Jammu and Kashmir Bank Ltd

Your Board of Directors has pleasure in presenting the 86^th Annual Report of your Bank, together with the audited Balance Sheet, Profit and Loss Account and the report on business and operations for the year ended 31^st March, 2024.

The aggregate business of the Bank stood at 228537.40 Crore at the end of the financial year 2023-24.

The total deposits of the Bank grew by 12737.15 Crore from 122037.74 Crore as on 31^st March, 2023 to 134774.89 Crore as on 31^st March, 2024, a growth of 10.44 percent.

CASA deposits of the Bank at 68072.61 Crore constituted 50.51 percent of total deposits of the Bank.

Cost of deposits for the FY stood at 4.57 percent.

The net advances of the Bank stood at 93762.51 Crore as on 31^st March, 2024.

Yield on advances for the FY stood at 9.54 percent.

Average Priority Sector Advances stood at 43,010.17 Crore as on 31^st March, 2024.

The Bank effected cumulative cash recovery, upgradation of NPAs and recovery in technical write-off of 2026.75 Crore during FY 2023-24.

Investment portfolio of the Bank stood at 34986.71 Crore as on 31^st March, 2024.

The Bank earned a commission income of 105.77 Crore from Insurance Business by mobilizing a business of 680.50 Crore in life insurance (including fresh retail life business of 208.92 Crore, Credit life business of 98.33 Crore and renewal business of 373.25 Crore) and 252.23 Crore in non-life insurance during financial year 2023-24

The Interest income of the Bank stood at 11212.37 Crore in the year 2023-24. Interest expenses stood at 6008.68 Crore for FY 2023-24. The Net Interest Income stood at 5203.69 Crore for FY 2023-24.

The Net Income from operations [Interest Spread plus Non-interest Income] stood at 6029.17 Crore in the FY 2023-24.

The Operating Expenses registered an increase of 108.69 Crore during the financial year 2023-24 and stood at 3752.29 Crore as compared to 3643.60 Crore in 2022-23.

The Cost to Income ratio (Operating Expenses to Net Operating Income) stood at 62.24 percent in the financial year 2023-24.

The Gross Profit for the financial year 2023-24 stood at 2276.88 Crore.

The Provision for Loan Losses, Standard Assets, Taxation and others aggregated to 509.61 Crore in the financial year 2023-24.

The Bank registered a Net Profit of 1767.27 Crore for the financial year 2023-24.

In view of the overall performance of the Bank and while retaining capital to support future growth, the Board at its meeting held on 4^th May, 2024, recommended dividend of 215 per cent for the financial year 2023-24 for approval of the shareholders at the 86^th Annual General Meeting. If approved, the total outflow on account of dividend for the financial year 2023-24 will be 236.75 Crores. The record date for payment of dividend is mentioned in the notice of the ensuing 86^th AGM of the Bank. In terms of the Income Tax Act, 1961, the dividend income is taxable in the hands of the Members.

Therefore, the dividend will be paid to the Members after deduction of applicable taxes, if any. In terms of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Bank has formulated and adopted a Dividend Distribution Policy with the objective of appropriately rewarding Shareholders through dividends while retaining the capital required for meeting regulatory capital requirements, maintaining adequate buffers and supporting its future growth. The said Policy has been hosted on the website of the Bank at https:// www.jkbank.com/investor/stockExchangeIntimation/ corporateGovernancepolicies.php.

During the financial year 2023-24, 15 new branches were established, thereby taking the number of branches to 1004 (including IARBs) as on 31.03.2024, spread over 18 states and 4 union territories. The area-wise breakup of the branch network (excluding extension counters/ mobile branches and service branches) on the basis of census 2011 as at the end of FY 2023-24 is as under:

During the financial year 2023-24, 13 EBUs/USBs were established taking the total number of EBUs/USBs to 94 and 31 ATMs were opened in FY23-24 taking the ATM network of the Bank to 1417 as on 31.03.2024. Besides 45 CRMs (Cash Recycler Machines) were opened in FY23-24 taking the total 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 conducted periodically, which determines the adequate level of capitalization needed to meet the regulatory norms and current and future business needs.

The capital management framework of the Bank is complemented by the risk management framework, which covers the business and capital plans and stress testing results integrated with the internal capital adequacy assessment process while assessing its impact on the capital ratios and adequacy of capital buffers for current and future periods.

As at March 31, 2024, the Subscribed and Paid-up Capital of the Bank stood at 110,11,82,463.00 comprising of 110,11,82,463 equity shares, which is 6,97,02,602 equity shares more than as at March 31, 2023. The said capital was raised by way of allotment of 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 Qualified Institutional Buyers (QIB) aggregating to a total amount 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 Net Worth of the Bank stood at 10966.77 Crores on 31^st March 2024.

Capital Adequacy Ratio under Basel III stood at 15.33 percent as on March 31, 2024. The CET 1 component of CRAR is 12.02 percent and TIER 1 component of CRAR is 13.09 percent as on 31^st March 2024.

Adjusted Book Value per Share for the financial year 2023-24 stood at 92.90.

Your Bank has Twelve (12) Directors consisting of Managing Director & Chief Executive Officer, Executive Director and 10 Non-Executive Directors as on 31^st March, 2024.

Non-Independent Executive Directors

Mr. Baldev Prakash (DIN: 09421701), Non Independent Executive Director has been serving as the MD & CEO of the Bank since December 30, 2021, with the approval of the Reserve Bank of India (RBI). Mr. Sudhir Gupta (DIN: 09614492), Non Independent Executive Director has been serving as the Executive Director of the Bank since December 14, 2022 with the approval of the Reserve Bank of India (RBI).

Non-Independent Non-Executive Directors

Dr. Pawan Kotwal, IAS (DIN: 02455728),

Mr. Santosh Dattatraya Vaidya, IAS (DIN: 05340193),

Dr. Mandeep K Bhandari, IAS (DIN: 07310347) and

Mr. Rajesh Kumar Chhibber (DIN: 08190084) are the Non-Independent Non-Executive Directors of the Bank.

