J & K Bank

Jammu and Kashmir Bank Ltd Management Discussions

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₹98.63

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Oct 14, 2024|03:32:12 PM

Jammu and Kashmir Bank Ltd Share Price Management Discussions

GLOBAL ECONOMIC OUTLOOK:

The global economy remains remarkably resilient, with growth holding steady as inflation returns to target. The journey has been eventful, starting with supply-chain disruptions in the aftermath of the pandemic, a Russian-initiated war on Ukraine that triggered a global energy and food crisis, and a considerable surge in inflation, followed by a globally synchronized monetary policy tightening. As global inflation descended from its mid-2022 peak, economic activity grew steadily, defying warnings of stagflation and global recession. Growth in employment and incomes held steady, reflecting supportive demand developments, including greater-than-expected government spending and household consumption and a supply-side expansion amid, notably, an unanticipated boost to labour force participation.

As per IMF report on Global Economic Outlook, global growth for 2024 and 2025 will hold steady around 3.2 percent with global headline inflation expected to fall from an annual average of 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025, with advanced economies returning to their inflation targets sooner than emerging market and developing economies. The latest forecast for global growth five years from now at 3.1 percent, is at its lowest in decades

Risks to the global outlook are now broadly balanced. On the downside, new price spikes stemming from geopolitical tensions, including those from the war in Ukraine and the conflict in Gaza and Israel, could, along with persistent core inflation where labour markets are still tight, raise interest rate expectations and reduce asset prices. A divergence in disinflation speeds among major economies could also cause currency movements that put financial sectors under pressure. In China, without a comprehensive response to the troubled property sector, growth could falter, hurting trading partners. Geoeconomic fragmentation could intensify, with higher barriers to the flow of goods, capital, and people implying a supply-side slowdown. On the upside, looser fiscal policy than necessary and assumed in projections could raise economic activity in the short term, although risking more costly policy adjustment later on. Inflation could fall faster than expected amid further gains in labour force participation, allowing central banks to bring easing plans forward. Artificial intelligence and stronger structural reforms than anticipated could spur productivity.

As the global economy approaches a soft landing, the near-term priority for central banks is to ensure that inflation touches down smoothly, by neither easing policies prematurely nor delaying too long and causing target undershoots. At the same time, as central banks take a less restrictive stance, a renewed focus on implementing medium-term fiscal consolidation to rebuild room for budgetary maneuver and priority investments, and to ensure debt sustainability, is in order. Intensifying supply-enhancing reforms would facilitate inflation and debt reduction, allow economies to increase growth toward the higher prepandemic era average, and accelerate convergence toward higher income levels. Multilateral cooperation is needed to limit the costs and risks of geoeconomic fragmentation and climate change, speed the transition to green energy, and facilitate debt restructuring.

Domestic Economic Outlook:

While the global economy is going through extreme headwinds, exposing tremendous volatility in demand; economic slowdown; disruption in the supply chain; sharp . rise in energy and other commodity prices; rising inflation, and interest rate hikes. In such an environment, the Indian - economy remains relatively better placed than other emerging markets and global economies but is not entirely insulated from the impact of the global crisis. As per the data released by National Statistical Office (NSO) of Ministry of Statistics and Programme Implementation (MOSPI), Indias GDP growth during FY2023-24 is estimated at 8.2% surpassing all projections. This reaffirms Indias position as the fastest-growing major economy globally. The Indian economy and the domestic financial system remain resilient, supported by strong macroeconomic fundamentals, healthy balance sheets of financial institutions, moderating inflation, improving external sector position and continuing fiscal consolidation. The last decade witnessed a steady growth in the Indian economy, attributed to increased public sector investment, a robust financial sector, and strong non-food credit expansion. The domestic economy is experiencing strong momentum. The credit dispensation by Indian Banks is expected to witness double digit growth during FY25 as forecasted by Rating agency ICRA & S&P Global.

The Reserve Bank of India, in its June Monetary Policy Committee (MPC) meeting has projected the real GDP growth for 2024-25 at 7.2 per cent. IMF in its World Economic Outlook update has increased Indias growth forecast for the fiscal year 2024-25 by 20 basis points (bps) to 7 per cent, attributed to improved private consumption, particularly in rural areas. Both World Bank & the United Nations have projected Indian economy to grow at 6.6 per cent in FY2024- 25. Moodys in its Global Macroeconomic Outlook for 2024 has said that the Indian economy is likely to remain the fastest growing among G-20 economies on account of its robust economic performance in 2023 and diminishing global economic challenge. By all estimates, Indias growth is expected to remain strong, supported by macroeconomic and financial stability.

The U.N. World Economic Situation and Prospects (WESP) 2024 report has said that consumer price inflation in India is projected to decelerate from 5.6% in 2023 to 4.5% in 2024, staying within the central banks two to six per cent medium-term target range. However as per Deloittes Indian Economic Outlook report 2024, consumer spending in India has been low after the pandemic, and the rebound has been inconsistent as well. One of the biggest reasons has been the prolonged impact of the pandemic across consumer segments, exacerbated by subsequent global uncertainties. According to a survey by the Reserve Bank of India, consumer confidence has barely reached pre-pandemic levels, and the improvement over the past few months has been gradual, despite a strong pickup in economic activity.

The growth prospects of the Indian economy in 2024-25 look bright. In India, labour market indicators have also improved amid robust growth and higher labour force participation. Indias government remains committed to gradually reduce the fiscal deficit, while seeking to increase capital investment. Manufacturing is expected to maintain its momentum on the back of sustained profitability. Services activity is likely to grow above the pre-pandemic trend. Private consumption should gain steam with further pick-up in rural activity and steady urban demand. A rise in discretionary spending expected by urban households, as per the Reserve Banks consumer survey, and improving income levels augur well for the strengthening of private consumption. The prospects of fixed investment remain bright with business optimism, healthy corporate and bank balance sheets, robust government capital expenditure and signs of upturn in the private capex cycle.

J&K Economy

Jammu & Kashmir has always been projected as an economy with immense potential across various sectors. Its economy is primarily services-based and agriculture-oriented. Various efforts in the last few years to tap the economic potential are proving a shot in the arm of economic development of the region. At current prices, the GSDP of J&K has been estimated at Rs. 2.31 trillion (US$ 27.95 billion) in 2023-24. The UTs GSDP increased at a CAGR of 8.84% between 2018-19 and 2023-24. The GSDP of UT is expected to double by the year 2027-28 with special emphasis on Agriculture, Horticulture, Tourism, Industries and Service Sector

Five major sectors are contributing to the regions economy, which include agriculture and horticulture, tourism, handicrafts, industries and government jobs. The economy of the UT of J&K is predominately agriculture dependent and nearly 70% of population is directly or indirectly engaged in agricultural and allied occupations which is based on Small Land Holdings. The second sector is tourism, which varies but on average employs about a million people. The third is handicrafts, or the artisanal sector, which employs around 1 million people. The handicraft sector plays an important role in the states economic structure, and its high-quality craftsmanship, appealing designs, and functional utility have earned it international fame. Fourth is the industry sector, which is in its early stages of development. About 5 lakh people are employed by the government.

Overall, agriculture & horticulture in the primary sector, manufacturing & construction in the secondary sector and public administration in the tertiary sector are the largest contributors towards the Gross State Domestic Product (GSDP).

Jammu and Kashmirs economy is predominantly dependent on agriculture and allied activities. Horticulture plays a vital role in the economic development of the J&K. This sector is one of the major source of income in the UTs economy. The region of Kashmir is known for its horticulture industry. Horticultural produce from J&K includes apples, apricots, cherries, pears, plums, almonds and walnuts.

Remarkably, the tourism sector has also been playing a significant role in the regions economy as it makes an enormous contribution to the regions local economies through job creation and sustainable development. It is the largest service industry in the UT and is significantly contributing to the GSDP. It earns foreign exchange, provides widespread employment, and yields tax revenue. The governments ambitious vision of positioning Kashmir as a global tourism hotspot gained significant traction in 2023, with the valley playing host to prestigious international events, including the G20 Tourism Working Group meeting and the Miss Universe press conference. More recently, an inaugural Formula-4 (F4) car racing event took place in Srinagar. Here it is worth mentioning that pilgrimage tourism provides an extra boost to the regions economy.

Meanwhile some of the major initiatives taken by the Government to give boost to the economy of Jammu & Kashmir are as under;

Jammu and Kashmir has achieved 100% saturation in schemes like Saubhagya, Ujjwala, Ujala, Old Age/ Widow and Disability Pension Scheme, SC/ST/ Minority, Pre-Matric and Post-Matric Scholarship Schemes, Poshan Tracker, Poshan Vatikas, Prime Ministers Matru Vandana Yojana, Kisan Credit Card Scheme, Swachh Bharat Mission, Drinking Water, Play field & Youth Clubs, PM Kisan Samman Nidhi, Soil Health Card and Public Distribution System. Besides, under JJM, 99.94% population has been provided with piped water and 57.84% individual households have tap connections. Under LPG-DBT (PAHAL) 31.77 lakh beneficiaries have been covered. Milk production has reached highest ever 2594 Thousand Metric Tons.

Road infrastructure by way of construction of mega highways and tunnel projects is in progress. A number of highway projects are presently under execution which upon completion are expected to bring much respite for the people of Jammu & Kashmir.

The work on 6.5 Km Z-Morh Tunnel on Srinagar- Sonamarg Road is going on at the brisk pace and will be completed during the current financial year at a cost of Rs. 2,378 crore, which will provide an opportunity for tourists to visit the beautiful place of Sonamarg in winter as well.

The construction of 135 Km stretch of six-lane Delhi-Amritsar Katra Expressway falling in Jammu & Kashmir has commenced. This will reduce the travel time to Shri Mata Vaishno Devi Shrine to 6 hours only.

Kashmir is likely to be connected to rest of the country through rail network by July 2024.

The Jammu and Kashmir Holistic Agriculture Development Plan rolled out. Under this plan, 29 projects have been approved with an outlay of Rs 5,012 crore over a period of next five years. This will transform the agriculture economy of Jammu and Kashmir putting it on a new trajectory of growth, doubling the output of sectors, boosting exports and making the sectors sustainable and commercially viable. It will herald a new phase of farming prosperity and rural livelihood security in Jammu and Kashmir and create additional job opportunities to 2,87,910 people in agriculture and allied sectors. 18,861 new business enterprises will be created over the period of next five years.

Under this Holistic Agriculture Development Plan; 67,000 Metric Ton Controlled Atmosphere (CA) storage space will be created with full value chain and aggregation network. Honey production will be tripled and Cocoon production will be increased from 700 Metric Ton to 1,350 Metric Ton over the period of next five years.

As a "Tourism Mission" initiative 75 new destination, 75 Sufi/religious sites, 75 new cultural/heritage sites and 75 new tracks are being developed and opened up so that the economic gain of tourism industry trickle down to far off and hitherto unexplored areas. The promotion of Film Tourism will be an important component of the "Tourism Mission" during current as well as upcoming years.

Banking Sector Outlook:

In 2023, the Indian banking sector underwent a remarkable transformation, marking a pivotal moment in its trajectory. The year saw a resurgence characterised by declining bad loans, improved profitability, and bolstered capital positions, setting a robust foundation for future growth. The sector faces a landscape filled with opportunities and challenges that will shape its course in the coming months.

The performance of the banking sector in 2023 was nothing short of remarkable. Profits soared to new highs. India›s banking sector reached a historic milestone with a net profit surpassing 3 lakh crore in FY24. The combined profit of listed public and private sector banks surged by 39%, totaling 3.1 lakh crore compared to 2.2 lakh crore in FY23. As per RBIs Financial Stability Report publised in June 2024, the asset quality of SCBs improved during 2023-24 with overall gross non-performing assets (NPA) ratio declining to a 12 year low of 2.8 per cent at end-March 2024. This significant improvement underscored the sectors focused efforts in risk management and debt recovery. Sustained credit growth, increased digital adoption, and supportive government policies were instrumental in revitalising the sector, fortifying its resilience.

During the current FY, the sector cautiously anticipates a favourable outlook. Stable interest rates, a robust GDP, and declining inflation could positively influence lending and deposit activities. The emphasis on technology and infrastructure investments creates avenues for growth. The sector›s resilient foundation—strengthened asset quality, robust capitalization, and sustained profitability—positions it favourably to navigate uncertainties. With a keen focus on innovation, adaptive strategies, and prudent risk management, the Indian banking sector strives for a future characterised by sustained progress and resilience.

Going forward rising interest rates and intensified competition from agile FinTech entities necessitates adaptability and innovation. Additionally, the increased reliance on technology exposes banks to heightened cybersecurity threats, urging stringent security measures.

Banking Sector in J&K:

Role of banks operating in J&K and Ladakh assumes extra significance as they play a crucial role to bail out the region from economic backwardness and bring in prosperity in all sectors of economy. The institutional structure of banking in J&K consists of several institutions, namely, commercial banks, regional rural banks and cooperative banks. Banks are meeting the financial requirements particularly of the unorganized sector and the self-employed in the micro and small business sectors. To meet the objective of financial inclusion, banks are deepening and broadening their network apart from diversifying domain of their activities and jurisdiction. There has been notable improvement in the banking services with the increase in the bank branches over the years in J&K. The region has developed a robust banking network with 2158 branches as at the end of March 31, 2024, spread across its nook and corner. The banking sector consists of 37 banks, which includes 12 public sector banks, 11 private sector banks, 10 Cooperative banks, two regional rural banks, one State Financial Corporation and India Posts Payment bank.

The Annual Credit Plan 2023-24 for UT of J&K, which was launched on 1^stApril, 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.

A glimpse of the aggregate analysis of the advances and deposits position of the banks as on March 31, 2024 reflects some interesting behavioural aspects. All banks together have granted loans to the tune of 1,13,729.84 crore, to various sectors of economy with a deposit base of 1,81,240.34 crore at the end of March 2024. The credit – deposit (CD) ratio stands at 62.75%.

J&K Bank -Business Strategy

Based on the economic outlook, the principal goal of the business strategy of the Bank is to build a strong balance sheet reflecting growth, better asset quality, good prospects of maximization of returns and better capital structure. During the period, bank shall focus on the following:

Business Process Reengineering initiatives (BPR):

Bank has continuously endeavored to align its operations with contemporary business environment and adapt latest technologies and standards with regards to various business aspects. In this direction, bank shall undertake initiatives under BPR to streamline the processes and banking operations by way of adoption of best in class technologies and standards.

Focus on retail lending as well as corporate lending

The risk associated with corporate lending outside the UTs of J&K and Ladakh has been mitigated by shifting the focus to AAA rated PSUs and high rated corporate borrowers (small & mid segment) and retail lending with targets being allocated for corporate sector in alignment with the risk profile and risk appetite of the Bank. Bank is also strategizing to build retail portfolio outside the UTs of J&K and Ladakh through engagement of DSAs, tie-ups with builders and housing finance companies etc.

Focus on digital channels

Banking industry is fast transforming from a system driven by conservative delivery channels to a system hugely supplemented by IT enabled alternate delivery channels. The digital vision of the Bank is to provide the facility of seamless digital payments to all its customers in a convenient, easy, affordable, quick & secure manner. The Bank offers various products and services through multiple digital channels to cater to the diverse preferences and needs of its customers. These channels include: Debit Card, Credit Card, Internet Banking, Mobile Banking, UPI, Phone Banking, Online Account Opening, Chatbot, social media, DBUs, and third party partnerships. The Bank has collaborated with various FinTech companies through partnerships or formal agreements for various facilities on its Credit Cards, POS services, FASTag, BBPS services, Loyalty Management, Direct Debit arrangements etc.

