Your Board of Directors (the "Board”) is pleased to present its
88th Integrated Annual Report on the performance of the Bank,
together with the audited Balance Sheet, Profit and Loss Account
and the report on business and operations for the year ended
March 31, 2026.

Performance at a Glance

During the financial year ended March 31, 2026, the
Bank continued to deliver strong operational and financial
performance, supported by sustained business growth, healthy
asset quality, improved profitability and a robust capital position.

•    The aggregate business of the Bank stood at
J2,90,334.72 crore as on March 31, 2026.

•    Total deposits increased by J16,784.54 crore,
from J1,48,569.46 crore as on March 31, 2025 to
J1,65,354.00 crore as on March 31, 2026, registering a
growth of 11.30%.

•    CASA deposits stood at J75,478.32 crore, constituting
45.65% of the Bank's total deposits.

•    The average cost of deposits for FY 2025-26 was 4.70%.

•    Gross advances stood at J1,24,980.72 crore as on
March 31, 2026.

•    Net advances stood at J1,22,641.01 crore as on March
31, 2026.

•    Yield on advances for FY 2025-26 was 8.98%.

•    Average Priority Sector Advances stood at J43,602.91 crore.

•    During the year, the Bank achieved cumulative cash
recoveries, upgradation of NPAs and recoveries from
technical write-offs aggregating J1,177.28 crore.

•    The Bank’s net investment portfolio stood at
J40,821.86 crore as on March 31, 2026.

Insurance Business

The Bank earned a commission income of H102.31 crore from
Insurance Business by mobilising a business of H780.51 crore in
life insurance (including fresh retail life business of H183.99 crore,
Credit life business of H102.18 crore and renewal business of
H494.35 crore) and H210.72 crore in non-life insurance during
financial year 2025-26.

Income Analysis

The Bank maintained strong earnings momentum during
FY 2025-26.

•    Interest income amounted to J13,145.19 crore, while interest
expenditure stood at J7,269.42 crore, resulting in a Net
Interest Income (NII) of J5,875.77 crore.

•    Net income from operations, comprising net interest income
and non-interest income, amounted to J6,815.62 crore.

•    Operating expenses declined by J165.26 crore to
J3,829.13 crore, compared with J3,994.39 crore in the

previous financial year.

•    Consequently, the Cost-to-Income Ratio improved to
56.18% during FY 2025-26.

Operating Profit

The Bank reported an Operating Profit of J2,986.49 crore

for FY 2025-26, reflecting continued improvement in its core
operating performance.

Provisions

Total provisions towards loan losses, standard assets, taxation
and other contingencies amounted to J623.02 crore during
the financial year.

Net Profit

The Bank recorded a Net Profit of J2,363.47 crore for

FY 2025-26, reflecting sustained growth in earnings supported
by improved operating efficiency and prudent risk management.

Dividend

In terms of Regulation 43A of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, the Bank has
formulated and adopted a Dividend Distribution Policy with the
objective of appropriately rewarding Shareholders through
dividends while retaining the capital required for meeting
regulatory capital requirements, maintaining adequate buffers
and supporting its future growth. The said Policy is available on
the official website of the Bank at:

https://ikb.bank.in/sites/default/files/2025-05/24.%20

Dividend%20Distribution%20Policy.pdf

The Board of Directors of the Bank did not recommend any
dividend for the Financial Year 2025-26.

Branch Network and Delivery Channels

The Bank continued to strengthen its physical and digital
distribution network during the year.

During FY 2025-26, the Bank established five new branches
and four Zonal Impaired Asset Recovery Centres (ZIARCs),
taking its total network to 1,017 branches (including IARCs and
ZIARCs) as on March 31, 2026, spread across 18 States and
4 Union Territories.

The distribution of branches (excluding Extension Counters,
Mobile Branches and Service Branches), based on Census 2011
classification, is as follows:

The Bank further expanded its alternate delivery infrastructure
by establishing two Easy Banking Units (EBUs)/Ultra Small
Branches (USBs) during the year, taking the total number of
EBUs/USBs to 99.

The ATM network expanded by 20 ATMs, increasing the total
number of ATMs to 1,437 as on March 31, 2026.

Additionally, the Bank commissioned 18 Cash Recycler
Machines (CRMs) during the year, taking the total number of
CRMs to 173.

Capital

The capital management framework of the Bank includes a
comprehensive internal capital adequacy assessment process
conducted periodically, which determines the adequate level of
capitalisation needed to meet the regulatory norms and current
and future business needs.

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

As at March 31, 2026, the Subscribed and Paid-up Capital of
the Bank stood at H110,11,82,463.00 comprising of 110,11,82,463
equity shares, which is same as at March 31, 2025.

Net Worth and Capital Adequacy Ratio (CRAR)

The Bank maintained a strong capital position well above the
regulatory minimum prescribed under Basel III.

•    Net Worth stood at J15,045.86 crore as on March 31, 2026.

•    The Capital Adequacy Ratio (CRAR) under Basel III was
16.55% as on March 31, 2026.

•    The Common Equity Tier 1 (CET1) ratio stood at 13.54%,
while the Tier 1 Capital Ratio stood at 14.44% as on
March 31, 2026.

•    The Adjusted Book Value per share stood at J129.51 as on
March 31, 2026.

The Bank continues to maintain a comfortable capital buffer,
providing adequate capacity to support future business growth
while complying with regulatory capital requirements.

Integrated Annual Report

For Financial Year 2025-26, the Bank is publishing its
first Integrated Annual Report based on the International
Integrated Reporting Framework ("IIRC”) and SEBI's guidelines
on integrated reporting. This report covers aspects such as
Bank’s strategy, governance framework, performance, risk
management and prospects of value creation based on the
six forms of capitals viz., financial capital, intellectual capital,
manufactured capital, human capital, social & relationship
capital, and natural capital.

Board of Directors

As on March 31, 2026, your Bank had Eleven (11) Directors
consisting of Managing Director & Chief Executive Officer,
Executive Director and 09 Non-Executive Directors.

Independent and Non-Independent•    Non-Independent Executive Directors

Mr. Amitava Chatterjee (DIN: 07082989), Non-Independent
Executive Director has been serving as the MD & CEO of
the Bank since December 30, 2024. Mr. Sudhir Gupta
(DIN: 09614492), Non-Independent Executive Director has
been serving as the Executive Director of the Bank since
December 14, 2022.

•    Non-Independent Non-Executive Directors

Mr. Shailendra Kumar, IAS (07352828), Dr. Mandeep
K Bhandari, IAS (DIN: 07310347), Mr. Sanjiv Dayal
(DIN: 10926091) {RBI appointed Additional Director} and
Mr. Rajesh Kumar Chhibber (DIN: 08190084) are the
Non-Independent Non-Executive Directors of the Bank.

•    Independent Non-Executive Directors

In terms of the definition of 'Independent Director’ as
prescribed under Regulation 16(1)(b) of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015 and Section 149(6) of the Companies Act, 2013 and
based on the declarations/disclosures received from the
Directors, the following Non-Executive Directors are
Independent Directors of the Bank.:

1.    Mr. Sankarasubramanian Krishnan (DIN: 07261965)
(Part Time Chairman)

2.    Mr. Anand Kumar (DIN: 03041018)

3.    Ms. Shahla Ayoub (DIN: 09834993)

4.    Mr. Arun Gandotra (DIN: 08907929)

5.    Mr. Prafulla Premsukh Chhajed (DIN: 03544734)

Statement on declaration by Independent
Directors

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

Appointments/Resignations from the Board of
Directors

During the FY 2025-26, there were following changes in the

composition of the Board:

•    Mr. Sankarasubramanian Krishnan (DIN: 07261965) was
appointed as Independent Director on the Board of the Bank
for a period of three years effective from March 27, 2025 and
subsequently appointed as a Part-time Chairman of the Bank
w.e.f. November 13, 2025 till March 26, 2028.

•    Dr. Pawan Kotwal, IAS (DIN: 02455728) and Dr. Mandeep
K Bhandari, IAS (DIN: 07310347) were re-appointed as
Rotational Directors on the Board of the Bank effective from
August 26, 2025.

•    Mr. Arun Gandotra (DIN: 08907929) was appointed as
Independent Director on the Board of the Bank for a period
of three years effective from August 26, 2025.

•    Mr. Sudhir Gupta (DIN: 09614492) was re-appointed as
Executive Director on the Board of the Bank effective from
December 13, 2025 till November 30, 2027.

•    Ms. Shahla Ayoub (DIN: 09834993) was re-appointed as
Independent Director for a further period of three years on
the Board of the Bank w.e.f. December 26, 2025 to December
25, 2028.

•    Dr. Pawan Kotwal, IAS (DIN: 02455728) Non-Executive
Non-Independent Director of the Bank, upon attaining the
age of superannuation on December 31, 2025, resigned on
January 01, 2026 from the position of Non-Executive Non¬
Independent Director of the Bank.

•    Mr. Umesh Chandra Pandey (DIN: 01185085) and Mr. Anil
Kumar Goel (DIN: 00672755) ceased to be Independent
Directors on the Board of the Bank effective from January
20, 2026 after completion of their second term.

•    Mr. Prafulla Premsukh Chhajed (DIN: 03544734) was
appointed as an Independent Director on the Board of the
Bank for a period of three (3) years effective from February 18,
2026 to February 17, 2029.

•    Mr. Shailendra Kumar, IAS (DIN: 07352828) was appointed
as Government Nominee Director in place of Mr. Santosh
Dattatraya Vaidya, IAS (DIN: 05340193) effective from March
02, 2026.

Changes in the Board of Directors after the
Closure of Financial Year

•    Mr. Ashish Kundra, IAS (DIN: 06966214) was appointed as
a Rotational Director on the Board of Directors of the Bank
w.e.f. April 23, 2026.

•    Mr. Pravin Raghavendra (DIN: 09686944) was appointed
as an Independent Director on the Board of the Bank for a
period of three years, w.e.f. April 23, 2026 to April 22, 2029.

•    Mr. Ashish Kundra, IAS (DIN: 06966214) has resigned from
the position of Rotational Director of the Bank with effect
from August 20, 2026 due to his official engagements.

Directors retiring by rotation at AGM

Mr. R K Chhibber (DIN: 08190084) is liable to retire by rotation
at the ensuing Annual General Meeting. Mr. R K Chhibber has
not offered himself for re-appointment on the Board of the Bank.

Appointments/Resignations of the Key
Managerial Personnel

During the Financial Year 2025-26, Mr. Amitava Chatterjee,
(DIN: 07082989), Managing Director & Chief Executive Officer,
Mr. Sudhir Gupta (DIN: 09614492), Executive Director, Mr. Fayaz
Ahmad Ganai, Chief Financial Officer (upto July 16, 2025),
Mr. Ketan Kumar Joshi, Chief Financial Officer (from July 17,
2025) and Mr. Mohammad Shafi Mir, Company Secretary were
the Key Managerial Personnel of the Bank.

Mr. Ketan Kumar Joshi was appointed as Chief Financial Officer
of the Bank on July 17, 2025 in place of Mr. Fayaz Ahmad Ganai,
who ceased to be the CFO w.e.f. July 16, 2025.

Changes in the Key Managerial Personnel
after the Closure of Financial Year

NIL

Number of Meetings of the Board

During the year, seventeen (17) Board Meetings were held in due
compliance with statutory provisions, on the following dates:

25- 04 & 01-05-2025, 05-05-2025, 28-05-2025, 27-06-2025, 25¬
07-2025, 25&26-08-2025, 24-09-2025, 18-10-2025, 31-10-2025,

26- 11-2025, 03&04-12-2025, 23&26-12-2025, 20-01-2026, 09&11-
02-2026, 17-02-2026, 05-03-2026 and 25-03-2026.

Committees of the Board

The Bank has following Committees of the Board:

1)    Management Committee (MCB)

2)    Audit Committee (ACB)

3)    Integrated Risk Management Committee (IRMC)

4)    Nomination and Remuneration Committee (N&RC)

5)    Corporate Social Responsibility & Environmental, Social
and Governance Committee (CSR&ESGC)

6)    Stakeholders Relationship Committee (SHRC)

7)    Special Committee of the Board for Monitoring and Follow
up of Cases of Frauds (SCBMF)

8)    Customer Service Committee (CSC)

9)    Information Technology Strategy Committee (ITSC)

10)    Legal & Impaired Assets Resolution Committee (L&IARC)

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

Selection and Appointment of Directors

The selection and appointment of Directors of the Bank is
carried out in accordance with the applicable provisions of
the Companies Act, 2013 and the rules made thereunder, the
Banking Regulation Act, 1949, the guidelines issued by the
Reserve Bank of India (RBI), the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, and the Articles of
Association of the Bank.