Independent Non-Executive Directors

In terms of the definition of ‘Independent Director' as prescribed under Regulation 16(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 149(6) of the Companies Act, 2013 and based on the declarations/disclosures received from the Directors, the following Non–Executive Directors are Independent Directors:-

All Independent Directors of the Bank have given their respective declarations stating that they meet the criteria of independence as laid down under the applicable laws and in the opinion of the Board, the Independent Directors meet the said criteria.

During the FY 2023-24, there were following changes in the composition of the Board:

Dr. Pawan Kotwal, IAS (DIN: 02455728) was appointed as a Rotational Director on the Board of the Bank w.e.f. July 24, 2023.

Mr. Santosh Dattatraya Vaidya, IAS (DIN: 05340193) was appointed as Govt. Nominee Director w.e.f. August 22, 2023.

Dr. Mandeep K Bhandari, IAS (DIN: 07310347) was appointed as a Rotational Director on the Board of the Bank w.e.f. October 20, 2023.

There were no changes in the Board of Directors after the closure of Financial Year.

Mr. Rajesh Kumar Chhibber (DIN: 08190084) and Mr. Sudhir Gupta (DIN: 09614492), who are retiring by rotation, have offered themselves for re-appointment. The profile and necessary details of the above mentioned Directors have been included in the Notice of AGM and Corporate Governance Report.

During the financial year 2023-24, Mr. Baldev Prakash, Managing Director & Chief Executive Officer, Mr. Sudhir Gupta, Executive Director, Mr. Pratik D Punjabi, Chief Financial Officer and Mr. Mohammad Shafi Mir, Company Secretary were the Key Managerial Personnel of the Bank.

None of the Key Managerial Personnel has resigned during the financial year.

Mr. Fayaz Ahmad Ganai was appointed as Chief Financial Officer of the Bank on April 16, 2024 in place of Mr. Pratik D Punjabi, who resigned from the services of the Bank w.e.f. April 05, 2024 in order to explore professional opportunities outside the Bank.

During the year under review, Sixteen (16) Board Meetings were held in due compliance with statutory provisions, on the following dates: 27.04.2023, 04 & 05.05.2023, 30.05.2023, 20.06.2023, 15.07.2023, 24.07.2023, 16.08.2023, 25.08.2023, 26.09.2023, 20.10.2023, 20.11.2023, 15.12.2023, 20.01.2024, 08.02.2024, 09.03.2024, 23.03.2024.

The Bank has following Committees of the Board:

1) Management Committee

2) Audit Committee

3) Special Committee of Board on Frauds

4) Stakeholders Relationship Committee

5) Information Technology Strategy Committee

6) Corporate Social Responsibility & Environmental, Social and Governance Committee

7) Integrated Risk Management Committee

8) Customer Service Committee

9) Nomination and Remuneration Committee 10) Legal and Impaired Assets Resolution Committee

The compositions, powers, roles, terms of reference, etc. of aforesaid Committees are given in detail in the statement on Corporate Governance annexed to this report.

The Nomination and Remuneration Committee (NRC) has approved a framework / policy for evaluation of the Board, Committees of the Board and the individual Members of the Board (including the Chairperson). In conformity with the said policy requirements, following is the process of evaluation:

The performance evaluation of all the Independent Directors is conducted by the entire Board excluding the Director being evaluated.

Independent Directors evaluate the performance of Non–Independent Directors, Chairperson of the Board, Whole Time Directors and Board as a whole and submit the report to the Board alongwith necessary comments and suggestive course of action arising out of the evaluation.

The performance evaluation of the Committees of the Board is conducted by the entire Board.

A questionnaire for the evaluation of the Board, its Committees and the individual Members of the Board (including the Chairperson) designed in accordance with the said framework and covering various aspects of the performance relating to the following is forwarded to individual Directors:

The responses received to the questionnaires on evaluation of the Board, its Committees, individual Directors including

Chairperson are consolidated and discussed by the Board.

Your Bank has in place a process, wherein, declarations are obtained from the Directors regarding fulfilment of the ‘fit and proper' criteria in accordance with the RBI guidelines/ Companies Act, 2013. The declarations from the Directors other than Members of the NRC are placed before the NRC and the declarations of the Members of the NRC are placed before the Board. Assessment on whether the Directors fulfil the said criteria is made by the NRC / Board on an annual basis.

The Fiscal Year for the Bank is reckoned as starting from 01st April to 31^st March every year.

J&K Bank is the only Private Sector Bank in the Country assigned with responsibility of convening State/ UT Level Bankers Committee-SLBC/ UTLBC meetings. The Bank continued to satisfactorily discharge its Lead Bank Responsibility in 12 districts of UT of J&K, i.e. Srinagar, Ganderbal, Budgam, Baramulla, Bandipora, Kupwara, Anantnag, Kulgam, Pulwama, Shopian, Poonch and Rajouri. Lead bank responsibility in other 8 districts of the UT, i.e. Jammu, Samba, Kathua, Udhampur, Reasi, Doda, Ramban and Kishtwar is assigned to State Bank of India.

The Annual Credit Plan 2023-24 for UT of J&K, which was launched on 1^st April,2023, envisaged a total credit target of 51,708.81 Crore for 16,51,877 beneficiaries. During FY 2023- 24 banks operating in UT of J&K have disbursed total credit of 66,052.25 Crore in favour of 18,15,203 beneficiaries, registering an achievement of 128% in financial terms and 110% in physical terms. This includes disbursement of 33,750.16 Crore in favour of 10,41,478 beneficiaries against the annual target of 41,261.10 Crore for 13,38,894 beneficiaries under Priority Sector and 32,302.09 Crore in favour of 7,73,725 beneficiaries against the annual target of 10,447.71 Crore for 3,12,983 beneficiaries under Non- Priority Sector thereby registering achievement of 82% and 309% in financial terms respectively.

J&K Bank was assigned annual target of 25,789.45 Crore for 8,26,635 beneficiaries under Priority and Non-Priority Sectors of economy during FY 2023-24 against which 41,452.93 Crore were disbursed in favour of 12,94,848 beneficiaries registering an achievement of 161% in financial terms and 157% in physical terms.

Three meetings of J&K UTLBC including one special meeting chaired by Secretary DFS, MoF, GoI and eight meetings of various Sub-Committees of J&K UTLBC were held during the financial year 2023-24 with special focus on implementation of following schemes/ programmes: Prime Ministers Vishwakarma Scheme for socioeconomic development and betterment of artisans and craftsmen.