Risk Management

Liability Mobilization:

Bank shall identify different segments of Customers and provide them the facilities as per their requirement by introduction of new products & updation of existing products so as to synergize them with the Current market trends and demands. Technology shall be leveraged for launching of specific deposit products wherein online account opening, etc. shall be enabled to target customers preferring digital onboarding. Besides Corporate Salary Package launched by the Bank for employees of the corporates shall be aggressively promoted & renowned private firms/educational institutions will be pursued for onboarding under the Corporate Salary Package.

Liquidity Risk:

Bank maintains a robust liquidity risk management framework to withstand liquidity shocks and meet obligations in a timely manner. Bank closely monitors its cash inflows and cash outflows, to predict liquidity needs accurately. The bank has a well-defined Contingency Funding Plan (CFP) which ensures a bank has adequate sources of liquidity in place to fund normal operations under various contingent liquidity event scenarios. Bank carefully manages and matches the maturities of their assets and liabilities to avoid sudden imbalances in cash flows. This helps mitigate liquidity risk by ensuring that funds are available when needed to meet obligations.

Business Contingency Plan (BCP):

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. As per the requirements of the ISO 22301, bank has put in place BCP policy, Business Continuity plan and Business Continuity Management System Scope Document to mitigate the negative effects of disruptions which can impact the Banks normal functioning, strategic plans, reputation, market position operations, liquidity, credit quality and ability to remain in compliance with applicable laws and regulations.

Cyber Security:

In todays digital age, the banking industry faces unprecedented cybersecurity challenges. The Bank is committed in ensuring the safety and security of customers financial assets, maintaining the integrity of our banking systems, and upholding our reputation by developing a dynamic framework to address the cyber security challenges arising out of technological developments in cyber space (such as cloud computing, mobile computing, encrypted services, social media etc.). Bank shall create necessary systems, processes, structures, policies and mechanisms to coordinate and integrate with the various security advisory Centres, banking peers for timely information sharing on situational scenarios of existing and potential cyber security threats. This shall help in taking proactive, preventive and protective actions by Bank. Besides Bank shall organize awareness programs on cyber security & run security literacy awareness campaign through electronic media to help customers to be aware of challenges of cyber security.

Succession Planning:

The Bank recognizes the importance of the process to Succession Planning to ensure continuity in the smooth functioning of the organization. The Bank has put in place a policy on Succession Planning for the Board as well as the Senior Management. The policy formalizes a long term and Short term succession plan for a prudent transition process, capable of finding and preparing successors. The Succession planning process involves the identification of Competency requirements of critical roles and leadership positions, assessment of potential candidates and development of required competency through planned development and learning initiatives.

Customer Centricity:

The Bank observes customer centricity through service excellence, integrity and transparency, and a comprehensive range of innovative products and services responsive to customer needs to ensure customer satisfaction for retaining existing customers and attracting new customers. 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, mPay and eBanking channels where the customer complaints/Service Requests are processed and disposed-off 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 Bank also conducts Customer Advisory Forum (CAF) meetings at all Branches at monthly intervals.

These meetings help us obtain first hand feedback about our products and services and in turn facilitate necessary changes/ improvements as per customer expectations.

Economizing Service delivery:

It has been the endeavour of Bank to leverage technology for providing convenient digital services to our customers. Adoption of latest banking technologies not only facilitates better customer experience & ensures customer relationship management but also plays an important role in reduction in cost of operations. Bank has introduced End to End Automation of Phone-Pe Loan to MOU Employees without any manual intervention through Straight through Processing (STP) platform. Bank recently upgraded its mobile banking application ‘J&K Bank mPay Delight Plus which enables customers to view their account, scan QR, transfer funds, open fixed/recurring deposit accounts, apply for loans, pay utility bills, manage credit cards etc. The Bank also undertook deployment of UPI QR Code in mission mode, leading to good presence of our UPI QR Code at merchant locations, particularly in J&K and Ladakh. Besides Bank is expected to widen the ambit of centralization & automation of loan processing by including Housing Loan , SME, Agri, Corporate Loans and Forex & Trade Finance to reduce TaT, increase employee productivity and enrich customer experience. Online Account Opening Facility of the Bank along with Video KYC enables the prospective customers to open a Bank Account 24x7 at their convenience and comfort without any geographical barriers within country and without the need for visiting a Bank Branch.

New Products & Services on the anvil:

Review of existing asset/liability products & introduction of fresh products is an ongoing process. This activity is being undertaken by the bank in line with business objectives with due consideration to competitive landscape, micro and macro-economic factors, target customers, socioeconomic obligation and likewise. It remains an endeavour on the part of the bank to come up with competitive and customer friendly offerings so as to evade competition and make available innovative product offerings to our customers. Banks Product Development and Approval Policy provides for involvement of multiple functionaries in the product development and approval process, so that the best new offering can be created with due consideration to regulatory and legal aspects, competitive factors, customer demographics, geographical factors etc. Technology shall be leveraged for launching of some deposit products wherein online account opening, etc. shall be enabled to target customers preferring digital onboarding.

Governance Initiatives

Various governance initiatives undertaken taken by the Bank during financial year 2023-2024 include the following:

a. Result oriented Performance evaluation of the Directors of the Bank by the Board and committees of the Board.

b. Conduct of customised training / capacity building programmes for the Directors of the Bank in the reputed institutes of learning with a view to enrich the members of the Board.

c. Strengthening of Board Independence and Board

Diversity.

d. Increased effective and meaningful stakeholder arrangement. e. Formulation and review of various policies aimed at reaffirming and re-aligning of Corporate Governance structure of the Bank.

ESG initiatives:

Environment, Social & Governance (ESG) has become an area of heightened focus and has changed banks outlook towards its business as it aims to align its ESG approach with its strategic goals. Bank has adopted "Environment, Social and Governance (ESG) Policy", which seeks to adopt sustainable business practices that ensure accomplishment of Banks long term strategies and have a positive impact on the environment and society. The ESG policy outlines the approach taken to manage Banks Business, environmental and social performance in an integrated manner and help ensure that industry accepted standards and best practices are applied when identifying, assessing and monitoring environmental, social and governance risks with respect to the Banks business operations.

J&K Bank Financial Performance w.r.t Operations performance

During the fiscal 2023-24, the total income was recorded at 12,037.85 Crore compared to 10,111.92 Crore for the previous FY2022-23 showing an increase of 19.05%. Interest 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 Crore for the FY 2023-24 as against 756.81 Crore for the previous FY. Interest expended increased to 6008.68 Crore in the fiscal 2023-24 from 4,609.83 Crore in the previous fiscal 2022-23 recording a YoY increase of 30.34%.

The Banks operating expenses stood at 3,752.29 Crore for FY 2023-24 as compared to 3,643.60 Crore for FY 2022-23. Operating Profit stood at 2,276.88 Crore for FY 2023-24 as compared to 1,858.49 Crore for FY 2022-23, growth of 22.51% YoY.

NPA Coverage Ratio of the Bank stood at 91.58% as on March 31, 2024 as compared to 86.20% as on March 31, 2023. Gross NPA Ratio stood at 4.08% as on March 31, 2024 as compared to 6.04% as on March 31, 2023. Net NPA Ratio has reduced from 1.62% as on March 31, 2023 to 0.79% on March 31, 2024.

The Bank posted a Net Profit of 1,767.27 Crore for the financial year ended Mar, 2024 as compared to Net Profit of 1,197.38 Crore during the financial year ended Mar, 2023.

The aggregate business of the bank stood at 2,28,537.40 Crore at the end of the financial year 2023-24.

The Bank recorded deposit growth of 10.44% and advances growth of 13.95% during the year.

Cost of deposits has increased to 4.57% for FY 2023-24 from 3.79% for FY 2022-23, while, CASA stood at 50.51% for FY 2023-24.

Segment-wise and Product-wise performance of the Bank

The segment wise and product wise performance both in the Deposits and Credit is furnished below:-

Deposits	Amount (in Cr.)	Net Advances	Amount (in Cr.)
Demand	14,823.76	^{Cash Credits, Overdrafts & Demand Loans}	26,725.37
Savings	53,248.85	Bills Purchased & discounted	186.17
Term	66,702.28	Term Loans	66,850.97
Total	1,34,774.89	Total	93,762.51

Total deposits of the Bank grew by 12,737.15 Crore from 1,22,037.74 Crore as on March 31, 2023 to 1,34,774.89 Crore as on March 31, 2024, a growth of 10.44% percent. CASA deposits of the Bank at 68,072.61 Crore constituted 50.51% percent of total deposits of the Bank.

Average deposits stood at Rs.1,24,464.97 FY 2023-24, compared to Rs.1,14,743.60 Crore during FY 2022-23 recording a growth rate of 8.47%.

During the year, Gross Credit increased 86,155.64 Crore (FY 2022-23) to 96,981.86 Crore (FY 2023-24), registering a growth of 12.57%.

Average advances increased 11,745.69by Crore at 90,244.68 Crore during FY 2023-24 compared to 78,498.99 Crore during FY 2022-23.The average yield on advances was 9.54% for the current fiscal against 8.91% during the previous fiscal.

The Bank has the following business segments viz. Treasury, Corporate/wholesale banking, Retail banking and other banking operations. The segment-wise results of the Bank are furnished elsewhere in the report.

Opportunities and Threats:

Banks have a crucial part to play in the economic growth of the country. Banking sector is the key sector for the growth of overall economy of the country. Access to credit has improved over the past decade through various measures taken by the government through industry-friendly policies, entrepreneurship driven schemes & initiatives, GECL, MUDRA schemes etc. Increasing employment opportunities and growing disposable income shall further raise the demand for banking and related services. Besides, launch of various digital initiatives viz. UPI & BHIM payment platforms etc. by the government has helped the country to drive cashless transactions, through leveraging internet and mobile technology. Banks have ramped up their efforts to expand their footprints in digital platforms.

The digital payments system in India has evolved the fastest amongst the countries. It is evident from the record number of UPI transactions per month. UPI transactions are expected to breach 100 crore transactions per day by FY27, according to a report by PwC India, which projects UPI to dominate the retail digital payments landscape, accounting for 90 per cent of the total transaction volumes over the next five years. The opportunities and potential to grow digitally are virtually unlimited. Post pandemic, increased use of Digital platforms, we may call it a digital revolution, is playing a bigger role than ever in banking. Banks, including our Bank are learning and participating in the digitizing of all aspects of banking. Every form of traditional banking is exploring digitization and significant headways have been made in payments, mobile banking, online banking, digital lending, e-KYC, remote customer servicing etc. Data security is, however a critical component in this revolution, and it is a key risk to manage. The financial regulators in India are working towards building a fundamentally strong system that can manage such risks and have been very successful at it.

The banking sector is currently navigating a landscape characterized by both opportunities and challenges. On the one hand, technological advancements have opened new doors for innovation, allowing banks to enhance customer experience through digital services, mobile banking, and fintech collaborations. These opportunities not only streamline operations but also offer a platform for financial inclusion by reaching underserved populations. However, these advancements come with their set of challenges. The rise of cyber threats poses a significant risk to the security ofduring financial transactions, demanding robust cybersecurity measures. Additionally, the evolving regulatory environment and compliance requirements add complexity to banking operations. Frequent changes in regulations, including capital adequacyfrom requirements, lending norms, and compliance standards, can pose challenges for banks as they need to adapt and ensure compliance, potentially affecting their profitability and operation. Taking cognizance of high growth in certain components of consumer credit and to strengthen internal surveillance mechanisms & address the build-up of risks in certain segments, RBI has recently issued regulatory measures wherein it has increased risk weights in respect of consumer credit exposure of SCBs including personal loans but excluding housing loans, education loans, vehicle loans and loans secured by gold, by an additional 25 percentage points to 125%. Besides RBI has also increased the risk weights on exposures to NBFCs by additional 25 percentage points where the risk weight as per external rating of NBFCs is below 100%. This direction from regulator will increase the capital requirements of Banks which in turn will increase their cost of capital. Besides maintaining good asset quality continues to be challenge for Banks as economic uncertainty or industry specific challenges can impact asset quality and profitability, posing a threat to banks stability.

Striking a balance between innovation and security, and adapting to regulatory changes, is crucial for the banking sector to thrive in this dynamic landscape. Successful navigation through these challenges can lead to increased efficiency, customer satisfaction, and sustainable growth for banks in the ever-evolving financial industry.

Risks & Concerns

Bank has comprehensive risk management framework which is based on continuous risk assessment, measurement and monitoring of various risks. The key components of the Banks risk management architecture rely on the risk governance structure, comprehensive processes and internal control mechanism based on approved policies and guidelines. Risk Management is an integral part of the Banks organizational structure and plays pivotal part in formulation of business strategy. The Bank has a well-charted risk management policies for managing credit, operational and market risks based on accepting various risks, controlled risk assessment, measurement and monitoring of these risks. The Board sets the overall risk appetite and philosophy for the Bank.

The Integrated Risk Management Committee of the Board (IRMC), which is a sub- committee of the Board, reviews various aspects of risk arising from the businesses of the Bank & frames, monitors and reviews the risk management framework. IRMC of Board oversees the management of risks through Executive Management Committees-Credit Risk Management Committee (CRMC), Operational Risk Management Committee (ORMC), Market Risk Management Committee (MRMC) and Asset Liability Management Committee (ALCO). The Integrated Risk Management Committee (IRMC) of the Board reviews risk management policies of the Bank pertaining to credit, market, liquidity, operational & Pillar II risks that includes strategic risk and reputational risk, stress testing, Business continuity planning & information security. The Committee reviews implementation of Basel III norms, risk return profile of the Bank, compliance with RBI guidelines pertaining to credit, market, operational and residuary risks faced by the Bank. The Chief Risk Officer (CRO) oversees the development and implementation of Banks risk management functions. Further details in this regard are available in Directors Report and Corporate Functions Report.

Internal Control and Systems Adequacy

To strengthen effective controls for compliance to systems & procedures and policy decisions on various operational aspects of day-to-day banking, the Bank has well defined internal control measures in place which are commensurate to its size as also the complexity of operations.

Audit Committee of Board provides directions / oversees the audit function of the bank including internal/ statutory / external audit of the Bank and inspections of RBI. It reviews the internal inspections / audit functions of the Bank - systems, its quality and effectiveness in terms of follow up. Supervision, Control & Audit Division, Corporate Headquarters examines, identifies and finalizes the Branches/ other Operational Offices for the purpose of various Audits from time to time. As per the approved Audit Policies, this annual exercise is conducted every year so that there is smooth conduct of various Audits like RBIA, Concurrent Audit, Credit Audit, Legal audit, I.S Audit etc. In compliance to RBI guidelines, the Bank has already put in place Audit system to strengthen various measures for effective controls for compliance to systems & procedures and policy decisions on various operational aspects of day-to-day banking.

Audits serve as one of the effective tools/modes of (i) early-warning system for detection of irregularities and lapses in daily operations of banks branches; and (ii) checking recurrence of irregularities, infirmities and deficiencies in banking operations thereby facilitating their detection, diagnosis and initiating desired steps for their rectification, improvement of systems & procedures besides compliance to internal and regulatory guidelines and controlling risks/ preventing frauds.

In the light of the fast changing dynamics of todays banking environment and in tune with the extant guidelines the bank has adopted Risk Based Internal Audit, which includes, in addition to selective transaction testing, an evaluation of the risk management systems and control procedures prevailing in various areas of the banks operations. The implementation of risk-based internal audit means that greater emphasis is placed on the internal auditors role in mitigating risks. While focusing on effective risk management and controls, in addition to appropriate transaction testing, the risk-based internal audit not only offers suggestions for mitigating current risks but also anticipates areas of potential risks and plays an important role in protecting the bank from various risks. The Branches and other offices of the bank are also subjected to other audits viz Concurrent Audit, IS Audit, Credit Audit, Legal Audit, Stock Audit, Forex Audit, Snap Inspection, Management Audit and Forensic Audit which form part of the internal control mechanism. These audits are effective tools/ modes of early-warning system for detection of irregularities and lapses in daily operations of banks branches, checking recurrence of irregularities, infirmities and deficiencies in banking operations.