In alignment with the above statutory and regulatory
framework, the Bank has adopted a structured and
comprehensive approach towards Board composition. The
following policies and plans have been formulated to ensure
an effective, diverse, and future-ready Board:

•    Succession Plan for the Board of Directors

•    Policy on Appointment and Remuneration of Directors

•    Board Diversity Policy

•    Policy for Training of Directors

These frameworks aim to ensure that the Board comprises
individuals with appropriate balance of skills, experience, and
diversity, and that there is a seamless transition and continuity
in the leadership of the Board.

Policy on Appointment and Remuneration of
Directors

The Bank has in place a policy on Appointment and Remuneration
of Directors. This Policy has been framed in compliance to the
applicable provisions of the Companies Act, 2013, the Banking
Regulation Act, 1949, the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations,
2015 and other guidelines issued by the RBI as amended from
time to time and in accordance with the Articles of Association
of the Bank.

The objective of this Policy is to set out criteria and other standards
for appointment or re-appointment of Directors on the Board
of the Bank and for evaluating the 'fit and proper' criteria for
Directors. The policy also deals with reappointment of Directors,
familarisation programmes and remuneration to the Directors. The
policy is available on the official website of the Bank at:https://jkb.
bank.in/Investor/corporate-governance-policies.

Performance Evaluation of the Board

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

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

•    Independent Directors evaluate the performance of Non¬
Independent Directors, Chairperson of the Board, Whole
Time Directors and Board as a whole and submit the report
to the Non-Executive Chairman who in turn places it before
the Board along with necessary comments and suggestive
course of action arising out of the evaluation.

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

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

The responses received to the questionnaires on evaluation
of the Board, its Committees, individual Directors including
Chairperson are consolidated and discussed by the Board.

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

Fiscal Year

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

Lead Bank Responsibility

J&K Bank continues to hold the unique distinction of being
the only private sector bank in India entrusted with the
responsibility of convening the State/Union Territory Level
Bankers' Committee (SLBC/UTLBC).

During FY 2025-26, the Bank continued to discharge its Lead
Bank responsibilities effectively across its allocated 12 districts
of the Union Territory of Jammu & Kashmir, namely Srinagar,
Ganderbal, Budgam, Baramulla, Bandipora, Kupwara, Anantnag,
Kulgam, Pulwama, Shopian, Poonch and Rajouri. The Lead Bank
responsibility for the remaining eight districts of the Union
Territory continues to be discharged by the State Bank of India.

In its capacity as the Convenor of the J&K UTLBC, the Bank
played a pivotal role in coordinating with the Government,
the Reserve Bank of India, NABARD and member banks for
the effective implementation of financial inclusion initiatives,
priority sector lending, government-sponsored programmes
and banking sector development across the Union Territory.

Annual Credit Plan - FY 2025-26

The Annual Credit Plan (ACP) for the Union Territory of Jammu
& Kashmir, launched on April 01, 2025, envisaged total credit
disbursement of J77,974.29 crore benefiting 19.90 lakh
beneficiaries.

During FY 2025-26, banks operating in the Union Territory
collectively disbursed J84,384.12 crore to 19.37 lakh
beneficiaries, achieving 108% of the financial target and 97%
of the physical target.

The overall credit disbursement comprised:

•    Priority Sector: H44,228.30 crore disbursed to 12.07 lakh
beneficiaries against the target of H43,812.17 crore for 12.54
lakh beneficiaries, representing an achievement of 101%.

•    Non-Priority Sector: H40,155.82 crore disbursed to 7.31 lakh
beneficiaries against the target of H34,162.12 crore for 7.37
lakh beneficiaries, representing an achievement of 118%.

J&K Bank was assigned an annual credit target of
J39,679.43 crore for 10.76 lakh beneficiaries under the
Priority and Non-Priority Sectors. Against this, the Bank
disbursed J47,235.53 crore to 13.40 lakh beneficiaries,

achieving 119% of the financial target and 124% of the physical
target.

With total disbursements of J47,235.53 crore, J&K Bank
accounted for 56% of the total credit disbursed by the banking
sector in the Union Territory during FY 2025-26.

J&K UTLBC Meetings

During FY 2025-26, the Bank convened two meetings of the
J&K UTLBC and five meetings of various UTLBC Sub¬
Committees to review the progress of banking and financial
inclusion initiatives across the Union Territory.

The meetings focused on:

•    implementation of the Annual Credit Plan;

•    strengthening Priority Sector Lending;

•    promoting employment generation through government-
sponsored schemes;

•    expanding the digital payments ecosystem and digital
account opening;

•    extending banking services to unbanked and under-banked
areas through branches, Business Correspondents and
Digital Banking Units;

•    enhancing financial literacy and customer awareness;

•    strengthening Farmer Producer Organisations (FPOs)
through institutional credit;

•    increasing coverage under the Kisan Credit Card Scheme; and

•    improving enrolment under Government-sponsored social
security schemes.

These meetings also served as an effective platform for
coordinated policy implementation among banks, Government
departments, regulatory authorities and other stakeholders.

District-Level Implementation

As Convenor of the Lead Bank Scheme, the Bank ensured
that District Consultative Committee (DCC), District Level
Review Committee (DLRC), Block Level Bankers' Committee
(BLBC) and other meetings under the Lead Bank Scheme were
conducted in accordance with the prescribed calendar across
all 20 districts of the Union Territory.

These forums regularly reviewed:

•    implementation of Annual District Credit Plans;

•    banking infrastructure;

•    financial inclusion;

•    priority sector lending;

•    Government-sponsored programmes;

•    credit flow to productive sectors; and

•    district-specific banking issues.

The consultative mechanism continued to facilitate close
coordination among banks, Government departments and
development agencies.

Financial Inclusion

The banking ecosystem in the Union Territory of Jammu &
Kashmir has witnessed significant expansion over the past
two decades, resulting in improved access to formal banking
services across urban as well as rural areas.

The Bank, in coordination with member banks under the UTLBC
framework, continued to implement the Financial Inclusion
Plans (FIPs) and the National Strategy for Financial Inclusion
(NSFI) 2025-30.

As on March 31, 2026:

•    one banking outlet was available for every 1,074 persons; and

•    one banking outlet served an average geographical area of
3.70 square kilometres, reflecting sustained improvement
in banking accessibility.

All phases of the Financial Inclusion Plans launched by the
Government of India and the Reserve Bank of India have been
successfully implemented in the Union Territory.

To strengthen banking penetration, 1,843 previously unbanked
Gram Panchayats were identified and allocated among banks
for coverage through banking outlets. Of these, 1,546 Gram
Panchayats had been covered as on March 31, 2026.

Further, under the National Strategy for Financial Inclusion
(NSFI) 2025-30, 2,988 unbanked Revenue Centres were
identified for coverage through branches, Fixed Business
Correspondents and Digital Banking Units. Of these, 1,468
Revenue Centres were allocated to J&K Bank for phased
coverage.

Social Security Schemes

A nationwide intensive saturation campaign covering Financial
Inclusion schemes was conducted from July 01, 2025 to
October 31, 2025 across all Gram Panchayats and Urban Local
Bodies.

The campaign focused on:

•    enrolment under social security schemes;

•    digital fraud awareness;

•    nomination registration;

•    Re-KYC compliance;

•    access to unclaimed deposits; and

•    promotion of digital banking.

As a result of the coordinated efforts of all stakeholders,
cumulative enrolments under Government-sponsored social
security schemes in the Union Territory reached:

Rural Self Employment Training Institutes
(RSETIs)

In accordance with the guidelines issued by the Ministry of
Rural Development, Government of India, the responsibility for
establishing Rural Self Employment Training Institutes (RSETIs)
in the Union Territory has been shared between J&K Bank and
the State Bank of India based on their respective Lead Bank
jurisdictions.

J&K Bank has established 12 RSETIs across its allocated Lead
Districts, namely Anantnag, Bandipora, Baramulla, Budgam,
Ganderbal, Kulgam, Kupwara, Poonch, Pulwama, Rajouri,
Shopian and Srinagar.

The performance of RSETIs, including training programmes
conducted, candidates trained and credit linkages established,
continued to be reviewed periodically by the UTLBC.

Financial Literacy Centres (FLCs)

In accordance with the Reserve Bank of India’s Financial Literacy
Centre guidelines, J&K Bank has operationalised 12 Financial
Literacy Centres (FLCs) across its allocated Lead Districts.

In addition, the State Bank of India operates eight FLCs, while
Punjab National Bank, Jammu & Kashmir Grameen Bank and
Jammu & Kashmir State Cooperative Bank operate six, four
and one FLC, respectively.

Accordingly, 31 Financial Literacy Centres were operational
across the Union Territory as on March 31, 2026.

These centres continued to conduct financial literacy
programmes covering savings, responsible borrowing, digital
banking, cyber security awareness, customer rights, grievance
redressal and Government-sponsored financial inclusion
initiatives. Their performance is reviewed regularly at UTLBC
meetings and other monitoring forums.

Performance of Subsidiary/Associate CompaniesSubsidiary:JKB Financial Services Limited (JKBFSL)

As on March 31, 2026, the Bank had one wholly owned unlisted
subsidiary, JKB Financial Services Limited (JKBFSL),
incorporated on August 27, 2008.

JKBFSL was established to provide a comprehensive range of
capital market and investment related financial services to the
customers of the Bank and the public at large, particularly across
the Union Territories of Jammu & Kashmir and Ladakh. The
Company continues to complement the Bank’s financial services
portfolio by offering equity broking, depository participant
services, margin trading facilities, mutual fund distribution and
other investment products through a collaborative business
model with the Bank.

JKBFSL is a registered member of the National Stock
Exchange of India Limited (NSE) and the BSE Limited (BSE)
and is affiliated with both the National Securities Depository
Limited (NSDL) and the Central Depository Services (India)
Limited (CDSL) for providing broking and depository services.

During the year, JKBFSL continued to strengthen its digital
capabilities through its JKB mTRADE platform, offering
customers an integrated digital investment experience, including
online trading, IPO applications, Demat account opening and
access to mutual fund investment services.

The collaborative business model between the Bank and
JKBFSL continued to facilitate cross-selling of investment
products through the Bank’s branch network, thereby enhancing
customer convenience while supporting the Bank’s fee-based
income initiatives.

Financial Performance

JKBFSL maintained its growth trajectory during FY 2025-26
and reported improved operational and financial performance.

Income

•    Total income increased from J1,918.36 lakh in FY 2024-25
to J1,992.91 lakh during FY 2025-26, registering a growth
of approximately 4%.

•    Income from Margin Trading Facility (MTF) increased to
J493.30 lakh from J487.64 lakh in the previous year.

•    Assets Under Management (AUM) under mutual fund
distribution recorded a year-on-year growth of approximately
47%, while income from mutual fund distribution increased
from J201.13 lakh to J287.22 lakh, representing a growth
of 43%.

•    Income from equity broking stood at J860.18 lakh.

•    Trading turnover increased to J4,608.02 crore, compared
with J4,424.61 crore in the previous year.

•    Depository income increased to J104.18 lakh, from
J91.13 lakh during FY 2024-25.

Expenditure

Total expenditure during FY 2025-26 amounted to
J1,423.63 lakh, as against 71,421.48 lakh in the previous
financial year. The marginal increase reflects prudent cost
management, with operating expenses remaining broadly within
the approved budget.

Profitability

JKBFSL reported:

•    Profit Before Tax (PBT): J569.28 lakh

•    Profit After Tax (PAT): J410.07 lakh

Compared with the previous financial year, PBT and PAT
increased by 15% and 8%, respectively, reflecting continued
business growth, improved operational efficiency and effective
cost management.

During the year, JKBFSL continued to expand its digital
distribution capabilities, strengthen customer acquisition
through the Collaborative Business Model (CBM) with the Bank,
and enhance the adoption of investment products across the
Bank’s branch network. The Company also continued to improve
its technology platform and operational resilience, supporting
sustainable growth in its broking, depository, margin funding
and mutual fund distribution businesses.

