146,839) 632,352

Depreciation on investment 458,561 (125,277)

Provision for Non-Performing investment 758,834 834,572

Other provisions 47,193 (600,518)

Interest paid on subordinate Bonds (Financing Activities) 2,849,975 2,217,163

Total Adjustment (ii) 4,407,867 4,409,717

Operating profit before change in Operating assets & liabilities
28,301,819 22,089,364
( i ) + ( ii )
Adjustment for changes in Operating Assets & Liabilities

Increase / (Decrease) in Deposits 127,360,567 73,244,132

Increase / (Decrease) in Borrowings (73,043) 4,885

Increase / (Decrease) in Other liabilities & provisions (65,083,812) 55,884,501

(Increase) / Decrease in investments (1,699,928) (10,660,759)

(Increase) / Decrease in Advances (114,053,764) (118,437,829)

(Increase) / Decrease in Other Assets 21,386,379 (21,644,620)
Net Cash flow from Operating activities ( iii ) (32,163,601) (21,609,690)
Cash generated from operation ( i + ii + iii ) (3,861,782) 479,674
Less : Tax paid 4,663,753 4,550,947

TOTAL : ( A ) (8,525,535) (4,071,273)

222
Consolidated Cash Flow Statement
for the year ended 31st March, 2024
B. CASH FLOW FROM INVESTING ACTIVITIES :

a) Fixed Assets (1,856,919) (1,235,136)

b) Investment in Subsidiary/Sponsored Institution (715,678) -

TOTAL : ( B ) (2,572,597) (1,235,136)
C. CASH FLOW FROM FINANCING ACTIVITIES:
a) Share Capital 69,703 98,593
b) Share Application Money - (935,000)
b) Share Premium 7,370,346 4,219,506
c) Tier I & II Bonds - 5,210,000
d) Dividend Paid (515,740) -
e) Interest Paid on Subordinate Debt (2,849,975) (2,217,163)

TOTAL : (C) 4,074,334 6,375,936

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE

D.
YEAR (1st April)

a) Cash in hand & Balance with R.B.I 77,940,577 77,502,028

b) Balance with Banks & Money at Call & Short Notice 11,048,018 10,417,040

TOTAL : (D) 88,988,595 87,919,068

E. CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

a) Cash in hand & Balance with R.B.I 72,500,801 77,940,577

b) Balance with Banks & Money at Call & Short Notice 9,463,996 11,048,018

TOTAL : (E) 81,964,797 88,988,595

For and on behalf of the Board

Baldev Prakash R. K. Chhibber Naba Kishore Sahoo Umesh Chandra Pandey Anil Kumar Goel Anand Kumar
Managing Director & CEO Director Director Director Director Director
DIN: 09421701 DIN: 08190084 DIN: 07654279 DIN: 01185085 DIN: 00672755 DIN: 03041018

Sudhir Gupta Shahla Ayoub Fayaz Ahmad Ganai Mohammad Shafi Mir
Executive Director Director Chief Financial Officer Company Secretary
DIN: 09614492 DIN: 09834993

Place : Srinagar
Dated: 4th May, 2024
In terms of our report of even date annexed
FOR GUPTA GUPTA & FOR J C R & CO LLP FOR LUNAWAT & CO
ASSOCIATES LLP Chartered Accountants Chartered Accountants
Chartered Accountants FRN: 105270W/W100846 FRN: 000629N
FRN: 001728N/N500321

CA. Nakul Saraf CA. Rakesh Kaushik CA. Ramesh K Bhatia

Partner Partner Partner
M.No. 541550 M.No. 089562 M.No. 080160
UDIN: 24541550BKAEUS9046 UDIN: 24089562BKCMZM9295 UDIN: 24080160BKCSJA6004

Place : Srinagar
Dated: 4th May, 2024

223
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Basel III - Pillar 3 Disclosures

as at March 31, 2024

“The Reserve Bank of India (RBI) vide its circular under reference DOR.CAP.REC.15/21.06.201/2023-24 Dated May
12, 2023 on ‘Basel-III Capital Regulations’ (‘Basel III circular’) requires banks to make Pillar 3 disclosures including
leverage ratio and liquidity coverage ratio under the Basel III Framework. These disclosures are available on J&K
Bank’s website under the ‘Regulatory Disclosures’ section. The link to the Basel III Pillar 3 Disclosures as on March
31, 2024 is given below:
https://www.jkbank.com/pdfs/basel/Basel-III_Disclosure%20quarterly%20Mar_24.pdf

The Regulatory Disclosures contain the following:

Qualitative and quantitative Pillar 3 disclosures:

• Scope of application

• Capital adequacy

• Credit risk

• Disclosure for portfolio subject to Standardised Approach

• Credit risk mitigation

• Asset Securitisation

• Market risk in trading book

• Operational Risk

• Interest Rate risk in the banking book (IRRBB)

• General Disclosure for Exposures Related to Counterparty Credit Risk

• Composition of Capital

• Composition of Capital -Reconciliation of Regulatory Capital

• Main features of regulatory capital Instrument

• Leverage Ratio.

224
Report on Corporate Governance
Bank’s philosophy on Corporate Governance • To adopt the best standards for corporate governance,
J&K Bank has been committed to all the basic tenets of business ethics and risk management.
good Corporate Governance well before the Securities • To vigorously promote financial inclusion as a business
and Exchange Board of India and the Stock Exchanges proposition to harness the potential at the bottom of
mandated these. It is our endeavor to go beyond the letter the pyramid.
of Corporate Governance codes and apply it innovatively in a
more meaningful manner, thereby making it relevant to the GOVERNANCE STRUCTURE OF BANK
organization that is operating in a specific environment. The Board oversees /supervises the standards of corporate
governance of the Bank. The respective vertical heads
In line with its vision, Bank wants to use Corporate Governance report to the Executive Director and who in turn reports to
innovatively in a transitional economy like Jammu and the Managing Director & CEO (MD & CEO) of the Bank. The
Kashmir. The Bank wants to use Corporate Governance as MD & CEO reports to the Board of the Bank. The Bank has
an instrument of economic and social transformation. Given in place various Board Level Committees to carry out the
the fact that J&K Bank is seen as a great success of “public- object oriented review of specific matters. The Bank has also
private partnership”, our Bank as a business is expected to constituted various executive committees to inter alia deal
play a pivotal role in social transformation of the economy. with routine, operational and administrative matters, and
This lends urgency to implementation of good governance review various matters before its submission to the Board /
practices which go beyond the Corporate Governance code. Committees.

We, as the prime corporation of Jammu and Kashmir

and Ladakh, have a focused interest in making the Union
Territories a safe place for business. Bank has a key role
to play in providing public and private services, financial
infrastructure and employment. As such, the efficiency and
accountability of the corporation is a matter of both private
and public interest and governance, therefore, comes at the
top of the agenda. The fact that the Bank is majorly owned
by the Government of UT of J&K and UT of Ladakh but
professionally managed to take care of interests of all stake
holders which include sizable number of other investors,
makes governance critical. For us, Corporate Governance is
concerned with the systems of laws, regulations and practices,
which will promote enterprise, ensure accountability and
trigger performance. The Bank, for one, stands for being
more accountable, practice self-policing and make financial
transactions transparent and constitutional.

VISION
“Pioneering the economic and social transformation”
To become a committed partner in fostering economic and
social transformation across the country through a deep
commitment to value creation for all our stakeholders, while
continuing to build on our historic business relationship with
Jammu & Kashmir and Ladakh.

MISSION
• To acquire an enhanced business footprint across
geographies and emerge as a prominent national brand
in the financial sector.
• To position the Bank as the “Most Preferred Bank”
for Customer focus, Operational Excellence and High
Integrity towards one and all stakeholders.
• To be the best-in-class financial intermediary, BOARD OF DIRECTORS
leveraging our digital and physical banking channels; The responsibility for good governance rests on the
• To observe customer centricity through service Corporate Board which has the primary duty of ensuring
excellence, integrity and transparency, and a that principles of Corporate Govenance, both as imbibed in
comprehensive range of innovative products and law and regulations and those expected by stakeholders,
services responsive to customer needs. are religiously and voluntarily complied with and the
• To be a lean, learning and efficient banking organization stakeholder’s interests are kept at utmost high level.
focusing on prudent, sustainable, profitable growth and
value creation. Independent Directors possess requisite qualifications and

225
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

experience which enables them to contribute effectively of the Bank and follow highest degree of business ethics,
to the Bank. The Board confirms that in its opinion, the transparent practices and code of good governance amidst
independent directors fulfill conditions specified in relevant cordial environment.
regulations and are independent of the management.
SELECTION AND APPOINTMENT OF DIRECTORS.
As on date of this report, the Board consists of twelve (12) The process of selection and appointment of directors of
Directors as detailed hereunder: the Bank is carried out in accordance with applicable legal
S. No. Category Name of Director framework and in line with Bank’s Board approved Policy on
“Appointment of Directors”.
Mr. Baldev Prakash (M D and CEO)
1 Executive Directors and Mr. Sudhir Gupta (Executive
FIT AND PROPER CRITERIA FOR DIRECTORS OF THE
Director)
BANK
Dr. Pawan Kotwal, IAS, Mr. The Nomination and Remuneration Committee (NRC) of the
Non-Executive
Santosh Dattatraya Vaidya, IAS, Bank evaluates and recommends to the Board the ‘fit and
2 Non-Independent
Dr. Mandeep K Bhandari, IAS and
Directors proper’ status of the director as per applicable laws, before
Mr. R K Chhibber
considering his / her candidature for appointment / re-
Dr. Rajeev Lochan Bishnoi, Mr. appointment as a director of the Bank and annually i.e. as at
Non-Executive Naba Kishore Sahoo, Mr. Umesh 31st March every fiscal year. The fit and proper criteria of the
3 Independent Chandra Pandey, Mr. Anil Kumar
members of NRC is carried out by the Board.
Directors Goel, Mr. Anand Kumar and Ms.
Shahla Ayoub The directors of the Bank severally sign a deed of covenant,
which binds them to discharge their responsibilities to
None of the above Directors are related to each other. the best of their abilities, in order to be eligible for being
During the FY 2023-24, there were following changes in the appointed / re-appointed as a director. The Bank also obtains
composition of the Board: a declaration and undertaking on the ‘fit and proper’ criteria
• Dr. Pawan Kotwal, IAS (DIN: 02455728) was appointed as per regulatory requirements, from all the directors,
as a Rotational Director on the Board of the Bank w.e.f. annually.
July 24, 2023.
• Mr. Santosh Dattatraya Vaidya, IAS (DIN: 05340193) was ROLE OF INDEPENDENT DIRECTORS
appointed as Govt. Nominee Director w.e.f August 22, The independent director is saddled with the responsibility
2023. to bring in an independent assessment on the Board’s
• Dr. Mandeep K Bhandari, IAS (DIN: 02455728) was deliberations, specifically on the matters relating to Bank’s
appointed as a Rotational Director on the Board of the Business strategy, its performance, risk analysis, human
Bank w.e.f. October 20, 2023. resources management, governance, key appointments, and
standards of conduct. The Independent directors bring an
FUNCTIONS OF THE BOARD impartial view in evaluating performance of the Board and
Your Bank’s Board plays a pivotal role in ensuring good the management and review management’s performance in
governance. Its style of functioning is democratic. The meeting their goals and objectives. Independent directors
Members of the Board have complete freedom to express protect the interests of all the stakeholders, especially the
their opinions and decisions are taken on the basis of a minority shareholders.
consensus arrived at after detailed discussions. The Members
are also free to bring up any matter for discussion at Board At present Bank has Dr. Rajeev Lochan Bishnoi, Mr. Naba
Meetings. Kishore Sahoo, Mr. Umesh Chandra Pandey, Mr. Anil Kumar
Goel , Mr. Anand Kumar and Ms. Shahla Ayoub as its
The day-to-day management of the Bank is conducted by Independent Directors.
the Managing Director & CEO, subject to the supervision and
control of the Board of Directors. The functions performed DATABASE OF INDEPENDENT DIRECTORS
by the Board of the Bank for efficient and effective utilisation The independent directors of the Bank are fully compliant
of resources at their disposal to achieve the goals visualized, to the provisions of the Companies (Appointment and
inter-alia, include setting Corporate Missions, laying down Qualification of Directors) Rules, 2014, with respect to
Corporate Philosophy, formulation of Strategic and other registering their name in the online database of independent
Business Plans, laying down of control measures and directors and qualifying the online proficiency self-assessment
compliance with Laws and Regulations. test for independent directors, wherever applicable.

BOARD PROCEDURE ROLE OF MANAGING DIRECTOR AND CHIEF EXECUTIVE

All the major issues included in the agenda for discussion OFFICER (MD & CEO)
in the Board are backed by comprehensive background Mr. Baldev Prakash is the MD & CEO of the Bank. He reports
information to enable the Board to take informed decisions. to the Board and is conferred with powers of managing
Agenda papers are generally circulated among the Members the affairs of the Bank, under the overall superintendence,
seven working days prior to the meeting of the Board. control, guidance, and direction of the Board. As the MD &
Also, the Board agenda contains the Action Taken Report CEO of the Bank, he has the authority to perform all such
(ATR) of all the decisions taken and directions given at the acts, deeds, matters and things, which he may consider
previous Board Meeting. The Members of the Board exercise necessary or appropriate to perform, in the business
due diligence in performance of the functions as Directors interest of the Bank. He oversees business operations, drives
strategic growth and is responsible for overall performance

226
of the business of the Bank. The actionable arising out of the meetings of the Board /
committees are thereafter dealt with in accordance with
Mr. Baldev Prakash is also a Key Managerial Personnel of the the Bank’s framework for monitoring and implementation of
Bank, in terms of the provisions of Section 203(1) read with directions of the Board / committees.
Section 2(51) of the Companies Act, 2013 and Rule 8 of the
Companies (Appointment and Remuneration of Managerial Framework for Monitoring and Implementation of the
Personnel) Rules, 2014. Directions of the Board.
The Bank has formulated and adopted a “framework for
ROLE OF EXECUTIVE DIRECTOR (ED) monitoring and implementation of directions of the Board
Mr. Sudhir Gupta is the Executive Director (ED) of the Bank /committees”. In terms of this framework, actionables
and reports to the MD & CEO. He is, inter alia, responsible emanating from the deliberations at the meetings and
for overseeing the functions of Board Secretariat, Central actionables emanating from the agenda notes are periodically
Banking Operations, Consumer & Commercial Banking and monitored and reviewed by means of Action Taken Reports
Corporate Banking, Finance, Strategy and IT (Excluding (ATR), until their closure/compliance.
Business Process Re-Engineering), Treasury Operations and
Government Banking & Subsidiary Management. Minutes of the Meetings
The draft minutes are circulated to the members of the
Mr. Sudhir Gupta is also a Key Managerial Personnel of the Board /committee, for their comments within the prescribed
Bank, in terms of the provisions of Section 203(1) of the timelines. The minutes, after incorporating the comments, if
Companies Act, 2013 read with Section 2(51) of the Act and any received from the Members of the Board / Committees,
Rule 8 of the Companies (Appointment and Remuneration of are again circulated to the Members for confirmation and
Managerial Personnel) Rules, 2014. are placed at the next meeting for noting and signing by the
chairperson of the respective/previous Meeting. In case of
MEETINGS OF THE BOARD / COMMITTEES business exigencies or urgency of matters, resolutions are
Framework for Conduct of Meetings of the Board / also passed by the Board / Committees through circulation
Committees with the approval of the respective chairperson. The
The Bank has formulated and adopted a framework for resolution passed by circulation is noted at the next meeting
conduct of meetings of the Board and its Committees. The of the Board / committee.
said framework provides guidance on matters relating to
administration of meetings by ensuring standardization in FREQUENCY OF BOARD MEETINGS
the formats used for preparation of agenda item list, agenda During the year under review, Sixteen (16) Board Meetings
notes, minutes and circular resolutions and adopting best were held, in due compliance with statutory provisions, on
practices from a compliance and governance perspective. the following dates:
27.04.2023, 04&05.05.2023, 30.05.2023, 20.06.2023,
Agenda for the Meetings 15.07.2023, 24.07.2023, 16.08.2023, 25.08.2023,
The agenda notes / presentations are presented in a manner, 26.09.2023, 20.10.2023, 20.11.2023, 15.12.2023, 20.01.2024,
so as to facilitate informed decision making. Members of the 08.02.2024, 09.03.2024, 23.03.2024.
Board / committees are free to recommend inclusion of any
matter as part of the agenda for the meetings. ATTENDANCE AT BOARD MEETINGS
The names of Directors, their attendance at Board Meetings
Post Meeting Follow Up Mechanism during the year, attendance at the last AGM and details of
Important decisions taken and suggestions given by the other Directorships & Board Committee memberships held by
Board and its committees are communicated to the relevant them as on March 31, 2024 are set out in the following table:
departments for their information and necessary action.

227
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

No. of Directorships
Board Meetings Name of
Whether
attended during other listed
Attended
the year/ tenure entities where No. of other
AGM held on
Name of Director Indian Public Other a person is a Committee
24.08.2023
Indian Public Companies Companies Director and Memberships
Other
Companies category of
Companies
Directorships

Govt./RBI Nominee Directors

Mr. Baldev Prakash

16/16 Y 01 -- -- --
(DIN: 09421701)

Mr. Santosh Dattatraya Vaidya,

IAS (DIN: 05340193) 08/09 Y NA1 -- -- --
(From 22.08.2023)

Non-Executive Non-Independent Directors

Dr. Pawan Kotwal, IAS (DIN:

02455728) 05/10 Y NA1 -- -- --
(From 24.07.2023)

Dr. Mandeep K Bhandari, IAS

(DIN: 02455728) 03/06 NA2 -- -- -- --
(From 20.10.2023)

Mr. R. K. Chhibber
15/16 Y -- -- -- --
(DIN: 08190084)

Executive Director

Mr. Sudhir Gupta

16/16 Y -- -- -- --
(DIN: 09614492)

Non-Executive Independent Directors

Dr. Rajeev Lochan Bishnoi (DIN:

16/16 Y -- -- -- --
00130335)

Mr. Naba Kishore Sahoo (DIN:

16/16 Y -- -- -- --
07654279)

Mr. Umesh Chandra Pandey

16/16 Y -- 03 -- --
(DIN: 01185085)

Mr. Anil Kumar Goel

16/16 Y -- 02 -- --
(DIN: 00672755)

Mr. Anand Kumar

16/16 Y -- -- -- --
(DIN: 03041018)

Ms. Shahla Ayoub

15/16 Y -- -- -- --
(DIN: 09834993)

1. Mr. Santosh Dattatraya Vaidya, IAS and Dr. Pawan Kotwal, IAS are Directors who are in full time employment of Govt. of UT
of J&K & Ladakh and are also on the Board of various PSU’s of UT of J&K and Ladakh.
2. On the date of the AGM, the concerned Director was not on the Board of the Bank.