Besides, keeping pace with rapid digitalization in your bank, technology-based audit system has been introduced for enhanced efficiency and effectiveness through system driven audits. The modules which uses technology for audit purpose are:-

1. Concurrent Audit

2. Risk based Internal Audit

3. Long Form Audit Report

4. Information Systems Audit

5. Credit Audit

6. Legal Audit

7. Management Audit

All the critical operations of the Bank such as Treasury Operations, Centralized Processing Units, Data Centres, Contact Centre, Government Business Department, KYC/ AML Department, Terminal Benefits Department, Payments & Settlement Department, etc. are subjected to Concurrent Audit. Core Banking Solution (CBS) and all other major information technology assets / applications, besides concurrent audit, are also subjected to I.S Audit while as departments at controlling offices are covered under Management Audit.

Branch Audit

S&C and Audit Department undertakes review of the operations of Branches through Risk Based Internal Audit (RBIA), an adjunct to Risk Based Supervision, as per RBI directives. Your Bank has initiated a system driven process through a software called eThic for conducting the audit of all Branches of the Bank covering the business operations which auto calculates the periodicity of next audit as per the risk rating arrived at in current Audit.

Credit Audit

Your Bank undertakes Credit Audit to review large value standard borrowal accounts, evaluates portfolio quality including audit of appraisals, sanction and follow-up process on an ongoing basis. The loan review mechanism under credit audit has been designed to provide feedback on effectiveness of credit sanction and identify early deterioration in eligible borrowal accounts.

Management Audit

Management audit is an independent and systematic appraisal of how effectively and efficiently an organization is accomplishing its objectives and performing the management functions of planning, organizing, directing, coordinating and controlling. Management audit is a total audit system encompassing the entire gamut of management functions and tools including the internal audit/inspection functions.

Foreign Exchange (Forex) Audit

Foreign Exchange business of the Bank being conducted across the country borders is exposed to a number of risks. Foreign currency prices are subject to change on account of monetary policies of the Reserve Bank and by domestic, international and overall global economic factors. Since the Forex market is a 24-hour global market with numerous players involving vast sum of money, rates can move considerably on account of any overseas developments and expectation of any change in monetary flows triggering speculation. Moreover, Forex market is information technology driven and as such, decision-making has to be instantaneous

Information system audit

Information system audit is a part of the overall audit process, which is one of the facilitators for good corporate governance. Information System (IS) auditing is a systematic independent examination of the information systems and the environment to ascertain whether the objectives, set out to be met, have been achieved. IS Audit is the process of collecting and evaluating evidence to determine whether a computer system (information system) is safeguarding the assets, maintaining data integrity and operating effectively to achieve organizational goals.

Concurrent Audit

Your Bank has put in place concurrent audit system carried out round the year at BUs on an ongoing basis. Concurrent audit is an independent appraisal activity conceived as a systematic examination of all financial transactions at a BUs to ensure accuracy and compliance of internal systems and procedures as laid down by the bank. It aims at minimizing the incidence of serious errors and fraudulent manipulations as it is intended to be undertaken concurrently. Your Bank has engaged Chartered Accountant Firms in addition to the retired experienced bank officers and regular officers for audits. Additionally, Concurrent Auditors are placed at Central Processing Centers to identify shortcomings in underwriting at a very early stage of the client relationship.

Legal Audit

Legal Audit in your Bank covers scrutiny of the loan and security related documents of loan accounts with credit exposure of Rs.5 crore and above. The legal audit is a control function, carried out by in-house team of internal auditors with requisite legal background/qualifications or through panel advocates to ensure that there are no shortcomings in the documents or creation of security in favour of your Bank.

The S, C & Audit Division handles the staff accountability cases other than those having a vigilance angle. The staff accountability cases are investigated by the field level functionaries located at three S&C Divisions viz. S&C Kashmir, S&C Jammu and S&C Delhi. The cases are then analyzed and put to hierarchy for referring to IAC (Internal Advisory Committee) or for closure as the case may be.

Vigilance cases emanate from two sources i.e. external and internal sources. The external sources include the complaints from customers as well as non-customers, State & Central government agencies, print media, CAG and RBI. The internal sources consist of mainly inputs from inspections and audits (snap, concurrent, RBIA, information system (IS) audit, off-site surveillance reports, whistle-blower mechanism etc.). On receipt of any communication from these sources, the fraud angle is investigated from the concerned S & C Division of the bank and further examined and analyzed by the investigating officer at Vigilance Department who scrutinize its various aspects and propose suitable action depending on the severity of the findings ranging from issuance of caution / displeasure letters / suspension to termination and dismissal. In case it is deemed that further disciplinary action is needed the case is referred to the Disciplinary Department, Corporate Headquarters for completion of disciplinary proceedings as per the extant rules of the bank.

Human Resources and Industrial relations

Bank believes that its greatest assets are its human resources and training is a long term investment in people development for organizational excellence. Bank has updated all policies related to HR as part of transformation journey. Business per Employee and Net Profit per Employee were at 17.81 crore and 13.75 lakh respectively for the financial year ended March, 2024 compared to 15.57 crore and 9.06 lakh pertaining to the financial year ended Mar, 2023.

Training:

Human Resource plays an important role in organizational development and its profitability. In order to keep the employees updated and relevant in the market, besides sharpening their skill set and knowledge, new techniques, procedures and technologies are introduced in the Organization. In line with organizational vision & goals and in order to develop leadership qualities and inculcate the sense of motivation and responsibility among its staff, trainings (both on job as well as off job) are imparted to the staff for which services of various Institutes are being utilized. Banks own Staff Training Colleges at Srinagar and Jammu also cater to the sizeable training needs of the organization. Offline trainings are conducted both in-house as well as at external training institutes. In FY 2023-24, 6222 officials were imparted training in different banking related fields.

The highest number of trainings were imparted in Credit function where 2091 employees were trained during the year.

Digital banking also remained one of the focus area and 1431 employees designated as ‘Digimitras were trained during the year

Information security, NPA Management & Cross selling were other areas with more than 500 to 1600 employees trained in each domain during the year.

J&K Bank, apart from being among the four banks having stake in National Institute of Banking Studies & Corporate Management (NIBSCOM), is also an Associate Member of below mentioned institutions/ bodies and officers of the Bank regularly participate in the trainings, seminars and workshops organised by them.

i. National Institute of Banking Management (NIBM).

ii. Federation of Indian Chambers of Commerce & Industry of India (FICCI).

iii. The Associated Chambers of Commerce & Industry of India (ASSOCHAM)

iv. Indian Institute of Banking & Finance (IIBF).

v. Confederation of Indian Industry (CII)

Capacity Building:

In order to encourage and groom its staff to acquire further knowledge and skill sets for disposal of assignments diligently and in a professional way, the Bank has taken a step ahead and enlisted courses contemporary to banking landscape as per RBIs guidelines. The officials successfully completing these courses are being reimbursed actual course fee and honorarium in case of Diplomas and MBA (B&F). As many as seven Diploma courses and eight Certificate courses offered by IIBF, besides certification/re-certification courses in IT conducted by Cisco/Solaris/Oracle/Microsoft/Sun Java have been enlisted.

Under RBIs Capacity Building Programme, following seven courses have been enlisted in order to develop a resource pool in critical areas viz Risk, Forex, Treasury etc.

• Certified Credit Professional Course.

• Certified Treasury Professional Course.

• Certified Risk in Financial Services.

• Diploma in IFRS by ACCA by KPMG.

• The Chartered Financial Analyst Programme offered by American Based CFA (USA).

• Financial Risk Management by GARP USA.

• Certification in Foreign Exchange

During FY 2023-24, the Bank entered into an academic arrangement with IIBF for conducting Training cum Certification exclusively for the employees of the Bank to create a pool of certified resources in sensitive and critical Banking domains of Credit, Forex, Treasury, Risk Management and Audit & Accounting.

e-Pathshala

During FY 2023-24, the Bank introduced an e-Learning Management System christened ‘e-Pathshala, a software application accessible over Internet through PCs & Laptops. A mobile based version of the application was also introduced to give employees ease of accessing the app from anywhere and at any time including while travelling. Eight courses comprising of 53 modules in areas of Information Security , Information Security, KYC AML Certification, Risk Management, Treasury, International Trade Finance, Credit Monitoring & Credit were uploaded on the system and made available to the employees for enhancing their knowledge. More than 1000 employees have already completed all the courses.

Manpower Planning

Manpower planning encompasses the process that identifies the number of employees that is required in terms of high quality and quantity, hence it is seen as an ongoing process of regular and structured planning.

HR always takes into consideration the growth of the Bank by transforming the current manpower position into desired manpower position through planning and management to have the right employee at the right position to ensure effective utilization of manpower, thereby to achieve the long term objectives/targets.

The Man power Planning is resorted to in a professional manner to ensure proper staffing, that is placing the right person at the right position. In order to adopt industry best practices, the Bank hired the services of a consultant (KPMG) for conducting an organization wide manpower assessment in the Financial Year 2022-23. The manpower deployment within the Bank is being done as per the said assessment.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous FY) in key financial ratios.

Return on Assets is 1.22% for the Financial Year ended 31^stMarch, 2024 as compared to 0.89% for the previous Financial Year.

Gross NPA Ratio stood at 4.08% as on March 31, 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.

Earnings per Share is 16.80 for the Financial Year ended 31^st March, 2024 as compared to 12.43 for the previous Financial Year.

Adjusted Book Value per share stood at 92.90 as on March 31, 2024 as compared to 67.76 as on March 31, 2023.

Corporate Functions Report

Major CSR Activities in the Financial Year 2023-24

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 Banks 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 societys endeavors 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.

Key areas of intervention under the CSR programme:

a) Healthcare & Hygiene

b) Education

c) Skill Development & Livelihood Generation

d) Community Development/Welfare

e) Ecology & Environment

f) Rural Development

g) Promotion of Sports

h) Promotion and Preservation of Art, Culture & Heritage

i) Animal Welfare

j) Welfare of War Veterans, Ex-Servicemen and their families

CSRESG Committee of the Board

Ms. Shahla Ayoub	Chairperson
Mr. Baldev Prakash	Member
Mr. Umesh Chandra Pandey	Member
Mr. Anil Kumar Goel	Member
Mr. Anand Kumar	Member
Mr. Sudhir Gupta	Member

Details of activities undertaken under CSR during the FY 2022-23

A. Healthcare & Hygiene

SDG 3 - "Ensure healthy lives and promote well-being for all at all ages"

1. Menstrual Hygiene – Project for preventive healthcare measures for Women

The Bank undertook an extensive awareness campaign on menstrual hygiene and utilized the services of ‘Live For Others – Being Helpful Foundation, an MCA registered organization, for project implementation, as per the following details:

Campaign covered all the 20 districts of J&K.

Sustainability ensured through community involvement by way of collaborating with volunteers, educational institutions, local stakeholders including panchs, sarpanchs, SHGs, female leaders etc.

Impact and effectiveness ensured by imparting awareness in local languages/dialects.

100 Awareness camps/seminars (Around 5 in each district) with participant age groups varying from 12+ girls to women up to the age of 52. Thousands of girls and women benefit from the initiative.

Focus was on removing shyness, education & awareness regarding women hygiene, removing myths & following scientific approach and, understanding the benefits of sanitary napkins and carrying this message forward.

Free distribution of 500000 (Five Lac) Ayushman Bharat sanitary pads/napkin during the course of the campaign.

2. NAJAATH – An initiative for Tobacco and Drug free Society

Conscious of the fact that Jammu and Kashmir is facing a growing menace that threatens not only the health and well-being of its residents but also the social fabric of the community, J&K Bank initiated a campaign for a drug and tobacco free society in collaboration with Department of Health Services and Department of Education. The project was initiated on a pilot-basis in twin cities of Jammu and Srinagar through SPVLG Foundation. The major highlights of the initiative were:

Awareness and Prevention

Awareness Programmes and targeted psycho-educational sessions within the community 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 radio, TV (preferably DDK) and social media, to amplify the message of a drug and tobacco-free lifestyle. Directorate of Health Services, J&K provided relevant/ professional resource for the purpose.

Collaboration with local health authorities to maximize the impact of the awareness campaign.

Treatment and Support

Introduce the patients to accessible and proven-treatment-options.

Creation of a referral network for individuals requiring specialized care.

Counselling and psychological support to foster long-term recovery through CCCs, which provide safe and secure drop-in space for drug users in the community. These centres had the provision of screening, assessment and psycho-social counselling and provided referral and linkage to treatment and rehabilitation services for drug dependents.

Providing nicotine patches to chronic smokers (identified by the concerned Health Department) to aid and encourage them to quit smoking.

3. Ambulances to GMC Jammu and SKIMS Soura

Proper healthcare is essential for the well-being and prosperity of any region, and this importance is magnified in a place like Jammu and Kashmir where climatic conditions can be harsh and access to healthcare is often challenging due to the rugged terrain. Beyond emergencies, healthcare is necessary for routine medical needs, maternal and child health, and the management of chronic diseases and with growing population, the need for augmentation of healthcare facilities becomes all the more important to cater to the diverse healthcare needs of the population. Although Government-run healthcare facilities are providing all the required services but the huge footfall of patients affects the overall quality of the service.

Carrying forward its legacy of complimenting Governments efforts in augmenting the overall health infrastructure, Bank provided two ambulances to GMC Jammu (and its associated hospitals) and one ambulance to SKIMS Soura.

One of the two ambulances (basic patient-transport vehicle) required at GMC Jammu is being used at State Cancer Institute GMC Jammu while the second (critical care ambulance) at Super Speciality Hospital Jammu. Catering to a huge patient inflow, with patients from far off districts like Rajouri, Poonch, Doda, Kishtwar too relying for specialised treatment on the prestigious GMC and its associated hospitals, improving ambulance availability related services is of immense importance.

The fully-equipped critical care ambulance required at SKIMS Soura (the largest healthcare facility in the region catering to over 1.5 million patients annually) will help in transportation of patients with critical injuries as the facility of a critical care ambulance was lacking at SKIMS Soura. Further, owing to the huge patient footfall at the hospital from all over the region, requirement of such a facility was the need of the hour as it can reasonably improve the health-care infrastructure of the hospital, thereby bringing relief to hundreds, and even thousands, of patients annually.

4. Providing Medical and Allied equipment to SKIMS Soura and GMC Jammu

In this connection, Bank funded the project of providing various medical and allied equipment to SKIMS Soura and GMC Jammu. The equipment includes:

Machinery/Equipment for Department of Urology Super Speciality Hospital GMC Jammu

200 + wall and pedestal fans for GMC, SMGS Hospital, Bone & Joint Hospital, Super Speciality Hospital, State Cancer Institute

One Gastro-scope for the Department of Gastroenterology, SKIMS, Srinagar

40+ privacy screens for wards at SKIMS, Srinagar

80-100 seating benches for attendants visiting SKIMS, Srinagar

5. Providing hearing aids and speech therapy to persons with hearing & speech impairment

Catering to the needs of the specially-abled is of paramount importance in building an inclusive and equitable society. By providing equal opportunities and accessibility, we not only empower individuals-with-disabilities but also enrich our communities. Its a matter of social justice and human rights to ensure that people-with-disabilities can participate fully in all aspects of life, including education, employment, and social interactions. In the case of hearing and speech impaired individuals, the significance of catering to their needs is even more pronounced. Communication being a fundamental human need, these individuals face unique challenges.

In this connection, Bank collaborated with ‘Voluntary Medicare Society, a well-established and credible organization serving the cause of specially-abled in Kashmir for the past 50 years, to conduct hearing and speech assessment of the people and provide free hearing aids to the needy and deserving. The major highlights of the project include:

Six (06) speech & audiology medical camps at different location in Kashmir during which ENT specialists & speech therapists examined the persons with hearing and speech impairments

More than 500 people in Kashmir region were provided free-of-cost hearing-aids.