SWAMITVA scheme to provide an integrated property validation solution for rural India.

Pledge financing for agriculture commodities through electronic negotiable warehouse receipt (e-NWR) to help farmers to seek loans from banks against their NWR.

Financing of Farmers Producer Organizations (FPO) by banks.

Expanding and deepening of digital payment ecosystem for 100% digital on-boarding of saving bank and business accounts

Lead Bank ensured that District- level and block level meetings, such as DCC/ DLRC/ BLBC, and other related meetings under Lead Bank Scheme are held as per the schedule in all the 20 districts of UT of J&K during the FY 2023-24. The Fora discussed and reviewed wide range of banking sector issues in blocks and districts including preparation of Annual District Credit Plans using bottom up approach and review progress thereof on regular intervals.

Implementation of Financial Inclusion Plans (FIPs): All the phases of Financial Inclusion Plan of GoI/ RBI have been successfully accomplished in Union Territory of J&K. The identified unbanked centers stand covered by providing banking service outlets in the form of Bank Branches/ Banking Correspondents or other modes of coverage except for village Poshiana, District Poonch allocated to one of the Public Sector Banks, which is yet to be covered.

Responsibility of setting up of RSETIs in UT of J&K: In terms of guidelines issued by Ministry of Rural Development, Government of India, setting up the Rural Self Employment Training Institutes (RSETIs) in all the districts of UT of J&K was assigned by J&K UTLBC to two banks, viz. J&K Bank and State Bank of India as per their Lead Bank responsibility. Accordingly, J&K Bank has set up 12 RSETIs in its allocated 12 lead districts (Anantnag, Bandipora, Baramulla, Budgam, Ganderbal, Kulgam, Kupwara, Poonch, Pulwama, Rajouri, Shopian and Srinagar). Performance of RSETIs in conducting training programmes and the number of candidates benefited through credit linkage is being reviewed in Quarterly UTLBC meetings.

Responsibility of setting up of FLCs in UT of J&K: In terms of RBI guidelines for setting up of Financial Literacy Centres (FLCs) in all the districts of UT of Jammu and Kashmir, J&K Bank has made 12 FLCs operational in its 12 allocated lead districts viz. Srinagar, Ganderbal, Budgam, Baramulla, Bandipora, Kupwara, Anantnag, Kulgam, Pulwama, Shopian, Poonch and Rajouri and SBI having made 8 FLCs operational in its 8 allocated lead districts of UT of J&K, viz. Jammu, Samba, Kathua, Udhampur, Reasi, Doda, Ramban, Kishtwar. In addition, PNB, JKGB, EDB and J&K State Cooperative Bank have also established 6, 2, 2 & 1 FLCs respectively, in various districts of UT of J&K, which as on 31.03.2024 takes the total number of FLCs in UT of J&K to 31. The performance of FLCs in conducting the Financial Literacy Camps as per the guidelines from RBI is being reviewed at various forums including quarterly UTLBC meetings.

100% Saturation Drive for KCC Crop

With the launch of Viksit Bharat Sanklap Yatra(VBSY) and Ghar Ghar KCC Abhiyan by Government of India and special focus of Government of Jammu & Kashmir on KCC saturation, the Banks/ FIs in J&K have issued 2,19,893 fresh KCCs during FY 2023-24 involving an amount of 998.92 Crore. This includes 525.20 Crore disbursed in favour of 1,70,407 beneficiaries under KCC Crop and 473.72 Crore to 49,486 beneficiaries under KCC-AH& F.

With the above achievement during FY 2023-24, the total number of active KCCs in J&K has reached to 10,83,775 as on March 31, 2024 with sanctioned credit limit of 9,245.93 Crore.

Performance of Associate /Subsidiary Companies Subsidiary:

As on March 31, 2024, the Bank has one unlisted wholly owned subsidiary namely, JKB Financial Services Limited (JKBFSL) which was incorporated on August 27, 2008. JKB Financial Services Limited was floated with the objective of primarily meeting the para-banking requirements of J&K Bank customers in particular and other customers of the twin UTs of J&K and Ladakh in general. JKBFSL is a member of the National Stock Exchange of India Limited (NSE) & The BSE Limited (BSE). As a leading broking entity in the Union Territories of J&K and Ladakh, JKBFSL provides a wide range of financial services to its clients which include:

Equity Broking Services: JKBFSL provides broking services in equity (cash/delivery, intra-day, futures and option). It plans to include BSE FO (Sensex and Bankex contracts) Commodity Trading and Pro Trading along with debt products to its kitty going forward. As a part of broking services offered by the company, JKBFSL also facilitates opening of DEMAT accounts for its clients.

Margin Trading Facility: JKBFSL is providing margin-trading facility to its clients for leveraging their eligible collaterals by funding their requirements on the cash-delivery segment of equities in NSE. The exposure is provided as per the norms set by SEBI and other regulatory bodies.

Gold ETF: JKBFSL is providing the facility to its customers for buying and selling Gold ETF. This product being an exchange-traded fund can be bought and sold only on stock exchanges, thus saving investors from the trouble of keeping physical gold. The transparency in pricing/purity is another advantage. Exchange Traded Funds are open-ended mutual fund schemes based on the ever-fluctuating cost of gold. Gold ETFs give investors exposure to the gold market, offering an excellent choice of investment for investors with conservative risk profile as gold as an asset is less volatile when compared to equities.

Initial Public Offer: To complement its broking business, JKBFSL also facilitates its client's participation in the IPOs floated by various companies. To provide these services, the company uses the ASBA platform of J&K Bank through offline mode. However, the Company is working on the application that will enable client to apply for IPO through Mobile Application.

Third Party Product Distribution: JKBFSL undertakes distribution of third party products like mutual funds and ETFs according to its client's requirements. The company provides such distribution through online channels as well as through the BSE Star Mutual Fund platform. JKBFSL has recently launched a mobile app called JKB mGrow, which offers better user interface and user experience to customers. The company is concurrently working on integrating the JKB mGrow with the JKB Mpay Delight+ platform, which will make the mutual fund investments more accessible to customers. Through this integration, J&K Bank customers will be able to access the mutual fund distribution services provided by JKBFSL through a single sign-on, all under one roof. The Company is also planning to introduce NSE platform for investing in Mutual Funds.