Associate:Regional Rural Bank (Sponsored by
J&K Bank)Jammu and Kashmir Grameen Bank

Jammu and Kashmir Grameen Bank (JKGB), sponsored by J&K
Bank, was constituted with effect from May 01, 2025 pursuant
to the amalgamation of the erstwhile J&K Grameen Bank and
Ellaquai Dehati Bank, in accordance with the Government of
India Notification dated April 07, 2025 issued under Section
23A(1) of the Regional Rural Banks Act, 1976.

The Bank is jointly owned by the Government of India, the
Government of the Union Territory of Jammu & Kashmir and
J&K Bank in the shareholding ratio of 50:15:35, respectively.
Headquartered at Jammu, JKGB continues to play a pivotal role
in promoting financial inclusion and fostering inclusive rural
development by providing timely and affordable credit to small
and marginal farmers, agricultural labourers, artisans, micro
and small enterprises, self-help groups and other economically
weaker sections of society. Through its extensive rural network,
the Bank actively supports agricultural development, rural
entrepreneurship, livelihood generation and socio-economic
progress across its area of operation.

Capital Structure

The authorised share capital of JKGB stands at J2,000 crore,
comprising 200 crore equity shares of J10 each. As
on March 31, 2026, the paid-up share capital stood at
J988.35 crore, fully subscribed by its shareholders in the
prescribed ratio, as detailed below:

Investment towards CBS Implementation

J&K Bank, in its capacity as Sponsor Bank, has contributed
towards the implementation of Core Banking Solution (CBS)
in JKGB through investment in Tier II Bonds. Out of the total
project cost of J23.34 crore incurred for CBS implementation
by the erstwhile J&K Grameen Bank, J&K Bank contributed
J11.67 crore, representing its 50% share. Following the
amalgamation, the Bank further invested J4.11 crore, being the
Sponsor Bank’s share in the Tier II Bonds earlier subscribed by
the State Bank of India on behalf of the erstwhile Ellaquai Dehati
Bank. Accordingly, the aggregate investment of J&K Bank
towards CBS implementation in JKGB stands at J15.78 crore.

Area of Operation

JKGB operates across all 20 districts of the Union Territory
of Jammu & Kashmir and the two districts of the Union
Territory of Ladakh (Leh and Kargil) through an extensive
network of 328 branches and 2 Extension Counters. As on
March 31, 2026, the Bank had a workforce of 1,424 employees,
including 10 officers on deputation from J&K Bank.

Business Performance

FY 2025-26 marks the first year of operations of the
amalgamated JKGB. Accordingly, the comparative figures
presented below are with reference to the opening position of
the amalgamated Bank as on April 30, 2025.

During the period under review, the aggregate business of the
Bank increased from J12,606.59 crore to J13,799.51 crore,

registering an absolute growth of J1,192.92 crore.

Total deposits grew from J7,686.16 crore to J8,341.71 crore,

reflecting a growth of 8.53%, while advances increased from
J4,920.43 crore to J5,457.80 crore, registering a growth of
10.92%. Consequently, the Credit-Deposit Ratio improved from
64.02% to 65.43% during the period.

Priority Sector Advances stood at J4,174.54 crore, accounting
for 76.49% of the Bank's total advances, reaffirming its
continued focus on rural credit and priority sector lending.

The JKGB maintained satisfactory asset quality during
the year. Gross Non-Performing Assets (GNPA) stood at
J263.45 crore, representing 4.83% of gross advances, while
Net Non-Performing Assets (NNPA) stood at J100.97 crore,
representing 1.91% of net advances as on March 31, 2026.

Business per employee stood at J9.69 crore, while business
per branch stood at J42.07 crore as on March 31, 2026,

reflecting improved operational productivity.

For the period from May 01, 2025 to March 31, 2026, JKGB
reported a net loss of J28.35 crore, primarily representing
the first year of operations following amalgamation and the
associated integration of systems, operations and financials.

Sponsor Bank Support

As Sponsor Bank, J&K Bank continued to provide strategic
guidance and operational support to JKGB across key areas
including governance, technology, digital banking, risk
management, compliance, human resource development,
business planning and capacity building. The Bank remains
committed to supporting the long-term growth, operational
resilience and financial sustainability of JKGB while
strengthening financial inclusion across the Union Territories
of Jammu & Kashmir and Ladakh.

Advertising and Publicity

During FY 2025-26, the Bank further strengthened its integrated
communication strategy by effectively leveraging print,
electronic, digital and outdoor media to engage with customers

and other stakeholders across its operational geographies. The
Bank undertook focused communication campaigns to promote
its products, services, digital banking solutions and customer¬
centric initiatives in alignment with its business priorities,
regulatory requirements and strategic growth objectives.

Throughout the year, sustained multimedia campaigns were
carried out to support product launches, business development
initiatives, institutional milestones and customer acquisition
programmes. These initiatives were complemented by regular
engagement through press releases, media interactions, digital
content and public awareness campaigns, enhancing the Bank's
visibility while reinforcing transparency, stakeholder confidence
and institutional credibility.

The Bank continued to communicate proactively with customers,
shareholders, regulators, employees and the general public
across Jammu & Kashmir, Ladakh and the rest of the country
through customised and targeted communication initiatives.
Particular emphasis was laid on disseminating information
relating to cyber security, digital safety, financial literacy,
financial inclusion, customer rights, services for senior citizens
and other customer awareness programmes in compliance
with applicable regulatory guidelines. These initiatives not
only fulfilled important consumer awareness obligations
prescribed by the Reserve Bank of India and other regulators
but also contributed towards building an informed and digitally
empowered customer base.

Recognising the increasing significance of digital engagement,
the Bank further strengthened its presence across major social
media platforms including Facebook, X (formerly Twitter),
Instagram, YouTube and LinkedIn through engaging audio-visual
content, financial education initiatives, institutional messaging
and customer engagement campaigns, thereby significantly
expanding its digital outreach and strengthening stakeholder
connect.

Brand Building

Brand building continued to remain an integral component
of the Bank's long-term growth strategy during FY 2025-26.
Building upon its sustained financial performance, record
profitability, strong governance standards, accelerated digital
transformation and growing national recognition, the Bank's
communication strategy remained focused on positioning
Brand J&K Bank as a modern, trusted and forward-looking
financial institution while preserving its enduring legacy of
customer service.

While the Bank continued to enjoy strong brand equity across
the Union Territories of Jammu & Kashmir and Ladakh, focused
initiatives were undertaken to enhance brand visibility and
customer engagement across the rest of the country through
an integrated mix of digital and conventional media. The
communication strategy was designed to reinforce customer
trust, strengthen emotional connect and improve brand recall
among existing as well as emerging customer segments.

During the year, the Bank launched several high-impact
campaigns highlighting its financial strength, digital
transformation, customer trust and inclusive growth initiatives.
As part of its continued focus on people-centric storytelling, the
Bank successfully expanded the second phase of its acclaimed
"Yaadon Ki Jama Poonji" campaign, celebrating the enduring
relationship between the Bank and generations of customers
while showcasing the institution's journey of transformation
and its commitment of creating sustainable value for all
stakeholders.

The Bank continued to maintain a balanced communication
strategy by combining extensive digital campaigns with
high-visibility outdoor branding through airports, railway
stations, transit media, bus shelters, hoardings and other
strategic locations. Simultaneously, in-branch branding
across branches, ATMs, Cash Recycler Machines (CRMs) and
Easy Banking Units (EBUs) was further strengthened through
consistent display of customer awareness material, product
information and corporate identity elements. Continuous
upkeep of signages and branding assets ensured uniformity
in visual identity and further reinforced the Bank's brand
recognition across all touchpoints.

Awards & Certifications received by the Bank
during FY 2025-26

The Bank's unwavering commitment to excellence, innovation,
customer-centricity and sound governance continued to receive
national recognition during FY 2025-26. During the year, the
Bank received several prestigious awards across diverse
areas of banking, reflecting its sustained focus on operational
excellence, financial performance, digital transformation and
information security.

The significant recognitions received during the year include:

•    Second Best Performing Bank under the Private Sector
Banks (Large Category) for FY 2024-25, conferred by the
State Forum of Bankers' Clubs, Kerala (SFBCK).

•    Best MSME Bank - Winner at the MSME Banking Excellence
Awards 2025.

•    Runner-up in the CSR Initiative & Business Responsibility
category at the MSME Banking Excellence Awards 2025.

•    SKOCH Silver Award at the 103^rd SKOCH Summit under the
Financial Performance category for improving the Bank's
financial performance and profitability.

•    Award from the Credit Guarantee Fund Trust for Micro
and Small Enterprises (CGTMSE) for securing the highest
number of guarantees under the CGTMSE Scheme during
FY 2024-25 in the category covering the North-Eastern
Region, Jammu & Kashmir and Ladakh.

•    Four prestigious recognitions at the IBA CISO Summit &
Citations 2025, namely:

-    Cyber Security Transformation of the Year;

-    Cyber Security Compliance Champion;

-    Cyber Security Team of the Year; and

-    Special Prize for Cyber Security Incident Response Mastery.

• The Bank's Chief Information Security Officer (CISO)
was honoured with the ‘CISO of the Year' Award at the
Enterprise Security Connect (ESCON) 2025, South Asia's
premier cybersecurity summit.

These recognitions reflect the Bank's continued pursuit of
excellence across business performance, digital innovation,
cyber resilience, governance and customer service, while
reaffirming the confidence reposed in the institution by
customers, regulators and other stakeholders.

Corporate Social Responsibility &
Environmental, Social and Governance
(CSR & ESG)

Corporate Social Responsibility continues to be an integral
part of the Bank's philosophy of sustainable and responsible
banking. Guided by its CSR Policy and driven by the objective of
creating long-term social value, the Bank remains committed to
contributing meaningfully towards inclusive growth, community
development and environmental sustainability.

During FY 2025-26, the Bank implemented a wide range of CSR
initiatives across the Union Territories of Jammu & Kashmir and
Ladakh, focusing on healthcare, education, skill development,
livelihood promotion, environmental sustainability, disaster
relief and community welfare. These initiatives were aimed at
improving the quality of life of underprivileged and vulnerable
sections of society while promoting sustainable development
and strengthening community resilience.

The Bank also continued to support projects promoting
renewable energy, environmental conservation and resource
efficiency as part of its broader commitment towards
environmental stewardship and responsible business practices.
Alongside its CSR initiatives, the Bank continued to strengthen
the integration of Environmental, Social and Governance (ESG)
considerations into its governance framework and business
practices, reinforcing its commitment to sustainable value
creation for all stakeholders.

Through these initiatives, the Bank remained steadfast in its mission
of "Serving to Empower", creating meaningful social impact while
strengthening its relationship with the communities it serves. The
Bank's CSR interventions also contributed towards enhancing
stakeholder trust, strengthening brand equity and advancing the
national agenda of inclusive and sustainable development.

The disclosures relating to the composition and meetings of the
CSR & ESG Committee of the Board, together with the Annual
Report on CSR activities as prescribed under the Companies Act,
2013 and the Companies (Corporate Social Responsibility Policy)
Rules, 2014, form part of this Annual Report as Annexure-I. The
Bank's CSR Policy can be accessed athttps://www.jkb.bank.in/
sites/default/files/10453 JK Bank CSR Policy 4.0.pdf.

Corporate Governance

The Bank is committed to upholding the highest standards of
corporate governance and it constantly benchmarks itself with
the best national and global governance and disclosure practices.
The Report on Corporate Governance for fiscal 2026 along with
General Shareholder Information forms part of this Integrated
Annual Report. M/s. D K Pandoh & Associates, Company Secretaries
(ICSI Firm Registration No. S2016JK420900), Secretarial Auditor
of the Bank, has issued a certificate confirming compliance with the
provisions of corporate governance by the Bank for FY 2025-26, as
stipulated in Regulations 17 to 27 and clauses (b) to (i) of Regulation
46(2) and paragraphs C, D and E of Schedule V to the SEBI Listing
Regulations. The said certificate is attached along with the Report
on Corporate Governance, which forms part of this Integrated
Annual Report. The corporate governance framework of the
Bank incorporates all the mandatory requirements as prescribed
in the SEBI Listing Regulations. The Bank has also adopted the
non-mandatory requirements recommended in the SEBI Listing
Regulations, as detailed in the Report on Corporate Governance,
which forms part of this Integrated Annual Report.