Community based and Institutional Speech Therapy provided to persons with speech impairment by certified Speech Therapists over a period of six months.

5000+ potential beneficiaries (500+ direct beneficiaries of hearing aids and over 4500 beneficiaries of assessment camps and speech therapies).

6. Construction of mechanized Sewage Treatment Plant (STP) at District Hospital Bandipora

Importance of Wastewater treatment assumes more significance in the contemporary societies especially in developing nations like India. The main goal of wastewater treatment facilities is to protect people as well as local ecosystems, from harmful elements found in wastewater. Water treatment facilities are designed to speed up the process of purifying water because the natural process cant keep up with the amount of waste society produces And this holds all the more importance for public facilities like hospitals.

In the aforementioned context, the 150 bedded District Hospital of Bandipora, located in a low lying marshy land just half-a-kilometer away from the banks of the Wullar Lake, was provided support under CSR for setting up a Sewage Treatment Plant The lake and its surrounding marshes provide habitat to important natural wildlife, thereby making it an ecologically hyper-sensitive area. Corporate Social Responsibility (CSR) in the context of environmental sustainability, particularly in wastewater treatment, is imperative in addressing the global challenge of water pollution and resource depletion. Given the escalating strain on water bodies due to various modern-day factors, advanced treatment technologies like setting-up of Sewage Treatment Plants can contribute a lot to the preservation of biodiversity, public health, and the overall well being of communities.

7. Patient Transport Trolleys and Wheelchairs to the Govt./ Semi Govt. Hospitals of J&K and Ladakh

The importance of a standard healthcare system in any society cannot be over-stated and given the huge load on the existing government-run healthcare facilities especially in J&K and Ladakh, it has become imperative for responsible corporates like J&K Bank to step-in and compliment and support the efforts of the Government through innovatively conceived projects under Corporate Social Responsibility. With this understanding and context, a project was devised to provide Patient-Transport

Trolleys and Foldable Wheelchairs to different government-run hospitals in the twin UTs of J&K and Ladakh and augment the existing health-infra. Under the project, the Bank provided the following items to the District Hospitals of J&K & Ladakh and GMC Jammu/Srinagar and its associated Hospitals;

• 53 Hydraulic Casualty Trolleys

179 Stretcher-on-trolleys

• 197 Foldable wheelchairs

The initiative reached all the districts and allowed to augment the Health Infrastructure especially in the rural and far flung district hospitals in the larger interest of patient care.

8. Ambulance to Health Centre of SKUAST-K

Good healthcare contributes immensely towards a healthier and more productive society by ensuring timely and effective medical interventions, promoting disease prevention and health education, enhancing life quality and expectancy, reducing the burden of illness and disability, and supporting socio-economic development. Although Government-run healthcare facilities are providing all the required services but the huge footfall of patients affects the overall quality of the service. In this context, realizing the need at the Health Centre of SKUAST-K, J&K Bank in the FY2023-24 provided one ambulance equipped with basic life-saving equipment to the Centre. It wouldnt be amiss to mention that the Health Centre of the University at Shalimar campus not only provides healthcare facility to the 5000 students and 2000 employees of the University, but also caters to the local community including the surrounding catchment area of Shalimar, Ishber, Tailbal and inhabitants of Foreshore Road.

9. Medical Equipment to Maha Bodhi Karuna

Charitable Hospital

One of the key components of an efficient healthcare system is the availability of medical and allied equipment. These tools are the lifeline of healthcare providers, aiding in diagnostics, treatment, and patient care. In a region like Ladakh with difficult geographical terrain, having access to modern medical and allied equipment is crucial for diagnosing and managing a wide range of health conditions. In this regard, Maha Bodhi International Meditation Centre (MIMC) is, among other projects, running Maha Bodhi Karuna Charitable Hospital at Ladakh since 1999. The 30-bedded Charitable Hospital at Choglamsar Ladakh is spread over an area of 28328 mt²and is one of MIMCs many service projects wherein free external health and medical services are provided to the needy. Maha Bodhi International Meditation Centre (MIMC) has been serving the people of Ladakh through their various initiatives be it in education, disaster relief, sustainable development, humanitarian services and most importantly Healthcare. Having ascertained the on-ground work carried out by MIMC, Bank provided surgical equipment to the Urological Department of their charitable hospital in the FY2023-24. The project is in line with the Banks larger objective of supporting and augmenting the healthcare infra of J&K and Ladakh for the welfare of people.

10. Medical equipment to Swami Vivekananda

Medical Mission Hospital

Swami Vivekananda Medical Mission (SVMM) is running ‘Swami Vivekananda Charitable Hospital since 1970. The 40-bedded Charitable Hospital at Amphalla Jammu is spread over an area of almost 10 Kanals and is one of SVMMs many service projects wherein free external health and medical services are provided to the needy. The Hospital is doing a commendable job in so far as catering to the healthcare needs of the local population is concerned. The organization is making continued efforts to augment its existing infra & services and provide the best healthcare services to the patients. The Hospital has established its credibility by serving the people through their specialized medical faculties and providing free healthcare services to thousands of needy patients every year. Augmentation of healthcare facilities and targeted CSR interventions in important areas can have a profound impact on improving healthcare accessibility, quality, and outcomes in the region which will ultimately contribute to the betterment of the lives of the people. In this regard, acknowledging the hard-work of the SVMM Hospital, Bank in the FY2023-24 provided medical equipment to the surgical unit of the Hospital under CSR.

11. Construction of Ladies Washroom at District

Court Complex Jammu

Bank provided support for construction of a ladies washroom at District Court Complex Jammu, to provide a clean and hygienic toilet facility to the ladies visiting the Court for various purposes. The space will also serve as a safe toilet space for women in a busy public place like Court Complex. The project is also in line with objectives of Swacch Bharat Abhiyaan and fulfils Sustainable Development Goal pertaining to "ensuring access to sanitation for all".

12. Construction of pre-fab patient/attendant sheds at District Hospital Kargil

One of the key components of an efficient healthcare system is the availability & provision of attendant residential sheds in hospitals which serves as a critical and compassionate necessity in the healthcare infrastructure. These facilities serve as a supportive haven for family members and caregivers who are accompanying patients during their hospitalization. The emotional and psychological well-being of patients is significantly influenced by the presence of loved ones, offering comfort, reassurance, and a sense of security. Attendant residential sheds play a pivotal role in fostering a healing environment by ensuring that family members can stay close to their ailing relatives, especially during extended treatment periods or critical phases of illness. Moreover, these facilities alleviate the financial burden on families who might otherwise incur additional costs for temporary accommodation. In essence, the incorporation of attendant residential sheds in hospitals is an essential step towards creating a holistic and patient-centred healthcare system that recognizes the significance of familial support in the healing process.

Contributing towards this important aspect of Healthcare, Bank supported construction of prefab structures (eight units) at District Hospital Kargil for the overnight stay and convenience of patients and their attendants visiting the hospital from far-off places. The structure will facilitate accommodation of 32 people with each of the eight units having a capacity of accommodating 04 people. The individual units come with basic facilities like kitchen, bathroom and sitting/sleeping area to provide a decent, secure, comfortable and convenient stay along with ensuring privacy.

Along with enhancing the level of accessibility of Govt. Health Services to all, especially those coming from economically poor background and residents of remote border areas of Kargil district of Ladakh UT, the pre-fab structures in a location like Kargil becomes even more pronounced given the geographical remoteness and extreme climatic conditions of the region. Banks support in providing residential accommodations for attendants/patients visiting District Hospital Kargil is one more socially relevant project undertaken in the Healthcare sector.

B. Education

SDG 4 - "Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all"

1. Financial Literacy/Awareness Campaign

Financial Literacy is combination of financial awareness, knowledge, skills, attitude, and behaviour necessary to make sound financial decisions and ultimately achieve individual financial well-being and develop a sustainable financial system. Being financially aware helps people improve their understanding of financial products, concepts and risks and through information, instruction and objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help and to take other effective actions to improve their financial well-being.

Bank in the FY2023-24 utilized the modern means of communication in disseminating important financial information which not only ensured the widest possible reach (over 5 million in aggregate), but also reiterated Banks resolve in being a responsible corporate citizen. Bank conducted the campaign for basic banking services, social security services, cyber security, safe digital banking etc. through:

2D informative videos which were shared on Banks social media platforms like Facebook, Instagram and YouTube.

Running audio capsules on All India Radio and the FM Stations operating in J&K and Ladakh.

Awareness through TV programmes on Doordarshan.

2. Establishment of Library at Zanskar, Ladakh

J&K Bank collaborated with Tehsil Legal Services Committee / Munsiff Judicial Magistrate 1st Class Zanaskar to establish a public library at Zanskar, a remote sub-division of district Kargil in the Union Territory of Ladakh.

Functioning 24x7 and accessible against a nominal registration charge for the students, the library has already started playing an important role in educational development of local communities by providing access to information and resources, supporting literacy and education, promoting lifelong learning and serving as a community gathering space. Around 10000 people from a total population of around 20000 souls of the three blocks of the Zanaskar Tehsil are expected to benefit from the initiative.

3. Establishing Smart Classrooms in the University of Kashmir

To ensure that quality education is provided even in the remote and far-flung areas, J&K Bank collaborated with the University of Kashmir, the premier Educational Institution of Kashmir, to extend the assistance of its experienced faculty to all its affiliated colleges and satellite campuses in remote and far flung areas through advanced technological tools by which tens of thousands of students studying in satellite campuses and affiliated educational institutions will be benefitted. Under this initiative, smart-classrooms with remote connectivity were established in seven Departments of Kashmir University, which will enable these departments to extend teaching assistance to remotely located institutions where such subjects are offered and will solve their problem of inadequate faculty to a reasonable extent.

The project aimed towards "promoting education" by utilizing advanced means of technology and shall prove beneficial in addressing the disparity in quality of education in cities & villages.

4. Establishing Libraries at 10 locations in Kashmir

Libraries play a pivotal role in society by serving as repositories of knowledge, culture, and history. They provide equitable access to information and resources for people of all backgrounds thereby fostering literacy, education, and intellectual growth. Libraries promote lifelong learning, critical thinking, and research skills, serving as hubs for community engagement and cultural enrichment. Additionally, they play a crucial role in preserving and archiving valuable literature and documents, ensuring that future generations have access to the collective wisdom of humanity.

Bank, in the FY2023-24, collaborated with ‘Sanjeevani Sharda Kendra Trust, an NGO working towards safeguarding the socio-cultural and educational heritage with a special focus on educational empowerment of children and youth, to setup library-cum-reading rooms in Kashmir Valley with identified locations being Ranipora (Anantnag), Vassu (Kulgam), Kakaran (Kulgam), Sheikh Pora (Budgam), Veervan (Baramulla), Durga Mandir (Uri), Pando Mandir (Lagama-Uri) and three in Srinagar (Badami Bagh, Maharaj Gunj & Indira Nagar).

5. Establishing Smart classrooms and computer lab at SMVD Gurukul and SMVD College of Nursing

Corporate Social Responsibility (CSR) initiatives aimed at promoting education across different geographies serve as a transformative force, fostering sustainable development and societal well-being. Ensuring the provision of quality education in remote areas is imperative for fostering inclusive development and bridging societal disparities. By extending educational opportunities to under-served regions, we not only empower marginalized communities but also bridge educational disparities and unlock the potential of underprivileged youth to contribute to the broader socio-economic fabric. Quality education in remote areas also breaks the cycle of poverty, enhances social mobility, and cultivates local talent, ultimately nurturing a skilled workforce that can address regional challenges and drive sustainable growth. It is a crucial step toward building resilient communities and fostering a more equitable and interconnected world

Continuing its support in the field of promoting education, Bank collaborated with Shri Mata Vaishno Devi Charitable Society (SMVDCS) to establish;

Ten Smart Class Rooms (08 in SMVD Gurukul and 02 in SMVD College of Nursing)

One Computer Lab at SMVD Gurukul

6. Contribution towards construction of Girls Hostel by Sewa Bharati at Gandoh Bhalessa, Doda

In the remote and hilly region of Gandoh Bhalessa, Doda, located approximately 220 kms from Jammu, local families faced formidable barriers in ensuring higher education for their children. Further, the regions geographical isolation and economic challenges forced students from far-flung areas to endure daily commute of three to four hours to reach colleges thereby placing a significant financial burden on impoverished families and more often than not, owing to unaffordability, students dropped out of their studies which exacerbated illiteracy and poverty within the area. This created a vicious cycle of limited opportunities and limited growth.

To address this issue, ‘Sewa Bharati Jammu, in line with their parent organizations objectives, constructed a single story girls hostel (with a carpet area of 5643 ft²⁾in this challenging terrain of Gandoh Bhalessa, which, with its current capacity of 30 students, provides food, clothing, and boarding & lodging facility to the needy girls of far-flung areas thereby facilitating education and empowering girls of the region. In order to cater to the huge inflow of requests from students for accommodation, the organization expanded the capacity from 30 to 60 with the support of J&K Bank.

The hostel enables the girls of far-flung region to have equal opportunities in education. The hostel is serving as a lifeline for economically disadvantaged girl students by eliminating the obstacles that hinder their access to education thereby enabling them to aspire for a brighter future free of poverty and illiteracy. This not only helps promotion of education but empowers the community in general and women in particular. Expanding the capacity of the hostel helped extend the opportunity and facility to more such deserving girls from under-privileged regions and sections.

7. School-bus to Humanity Welfare Organization helplines Zaiba Aapa School for specially-abled students

‘Humanity Welfare Organization Helpline is a not-for-profit organization established in the year 2003 with the objective of working towards the welfare of persons with disabilities with a focus on specially-abled children. The NGO, apart from running various skill development and employment generation programmes for specially-abled youth also deals with in-house education and rehabilitation of around 130 children with multiple disabilities like hearing, speech & visual impairment, cerebral palsy, autism, downs syndrome etc. through its school namely "Zaiba Apa Institute of inclusive education". The school imparts free formal education and other varied specialized training programs like Braille for Children with Blindness, sign language courses for the hearing & speech impaired and activities of daily living trainings for the children with mental disabilities. In addition, physiotherapy and extracurricular activities like sports, music, craft and mobility trainings are also provided to the children. Acknowledging the effort and hard-work of the organization, Bank provided one 30-seater school bus to the school for safe and secure to-and-fro transportation services of the specially-abled children. The project is Banks humble contribution towards ensuring care of such disadvantaged sections of the society.

8. School Bus to Army Goodwill School Harka Bahadur Kargil

In Ladakh, where the geographical remoteness and harsh climatic conditions pose significant challenges, Army Goodwill Schools serve as vital educational institutions, bridging the gap in access to education. These schools have achieved remarkable success in providing education and fostering development in challenging environments and have significantly increased literacy rates and educational access thereby contributing to the empowerment of local communities.

Army Goodwill School, Harka Bahadur (named after Subedar Harka Bahadur, MVC of 1/5 Gorkha Regiment) is one of the many Goodwill schools operating under the auspices of Indian Army in the harsh and difficult geographical area of Kargil and is serving the educational needs of under-privileged students of border villages. Established in 1995, the school is located six kilometres from Kargil and has classes up to 10th standard with 541 underprivileged students currently enrolled. Lack of transport facility hindered enrolling more students as the daily commute in the harsh terrain often was acting as a deterrent.

Realizing the need, Bank provided a School Bus to the school for the welfare of the children. A dedicated school bus will ensure safe and reliable transportation, overcoming geographical barriers and enabling a higher attendance rate thereby promoting inclusivity by making education accessible to all. It also enhances the overall safety of students, especially during adverse weather conditions, contributing to a more conducive learning environment. This initiative not only facilitates academic progress but also emphasizes the importance of education by eliminating transportation hurdles, making it clear that every childs educational journey is valued. Moreover, the school bus serves as a symbol of commitment to the community, reinforcing the idea that education is a cornerstone for individual growth, community development, and overall societal progress in the unique context of Ladakh.