228
BRIEF PROFILE OF DIRECTORS and Environment, and Revenue, Planning & Monitoring
J&K Bank’s diverse and rich culture is abundantly evident Department in UT of Ladakh.
in its Board Members, who provide direction to the Bank in
order to achieve its vision. A brief profile of our eminent During his term as Principal Secretary, Dr. Kotwal played a
Board Members is as under: crucial part in bringing out crucial reforms and initiatives
in health and medical education sector. He spearheaded
Mr. Baldev Prakash (MD & CEO) the efforts to improve health care infrastructure, enhance
DIN: 09421701 medical education facilities, and promote the wellbeing of the
Subsequent to splitting of the post of Chairman & Managing people of Ladakh.
Director, Mr. Baldev Prakash assumed charge as the first
Managing Director and Chief Executive Officer (MD & CEO) His accomplishments in the fields of forest, ecology,
of the Bank. Having completed graduation in economics and environment, and revenue are equally admirable, portraying
post-graduation in history, Mr. Prakash continued pursuit his unflinching commitment to sustainable development and
of professional excellence during his service career with good governance.
State Bank of India by accomplishing multiple degrees and
diplomas offered by the Indian Institute of Banking and Mr. Santosh Dattatraya Vaidya, IAS
Finance like CAIIB, Diploma in Treasury, Investment and Risk DIN: 05340193
Management, Diploma in International Banking and Finance,
thus bringing a diverse wealth of experience and expertise Santosh D. Vaidya has a rich experience in public service
spanning over three decades with the country’s largest bank at the state, federal, and international settings. During
to the J&K Bank’s maiden position of Managing Director & his undergrad studies at Indian Institute of Technology at
CEO. Kharagpur, he earned the Silver Medal for his academic
performance. He has completed Masters programmes in
Prior to his appointment as MD & CEO of J&K Bank Ltd., he Economics from IGNOU – Delhi and in International Public
was the Chief General Manager, Digital & Transaction Banking Policy from the Johns Hopkins University, USA.
Marketing at State Bank of India (SBI), Corporate Centre,
Mumbai. Having joined SBI in the year 1991 as a Probationary He transitioned from the IPS to the IAS in 1998 and then
Officer, Mr. Prakash has effectively spearheaded multifarious served in varied assignments in Arunachal Pradesh, Goa,
and pivotal functions as Regional Manager responsible for Delhi, Andaman & Nicobar islands, and Jammu and Kashmir.
over 50 branches, DGM (Business & Operations) responsible After his district postings, Santosh contributed to policy
for over 200 branches, General Manager (Network) in formulation in education and social welfare sectors in Goa.
Maharashtra Circle responsible for over 400 branches and While serving in the water utility and the municipal council
finally as Chief General Manager (Digital & Transaction in Delhi, he gained rich experience of project development in
Banking Marketing) responsible for framing policy and infrastructure.
strategy for developing and providing digital and transaction
banking services to all corporate clients of the Bank. As the staff officer to CM – Delhi, he supported judicious
decision-making and coordination of flagship initiatives.
Besides, the national level knowledge and experience of During his stint in the Prime Minister’s Office, Santosh
policy making and strategizing in critical areas of banking at contributed to policy formulation and project monitoring in
SBI, Mr. Prakash has international exposure of successfully the energy and infrastructure sectors. He was instrumental
handling remittances business including treasury operations in rolling out the rooftop solar program of Renewable Energy
at Muscat (Sultanate of Oman). Ministry.

Mr. Prakash took over as Managing Director and Chief While serving as a Senior Advisor of the World Bank at
Executive Officer (MD & CEO) of J&K Bank Limited w.e.f Washington DC, Santosh gained insights into multilateral
30th December, 2021. During his incumbency as Managing finance and the Bank’s fiduciary policies on financing,
Director and Chief Executive Officer (MD & CEO) of J&K Bank environmental, social, and governance aspects. He also
Limited, Mr. Prakash was elevated to the position of Deputy played a key role in coordinating India’s strategic initiative in
Managing Director (DMD) in his parent organization (State Andaman & Nicobar islands.
Bank of India) on 13th June, 2023.
During his current assignment in Jammu and Kashmir,
He is also on the Board of JKB Financial Services Limited. Santosh focusses on public finance and fiscal policies for
enhancing efficiency and development impact. He has
Dr. Pawan Kotwal, IAS received the national award for his work in the disability
DIN: 02455728 sector and the Election Commission’s certificate for his work
Dr. Pawan Kotwal, a 1994 Batch IAS officer (of in Delhi.
erstwhile Arunachal Pradesh-Goa-Mizoram and Union
Territory (AGMUT) cadre of Indian Administrative Service) Santosh keenly follows political economy in China and Central
is at present serving as Advisor to Lieutenant Governor of Asia and has written articles on the challenges in renewable
Ladakh. energy and water management. Beyond his professional
pursuits, he is passionate about jogging and trekking.
He brings to the fore a wealth   of Administrative acumen
and proficiency having previously served as Principal
Secretary for Health and Medical Education, Forest , Ecology

229
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Dr. Mandeep K Bhandhari, IAS Dr. Rajeev Lochan Bishnoi

DIN: 07310347 DIN: 00130335
Dr. Mandeep K Bhandari, IAS is 2001 AGMUT (Arunachal Dr. Rajeev Lochan Bishnoi, 64, is a Finance, Banking, and
Pradesh-Goa-Mizoram-Union Territory) cadre IAS officer. He Governance practitioner specialising in governance and risk
completed his MBBS with Gold Medal from Dayanand Medical processes for improving the overall financial health.
College, Ludhiana, Punjab University and Chandigarh.
Having rich experience in public life and concern for improving
Dr. Bhandari at present is Principal Secretary to Hon’ble governance in the country, he was made a member of the 10th
Lieutenant Governor of UT of J&K and is also holding charge Audit Advisory Board of the Comptroller & Auditor General of
of CEO Amarnathji Shrine Board. He has to his credit an India, which ended on 5th April, 2023. Now, he is reappointed
administrative and professional expertise of more than two to the 11th Audit Advisory Board of CAG, effective 13th April,
decades. 2023, for the next two years.

During his illustrious career, he has served on diversely He has been an Independent Director in J&K Bank since 21st
significant and responsible positions like Sub Divisional January, 2022 and is a member of several critical board-level
Magistrate Bhaderwah, Additional District Development committees. He was also on the Board of the Bank from 11th
Commissioner Kathua, Deputy Commissioner Leh, and Deputy January, 2020 to 10th January, 2022. Previously, he was
Commissioner Jammu. Dr. Bhandari has also discharged his Chairman of the Audit Committee and led the transformative
duties as Chief Executive Officer, Shri Mata Vaishno Devi journey of the Bank; in addition, he was a member of various
Shrine Board and Commissioner/ Secretary to Government Board committees, including Stakeholders Relationship
of J&K, Health & Medical Education. In the year 2017, Dr. Committee, Integrated Risk Management Committee,
Bhandari was appointed as Divisional Commissioner, Jammu. Investment Committee, Human Resources Development
From 18.01.2018 to 17.09.2018, he served as Private Secretary Committee and Nomination & Remuneration Committee.
to Hon’ble Human Resource Minister, Ministry of Human He earlier served as NOD (appointed by GoI) on the Board
Resource Development, Government of India and then from of the Bank of India, where he served up to October 2016.
18.09.2018 as Joint Secretary to the Government of India, He served as the Chairman of the Audit Committee besides
Ministry of Health & Family Welfare. being a member of its Board Committees on Credit, Human
Resources, Wilful Defaulters, Risk Management, Customer
In every sphere of administration wherever Dr. Bhandari has Service, and Nomination & Remuneration. He was an
worked, he has made outstanding contributions in tough independent director on the Board and in various Board level
and challenging circumstances. Dr. Bhandari brings to fray a committees of BOI Merchant Bankers Limited until March
treasure of competence, reliability, perspicacity and aptitude. 2021.

Mr. R. K. Chhibber He is an advisor to the J.P. Mathur Charitable Trust, New

DIN: 08190084 Delhi where research is carried out in fields of economic
Mr. Rajesh Kumar Chhibber joined the services of Jammu policy and governance with an emphasis on banking, finance
and Kashmir Bank as Probationary Officer in the year and economy and several other aspects of concern. He is
1982 and has led the Bank in different capacities from a life member of Non-Executive Directors in Conversation
managing business operations at Branch and Zonal offices Trust (NEDICT) promoted by Mr. M. Damodaran, former
to the Corporate Level across the operational geography UTI Chairman & SEBI Chairman, working to establish the
of the Bank, bringing a treasure of experience to the chair best practices for Boards & NEDs. He was one of the main
that spans around thirty nine years. His areas of expertise organisers of two national level conclaves i.e. Economic
include Credit, Finance, IT, Corporate & Retail Banking, Risk Conclave in 2017 and Banking Conclave in 2018 under aegis of
management, Trade Finance, Foreign exchange, Business India Policy Foundation and Centre for Economic Research.
continuity planning, HR, Bancassurance.
He is a Fellow Member of the Institute of Chartered
He headed the Bank as Chairman and Managing Director Accountants of India. He has a deep interest in Education
from June 2019 to December 2021. and is a member of the Board of Management of Shobhit
University, Meerut, a NAAC “A” grade accredited university.
Elevated as Executive President of J&K Bank on June 1, 2018,
he was the Bank’s Chief Compliance Officer besides heading He is a former Advisor to the UP-Export Corporation Limited.
Business Support division, HRD, Insurance, Government He was invited by the Government of Kazakhstan to deliver
Banking, Lead Bank, CSC, FID, Subsidiary Management, the Keynote Address at a seminar on ‘The Role of Small
Culture & Sports functions of the Bank. & Medium Enterprises in the National Economy’ held at
Kazakhstan.
As Vice-President in 2009, he headed the technology
department of J&K Bank and made remarkable contributions A firm believer in the philosophy that economic activity at the
in creating the technology infrastructure of the bank besides bottom of the pyramid is the backbone of the eco-system of
instituting the process of providing relevant expertise to the an emerging nation, he completed doctoral research work on
staff. “Vision and Strategy for Development of Entrepreneurship
through Micro Finance and Micro Enterprises in Developing
He has also served as Chairman J&K Grameen Bank for two World”. He researches Ancient Indian Economy and History
years and nine months and brought great laurels to the bank to find lessons for today’s economic conundrums. This is
by accomplishing its key strategic goals. another field of research and study for him.

230
He is a hobby poet and has written a book of poetry and entrusted with the affairs of Micro Small Medium Enterprises,
‘dohas’ in Hindi titled ‘Man Laago Mero Yaar Fakiri Mein’. This Economic Affairs & Taxation, Industrial Relation, Corporate
is published by Sahitya Bhandar, Prayagraj. Social Responsibility, Foreign Trade Policy and Guide to
Export & Import.
Mr. Naba Kishore Sahoo He has also served as Special Invitee & Committee Member
DIN: 07654279 of the Institute of Chartered Accountants of India on the
Mr. Naba Kishore Sahoo, aged 65 years has been a banker following Committees:
throughout his life. Starting his career as scale I officer in 1. Direct Tax & Indirect Tax Committee.
Canara Bank, he has moved up to scale VII level during a span 2. Research Committee.
of 32 years and finally as Executive Director in Allahabad
Bank for 4 years. He has thus to his credit a very rich and Mr. Anil Kumar Goel
diverse experience in banking industry with expertise in DIN: 00672755
Credit, Risk Management & HR. During his career he has Mr. Anil Kumar Goel is a Fellow Chartered Accountant with
been highly successful in driving business and achieving Bachelor’s degree in Commerce (H) and Master’s degree
all round performance under very critical and challenging in Social Work. He is a qualified Arbitrator & Mediator,
circumstances. His exposure in banking covers a wide Information Systems Auditor (DISA), Forensic Auditor &
spectrum of areas ranging from Urban, semi urban and rural Fraud Detector (FAFD), qualified as Peer Review Board of
areas in addition to overseas exposure as Chief Executive ICAI, Formerly Member of various Research Groups of ICAI
of Canara Bank in London. He led his teams as a Circle & NIRC, Formerly MEC & Joint Secretary cum Treasurer of
Head of Bhubaneswar and Pune and has been awarded and Sales Tax Bar Association, New Delhi. Moreover, he has been
recognized within the organization as a STAR PERFORMER. an Independent Director on the Board of RITES Ltd (a Mini
He has emerged as a leader by putting efforts in positioning Ratna CPSU) from 01.04.2016 to 31.03.2020.
the organisation in the right place by adopting proper
strategy, planning, guidance and execution. In addition to Mr. Anil Kumar Goel has 35 years of extensive experience and
being an Agricultural Science graduate which has been substantial expertise in Corporate & Tax Laws, Consultancy,
instrumental to his success in Rural banking, he has done Statutory & other Audits for Corporates and Non-Corporates
CAIIB from Indian Institute of Bankers. Besides he has also Business and NPO/Trust and Banks etc. His diverse clientele
attended numerous advanced level programs, both in India includes Manufacturers, Traders, Service Providers,
and abroad. Importers, Exporters, Societies, NGO, and Trusts etc. He has
Mr. Sahoo lives in Bhubhaneshwar where in addition to his delivered many lectures at reputed Professional Forums like
flair for reading, he is now actively engaged in social work and ICAI, Bar Association etc. and has published many articles in
helping people wherever his acquired skills and knowledge renowned Professional & Social magazines, Newsletters etc.
can be put to use. on various professional & social issues.

Mr. Umesh Chandra Pandey Mr. Anil Kumar Goel is the General Secretary of “Prakash
DIN: 01185085 Bandhu Sewa Samiti,” Managing Trustee and Vice-President
Mr. Umesh Chandra Pandey is a Fellow Chartered Accountant of “Jammu Kashmir Study Centre” (JKSC), Vice President
with Bachelor’s degree in Commerce. He is a Senior Partner of Prachin Shiv Mandir Committee, Ashoka Niketan, Director
at M/s B.M. Chatrath & Co. LLP since 1991. of “Vibrant Motivation and Development Foundation” (a
Company Registered u/s 8 of Companies Act) and Governing
Mr. Umesh Chandra Pandey has a considerable and great Council Member of “Asian Eurasian Human Rights Forum”,
deal of working experience in the field of Statutory Audit an NGO – Working for Global Human Rights. Besides, he is
of Listed & Public Ltd. Companies, Corporate Law, Taxation Past President of Rotary Club at Rotary Intl Dist. 3012.
– Domestic & Transfer Pricing, Project Report Preparation,
M & A Transactions, Statutory Compliance Audit – Direct Mr. Anand Kumar
Tax/ Indirect Tax & Labour Laws. He has conducted Central DIN: 03041018
Statutory Audit of Banks like Bank of Baroda, Central Bank Mr. Anand Kumar is an information technology (IT) specialist
of India, State Bank of India, Canara Bank, Union Bank of who has experience of more than three decades in IT
India and Government Company Audits of South Eastern development and management. Mr. Kumar completed his
Coal Fields Ltd, Indian Oil Ltd, Oil India Ltd, Steel Authority Bachelors of Technology (Electrical Engineering) from the
of India Ltd. & Power Grid Ltd. Mr. Umesh Chandra Pandey is Indian Institute of Technology, Banaras Hindu University, and
specialized in conducting due diligence of MSME and Heavy his Post-Graduate Diploma in Management (PGDM) from the
Industries on behalf of Scheduled Commercial Banks and is Indian Institute of Management, Lucknow.
empanelled by IBA for conducting ASM Audit.
Mr. Anand Kumar has worked in various multinational banking
Mr. Umesh Chandra Pandey has been an Independent and financial services organisations such as Citigroup, HSBC,
Director on the Board of Tourism Finance Corporation of Barclays, Fiserv, etc. He has also served as a Director on
India Ltd from 2005 to 2010 and has also served as Chairman the board of Fiserv India Pvt. Ltd. As Vice President – IT
of Audit Committee. He has also been the Chairman of Audit Delivery at Fiserv India, he managed pan-India IT Delivery
Committee of M/s Engineers India Limited from 2015 to 2019. teams spread across Noida, Pune, and Bengaluru. In this
He is on the Board of Jammu & Kashmir Bank since January role, he carried responsibility for application development,
21, 2022. maintenance, implementation, and support activities for
Fiserv products in areas such as core banking, lending, cards,
He has served as Member of CII North India Committee, payments, and risk.