Management Discussion and Analysis

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

Whistle Blower Policy & Vigil Mechanism

The Bank has a Whistle Blower mechanism in place which
enhances transparency in the organisation by encouraging the
employees/Directors/other specified stakeholders to report any
wrongdoing, which comes to their knowledge in the day-to-day
performance of their duties or interaction with other fellow-
colleagues/Bank staff without fear of retaliation, victimisation
and unfair-treatment. The Bank has formulated the "Whistle
Blower Policy” to guarantee them protection from any adverse
departmental proceedings.

The Policy is compliant to regulatory requirements under
Section 177 (9) of the Companies Act 2013, and SEBI Listing
Regulations. The policy document is available on the Bank's
official website under link:https://jkb.bank.in/sites/default/
files/2025-05/WB.pdf

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

The grievance under Whistle Blower mechanism can be lodged
on the Bank's official website under link:https://jkb.bank.in/
whistle-blower/public/

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

In the FY 2025-26, four (04) complaints received under Whistle
Blower Mechanism were placed before the Audit Committee of
Board.

Protected Disclosure Scheme

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

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

The policy document is available on the intranet page of the
Bank as well as on the Bank's official website under linkhttps://
jkb.bank.in/sites/default/files/9815 PDS 3.0.pdf

It is hereby affirmed that no unfair treatment will be meted
out to a complainant by virtue of his/her having reported a
Disclosure under this Policy. The Bank, as a policy, condemns
any kind of discrimination, harassment, victimisation or any
other unfair employment practice being adopted against
complainant(s). Complete protection will, therefore, be given
to complainant(s) against any unfair practice like retaliation,
threat or intimidation of termination/suspension of service,
disciplinary action, transfer, demotion, refusal of promotion,
including any direct or indirect use of authority to obstruct
the complainant's right to continue to perform his/her duties/
functions including making further Disclosure under the policy.
In FY 2025-26, the Bank has not received any complaint under
the "Protected Disclosure Scheme”.

Risk Management

A well-defined and comprehensive risk management framework
of our Bank is based on a clear understanding of different
risks, accepting various risks, disciplined risk assessment,
measurement & continuous monitoring. The Bank has put in
place a Risk Management and Risk Appetite Framework (RAF)
that articulates the risk appetite and drills down the same into
a limit framework for various risk categories. Risk appetite
defines the levels and types of risk that are acceptable, within
risk capacity, in order to achieve strategic objectives and
business plans. The risk appetite framework, which is approved
by the Board, bolsters effective risk management by promoting

sound risk-taking through a structured approach, within
agreed boundaries. The key components of the Bank's Risk
Management architecture rely on the risk governance structure,
comprehensive processes and internal control mechanism based
on approved policies and guidelines. The Bank's risk management
processes are guided by way of policies adopted appropriately
for various risk categories, independent risk oversight and
periodic monitoring by Board of Directors, Committee of the
Board of Directors (Integrated Risk Management Committee
of Board) and Senior Management Committees - Credit Risk
Management Committee, Market Risk Management Committee,
Operational Risk Management Committee and Asset Liability
Committee (ALCO). The policies approved from time to time by
Board of Directors, Committee of Board (IRMC) form the basis
for governing framework for each type of risk. The Board sets
the overall risk appetite and philosophy for the Bank and has
an oversight of all the risks assumed by the Bank. The Bank's
Risk Management framework focuses on the management
of key areas of Risk such as Credit, Market, Operational Risk,
Liquidity Risk and Pillar II risks, quantification of these risks,
wherever possible. The risk management function in the Bank
strives to proactively anticipate vulnerabilities in the business
operations through quantitative or qualitative examination of
the embedded risks for effective and continuous monitoring
and control. An independent risk management function ensures
that risk is managed through a risk management architecture as
well as through policies and processes approved by the Board
of Directors. The risk management policies and procedures
established are updated on continuous basis in compliance to
RBI guidelines and benchmarked to the best practices. The Board
of Directors with its Committee-Integrated Risk Management
Committee (IRMC) reviews risk management policies of the Bank
pertaining to credit, market, liquidity, operational & Pillar II risks
that includes strategic risk and reputational risk, Internal Capital
Adequacy Assessment Process (ICAAP) and stress testing. The
Committee is chaired by an Independent Director. The details
of the said Committee and its Terms of Reference are set out
in Report on Corporate Governance, which forms part of this
Integrated Annual Report.

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

Business Continuity Planning (BCP)

The Bank's Business Continuity Management (BCM) programme
is aligned with the ISO 22301:2019 standard for Business
Continuity Management Systems and is developed with
reference to applicable regulatory guidance issued by the
Reserve Bank of India. The programme is periodically reviewed
through internal assessments, external audits and regulatory
examinations to ensure it remains current and effective.

The Bank's BCM ensures operational resilience, which is central
to the Bank's ability to protect its customers, employees and
stakeholders while sustaining critical services through periods
of disruption. Governance of the programme rests with the BCP
Committee, which is responsible for oversight, direction and
monitoring of continuity preparedness across the Bank. This is
underpinned by a Board-approved BCM Policy that sets out the
framework, standards and minimum requirements applicable to
all business and support functions.

A defined organisational structure enables the Bank to respond
to disruptive events in a coordinated and time-bound manner,
and to recover, resume and restore critical operations. Distinct
teams are assigned clear mandates spanning crisis response,
disaster recovery, and the technical and functional aspects of
restoring business as usual operations, as summarised below.

These structures, together with the Bank's programme of
periodic drills, provide the assurance needed to sustain
uninterrupted service delivery to customers through disruptive
events and beyond.

Succession Planning

Robust succession planning remains integral to the Bank's
governance framework, ensuring seamless continuity of
leadership and uninterrupted institutional performance.
Recognising that certain roles are pivotal to the Bank's
sustained growth and strategic direction, the Bank places strong
emphasis on ensuring that such positions are held by individuals
possessing the requisite skills, experience, and leadership
capability. Proactive identification and readiness of successors

for these critical roles is essential to eliminating leadership gaps
and preserving organisational stability. Accordingly, the Bank
has instituted a comprehensive Succession Planning Policy
applicable to Senior Management.

The Policy establishes a dual-horizon framework - encompassing
both immediate and long-term succession requirements -
designed to enable a well-governed and orderly transition
process. In order to strengthen this framework and align it with
industry best practices, the Bank had, in the past, engaged the
services of an external consultant to assist in formulating its
succession planning approach. The consultant's engagement
enabled the Bank to adopt structured assessment tools and
rating-based evaluation models, which have since supported
the identification of potential successors and the formulation
of a comprehensive, objective succession plan. The Nomination
& Remuneration Committee (NRC), together with the Board of
Directors, exercises continuous oversight of the succession
planning framework, periodically reviewing its adequacy and
effectiveness. The process entails a systematic identification of
the competencies and capabilities required for key leadership
positions, followed by a rigorous assessment of potential
successors using the aforementioned tools, and the design
of focused development interventions to bridge identified
competency gaps. In line with this approach, successors for
Senior Management positions are identified well in advance of
any vacancy arising, thereby enabling a smooth and effective
transition of leadership responsibilities.

Business Responsibility and Sustainability
Report (BRSR)

In terms of Regulation 34(2)(f) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, top 1000 Listed
Entities based on their market capitalisation as on March 31,
every year are required to submit their Business Responsibility
and Sustainability Report (BRSR) on the environmental, social
and governance disclosures as a part of the Annual Report.
The Bank's BRSR for FY 2025-26 along with the reasonable
assurance from SR Asia Private Limited is available on the
website of the Bank athttps://jkb.bank.in/Investor/financial-
information/annual-reports. The report of BRSR Core is annexed
and forms part of this Integrated Annual Report.

Confirmation on Child Labour/Forced Labour

The Bank does not engage in any form of child labour/forced
labour/involuntary labour and does not adopt any discriminatory
employment practices.

Information under the Sexual Harassment of
Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013

The Bank has constituted an Internal Complaints Committee
(ICC) for the Prevention, Prohibition and Redressal of Sexual
Harassment of Women at Workplace, which addresses complaints

of women employees posted at the Corporate Headquarters
and women officers in the rank of Chief Manager and above
across the Bank. In addition, Internal Committees have been
constituted at the Divisional level to address complaints of
women employees below the rank of Chief Manager posted in
their respective divisions.

These Committees have been duly constituted in accordance
with the provisions of the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013
and the Rules framed thereunder. The Bank, through these
Committees, is committed to providing a safe and dignified
workplace and ensuring that all complaints are addressed
promptly, fairly and in a time-bound manner.

During the year under review, three (3) complaints were received
by the Committees. The Committees conducted due inquiries in
accordance with the provisions of the Act, ensuring adherence
to the principles of natural justice by providing adequate
opportunity to both the complainants and the respondents to
present and defend their respective cases. All three complaints
were disposed of within the statutory time limit of 90 days.

Employee accidental deaths

During the year 2026, there were no occurrences of employee
accidental death at the workplace.

Loans, Guarantees & Investment in Securities

Pursuant to Section 186(11) of the Act, the provisions of Section
186 of the Act, except sub-section (1), do not apply to a loan
made, guarantee given, or security provided by a banking
company in the ordinary course of its business. The particulars
of investments made by the Bank are disclosed in schedule 8 of
the financial statements as per the applicable provisions of the
Banking Regulation Act, 1949.

Contracts or Arrangements with Related
Parties

Considering the nature of the industry in which the Bank
operates, transactions with related parties of the Bank are in the
ordinary course of business and are also at arm's length basis.
There was no materially significant related party transaction
entered by the Bank with Promoters, Directors, Key Managerial
Personnel or other persons which may have a potential conflict
with the interests of the Bank. The policy on Related Party
Transactions and dealing with related parties as approved by the
Audit Committee and the Board of Directors is uploaded on the
official website of the Bank and the link for the same is below:
https://jkb.bank.in/sites/default/files/95%20Upload%20RPT.pdf

Statement of related party transactions under sub section
(1) of Section 188 of the Companies Act, 2013 is annexed as
Annexure 5 to this report.

Information under Insolvency and Bankruptcy
Code, 2016

The Bank as on March 31, 2026 has cases under the IBC
resolution, the details whereof along with existing status is
tabulated as under:

*Out of the four accounts, three accounts were NPA accounts and one account,
i.e. UEE Electricals Engineers Pvt Ltd was standard account.

Frauds reported by the Bank

The Bank during the financial year 2025-26 has detected/
reported 25 cases of frauds to the Reserve Bank of India
involving an amount of H170.17 crores.

Also in FY 2025-26, fraud amount was revised in three fraud cases,
one pertaining to FY 2023-24 & two cases pertaining to FY 2024-25
by an amount of H13.85 Lacs, H21.52 Lacs and H1.01 Lacs respectively.
The fraud amount in these cases was thus respectively revised to
H109.43 lacs, H211.94 Lacs, & H8.18 Lacs respectively after fresh
claims were received and settled by the Bank.

Frauds reported by Auditors

During the year under review, no fraud was reported by the
statutory auditors under Section 143 (12) of the Companies Act,
2013 to the Ministry of Corporate Affairs, Govt. of India.

Consolidated Financial Statements

Pursuant to Section 129 of the Companies Act, 2013, the Bank
has prepared Consolidated Financial Statements of the Bank, its
Subsidiary (JKB Financial Services Ltd.) and also its Associate
(J&K Grameen Bank) which shall be laid before shareholders
at the 88th Annual General Meeting of the Bank along with
Bank's Financial Statements under sub-section (2) of Section
129 i.e. Standalone Financial Statements of the Bank. Further,
pursuant to the provisions of Accounting Standard (AS) 21 -
Consolidated Financial Statements notified under Section 133
of the Companies Act 2013, read with Rule 7 of the Companies
(Accounts) Rules 2014 issued by the Ministry of Corporate
Affairs, the Consolidated Financial Statements of the Bank along
with its Subsidiary/Associate for the year ended March 31, 2026
form part of this Annual Report. The statement in form AOC-1
pursuant to first proviso to sub-section (3) of Section 129 read
with Rule 5 of Companies (Accounts) Rules 2014 is annexed as
Annexure-4 to this report.