9. Smart classes in Sainik School Nagrota

In the contemporary world, the integration of modern tools and technology has revolutionized the educational landscape. These tools, ranging from interactive software to online platforms, enhance the learning experience by providing dynamic and engaging ways to acquire information. They promote collaboration, creativity, and adaptability, preparing students for the challenges of a rapidly evolving globalized society. The use of modern tools in education not only facilitates access to a vast pool of information but also cultivates a tech-savvy and innovative mind-set. As we navigate the complexities of the 21^st century, the symbiotic relationship between education and modern tools becomes increasingly crucial, laying the foundation for a knowledgeable, skilled, and adaptable citizenry. Further, as per the guidelines of the New Education Policy (NEP) 2020, much importance has been given to the integration of technology and use of smart classrooms and smart boards in the teaching process.

In this context, Bank supported establishment of eight smart classrooms in Sainik School Nagrota for providing education to the students by utilizing the modern means of teaching. Established in 1970, Sainik School Nagrota is located at the serene location on the banks of river Tawi. The school is affiliated with CBSE with 500 cadets currently enrolled and is the northern most & only such boarding school in the UTs of J&K and Ladakh. For the last more than five decades, the school has been doing a yeomans service by preparing students academically, physically and mentally for entry into the National Defence Academy (NDA) and to join the Indian Armed forces as Officers. The school has consistently contributed towards its primary role as a feeder institution to the Armed Forces and contributing in Nation Building by producing well-disciplined citizens.

Banks initiative is aimed at promoting education as such initiatives serve as a transformative force in fostering sustainable development and societal well-being.

10. School bus and smart classes to Chinar Kashmirs hostel for orphan and destitute children

Education plays a pivotal role in shaping individuals and societies, serving as a powerful catalyst for personal and collective growth. By fostering critical thinking, knowledge acquisition, and skill development, it empowers individuals to navigate complexities, make informed decisions, and contribute meaningfully to their communities. Moreover, education fuels economic progress by nurturing a skilled workforce, promoting innovation, and fostering an environment conducive to societal advancement. It forms the cornerstone of progress, equity, and sustainable development, serving as a beacon of hope for a brighter and more inclusive future. However, ensuring equal access to education for all still remains a challenge in our society and various Non-government organizations are working hard to bridge this gap and ‘Child Nurture and Relief Kashmir (CHINAR Kashmir) is one such organization. The organization was established in 2004 with a mission to support orphans, destitute children, women, and youth in Jammu & Kashmir. CHINAR Kashmir operates several innovative programs aimed at the social and economic upliftment of women and youth, ensuring familial care and education for destitute children, and offering material support to families in need. In addition to their core programs, they have been deeply involved in disaster relief and rehabilitation efforts in Kashmir since 2004.

CHINAR Home Programme is a facility run by the organization since 2004 for orphaned and destitute children in their hostel in Khanpora Budgam to provide care and support to children who have lost their parent(s). These destitute and orphan children mostly belong to the rural areas of Kupwara, Bandipora, Budgam, Kishtawar & Kulgam and are taken care of in a familial environment by CHINAR. The children are provided quality education in good private schools besides in-house tuition and all their expenses are borne by CHINAR including the transportation of children to and from the schools. J&K Bank provided support to CHINAR Kashmir for one school bus and four smart classes to be established at the hostel. The project is also in line with the Sustainable Development Goal 4 which aims to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all. This goal supports the reduction of disparities and inequities in education, both in terms of access and quality.

C. Skill Development & Livelihood Generation

SDG 1 –"End poverty in all its forms everywhere" SDG 8 – "Decent work and economic growth"

1. Upgrading Infrastructure of Rural Self-Employment Training Institutes (RSETIs)

JKBRSETI Society is running 12 RSETIs in 12 Districts of the UT of J&K, providing the necessary skill and re-skill development programmes/trainings to unemployed youth especially in rural areas. Every year, over 4000 unemployed youth get training from these 12 RESTIs in varied fields. RSETIs provide a suitable training environment and a well-equipped training facility which is of great importance to meet the desired goals.

In order to construct the new RSETI buildings, improve the existing facilities and widen the scope of the trainings, CSR support to JKBRSETI Society was provided for:

Construction of RSETI building at Poonch and Shopian

Water purifiers, printers and salon chairs to all the 12 RSETIs

2. Homestay Entrepreneurship Training Programme in collaboration with SIDBI (Small Industries Development Bank of India)

The scope for tourism in Kashmir is immense and with increasing interest in exploring off-beat destinations, Homestay Tourism is emerging as a solution for having basic accommodation services at cheaper rates throughout the geography. Keeping that in view, J&K Bank, in collaboration with SIDBI and their technical partner KPMG & implementing agency ‘JKDAG, undertook a project for developing six off-beat tourist destinations by training 150 locals for establishing Homestays thereby serving the dual purpose of livelihood generation and tourism promotion.

The project was conceived with a vision to create a larger socio-economic impact as the initiative not only helped in up-skilling the stakeholders but also generate livelihood opportunities in J&K. The project highlights include:

A 21-day classroom training and 7-day practical training to 150 aspiring/interested trainees with a focus on operating and managing the homestay business, developing the entrepreneurial skills, digital/financial literacy, customer handling, soft skills and modules like housekeeping, food and beverage service, food and beverage production, front office management, digital marketing, fiscal management, opportunities of and approach to credit linkage, etc.

Assessment and Certification of trainees by Tourism and Hospitality Sector Council (THSC), a regulatory body for providing training and assessment for the tourism and hospitality sector.

Registration with Department of Tourism, E-profiling, and Creation of a Digital catalogue for successful trainees.

3. Entrepreneurship-cum-Skill Development Programme in collaboration with the (NIESBUD) Ministry of Skill Development and Entrepreneurship, Govt. of India

In yet another endeavour to address shortage of skilled manpower with a larger objective of meeting the mounting needs and demands of the economy, J&K Bank collaborated with NIESBUD (National Institute for Entrepreneurship & Small Business Development), Ministry of Skill Development and Entrepreneurship, Govt. of India for a joint intervention on an Entrepreneurship cum Skill Development Programme (ESDP) in Jammu and Kashmir. The project saw 300 youth in both Jammu and Kashmir regions being trained for undertaking entrepreneurial journey.

The project highlights include;

Capacity Building of 300 participants on Entrepreneurship Development

Linking up 100 participants with suitable wage employment

Mentoring and Handholding Beneficiaries resulting into establishment of 10 Nano and Micro Enterprises

Extended Mentoring and Handholding Support to established enterprises for 2 years through post mentoring support to Provide Escort Services for the beneficiaries to guide them periodically to ensure successful establishment of their Business Ventures and scaling up businesses.

Scaling up of 05 existing Enterprises

4. Entrepreneurship-cum-Skill Development Programme in collaboration with the NIESBUD, Ministry of Skill Development and Entrepreneurship, Govt. of India (in Ladakh)

Bank undertook a project in collaboration with NIESBUD (National Institute for Entrepreneurship & Small Business Development), Ministry of Skill Development, Government of India launched a separate Entrepreneurship cum Skill Development Programme (ESDP) in Ladakh to strengthen the skill development ecosystem in Union Territory. The collaboration saw 100 youth from the region (50 each in twin districts of Leh and Kargil) being trained/ skilled/ up-skilled. The programme highlights include:

Capacity Building of 100 participants on Entrepreneurship Development

Linking up 50 participants with suitable wage employment

Mentoring and Handholding to Beneficiaries resulting into establishment of 5 Nano and Micro Enterprises

Scaling up of 03 existing Enterprises.

5. Livelihood generation project through walnut plantation in Kishtawar

Corporate Social Responsibility (CSR) interventions in the field of ‘livelihood generation have had a transformative impact on communities by contributing towards their social and economic development. The initiatives extend beyond philanthropy, as they address the root causes of poverty by fostering self-sustenance. The instant project aimed to uplift the economic status of 100 socially / economically backward families in Kishtwar District by assisting them to establish mini-orchards of walnut on their lands. Implemented by ‘Sewa Bharti Jammu, the plantation helped create local livelihood opportunity for the families and break the vicious cycle of poverty in the region and improve their economic status by helping them establish a sustainable source of income.

Such initiatives empower local communities to cultivate orchards, creating a renewable source of income and improving overall livelihoods. Beyond economic benefits, these projects contribute to environmental sustainability as trees enhance biodiversity and promote ecological balance. CSR initiatives centered on fruit tree provision exemplify a commitment to social and environmental responsibility, demonstrating how businesses can play a crucial role in fostering long-term, positive impacts on livelihoods while simultaneously contributing to the well-being of the planet.

D. Community Development/Welfare

1. Support to Life Help Centre for Child Care – a school for specially-abled children ‘Life Help Centre for Child Care, a Srinagar based not-for-profit organization established in the year 2008 with the objective of working towards the welfare of special-children, was provided various items/equipment required for the care and therapy of the special-children. The Banks support will benefit around 35 special children, enrolled in the facility, suffering from various mental and genetic disorders like hearing, speech & visual impairment, cerebral palsy, autism, Downs syndrome etc. The items provided include:

Occupational therapy equipment

Surveillance setup

Swings and games

Cerebral Palsy Chairs and machine

Music system

Inverter and battery

Exercise equipment

2. Upgrading the facilities of orphanages, institutes for specially-abled children and old-age homes run by Department of Social Welfare J&K

Caring for orphans and specially-abled children is of paramount importance in society. These are among the most vulnerable, often lacking the support and resources that others may take for granted. Providing them with proper care, attention, and opportunities is not just a moral obligation but also crucial for their well-being and development. Caring for them not only meets their basic needs but also nurtures their self-esteem and confidence, enabling them to lead more fulfilling lives.

Apart from being a moral imperative, setting up special facilities for these children is a key aspect of providing adequate care to this vulnerable section of the society. These facilities cater to the specific needs of the beneficiaries, whether its accessible infrastructure, specialized education, or tailored healthcare services. Such facilities also create a safe and inclusive environment where these children can thrive, learn, and grow.

To contribute in this sector, Bank joined hands with Department of Social Welfare of Jammu and Kashmir to provide certain amenities and augment the existing infra-structure of their special-care institutions be it orphanages, special schools, juvenile rehab homes or senior citizen homes by providing funds for:

Open gym/recreational items for facilities at Jammu and Srinagar orphanages/special schools

Two computer labs, one each at Srinagar and Jammu orphanages

Braille printer (with software) for special-children of residential school for blinds at Jammu

Recreational items for day-care old-age homes at Srinagar & Jammu

3. Dustbins to DC office Srinagar

Corporate Social Responsibility (CSR) interventions play a pivotal role in promoting environmental sustainability and civic hygiene. By incorporating responsible waste management practices into the CSR initiatives, socially-responsible corporates contribute to the creation of cleaner and healthier communities. Proper waste disposal and segregation mitigates the adverse impact of indiscriminate littering on ecosystems and public health. Through such interventions, Bank has always demonstrated a commitment to social and environmental well-being and contributed towards broader societal goals. By actively engaging in the provision of dustbins, CSR initiatives become a tangible embodiment of corporate responsibility, fostering a positive and sustainable impact on local environments and communities.

Bank in the FY2023-24 provided dustbins to D.C Office Srinagar for the convenience of the public visiting the office every day. The activity, apart from promoting cleaner and hygienic environment also contributes towards community development.

4. Construction of Fish Sale Outlet at Aspirational District Kupwara

Kupwara is one of the 117 Districts chosen by NITI Aayog under the ambitious National Level Aspirational District Programme launched by the Prime Minister Narendra Modi in January 2018. The Aspirational District Programmes aims to quickly and effectively transform these most under-developed districts across the country. With States as the main drivers, this program focuses on the strength of each district, identifying low-hanging fruits for immediate improvement and measuring progress by ranking districts on a monthly basis. Kupwara being a remote, border district has traditionally seen slow pace of development and demands Banks attention. Pertinently, the backwardness of the district is the very reason that Kupwara has been identified by NITI Aayog as one of the Aspirational District.

District Administration Kupwara, under the auspices of the Aspirational District Programme, had identified a wide range of projects/ initiatives that are of vital importance for overall development of the district, particularly in Health, Education and Agriculture and allied sectors with construction of a Fish Sale outlet as one of the projects. The Sale Outlet will give a needed push in harnessing potential of Fisheries to evolve as a sub-regional economy of the area, the benefits of which will percolate to the common public of the district at large.

J&K Bank collaborated with Aspirational District Administration for construction of the Fish Sale Outlet with an aim to localize Sustainable Development Goals leading to the progress of the District and the Nation.

5. Community development program of ST Village at Ganderbal

Supporting socially and economically underprivileged sections of the society crucial for fostering inclusive development and societal harmony, Kashmir, marked by its diverse demographics, faces challenges related to economic disparities and social inequalities. By extending support to backward categories, which may include marginalized communities and individuals facing economic hardships, there is an opportunity to bridge the gap and ensure that development initiatives reach all sections of the population. Initiatives aimed at empowering such communities not only enhances their socio-economic status but also contributes to the overall progress of the region by promoting a sense of inclusivity and social justice along with strengthening the foundations of a more equitable society.

Bank, in the FY2023-24, extended support to over 1000 households belonging either to ST Community/ Priority Households by providing them sustainable lighting solutions. Each of the over 1000 households were provided with a solar-lantern thereby catering to multiple aspects of the community which includes promotion of sustainable energy solutions and helping the community to avoid unhealthy & pollution causing means of lighting. The project was implemented by ‘Mool Sustainability and Research Centre.

6. Seating Benches to various institutions

Utility of seating benches in public spaces like court complexes & district administrative offices especially in the waiting spaces is of great value in terms of providing comfortable seating facilities to public/ litigants visiting these offices. The benches while being available to all prove of immense benefit to the women and specially-abled persons, especially in light of the fact that litigations and court cases are hectic and time consuming, and availability of comfortable seating arrangement can act as a great relief.

Similarly, the facility is of great importance in educational institutions for the convenience of students. Proper outdoor seating places help students to improve social interaction & networking and provide informal learning spaces along with enhancing campus aesthetics.

It is with this understanding that Bank, in the FY2023-24, provided seating benches to various institutions which include:

District Court Samba

Jammu Universitys Kathua Campus

University of Jammu Main Campus

District Court Srinagar

D.C Office Doda

The sheer number of prospective beneficiaries of the initiative will be in thousands annually and the initiative reiterates Banks resolve of being a socially responsible corporate.

E. Ecology & Environment

SDG 11 - "Make cities and human settlements inclusive, safe, resilient, and sustainable" SDG 13 - "Take urgent action to combat climate change and its impacts" SDG 17 - "Strengthen the means of implementation and revitalize the global partnership for sustainable development"

1. E-Vehicles to key educational institutions under Banks Green Campus initiative

Conscious of the importance that green and clean ecosystem has on the overall sustainability of life, Bank has been encouraging green sources of energy both in its operations and through innovatively conceived projects under Corporate Social Responsibility. With this understanding and context, Bank under its ambitious Green Campus initiative provided e-vehicles to:

Central University of Jammu

Baba Ghulam Shah Badshah University Rajouri

University of Jammu, and

National Institute of Technology, Srinagar The initiative will benefit more than 15000 students and staff members of these prestigious educational institutes while contributing towards reducing carbon emissions in the campuses of these institutions.