231
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Mr. Kumar specializes in helping organisations build scale Carrying a paragon of capability, expertise and
with maturity, thereby significantly improving organisational professionalism to the chair that extends over thirty years,
credentials, revenue growth, and business confidence. He has his areas of expertise include Credit, Finance, Corporate &
led the design and execution of innovative programs such Retail Banking, Customer Service, Trade Finance, Business
as Target Zero Defects in delivery, as well as improvement continuity planning, etc.
initiatives focused on achieving sustained business success
Ms. Shahla Ayoub
through the institutionalization of effective processes and
DIN: 09834993
tools.
Ms. Shahla Ayoub is a young Economist of J&K. She presently
Mr. Kumar has made significant contributions to the rapid works as Assistant Professor in Department of Higher
growth and consolidation of four companies in India - i-flex Education, Government of J&K. Having worked as Assistant
solutions ltd., HSBC Global Technology Centre, Barclays Director in Economics and Statistics, Department of Planning,
Technology Centre, and Fiserv Global Services. He also had a Monitoring and Development Department, Government of
stint in the Ministry of Communications, Govt. of India from J&K before joining the Department of Higher Education,
2017 to 2019. she brings to Board an affluence of Economic expertise and
Mr. Sudhir Gupta perspicacity.
DIN: 09614492 She has a yearning and yawning interest in the field of
Mr. Sudhir Gupta joined the services of the Bank as economic research, especially in the areas of Conflict
Probationary Officer in the year 1989 and has served the Bank Economics, Financial Inclusion and Developmental
in different capacities across the operational topography of Economics. She has to her credit a number of publications,
the Bank ranging from business operations at Branch, having on subjects like Governance, Conflict & Economic Warfare
headed three different Zones of Bank as Zonal Head and in and Economic Welfare.
leading important departments i.e Customer Care, Credit
Apart from supervising a number of Post Graduate Research
Audit, BSD /CCM at Corporate Headquarters.
Dissertations at the Department of Economics, Cluster
Mr. Gupta has also demonstrated his leadership skills in University Srinagar, she has also participated in National and
J&K Grameen Bank where he was deputed as chairman for International Conferences and has made presentations on
a period two years. During his tenure as Chairman of J&K subjects like Response of Households to Conflict, Financial
Grameen Bank, he accomplished the strategic targets within Inclusion of Handicraftsmen in District Srinagar, Rural
the defined timelines. Households of Kashmir & Financial Inclusion under PMJDY
and Healthcare Infrastructure in Kashmir Valley.
DETAILS OF NUMBER OF SHARES/CONVERTIBLE DEBENTURES HELD BY NON-EXECUTIVE DIRECTORS AS ON 31-
03-2024
As on 31-03-2024, except Mr. R K Chhibber holding 500 shares of the Bank, none of the other Non-Executive Directors held
any Shares / Convertible Debentures.
CHART/MATRIX SETTING OUT SKILL, EXPERTISE AND COMPETENCIES AT BOARD LEVEL
S.No. Name Designation Core Skill / Expertise / Competencies

Banking, Accountancy, Economics, Finance, Treasury &

Investment Management, SSI, Information Technology, Human
1. Mr. Baldev Prakash MD & CEO
Resource, Payment & Settlement, Risk Management and
Business Management

2. Dr. Pawan Kotwal, IAS Rotational Director Administration, Finance and SSI

Administration, Finance, Economics, Risk Management, Human

3. Mr. Santosh Dattatraya Vaidya, IAS Nominee Director
Resource and Law

4. Dr. Mandeep K Bhandari, IAS Rotational Director Administration and Human Resource

Banking, Finance, Accountancy, Treasury & Investment

5. Mr. R K Chhibber Rotational Director
Management, Agriculture & Rural Economy

6. Dr. Rajeev Lochan Bishnoi Independent Director Banking, Finance, Accountancy, SSI

Banking, Agriculture, Rural economy, Human Resources and

7. Mr. Naba Kishore Sahoo Independent Director
Risk Management
Accountancy, Finance, Agriculture & Rural Economy,
8. Mr. Umesh Chandra Pandey Independent Director
Information Technology, Risk Management
Banking, Finance, Accountancy, Economics, SSI, Information
9. Mr. Anil Kumar Goel Independent Director
Technology

10. Mr. Anand Kumar Independent Director Information Technology and Business Management

Banking, Finance, Law, Human Resource, Agriculture & Rural

11. Mr. Sudhir Gupta Executive Director
Economy and Business Management
12. Ms. Shahla Ayoub Independent Director Economics

232
DIRECTORS E-KYC
The Ministry of Corporate Affairs (MCA) has vide amendment (Amount in Rs.)
to the Companies (Appointment and Qualification of Mr. Sudhir Gupta
Directors) Rules, 2014, necessitated the registration of KYC of Particulars
(Executive Director)
all the directors through e-form DIR-3 KYC. Said requirement
Basic salary 1980000
stands complied.
Allowances and perquisites 1993190
Provident Fund (Employer Contribution) NIL
REMUNERATION OF DIRECTORS Pension Fund (Employer Contribution) 198000*
MANAGING DIRECTOR & CEO Gratuity NIL
Remuneration of the MD & CEO is subject to the approval of PL Encashment 48739
Reserve Bank of India in terms of Section 35B of the Banking * Rs. 198000 is contribution towards pension fund of the Bank
Regulation Act, 1949. During the period under report Mr. DETAILS OF REMUNERATION / SITTING FEE PAID TO
Baldev Prakash was MD & CEO of the Bank. The details of NON-EXECUTIVE DIRECTORS
remuneration paid to him in the financial year 2023-24 are
as under: Criteria for remuneration/sitting fee paid to Non-
(Amount in Rs.) Executive Directors
Mr. Baldev Prakash The Non-Executive Directors of the Bank (except Govt./RBI
Particulars
(MD & CEO) Nominated Directors who are in the employment of Govt./RBI)
Basic salary 3000000 were paid sitting fee of `40,000 for each Board /Committee
Allowances and perquisites 5474716 Meeting attended by them, apart from reimbursement of
Provident Fund (Employer Contribution) 309408 Travelling, Boarding/Lodging expenses for attending Board/
Pension Fund (Employer Contribution) 309408 Committee Meetings.
Gratuity 309408
PL Encashment 350000 In addition to above, the Non-Executive Directors (except
Govt. Directors /RBI Nominated Directors who are in full
EXECUTIVE DIRECTOR time employment of RBI) were entitled to profit related
Remuneration of the Executive Director is subject to the compensation to the extent of one percent of the profits
approval of Reserve Bank of India in terms of Section 35B of of the Bank for the financial year 2022-23, subject to a
the Banking Regulation Act, 1949. During the period under maximum of `10 Lakhs per annum per Director.
report, Mr. Sudhir Gupta was Executive Director of the Bank.
The details of remuneration paid to him as Executive Director The details of Sitting Fee paid to The Non-Executive Directors
in the financial year 2023-24 are as under: of the Bank (except Govt./RBI Nominated Directors who are
in the employment of Govt./RBI) for Financial Year 2023-24
and Profit Related Compensation for Financial Year 2022-23,
paid in the Financial Year 2023-24 are as under:

(Amount in Rs.)
Particulars of Remuneration

Other Non – Executive Directors Dr. Mohmad Ishaq Wani

Mr. R K Chhibber
Fee for attending Board and Committee Meetings 21,60,000.00 ---
Commission (FY 2022-23) 10,00,000.00 4,00,000.00
Others --- ---
Sub Total (1) 31,60,000.00 4,00,000.00

Mr. Umesh
Independent Dr. Rajeev Lochan Mr. Naba Kishore Mr. Anil Kumar Mrs. Sushmita Mr. Anand
Chandra
Directors Bishnoi Sahoo Goel Chadha Kumar
Pandey
Fee for attending
Board and 21,60,000.00 22,80,000.00 21,20,000.00 20,80,000.00 --- 24,00,000.00
Committee Meetings
Commission (FY
10,00,000.00 10,00,000.00 10,00,000.00 10,00,000.00 4,93,151.00 10,00,000.00
2022-23)
Others --- --- --- --- --- ---
Sub Total (2) 31,60,000.00 32,80,000.00 31,20,000.00 30,80,000.00 4,93,151.00 34,00,000.00
Total (1+2) = 2,00,93,151.00

233
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

FAMILIARISATION PROGRAMME Audit Committee

The details of familiarisation programmes imparted to Brief terms of Reference /Roles & Responsibilities
Independent Directors are available on the website of the The main functions of the Audit Committee is to assess
Bank at and review the financial reporting system of the Bank, to
https://www.jkbank.com/investor/stockExchangeIntimation/ ensure that the Financial Statements of the Bank are correct,
farmilisation.php sufficient and credible. It addresses matters pertaining
to adequacy of internal controls, reliability of financial
PERFORMANCE EVALUATION statements / other management information, adequacy
The Bank has put in place a mechanism for performance of provisions, whether the audit tests are appropriate and
evaluation of the Directors. The details of the same are scientifically carried out. It follows up on all issues raised in the
included in the Directors’ Report. Long Form Audit Report and interacts with Statutory Central
Auditors before finalisation of Annual Financial Accounts
COMMITTEES OF THE BOARD and Reports focusing primarily on accounting policies and
The Board of Directors of the Bank has constituted several practices, major accounting entries and compliance with
Committees of the Board to take decisions on matters the Accounting Standards. The Committee also reviews the
requiring special focus. The brief role and functions of the adequacy of Internal Control System and holds discussions
Committees of the Board is described hereunder: with Internal Auditors / Inspectors on any significant finding
and follow up action thereon. It also reviews the financial
Management Committee and risk management policies of the Bank and evaluates
Brief terms of Reference /Roles & Responsibilities the findings of any internal investigation where there is any
The Management Committee of the Board considers various suspected fraud or irregularity or failure of Internal Control
business matters of material significance like sanctioning System of material nature and reports to the Board. ACB
of loan proposals, compromise / write-off cases, periodical also focuses on the follow up of inter-branch adjustment
review of NPAs and large corporate loans, monitoring credit accounts and other major areas of Balancing of Books and
and investment exposure, etc. House Keeping.

Composition, Meetings and Attendance Composition, Meetings and Attendance

The composition of the Committee during the year under The composition of the Committee during the year under
review is as under: review is as under:
Mr. R. K. Chhibber (Chairman) Dr. Rajeev Lochan Bishnoi
(Chairman)
Upto 25.04.2023
Mr. Baldev Prakash (Member)
Mr. Anil Kumar Goel
Dr. Rajeev Lochan Bishnoi (Member) (Chairman)
From 25.04.2023
From 25.04.2023
Mr. R. K. Chhibber (Member)
Mr. Naba Kishore Sahoo (Member)
Mr. Umesh Chandra Pandey (Member)
Mr. Anand Kumar (Member)
Mr. Anand Kumar (Member)
Mr. Anil Kumar Goel
(Member)
Upto 25.04.2023
The Committee met twelve (12) times during the year on
Mr. Sudhir Gupta (Member) 22.04.2023, 03 & 04.05.2023, 19.06.2023, 23.07.2023,
16.08.2023, 31.08.2023, 11.09.2023, 19&20.10.2023,
The Committee met eight (08) times during the year on 21.11.2023, 23.11.2023, 19 & 20.01.2024 and 26.02.2024. These
06.06.2023, 15.07.2023, 07.09.2023, 03.10.2023, 09.11.2023, meetings were attended by Members as detailed below:
05.01.2024, 19.02.2024 and 29.03.2024. These meetings Meetings
Meetings
were attended by Members as detailed below: Name of Director during the %age
Attended
tenure
Meetings
Meetings
Name of Director during the %age Dr. Rajeev Lochan Bishnoi 1 1 100
Attended
tenure
Mr. Anil Kumar Goel 11 11 100
Mr. R. K. Chhibber 8 8 100
Mr. R. K. Chhibber 12 12 100
Mr. Baldev Prakash 8 8 100 Mr. Umesh Chandra Pandey 12 12 100
Dr. Rajeev Lochan Bishnoi 8 8 100 Mr. Anand Kumar 12 12 100
Mr. Naba Kishore Sahoo 8 8 100
Integrated Risk Management Committee
Mr. Anil Kumar Goel 0 0 0 Brief terms of Reference /Roles & Responsibilities
Mr. Anand Kumar 8 8 100 The Committee facilitates the business/operations of the Bank
by establishment of an effective risk management framework
Mr. Sudhir Gupta 8 8 100 through appropriate risk policies /processes, to monitor risk
profile of the Bank to ensure that it is in accordance with risk
appetite of the Bank and, to provide the support necessary
to enable the Management to perform their assigned duties
and responsibilities in an effective manner. The role of the

234
Committee is to review risk policies and recommend these Composition, Meetings and Attendance
to Board for approval. It also examines and monitors the risk The composition of the Committee during the year under
issues related to Bank’s business and operations and guide review is as under:
the Management appropriately. The Committee oversees all
risk management functions in the Bank. Mr. Baldev Prakash
(Chairman)
From 25.04.2023
Composition, Meetings and Attendance (Member)
Upto 25.04.2023
The composition of the Committee during the year under
Dr. Rajeev Lochan Bishnoi (Member)
review is as under:
Mr. Naba Kishore Sahoo (Member)
Mr. Umesh Chandra Pandey (Chairman)
Mr. Umesh Chandra Pandey (Member)
Mr. R K Chhibber (Member)
Mr. Anil Kumar Goel
Dr. Rajeev Lochan Bishnoi (Member) (Chairman)
Upto 25.04.2023
(Member)
Mr. Naba Kishore Sahoo (Member) From 25.04.2023
Mr. Sudhir Gupta (Member)
The Special Committee of Board on Frauds (SCBF) met six
The Integrated Risk Management Committee met four (04) (06) times during the year on 28.06.2023, 26.09.2023,
times during the year on 30.05.2023, 16.08.2023, 21.11.2023 21.11.2023, 25.01.2024, 16.02.2024 and 18.03.2024. These
and 27.02.2024 meetings were attended by the Members as detailed below:
Meetings
Meetings
These meetings were attended by Members as detailed Name of Director during the
Attended
%age
below: tenure

Meetings Mr. Baldev Prakash 6 6 100

Meetings
Name of Director during the %age Dr. Rajeev Lochan Bishnoi 6 6 100
Attended
tenure
Mr. Naba Kishore Sahoo 6 6 100
Mr. Umesh Chandra Pandey 4 4 100
Mr. Umesh Chandra Pandey 6 6 100
Mr. R K Chhibber 4 4 100 Mr. Anil Kumar Goel 6 6 100

Dr. Rajeev Lochan Bishnoi 4 4 100

Customer Service Committee
Brief terms of Reference /Roles & Responsibilities
Mr. Naba Kishore Sahoo 4 4 100
The Committee has been constituted with a view to look into
matters relating to customer complaints and speedy redressal
Mr. Sudhir Gupta 4 4 100
thereof, reviewing customer service policies / metrics and
indicators that provide information on the state of customer
Special Committee of Board on Frauds (SCBF) services in the Bank, monitoring the implementation of the
Brief terms of Reference /Roles & Responsibilities Banking Ombudsman Scheme, etc. The Committee also
Pursuant to RBI directions, the major functions of the Special holds discussions with the Internal Ombudsman to gauge the
Committee of Board would be to monitor and review all the efficacy of the grievance redressal framework of the Bank.
frauds of Rs. 1 crore and above so as to;
• Identify the systemic lacunae, if any, that facilitated Composition, Meetings and Attendance
perpetration of the fraud and put in place measures The composition of the Committee during the year under
to plug the same; review is as under:
• Identify the reasons for delay in detection, if any,
Mr. Baldev Prakash
reporting to top management of the Bank and RBI; Upto 25.04.2023
(Chairman)
• Monitor progress of CBI / Police Investigation and
recovery position; Mr. Sudhir Gupta
(Chairman)
• Ensure that staff accountability is examined at From 25.04.2023
(Member)
Upto 25.04.2023
all levels in all the cases of frauds and staff side
action, if required, is completed quickly without Mr. R. K. Chhibber (Member)
loss of time. Mr. Naba Kishore Sahoo (Member)
• Review the efficacy of the remedial action
Mr. Anil Kumar Goel (Member)
taken to prevent recurrence of frauds, such as
strengthening of internal controls. Mr. Anand Kumar (Member)
• Put in place other measures as may be considered From 25.04.2023
relevant to strengthen preventive measures Ms. Shahla Ayoub (Member)
against frauds.
The Customer Service Committee met four (04) times
during the year on 30.05.2023, 25.09.2023, 20.11.2023 and
26.02.2024. These meetings were attended by the Members
as detailed below:

235
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Meetings The Legal and Impaired Assets Resolution Committee met

Meetings five (05) times during the year on 25.04.2023, 25.08.2023,
Name of Director during the %age
Attended 20.10.2023, 13.12.2023, 27.02.2024. These meetings were
tenure
attended by the Members as detailed below:
Mr. Sudhir Gupta 4 4 100
Meetings
Mr. R. K. Chhibber 4 4 100 Meetings
Name of Director during the %age
Attended
Mr. Naba Kishore Sahoo 4 4 100 tenure
Mr. Anil Kumar Goel 4 4 100 Mr. Baldev Prakash 5 5 100
Mr. Anand Kumar 4 4 100 Mr. Naba Kishore Sahoo 5 5 100
Ms. Shahla Ayoub 4 4 100 Mr. Umesh Chandra Pandey 5 5 100
Mr. Anil Kumar Goel 5 5 100
Information Technology Strategy Committee
Mr. Sudhir Gupta 5 5 100
Brief terms of Reference /Roles & Responsibilities
Committee has been constituted pursuant to RBI directions
to monitor the progress of effective assimilation and speedy Nomination & Remuneration Committee
implementation of Information Technology in the Bank. Bank has constituted a Nomination & Remuneration
Committee of the Board under the RBI Circular dated 2004
Composition, Meetings and Attendance and pursuant to the requirements of the Securities and
The composition of the Committee during the year under Exchange Board of India (LODR) Regulations, 2015 and the
review is as under: Companies Act, 2013.

Mr. Anand Kumar (Chairman) Brief terms of Reference /Roles & Responsibilities
Mr. Baldev Prakash (Member) In compliance to the regulatory requirements, the role and
functions of the Committee under the aforesaid statutory
Mr. R. K. Chhibber and Regulatory requirements are as under:
(Member)
From 25.04.2023
Dr. Rajeev Lochan Bishnoi (Member) 1) The Committee shall identify persons who are
Mr. Anil Kumar Goel (Member) qualified to become directors and who may be
appointed in senior management in accordance
The Information Technology Strategy Committee met with the criteria laid down, recommend to the Board
four (04) times during the year on 16.06.2023, 11.09.2023, their appointment and removal and shall specify
13.12.2023 and 27.02.2024. These Meetings were attended the manner for effective evaluation of performance
by Members as detailed below: of Board, its committees and individual directors
to be carried out either by the Board, by the
Meetings
Meetings Nomination and Remuneration Committee or by
Name of Director during the %age
Attended an independent external agency and review its
tenure
implementation and compliance and whether to
Mr. Anand Kumar 4 4 100 extend or continue the term of appointment of the
Mr. Baldev Prakash 4 4 100 Independent Director on the basis of the report of
Mr. R. K. Chhibber 4 4 100 Performance evaluation of Independent Director.
2) The Nomination and Remuneration Committee shall
Dr. Rajeev Lochan Bishnoi 4 4 100 formulate the criteria for determining qualifications,
Mr. Anil Kumar Goel 4 4 100 positive attributes and independence of a director
and recommend to the Board a policy, relating to
Legal and Impaired Assets Resolution Committee the remuneration for the directors, key managerial
Brief terms of Reference /Roles & Responsibilities personnel and other employees.
The Committee reviews the legal matters and suits filed 3) The Nomination and Remuneration Committee shall,
cases, NPA accounts and also monitors and reviews the while formulating the policy ensure that—
performance of Impaired Assets Portfolio Management 3.1 the level and composition of remuneration is
(IAPM) vertical of the Bank for recovery/settlement of reasonable and sufficient to attract, retain and
impaired assets of the Bank and other related matters. motivate directors of the quality required to
run the company successfully;
Composition, Meetings and Attendance 3.2 relationship of remuneration to performance
The composition of the Committee during the year under is clear and meets appropriate performance
review is as under: benchmarks;
3.3 remuneration to directors, key managerial
Mr. Baldev Prakash (Chairman)
personnel and senior management involves
Mr. Naba Kishore Sahoo (Member) a balance between fixed and incentive pay
reflecting short and long-term performance
Mr. Umesh Chandra Pandey (Member)
objectives appropriate to the working of the
Mr. Anil Kumar Goel (Member) company and its goals:
4) Devising a policy on diversity of board of directors;
Mr. Sudhir Gupta (Member) 5) Recommend to the board, all remuneration, in
whatever form, payable to senior management.