Statutory Auditors

The Statutory Central and Branch auditors of the Bank are
appointed by the Comptroller & Auditor General of India (C&AG)
pursuant to Section 139 (5) of the Companies Act, 2013. The
Bank had four (4) Statutory Central Auditors appointed by the
C&AG of India for the year under report as given below:

1.    M/s Gupta Gupta & Associates LLP, Chartered Accountants.

2.    M/s JCR & Co LLP, Chartered Accountants.

3.    M/s Dhar Tiku & Co, Chartered Accountants.

4.    M/s Gupta Sharma & Associates, Chartered Accountants.

Statutory Central Auditor's Report

For the FY 2025-26, there are no qualifications, reservation or
adverse remarks made by the Statutory Central Auditors in the
audit report.

Fees paid to Statutory Auditors

The details of total fees (excluding taxes), for all services, paid by the Bank on a consolidated basis to the Statutory Central Auditors
for FY 2025-26 are tabulated below:

fAmni inf in

Comments of C&AG

The Comptroller and Auditor General of India has issued Comments under Section 143 (6) of the Companies Act, 2013 on the Standalone
and Consolidated Financial Statements of the Bank for the year ended March 31, 2026 and the same are enclosed as Annexure - 6.
The Bank's replies to the comments are furnished below

ON THE STANDALONE FINANCIAL STATEMENTS

Secretarial Auditors & Secretarial Audit
Report

Pursuant to Section 204 of the Companies Act 2013, your Bank
has appointed CS Dhaman Kumar Pandoh, Proprietor of M/s D
K Pandoh & Associates, Company Secretaries as its Secretarial
Auditor to conduct the Secretarial Audit of the Bank for the
FY 2025-26. The Bank provided all assistance and facilities to
the Secretarial Auditor for conducting the audit. The report of
Secretarial Auditor for the FY 2025-26 is annexed to this report
as Annexure 3.

The appointment of M/s D K Pandoh & Associates,
Practicing Company Secretaries (ICSI Firm Registration No.
S2016JK420900), as Secretarial Auditor of the Bank was
recommended by the Audit Committee and the Board of
Directors of the Bank at their respective meetings held on July
25, 2025 and subsequently approved by the Shareholders in
the Annual General Meeting held on August 26, 2025, at an
overall audit fees of H90,000 (Rupees Ninety Thousands) per
annum in addition to out of pocket expenses, outlays and taxes
as applicable, to conduct secretarial audit of the Bank for a
period of 5 (Five) years i.e. from FY 2025-26 till (and including)
FY 2029-30.

Compliance with Secretarial Standards

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

Change in the nature of business

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

Plan and Status of Ind AS implementation

RBI vide Circular DBR.BP.BC. No.29/21.07.001/2018-19 dated
22nd March, 2019 deferred implementation of Ind AS till further
notice. However, RBI requires all banks to submit Proforma Ind
AS financial statements every half year. Accordingly, Bank
is preparing and submitting the Proforma Ind AS financial
statements through Ind AS Project steering committee every
half year after getting approval of the MD & CEO.

On April 27, 2026, the Reserve Bank of India issued the final
directions on Expected Credit Loss (ECL), along with a Statement
on Feedback Received from stakeholders. These were issued
following the draft directions released for public consultation
on October 7, 2025 and subsequent internal deliberations by
the RBI. The final directions incorporate select changes and
provide additional clarifications vis a vis the draft, including
on the application of prudential floors, ECL computation for
purchased or originated credit impaired (POCI) assets, and the
determination of the effective interest rate (EIR), reflecting a
calibrated refinement in the final directions. These directions
are applicable w.e.f. 1^st April 2027. RBI mandates banks to
develop a forward-looking ECL framework that compels banks
to recognise credit stress at an early stage - well before it
crystallises into non-performing status.

The Bank had undertaken a preliminary diagnostic analysis of
the GAAP differences between Indian GAAP vis-a-vis Ind AS. The
Bank has also identified and evaluated data gaps, processes and
system changes required to implement Ind AS. The Bank is in
the process of implementing necessary changes in its IT systems
wherever required and other processes in a phased manner.

Bank has in place a dedicated Team to ensure ECL
Implementation in the Bank and is in process of procuring
dedicated IT Solution for same.

Material changes and commitments affecting
financial position of the Bank

There are no material changes and commitments, affecting the
financial position of the Bank which has occurred between the
end of the financial year of the Bank i.e. March 31, 2026 and the
date of the Directors' Report i.e. August 29, 2026.

Ratings of various debt instruments

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

Employee Remuneration

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

Compensation Policy

The Bank has in place a Compensation Policy which provides
the framework for compensation payable to the WTDs/CEO,
MRTs, Control Function Staff, Non-Executive Directors and Non¬
Executive Chairman. This Policy has been framed in line with
the guidelines issued by RBI vide its circular dated 04.11.2019
(covering WTDs/CEO, MRTs, and Control Function Staff) and
relevant RBI directives governing the compensation of Non¬
Executive Directors. The policy is not fully operational due to
non-approval of ESOP/ESOS by the shareholders of the Bank.
It shall be fully implemented once the approval in this regard is
received from the shareholders.

The policy is available at the below mentioned link:

https://www.ikb.bank.in/Investor/corporate-governance-

policies

Statutory Disclosures

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

A.    Conservation of energy

The Bank remains committed to environmental
sustainability and reducing its carbon footprint through
the adoption of energy-efficient technologies and digital
transformation initiatives. Our technology investments
continue to support not only operational excellence and
customer convenience but also our broader Environmental,
Social and Governance (ESG) objectives.

The continued expansion of digital banking channels, data-
driven operations, automation initiatives, and cloud-based
platforms has significantly reduced dependency on paper-
based processes and physical interactions. Advanced digital
service delivery through mobile banking, internet banking,
digital lending journeys, and enterprise workflow platforms
has enabled the Bank to conduct operations more efficiently
while minimising environmental impact.

During the year, the Bank undertook a comprehensive
refresh of its desktop infrastructure across branches and
offices by replacing legacy desktop systems with modern,
energy-efficient computing devices. These new-generation
desktops are compact, space-saving, consume significantly
lower power, and offer enhanced processing capabilities.
The initiative not only improves employee productivity
and user experience but also contributes towards reduced
electricity consumption and supports the Bank's long-term
ESG and sustainability goals.

B.    Technology Absorption

At J&K Bank, technology continues to remain a strategic
enabler for business growth, operational resilience,
customer experience enhancement, and innovation. During
FY 2025-26, the Bank undertook several transformative
initiatives aimed at strengthening digital capabilities,
modernising core technology infrastructure, improving
service reliability, and harnessing the power of analytics
and artificial intelligence for data-driven decision making.
These initiatives have further strengthened the Bank's
digital foundation while enhancing customer service,
operational efficiency, governance and risk management.

Our key achievements in technology absorption are
categorised as follows:

(i) Enhancing Digital Customer Experience

The Bank continued to invest in customer-centric digital
capabilities to provide a seamless and enriched banking
experience across channels.

• Enhancements in mPay Delight+: Our flagship mobile
banking application, mPay Delight+, received several
significant feature enhancements across Android and
iOS platforms. New capabilities introduced during the
year include Credit Card integration and management
services, digital cheque book request functionality,
Re-KYC services, and integration with various social
security and government-backed welfare schemes.

These enhancements further strengthen the Bank's
"Bank-in-a-Pocket" proposition and improve customer
convenience through self-service digital banking.

•    Digital Lending Platform: The Bank successfully
rolled out a cloud-hosted end-to-end Digital Lending
Platform covering loan origination, underwriting,
disbursement, and servicing processes. Leveraging
Straight-Through Processing (STP) and real-time
integrations with external ecosystems such as credit
bureaus, GST databases, Income Tax systems, and
Account Aggregators, the platform significantly
reduces turnaround times while delivering a seamless
borrowing experience across Retail, MSME, and
Agriculture loan segments.

•    Employee to Customer Engagement Platform

(ECEP): The Bank implemented a comprehensive
Employee to Customer Engagement Platform to
create a unified view of customer relationships
across sales, service, and marketing functions. The
platform facilitates intelligent lead management,
targeted campaigns, customer segmentation, and
omni-channel customer engagement while leveraging
artificial intelligence for personalised interactions and
improved customer service outcomes.

(ii) Driving Process Automation and Efficiency

The Bank continued its journey towards operational

excellence by adopting enterprise-wide automation and

modern service management capabilities.

•    Implementation of Enterprise IT Service
Management (ITSM) Solution: During the
year, the Bank implemented a state-of-the-
art Enterprise IT Service Management (ITSM)
platform to establish standardised and automated
management of technology services across the
organisation. The solution provides an integrated
framework covering Incident Management, Problem
Management, Change Management, Service Request
Management, Knowledge Management and Service
Level Monitoring.

The platform enables centralised tracking of
technology operations, faster incident resolution,
improved governance, enhanced service quality, and
optimised utilisation of IT resources. By introducing
industry-standard service management practices, the
Bank has enhanced operational resilience, reduced
downtime, strengthened accountability, and improved
overall service delivery to internal and external
stakeholders.

•    Enterprise Application Performance Monitoring: To

further improve digital service reliability and customer
experience, the Bank introduced a comprehensive
Application Performance Monitoring framework for
critical business applications and digital channels.
The solution provides round-the-clock monitoring of

key platforms including Core Banking System (CBS),
Mobile Banking, Internet Banking, UPI, Payment
Systems and other customer-facing services.

The platform enables proactive identification of
performance bottlenecks, faster fault detection and
resolution, real-time visibility into application health,
and improved service availability. This initiative
significantly strengthens the Bank's ability to deliver
uninterrupted digital banking services and enhances
customer experience across all critical channels.

(iii)    Strengthening Core Infrastructure and Fostering
Innovation

The Bank continued to modernise its technology
backbone through strategic investments in scalable,
resilient, and high-performance infrastructure.

•    Core Banking Transformation - Redis Enterprise
Cache Implementation: As part of the Bank's long¬
term "Hollow the Core" strategy, a Redis Enterprise
in-memory caching platform was introduced to
optimise Core Banking System (CBS) performance.
The solution creates a synchronised high-speed cache
layer containing frequently accessed customer and
account information, thereby offloading a substantial
volume of non-financial enquiry and data retrieval
requests from the CBS database.

By reducing repetitive query loads on the Core
Banking platform, the initiative improves transaction
processing efficiency, enhances system scalability,
lowers infrastructure stress, and significantly
improves response times experienced by customers
across digital channels including Mobile Banking,
Internet Banking, UPI and API-based services. This
initiative represents an important milestone in
the Bank's gradual transition towards a modern
composable banking architecture.

•    Desktop Infrastructure Modernisation: The

Bank completed a large-scale refresh of desktop
infrastructure through deployment of modern,
secure, and high-performance endpoint devices
across its branch and office network. The initiative
improved user productivity, enhanced cybersecurity
posture through migration to contemporary
operating systems, ensured compliance with evolving
technology standards, and provided a future-ready
computing environment for employees.

(iv)    Data, Analytics and Artificial Intelligence:

Recognising data as a strategic enterprise asset, the Bank
undertook significant investments to build advanced
analytics capabilities and foster a data-driven culture.

•    Data Insights and Analytics Platform: The Bank
established a cloud-native Data Insights and Analytics
Platform to consolidate enterprise-wide data from

core banking systems, digital channels, customer
interactions, lead management systems, contact
centre operations, and external data sources into a
unified analytics ecosystem.

The platform has enabled the deployment of
multiple Artificial Intelligence and Machine Learning
driven use cases spanning customer growth,
risk management, service excellence, cross-sell
opportunities, customer segmentation, forecasting,
customer retention, complaint analytics, liquidity
management, and portfolio monitoring. The solution
empowers business units with predictive insights
and real-time decision support, enabling proactive
identification of opportunities and risks.

The initiative is expected to deliver long-term benefits
through enhanced revenue generation, improved
customer engagement, better risk management,
optimised cash and liquidity planning, accelerated
digital adoption, and stronger business decision¬
making. Furthermore, it lays the foundation for the
Bank's transformation towards an AI-enabled and
data-driven operating model while strengthening
alignment between business, technology, and
analytics functions.

C. Foreign Exchange Earnings and Outgo

The Foreign Exchange earned in terms of actual inflows

during the year and the Foreign Exchange outgo during

the year in terms of actual outflow. During the Year ended

March 31, 2026 the Bank earned H1493.30 lacs and spent

H128.36 lacs.

1.    Except as reported in para 16 (m) of Schedule 18, no
significant and material orders were passed by the
regulators or courts or tribunals impacting the going
concern status of the Bank's operations in future.