The total income of the Company surpassed 1500 lakhs mark during the financial year 2023-24 & grew by 45% from 1046.40 Lakhs to 1514.56 Lakhs.

Income from MTF (Margin Trade Funding) is 285.24 Lakh for the financial year 2023-24 as compared to 255.81 Lakh in FY 2022-23 thereby registering a YoY growth of 12%.

Revenue from 3^rd party products has been marked as a growth area for the company. The company has recorded AUM growth of around 137% on YoY basis and accordingly the mutual fund commission grew from 54.00 Lakhs in 2022-23 to 97.72 Lakhs in 2023-24 thereby recorded a YOY growth of 81%.

The income from Equity broking for the financial year 2023-24 is 770.37 Lakhs & recorded a growth of 51%. The overall trading volumes of the company has increased by 52% YOY basis.

The depository income during the financial year 2023-24 recorded growth of 42% and reached to 172.88 Lakhs.

The PAT of the company during the financial year 2023-24 stood at 264.01 Lakhs and thereby recorded a growth of 118% YoY.

The J&K Grameen Bank has come into existence on 30^th June 2009 with the issuance of statutory notification by Department of Financial Services, Ministry of Finance, Government of India with its Head Office at Jammu and has commenced its business with effect from 01.07.2009.

Capital Structure:

In terms of RRBs Act 1976, the authorised capital of Regional Rural Banks was fixed at 5.00 Crore (which stands amended to 2000 Crore in terms of the Regional Rural banks (Amendment) Act, 2015 notified in the Gazette of India on 12-05-2015).

The issued and paid up capital of the J&K Grameen Bank as on 31^st March 2024 is 589.44 Crores being fully subscribed by the Central Government, State/ UT Government and Sponsor Bank in the ratio of 50:15:35 respectively and is tabulated below:

Authorised Capital 2,000 Crores

** During FY 2023-24, Bank has received an additional capital support of 204.48 Crores from its promoters till March 31, 2024, thereby augmenting the CRAR to 11.21%.

Tier II Perpetual Bonds:

Out of total cost outlay of 23.34 Crores for implementation of 100% CBS by JKGB, 50% i.e. 11.67 crore has been shared by J&K Bank (Sponsor Bank). Date of issue: 04-12-2014

Area of Operation:

The area of operation of the J&K Grameen Bank comprises of 13 districts of the UT of J&K and UT of Ladakh viz. Baramulla, Bandipora, Kupwara, Ganderbal, Srinagar Jammu, Kathua, Rajouri, Poonch, Samba, Kishtwar, Leh and Kargil.

Total Business:

The total business of the bank as on 31^st March 2024 stood at 9364.33 Crores against 8513.30 Crores as on 31^st March 2023, thereby registering a growth of 9.99% during the financial year 2023-24.

Deposits:

The deposits of the bank have increased from 5268.76 Crores to 5710.15 Crores during the financial year 2023-24, thereby registering a growth rate of 8.38%.

Advances:

The gross advances of the bank as on 31^st March 2024 stood at 3654.18 Crores as against 3244.54 Crores as on the corresponding date of the previous year recording a growth of 12.63%.

CD Ratio:

The C.D. Ratio of the bank has increased from 61.58% as on 31^st March 2023 to 63.99% as on 31^st March, 2024.

Priority Sector Advances:

The Priority Sector Advances outstanding as on 31^st March 2024 stood at 2845.64 Crores against 2595.45 Crores outstanding as on 31^st March 2023, registering a growth of 9.64% on YoY basis. JKGB has priority sector advances to total advances outstanding percentage at 77.87% as on 31^st March, 2024 which is well above the prescribed target of 75% to RRBs.

NPA Management:

Gross NPAs of the bank as on 31^st March, 2024 stood at 148.70 Crores (4.07%) against 147.51 Crores (4.55%) as on 31^st March, 2023. Accordingly Net NPAs as on 31^st March, 2024 stood at 45.45 Crores (1.28%) against 55.89 Crores (1.77%) as on 31^st March, 2023.

Business per Employee:

The business per employee as on 31^st March 2024 stood at 7.64 Crores against 7.33 Crores as on corresponding date of the previous year.

Business per Branch:

The business per branch as on 31^st March 2024 stood as 43.35 Crores against 39.60 Crores as on corresponding date of the previous year.

Profitability:

The Bank has earned a net profit of 3.76 Crores as on 31^st March, 2024 as against a net loss of 51.63 Crores as on 31^st March, 2023.

During the FY 2023-24, we have been successful in strengthening the bond of trust with all our stakeholders by leveraging all the means and channels available for uninterrupted communication throughout the financial year. The Bank's products, services and facilities were successfully advertised and publicized through a series of mass-media campaigns across the operational geographies of the Bank. Also, the advertising campaigns initiated by the Bank to increase its overall business, while meeting the set targets, were duly publicized with proper follow-up communications. Also, the functioning and accomplishments of the Bank were effectively communicated to relevant target audiences including major stake-holders, customers, shareowners, other stakeholders and general public through customized and efficiently packaged messages/hand-outs using mass media within J&K and Ladakh, besides rest of the country to earn high credibility and enhance our brand image.

Leveraging the power of internet in reaching out to a wider audience, we successfully increased our presence in the social-media universe further by strengthening and streamlining our online presence through highly popular mediums of social connectivity tools especially Facebook, Twitter, Instagram, YouTube and LinkedIn.

Brand perception forms the fulcrum of any communication plan, which is devised to complement the Bank's business strategy. Therefore, in line with the Bank's vision to scale up its business and expand presence in rest of the country while deepening its foot-prints in Jammu & Kashmir and Ladakh (JKL), we aligned the Brand Building campaigns accordingly to better leverage Bank's success in financial and institutional terms. With an established identity and image in the JKL market, our focus remained to enhance Bank's position and boost its brand appeal in aesthetically vibrant terms to complement its financial standing. While as in rest of the country, we successfully increased our brand exposure activities during the FY 2023-24 both on and off-line thereby enhancing Bank's brand awareness, deepening its brand perception and increasing its brand value.