236
Composition, Meetings and Attendance The Corporate Social Responsibility & Environmental, Social
The composition of the Committee during the year under and Governance Committee met five (05) times during the
review is as under: year on 29.05.2023, 16.08.2023, 26.09.2023, 14.12.2023 and
Mr. Anand Kumar (Chairman) 27.02.2024.These Meetings were attended by Members as
detailed below:
Mr. R K Chhibber
(Member) Meetings
Upto 25.04.2023 Meetings
Name of Director during the %age
Dr. Rajeev Lochan Bishnoi (Member) Attended
tenure
Mr. Naba Kishore Sahoo (Member) Ms. Shahla Ayoub 5 5 100
Ms. Shahla Ayoub Mr. Baldev Prakash 5 5 100
(Member)
From 25.04.2023
Mr. Umesh Chandra Pandey 5 5 100
The Nomination & Remuneration Committee met ten (10)
Mr. Anil Kumar Goel 5 5 100
times during the year on 03.05.2023, 16.06.2023, 23.07.2023,
25.08.2023, 11.09.2023, 19.10.2023, 09.11.2023, 02.02.2024, Mr. Anand Kumar 5 5 100
27.02.2024 and 21.03.2024.These Meetings were attended
by Members as detailed below: Mr. Sudhir Gupta 5 5 100
Meetings
Meetings Stakeholders Relationship Committee:
Name of Director during the %age
Attended
tenure The Bank Constituted “Stakeholders Relationship Committee”
Mr. Anand Kumar 10 10 100
pursuant to the provisions of the Companies Act, 2013 and
the SEBI (LODR) Regulations, 2015. Mr. Mohammad Shafi
Mr. R K Chhibber 0 0 0 Mir, Company Secretary, has been designated as Compliance
Dr. Rajeev Lochan Bishnoi 10 10 100 Officer.
Mr. Naba Kishore Sahoo 10 10 100
Brief terms of Reference /Roles & Responsibilities
Ms. Shahla Ayoub 10 10 100 1) Considering and resolving the grievances of the
security holders of the Bank including complaints
Corporate Social Responsibility & Environmental, Social related to transfer/transmission of shares, non-
and Governance Committee: receipt of annual report, non-receipt of declared
Brief terms of Reference /Roles & Responsibilities dividends, issue of new/duplicate certificates,
general meetings etc.
The Role and Functions of the Committee shall be as under: 2) Review of measures taken for effective exercise of
1. Formulate and recommend to the Board for voting rights by shareholders.
approval, the Corporate Social Responsibility 3) Review of adherence to the service standards
Policy which shall indicate the activity or activities adopted by the Bank in respect of various services
to be undertaken by the Bank as specified in being rendered by the Registrar & Share Transfer
Schedule VII of the Companies Act, 2013 as Agent.
amended from time to time. 4) Review of the various measures and initiatives taken
2. Guide and monitor the activities of the Bank in the by the Bank for reducing the quantum of unclaimed
area of CSR such that the spendings are in line dividends and ensuring timely receipt of dividend
with the activities stipulated in the CSR Policy. warrants/annual reports/statutory notices by the
3. Provide inputs, on an ongoing basis, to the shareholders of the Bank.
formulation of strategic objectives and tactical
plans that would help ensure the Bank is able During the year, 1909 service requests / complaints were
to fulfill its corporate social responsibilities in a received and all these service requests / complaints stand
responsible and effective manner. redressed.

Composition, Meetings and Attendance The status of investors / shareholders service requests
The composition of the Committee during the year under / grievances received during the year under report is as
review is as under: follows:
Ms. Shahla Ayoub
(Chairperson) S.No. Particulars Received Disposed Pending
From 25.04.2023
(Member)
Upto 25.04.2023
Change / Correction of
Mr. Baldev Prakash (Member) 1. 298 298 0
the Address
Mr. Umesh Chandra Pandey (Member) Intimation of the
Mr. Anil Kumar Goel 2. Bank Mandate / NECS 8 8 0
(Member) Mandate
From 25.04.2023
(Chairman)
Upto 25.04.2023 Non-receipt of Share
3. 57 57 0
Mr. Anand Kumar (Member) Certificates

Mr. Sudhir Gupta (Member)

237
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Loss of Share The Stakeholders Relationship Committee met four (04)

Certificates and times during the year on 29.05.2023, 25.08.2023, 14.12.2023
4. request for issue 273 273 0 and 09.02.2024.These Meetings were attended by Members
of duplicate share as detailed below:
certificate(s)
Meetings
Meetings
Deletion / inclusion Name of Director during the %age
Attended
5. of joint name and 74 74 0 tenure
transmission
Mr. R K Chhibber 4 4 100
Non-receipt of
6. dividend warrants 247 247 0 Mr. Baldev Prakash 4 4 100
(NRDW)
Dr. Rajeev Lochan Bishnoi 4 4 100
7. Registration of NECS 3 3 0 Mr. Umesh Chandra Pandey 4 4 100
Mr. Anand Kumar 0 0 0
Receipt of dividend
8. warrants for 5 5 0 Mr. Sudhir Gupta 4 4 100
revalidation
Ms. Shahla Ayoub 4 4 100
Intimation of the
9. Nomination form 575 575 0
details OTHER SPECIFIC PURPOSE COMMITTEES
Capital Issuance Committee
Letters from SEBI/ Brief terms of Reference /Roles & Responsibilities
10. 1 1 0
Stock Exchanges
To do all acts, deeds and things which are necessary to do in
Request for stock split relation to the raising of Tier I and Tier II Capital of the Bank,
11. 4 4 0
in lieu of old shares
Composition, Meetings and Attendance
12 Others 364 364 0 The composition of the Committee during the year under
review is as under:
Total 1909 1909 0
Mr. Baldev Prakash (Chairman)

Mr. R K Chhibber (Member)

Composition, Meetings and Attendance Mr. Naba Kishore Sahoo (Member)
The composition of the Committee during the year under
review is as under:
The Committee met three (03) times during the year on
Mr. R K Chhibber (Chairman) 11.12.2023, 14.12.2023 and 15.12.2023. These Meetings were
Mr. Baldev Prakash
attended by Members as detailed below:
(Member)
From 25.04.2023 Meetings during Meetings
Name of Director %age
the tenure Attended
Dr. Rajeev Lochan Bishnoi (Member)
Mr. Baldev Prakash 3 3 100
Mr. Umesh Chandra Pandey (Member)
Mr. R K Chhibber 3 3 100
Mr. Anand Kumar
(Member)
Upto 25.04.2023 Mr. Naba Kishore Sahoo 3 3 100
Mr. Sudhir Gupta (Member)
Ms. Shahla Ayoub (Member)

MEETING OF THE INDEPENDENT DIRECTORS

The Independent Directors of the Bank met on 21.11.2023. All Independent Directors attended the meeting.

SENIOR MANAGEMENT:
Particulars of senior management including the changes therein since the close of the previous financial year:
Date of
Date of Date of Latest
EMPLID NAME_DISPLAY DESIGNATION Joining the
Retirement Promotion
Bank
CVO001 AMBRISH KUMAR MISHRA General Manager 23/04/2026 NA 24/04/2023
004108 ANAND PAL SINGH General Manager 28/02/2026 04/06/2024 26/10/1989
004106 ASHUTOSH SAREEN General Manager 30/11/2027 11/02/2021 24/10/1989
004154 IMTIYAZ AHMAD BHAT General Manager 29/02/2028 12/05/2022 20/10/1989
004161 NARJAY GUPTA General Manager 31/03/2027 11/02/2021 25/10/1989
004128 PEER MASOOD AHMAD General Manager 31/12/2027 11/02/2021 18/10/1989
004181 RAJESH GUPTA General Manager 31/10/2025 04/06/2024 25/10/1989
004159 RAJESH MALLA TIKOO General Manager 29/02/2028 04/06/2024 18/10/1989

238
 Date of
Date of Date of Latest
EMPLID NAME_DISPLAY DESIGNATION Joining the
Retirement Promotion
Bank
004116 RAKESH KOUL General Manager 31/08/2026 11/02/2021 25/10/1989
004138 SHABIR AHMAD BHAT General Manager 28/02/2026 04/06/2024 18/04/1988
004115 SHAREESH SHARMA General Manager 31/03/2025 12/05/2022 26/10/1989
004162 SUNIT KUMAR General Manager 31/01/2027 11/02/2021 27/10/1989
004120 SUSHIL KUMAR GUPTA General Manager 30/06/2025 12/05/2022 18/04/1988
004125 SYED RAIS MAQBOOL General Manager 31/08/2026 11/02/2021 18/10/1989
004118 SYED SHUJAAT HUSSAIN ANDRABI General Manager 30/06/2025 12/05/2022 17/10/1989
004140 TABASSUM NAZIR General Manager 31/01/2025 12/05/2022 17/10/1989
004208 AJAY KOHLI Deputy General Manager 31/05/2028 14/06/2022 19/07/1990
004264 ALTAF HUSSAIN KIRA Deputy General Manager 31/10/2030 14/06/2022 25/03/1997
004204 ANEET KANWAL SINGH BAGEE Deputy General Manager 30/09/2030 04/06/2024 22/06/1995
004232 ANITA NEHRU Deputy General Manager 30/04/2031 04/06/2024 19/06/1996
004104 ANUP BHAT Deputy General Manager 30/11/2026 11/10/2021 18/10/1989
004147 ARSHAD HUSSAIN DAR Deputy General Manager 31/03/2027 27/07/2015 18/04/1988
004197 ARSHAD QADRI Deputy General Manager 31/10/2029 14/06/2022 21/06/1995
004213 ASHOK GUPTA Deputy General Manager 31/01/2030 14/06/2022 27/05/1995
004156 FAYAZ AHMAD BHAT Deputy General Manager 31/12/2027 27/05/2018 23/10/1989
004262 HAFEEZA RAHIM Deputy General Manager 28/02/2031 04/06/2024 25/03/1997
004134 IMTIYAZ AHMAD BHAT Deputy General Manager 30/04/2026 11/02/2021 17/10/1989
004267 IRFAN ANJUM Deputy General Manager 30/04/2029 04/06/2024 25/05/1995
004269 KHURSHEED MUZAFFAR Deputy General Manager 31/12/2029 14/06/2022 24/06/1995
004168 KIRTI SHARMA Deputy General Manager 28/02/2027 11/02/2021 25/10/1989
004180 MANJU GUPTA Deputy General Manager 30/09/2025 11/02/2021 25/10/1989
004238 MOHAMMAD ISHAQ BHAT Deputy General Manager 30/09/2024 14/06/2022 03/07/1990
004250 MOHAMMAD MUZAFFAR WANI Deputy General Manager 31/03/2032 14/06/2022 19/06/1996
004226 NISHI KANT SHARMA Deputy General Manager 31/03/2026 14/06/2022 19/07/1990
004227 RAFI AHMED MIR Deputy General Manager 31/03/2025 04/06/2024 03/07/1990
004231 RAJA ZAFFER KHAN Deputy General Manager 31/05/2030 14/06/2022 24/05/1995
004258 RAJEEV KUMAR DIGRA Deputy General Manager 30/09/2032 04/06/2024 19/06/1996
004121 RAJESH DUBEY Deputy General Manager 30/06/2027 11/02/2021 24/10/1989
004205 RAKESH MAGOTRA Deputy General Manager 31/07/2031 14/06/2022 19/06/1996
004206 RIAZ AHMED WANI Deputy General Manager 31/01/2029 04/06/2024 03/07/1990
004198 SAADUT HUSSAIN PAMPORI Deputy General Manager 30/04/2031 14/06/2022 20/06/1995
004131 SAJAD HUSSAIN Deputy General Manager 30/06/2024 27/07/2015 17/10/1989
004217 SANJAY GUPTA Deputy General Manager 31/12/2031 14/06/2022 19/06/1996
004248 SANJEEV KUMAR Deputy General Manager 31/08/2031 14/06/2022 19/06/1996
004173 SATISH KUMAR Deputy General Manager 30/09/2025 14/06/2022 25/10/1989
004228 SURESH KUMAR CHOWDHARY Deputy General Manager 31/03/2030 04/06/2024 19/06/1996
004263 SYED AADIL BASHIR Deputy General Manager 30/09/2032 04/06/2024 25/03/1997
004107 TARIQ ALI Deputy General Manager 31/08/2027 11/02/2021 11/10/1989
004256 TSEWANG DORJAI Deputy General Manager 31/07/2029 14/06/2022 19/06/1996
004230 VINAY GUPTA Deputy General Manager 31/03/2028 04/06/2024 19/07/1990
004191 VINOD KUMAR SHARMA Deputy General Manager 31/01/2025 27/07/2015 14/10/1993
004202 VIRESH GUPTA Deputy General Manager 31/05/2029 04/06/2024 23/06/1995

239
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

DISCLOSURE OF CERTAIN TYPES OF AGREEMENTS least once every three years and updated accordingly. The
BINDING LISTED ENTITIES policy has been posted on the Bank’s website at https://
Information disclosed under clause 5A of paragraph A of www.jkbank.com/pdfs/policy/Related%20Party%20
Part A of Schedule III of these regulations: Transactions%20Policy.pdf
There are no such agreements of the Bank during the period
under review. Performance Evaluation Policy for the Board and
Members of the Board
CORPORATE GOVERNANCE POLICIES IN COMPLIANCE The Board of Directors on the recommendations of the
WITH THE STATUTORY REGULATIONS Nomination & Remuneration Committee (N&RC) has
Board Diversity Policy approved a framework/policy for evaluation of the Board,
In accordance with the Regulation 19(4) and Part D (A) Committees of the Board and the individual Members of the
(3) of Schedule II of the Securities and Exchange Board of Board (including the chairperson). The objective of this policy
India (Listing Obligations and Disclosure Requirements) is to formulate the procedure and also to prescribe and lay
Regulations, 2015, (‘Listing Regulations’), the Bank has down the criteria to evaluate the performance of the entire
framed a formal policy on Board Diversity which sets out a Board, each individual Director and the Committees of the
framework to promote diversity on Bank’s Board of Directors. Board of the Bank. The policy has been posted on the Bank’s
The policy has been posted on the Bank’s website at: website at:
https://www.jkbank.com/investor/stockExchangeIntimation/ https://www.jkbank.com/pdfs/policy/J&K%20Bank%20
corporateGovernancepolicies.php Performance%20Evaluation%20Policy.pdf

Code of Conduct for Board of Directors and Senior Policy for Determination of Materiality of Information/
Management Event(s)
In accordance with the Regulation 17(5) of ‘Listing In order to ensure consistent, transparent, regular and timely
Regulations’, the Bank has framed a formal policy on Code public disclosure and dissemination of material events/
of Conduct for Board of Directors and Senior Management information based on the criteria specified in Sub Regulation
of the Bank in order to exercise good judgement, to ensure 4 of Regulation 30 of the Listing Regulations, the Board
the interests, safety and welfare of customers, employees & of the Bank has formulated a policy for determination of
other stakeholders and to maintain a cooperative, efficient, materiality of such events/information to the members of
positive, harmonious and productive work environment. The public. The policy has been posted on the Bank’s website at:
code has been posted on the Bank’s website at https://www.jkbank.com/pdfs/policy/Policy%20for%20
https://www.jkbank.com/investor/stockExchangeIntimation/ Determination%20of%20Materiality%20of%20
corporateGovernancepolicies.php Information%20Event.pdf

Declaration: Policy for Determining Material Subsidiary

I confirm that for the year under review, all Directors and The Securities and Exchange Board of India (“SEBI”) has in
Senior Management have affirmed their adherence to the terms of Regulation 16(1) provided that the listed entity shall
provisions of the code of conduct for Board of Directors and formulate a policy for determining material subsidiary and
Senior Management Personnel. to provide the governance framework for such subsidiaries.
Pursuant to said Regulation, the Bank has framed a policy for
Srinagar – 04.05.2024 Baldev Prakash determination of “material subsidiary” of the Bank. The Bank
MD & CEO at present has no material subsidiary within the meaning of
the definition of material subsidiary under the Regulations.
Dividend Distribution Policy The policy has been posted on the Bank’s website at
The objective of this policy is to lay down the criteria to be https://www.jkbank.com/pdfs/policy/Policy%20for%20
considered by the Board of Directors of the Bank before Determining%20Material%20Subsidiary.pdf
recommending dividend to the Shareholders for a Financial
Year. The policy is framed in compliance to Regulation 43A of Policy on Preservation of Documents and Archival of
the Listing Regulations, applicable provisions of Companies Documents
Act, 2013 and RBI Guidelines. The policy has been posted on The Bank has framed the policy on preservation of
the Bank’s website at documents and archival as mandated by the provisions of
https://www.jkbank.com/investor/stockExchangeIntimation/ Regulation 9 read with Regulation 30(8) of Chapter III of the
corporateGovernancepolicies.php Listing Regulations, 2015. Through this policy, the Bank has
a strategic objective of ensuring that significant documents
Policy on Related Party Transactions are safeguarded and preserved to ensure the longevity of
The Securities and Exchange Board of India (“SEBI”) has in priority documents including the electronic resources.
terms of Regulation 23 provided that the listed entity shall All other policies as required under SEBI Regulations are
formulate policy on materiality of related party transactions posted on the website of the Bank under the link:
and on dealing with related party transactions including clear https://www.jkbank.com/investor/stockExchangeIntimation/
threshold limits duly approved by the Board of Directors and corporateGovernancepolicies.php
such policy shall be reviewed by the Board of Directors at