2. Development of Modern Bus Stops/ Passenger Sheds for Srinagar & Jammu Smart City Electric Bus Projects

Srinagar and Jammu are being developed as the two Smart Cities in the UT of J&K and both the cities have been actively working on their Smart City projects to enhance urban infrastructure and services. The Smart City proposals include initiatives to improve transportation, solid waste management, water supply, and e-governance, among other aspects. The projects aim to leverage technology to enhance the overall quality of life for its residents, promote sustainable development, and create a more efficient and responsive urban environment. Implementation of smart solutions, such as intelligent traffic management systems, integrated surveillance, and the use of information technology for citizen services, is expected to contribute to the cities development as smart and resilient urban centres.

With multiple projects in pipeline, the two Cities are currently, among other projects, implementing the Electric Bus Project. The e-buses, apart from being an eco-friendly alternative for commute, are equipped with state-of-the-art facilities for passengers which include heating and cooling system for the weather needs of the city (being introduced for the first time in India), wheelchair accessibility for disabled by way of foldable-mechanical ramps, digital payment option for ride booking and real-time bus tracking though mobile application which also shows the bus routes.

Embracing e-buses aligns with the global trend towards sustainable and environmental friendly practices. Cities promoting electric public transportation projects demonstrate a commitment to sustainability, which positively impacts the public image and attractiveness. It also correlates with the preferences of environmentally conscious citizens and contributes to the global ESG goals. J&K Bank collaborated with the twin Smart Cities for development of Bus stops/Passenger Sheds for the E-Bus project in Jammu & Srinagar.

F. Rural Development

SDG 2 - "End hunger, achieve food security and improved nutrition and promote sustainable agriculture".

1. Supporting Agriculture Production Departments (APDs) "Kisan Sathi Chatbot" (an AI enabled virtual assistant for farmers)

To tackle various challenges faced by our farming community, the Government has devised a comprehensive strategy comprising 29 projects under the "Holistic Agriculture Development Programme (HADP)". These initiatives center on the principles of economy, equity, and ecology, aiming to double gross output, enhance exports, and establish sustainable and commercially viable enterprises. This aspirational program spread across agriculture & allied sectors aims to increase the CAGR of J&K to 11% in five years by transforming the agri-economy. Agriculture Production Department have developed a ‘virtual assistant for farmers with an aim to empower them with a wide array of available information regarding farming methods, schemes & subsidies, cropping systems, tools & technologies, innovations, pricing, marketing, post-harvest management etc. The Artificial Intelligence-based WhatsApp Chatbot called the "Kisan Sathi Chatbot" aims to address the information gap between information and the end-user by directly providing chat support to farmers on their mobile phones and answer the questions related to all the aforesaid aspects of farmers & farming.

J&K Bank collaborated with APD to fund the Chatbot to not only promote improved & sustainable farming practices but also to help in the training and skill development of farmers, enable access to farming technology, promote livelihood diversification, help farmers in credit & market linkage and overall value addition of their crops which aligns with the broader goal of contributing to sustainable development and addressing social and environmental challenges.

G. Promotion of Sports

SDG 3 – "Good health and well-being"

1. J&K Bank Football academies

J&K Bank, has, over the decades, taken varied and substantial initiatives to promote sports culture in J&K. Football being a popular game – played, watched and appreciated locally, nationally and internationally - has always assumed primary focus of the Bank. After having established its own football team, the Bank set up two football academies almost a decade ago, one each in Jammu and Srinagar with the purpose of promoting football culture in J&K by way of encouraging, nurturing and training budding talent. Around 20 players are selected every year in each of the two academies for professional training through qualified and professional coaches. J&K Bank Football Academy has so far produced scores of players including more than 44 professional players who are playing today for different departmental and professional clubs of the country with some even having played for international clubs.

Bank in the FY2023-24 provided support to the Football Academies under Corporate Social Responsibility.

H. Promotion and Preservation of Art, Culture & Heritage SDG 4 – "Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all"

1. Establishment of Shina Cultural Centre at Dawar Gurez With its deep-rooted history connected to Dardistan, the unique Shina language, the rich treasure of culture and tradition, Gurez holds an exceptional identity. However, like other cultures, the socioeconomic advancements have led to the neglect of the Shina Language and Culture. Rising up to the occasion, Indian Army took a significant initiative to establish Shina Cultural Centre in Dawar Gurez with an aim to promote and safeguard the culture and language of the Dard tribe. Conscious of the need to preserve and propagate this great cultural legacy, Bank collaborated with Indian Army by way of extending financial assistance to the tune of Rs.10.00 Lac out of CSR Fund for establishment of the Shina Cultural Centre.

I. Animal Welfare

1. Animal ambulance to Narsingh Gao Seva Samiti, Kathua

Animal rights are of paramount importance in fostering a compassionate and ethical society. Recognizing and upholding the rights of animals acknowledges their intrinsic value and inherent worth, irrespective of their utility to humans. Ensuring the well-being of animals encompasses safeguarding them from cruelty, exploitation, and unnecessary suffering. Advocating for animal rights not only upholds principles of justice and empathy but also acknowledges the interconnectedness of all life on Earth. Moreover, promoting animal rights contributes to environmental conservation and sustainable practices, as the welfare of animals is closely linked to the health of ecosystems and fostering a harmonious relationship between humans and other species will pave the way for a more compassionate and sustainable world for present and future generations.

In this context, Bank provided one animal ambulance to ‘Shri Narsingh Gao Seva Samiti, Kathua in FY2023-24.

SNGSS has been running and maintaining the Narsingh Gaushala for the past decade with the primary objective of providing medical care to the injured cows by bringing them to the Gaushala for medical care who otherwise suffer on the roads. The organization rescues the deserted cows from accident sites & other locations for proper treatment and care at their facility. The ambulance has enabled them to ensure proper, safe and swift transportation of these injured animals allowing them to do their work in an efficient and effective manner.

J. Welfare of war veterans and their families

1. Welfare of war veterans and dependents of Army/ Navy/Air Force Martyrs

Sainik Bhawans and Sainik Offices in Kashmir and Jammu working under the aegis of Sainik Welfare Department, J&K, are looking after the welfare of around 350000 Ex-Servicemen/Widows/War Widows/War Maata/Pita and their families across J&K. J&K Bank, as a conscious corporate committed to the welfare of this important and proud segment of our society, took various steps to upgrade the facilities available at these spaces. The facilities include:

Increased security/surveillance at these Bhawans through installation of CCTV cameras

Improving the basic residential facilities available to the families/ dependents of the Sainiks like beds, bed sheets, pillows, blankets, mattresses, curtains, dining table/ chairs, bulbs, garden benches, tea machine, water tanks, buckets/tumblers etc.).

Wheelchairs for divyaang ex-servicemen or dependents of martyred soldiers/ ex-servicemen.

Tabs, Laptops and Bio-metric devices for the Jeevan-Pramaan process/activity which aims at providing door-step life-certification of army/navy/air-force pensioners (8247 in Kashmir and 87000 in Jammu).

Additionally, an Automatic Voltage Regulator was provided to the District Sainik Office Kupwara to help the office generator effectively respond to overloads.

Awards & Certifications received by the Bank during FY23-24

J&K Banks 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^thAgriculture Leadership Conclave 2023.

Prestigious ‘Times Now Indias 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 (1st 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.

HR initiatives for the Financial Year 2023-24

In todays dynamic business environment, human assets differentiate an organization from its competitors. Understanding the vital role played by the motivated manpower in nurturing the organisation, it has remained our major priority to continuously improve employee efficiency, performance and strive to institutionalise globally competitive HR practices in the Bank.

As employees are our first customers, we constantly strive to improve overall processes, systems and infrastructure. Ensuring the highest degree of ease and transparency, the HR processes are mainly managed through the technology. To use HR data proactively and assure lucidity, HR system is managed through a robust HRMS viz., Peoples system, a centrally occupied tool for managing internal HR functions. Another HRMS tool SOLUS is in place to manage Centralized Attendance system.

The Bank has rolled out a KPI Based Performance Management System (PMS) across the Organization as one of the HR Transformation Initiatives launched in Financial Year 2022-23, which has been further streamlined in the year 2023-24. The new KPI based appraisal System is envisaged to quantify and measure the organizational goals and establish the bar in terms of the specific deliverables employees will produce and provide a means to measure the effectiveness and outcomes of their efforts. The HRMS solution of the Bank has also been upgraded, which has resulted in end to end automation of major HR Processes. The Bank has also implemented a cloud based ‘Learning Management System which has substantially strengthened the ‘e-learning infrastructure of the Bank.

Under the Banks Compassionate appointment policy, 2 Banking Attendants and 3 Assistant Banking Associates were appointed in the services of the Bank during FY 2023-24.

In the FY 2023-23, revised ‘Compensation Policy, ‘Mandatory Leave Policy, ‘Policy on funding of defined benefits superannuation schemes and ‘Succession Policy have been approved by the Board.

During the period, the Bank has conducted training modules through online/offline training classes/ sessions/workshops etc. Around 6222 officials have been imparted training in different banking related fields.

Under RBIs Capacity Building Programme, several courses have been enlisted in order to develop a resource pool in critical areas viz. Risk, Forex, Treasury etc. A good number of officials of the Bank have been enrolling for these courses and subsequent to completion of any of these courses, actual fee is reimbursed in favour of successful officials, besides travelling allowance and classroom/training fee is also borne by the Bank wherever applicable.

During the year 2023-24, the Bank introduced various new initiatives to further improve the efficiency of the trainings imparted by the bank. Some of these are enumerated as under:

i) Specialist Guest faculties from various reputed Institutions were requisitioned for conducting specialized training programmes at Banks own Staff Training Colleges/Zonal Offices. Few such programmes conducted are as under:

Five programmes on Marketing Strategies (two each at STC Jammu & Srinagar) was conducted in collaboration with NIBSCOM in the month of Aug and Sep.

Two Days Workshop on Investigation were conducted at STC Srinagar, on Aug 24 & 25, faculty for which was invited from IIBF.

Five Days programme on "Foreign Exchange Business" was conducted in Collaboration with FEDAI from Sep 18 to 22, 2023, at Zonal Office Delhi

Seven Days Treasury Orientation Programme was conducted in Collaboration with SIFL from July 27 to Aug 04, 2023 at Zonal Office Mumbai.

Advanced programme on Strategic Leadership for Top Management was conducted jointly by ‘IIBF & ‘Jamnalal Bajaj Institute of Management Studies. 25 top level executives including 12 General Managers and 13 Deputy General Managers participated in the programme.

In an endeavour to bring in transformational change in the Attendance system, the Bank upgraded it Biometric Solution to the latest version with contactless, Facial Recognition System. The transition is aimed to enhance efficiency and accuracy in capturing the attendance of employees, besides facilitating seamless integration with other systems. The Bank is in the final phase of procuring a GPS enabled ‘Geo fencing based mobile attendance application/solution, which shall enable the roaming or field staff to mark their attendance at one or more approved locations.

Risk Management

Banks risk management framework is based on a clear understanding of various risks, disciplined risk assessment and measurement procedures and continuous monitoring. An independent risk management function ensures that risk is managed through a risk management architecture as well as through policies and processes approved by Board of Directors. The key risks that the Bank is exposed to are Credit Risk, Market Risk, Liquidity Risk and Operational Risk. These risks not only have a bearing on the Banks financial strength and operations but also on its reputation. Bank has in place Board approved Risk Strategy / Policies whose implementation is overseen by Board of Directors of the Bank.

The Board of Directors has oversight on all the risks assumed by the Bank and approves the risk policies and strategies to establish an integrated risk management framework and control system in the Bank. The Integrated Risk Management Committee (IRMC), a board level committee entrusted with the overall responsibility of ensuring that the adequate structures, policies and procedures are in place for risk management in the bank. The day-to-day assessment, measurement and monitoring of various risks is managed by the Risk Management Vertical, which is headed by the Chief Risk Officer (CRO). The CRO reports to the IRMC of the Board. The CRO is responsible for ensuring an effective implementation of an enterprise-wide risk management framework through various risk policies, processes and limits.

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. The Bank continues to focus on improving its risk measurement systems including automation of the processes wherever feasible to ensure compliance of regulatory requirements as well as bringing efficiency in the risk management framework.

The risk management policies and procedures established are updated on continuous basis and benchmarked to best practices. The Bank has successfully implemented Basel norms since its introduction. Under this, it has adopted the ‘Standardized Approach for measurement of Credit Risk capital, ‘Basic Indicator Approach for Operational Risk capital and ‘The Standardized Duration Approach for Market Risk capital. The Bank has a robust risk management framework, which is geared to support the strategic objectives and business plans of the Bank.

The Integrated Risk Management Committee (IRMC) of the Board reviews risk management policies of the Bank pertaining to credit, market, liquidity, operational & Pillar II risks that includes strategic risk and reputational risk, and stress testing. The IRMC of Board is assisted by the Executive Committees (CRMC, ORMC, MRMC & ALCO) by review of policies for different risk categories that have a material bearing on the bank. These committees anticipate vulnerabilities in business & embedded risks for management, monitoring & control of these risks.

Credit Risk Management:

Credit Risk "defined as the possibility of losses associated with diminution in the credit quality of borrowers or counterparties, losses that stem from outright default or reduction in portfolio value" is comprehensively managed by the Bank with distinct credit risk architecture, policies, procedures and systems in place.

The credit risk management policy of the Bank provides framework for credit risk management and embodies in itself the areas of risk identification, risk measurement, risk grading techniques adopted by the Bank, documentation practice and the system adopted for management of problem loans. The credit risk policy deals with short term implementation as well as long term approach to credit risk management to achieve desired business goals. The credit policy provides clear and well defined delegation of loan sanctioning which links risk and exposure amount to level of approval. Segment-wise and borrower category-wise exposure limits are fixed and monitored by the bank to address the risk of concentration.

The Banks credit risk management structure with Integrated Risk Management Committee (IRMC) of Board at the apex level and Credit Risk Management Committee (CRMC) at the executive level is responsible for overall credit risk management in the Bank. The committees periodically review the credit risk profile, evaluate the overall risk faced by the Bank and develop policies and strategies for identifying and managing credit risk at individual exposure level as well as portfolio level in sync with the banks credit risk policy designed in accordance with regulatory guidelines.

The appraisal process encompasses a detailed risk assessment and rating of obligors, using the Banks rating models to measure credit risk that forms core of the credit risk management process. Comprehensive credit approval processes by committees followed by post-sanction monitoring processes and remedial measures are steps followed to minimize delinquencies. For managing legal risks Bank has standard documents for various types of credit products for ensuring legal compliance of applicable laws and ensuring that the documentation entered into by the Bank is legally valid and enforceable.

Credit audit system and loan review mechanism function independently of the credit processing and credit approval system and ensure effective loan monitoring and management of credit risk and operational risk in the loan portfolio.

Capital requirements for Credit risk are derived using Standardized Approach as per Basel-III guidelines.

Operational Risk Management:

The Operational Risk Management process of Bank is driven by a strong organizational culture and sound operating procedures that involves corporate values, competencies, comprehensive system of internal controls and contingency planning. The Bank has implemented a robust and comprehensive Operational Risk Management Framework in sync with Board-approved Operational Risk Management Policy to identify, assess and monitor risks, strengthen controls and minimize Operational Risk losses.

Integrated Risk Management Committee (IRMC) of Board at the apex level and Operational Risk Management Committee (ORMC) at executive level are responsible for the implementation of the Operational Risk framework of the Bank and the management of operational risks across the Bank. Policies have been put in place for effective management of Operational Risk in the Bank, which aim to ensure clear accountability, responsibility and mitigation of operational risks. The Bank follows self-assessment programs for risk analysis and risk reducing measures. The Integrated Risk Management Committee (IRMC) approves the major aspects of the Banks Operational Risks while the Operational Risk Management Committee (ORMC) periodically reviews the Operational Risk Management (ORM) Policy and associated frameworks that include Loss data management, Key Risk Indicators and Risk Control & Self-Assessment.