During the FY 2023-24, the Bank undertook various promotional activities to position its brand further favorably among the people, complementing ever-strengthening significance of our institution on financial landscape of JKL and beyond. While Brand J&K Bank continues to hold the sway among the people, Bank has ensured to put an effective and efficient communication strategy in place to reinforce the brand recall.

During the FY, the Bank successfully ran a 360 degree brand-deepening campaign - ‘Meri Kahani Meri Zubani" – wherein customer testimonials from J&K and Ladakh highlighting the inclusive and effective financial role that the Bank continues to play across the socio-economic landscape of its core geography to empower individuals and groups thereby providing a solid base to the economy that is at the cusp of a great transformation.

Also, after a slump of three years, tourism has witnessed record high numbers in calendar year 2023 with a huge rush of tourists visiting J&K and Ladakh by road as well as air route. Therefore, we have also increased our brand presence at all three airports in UT's of J&K and Ladakh besides placing our advertisements prominently across J&K on customised road barricades at Srinagar and Jammu cities, tourist places, pilgrim destinations like Katra and few places enroute Shri Amarnath Ji Shrine.

While the thrust for using digital channels to communicate to the people has been mandated in the face of ever changing technological landscape with Bank enhancing its digital footprints by leveraging its presence on social media platforms, it has increased usage of traditional advertisement genres like outdoor advertising (OOH) through hoardings to garner better mileage in terms of brand visibility and reach. A well-drilled brand visibility enhancing activity was carried out by displaying Bank's products and schemes at ATMs/CRMs & Branches while making sure Glow Signboards-an important tool of brand identity-are properly maintained. Hoardings were placed in twin cities of Jammu and Srinagar, national highways and other key locations across all major towns and areas of JKL and rest of the country.

Moreover, people-centric and environment-friendly initiatives commenced under CSR during FY2023-24 were properly highlighted to earn public goodwill, strengthen the trust and bond between Bank and its stakeholders, and create a continuity in the positive perception about the Bank.

While doing all this, the key components of brand identity like logo, its colours, font, and other aspects were properly utilized and placed to deepen the brand perception and loyalty among the stakeholders.

J&K Bank's illustrious history of more than eight decades is decorated with awards and accolades. Over the years, the Bank has collected numerous honours in various categories. During the FY 2023-24, the Bank outshone its competitors to grab the headlines in following categories.

Honoured with Best MSME Bank Award along with Second Best Award for Promoting Government Schemes at MSME Banking Excellence Awards (2023).

Awarded with Development Leadership Award 2023 at 14^th Agriculture Leadership Conclave 2023.

Prestigious ‘Times Now India's Impactful CEO - 2023' Award bestowed upon MD & CEO Baldev Prakash.

First Scheduled Commercial Bank (SCB) in the country to have been awarded Payment Card Industry Data Security Standard (PCIDSS) Version 4 Certification for both Issuance and Acquiring Business.

Best Performance Award in CASA - India (1^st Runner up in Small Bank Category) at ICC Emerging Asia Banking Conclave & Awards 2022

Gold Award at Infosys Finacle Innovation Awards – 2023 under the category of Process innovation.

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 environment. This represents the core principle and forms the basis of the Bank's CSR policy.

The Bank, guided by the founding principles of its CSR policy, takes and encourages initiatives aimed at improving the lives and living conditions of the vulnerable sections of the society besides lending support to the society's endeavours aimed at making the world a better place to live in.

In line with the same, the Bank continued its ‘social investment' by undertaking projects of varied nature to alleviate the hardships of different sections of the society and address issues of environmental sustainability. In turn, the Bank reaped benefits in the form of increased emotional equity, brand-connect and goodwill.

During the financial year FY2023-24, the Bank continued to intervene and enhance value creation in the society through CSR activities in consonance with its mission of ‘Serving to Empower'. While CSR initiatives undertaken during FY2023-24 have, directly or indirectly, benefitted hundreds of thousands of people across UTs of J&K and Ladakh, some eco-centric activities have contributed towards reducing carbon footprint and encouraging green energy solutions. The statutory disclosures with respect to the CSRESG Committee of the Board, including a report on the CSR, forms part of this report at Annexure 1. The key areas of intervention and the activities undertaken under CSR by the Bank during the FY2023-24 are detailed in Corporate Functions Report.

The Bank has established a tradition of exemplary practices in corporate governance. It encompasses not only regulatory and legal requirements, but also several voluntary practices, aimed at high level business ethics, effective supervision and enhancement of stakeholder volume. Several matters have been voluntarily included in the statement on corporate governance annexed to this report, besides certificate from the Secretarial Auditors regarding compliance of conditions of Corporate Governance as stipulated by the SEBI (Listing Obligations & Disclosure Requirement) Regulations, 2015.

The Management Discussion and Analysis Report for the year under report is presented in a separate section forming part of this report.

The Bank has a Whistle Blower mechanism in place which enhances transparency in the organization by encouraging the employees/ directors/ other specified stakeholders to report any wrongdoing, which comes to their knowledge in the day-to-day performance of their duties or interaction with other fellow-colleagues/ Bank staff without fear of retaliation, victimization and unfair-treatment. The Bank has formulated the "Whistle Blower Policy" to guarantee them protection from any adverse departmental proceedings. The Policy is compliant to regulatory requirements under Section 177 (9) of the Companies Act 2013, and SEBI Listing Regulations. The policy document is available on the Bank's official website under link: https://www.jkbank.com/investor/stockExchangeIntimation/ corporateGovernancepolicies.php

Further, the mechanism adopted by the Bank encourages the Whistle Blower to report genuine concerns or grievances and also provides for direct access to Chairman of the Audit Committee of the Board, in exceptional cases.

The grievance under Whistle Blower mechanism can be lodged on the Bank's official website under link: https://www.jkbank.com/others/common/wbGrievences.php

It is hereby affirmed that the Bank has not denied any of its personnel access to the Chairman of the Audit Committee of the Board and that the policy contains adequate provisions for protecting whistle blowers from unfair termination and other unfair prejudicial employment practices.

In the FY 2023-24, six (06) complaints received under Whistle Blower Mechanism were placed before the Audit Committee of Board.