240
Disclosures with respect to Demat Suspense Account/ KFin Technologies Limited at Selenium Tower - B, Plot No
Unclaimed Suspense Account/Escrow Account 31 & 32, Financial District, Nanakramguda, Serilingampally
Number of share- No. of Mandal, Hyderabad - 500 032, Telangana, by sending the
holders whose requests
shares were trans- received Shares debited during
duly completed and signed ISR Forms in original along with a
Opening Balance as on 01st Closing Balance as on
April, 2023
ferred to Escrow during the the Financial Year
31st March, 2024
photocopy of a CANCELLED cheque leaf of their active core
Account during Financial 2023-24
the Financial Year Year
banking account and self-attested copy of their PAN card and
2023-24 2023-24 a self-attested copy of any one of the documents mentioned
No. of No. of
No. of Share- No. of
Share-
No. of No. of Share- No. of
Sharehold-
No. of hereafter: utility payment bills (not more than three months
holders Shares Shares 18 holders Shares Shares
holders ers old) / bank pass book / passport / driving license to validate
0 0 64 112000 18 28000 46 84000
their present address. In case the dividend paid through
We confirm that the voting rights on the above shares shall electronic mode is rejected by the corresponding bank, for
remain frozen till the rightful owner of such shares claims any reason whatsoever, the Bank will issue a demand draft
the shares. and print the bank account details available with M/S KFin
Technologies Limited on the said demand draft to avoid
Dividend related Information fraudulent encashment.
In accordance with Regulation 43A of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, INSIDER TRADING CODE
2015 (SEBI Listing Regulations), the Bank has formulated The Bank has emplaced a Code on Practices and Procedures
and adopted a Dividend Distribution Policy reviewed by the for Fair Disclosure of Unpublished Price Sensitive
Board. The policy is available on the website of the Bank at Information pursuant to Securities and Exchange Board of
https://www.jkbank.com/investor/stockExchangeIntimation/ India (Prohibition of Insider Trading) Regulations, 2015 to
corporateGovernancepolicies.php. In view of the overall prevent practices of Insider Trading. Mr. Mohammad Shafi
performance of the Bank and while retaining capital to Mir, Company Secretary, has been designated as Compliance
support future growth, the Board at its meeting held on 04th Officer for this purpose.
May, 2024, recommended a final dividend of `2.15 per Equity
Share, subject to the approval of members at the ensuing 86th DIRECTORS AND OFFICERS INSURANCE
Annual General Meeting (AGM). The record date to determine The Bank has undertaken Directors and Officers Insurance (‘D
eligibility of members for payment of dividend is Saturday, and O Insurance’) for all its Directors and Officers including
10th August, 2024. In terms of the Income Tax Act, 1961, the Independent Directors.
dividend income is taxable in the hands of the members.
Therefore, the dividend will be paid to the members after DISCLOSURE IN RELATION TO THE SEXUAL
deduction of applicable tax, if any. HARASSMENT OF WOMAN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT,
Dividend Payment Date 2013
Dividend shall be deposited in a scheduled bank in a separate The Bank does not engage in any form of child labour /
account within five days from the date of declaration of such forced labour / involuntary labour and does not adopt any
dividend. discriminatory employment practices. The Bank has a Policy
Section 124 of Companies Act, 2013 provides that where a against sexual harassment and a Committee “Internal
dividend has been declared by the Company but has not been Complaints Committee for Prevention, Prohibition and
paid or claimed within thirty days from the date of declaration Redressal of Sexual Harassment of Women at Workplace” has
to any shareholder entitled to the payment of Dividend, the been constituted for dealing with complaints of harassment
same shall be transferred to the Dividend unpaid account. or discrimination. The said policy is in line with relevant Act
Therefore, Dividend shall be paid by or before Sunday, 15th passed by the parliament in 2013. The Bank, through the
September, 2024. policy ensures that all such complaints are resolved within
defined timelines.
Payment of Dividend through Electronic Mode
In terms of Regulation 12 and Schedule I of the SEBI Listing During the year, two complaints were lodged before the
Regulations, every listed entity is required to mandatorily Internal Complaints Committee duly constituted under the
make all payments to members, including dividend, by using Sexual Harassment of Women at Work Place (Prevention
any Reserve Bank of India (RBI) approved electronic mode and Redressal) Act, 2013 and the rules made thereunder.
of payments viz. Direct Credit, Real Time Gross Settlement Accordingly, due inquiry proceedings were conducted in the
(RTGS), National Electronic Fund Transfer (NEFT), Electronic cases, as stipulated in the Act and adequate opportunity was
Clearing Service (ECS), National Automated Clearing House provided to both complainant and respondent to present/
(NACH) etc. The Bank would be entitled to use the bank defend their cases. Finding the cases devoid of any merits,
account details of the members available with the depository the same were disposed of within the requisite time frame of
participants to facilitate payment through electronic mode. 90 days.
All members of the Bank holding equity shares in electronic
form are requested to provide details relating to their bank Number of Number of Number of
account number, including nine digit MICR Code and 11 digit Complaints filed Complaints Complaints pending
during the Financial disposed of during as on end of the
IFSC Code, e-mail ID and mobile numbers to their depository
Year the Financial Year Financial Year
participants. All members of the Bank holding equity shares
in physical form are requested to provide details relating to 2 2 0
their bank account number, indicating nine digit MICR Code
and 11 digit IFSC Code, e-mail ID and mobile numbers to M/S

241
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

ETHICAL STANDARDS EMPLOYED BY THE BANK During the year a fine of `20,000/- plus applicable GST
The Bank has emplaced service manual for its employees. was levied by The BSE Limited for the delayed submission
This manual contains comprehensive regulations on ethical of disclosure under Regulation 60(2) of the SEBI (Listing
standards to be mandatorily observed by all the employees Obligations and Disclosure Requirements) Regulations, 2015
of the Bank. for the period ended May, 2021 and December, 2021. The
WHISTLE BLOWER POLICY & VIGIL MECHANISM Bank has contested the levying of fine and has represented
The details with reference to whistle blower policy and vigil for waiver. The BSE Limited vide its mail dated 16.05.2024
mechanism along with the affirmation that no personnel has waived off penalty pertaining to May-2021, while as
has been denied access to the Audit Committee, have been request for waiver of penalty pertaining to Dec-2021 is under
addressed in the Director’s Report which is forming part of consideration with the exchange.
this Annual Report. During the year, the Audit Committee did
not receive any reference under the said policy. The policy is Subject to above, there were no cases of non-compliance by
available on the website of the Bank at the link: the Bank and no penalties or strictures have been imposed on
https://www.jkbank.com/pdfs/policy/WB.pdf or proposed against the Bank by the Stock Exchange (s) and
/ or SEBI and / or any other statutory authorities on matters
DETAILS OF UTILIZATION OF FUNDS RAISED relating to capital market except to the extant disclosed in
THROUGH PREFERENTIAL ALLOTMENT OR QUALIFIED the Notes to the Accounts and the Bank has complied with
INSTITUTIONAL PLACEMENT AS SPECIFIED UNDER the provisions of relevant Acts, Rules & Regulations framed
REGULATION 32 (7A) OF SEBI (LODR) REGULATIONS, there under during the financial year 2023-2024.
2015 The Bank has complied with all applicable accounting
The Bank during the reporting period issued and allotted standards and related RBI guidelines.
6,97,02,602 equity shares at a price of `107.60 which was
at a discount of 4.49% (i.e. `5.06 per equity share) to the STRICTURES AND PENALTIES FOR THE LAST 3
Qualified Institutional Buyers (QIB) aggregating to a total of FINANCIAL YEARS
`749,99,99,975.20. The Issue opened on December 11, 2023 Penalty
and closed on December 14, 2023. The allotment was made Amount
on December 15, 2023. Period Details
(Amount in
The above funds were raised/utilized to meet the needs of Lakhs)
growing business, including long term capital requirements During the Financial year 2021-22, a
for pursuing Bank’s growth plans and to maintain the Capital penalty of `100 lakhs was imposed
Adequacy Ratio as per the regulatory guidelines/ norms laid by the Reserve Bank of India on
down by the Reserve Bank of India. account of contraventions of RBI
FY 2021-22 101.02
circular on Lending to NBFCs.
CEO / CFO CERTIFICATION Further, the Reserve Bank of India
In terms of Regulation 17(8) of the Listing Regulations, the had imposed a monetary penalty of
`1.02 lakhs on currency chests.
certification by the CEO and CFO on the financial statements
and internal controls relating to financial reporting has been During the Financial year 2022-23,
obtained and was placed before the Board in its meeting a penalty of `3,74,921 was imposed
dated 04th May, 2024. by the Reserve Bank of India on
Currency Chests and `42,10, 000
was imposed by the Reserve Bank
DISCLOSURES of India on on ATM Cash Out
The Board of your Bank has in all its endeavor, ensured `35,400.00 imposed by NSE/BSE
that true and fair disclosures are made to its constituents for delayed filing of Related Party
through various publications regarding plans, strategies and Transaction reports out of which
performance. The Board is pleased to disclose that; National Stock Exchange of India
1. The Executive Management of Bank regularly places Limited has waived off the penalty
various reviews before the Board on the performance of two days i.e., `10, 000/- due to
FY 2022-23 49.21 wrong levy of penalty and same is
of the Bank so as to enable it to exercise effective
under consideration with The BSE
control and check over the working of the Bank. Limited.
2. The Bank has not entered into any materially significant `3,00,000.00 imposed by FIU-
transaction with its Directors, Management or with their India in relation with the non-
Relatives, other than the normal course of business of compliance observed in respect of
the Bank. the transactions carried out in a
3. The Bank did not enter into any material related party particular account.
transaction with its Directors or Management or their `986.00 imposed by CBIC
being amount of penalty raised
Relatives that would potentially conflict with and
for delayed reporting of GST
adversely affect interests of the Bank. Transaction for the period 01-04-
4. The Directors did not incur any disqualification under 2022 to 30-06-2022.
Section 164 of the Companies Act, 2013 or under any
other law applicable to the Bank.
5. None of the Directors of the Bank are holding positions
as Chairman of more than five and as a Member of
more than ten Audit and Stakeholders’ Relationship
Committees.

242
 During the Financial year 2023- d) Reporting of Internal Auditor
24, penalty of `2,14,150.00 (out The findings of internal/concurrent auditors are consolidated
of which `50,000.00 was later and placed before the Audit Committee by the Bank
waived-off and reversed by RBI) periodically.
was imposed by the Reserve
Bank of India on Currency Chests, e) Separate posts of Chairperson and the Managing
`1,00,000.00 (out of which Director or the Chief Executive Officer
`50,000.00 was later waived-off
Bank is having separate posts of Chairperson and Managing
and reversed by RBI) was imposed
by the Reserve Bank of India on Director or Chief Executive Officer. However, the Bank does
ATM Cash Outs and `20,000.00 not have a Non-Executive Chairperson as on date.
was imposed by RBI on branch
Prithviraj road for not having all DISCLOSURE OF COMMODITY PRICE RISKS AND
coin denominations. COMMODITY HEDGING ACTIVITIES: Nil
Further, penalty of `2.50 crores was
imposed by RBI for non-compliance INSTANCES WHERE THE BOARD HAD NOT ACCEPTED
with certain directions issued
ANY RECOMMENDATION OF ANY COMMITTEE OF THE
FY 2023-24 253.60 by RBI on ‘Creation of a Central
Repository of Large Common BOARD WHICH IS MANDATORILY REQUIRED IN THE FY
Exposures-Across Banks’, read with 2023-24: Nil
‘Central Repository of Information
on Large Credits (CRILC) – Revision IMPORTANT EVENTS AFTER THE CLOSURE OF
in Reporting’, ‘Loans and Advances FINANCIAL YEAR ENDED 31.03.2024
– Statutory and other Restrictions’ This report covers the period of financial year of the Bank
and ‘Time-bound implementation beginning on 01st April, 2023 to 31st March, 2024. However, an
and strengthening of SWIFT-
important event listed below happened from 01st April, 2024
related operational controls’.
`23,600.00 was imposed by BSE till the date of this report.
on delay in submitting the notice • Mr. Fayaz Ahmad Ganai was appointed as Chief
of record date of coupon payments Financial Officer of the Bank on April 16, 2024 in
for Bonds under Reg 60(2) of SEBI place of Mr. Pratik D Punjabi, who resigned from the
(LODR) Regulations 2015. services of the Bank w.e.f April 05, 2024. Mr. Pratik
`2,290.00 was imposed by CBEC D Punjabi, Chief Financial Officer resigned from the
on delayed reporting of GST services of the Bank w.e.f. April 05, 2024 in order to
luggage file.
explore professional opportunities outside the Bank.
COMPLIANCE WITH MANDATORY REQUIREMENTS
SHAREHOLDERS RIGHTS
The Bank has complied with all the applicable mandatory
A shareholder can enjoy the following rights prescribed under
requirements of the Code of Corporate Governance as
the Companies Act, 2013 and the SEBI Listing Regulations,
prescribed under the SEBI Listing Regulations.
wherever applicable:
• To carry out transmission /transposition and deletion
COMPLIANCE WITH NON-MANDATORY REQUIREMENTS
of name on the share certificate(s) and receive the duly
a) Board of Directors
endorsed share certificates within the period prescribed
The Bank has separated the position of Chairman and
in the SEBI Listing Regulations.
Managing Director by amending its Articles of Association.
• To receive notice of general meetings, annual report,
Mr. Baldev Prakash has been appointed as the first Managing
balance sheet, profit and loss account, cash flow
Director and CEO of the Bank. The Bank is in the process of
statement and auditors’ report.
appointing a Non-Executive Chairman. The Bank will bear
• To appoint proxy to attend and vote at general meetings.
the expenses relating to maintenance of the office of Non-
In case, the member is a body corporate, to appoint a
Executive Chairperson of the Bank and will reimburse all the
representative to attend and vote at general meetings
expenses incurred in performance of his/her duties.
of the Bank on its behalf.
• To attend and speak in person, at general meetings.
b) Shareholders’ Rights
Proxy cannot vote on show of hands but can vote on a
The Bank publishes its results on its website at www.jkbank.
poll.
com which is accessible to the public at large. The same
• To demand poll in respect of any resolution along with
are also available on the websites of the Stock Exchanges
other shareholder(s) who collectively hold not less than
on which the Bank’s shares are listed. A half-yearly
1/10th of the total voting power or holding shares on
declaration of financial performance including summary of
which an aggregate sum of not less than 5 lakh rupees
the significant events is presently not being sent separately
has been paid up.
to each household of shareholders. The Bank’s results for
• To requisition an extraordinary general meeting of the
each quarter are published in a National English newspaper
Bank by shareholders who collectively hold not less than
having wide circulation and in a local newspaper having wide
1/10th of the total paid up capital of the Bank.
circulation in the UT of J&K.
• To move amendments to resolutions proposed at general
meetings.
c) Audit Qualifications
• To receive dividend and other corporate benefits
The audit report on the financial statements of the Bank for
like rights, bonus shares etc. as and when declared /
2023-24 has unmodified opinion.
announced.

243
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

• To take inspection of the various Registers of the Bank. Compliance Officer

• To inspect the minute books of general meetings and Name: Mohammad Shafi Mir, Company Secretary
to receive copies thereof after complying with the
procedure prescribed in the Companies Act, 2013. To ensure compliance to all statutory regulations as
Role: far as they relate to Company Secretary and redressal
• To make nomination in respect of shares held by the
of grievance of Shareholders / Investors
shareholder.
• To participate in and be sufficiently informed of the Jammu and Kashmir Bank Ltd.
decisions concerning fundamental corporate changes. Address: Board Secretariat, Corporate Headquarters
M. A. Road, Srinagar 190 001
• To be informed of the rules, including voting procedures
that govern general shareholder meetings. Phone 0194-2483775 / 0194-2481930-35 (Extn.)1540
• To demand adequate mechanism to address the
grievances of the shareholders. Debenture Trustees
• To demand protection of minority shareholders from The SEBI Listing Regulations require companies, which
abusive actions by, or in the interest of, controlling have listed their debt securities, to disclose the names of
shareholders acting either directly or indirectly, and their debenture trustees with contact details in their Annual
effective means of redress. Report. The details of debenture trustee for the privately
The rights mentioned above should be exercised only after placed bonds of the Bank is as under:
careful reading of the relevant provisions. These rights are
not necessarily absolute. Name : IDBI Trusteeship Services Ltd.
Address : Asian Building Ground Floor, 17, R Kamani Marg,
GENERAL SHAREHOLDER INFORMATION Ballard Estate, Mumbai, Maharashtra.
Details of Stock Exchanges / Depositories PIN: 400001.
The equity shares of the Bank are listed on the following Phone : 022-40807004/40807023 / 9892258709
stock exchanges: Email ID : rmitra@idbitrustee.com / itsl@idbitrustee.com

S.No. Name & Address of Stock Exchange Scrip Code / Symbol Name : Axis Trustee Service Limited
Address : The Ruby, 2nd Floor, SW, 29 Senapati
National Stock Exchange of India
Limited
Bapat Marg, Dadar West, Mumbai -400028
1. Exchange Plaza, Bandra Kurla J&KBank Phone : 9130352937
Complex, Bandra (E), Mumbai 400 Email ID : meet.soni@axistrustee.in
051
Name : SBICAP Trustee Company Limited
The BSE Limited Address : Mistry Bhavan, 4th Floor, 122 Dinshaw
2. Phiroze Jeejeebhoy Towers, Dalal 532209 Vachha Road, Churchgate, Mumbai – 400020
Street, Fort Mumbai 400 001 Phone : 022-43025555
Email ID : dt@sbicaptrustee.com

The annual fees for 2023-2024 has been paid to the above Financial Calendar (April 01, 2023 to March 31, 2024)
Stock Exchanges where the shares are listed. Board meeting for
May 04, 2024
consideration of Accounts
Name of Depositories for dematerialization of equity
shares (ISIN Number - INE168A01041): Dispatch of Annual Report
Wednesday, July 24, 2024 onwards
/ Notice of AGM
i National Securities Depository Limited (NSDL)
Meeting will be held on Saturday,
ii Central Depository Services (India) Limited (CDSL) August 17, 2024 at 11:00 AM at
Date, Time and Venue of
Jammu and Kashmir Bank Limited,
the 86th AGM
Corporate Headquarters, M.A. Road,
Registrar and Share Transfer Agent (RTA) Srinagar, J&K 190 001.
M/s KFin Technologies Limited
Unit: - Jammu and Kashmir Bank Limited Record date for the
purpose of determining Saturday, August 10, 2024
Selenium Tower B, Plot No. 31 - 32,
eligibility of dividend
Financial District, Nanakramguda
Serilingampally Mandal From Sunday, August 11, 2024 to
Book Closure Dates
Hyderabad - 500 032, Telangana, India Saturday, August 17, 2024
Phone No. 040-67162222, 3321, 1000
Quarter ending Approval Date
Email ID for Redressal of Investor Grievances
Board meeting for 30th June, 2023 24th July, 2023
Pursuant to Regulation 85(4) of the SEBI (Listing Obligations
considering un-audited
& Disclosure Requirements) Regulations, 2015, Bank has results for the first 3 30th September,
created a separate email ID for redressal of Investor 20th October, 2023
quarters of FY 2023-24 2023
Complaints and Grievances. The email ID for Redressal of
31st December, 20th January,
Investor Grievances is sharedeptt_gc@jkbmail.com 2023 2024

244
General Body Meetings
Information relating to last three (3) General Body Meetings is furnished below:
Day, Date and time
Name of Meeting Venue Nature of Special Resolutions Passed
of meeting

Thursday, 30th
• Raising of Equity Tier I Capital, upto the tune of
83rd Annual Held through Video Conferencing / `1000 Crore
September, 2021 at
General Meeting
11:00 AM
Other Audio Visual Means • Raising of Basel III compliant Tier II Capital, upto the
tune of ` 1000 Crore.