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

3.    There has been no change in the nature of business
of the Bank.

4.    Being a banking company, the disclosures relating
to deposits as required under Rule 8 (5)(v) & (vi) of
the Companies (Accounts) Rules, 2014, read with
Section 73 and 74 of the Companies Act, 2013 are not
applicable.

5.    There is no application or proceeding pending against
the Bank under the Insolvency and Bankruptcy
Code, 2016 during the year under report. Banks and
Financial institutions presently do not come within
the purview of IBC 2016.

6.    There was no instance of one-time settlement with
any other Bank or financial institution during the year
under report.

Annual Return

I n accordance with the provisions of Companies Act,
2013, the Annual Return of the Bank for the financial year
2025-26 in the prescribed Form MGT-7 is available on the
official website of the Bank at:https://jkb.bank.in/investor/
financials/annualReturns.

Unclaimed Deposits

Jammu & Kashmir Bank Limited operates as a scheduled
commercial bank under the regulatory oversight of the
Reserve Bank of India. Pursuant to RBI's extant guidelines,
any deposit that has remained dormant and unclaimed by
the account holder for 10 (ten) consecutive years is required
to be moved by the Bank into the Depositor Education and
Awareness ("DEA") Fund, which is administered by the RBI.

In line with the RBI's Depositor Education and Awareness
Fund Scheme, 2014, and subsequent amendments issued
thereunder, the Bank carries out periodic transfers of all
such long-outstanding, unclaimed deposit balances to the
DEA Fund. The quantum transferred during the year under
review, together with the running total held with the DEA
Fund as on the balance sheet date, has been disclosed under
the relevant notes forming part of the financial statements.

Account holders whose balances stand transferred to the
DEA Fund are not deprived of their right to the funds -
they may approach the Bank at any point in time to lodge
a claim for the amount, along with interest as applicable
under RBI norms. To facilitate this, the Bank has published
a detailed claim procedure and a dedicated search portal
on its official website and has also equipped its branch
network to assist customers in retrieving such balances.

In addition, the Bank is an active participant on the RBI's
centralised web portal - Unclaimed Deposits - Gateway to
Access information ("UDGAM") - which enables members
of the public to search for unclaimed deposits/accounts
across multiple banks at a single place. Customers and
their legal heirs can use the UDGAM portal to locate any
unclaimed balances lying with the Bank and thereafter
approach the respective branch to complete the claim/
settlement process as per the Bank's laid-down procedure.

Directors Responsibility Statement

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

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

(b)    accounting policies have been selected and applied
consistently. Reasonable and prudent judgements
and estimates have been made so as to give a true
and fair view of the state of affairs of the Bank at the
end of the financial year and of the profit and loss of
the Bank for that period;

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

(d)    the annual accounts have been prepared on a going
concern basis;

(e)    internal financial controls have been laid down to
be followed by the Bank and such internal financial
controls are adequate and operating effectively; and

(f)    proper and adequate systems are in place to ensure
compliance with the provisions of all applicable laws
and that such systems are adequate and operating
effectively.

Adequacy of Internal Financial Controls related to
Financial Statements

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

Requirement for maintenance of Cost Records

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

CEO & CFO Certification

In terms of Regulation 17(8) of the Listing Regulations,
the certification by the Mr. Amitava Chatterjee, Managing
Director and Chief Executive Officer and Mr. Ketan Kumar
Joshi, Chief Financial Officer of the Bank on the financial
statements and internal controls relating to financial
reporting has been obtained and was placed before the
Board in its meeting dated 05th May, 2026

Divergence in asset classification and provisioning
for NPAs

Based on the condition mentioned in RBI circular, no
disclosure on divergence in asset classification and
provisioning for NPAs is required with respect to RBI's
supervisory process for the year ended March 31, 2026.

Customer complaints and grievance redressal

Details of customer complaints and grievance redressal is
reported in Schedule 18 - Notes on Accounts of the Financial
Statements, which form part of the Annual Report.

Compliance with Maternity Benefit Act, 1961

The Bank has complied with the applicable provisions
of Maternity Benefit Act, 1961 for female employees of
the Bank with respect to leaves and maternity benefits
thereunder.

Acknowledgements

The Directors thank the valued customers, Shareholders
and well-wishers of the Bank in India and abroad for
their goodwill, patronage and support. The Directors
acknowledge with gratitude the valuable and timely
advice, guidance and support received from Government
of India, Government of UTs of Jammu & Kashmir and
Ladakh, Reserve Bank of India, Securities and Exchange
Board of India (SEBI), Insurance Regulatory Development
Authority (IRDA), NABARD, SIDBI, IBA, FIMMDA, FEDAI,
Stock Exchanges, Ministry of Corporate Affairs, Registrar

of Companies, Comptroller & Auditor General of India,
Depositors, Financial Institutions and the Central Statutory
Auditors of the Bank in the functioning of the Bank.

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

For and on behalf of the Board of Directors

S. Krishnan    Amitava Chatterjee

Part-Time Chairman    MD & CEO

Place: Chennai    Place: Jammu

Date: August 29, 2026    Date: August 29, 2026

Your Board of Directors (the "Board”) is pleased to present its
87^th Annual Report on the performance of the Bank, together
with the audited Balance Sheet, Profit and Loss Account and
the report on business and operations for the year ended 31^st
March, 2025.

Performance at a Glance

• The aggregate business of the Bank stood at ''252768.18
Crore at the end of the FY2024-25.

• The total deposits of the Bank grew by ''13793.14
Crore from ''134776.32 Crore as on 31^st March, 2024 to
''148569.46 Crore as on 31^st March, 2025, a growth of
10.23 percent.

• CASA deposits of the Bank at ''69843.42 Crore
constituted 47.01 percent of total deposits of the Bank.

• Cost of deposits for current FY stood at 4.75 percent.

• Net advances of the Bank stood at 104198.72 Crore as
on 31^st March, 2025.

• Yield on advances for the current FY stood at 9.56
percent.

• Average Priority Sector advances stood at ''46048.17
Crore as on 31^st March, 2025.

• The Bank effected cumulative cash recovery, up-
gradation of NPAs and recoveries in technical write-off
of ''1288.09 Crore during FY 2024-25.

• Investment portfolio of the Bank stood at ''41212.66
Crore as on 31^st March, 2025.

Insurance Business

The Bank earned a commission income of ''106.09 Crore
from insurance business by mobilizing a business of ''738.98
Crore in life insurance (including fresh retail life business of
''201.61 Crore, Credit life business of ''93.92 Crore and renewal
business of ''443.45 Crore) and ''253.73 Crore (gross business)
in non-life insurance during financial year 2024-25.

Income Analysis

• The Interest income of the Bank stood at ''12535.86
Crore in the year 2024-25. Interest expenses stood at
''6742.04 Crore for FY 2024-25. The Net Interest Income
stood at ''5793.82 Crore for FY 2024-25.

• The Net Income from operations [Interest Spread plus
Non-interest Income] stood at ''6930.63 Crore in the FY
2024-25.

• The Operating Expenses registered an increase of
''248.55 Crore during the financial year 2024-25 and
stood at ''4000.84 Crore as compared to ''3752.29 Crore
in financial year 2023-24.

• The Cost to Income ratio (Operating Expenses to Net
Operating Income) stood at 57.73 percent in the financial
year 2024-25.

Operating Profit

Operating Profit for the financial year 2024-25 stood at
''2929.79 Crore.

Provisions

The Provision for Loan Losses, Standard Assets, Taxation
and others aggregated to ''847.33 Crore in the financial year
2024-25.

Net Profit/Loss

The Bank registered a Net Profit of ''2082.46 Crore for the
financial year 2024-25.

Dividend

In view of the overall performance of the Bank and while
retaining capital to support future growth, the Board at its
meeting held on 5^th May, 2025, recommended dividend of 215
per cent for the financial year 2024-25 for approval of the
Shareholders at the 87^th Annual General Meeting. If approved,
the total outflow on account of dividend for the financial year
2024-25 will be ''236.75 Crores. The record date for payment
of dividend is mentioned in the notice of the 87^th AGM of the
Bank.

In terms of the Income Tax Act, 1961, the dividend income is
taxable in the hands of the Members. Therefore, the dividend
will be paid to the Members after deduction of applicable
taxes, if any.

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

Branch/ATM Network

During the financial year 2024-25, 15 new branches were
established, thereby taking the number of branches to 1019
(including IARBs) as on 31.03.2025, spread over 18 states
and 4 union territories. The area-wise breakup of the branch
network (excluding extension counters/ mobile branches and
service branches) on the basis of census 2011 as at the end of
FY 2024-25 is as under:

During the financial year FY 2024-25, 3 Easy Banking Units
("EBUs'''') were established taking the total number of EBUs to
97 and 14 ATMs were opened in FY 2024-25 taking the ATM
network of the Bank to 1424 as on 31.03.2025. Besides 7 CRMs
(Cash Recycler Machines) were opened in FY 2024-25 taking
the total number of CRMs to 156 as on 31.03.2025.

Capital

The capital management framework of the Bank includes a
comprehensive internal capital adequacy assessment process
conducted periodically, which determines the adequate level
of capitalization needed to meet the regulatory norms and
current and future business needs.

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

As at March 31, 2025, the Subscribed and Paid-up Capital of
the Bank stood at ''110,11,82,463.00 comprising of 110,11,82,463
equity shares, which is same as at March 31, 2024.

Net Worth and Capital Adequacy Ratio (CRAR)

• The Net Worth of the Bank stood at ''13013.26 Crore on
31^st March 2025.

• Adjusted Book Value per Share for the financial year
2024-25 stood at ''110.75.

• CRAR of the Bank stood at 16.29% as on 31.03.2025.
Tier-I capital stood at 13.96%.

Board of Directors

Your Bank has Twelve (12) Directors consisting of Managing
Director & Chief Executive Officer, Executive Director and 10
Non-Executive Directors as on 31^st March, 2025.

Independent and Non-Independent

• Non-Independent Executive Directors

Mr. Amitava Chatterjee (DIN: 07082989), Non
Independent Executive Director has been serving as the
MD & CEO of the Bank since December 30, 2024, with the
approval of the Reserve Bank of India (RBI). Mr. Sudhir
Gupta (DIN: 09614492), Non Independent Executive
Director has been serving as the Executive Director of
the Bank since December 14, 2022 with the approval of
the Reserve Bank of India (RBI).

• Non-Independent Non-Executive Directors

Dr. Pawan Kotwal, IAS (DIN: 02455728), Mr. Santosh
Dattatraya Vaidya, IAS (DIN: 05340193), Dr. Mandeep
K Bhandari, IAS (DIN: 07310347), Mr. Sanjiv Dayal (DIN:
10926091), RBI appointed Additional Director and Mr.
Rajesh Kumar Chhibber (DIN: 08190084) are the Non¬
Independent Non-Executive Directors of the Bank.

• Independent Non-Executive Directors

In terms of the definition of ''Independent Director'' as
prescribed under Regulation 16(b) of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015 and Section 149(6) of the Companies Act, 2013 and

based on the declarations/disclosures received from the
Directors, the following Non-Executive Directors are
Independent Directors:-

1. Mr. Umesh Chandra Pandey (DIN: 01185085)

2. Mr. Anil Kumar Goel (DIN: 00672755)

3. Mr. Anand Kumar (DIN: 03041018)

4. Ms. Shahla Ayoub (DIN: 09834993)

5. Mr. Sankarasubramanian Krishnan (DIN: 07261965)

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

Appointments/Resignations from the Board of Directors

During the FY 2024-25, there were following changes in the
composition of the Board:

• Mr. Amitava Chatterjee (DIN: 07082989) was appointed
as a Managing Director & Chief Executive Officer of the
Bank w.e.f. December 30, 2024 in place of Mr. Baldev
Prakash (DIN: 09421701) who ceased to be the Managing
Director & Chief Executive Officer of the Bank on
December 29, 2024.

• Mr. Sanjiv Dayal (DIN: 10926091) was appointed as
Additional Director by RBI on the Board of the Bank w.e.f.
January 20, 2025.

• Dr. Rajeev Lochan Bishnoi (DIN: 00130335) ceased to be
an Independent Director on the Board of the Bank on
January 20, 2025 after completion of his second term.

• Mr. Naba Kishore Sahoo (DIN: 07654279) ceased to be
an Independent Director on the Board of the Bank on
February 28, 2025 after completion of his second term.