The Bank in line with the RBI prescribed framework, has devised a Policy Document on the "Protected Disclosure Scheme." The complaints under the Scheme cover the areas such as corruption, misuse of office, criminal offences, suspected/ actual fraud, failure to comply with existing rules and regulations such as Reserve Bank of India Act, 1934, Banking Regulation Act 1949, etc. and acts resulting in financial loss/ operational risk, loss of reputation, etc. detrimental to depositors' interest/ public interest. Reserve Bank of India (RBI) will be the Nodal Agency to receive complaints under the Scheme.

The complaint under the scheme should be sent in a closed/ secured envelope addressed to The Chief General Manager, Reserve Bank of India, Department of Banking Supervision, Fraud Monitoring Cell, Third Floor, World Trade Centre, Centre 1, Cuffe Parade, Mumbai 400005. The envelope should be superscripted "Complaint under Protected Disclosures Scheme for Banks". Complaints can also be made to RBI through e-mail: dbspd@rbi.org.in by giving full details as specified above.

The policy document is available on the intranet page of the Bank as well as on the Bank's official website under link: https://www.jkbank.com/pdfs/policy/latest/Policy_ protected.pdf

It is hereby affirmed that no unfair treatment will be meted out to a Complainant by virtue of his/her having reported a Disclosure under this Policy. The Bank, as a policy, condemns any kind of discrimination, harassment, victimization or any other unfair employment practice being adopted against Complainant(s). Complete protection will, therefore, be given to Complainant(s) against any unfair practice like retaliation, threat or intimidation of termination/suspension of service, disciplinary action, transfer, demotion, refusal of promotion, including any direct or indirect use of authority to obstruct the Complainant's right to continue to perform his/ her duties/functions including making further Disclosure under the policy. In FY 2023-24, the Bank has not received any complaint under the "Protected Disclosure Scheme".

A well-defined and comprehensive risk management framework of our Bank is based on a clear understanding of different risks, accepting various risks, disciplined risk assessment, measurement & continuous monitoring. The Bank has put in place a Risk Management and Risk Appetite Framework (RAF) that articulates the risk appetite and drills down the same into a limit framework for various risk categories. Risk appetite defines the levels and types of risk that are acceptable, within risk capacity, in order to achieve strategic objectives and business plans. The risk appetite framework, which is approved by the Board, bolsters effective risk management by promoting sound risk-taking through a structured approach, within agreed boundaries. The key components of the Bank's Risk Management architecture rely on the risk governance structure, comprehensive processes and internal control mechanism based on approved policies and guidelines.

The Bank's risk management processes are guided by way of policies adopted appropriately for various risk categories, independent risk oversight and periodic monitoring by Board of Directors, Committee of the Board of Directors (Integrated Risk Management Committee of Board) and Senior Management Committees – Credit Risk Management Committee, Market Risk Management Committee, Operational Risk Management Committee and Asset Liability Committee (ALCO). The policies approved from time to time by Board of Directors, Committee of Board (IRMC) form the basis for governing framework for each type of risk. The Board sets the overall risk appetite and philosophy for the Bank and has an oversight of all the risks assumed by the Bank. The Bank's Risk Management framework focuses on the management of key areas of Risk such as Credit, Market, Operational Risk, Liquidity Risk and Pillar II risks; quantification of these risks, wherever possible.

The risk management function in the Bank strives to proactively anticipate vulnerabilities in the business operations through quantitative or qualitative examination of the embedded risks for effective and continuous monitoring and control. An independent risk management function ensures that risk is managed through a risk management architecture as well as through policies and processes approved by the Board of Directors. The risk management policies and procedures established are updated on continuous basis in compliance to RBI guidelines and benchmarked to the best practices. The Board of Directors with its Committee-Integrated Risk Management Committee (IRMC) reviews risk management policies of the Bank pertaining to credit, market, liquidity, operational & Pillar II risks that includes strategic risk and reputational risk, Internal Capital Adequacy Assessment Process (ICAAP) and stress testing.

The Senior Management Committees - Credit Risk Management Committee (CRMC), Operational Risk Management Committee (ORMC) and Market Risk Management Committee (MRMC) for credit risk, operational risk and market risk operate within the broad risk management framework of the Bank to assess and minimize these risks. Bank has an independent Risk Management Vertical headed by the Chief Risk Officer, who reports to IRMC of Board and monitors the development and implementation of methodologies for risk identification, assessment, measurement, monitoring and mitigation for all risks. Information security and business continuity plan also forms part of risk management function in the Bank. Treasury activities are separately monitored by mid office which reports to Risk Management Vertical. The Bank has Stress Testing Policy to measure impact of adverse stress scenarios on the adequacy of capital. The stress scenarios are idiosyncratic, generic and a combination of both.

In terms of Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, top 1000 Listed Entities based on their market capitalization as on 31^st March every year are required to submit their Business Responsibility and Sustainability Report (BRSR) on the environmental, social and governance disclosures as a part of the Annual Report. The Bank's BRSR describing the initiatives taken by the Bank from an environmental, Social and governance perspective is enclosed as Annexure- 6.

The Bank does not engage in any form of child labour / forced labour / involuntary labour and does not adopt any discriminatory employment practices. The Bank has a Policy against sexual harassment and a Committee "Internal Complaints Committee for Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace" has been constituted for dealing with complaints of harassment or discrimination. The said policy is in line with relevant Act passed by the Parliament in 2013. The Bank, through the policy ensures that all such complaints are resolved within defined timelines. During the year, two complaints were lodged before the Internal Complaints Committee duly constituted under the Sexual Harassment of Women at Work Place (Prevention and Redressal) Act, 2013 and the rules made thereunder. Accordingly, due inquiry proceedings were conducted in the cases, as stipulated in the Act and adequate opportunity was provided to both complainants and respondents to present/ defend their case. Both the complaints were disposed of within the requisite time frame of 90 days.

During the year 2024, there were no occurrences of employee accidental death at the workplace.

Pursuant to section 186(11) of the Companies Act, 2013 loans made, guarantees given or securities provided or acquisition of shares by a Banking company in the ordinary course of its business are exempted from disclosure in the Annual Report.