• Raising of Equity Tier I Capital, upto the tune of

`500 Crore
Wednesday, 24
•
th
84th Annual Held through Video Conferencing / Raising of Basel III compliant Tier II Capital, upto
August, 2022 at
General Meeting Other Audio Visual Means the tune of ` 1500 Crore
11:00 AM
• Alteration of Articles of Association of the Bank
• Increase the Borrowing Power of the Bank

• Raising of Equity Tier I Capital, upto the tune of

Thursday, 24th `750 Crore
85 Annual Held at Sher-i-Kashmir International
•
th
August, 2023 at Raising of Basel III compliant Tier II Capital, upto
General Meeting Conference Centre (SKICC), Srinagar
11:00 AM the tune of ` 1000 Crore
• Alteration of Articles of Association of the Bank

POSTAL BALLOT
During the period under report, the Bank sought approval of the Members for below mentioned special resolutions via
postal ballot notices dated December 15, 2023 through electronic voting (e-voting) only. The Bank followed the procedure as
prescribed under the Companies Act, 2013 and the Rules made thereunder, relevant provisions of Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Secretarial Standards issued by
the Institute of Company Secretaries of India, read with circulars issued by the Ministry of Corporate Affairs and the SEBI in
this regard. The Board of Directors of the Bank, appointed Mr. DSM Ram, Practicing Company Secretary as the Scrutinizer for
conducting the postal ballot/e-voting process in a fair and transparent manner. The scrutinizer submitted his report to the
MD & CEO after the completion of the postal ballot exercises and the same were placed on the website of the Bank and also
disseminated to the Stock Exchanges.

Postal Ballot Notice dated December 15, 2023:

The above notice contained the following ordinary resolution:
Regularisation of Additional Director, Dr. Mandeep K Bhandari, IAS (DIN: 07310347) as a Rotational Director on the Board of
the Bank.
There were total 1,95,397 shareholders of the Bank as on the record date i.e. December 08, 2023 out of which 579 members
comprising of 70,50,27,397 equity shares representing 68.35% of the issued share capital participated in the e-voting
process. The breakup of the votes is as mentioned below:
% of Votes
Votes cast % of Votes cast
Resolution No. of valid votes polled Votes cast in favour cast in
against against
favour
Regularisation of Additional Director,
Dr. Mandeep K Bhandari, IAS (DIN:
70,49,76,107 70,41,83,978 7,92,129 99.89 0.11
07310347) as a Rotational Director
on the Board of the Bank.

The above special resolution was passed with requisite majority on January 14, 2024 and results were declared on January 15,
2024 and were communicated to the stock exchanges and displayed on the Bank’s website www.jkbank.com.
At present, the Bank has no plan to pass special resolution through Postal Ballot. The shareholders will be intimated as and
when it will be planned.

MEANS OF COMMUNICATION the Un-Audited/Reviewed Financial Results in the prescribed

J&K Bank disseminates information about its operations form of the Stock Exchanges within stipulated time period
through various means to shareholders, analysts and the from the closure of the quarter and announces forthwith the
society at large. All official news releases and presentations results to all the Stock Exchanges where the shares of the
made to institutional investors and analysts are posted Bank are listed. The highlights of quarterly results are also
on the Bank’s website (www.jkbank.com). It also issues published in National and Vernacular Newspapers within 48
press releases and conducts programmes that disseminate hours of the conclusion of the Board Meeting in which they
information. The quarterly results of the Bank are published are taken on record and information is also placed on the
in widely circulated National/Local Newspapers and are also website of the Bank. The Bank regularly organizes Press /
placed on the website of the Bank. The Board takes on record Analyst Meets to apprise Fund Managers, Press and Analysts

245
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

about the financial performance of the Bank and to receive DIVIDEND HISTORY OF LAST FIVE YEARS
their suggestions for future growth.
Rate of Date of Date of
Financial Year
Dividends (%) Declaration Payment
SHARE TRANSFER PROCESS AND SYSTEM
The Bank’s shares which are in compulsory dematerialized
2018-19 Nil ---- ----
(Demat) list are transferable through the depository system.
Requests for transmission / transposition or for deletion of
2019-20 Nil ---- ----
name in case of physical share certificates are processed
by the Registrar and Share Transfer Agent, M/s KFin
Technologies Limited and are approved by the Board / Share 2020-21 Nil ----
----
Transfer Committee of the Bank. The service requests of such
nature are processed within a period of ten (10) days from 2021-22 Nil ---- ----
the date of receipt of the relevant documents by Registrar
and Share Transfer Agent. 2022-23 50 24.08.2024 18.09.2024

Please note that as per the amended SEBI Listing Regulations, DEMATERIALISED / PHYSICAL SHARES
with effect from April 1, 2019, any requests for transfer of The shares of the Bank are in compulsory dematerialised
securities shall not be processed unless the securities are segment and are available for trading in depository systems
held in dematerialized form. of both National Securities Depository Limited and Central
Depository Services (India) Limited As on 31st March, 2024,
FEES FOR STATUTORY CENTRAL AUDITORS the position of dematerialized shares as well as physical
The details of total fees for all services paid by the Bank shares is as under:
and its subsidiary/associates, on a consolidated basis, to
the Statutory Central Auditors are provided in the Directors’ (As on 31.03.2024)
Report.
Particulars No. of shares %age
COMPLIANCE CERTIFICATE OF THE AUDITORS Physical Shares 69,09,531 0.63
The Secretarial Auditor of the Bank has certified that
the Bank has complied with the conditions of Corporate Dematerialized Shares 109,42,72,932 99.37
Governance as stipulated in the SEBI Listing Regulations
except as mentioned in the said certificate. The same forms Total 110,11,82,463 100.000
a part of this Report.

246
 DISTRIBUTION OF SHAREHOLDING AS ON 31.03.2024
S.NO Category No. of Holders % to Holders Number of Shares % to Total

1 Upto 5000 208280 94.95 81061934 7.36

2 5001 - 10000 5829 2.66 41972643 3.81
3 10001 - 20000 3965 1.81 53583176 4.87
4 20001 - 30000 566 0.26 13691902 1.24
5 30001 - 40000 155 0.07 5469054 0.50
6 40001- 50000 110 0.05 5066094 0.46
7 50001 - 100000 165 0.07 11716961 1.06
8 100001 & Above 282 0.13 888620699 80.70
Total 2,19,352 100.00 110,11,82,463 100.00

LIST OF SHAREHOLDERS HOLDING MORE THAN 1% AS ON 31.03.2024

S. No. NAME SHARES % TO EQT CATEGORY

1 Chief Secretary Jammu and Kashmir Govt. 57,14,04,380 51.89 PRO

2 Finance Secretary UT of Ladakh 4,58,29,445 4.16 PRO

3 Secretary Finance Department Jammu and Kashmir Govt. 3,68,64,455 3.35 PRO

4 Life Insurance Corporation Of India 1,46,91,715 1.33 QIB

5 Sanjeev Arora 1,34,38,226 1.22 NRI

6 Kotak Mahindra Trustee Co Ltd A/c Kotak Multicap Fund 1,33,27,990 1.21 MUT

7 Quant Mutual Fund - Quant Small Cap Fund 1,25,02,259 1.14 MUT

Total 70,80,58,470 66.30

STOCK MARKET DATA

MARKET PRICE DATA: HIGH, LOW DURING EACH MONTH IN FINANCIAL YEAR 2023-24
NSE BSE

Month High Price Low Price Turnover in Rs. High Price Low Price Turnover in Rs.

April, 2023 58.50 48.10 80420275.00 58.50 48.42 588549579.00

May, 2023 62.85 53.05 140112130.00 62.84 53.05 1055637023.00
June, 2023 61.20 54.90 95850680.00 61.20 54.86 662260919.00
July, 2023 77.10 60.40 239422909.00 74.85 60.40 1488532941.00
August, 2023 93.90 66.45 220391893.00 94.95 65.40 1666532103.00
September, 2023 111.45 87.60 215054036.00 111.39 87.70 1911560734.00
October, 2023 117.70 94.60 149959636.00 117.65 94.60 1685801757.00
November, 2023 117.10 104.50 65374061.00 117.15 104.65 852347786.00
December, 2023 140.00 109.10 188384976.00 139.95 109.10 2033913672.00
January, 2024 142.70 122.80 111876892.00 142.65 122.85 1604919946.00
February, 2024 152.50 129.05 113843972.00 152.45 128.80 1748588728.00
March, 2024 149.70 116.15 88097086.00 149.70 116.85 1111783630.00

247
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

PERFORMANCE OF THE BANK’S EQUITY SHARES AS COMPARED WITH INDICES

J&K BANK vis-a-vis NIFTY - 2023-24

J&K BANK vis-a-vis SENSEX - 2023-24

248
 SHAREHOLDING PATTERN AS ON 31.03.2024
JAMMU AND KASHMIR BANK LIMITED

Share holding pattern as on 31st March, 2024

1. PROMOTERS 654098280 59.40

2. RESIDENT INDIVIDUALS 223816318 20.33

3. FOREIGN PORTFOLIO - CORP 76922250 6.99

4. MUTUAL FUNDS 55782488 5.07

5. QUALIFIED INSTITUTIONAL BUYER 25064666 2.28

6. BODIES CORPORATES 24890066 2.26

7. NON RESIDENT INDIANS 17955968 1.63

8. HUF 7229208 0.66

9. ALTERNATIVE INVESTMENT FUND 3752748 0.34

10. NBFC 2801750 0.25

11. NON RESIDENT INDIAN NON REPATRIABLE 2437933 0.22

12. IEPF 2421091 0.22

13. INDIAN COMPANY 2323420 0.21

14. TRUSTS 1660626 0.15

15. KEY MANAGEMENT PERSONNEL 20877 0.00

16. CLEARING MEMBERS 4074 0.00

17. DIRECTORS 500 0.00

18. BANKS 200 0.00

Total 1101182463 100.00

249
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

LIST OF CREDIT RATINGS OF INSTRUMENTS ISSUED BY BANK

Particulars 31.03.2024 31.03.2023 Rating Agency
Credit rating and change in credit rating (if any):
1. Certificate of Deposits Crisil A1+ CRISIL A1+

2. Short Term Deposits CRISIL A1+ CRISIL A1+

CRISIL
CRISIL CRISIL
3. Long term Deposits
AA-/Stable AA-/Stable

BWR AA-/Stable BWR AA-/Stable Brickwork

4. Tier II Sub ordinate Debt IND A+/Positive IND A+/Stable India Ratings

CARE A+/Positive CARE A+/Stable Care Ratings

5. AT1 BWR A/Stable BWR A/Stable Brickwork

PLANT LOCATION
Being a banking company, the Bank does not have plants. As on March 31, 2024, the Bank has 1004 Branches (including IARBs)
spread over 18 states and 4 union territories. The location/address of Business Units is available on the website of the Bank.

250
 CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
{Pursuant to Regulation 34(3) and Schedule V Para C Clause (10)(i) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015}

To,
The Members of
Jammu and Kashmir Bank Limited
Corporate Headquarters, M. A. Road, Srinagar, Kashmir – 190001

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of JAMMU AND
KASHMIR BANK LIMITED having CIN L65110JK1938SGC000048 and having registered office at Corporate Headquarters M.
A. Road, Srinagar JK 190001 India (hereinafter referred to as ‘the Bank’), produced before us by the Bank for the purpose of
issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Clause 10(i) of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In our opinion and to the best of our information and according to the verifications (including Directors Identification Number
(DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Bank & its officers,
we hereby certify that none of the Directors on the Board of the Bank, as stated below for the Financial Year ended March 31,
2024 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and
Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

S. No Name of the Director DIN Date of Appointment in the Bank

01 Mr. Baldev Prakash 09421701 December 30, 2021
02 Dr. Pawan Kotwal, IAS 02455728 July 24, 2023
03 Mr. Santosh Dattatraya Vaidya, IAS 05340193 August 22, 2023
04 Dr. Mandeep K Bhandari, IAS 07310347 October 20, 2023
05 Mr. Rajesh Kumar Chhibber 08190084 June 10, 2019
06 Dr. Rajeev Lochan Bishnoi 00130335 January 21, 2022
07 Mr. Naba Kishore Sahoo 07654279 March 01, 2020
08 Mr. Anil Kumar Goel 00672755 January 21, 2022
09 Mr. Umesh Chandra Pandey 01185085 January 21, 2022
10 Mr. Anand Kumar 03041018 March 03, 2022
11 Mr. Sudhir Gupta 09614492 December 14, 2022
12 Ms. Shahla Ayoub 09834993 December 26, 2022

Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management
of the Bank. Our responsibility is to express an opinion based on our verification. This certificate is neither an assurance as to
the future viability of the Bank nor of the efficiency or effectiveness with which the management has conducted the affairs
of the Bank.

For Reshi & Associates

Company Secretaries

Ghulam Jeelani Reshi

(Proprietor)
Place: Srinagar FCS No.: 8720; C P No.: 10020
Date: 01.07.2024 Firm Registration No: S2011JK536600
PR No. 2125/2022
UDIN: F008720F000646324

251
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Certificate on Compliance with the Corporate Governance requirements under SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015

To
The Members,
Jammu and Kashmir Bank Limited

We have examined the compliance of the conditions of Corporate Governance by the Jammu and Kashmir Bank Limited
(“Bank”) for the Financial Year ended on March 31, 2024, as stipulated under Regulations 17 to 27, clauses (b) to (i) and (t) of
sub- regulation (2) of Regulation 46 and para C, D and E of Schedule V of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”).

The compliance of conditions of corporate governance is the responsibility of the management of the Bank. Our examination
was limited to the review of procedures and implementation thereof, as adopted by the Bank for ensuring the compliance with
conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the
Bank.

In our opinion and to the best of our information and according to the explanations given to us and the representations made
by the Management read together with Secretarial Audit Report dated July 01, 2024, we certify that the Bank has complied
with the conditions of Corporate Governance as stipulated in the Listing Regulations for the Financial Year ended on March
31, 2024.

We further state that such compliance is neither an assurance as to the future viability of the Bank nor the efficiency or
effectiveness with which the Management has conducted the affairs of the Bank.

Ghulam Jeelani Reshi

(Proprietor)
Place: Srinagar FCS No.: 8720; C P No.: 10020
Date: 01.07.2024 Firm Registration No: S2011JK536600
PR No. 2125/2022
UDIN: F008720F000646335

252
SHAREHOLDER INFORMATION Contact us online
A) Shareholders’ Helpdesk Customer Grievance Redressal:
Customers may lodge their Grievance/Service Request on
Share transfers, dividend payments and all other investor the following link:
related activities are attended to and processed at the office https://custcare.jkbank.com/iml2/custcare/home
of Registrar and Share Transfer Agents. For lodgment of
documents or for any grievances/complaints, shareholders/ For grievances other than Shareholder grievances please
investors may contact at the following address: send your communication to the following email addresses:
1. Depository Services: helpdesk@jkbfsl.com,
Ms. Rajitha Cholleti / Mr. Prem Kumar Maruturi customer.grievance@jkbfsl.com
2. ATM: helpdesk@jkbmail.com
M/s KFin Technologies Limited For any grievance, fill up the “Complaint Form”
Unit: Jammu and Kashmir Bank Limited available at the following website link:
Selenium Tower B, Plot 31-32, https://www.jkbank.com/pdfs/forms/atm_cust_
Financial District, Nanakramguda, compl.pdf
Serilingampally Mandal, Credit Cards/Debit Cards: The details of Grievance
Hyderabad – 500 032, Redressal Officer for Credit and Debit cards is
Telangana – India. hereunder:
Name: Mr. Towfeeq Ahmad Naqash
Toll Free Number: 1-800-309-4001 E-mail address: grievance.creditcards@jkbmail.com
E-mail: einward.ris@kfintech.com Customers may also call our Toll free number:
Website: 1800-890-2122 for assistance.
https://www.kfintech.com and https://ris.kfintech.com
Timings: 10:00 A.M. to 04:30 P.M. B) Dividends
(Monday to Friday except public holidays) Receipt of Dividends through Electronic mode
As per the SEBI (Listing Obligations and Disclosure
For the convenience of investors, certain complaints from Requirements) Regulations, 2015, listed companies shall
investors are accepted at the Bank’s Office at the below mandatorily make all payments to investors including dividend
mentioned address: to shareholders, by using any RBI approved electronic mode
Share Grievance Cell, Board Secretariat, of payment viz., Electronic Clearing System (ECS), LECS
5th floor, Jammu and Kashmir Bank Limited, (Local ECS), RECS (Regional ECS), NECS (National ECS),
Corporate Headquarters, Direct Credit, RTGS, NEFT etc.
M.A. Road, Srinagar,
Jammu and Kashmir, 190001. In order to receive the dividend without loss of time (as and
when declared by the Bank), all the eligible shareholders
Telephone: +91-194-2483775, +91-194- holding shares in Dematerialized mode are requested to
2481930/31/32/33/34/35, Ext: 1542. update with their respective Depository Participants, their
Email: sharedeptt_gc@jkbmail.com correct core banking account number, including 9 digit MICR
Code and 11 digit IFSC, e-Mail ID, Permanent Account Number
Name of the Compliance Officer of the Bank: (PAN) and Mobile No(s). This will facilitate the remittance
Mr. Mohammad Shafi Mir of the Dividend amount in the Bank Account electronically.
Company Secretary Updation of e-Mail IDs and Mobile No(s) will enable sending
Telephone: +91-194-2483775 communication relating to credit of dividend, uncashed
dividend etc.
For IEPF related matters - Mr. Ain Altaf Kamili
Tel: +91-194-2483775 Shareholders holding shares in physical form may
Email: sharedeptt_gc@jkbmail.com communicate details relating to their core banking account,
viz., core banking account number, including 9 digit MICR
Queries relating to the Bank’s operational and financial Code and 11 digit IFSC, E- Mail ID, Permanent Account Number
performance may be addressed to: investorrelations@ (PAN) and Mobile No(s) to the Registrar and Share Transfer
jkbmail.com. Agents viz., M/s KFin Technologies Limited, Selenium
Tower B, Plot 31-32, Financial District, Nanakramguda,
Banking Customer Helpdesk Serilingampally Mandal, Hyderabad – 500 032, Telangana –
In the event of any Queries/Complaints/Service Requests, India, by sending the duly completed and signed ISR Forms
customers can directly approach the Branch Manager or call in original along with a photocopy of a cancelled cheque leaf
the Bank using the following contact details: of their active core banking account, self-attested copy of
their PAN card and a self-attested copy of any one of the
Call at: documents mentioned hereafter: Aadhar/utility payment
Contact Center: 1800-890-2122 (24*7) - toll free number, bills (not more than three months old)/bank pass book /
+91-194-2470182 passport /driving license to validate their present address.
+91-194-2713444.
Various modes for making payment of Dividend under
Customer Service Department: electronic mode: In case, the shareholder has updated core
+91-194-2481999 (from 10:00 am to 5:00 pm) banking account details (including 9 digit MICR Code and 11