• Mr. Sankarasubramanian Krishnan (DIN: 07261965) was
appointed as an Independent Director on the Board of
the Bank w.e.f. March 27, 2025.

Board of Directors placed on record their deep appreciation
for the valuable services rendered by the ex-directors during
their tenure as Directors of the Bank.

Changes in the Board of Directors after the Closure of
Financial Year

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

Directors seeking appointment/re-appointment at AGM

Dr. Pawan Kotwal, IAS (DIN: 02455728) and Dr. Mandeep K
Bhandari, IAS (DIN: 07310347), who are retiring by rotation,
have offered themselves for re-appointment. The profile and
necessary details of the above mentioned Directors have been
included in the Notice of AGM and Corporate Governance
Report.

Appointments/Resignations of the Key Managerial
Personnel

During the financial year 2024-25, Mr. Baldev Prakash, (DIN:
09421701) Managing Director & Chief Executive Officer (Up to
December 29, 2024), Mr. Amitava Chatterjee, (DIN: 07082989)
Managing Director & Chief Executive Officer (From December

30, 2024), Mr. Sudhir Gupta, (DIN: 09614492) Executive
Director, Mr. Pratik D Punjabi, Chief Financial Officer (Up
to April 05, 2024), Mr. Fayaz Ahmad Ganai, Chief Financial
Officer (From April 16, 2024) and Mr. Mohammad Shafi Mir,
Company Secretary were the Key Managerial Personnel of the
Bank.

Mr. Amitava Chatterjee (DIN: 07082989) was appointed as
M ana ging Director & Chief Execu tive Officer of th e Ba nk
w.e.f. December 30, 2024 in place of Mr. Baldev Prakash (DIN:
09421701) who ceased to be the Managing Director & Chief
Executive Officer of the Bank on December 29, 2024 after
completion of his term.

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

Changes in the Key Managerial Personnel after the Closure
of Financial Year

Mr. Ketan Kumar Joshi was appointed as Chief Financial
Officer of the Bank with effect from July 17, 2025 in place of
Mr. Fayaz Ahmad Ganai.

Number of Meetings of the Board

During the year under review, fifteen (15) Board Meetings
were held in due compliance with statutory provisions, on the
following dates:

16.04.2024, 04.05.2024, 12.06.2024, 09.07.2024, 27.07.2024,

13.09.2024, 25.10.2024, 19.11.2024, 07.12.2024, 13.12.2024,

25.12.2024, 18.01.2025, 20.01.2025, 25.02.2025, 26.03.2025.

Committees of the Board

The Bank has following Committees of the Board:

1) Management Committee

2) Audit Committee

3) Special Committee of the Board for Monitoring and
Follow-up of Cases of Frauds

4) Stakeholders Relationship Committee

5) Information Technology Strategy Committee

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

7) Integrated Risk Management Committee

8) Customer Service Committee

9) Nomination and Remuneration Committee

10) Legal and Impaired Assets Resolution Committee

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

Selection and Appointment of Directors

The selection and appointment of Directors of the Bank is
carried out in accordance with the applicable provisions of
the Companies Act, 2013 and the rules made thereunder, the
Banking Regulation Act, 1949, the guidelines issued by the
Reserve Bank of India (RBI), the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, and the Articles
of Association of the Bank.

In alignment with the above statutory and regulatory
framework, the Bank has adopted a structured and
comprehensive approach towards Board composition. The
following policies and plans have been formulated to ensure
an effective, diverse, and future-ready Board:

• Succession Plan for the Board of Directors

• Policy on Appointment of Directors

• Board Diversity Policy

• Policy for Training of Directors

These frameworks aim to ensure that the Board comprises
individuals with appropriate balance of skills, experience,
and diversity, and that there is a seamless transition and
continuity in the leadership of the Board.

Performance Evaluation of the Board

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

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

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

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

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

The responses received to the questionnaires on evaluation
of the Board, its Committees, individual Directors including
Chairperson are consolidated and discussed by the Board.

Your Bank has in place a process, wherein, declarations are
obtained from the Directors regarding fulfilment of the ''fit
and proper'' criteria in accordance with the RBI guidelines/

Companies Act, 2013. The declarations from the Directors
other than Members of the NRC are placed before the NRC
and the declarations of the Members of the NRC are placed
before the Board. Assessment on whether the Directors fulfil
the said criteria is made by the NRC / Board on an annual
basis.

Fiscal Year

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

Lead Bank Responsibility

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

The Annual Credit Plan 2024-25 for UT of J&K, which was
launched on 1^st April, 2024, envisaged a total credit target of
''51,839.99 Crore for 16,66,432 beneficiaries. During the FY
2024-25, banks operating in UT of J&K have disbursed total
credit of ''69,777.77 Crore in favour of 18,43,976 beneficiaries,
registering an achievement of 135% in financial terms and 111%
in physical terms. This includes disbursement of ''36,575.27
Crore in favour of 11,54,988 beneficiaries against the annual
target of ''39,765.21 Crore for 13,28,858 beneficiaries under
Priority Sector and ''33,202.50 Crore in favour of 6,88,988
beneficiaries against the annual target of ''12,074.77 Crore
for 3,37,574 beneficiaries under Non- Priority Sector thereby
registering achievement of 92% and 275% in financial terms
respectively.

Bank was assigned annual target of ''23,748.13 Crore for
8,14,584 beneficiaries under Priority and Non-Priority Sectors
of economy during FY 2024-25 against which ''43,320.46
Crore were disbursed in favour of 13,20,160 beneficiaries
registering an achievement of 182% in financial terms and
162% in physical terms.

Convening of meetings of J&K UTLBC and Sub-Committees
of J&K UTLBC during FY 2024-25:

Three meetings of J&K UTLBC and six meetings of various
Sub-Committees of J&K UTLBC were held during the financial
year 2024-25 with special focus on implementation of
following schemes/ programmes:

? Coverage of unbanked centres with banking Touch Points

? Prime Ministers Vishwakarma Scheme for socio¬
economic development and betterment of artisans and
craftsmen.

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

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

? Financing of Farmers Producer Organizations (FPO) by
banks.

? Expanding and deepening of digital payment ecosystem
for 100% digital onboarding of saving bank and business
accounts.

Convening of District Level/ Block level meetings as per
Lead Bank Scheme

Lead Bank ensured that District-level and block level meetings,
such as DCC/ DLRC/ BLBC, and other related meetings under
Lead Bank Scheme are held as per the schedule in all the 20
districts of UT of J&K during the FY 2024-25.

The Fora discussed and reviewed wide range of banking sector
issues in blocks and districts including preparation of Annual
District Credit Plans using bottom up approach and review
progress thereof on regular intervals.

Implementation of Financial Inclusion Plans (FIPs):

All the phases of Financial Inclusion Plan of GoI/ RBI have
been successfully accomplished in Union Territory of J&K.
The identified unbanked centers stand covered by providing
banking service outlets in the form of Bank Branches/ Banking
Correspondents or other Modes of coverage.

As part of strengthening banking presence across all the rural
pockets of J&K, UTLBC J&K is making efforts to saturate
all the Gram Panchayats (GPs) by onboarding Village Level
Entrepreneurs (VLEs), Common Service Centers (CSCs) or
Self-Help Group (SHG) members as Business Correspondents
(BCs).

1,853 Gram Panchayats have been identified in J&K for
providing banking services through Banking Correspondents
of which 932 GPs have been allocated to J&K Bank alone. J&K
Bank has saturated 751 GPs.

Responsibility of setting up of RSETIs in UT of J&K:

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

Responsibility of setting up of FLCs in UT of J&K:

In terms of RBI guidelines for setting up of Financial Literacy
Centres (FLCs) in all the districts of UT of Jammu and Kashmir,
J&K Bank has made 12 FLCs operational in its 12 allocated
lead districts viz. Srinagar, Ganderbal, Budgam, Baramulla,
Bandipora, Kupwara, Anantnag, Kulgam, Pulwama, Shopian,
Poonch and Rajouri and SBI having made 8 FLCs operational
in its 8 allocated lead districts of UT of J&K, viz. Jammu,
Samba, Kathua, Udhampur, Reasi, Doda, Ramban, Kishtwar.
In addition, PNB, JKGB, EDB and J&K State Cooperative
Bank have also established 6, 2, 2 & 1 FLCs respectively, in
various districts of UT of J&K, which as on 31.03.2025 takes
the total number of FLCs in UT of J&K to 31. The performance
of FLCs in conducting the Financial Literacy Camps as per
the guidelines from RBI is being reviewed at various forums
including quarterly UTLBC meetings.

100% Saturation Drive for KCC

J&K Bank launched programmes like Kisan Ka Samman and
Kisan Adhikar Abhiyan during FY 2024-25 for saturation of
farmers under KCC Scheme. Banks have issued 1.34 Lac fresh
KCCs (Crop and AH&F) during FY 2024-25 bringing the total
number of KCCs to 11.34 Lac with credit sanction of 10,101
Crore.

Performance of Associate /Subsidiary Companies:
Associate:

Regional Rural Bank (Sponsored by J&K Bank): J&K
Grameen Bank

The J&K Grameen Bank has come into existence on 30^th
June 2009 with the issuance of statutory notification by
Department of Financial Services, Ministry of Finance,
Government of India with its Head Office at Jammu and has
commenced its business with effect from 01.07.2009. With
more than 70% of J&K''s population living in rural areas, it
presents a vast yet under-tapped opportunity for the banking
sector in J&K. J&K Grameen Bank has a distinctive competitive
advantage with its vast presence in rural areas. The bank is
playing an important role in the economic prosperity of rural
populace of J&K with its credit dispensation to small and
marginal farmers, agricultural labourers, socio-economically
weaker section of population for development of agriculture,
trade, commerce, small scale industry and other productive
activities in rural areas. The bank mobilizes resources and
deploy the same locally, thus playing a significant role in
developing agriculture and rural economy.

• Capital Structure:

The issued and paid up capital of the J&K Grameen
Bank as on 31^st March 2025 is '' 589.44 Crores being
fully subscribed by the Central Government, State/ UT
Government and Sponsor Bank in the ratio of 50:15:35
respectively and is tabulated below:

• Tier II Perpetual Bonds:

Out of total cost outlay of ''23.34 Crores for
implementation of 100% CBS by JKGB, 50% i.e. ''11.67
crore has been shared by J&K Bank (Sponsor Bank).

Date of issue: 04-12-2014

• Area of Operation:

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

No. of Branches (as on 216
31^st March, 2025) :

No. of Employees (as on 1204 (includes 8 officials on

31^st March, 2025) : deputation from J&K Bank -

Sponsor Bank).

Business Performance of the J&K Grameen Bank as on
31.03.2025

• Total Business:

The total business of the bank as on 31^st March 2025
stood at ''10450.25 Crores against ''9364.33 Crores
as on 31^st March 2024, thereby registering a growth of
11.60% during the financial year 2024-25.

• Deposits:

The deposits of the bank have increased from ''5710.15
Crores as on 31^st March 2024 to ''6299.36 Crores during
the financial year 2024-25, thereby registering a growth
rate of 10.32%.

• Advances:

The gross advances of the Bank as on 31^st March 2025
stood at ''4150.89 Crores as against ''3654.18 Crores as
on the corresponding date of the previous year recording
a growth of 13.59%.

• CD Ratio:

The C.D. Ratio of the bank has increased from 63.99% as
on 31^st March 2024 to 65.89% as on 31^st March, 2025.

• Priority Sector Advances:

The Priority Sector Advances outstanding as on 31^st
March 2025 stood at ''3181.91 Crores against ''2845.64
Crores outstanding as on 31^st March 2024, registering a
growth of 11.82 % on Y-o-Y basis. JKGB has Priority sector
advances to total advances outstanding percentage at
76.66% as on 31^st March, 2025 which is well above the
prescribed target of 75% for RRBs.

• NPA Management:

Gross NPAs of the Bank as on 31^st March, 2025 stood at
157.70 Crores (3.80%) against ''148.70 Crores (4.07%)
as on 31^st March, 2024. Accordingly, Net NPAs as on 31^st
March, 2025 stood at ''50.51 Crores (1.25%) against
''45.45 Crores (1.28%) as on 31^st March, 2024.

• Business per Employee:

The business per employee as on 31^st March 2025 stood
at ''8.68 Crores against ''7.64 Crores as on corresponding
date of the previous year.