The Bank has a robust Business Continuity plan that ensures uninterruptable operations in case of disruption and is periodically tested to ensure that it can meet any operational contingencies. Banks Board has the ultimate responsibility and oversight over BCP activity. The Board approves the Business Continuity Policy of bank. Senior Management is responsible for overseeing the BCP process. Banks Board and Senior Management ensures BCP is independently reviewed and approved at least annually.

There is an independent Information Security department headed by Chief Information Security officer (CISO) that addresses information security related risks and ensures employee sensitization exercises. CISO reports to the Chief Risk Officer (CRO) of the Bank.

The Bank has Whistle Blower mechanism in place which inter alia defines the governance, roles & responsibilities of various officials/ officers from branch to the Board level, besides putting in place various controls for preventing fraud incidents and detecting frauds in an effective way. The central vigilance team oversees implementation of fraud prevention measures. Frauds are investigated to identify the root cause and relevant corrective steps are taken to prevent recurrence. Fraud prevention committees at the senior management and Board level also deliberate on material fraud events and initiate preventive action. Periodic reports are submitted to the Board and senior management committees.

Capital requirements for Operational risk are derived using

Basic Indicator Approach.

Liquidity Risk:

Asset-Liability Management (ALM) is a comprehensive and dynamic framework for measuring, monitoring and managing the financial risks associated with changing interest rates, foreign exchange rates and other factors that can affect the organizations liquidity. Proper Asset Liability Management is necessary for a bank for managing balance sheet risk, especially liquidity risk and interest rate risk, so as to maximize its net interest earnings. Banks framework for liquidity and interest rate risk management is spelt out in its Asset Liability Management Policy that is implemented, monitored and periodically reviewed by the Asset Liability Committee (ALCO). The Asset-Liability Management Committee (ALCO) is a decision making unit consisting of the banks top management, responsible for ensuring adherence to the risk tolerance / limits set by the Board as well as implementing the liquidity risk management strategy of the bank in line with banks risk management objectives and risk tolerance. ALCO is headed by MD & CEO of the Bank.

As a part of ALM process, the Bank has established various Board approved limits to mitigate both liquidity and interest risks. While the maturity gap and stock ratio limits help manage liquidity risk, the net interest income and market value impacts help mitigate interest rate risk. This is reinforced by a comprehensive Board approved stress testing programme covering both liquidity and interest rate risk. Bank conducts various studies to assess the behavioral pattern of non-contractual assets and liabilities and embedded options available to customers, which are used while managing maturity gaps. Further, the Bank also has necessary framework in place to manage intraday liquidity risk.

The Liquidity Coverage Ratio (LCR), a global standard, is used to measure banks liquidity position. LCR seeks to ensure that the Bank has an adequate stock of unencumbered High Quality Liquid Assets (HQLA) that can be converted into cash easily and immediately to meet its liquidity needs under a 30day calendar liquidity stress scenario.

Net Stable Funding Ratio (NSFR) supplements the LCR and has a time horizon of one year. It has been developed to provide a sustainable maturity structure of assets and liabilities. NSFR would ensure that bank has a stable funding profile vis-a-vis its assets and off-balance sheet activities.

Market Risk Management:

The market risk management is governed by Market risk policy of the Bank. A well-defined Market risk management framework is in place to assess and minimize risks inherent in treasury operations through various risk management tools. In addition to various regulatory limits, Bank has defined various internal limits like Net Overnight Open Position, Modified Duration, Stop Loss, VaR Limits, PV01 Limit, and Concentration & Exposure Limits and ensures adherence thereof on continuous basis for managing market risk in trading book of the Bank. These limits are stipulated in Market Risk Policy, Investment & Trading Policy, Asset Liability Management Policy, etc. All these policies are reviewed and approved by the Banks Board of Directors. For the Market Risk Management of the Bank, there is a functional separation between the Treasury Front Office, Mid office and Treasury Back Office.

The Bank currently follows the standardised approach for computation of market risk capital on interest rate related instruments in the trading book, equities in the trading book and foreign exchange risk for its trading portfolio.

Pillar II Risks:

The Bank has a structured framework in the form of Internal Capital Adequacy Assessment Process (ICAAP) to assess capital position vis-a-vis identified risks and also the future capital requirement of the Bank. ICAAP is to identify, assess and manage all risks that may have a material impact on business / financial position / capital adequacy and ensure that a bank is aware of its risk profile and has systems in place to assess, quantify and monitor these risks. One of the objectives is to determine the economic capital required to cover all risks faced. While Regulatory Capital is the capital that the regulator requires a bank to maintain, Economic Capital is the capital that a bank needs to maintain and is, in general, estimated using internal assessment of all the risks including residual risks. Additionally, the Board approved Stress Testing Policy entails the use of regulatory specified & internal scenarios to assess potential vulnerability to extreme but plausible stressed business conditions. The ICAAP document addresses the following issues: market share of the Bank. b) Changes in the Banks risk levels based on on/ off balance sheet positions assessed under assumed scenarios using sensitivity factors that generally relate to their impact on profitability and capital adequacy. c) Identification and assessment of all types of material risks, capital requirement thereof and capital position under stress scenarios.

The Bank has a stress testing policy in place to measure impact of adverse stress scenarios on the adequacy of capital. Periodic stress testing is undertaken on portfolio to gauge the impact of stress scenarios on the health of portfolio, profitability and capital adequacy. The stress scenarios are idiosyncratic, market wide and a combination of both. Stress testing enables a Bank in forward looking assessment of risks, which overcome the limitations of statistical risk measures or models based mainly on historical data and assumptions. It also facilitates internal and external communication and helps senior management understand the condition of the Bank in the stressed time. Stress testing forms an integral part of the Internal Capital Adequacy Assessment Process (ICAAP), which requires banks to undertake rigorous, forward-looking stress testing that identifies severe events or changes in market conditions that could adversely impact the Bank.

a) Capital Planning and Management considering the material risks faced by the Bank and future capital requirement of the Bank basis growth strategies, macroeconomic environment and

Ratings:

Banks rating for its fixed deposits and Tier II Bonds (Basel III Compliant) assigned by RBI accredited rating entities is as follows:

Instruments	Rating	Rating Agency	Comments
Certificate of Deposit Programme	CRISIL A1+	CRISIL	Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit risk.
Short Term Fixed Deposit Programme	CRISIL A1+	CRISIL	Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit risk.
Fixed Deposit Programme	AA-	CRISIL	This rating indicates that the degree of safety regarding timely payment of interest and principal is strong.
	IND A+	India Ratings	Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
Tier II Bonds (under Basel III)	BWR AA-	Brickwork	Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
	Care A+	Care Rating	Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
Additional Tier 1 Bonds (under Basel III)	BWR A	Brickwork	Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instrument carry low credit risk.

Marketing & Product Development:

The banking industry, being associated with financial services, operates in a dynamic environment that poses a variety of challenges, compelling it to remain proactive in redesigning and re-engineering itself to remain relevant and competitive. The mushroom growth of NBFCs and other organized private lenders have triggered a paradigm shift in lending processes, more so for personal loans. Thus the banks need to constantly update their existing offerings as well as come up with new products to suit the existing market segments as well as to penetrate new markets. In this backdrop, new product development and updation of existing products assumes utmost importance in the banking sector. Keeping abreast with the evolving trends in banking industry, Bank has put in place a Board approved Product Development and Approval Policy which delineates the framework for introduction of new products & review of existing ones in order to make them inclusive, responsive and market oriented.

The banking industry, like any other service industry has to focus more on service delivery, as it heavily contributes to service quality. Majority of the banks have shifted their service delivery from physical branches/ channels to virtual branches/ digital changes. On this account, vast branch network and deep geographical penetration which was earlier considered a huge competitive advantage is probably not relevant any more. Thus product development, in addition to routine product features, focuses on ease of processing of service requests, simplicity of processing, promptness of delivery, safety , security and likewise. Customer centric and customer friendly behavior of staff assumes paramount importance to customer satisfaction and customer delight, thus training and development of staff to improve their communication and presentation skills needs added emphasis.

J&K Bank has a vast bouquet of specially designed products under MSME, Trade, Personal Loan Segment, Industry, Handicrafts, Tourism, Agriculture, Micro Finance, Education and other Service Sectors with enhanced focus on UTs of J&K and Ladakh. These products are customized and tailor made to suit the specific requirements of target groups.

The personal consumption loan scheme is a flagship product of the bank having wide acceptance in UTs of J & K and Ladakh. The product features are designed in such a manner so that they suit the needs of almost all the sections of society thereby making this product more inclusive, and the Bank has so far been successful in covering a vast segment of customers under the product. Housing Loan, Car Loan, Solar roof top Finance, Loans for purchase of Consumer Durables, Loan against property and Festival Advance are other key products under personal segment. Majority of the vehicle loan schemes like Car Loan Scheme, Commercial Vehicle Finance Scheme, Two wheeler finance schemes have been reviewed to make them more competitive and marketable.

Under the Agriculture Sector, Bank has continued its endeavor to launch special campaigns for 100% coverage of PM-Kisan Beneficiaries under Kisan Credit Card (KCC) and a vast section of population has benefitted from the scheme. Besides Bank launched a KCC saturation campaign titled "Ghar Ghar KCC" to extend this facility to left out agriculture community. Bank is committed in supporting the creation of Agri-infrastructure such as CA Stores and other food processing units and establishment of sheep, dairy and poultry units. Bank is whole heartedly implementing various Government Sponsored Schemes like Integrated Diary Development Scheme (IDDS), Integrated Sheep Development Scheme (ISDS), Integrated Poultry Development Scheme (IPDS), PMFME, Agri-Infra Fund Scheme etc. Besides bank has launched Holistic Agriculture Development Fund scheme to finance various projects in agri sector.

Bank is playing vital role in ensuring credit flow to MSME Sector in the UTs of J&K and Ladakh; and special attention is being paid to handholding of the sector in line within the regulatory framework. The banks schemes for business community are regularly updated to align them with the market demands. Besides, the Bank also implements various flagship schemes of Government like PMEGP, JKREGP, PM SVANidhi, Mission Youth Schemes.

In order to ensure that products and strategies of the bank are competitive and market oriented, the feedback and suggestions of various stake holders, as received during review meetings or through other channels are duly considered at the time of product revision or designing business strategies. Besides the prototype of revised or newly introduced products is shared with key stake holders for necessary validation/ value addition before routing them for formal approval.

As a part of marketing and in order to provide customers with special discounts on occasions of festivities, the Bank launched many Business Promotion campaigns/ Festive offers during the FY 2023-24. Various concessions/ relaxations under specified schemes featured in these campaigns which have been of considerable help in augmenting our retail credit portfolio.

Bank is imparting added focus on providing innovative digital financial services through interactive and secure Technology to its customers which shall enable virtual interaction with them without losing human touch. Besides, bank is now migrating loan appraisal, sanction and disbursement to digital platform as well, so as to reduce TaT, improve efficiency and ensure prompt and hassle free credit delivery. A good number of loan products have already been shifted to digital framework and bank is exploring all available options and putting in concerted efforts to widen the scope of technology utilization in credit appraisal and dispensation by transferring more customer segments and credit products to digital platform.

Bank has established in-house marketing teams for sourcing loan leads in Housing, Car and Education Loan segment. Besides, services of DSAs are also being utilized to source loan proposals. The scope of DSA policy is being expanded to sourcing of digital product leads as well. Services of apprentices are also being utilized for marketing and obtaining of market feedback.

Bank has entered into various MoUs with various manufacturers, particularly vehicle manufacturers so as to pool the resources to coordinate with each other for better and effective marketing and sales completion.

Bank has initiated steps to augment fee based income by increasing non-fund business and raising awareness among the staff and Banks Clientele to avail the benefits of non –fund business. Cross selling of 3^rdparty products is being emphasized to improve the non interest income of the bank. Besides the services charges schedule has also been revised to align it to prevailing industry practices.

IT Initiatives during FY 2023-24

Rollout of New Mobile Banking Application "JKB mPay Delight +":

As a major step towards realizing its digital banking objectives, our bank launched a new state of art mobile banking application "mPay Delight +" to provide ‘Bank-in-a-Pocket experience to its customers. The new features rolled out in the new version include UPI-Scan to Pay option, ability to schedule transactions, Full statement delivery over email, Management of Credit & Debit Cards, opening/ closing of recurring & fixed deposits and much more. Our flagship product ‘mPay Delight + has been developed on a resilient architecture & framework which has the capacity to handle surges in transaction volumes observed on occasion of festivities and has in-fact already surpassed 1000crore daily transaction amount mark while delivering uninterrupted services to our valuable customers which has been recognized as a major achievement given the service disruptions observed in past on the legacy Mobile App.

Rollout of New UPI & IMPS Platform:

The upgraded platform for UPI & IMPS on cloud hosted model has been rolled out for all customers of the bank. The platform was upgraded from existing on-premises to a cloud hosted platform and all the existing registered users were migrated to the new cloud platform from day one. The New UPI Platform is hosted on cloud and is able to scale up the infrastructure on demand. This auto scalability is very much required for UPI Setups where projecting and envisaging transaction load is not easy. The inherent convenience this UPI ecosystem offers coupled with the Fintech UPI Apps has resulted in an exponentially growing transaction volumes on J&K Banks UPI System. The new UPI and IMPS platform 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 like UPI-Scan & PAY, Instant IMPS transfers , UPI-Virtual Private Address(VPA) based transfers and much more. Since its launch in December 2023, total UPI registrations have surpassed 35Lakhs and the number of transactions on monthly basis has touched 10crore mark.

Rollout of New Financial Inclusion Platform:

In order to upgrade and scale-up our Technology Platform for Financial Inclusion, an All-In-One Cloud Hosted Solution for Financial Inclusion Products was rolled out. This hosted solution is capable of handling our projected transactional growth for next 5 years and the bank is able to offer beyond Financial Inclusion set of services spanning over business mobilization, asset quality management, customer relationship management through Business Correspondents using this application. Through this platform upgrade, the bank is envisioning that this channel shall not only serve the regulatory Financial Inclusion directions, but also propagate the banks business especially in improving the asset quality and recovery processes. The upgraded platform is also providing a dedicated mobile app to BCs to ensure last mile delivery of bank products inching towards door step banking.

Launch of UPI-QR SoundBox:

With an aim to enhance our scope in digital payments, QR–SoundBox was rolled out. This QR Sound Box is a portable speaker that is equipped with a dedicated 4G SIM slot compatible across networks, for data connectivity. The QR-SoundBox will notify the merchant through audio alerts every time a customer makes a payment, helping them to run their business smoothly without the hassle of reading SMS every time a transaction has been made.

Rollout of Online Account Opening Facility with VideoKYC: As part of Business Process Re-Engineering & Go-Digital initiative, our bank has successfully launched Online Account Opening Facility along with Video KYC which enables the prospective customers to open a Bank Account 24x7 at their convenience and comfort. In the first phase the facility has been initially enabled for General Saving Account and Student Saving Account schemes.

Pan Bank Rollout of eOffice with Mobile App:

A revamped and modern eOffice Application suite has been launched across the bank. This Modernized e-Office Suite completely automates file & correspondence movement from creation to archival of files and correspondence and all decisions can be captured in the file itself and remain intact throughout the lifetime of the file. Since its launch, over 21000 notes have been initiated on the eOffice application of which over 15000 notes were disposed of in same day. This tremendous acceptance of eOffice initiative has not only drastically reduced the paper usage across the bank but also improved the decisioning turnaround time. By transitioning to paperless processes and significantly reducing paper usage, our bank demonstrates its steadfast commitment to environmental sustainability and our broader ESG goals, contributing to a greener future. To complement this and further improvise the initiative, a mobile app was also launched for Authorizer/Approver users which allows decisioning on the go. The Mobile App allows convenient, easy to use interface for approving users to view their dashboard, download notes offline and make their decisions within the app itself.