253
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

digit IFSC code) for the purpose of payment of dividend (as any claimant of shares transferred above shall be entitled
and when declared by the Bank), then the Bank shall make to claim the transfer of shares from Investor Education and
the payment of dividend to such shareholder under any one Protection Fund in accordance with such procedure and on
of the following modes: submission of such documents as may be prescribed.
1. National Automated Clearing House (NACH)
2. National Electronic Fund Transfer (NEFT) As per the requirement of Rule 6 of the IEPF Rules, the
3. Direct credit in case the shareholders having an Bank had sent individual intimation to all the shareholders
active Bank account with Jammu and Kashmir Bank and also published notice in the leading newspapers in
Limited and have registered the same. English and regional language having wide circulation for
In case any discrepancy is observed in the details the information to shareholders regarding transfer of shares
regarding the bank accounts where the dividend to IEPF. The shares in respect of the shareholders whose
amount has to be directly credited or has to be dividend has not been claimed for seven (7) consecutive
credited through electronic mode, the Bank shall years, upto financial year 2015-16, have been transferred to
issue a dividend warrant and print the dividend the designated Dematerialized Account of the IEPF authority
account details which has to be debited. The dividend during the financial year ending March 31, 2024. As required
warrant shall be dispatched to the registered under the said provisions, all subsequent corporate benefits
address of the shareholder. that may accrue in relation to the above shares shall also be
credited to the said IEPF Authority. (Share figures reported
Unclaimed Dividends are of the face value of Re 1.00 each). Further, the number
As per the applicable provisions of the Companies Act, of shares transferred along with the number of shareholders
2013 read with the Investor Education and Protection Fund whose shares have been transferred to Investor Education &
Authority (Accounting, Audit, Transfer and Refund) Rules, Protection Fund Authority are appended below:
2016 (“IEPF Rules”), the Bank is statutorily required to
No. of Equity
transfer to the Investor Education & Protection Fund (IEPF) Records
Shares
all dividends remaining unclaimed for a period of seven (7) Particulars / No. of
(Face value of
years from the date they became due for payment. Dividends Shareholders
Re. 1.00 each)
for and up to the financial year ended March 31, 2016 have
already been transferred to the IEPF Authority. The details Shares Transferred to
412 4,76,266
of unclaimed dividends for the financial year ended 2023 and IEPF in FY 2017-18
the last date for claiming such dividends are given below: Shares Transferred to
115 82,207
IEPF in FY 2018-19
Dividend for the Date of Declaration Last date for Shares Transferred to
year ended of dividend claiming dividend 81 1,19,812
IEPF in FY 2019-20
March 31, 2023 August 24, 2023 August 17,
2030
Shares Transferred to
65 83,510
IEPF in FY 2020-21
Unclaimed Dividend for the FY 2023-24 includes an amount Shares Transferred to
164 1,92,108
of `3.50 Crores payable to the employee shareholders, IEPF in FY 2021-22
who were allotted shares under the JKBESPS-2023. Listing Shares Transferred to
of the shares allotted under JKBESPS-2023 got delayed 478 3,76,967
IEPF in FY 2022-23
beyond the record date owing to one stock exchange seeking
clarifications regarding the observations made by Auditors Shares Transferred to
795 11,05,049
while issuing the requisite certificate for listing purpose. In the IEPF in FY 2023-24
interregnum, Bank approached RBI for seeking clarification
on the issue of Auditors’ observations. The clarification is As per the terms of Section 124(6) of the Companies Act,
awaited from the Regulator and, as such, payment of said 2013 and Rule 7 of the IEPF Rules, the shareholders whose
dividend was put on hold. corresponding equity shares of the face value of Re 1.00 each
stand transferred to IEPF account can claim those shares
(The Bank has not declared any Dividend for FY 2017-18, FY from IEPF Authority by making an online application in Form
2018-19, FY 2019-20, FY 2020-21 and FY 2021-22) IEPF 5 which is available at http://www.iepf.gov.in.

C) Transfer of Equity Shares to Investor Education and Guidelines to file your claim
Protection Fund (IEPF) Authority • For claiming the shares and dividend from the IEPF
Authority, shareholders can make an online web
As per the provisions of Section 124(6) of the Companies based application through MCA portal. Shareholders
Act, 2013 read with Investor Education and Protection Fund need to register themselves on MCA portal by
Authority (Accounting, Audit, Transfer and Refund) Rules, creating Login ID credentials. After successful
2016 (“IEPF Rules”) which have become effective on October login into MCA portal, shareholders have to click on
31, 2017, all shares in respect of which dividend has not been MCA services tab and choose IEPF- 5 option under
paid or claimed for seven (7) consecutive years or more, “Investor Services” in “MCA Services” tab and
shall be transferred by the company in the name of Investor follow the due process for filing the form.
Education and Protection Fund along with a statement
containing such details as may be prescribed: Provided that • Printout of the duly filled Form IEPF - 5 with claimant

254
 and joint holders (if any) signature and along services or may address their correspondence / complaints
with the acknowledgment issued after uploading to einward.ris@kfintech.com.
the form will have to be submitted together with
an indemnity bond in original, advance receipt GREEN INITIATIVES
in original, cancelled cheque leaf of active bank In terms of Rule 18 of the Companies (Management and
account (details of which mentioned by the claimant Administration) Rules, 2014, a company may send copy of
at the time of uploading the web based form), and notice through electronic mode including e-mail to those
other documents as mentioned in the Form IEPF-5 members who have registered their e-mail address either
to Nodal Officer (IEPF) of the Bank in an envelope with their Depository Participants (DP) or with the company.
marked “Claim for refund from IEPF Authority”. Further, as per Regulation 36 of the SEBI Listing Regulations,
Certain information about the Bank which shall be the listed entity is required to send soft copies of its annual
required to be submitted is as under: report to all those members who have registered their email
(a) Corporate Identification Number (CIN) of address(es) for this purpose.
Company: L65110JK1938SGC000048
(b) Name of the Company: Jammu and Kashmir The members who have changed their email but have not
Bank Limited updated the new e-mail address, the Bank would send the
(c) Address of registered office of the company: said documents to their e-mail address available with the
Jammu and Kashmir Bank Limited, Bank/Registrar and Share Transfer Agent. Said documents
Corporate Headquarters, shall be deemed to have been delivered in compliance with
M.A Road, Srinagar, the provisions of the Act and the SEBI Listing Regulations.
Jammu & Kashmir, 190001. As such, the members are requested to update their e-mail
ID’s with their DP (shares held in electronic form) or with
(d) Email ID of the Bank: sharedeptt_gc@jkbmail. M/s Kfin Technologies Limited (shares held in physical form)
com forthwith.

D) Names of Depositories for dematerialization of Besides, in terms of SEBI circular dated 5 January, 2023,
equity shares (ISIN No. INE168A01041) annual report for the Financial Year 2023-24 and the notice
convening the 86th AGM, are being sent only through
• National Securities Depository Limited (NSDL) electronic mode to those members who have registered their
• Central Depository Services (India) Limited (CDSL) e-mail addresses with the Bank/ their respective DP or with
the Registrar and Share Transfer Agent.
INVESTOR SERVICES
M/s Kfin Technologies Limited has been entrusted with the Accordingly, the physical copy of the said documents is
task of overseeing all aspects relating to investor services not being sent to members who have not registered their
for and on behalf of the Bank. M/s Kfin Technologies Limited e-mail addresses with the Bank/DP or M/s Kfin Technologies
has a proper system in place to ensure that required service Limited. However, in the event , a member desires to receive
is provided to the investors of the Bank in accordance with a physical copy of the annual report , he/she is requested
applicable corporate and securities laws and within the to write to einward.ris@kfintech.com or sharedeptt_gc@
accepted service criterions. jkbmail.com quoting DP ID and client ID or folio number, as
the case may be, to enable the Bank to provide physical copy
Investors are requested to write to the registered office of of the said documents, free of cost. Please note that the said
the Bank or to M/s Kfin Technologies Limited for availing any documents are also being uploaded on the Bank’s website.

255
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Feedback Form
Dear Member,
J&K Bank requests you to rate the following aspects of this Annual report on the scale given below:

Below Average Fair Good Excellent

Expectation

Is it informative?

How do you rate the Clarity of

the contents?

Is the financial information

Comprehensive?

Is the content of this report

relevant to you

What is your Overall feedback

on the report?

What is your Overall feedback

on the report?

What is your Overall feedback

on the report?

Signature………………….................................................……………………………

Name……………………………………………………................................................

Address………………………………………………….................................................

Folio No./Client ID…………………………………..............................................

256
 Form No. SH-13
NOMINATION FORM
[Pursuant to section 72 of the Companies Act, 2013 and Rule 19(1) of the Companies
(Share Capital and Debentures) Rules 2014]

To
Jammu and Kashmir Bank Limited
Corporate Headquarters, M. A. Road,
Srinagar – 190001

I/We..................................................................................................................................................................................................................... ............
....................................................................................................... the holder(s) of the securities particulars of which are given hereunder
wish to make nomination and do hereby nominate the following persons in whom shall vest, all the rights in respect of such
securities in the event of my/our death.

(1) PARTICULARS OF THE SECURITIES (in respect of which nomination is being made)
Nature of securities Folio No. No. of securities Certificate Distinctive

No. No.

(2) PARTICULARS OF NOMINEE/S

(a) Name:.......................................................................................................................................................................................................
(b) Signature of Nominee: .......................................................................................................................................................................
(c) Date of Birth:..........................................................................................................................................................................................
(d) Father’s/Mother’s/Spouse’s name:..................................................................................................................................................
(e) Occupation:............................................................................................................................................................................................
(f) Nationality:.............................................................................................................................................................................................
(g) Address: .................................................................................................................................................................................................
(h) E-mail id:..................................................................................................................................................................................................
(i) Relationship with the security holder: ...........................................................................................................................................

(3) IN CASE NOMINEE IS A MINOR

(a) Date of birth:..........................................................................................................................................................................................
(b) Date of attaining majority: ................................................................................................................................................................
(c) Name of guardian:................................................................................................................................................................................
(d) Signature of guardian:.........................................................................................................................................................................
(e) Address of guardian:............................................................................................................................................................................

(4) PARTICULARS OF NOMINEE IN CASE MINOR NOMINEE DIES BEFORE ATTAINING AGE OF MAJORITY
a) Name:..........................................................................................................................................................................................................
b) Signature of Nominee: ..........................................................................................................................................................................
c) Date of birth:............................................................................................................................................................................................
d) Father’s/Mother’s/Spouse’s name:.....................................................................................................................................................
e) Occupation:...............................................................................................................................................................................................
f) Nationality:................................................................................................................................................................................................
g) Address: . ..................................................................................................................................................................................................
h) E-mail id:....................................................................................................................................................................................................
i) Relationship with the security holder: ..............................................................................................................................................
j) Relationship with the minor nominee: ..............................................................................................................................................

257
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Security Holder (s) Witness:

Signature:............................................................................. Signature:.............................................................................

Name:.................................................................................... Name:....................................................................................

Address:................................................................................ Address:................................................................................

................................................................................................ ................................................................................................

................................................................................................ ................................................................................................

INSTRUCTIONS:

1. In case you are holding physical shares, the duly filled-in form be sent to Company Secretary, Jammu and Kashmir
Bank Limited, Board Secretariat, Corporate Headquarters, M.A. Road, Srinagar - 190001 or to our Share Transfer
Agent: M/s KFin Technologies Limited Unit: J&K Bank Limited, Selenium Tower B, Plot No. 31 – 32, Financial District,
Nanakramguda, Serilingampally Mandal, Hyderabad - 500 032, Telangana, India, along with duly completed and signed
ISR forms. In Case you are holding shares in Dematerialised form, the duly filled-in form be sent to the Depository
Participant where you are having Demat Account.

2. Please use separate form for each folio. Nomination is applicable to the folio, irrespective of the number of shares
registered under the folio. Only one nomination per folio per instance would be entertained

3. The nomination can be made by individuals only applying / holding share(s) on their own behalf singly or jointly upto
two persons. Non-Individuals including society, trust, body Corporate, partnership firm, karta of Hindu undivided
family, holder of power of attorney, cannot nominate. If the shares are held jointly, all joint holders will sign the
nomination form

4. A minor can be nominated by a holder of share(s) and in that event the name and address of the guardian shall be
given by the holder.

5. The nominee shall not be a trust, society, body Corporate, karta of Hindu undivided family or a power of attorney
holder. A nonresident Indian can be a nominee on Repatriable basis (subject to the Reserve Bank of India’s approval
as applicable).

6. Nomination stands rescinded upon transfer of share(s) or on receipt of Form No. SH-14 (cancellation or variation of
Nomination).

7. Transfer of shares in favour of a nominee shall be a valid discharge by a Company against the legal heirs.

8. The form must be complete in all respects and duly witnessed. Incomplete form is not a valid nomination

9. Subject to rules and regulations as applicable from time to time.

258
 Form No. SH-14
CANCELLATION OF VARIATION OF NOMINATION
[Pursuant to sub – section (3) section 72 of the Companies Act, 2013 and rule 19(9) of the Companies
(Share Capital and Debentures) Rules 2014]

To
Jammu and Kashmir Bank Limited
Corporate Headquarters, M. A. Road,
Srinagar – 190001

I/We hereby cancel the nomination(s) made by me/us in favour of..............................................................................................................

.................................................................................(name and address of the nominee) in respect of the below mentioned securities.
I/We hereby nominate the following person in place of ………………………………………………….. as nominee in respect of the below
mentioned securities in whom shall vest all rights in respect of such securities in the event of my/ our death.

(1) (1) PARTICULARS OF THE SECURITIES (in respect of which nomination is being cancelled / varied)
Nature of securities Folio No. No. of securities Certificate Distinctive

No. No.

(2) PARTICULARS OF NOMINEE/S

(a) Name:.......................................................................................................................................................................................................
(b) Signature of Nominee: .......................................................................................................................................................................
(c) Date of Birth:..........................................................................................................................................................................................
(d) Father’s/Mother’s/Spouse’s name:..................................................................................................................................................
(e) Occupation:............................................................................................................................................................................................
(f) Nationality:.............................................................................................................................................................................................
(g) Address: .................................................................................................................................................................................................
(h) E-mail id:..................................................................................................................................................................................................
(i) Relationship with the security holder: ...........................................................................................................................................

(3) IN CASE NOMINEE IS A MINOR

(a) Date of birth:..........................................................................................................................................................................................
(b) Date of attaining majority: ................................................................................................................................................................
(c) Name of guardian:................................................................................................................................................................................
(d) Signature of guardian:.........................................................................................................................................................................
(e) Address of guardian:............................................................................................................................................................................

(4) PARTICULARS OF NOMINEE IN CASE MINOR NOMINEE DIES BEFORE ATTAINING AGE OF MAJORITY
a) Name:..........................................................................................................................................................................................................
b) Signature of Nominee: ..........................................................................................................................................................................
c) Date of birth:............................................................................................................................................................................................
d) Father’s/Mother’s/Spouse’s name:.....................................................................................................................................................
e) Occupation:...............................................................................................................................................................................................
f) Nationality:................................................................................................................................................................................................
g) Address: . ..................................................................................................................................................................................................
h) E-mail id:....................................................................................................................................................................................................
i) Relationship with the security holder: ..............................................................................................................................................
j) Relationship with the minor nominee: ..............................................................................................................................................

259
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Security Holder (s) Witness:

Signature:............................................................................. Signature:.............................................................................

Name:.................................................................................... Name:....................................................................................

Address:................................................................................ Address:................................................................................

................................................................................................ ................................................................................................

................................................................................................ ................................................................................................

INSTRUCTIONS:

1. In case you are holding physical shares, the duly filled-in form be sent to Company Secretary, Jammu and Kashmir
Bank Limited, Board Secretariat, Corporate Headquarters, M.A. Road, Srinagar - 190001 or to our Share Transfer
Agent: M/s KFin Technologies Limited Unit: J&K Bank Limited, Selenium Tower B, Plot No. 31 – 32, Financial District,
Nanakramguda, Serilingampally Mandal, Hyderabad - 500 032, Telangana, India, along with duly completed and signed
ISR forms. In Case you are holding shares in Dematerialised form, the duly filled-in form be sent to the Depository
Participant where you are having Demat Account.

2. Please use separate form for each folio. Nomination is applicable to the folio, irrespective of the number of shares
registered under the folio. Only one nomination per folio per instance would be entertained

3. The nomination can be made by individuals only applying / holding share(s) on their own behalf singly or jointly upto
two persons. Non-Individuals including society, trust, body Corporate, partnership firm, karta of Hindu undivided
family, holder of power of attorney, cannot nominate. If the shares are held jointly, all joint holders will sign the
nomination form

4. A minor can be nominated by a holder of share(s) and in that event the name and address of the guardian shall be
given by the holder.

5. The nominee shall not be a trust, society, body Corporate, karta of Hindu undivided family or a power of attorney
holder. A non resident Indian can be a nominee on Repatriable basis (subject to the Reserve Bank of India’s approval
as applicable).

6. Nomination stands rescinded upon transfer of share(s) or on receipt of Form No. SH-14 (cancellation or variation of
Nomination).