Considering the nature of the Industry in which the Bank operates, transactions with related parties of the Bank are in the ordinary course of business and are also at arm's length basis. There was no materially significant related party transaction entered by the Bank with Promoters, Directors, Key Managerial Personnel or other persons which may have a potential conflict with the interests of the Bank. The policy on Related Party Transactions and dealing with related parties as approved by the Audit Committee and the Board of Directors is uploaded on the website of the Bank and the link for the same is below: https://www.jkbank.com/investor/stockExchangeIntimation/ corporateGovernancepolicies.php

Statement of related party transactions under sub section (1) of Section 188 of the Companies Act, 2013 is attached herewith as Annexure 5.

The Bank as on 31^st March, 2024 has cases under the IBC resolution, the details whereof along with existing status is tabulated as under: (Amt. in Crs)

The Bank during the financial year 2023-24 has detected/ reported 35 cases of frauds to the Reserve Bank of India involving an amount of 241.35 Crores.

Out of the above 35 frauds, 03 frauds (involving three accounts) which were declared as fraud in FY 2019-20 & FY 2020-21 involving an amount of 19598.00 lacs were deactivated in FY 2023-24 after directions from Reserve Bank of India which were in accordance to the Hon'ble Supreme judgment dated March 27, 2023, in Civil Appeal No. 7300 of 2022 (State Bank of India & Ors. vs. Rajesh Agarwal & Ors.) & other connected matters along with judgement of Delhi High Court dated May 12, 2023. Pursuant to the communication of RBI, the Bank following principles of natural justice, particularly the rule of audi alteram partem, issued Show- Cause notices to the borrowers' and after re-examining their replies in light of the already conducted internal investigation and Forensic Audit Reports the accounts were re-classified as fraud in FY 2023-24.

Also in FY 2023-24 fraud amount was revised in two fraud cases pertaining to FY 2016-17 & FY 2020-21 by an amount of 22.40 Lacs and 19.14 Lacs. The fraud amount in these cases was thus respectively revised to 60.04 lacs and 64.79 after fresh claims were received and settled by the Bank.

During the year under review, one fraud was reported by the statutory auditors under Section 143 (12) of the Companies Act, 2013 to the Ministry of Corporate Affairs, Govt. of India.

Pursuant to Section 129 of the Companies Act, 2013, the Bank has prepared Consolidated Financial Statements of the Bank, its Subsidiary (JKB Financial Services Ltd.) and also its Associate (J&K Grameen Bank) which shall be laid before shareholders at the 86^th Annual General Meeting of the Bank along with Bank's Financial Statements under sub-section (2) of Section 129 i.e. Standalone Financial Statements of the Bank. Further, pursuant to the provisions of Accounting Standard (AS) 21 - Consolidated Financial Statements notified under Section 133 of the Companies Act 2013, read with Rule 7 of the Companies (Accounts) Rules 2014 issued by the Ministry of Corporate Affairs, the Consolidated Financial Statements of the Bank along with its Subsidiary/ Associate for the year ended March 31, 2023 form part of this Annual Report. The statement in form AOC-1 pursuant to first proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules 2014 is annexed as Annexure-4.

The Statutory Central and Branch auditors of the Bank are appointed by the Comptroller & Auditor General of India (C&AG) pursuant to Section 139 (5) of the Companies Act, 2013. The Bank had three (3) Statutory Central Auditors appointed by the C&AG of India for the year under report as given below: 1. M/s Gupta Gupta & Associates LLP, Chartered Accountants 2. M/s JCR & Co LLP, Chartered Accountants 3. M/s Lunawat & Co, Chartered Accountants

For the FY 2023-24, there are no qualifications, reservation or adverse remarks made by the Statutory Central Auditors in the audit report.

The details of total fees (excluding taxes), for all services, paid by the Bank on a consolidated basis to the Statutory Central Auditors are tabulated below:

As on date of this report, the Bank has not received the comments under Section 143 (6) of the Companies Act, 2013 from the Comptroller and Auditor General of India on the accounts of the Bank for the year ended 31^st March 2024 and the same alongwith Banks reply to the comments shall be read out at the 86^th Annual General Meeting.

Pursuant to Section 204 of the Companies Act 2013, your Bank has appointed CS Ghulam Jeelani Reshi, Proprietor of M/s Reshi & Associates, Company Secretaries as its Secretarial Auditor to conduct the Secretarial Audit of the Bank for the FY2023-24. The Bank provided all assistance and facilities to the Secretarial Auditor for conducting the audit. The report of Secretarial Auditor for the FY 2023-24 is annexed to this report as Annexure 3.

The Bank is in compliance with all applicable Secretarial Standards as notified from time to time.

During the year under review, there has been no change in the nature of business of the Bank.

There are no material changes and commitments, affecting the financial position of the Bank which has occurred between the end of the financial year of the Bank i.e. March 31, 2024 and the date of the Directors' Report i.e. July 19, 2024.

The Credit Rating and change/revision in the Credit Ratings for various debt instruments issued by the Bank from time to time are provided in the Corporate Governance Report forming part of the Annual Report.

The statement containing particulars of employees as required under Section 197(12) of the Companies Act, 2013 read with Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given in "Annexure 2" forming part of this report.

1. The disclosures to be made under sub- section (3) (m) of Section 134 of the Companies Act, 2013 read with rule (8) (3) of the Companies (Accounts) Rules, 2014 by your Bank are explained as under:

(i) The steps taken or impact on conservation of energy.

The Bank is committed to achieving a low carbon footprint through various energy conservation initiatives. These include:

Data Center Optimization: The Bank's Data Center is located in a highly energy-efficient facility in Noida. This facility adheres to ITIL-based service delivery frameworks and meets internationally recognized standards like ISO 9001 and ISO 20000, ensuring efficient and secure operations while contributing to energy conservation.

Award Winning Disaster Recovery Center: The Bank's Disaster Recovery Center is housed in Asia's largest rated 4 Hyper-scale Datacenter. This facility, aligned with TIA-942 standards, is USGBC LEED Platinum Certified and has won the Golden Peacock Eco-Innovation Award, emphasizing its strong focus on environmental sustainability.

e-Office & Online Account Opening & Loan Journeys: Our Bank's "Online Account & Loan Journeys" initiative, along with the e-Office solution, exemplifies our commitment to environmental sustainability by reducing paper consumption, minimizing printer use, and conserving energy. These digital transitions enhance operational efficiency and significantly lower our carbon footprint, aligning with our broader ESG goals and contributing to a sustainable future.