Achievements in Digital Banking FY2023-24

Digital technology is changing how Banks interact with their customers. In just a few years, the financial services industry has evolved from traditional delivery channels to a system supplemented by alternate IT-enabled delivery channels. Digital products play an instrumental role in reducing cost of operations. Besides reduction in footfall, the introduction of digital delivery channels provides a leeway to operative levels to focus on sales operations. The ability of banks to deliver services through Digital Channels is crucial to achieve superior customer experience and competitive edge.

The digital banking transition has helped Bank to improve efficiency, generating growth and convenience for customers with the opportunity to bring more prospective customers.

Our strategic priorities are focused around customers, technology and talent to build a future ready financial institution. We are leveraging emerging opportunities and building our brand through superior customer experience, 95 innovative products and services as per customer demand and community engagement.

We remain committed for enhancing customer experience through focus on customer journey, automation, innovative, comprehensive products and services ecosystem.

The details of "Achievements in Digital Banking for the FY 2023-24" are as below:-

A) Received Runner up Award at ASSOCHAM 18^thAnnual Summit and Awards Banking and Financial Sector Lending held at Mumbai in Best Digital Initiatives category.

B) The Digital transaction percentage of the Bank for the FY 2023-24 reached to 87.55 %

C) Bank successfully completed the 100% digitization project for all districts in UT of J&K.

D) Bank launched a new Digital product "Instant QR" which is utilized by our customers to receive instant and secure payments through mPay Delight plus and all other BHIM UPI apps like GooglePay, PhonePe, Paytm etc.

E) In our commitment to enhance customer convenience, Bank introduced Debit Card Home Delivery service. This offering allows customers to receive their debit cards at their doorstep, providing a hassle-free experience without the need to visit a branch.

F) In its commitment to enhance customer experience through digital transformation, the Bank rolled out new flagship mobile banking app - mPay Delight+ with value-added features for its customers.

G) To align our UPI systems with growing volumes and to meet the customer expectations, bank has upgraded its UPI systems to latest technology driven platform which offers industry best features to our customers. Besides the new UPI features are being tightly integrated with mPay Delight+ app to make digital interaction convenient & hassle free and offer an omni-channel experience to our valued customers.

H) The bank launched Visa Debit and Credit Card which marks another significant milestone in the digital landscape of our Bank by providing our customers with a versatile and globally accepted payment solution across a wide network of ATMs and Merchant establishments (POS & e-commerce) both domestic and international.

I) To keep pace with the ever changing business environment and continuing its commitment to provide superior products and services, the Bank launched new premium versions of Debit Cards – Platinum and World Debit Card with value added features like Lounge access, Ecommerce Coupons, wellness coupons, golf offers, dining offers etc.

J) To encourage digital payments and strengthen its digital footprints, the bank launched a new Digital product in its POS segment "SOFT POS" which is utilized to receive quick and secure payments through an application installed on Android Mobile Phones. Soft POS an innovative technology allows businesses to accept card payments in Contactless Mode directly on their smartphones (NFC Enabled) without the requirement of any additional hardware with a simple tap of the cardholders contactless credit or a debit card.

K) To stay ahead in the competitive market Bank launched another Digital Product ‘J&K Bank Sound Box which is a small portable speaker designed for payment alerts for UPI QR transactions. When a customer makes a payment by scanning J&K Bank UPI QR code, the Sound box will notify merchants of successful payments with a voice alert.

L) Bank launched Online Account Opening Facility along with Video KYC that enables the prospective customers to open a Bank Account 24x7 at their convenience and comfort. The service is aimed at providing our customers with a seamless and secure method to open a Bank account remotely without any geographical barriers within the country and without the need for visiting a Bank Branch.

M) Bank rolled out its flagship "J&K Bank Instant Digital Loan" for employees of J&K Government and MOU-affiliated organizations. This offering replaced the partially automated Phone Pe Loan facility, which required human intervention. The Instant Digital Loan leverages Straight Through Processing (STP) technology, providing a seamless, fully automated loan application and disbursement process. Customers can now apply for and receive loans instantly through a user-friendly digital platform, ensuring convenience and a hassle-free experience.

N) Some of the other Top Govt Departments that have been onboard to online mode of collection during the Financial year are as below:-

Jambu Zoo

State Dispute Redressal Commission.

University of Jammu CDC.

GMC Handwara, GMC Udhampur and GMC Baramulla

Municipal Council Katra

Jammu and Kashmir Gao Raksha Samiti

Balgarden Charitable Home For Destitute Children

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
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

Background: Financial inclusion has received a lot of attention from the Policy Makers and the Regulators alike for inclusive growth and equitable development of economy. Reserve Bank of India has adopted a bank-led model to deepen Financial Inclusion and to make Banking services available across all population segments and geographies.

Financial Inclusion, initially considered a regulatory compulsion, has, over time, become an important business function for the Banks. Accordingly, the Business Correspondent Channel is now being recognised as an important ‘Alternate Banking Channel owing to the geographical overreach of the Business Correspondent network as well as its cost-effectiveness.

Financial Inclusion Function in the Bank

Financial Inclusion has remained a prime focus area of the Bank all along. The Business Correspondent Network of the bank, popularly known as the Khidmat Centre Network, has received focused attention from the Management of the bank and as a result the network has emerged as one of the important alternate channels of the Bank besides helping in achieving the national Financial Inclusion milestones in J&K.

The Bank, in December 2023, adopted a new technology software for Kiosk Banking which has resulted not only in stabilizing the Kiosk Banking platform but has also added a large number of services available to the customers of the bank through the BC network.

Apart from that, a slew of management decisions and operational initiatives have increased the efficiency of the Business Correspondent Channel manifold. The Business correspondent network has been able to cater to the financial needs of the unbanked and under banked populations and spaces by providing a large number of banking services to the general public.

Financial Inclusion Strategy: In the Financial Year 2024, the Bank adopted a three-dimensional strategy to rejuvenate the BC network and leverage fully. The three concurrent phases, 1) Turnaround; 2) Accelerate and 3) Transform were implemented simultaneously for better and speedier results

Impact: Review of Performance

A. BC Network:

Performance		Performance
Parameter	FY 22	FY23	FY24
		(YoY Growth)	(YoY Growth)
		805	935
1. No. of Active BCs	645
		(25%)	(16%)

At the end of FY2024 there were 935 active Business Correspondents as against that of 805 for FY23 registering a YoY growth of 16.15%. In the Financial Year 2023 the number of active BCs increased to 805 BCs as compared 645 in the preceding year, registering thereby a yoy increase of 25%.

B. Transactions Performed by BCs: Numbers

Performance Parameter	FY 22	Performance FY23	FY24 (YoY
		(YoY Growth)	Growth)
1. Carded	23,84,748	15,36,512	16,13,319
		(-35%)	(5%)
2. AePS	1,30,661	4,52,477	27,18,289
		(246%)	(500%)
3. IMPS	0	0	3,693
4. Third Party	0	0	79,252
Deposit
5. Bill Payment	0	0	76,974

Five types of financial transactions can be performed at the BC outlets. The last three types were, however, added in the last quarter of FY 24 consequent to adoption of new technology solution.

There has been a thrust on AePS transactions because these are done on behalf of those customers who are either illiterate or are technology disabled. The AePS transactions have, thus, seen a phenomenal YoY growth of 500% on the back of 27.18 Lakh transactions done at BC outlets in FY 24. Pertinent to mention that only 1.30 lakh such transactions had been performed in FY 22. In the year 2022-2023 the number of AePS transactions was 4.52 lakh; a growth of 246% over the preceding year.

The Card-based transactions had a YoY growth rate of only 5% in FY 24 clocking more than 16 lakh transaction. The relatively slower YoY growth is also because of customers preferring AePS mode for transaction over card mode even if they being cardholders.

For IMPS, Third Party Deposit and Bill Payment transactions, there is no historical data available since they were made available at the Kiosk towards the end of FY24.

C. Account Opening

I. No. of accounts opened by BCs

		Performance
Performance Parameter		FY23	FY24
	FY 22	(YoY Growth)	(YoY Growth)
		19,862	24,957
1. Savings Bank	34,569
		(-42)	(26%)
2. Fixed Deposit	0	0	172
3. Cash Certificate	0	0	0
4. Monthly Yield Deposit	0	0	250
5. Recurring Deposit	0	0	78

The previously used software solution allowed for opening of only Small Savings Bank Accounts and partial opening of General Savings Bank accounts. The current software application allows opening of all types of SB accounts, Fixed Deposit Accounts for a maximum of Rs 50,000/- and Recurring Deposit accounts.

A YoY growth of 26% was witnessed in FY 24 for total Savings Bank accounts opened by the BCs.

II. Basic Savings Bank Accounts:

The number of PMJDY accounts along with the amount of deposit lying in the accounts at the end of FY 23 and FY24 is tabulated hereunder:

As on 31.03.2023		As on 31.03.2024
No. of Accounts	Amount (In Cr.)	No. of Ac- counts	Amount (In Cr.)
18,28,103	129.07	17,95,501	140.01

OD facility in Basic Savings Bank Account:

In accordance with the regulatory guidelines, the bank has kept an option of overdraft upto Rs.10,000/- in all the PMJDY Accounts. The position of OD outstanding in Basic Savings Bank Account as on 31.03.2024 is as under:

	As on 31.03.2023		As on 31.03.2024
Gender	No. of Ac- counts	Amount (Rs in Lakh)	No. of Ac- counts	Amount (Rs in Lakh)
Male	4107	167.74	4779	276.58
Female	2999	84.78	4945	145.57
Total	7106	252.52	9724	422.15

D. Ease Services:

A number of Ease Services like Cheque Book Request, Check Stop Request, Card Block Request, SMS Alert Subscription, Passbook Printing, Mini Statement etc. are also now available through Kiosk Banking Platform.

E. Social Security Schemes:

PMSBY is an Accidental Insurance Scheme offering accidental death and disability cover of Rs. 2.00 Lakh for death or permanent disability and a cover of Rs. 1.00 lakh for partial disability for SB Account holders in the 18-70 age group. The scheme is renewable from year to year. The bank achieved a yoy growth of 304% in enrollments under the scheme in FY24

PMJJBY offers Life Insurance cover, renewable every year, of Rs 2.00 lakh for death due to any reason for all savings Bank Account Holders in the age group of 18-50 years. The bank achieved a yoy growth of 168 % in enrollments under the scheme in FY24.

Atal Pension Yojana is a government-backed pension scheme targeted at the unorganized sector in the age group of 18-40. The Bank enrolled 3156 beneficiaries under APY in FY 24.

	Performance
Performance Parameter	FY23	FY24
	(YoY Growth)	(YoY Growth)
1. Pradhan Mantri	61,061	2,46,874
Surakhsha Bima Yojana- PMSBY	(-23%)	(304%)
2. Pradhan Mantri Jeevan	31,766	84,996
Jyoti Bima Yojana- PMJJBY	(-32%)	(168%)
3. Atal Pension Yojana- APY	6,961	3,156
	(209%)	(-55%)

Claims settled under PMJJBY and PMSBY: The cumulative position of insurance claims as on 31.03.2024 is tabulated herein-below:

		Claims
Scheme	Insurer	Received During	Claims Settled	Claims Rejected
		FY24
	New India
PMSBY	Assurance Co.	101	64	2
PMJJBY	LIC of India	390	80	23

Financial Literacy Camps

Camps conducted by Rural Branches: In compliance to regulatory guidelines, the Bank conducts awareness camps through Rural Branches. Each rural branch is required to conduct at least one such camp every month. Special Camps are conducted for newly included people in the Financial system while as Targeted Camps are conducted for specific target groups like farmers, SHGs, senior citizens, school children etc. The summary of such camps conducted in FY24 is as under:

Year	FY23	FY24
Number of Camps	4948	6187

Camps Conducted by FLCCs: In compliance to regulatory guidelines, the Bank has set up Financial Literacy cum Credit Counseling Centres (FLCC) in its 12 lead districts. The FLCCs conduct financial literacy camps to promote financial education, digital literacy among various population segments like School/College students, SHGs, rural women, bank clients etc. The summary of the camps conducted by the FLCCs is presented as under:

the FLCCs is presented as under:
	FY 23			FY24
Special Camps	Target Camps	Total	Special Camps	Target Camps	Special Camps
355	1153	1508	314	1132	1446

Camps conducted by CFLs

In compliance to the instruction of the Reserve Bank of India, The Bank has established 56 Centres for Financial Literacy (CFL) in collaboration with CRISIL Foundation and Responsenet Development Services- Non Governmental Organizations nominated by Reserve Bank of India. The CFLs have been established in various blocks of the lead Districts of the Bank. The number of financial literacy camps conducted by the CFLs is summarized below.

	FY23	FY24
Number of camps	3259	9562

Customer Service

The Bank realizes the importance of customer service and continues to lay utmost priority for rendering prompt and efficient service to customers.

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.

Bank has adopted ‘zero tolerance policy on staff misbehaviour with Customers. SOP has been framed for handling staff misbehaviour complaints and circulated to the Branches to sensitize the staff that the substantiated complaints of misbehavior will be dealt with strictly and disciplinary action will be initiated against the erring employee besides transferring him/her to distant location.

Root cause analysis of complaints is performed so as to plug the gaps, if any, and avoid recurrence of complaints on similar grounds. This approach has helped the Bank in making the grievance redressal mechanism more effective and responsive. The customer complaints which are partially or wholly rejected by the Bank are auto-escalated to Banks Internal Ombudsman for opinion.

The Bank also conducts Customer Advisory Forum (CAF) meetings at all Branches at monthly intervals. These meetings help us obtain first hand feedback about our products and services and in turn facilitate necessary changes/ improvements as per customer expectations.

The Bank has constituted a sub-committee of the Board known as ‘Customer Service Committee with the objective of bringing improvements in the quality of customer service and to examine any other issues having a bearing on the quality of customer service rendered. The CSC of Board reviews the various customer service initiatives implemented by the bank from time to time and discuss on new initiatives to enhance the customer experience.

The Bank has constituted a ‘Standing Committee on Customer Service, which is responsible for implementation and compliance of the ‘Code of Banks Commitment to Customers. The committee consists of official and non-official members. The official members include the top management of the Bank and non-official members include the public representation so as to put the day-to-day issues faced by the common customers and their resolution. The non-official members have been included in the standing committee so as to enable an independent feedback on the quality of customer service rendered by the Bank.

The Bank has a Contact Center in place to provide tele-banking services to its customers and to redress the customer grievances on 24x7x365 basis through leading Service Provider.

Bank has various policies on customer service approved by the Board which have been conspicuously displayed on Banks website for awareness of general public.

Prompting Compliance

The bank has implemented robust compliance processes in accordance with guidelines set by the Reserve Bank of India (RBI) and the banks internal governance standards. Our commitment to accountability, transparency, and business ethics is evident in our adoption of industry best practices. We have established a comprehensive Group compliance policy to identify and mitigate compliance risks effectively.

To ensure compliance, the bank strictly adheres to all statutory provisions outlined in various legislations, including the Banking Regulation Act, RBI Act, FEMA, and other regulatory guidelines. Furthermore, we have implemented internal policies that align with these requirements, continually updated to reflect changes as necessary. Our enterprise-wide compliance framework establishes clear roles and responsibilities to maintain adherence.

Further, In order to foster a strong compliance culture, we have established a dedicated "Compliance" Department at the apex level. The Compliance function of the Bank is being headed by a senior officer of the rank of General Manager designated as Group Compliance Officer whose overall responsibility is coordinating the efforts of identification and management of Banks Compliance Risk and supervising the activities of other Compliance Function staff.

Additionally, we have implemented the CERMO+ and TasC applications, which enable us to monitor regulatory guidelines and ensure compliance accordingly. These measures strengthen our overall compliance efforts and demonstrate our commitment to regulatory compliance.

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