7. Transfer of shares in favour of a nominee shall be a valid discharge by a Company against the legal heirs.

8. The form must be complete in all respects and duly witnessed. Incomplete form is not a valid nomination

9. Subject to rules and regulations as applicable from time to time.

260
 Form ISR – 1
(SEBI circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated November 03, 2021 on Common and
Simplified Norms for processing investor’s service request by RTAs and norms for furnishing PAN, KYC details and
Nomination)

REQUEST FOR REGISTERING PAN, KYC DETAILS OR CHANGES / UPDATION THEREOF

[For Securities (Shares / Debentures / Bonds, etc.) of listed companies held in physical form]

Date:___ /___ /______

A. I / We request you to Register / Change / Update the following (Tick  relevant box)

 PAN  Bank details  Signature

 Mobile number  E-mail ID  Address

B. Security Details:

Name of the Issuer Company Folio No.:

1.
Name(s) of the Security holder(s) as per the
2.
Certificate(s)
3.

Number & Face value of securities

Distinctive number of securities

From To
(Optional)

C. I / We are submitting documents as per Table below (tick üas relevant, refer to the instructions):

Document /
Information / Instruction / Remark
Details

1 PAN of (all) the (joint) holder(s)

PAN               
Whether it is
              
Valid (linked to
Aadhaar):
PAN shall be valid only if it is linked to Aadhaar by March 31, 2022*
 Yes No
For Exemptions / Clarifications on PAN, please refer to Objection Memo in page 4

2 Demat Account               
Number
Also provide Client Master List (CML) of your Demat Account, provided by the Depository Participant.

3 Proof of Address Any one of the documents, only if there is change in the address;
of the first holder  Client Master List (CML) of your Demat Account, provided by DP.
 Valid Passport/ Registered Lease or Sale Agreement of Residence / Driving License / Flat Maintenance
bill.
 Utility bills like Telephone Bill (only land line), Electricity bill or Gas bill - Not more than 3 months old.
 Identity card / document with address, issued by any of the following: Central/State Government and
its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial
Banks, Public Financial Institutions.
 For FII / sub account, Power of Attorney given by FII / sub-account to the Custodians (which are duly
notarized and / or apostilled or consularised) that gives the registered address should be taken.
 The proof of address in the name of the spouse

261
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Account Number: _________________________________

Bank Name: _____________________________________
Branch Name: ___________________________________
Bank details
4 IFS Code: _______________________________________
Provide the following:
 original cancelled cheque with name of security holder printed on it or Bank Passbook or Bank Statement
attested by the Bank #

5 E-mail address
___________________________________________#

6 Mobile
______________________________ #

* or any date as may be specified by the CBDT (DP: Depository Participant)

# In case it is not provided, the details available in the CML will be updated in the folio
Authorization: I / We authorise you (RTA) to update the above PAN and KYC details in my / our folio (s) _________, ________,(use
Separate Annexure if extra space is required) in which I / We are the holder(s) (strike off what is not applicable).
Declaration: All the above facts stated are true and correct.

Holder 1 Holder 2 Holder 3

Signature 

Name 

Full address 

PIN                  

Mode of submission of documents to the RTA

Please use any one of the following mode;
1. In Person Verification (IPV): by producing the originals to the authorized person of the RTA, who will retain copy(ies)
of the document(s)
2. In hard copy: by furnishing self-attested photocopy(ies) of the relevant document, with date
3. Through e-mail address already registered with the RTA, with e-sign of scanned copies of documents
4. Service portal of the RTA with e-sign with scanned copies of documents, if the RTA is providing such facility
Note
• It is mandatory for holders of physical securities in listed company to furnish PAN, full KYC details (address proof, bank
details, e-mail address, mobile number) and Nomination (for all the eligible folios).

• Upon receipt or up-dation of bank details, the RTA will automatically, pay electronically, all the moneys of / payments to the
holder that were previous unclaimed / unsuccessful.
• RTA shall update the folio with PAN, KYC details and Nominee, within seven working days of its receipt. However, cancella-
tion of nomination, shall take effect from the date on which this intimation is received by the company / RTA.

• RTA shall not insist on Affidavits or Attestation / Notarization or indemnity for registering / up-dating / changing PAN, KYC
details and Nomination.

• Specimen Signature • Provide banker’s attestation of the signature of the holder(s) as per Form ISR – 2 in SEBI circular
SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated November 03, 2021) and
• original cancelled cheque with name of security holder printed on it or Bank Passbook or Bank
Statement attested by the Bank

• Nomination** • Providing Nomination: Please submit the duly filled up Nomination Form (SH-13) or ‘Declaration
to Opt out of Nomination’ as per Form ISR–3, in SEBI circular SEBI/HO/MIRSD/MIRSD_RTAMB/P/
CIR/2021/655 dated November 03, 2021
• Change in Existing Nomination: Please use Form SH-14 in SEBI circular SEBI/HO/MIRSD/MIRSD_
RTAMB/P/CIR/2021/655
• Cancellation of Existing Nomination: use Form SH-14 & Form ISR – 3

** Nomination (Form SH-13 or SH-14) / ‘Declaration to Opt-Out of nomination’ (Form ISR – 3), has to be furnished by the
holder(s) separately for each listed company.
(Page 3 & 4 is for information to investors; print out of the same is not required)

262
 Objection Memo that can be raised by the RTA
(only if the relevant document / details is / are not available in the folio or if there is a mismatch / discrepancy
in the same or change thereof)

Note
RTAs shall raise all objections, if any / at all, in one instance only; the RTA shall not raise further objections on the same issue
again and again, after the holder / claimant furnishes all the prescribed documents and details, unless there is any deficiency
/ discrepancy in the same.

No. Item Documents / Details to be provided to the RTA by the holder(s) / claimant(s)
1 PAN – Exceptions and ‘Exemptions/clarifications to PAN’, as provided in clause D to ‘Instructions/Check List
Clarification for Filing KYC Forms’ in Annexure – 1 to SEBI circular No. MIRSD/SE/Cir-21/2011 dated
October 05, 2011 on Uniform Know Your Client (KYC) Requirements for the Securities
Market, shall also applicable for holder(s) / claimant(s) of securities held in physical
mode.
2 Minor mismatch in The RTA shall intimate the holder at the existing address, seeking objection, if any,
Signature - minor within 15 days
3 Major mismatch in • Banker’s attestation of the signature of the holder(s) as per Form ISR – 2
Signature or its non-
availability with the RTA • Original cancelled cheque with name of security holder printed on it or Bank Pass-
book or Bank Statement attested by the Bank
4 Mismatch in Name Furnish any one of the following documents, explaining the difference in names;
• Unique Identification Number (UID) (Aadhaar)

• Valid Passport

• Driving license

• PAN card with photograph

• Identity card / document with applicant’s Photo, issued by any of the following: Cen-
tral / State Government and its Departments, Statutory / Regulatory Authorities,
Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institu-
tions

• Marriage certificate

• Divorce decree
5 Present address of the RTA shall issue intimation to both the old and new addresses.
holder is not matching • In case where the letter is undelivered at the old address, RTA shall not insist for
with the address available any proof of the old address provided the current address proof is in the form of
in the folio an address proof issued by a Government Authority.

The above procedure will be applicable for request for change in address of the holder
also

(Page 3 & 4 is for information to investors; print out of the same is not required)

263
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Form ISR – 2
(SEBI circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated November 03, 2021)
Confirmation of Signature of securities holder by the Banker

1. Bank Name and Branch

2. Bank contact details

Postal Address

Phone Number

Email address

3. Bank Account Number

4. Account opening date

5. Account Holder’s Name 1.

2.

3.

6. Latest photograph of the account holder(s)

1st Holder 2nd Holder 3rd Holder

Photo Photo Photo

Account holder(s) details as per Bank Records

a) Address

b) Phone Number

c) Email address

d) Signature(s)

1st Holder 2nd Holder 3rd Holder

Signature Signature Signature

Seal of the Bank Signature verified as recorded with the Bank

(Signature)

Place: Name of the Bank Manager

Date: Employee Code

Email address

264
 Form ISR – 3
Declaration Form for Opting-out of Nomination
by Holders of Physical Securities in Listed Companies
(SEBI circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated November 03, 2021)

[Under Section 72 r/w Section 24 (1) (a) of Companies Act, 2013 r/w Section 11(1) and 11B of SEBI Act, 1992 and Clause C in
Schedule VII and Regulation 101 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

Name of the Company : -----------------------------------------------------------------------------------------------------------------------

Registered Address of the Company : -----------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------

I/We…….………………………………………………………………………………………………………………………………………………………………………………………………
………………., the holder(s) of the securities particulars of which are given hereunder, do not wish to nominate any person(s) in
whom shall vest, all the rights in respect of such securities in the event of my /our death.

Nature of Securities Folio No No. of Certificate No. Distinctive No(s)

Tick √ as relevant Securities ( From – To )

Equity / Debentures

I/ We understand the issues involved in non-appointment of nominee(s) and further are aware that in case of my / our death,
my / our legal heir(s) / representative(s) are required to furnish the requisite documents / details, including, Will or documents
issued by the Court like Decree or Succession Certificate or Letter of Administration / Probate of Will or any other document
as may be prescribed by the competent authority, for claiming my / our aforesaid securities.

Name(s) and Address of Security holder(s)

First Holder Second Holder Third Holder
Name

Address

PIN_______________ PIN_____________ PIN_____________

Signature

Witness Detail:
Name of Witness
Signature

Address of Witness
Date
PIN _____________

265
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Form ISR-4
(Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/8 dated January 25, 2022 on Issuance of Securities in
dematerialized form in case of Investor Service Requests)
Request for issue of Duplicate Certificate and other Service Requests
(For Securities - Shares / Debentures / Bonds, etc., held in physical form)

Date:___ /___ /______

A. Mandatory Documents / details required for processing all service request:

I / We are submitting the following documents / details and undertake to request the Depository Participant to dematerialize
my / our securities within 120 days from the date of issuance of Letter of Confirmation, received from the RTA/Issuer
Company(tick  as relevant, refer to the instructions):

• Demat Account No. (If available):                

• Provide Client Master List (CML) of your Demat Account from the Depository Participant*

• Provide the following details, if they are not already available with the RTA (see SEBI circular dated November 03, 2021
in this regard)

PAN Specimen Signature

Nomination / Declaration to Opt-out

* (Your address, e-mail address, mobile number and bank details shall be updated in your folio from the information available
in your CML). You can authorize the RTA to update the above details for all your folios. In this regard, please refer to and use
Form ISR-1in SEBI circular dated November 03, 2021.

B. I / We request you for the following (tick  relevant box)

 Issue of Duplicate certificate  Claim from Unclaimed Suspense Account

 Replacement/ Renewal / Exchange of securities certificate  Endorsement

 Sub-division / Splitting of securities certificate  Consolidation of Folios

 Consolidation of Securities certificate  Transmission

 Transposition(Mention the new order of holders here)

 Change in name
 Change in address

C. I / We are enclosing certificate(s) as detailed below**:

Name of the Issuer Company

Folio Number

1.
Name(s) of the security holder(s) as per the
2.
certificate(s)
3.
Certificate numbers
Distinctive numbers
Number & Face value of securities

** Wherever applicable / whichever details are available

266
D. Document / details required for specific service request:

 Duplicate securities certificate

 Claimfrom Unclaimed Suspense Account

Securities claimed (in numbers)

(in words)

 Replacement / Renewal / Exchange of securities certificate

(that is defaced, mutilated, torn, decrepit, worn out or where the page on the reverse is fully utilized)

 Endorsement

 Sub-division / Splitting of securities certificate

 Consolidation of securities certificate/Folios

 Transmission

 Transposition

Provide / attach original securities certificate(s) for request for item numbers III to VIII above.

Declaration: All the above facts stated are true and correct to best of my / our knowledge and belief.
Security Holder 1 / Claimant SecurityHolder 2 SecurityHolder 3
Signature   

Name   

Full address 

PIN                           

267
 Jammu and Kashmir Bank Limited
Registered Office: Corporate Headquarters, M A Road
Srinagar – Jammu & Kashmir – 190001 Tel: +91-194-2481930-35


Email: board.sectt@jkbmail.com Web: www.jkbank.com

CIN: L65110JK1938SGC000048

ATTENDANCE SLIP
(PLEASE BRING THIS ATTENDANCE SLIP DULY COMPLETED WITHOUT FAIL AND HAND IT
OVER AT THE ENTRANCE FOR OBTAINING ENTRY PASS)
                         
I/We hereby record my/our presence at the 86th Annual General Meeting of the JAMMU
AND KASHMIR BANK LIMITED held at Jammu and Kashmir Bank Limited, Corporate
Headquarters, M. A. Road, Srinagar, Jammu and Kashmir – 190001 on Saturday, 17th August,
2024 at 11:00 A.M.

Name of the Shareholder:

Folio No./ Client ID/ DP ID:

Name of the Proxy / representative, if any

I certify that I am a registered Shareholder/ Proxy for the Shareholder of the Bank

Signature of the Shareholder / Proxy

Notes:

1. Attendance slip which is not complete in all respects shall not be accepted.
2. The registration counter will remain open between 09:00 A.M to 11:00 A.M.
3. Joint Shareholders may obtain additional attendance slip on request.
 Jammu and Kashmir Bank Limited
Registered Office: Corporate Headquarters, M A Road


Srinagar – Jammu & Kashmir – 190001 Tel: +91-194-2481930-35 MGT-11

Email: board.sectt@jkbmail.com Web: www.jkbank.com
CIN: L65110JK1938SGC000048 PROXY FORM
[Pursuant to Section 105 (6) of the Companies Act, 2013 and Rule 19 (3) of the Companies (Management and Administration)
Rules, 2014]

Name (s) of the Member (s)

Registered Address
Email ID
Folio No. / Client ID
DP ID

I / We being the member (s) of __________________shares of the above named Company, hereby appoint

1. Name
Address
E-mail ID
Signature or failing him
2. Name
Address
E-mail ID

Signature

as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 86th Annual General Meeting of the
Bank to be held on Saturday, 17th August, 2024 at 11:00 A.M. at Jammu and Kashmir Bank Limited, Corporate Headquarters,
M. A. Road, Srinagar, Jammu and Kashmir – 190001 and at any adjournment thereof in respect of such resolutions as are
indicated below:

I/ We assent I/ We Dissent
Type of to the to the
Resolution Resolution
Resolution resolution resolution
No.
(For) (Against)
Adoption of Financial Statements for the year ended 31st March,
1. Ordinary
2024 .
2. To declare dividend on Equity Shares of the Bank. Ordinary
Re-appointment of Mr. R K Chhibber (DIN: 08190084) who retires
3. Ordinary
by rotation.
Re-appointment of Mr. Sudhir Gupta (DIN: 09614492) who retires
4. Ordinary
by rotation.
Appointment & Fixation of Remuneration to Statutory Auditors for
5. Ordinary
the Financial Year 2024-25.
6. To Pay Fixed Remuneration to Non-Executive Directors of the Bank. Ordinary

Signature of the Shareholder: Affix

Revenue
Stamp
Signature of the Proxy Holder(s): Signed this............................day of..................., 2024

NOTE: This form of Proxy in order to be effective should be duly completed and deposited at the Registered Office of the
Bank, not less than 48 hours before the commencement of the Meeting.
 JAMMU AND KASHMIR BANK LIMITED
ANNUAL REPORT 2023-24

Form No. MGT - 12 Polling Paper

[Pursuant to Section 109(5) of the Companies Act, 2013 and Rule 21(1) (c) of the Companies
(Management and Administration) Rules, 2014]

Name of the Company: Jammu and Kashmir Bank Limited

Registered Office: M.A. Road, Srinagar-190001
CIN: L65110JK1938SGC000048

BALLOT PAPER
S
Particulars Details
No
Name of the first named Shareholder (In Block
1.
Letters)
2. Postal Address
Registered Folio No. / Client ID No. (applicable to investors
3.
holding shares in dematerializedform)
4. Class of Shares Equity Shares
5. Number of Shares
I hereby exercise my vote in respect of Ordinary Resolutions enumerated below by recording my assent or
dissent to the said resolutions in the following manner:
I dissent
I assent to the
No. Item No. from the
resolution
resolution
To consider and pass with or without modification(s) the following
resolution as an Ordinary Resolution:
“Resolved that approval of Members be and is hereby accorded to
1. Standalone and Consolidated Financial Statements as at 31st March,
2024 together with Auditor’s Report and comments of C&AG thereon,
together with Report of Directors, be and are hereby approved and
adopted.”

To consider and pass with or without modification(s) the following

resolution as an Ordinary Resolution:
2. “Resolved that approval of Members be and is hereby accorded for
payment of Final Dividend of 215% (i.e. Rs.2.15 per Equity Share of Face
Value Re.1/-)”

To consider and pass with or without modification(s) the following

resolution as an Ordinary Resolution:
“Resolved that Mr. R K Chhibber (DIN: 08190084), who retires by
3.
rotation and being eligible, offers himself for re-appointment be and
hereby re-appointed as Director of the Bank, subject to retiring by
rotation.”

To consider and pass with or without modification(s) the following

resolution as an Ordinary Resolution:
“Resolved that Mr. Sudhir Gupta (DIN: 09614492) , who retires by
4.
rotation and being eligible, offers himself for re-appointment be and
hereby re-appointed as Director of the Bank, subject to retiring by
rotation.”

270
 To pass with or without modification(s) the following resolution as an
Ordinary Resolution:
“Resolved that pursuant to the provisions of Section 142 and other
applicable provisions, if any, of the Companies Act, 2013 and Section
30(1A) of the Banking Regulation Act, 1949, the Board of Directors,
5. be and are hereby authorized to appoint & pay Remuneration to
Statutory Auditors for the Financial Year ending 31st March 2025, as
per the schedule of the RBI applicable to Public Sector Banks, including
remuneration for the Limited Review of Quarterly Financial Results
for the periods ending 30th June, 2024, 30th September, 2024 and 31st
December, 2024.”
To consider and pass with or without modification(s) the following
resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the Reserve Bank of India circular
No.DoR.HGG.GOV.REC.75/29.67.001/ 2023-24 dated February
9, 2024 and subject to such approvals, consents, clarifications,
permissions and sanctions, as may be required from the appropriate
authorities for the purpose, approval of the Shareholders of the Bank
be and is hereby, accorded to the payment of fixed compensation to
6. the Non-Executive Directors of the Bank (except Chairperson of the
Board and directors who are in the full employment of Government
or the Reserve Bank of India) an amount as may be deemed fit by the
Board from time to time subject to a maximum of Rs.10.00 lacs per
annum per director w.e.f. April 2023.”

Place: Srinagar
Date: 17th August, 2024 (Signature of the Shareholder)

271