Digital Signage Screens: The Bank has increased the use of Digital Signage Screens as an energy-efficient alternative to traditional paper notices. These screens use low-power LED displays, reducing the energy consumption associated with printing and distributing paper notices.

Energy-Efficient Hardware: The Bank uses Energy Star compliant computing and communication hardware across all offices and banking outlets, significantly reducing power consumption.

(ii) Steps Taken to Utilize Alternate Sources of Energy Though the Bank operates in a non-energy-intensive environment, it prioritizes the procurement and use of energy-efficient hardware and equipment. Additionally, CFL lamps are being replaced with LED lamps/ fixtures to further reduce energy consumption.

(iii) Capital Investment in Energy Conservation Equipment The Bank is dedicated to implementing energy conservation measures, investing in cloud computing, compute on demand, energy-efficient equipment such as virtual servers, thin clients, multi-purpose printers, kiosks, and scanners. These technologies help minimize energy consumption and promote sustainability across the Bank's operations.

At J&K Bank, our unwavering commitment to enhancing and simplifying the banking experience for our customers is at the forefront of our strategic initiatives. We are embracing innovative technologies to ensure our services are on par with the best in the industry. Our Bank leverages advanced technological solutions to offer unparalleled value to our customers, whether through seamless digital banking platforms or robust mobile banking application. Throughout the year, the Bank has implemented number of initiatives leveraging the power of technology to enhance the overall banking experience for its customers.

The Bank has successfully upgraded its Mobile Banking Application and rolled out its flagship upgrade as "mPay Delight+". This upgrade has introduced concept of "Bank-in-a-Pocket" experience by making banking facilities available on the fingertips of our customers. The new application has undergone complete redesigning of UI/UX and introduced all new features like UPI-Scan & Pay, Online Deposit Accounts, Full Fledged Debit Card & Credit Card Management, Scheduled Transactions, Instant Loans, real-time email Update, Full Statement Delivery over email, Bill Payments, mPay Lite and much more.

The upgrade has been built on top of a resilient architecture which ensures that the application is able to handle ever-growing transaction volume. The application is available over Playstore & AppStore and has registered over a 1.5 Million installations and has already recorded a One Thousand crore daily transaction amount mark. The application features are being incrementally added through version upgrades and many more exciting features like Launch of Corporate Mobile Banking have been planned for rollout in coming quarters. The Bank has transitioned its UPI & IMPS platform from an on-premises setup to a cloud-hosted model. This move ensures auto scalability to handle unpredictable transaction volumes, essential for the growing UPI ecosystem.

To move closer to door step banking, an all-new state of art solution for Financial Inclusion was launched, designed to support transactional growth for the next five years. This platform extends beyond regulatory compliance, aiding in business mobilization, asset quality management, and customer relationship management through Business Correspondents (BC). It also includes a mobile applications for Business Correspondents (BCs) to facilitate doorstep banking.

To boost digital payments, the Bank also introduced its flagship product for UPI QR-SoundBox. This portable speaker, equipped with a 4G SIM slot for connectivity, provides audio alerts for every payment, allowing merchants to manage transactions without checking SMS notifications. Additionally, as part of our digital transformation, the Bank now offers an online account opening facility with Video KYC. This service, initially available for General and Student Saving Accounts, allows customers to open accounts anytime, enhancing convenience and accessibility. The facility is gradually being released for other business account variants shortly.

Further to support the goals for conservation of energy and introduce operational efficiency, a modernized e-Office application suite has been implemented Bank-wide, automating file and correspondence management from creation to archival. A complementary mobile app for authorizers and approvers facilitates decision-making on the go, providing a user-friendly interface to manage and approve documents efficiently.

The Foreign Exchange earned in terms of actual inflows during the year and the Foreign Exchange outgo during the year in terms of actual outflow:

During the Year ended 31.03.2024, the Bank earned 473.09 lakhs and spent 163.86 lakhs in foreign currency. This does not include foreign currency cash flow in derivatives and foreign currency exchange transactions.

2. No significant and material orders were passed by the regulators or courts or tribunals impacting the going concern status of the Bank's operations in future.

3. No Stock options were issued to the Directors of your Bank

In accordance with the provisions of Companies Act, 2013, the Annual Return of the Bank for the financial year 2023-24 in the prescribed Form MGT-7 will be available on the website of the Bank at: https://www.jkbank.com/investor/financials/ annualReturns.php.

Pursuant to Section 134 (3) (c) of the Companies Act, 2013, the Board of Directors hereby state that:

(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(b) the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit and loss of the Bank for that period;

(c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities;

(d) the directors had prepared the annual accounts on a going concern basis; and

(e) the directors, had laid down internal financial controls to be followed by the Bank and that such internal financial controls are adequate and were operating effectively.

(f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

The Bank has adequate internal controls and processes in place with respect to its financial statements which provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with Generally Accepted Accounting Principles. These controls and processes are driven through various policies, procedures and certifications. The control 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 statements. The processes and controls are reviewed periodically.

The cost records as specified by the Central Government under section 148(1) of the Companies Act, 2013 are not required to be maintained by the Bank.

Certificate issued by Managing Director & CEO and Chief financial officer of the Bank, for the financial year under review, was placed before the Board of Directors in their meeting held on May 04, 2024 in terms of the Regulation 17(8) of the Listing Regulations.

Based on the condition mentioned in RBI circular, 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.

The Directors thank the valued customers, shareholders, well-wishers and correspondents of the bank in India and abroad for their goodwill, patronage and support. The Directors acknowledge with gratitude the valuable and timely advice, guidance and support received from Government of India, Government of Jammu & Kashmir, Reserve Bank of India, Securities and Exchange Board of India (SEBI), Insurance Regulatory Developmental Authority (IRDA), NABARD, SIDBI, IBA, FIMMDA, FEDAI, Stock Exchanges, Ministry of Corporate Affairs, Registrar of Companies, Comptroller & Auditor General of India, Financial Institutions and the Central Statutory Auditors of the bank in the functioning of the bank.

The Directors place on record their deep appreciation of the valuable contribution of the members of the staff at all levels for the progress of the bank during the year and look forward to their continued cooperation in realization of the corporate goals in the years ahead.