• Business per Branch:

The business per branch as on 31^st March 2025 stood as
''48.38 Crores against ''43.35 Crores as on corresponding
date of the previous year.

• Profitability:

The bank has registered a net loss of ''12.75 Crores as on
31^st March, 2025 as against a net profit of ''3.76 Crores as
on 31^st March, 2024.

Under Government''s ''One State One RRB'' policy regarding
amalgamation of 26 Regional Rural Banks (RRBs), J&K
Grameen Bank (JKGB) and Ellaquai Dehati Bank (EDB) have
also been amalgamated into one Regional Rural Bank under
the name "Jammu and Kashmir Grameen Bank” from May
1, 2025 under the sponsorship of J&K Bank, vide Gazette
Notification No. CG-DL-E-07042025-262329 dated April 7,
2025, issued by the Department of Financial Services (DFS),
Government of India.

Subsidiary: JKB Financial Services Limited (JKBFSL)

As on March 31, 2025, the Bank has one unlisted wholly owned
subsidiary namely, JKB Financial Services Limited (JKBFSL)
which was incorporated on August 27, 2008. JKB Financial
Services Limited was floated with the objective to primarily
meet the para-banking requirements of J&K Bank customers
in particular and other customers of the UT of J&K in general.
JKBFSL is a member of the National Stock Exchange (NSE) &
Bombay Stock Exchange (BSE). JKBFSL ensures the people
of J&K in general and J&K Bank clientele in particular have
easy access to financial services like depository, share
trading and mutual fund investments through their reliable
and trustworthy brand "The J&K Bank”. The establishment
of the subsidiary is part of our ongoing commitment and
obligation towards our customers, being the dominant
player in this geography and being the proud owner of the
priceless emotional equity of the local populace. The Bank
is committed for making available reliable and cost effective
financial services to the people through its branch network
especially in this geography through a Collaborative Business
Model (CBM) with JKBFSL. The CBM is aimed at maximizing
the business value and customer satisfaction.

As a leading broking entity in the Union Territory of J&K &
Ladakh, JKBFSL at present provides a wide range of financial
services to its clients which includes:

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

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

c) Gold ETF: JKBFSL is providing the facility to its
customers for buying and selling Gold ETF. This product
being an exchange-traded fund can be bought and sold
only on stock exchanges, thus saving investors from the
trouble of keeping physical gold. The transparency in
pricing/purity is another advantage. Exchange Traded
Funds are open-ended mutual fund schemes based on

the ever-fluctuating cost of gold. Gold ETFs give investors
exposure to the gold market, offering an excellent choice
of investment.

d) Initial Public Offer: To complement its broking services,
JKBFSL has been facilitating client participation in
IPOs through the ASBA platform of J&K Bank in offline
mode. However, with the rollout of its new and advanced
trading application JKBmTRADE, the company now
offers a seamless online IPO application facility. This
new feature enables clients to apply for IPOs directly
through the app, with real-time lien marking of funds,
significantly enhancing the convenience and efficiency
of the investment process.

e) Third Party Product Distribution: JKBFSL undertakes
distribution of third party products like mutual funds and
ETFs according to its client''s requirements. The company
provides such distribution through online channels as
well as through the BSE Star Mutual Fund platform.

f) Launch of mobile application mTrade:

During the FY2024-25, JKBFSL launched a mobile
app called JKB mTrade, which offers comprehensive
features, an all-in-one digital platform designed to
provide a seamless and advanced trading experience for
both experienced and first-time investors.

Performance highlights of the company during the financial

year 2024-25:

Income:

• The company''s total income exceeded 1900.00 lakhs
during the financial year 2024-25, reflecting a growth
of 27% from 1,514.56 lakhs as on 31^st March 2024 to
''1,918.38 lakhs as on 31^st March, 2025.

• Income from Margin Trade Funding (MTF) increased to
''487.65 lakhs in the financial year 2024-25, up from
''285.24 lakhs in FY 2023-24, registering a year-on-year
(YoY) growth of 71%.

• The Company recorded an Assets under Management
(AUM) growth of approximately 106% YoY, with mutual
fund commissions increasing from ''97.72 lakhs in 2023¬
24 to ''201.14 lakhs in 2024-25, reflecting 106% YoY
growth.

• Income from equity broking for the financial year 2024¬
25 stood ''878.94 lakhs, compared to ''770.37 lakhs in
FY 2023-24, representing a YoY growth of 14%. The
Company''s total trading volumes increased to ''4424.61
Crores as on 31^st March, 2025 from ''3389.59 Crores as
on 31^st March 2024, achieving a 31% growth.

• Depository income for the financial year 2024-25
recorded ''91.13 lakhs, as against ''172.88 lakhs in the
previous financial year. The depository income during
the financial year 2024-25 has witnessed a considerable
decline of 47% compared to the previous financial year,
primarily on account of regulatory changes introduced
by the SEBI vide circular dated June 28, 2024, mandated
the categorization of investors under Basic Service
Demat Account (BSDA) Framework.

Expenditure:

• The total expenses for the financial year 2024-25
amounted to ''1421.46 lakhs, compared to ''1163.51 lakhs

in the previous financial year, representing a year-on-
year (YoY) increase of 22%.

• The significant rise in total costs on a YoY basis is
primarily attributable to increased employment costs
due to the regularization of employee services and
wages paid to outsourced staff.

• Most of the expenses under other administrative
categories are variable and fluctuate in accordance with
production levels and other developments.

Profits:

• The company registered a profit before tax of ''496.88
lakhs during the given financial year and the net profit
earned was ''378.65 lakhs during the same period.

Advertising and Publicity

During the FY 2024-25, we have further strengthened the
bond of trust with all our stakeholders by leveraging all
the means and channels available for uninterrupted and
effective communication throughout the financial year. The
Bank''s products, services and facilities were successfully
advertised and publicized through a series of multi-media
mass campaigns across the operational geographies of the
Bank. Also, the advertising campaigns initiated by the Bank
to increase its overall business, while meeting the set targets,
were duly publicized with proper follow-up communications.

Further, the functioning and accomplishments of the Bank
were effectively communicated to relevant target audiences
including major stake-holders, customers, shareowners and
general public through customized and efficiently packaged
messages/hand-outs using mass media within J&K and
Ladakh, besides rest of the country to enhance our credibility
and brand image.

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

Brand Building

Brand perception forms the fulcrum of any communication
plan, which is devised to complement the Bank''s business
strategy. Therefore, in line with the Bank''s vision to scale up
its business and expand presence in rest of the country while
deepening its foot-prints in Jammu & Kashmir and Ladakh
(JKL), we aligned the Brand Building campaigns accordingly
to better leverage Bank''s success in financial and institutional
terms. With an established identity and image in the JKL
market, our focus remained to enhance Bank''s brand equity
and boost its brand appeal in aesthetically vibrant terms
to complement its financial standing. While as in rest of
the country, we successfully increased our brand exposure
activities during the FY 2024-25 both on and off-line thereby
enhancing Bank''s brand awareness, deepening its brand
perception and increasing its brand value.

During the FY 2024-25, the Bank undertook various
promotional activities to position its brand further favourably
among the people, complementing ever-strengthening
significance of our institution on financial landscape of JKL

and beyond. While Brand J&K Bank continues to hold the sway
among the people, Bank has ensured to put an effective and
efficient communication strategy in place to reinforce the
brand recall.

During the FY, the Bank successfully ran a highly charged
brand-deepening series - ''Yadoon Ki Jama Poonji - A heartfelt
journey through the memories as markers of our making.”
In this campaign, the Bank celebrated its 86-year legacy of
love and unwavering bond with its valued customers and
dedicated employees through an audio-visual tell-tale series
on social media by presenting a treasure trove of memories
as recounted by customers/employees highlighting the deep
foundations of their trust and commitment with the Bank.

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

Moreover, people-centric, cyber security and environment-
friendly initiatives during FY2024-25 were properly
highlighted by using a blend of diverse media mix to enhance
public awareness, strengthen the trust and bond between
Bank and its stakeholders, thereby, enabling a continuity in
the positive perception about the Bank.

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

Awards & Certifications received by the Bank during FY
2024-25

Throughout its illustrious history of more than eight and
half decades, J&K Bank has been decorated with awards
and accolades at prestigious platforms nationally as well as
internationally. Over the years, the Bank has enriched its
legacy by collecting numerous honours in various categories.

During the FY 2024-25, the Bank outperformed its competitors
to win following major awards and grab the headlines in
following categories:

1. Honoured with the ''Best Innovation in Digital Lending''
award at the 1^st Indian PSU Achievers'' Awards 2025.

2. Honoured by Union Minister of Defence, shri. Rajnath
Singh for generous financial contribution under its
Corporate Social Responsibility (CSR) towards the
education of children of ex-servicemen and war widows.

3. Honoured as the winner in the category of Best Bank
for Creating Awareness among MSMEs (Private Sector)
awards at the MSME Banking Excellence Awards-2024.

Also secured the position of Runner-Up in Best MSME
Bank (Private Sector).

4. Won the coveted ''Best Digital Sales, Payments and
Engagements'' award in the ''Medium Size Banks
Category'' at the 20^th IBA Annual Banking Technology
Conference and Citations - 2024.

5. Bank''s Football Club won the prestigious 18^th Christmas
Gold Cup 2024-25.

6. Won the SKOCH Gold Award for ''Corporate Governance''
at the summit themed ''New Dimensions of Inclusive
Growth''.

7. Honoured with "Best Performance on Profitability"
award in the category of Private Sector Bank (Mid-Size)
at the 2^nd ICC Emerging Asia Banking Conclave & Awards
2024.

8. Received ''Outstanding Performance Award'' for
agriculture financing at the 15^th Agriculture Leadership
Conclave and the ''Award of Excellence'' for enrolling
the maximum number of APY beneficiaries under
the ''Mission Upgrade'' campaign of the Pension Fund
Regulatory & Development Authority (PFRDA) for the
financial year 2024.

9. Won the prestigious Platinum Award at Infosys Finacle
Innovation Awards - 2024 in the process innovation
category for Bank''s transformation in Business
Correspondent (BC)/Khidmat Centre Channel.

Corporate Social Responsibility (CSR)

As a responsible corporate entity, J&K Bank remains
committed to aligning its strategic objectives with the broader
needs of society, thereby fostering an inclusive, sustainable,
and equitable environment. This commitment forms the
cornerstone of the Bank''s Corporate Social Responsibility
(CSR) policy and is embedded in its core philosophy of
contributing meaningfully to the communities it serves.

Guided by the founding principles of its CSR policy, the Bank
consistently undertakes and promotes initiatives aimed
at uplifting underprivileged and marginalized sections of
society. These efforts also extend to supporting community-
driven actions that contribute to a more compassionate,
resilient, and sustainable world. In pursuit of this vision, the
Bank continued its ''social investment'' efforts during FY 2024¬
25 by implementing diverse CSR projects addressing social
welfare, healthcare, education, livelihood enhancement,
environmental sustainability, disaster relief etc. These
initiatives have not only helped to mitigate the challenges
faced by various communities but have also strengthened the
Bank''s emotional equity, brand affinity and public goodwill.

Throughout the financial year, the Bank remained steadfast in
its mission of "Serving to Empower” by fostering value creation
across the Union Territories of Jammu & Kashmir and Ladakh.
While many of the CSR interventions directly impacted large
segments of the population, several eco-centric projects have
played a pivotal role in promoting renewable energy adoption
and reducing the overall carbon footprint.

Statutory disclosures related to the activities of the CSR&ESG
Committee of the Board, including a comprehensive report
on CSR implementation are enclosed as part of this report as

Annexure 1. The key areas of intervention and the activities
undertaken under CSR by the Bank during the FY 2024-25 are
detailed in Corporate Functions Report.

Corporate Governance

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

Management Discussion and Analysis

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

Whistle Blower Policy & Vigil Mechanism

The Bank has a Whistle Blower mechanism in place which
enhances transparency in the organization by encouraging
the employees/ Directors/ other specified stakeholders to
report any wrongdoing, which comes to their knowledge in
the day-to-day performance of their duties or interaction with
other fellow-colleagues/ Bank staff without fear of retaliation,
victimization and unfair-treatment. The Bank has formulated
the "Whistle Blower Policy” to guarantee them protection
from any adverse departmental proceedings.

The Policy is compliant to regulatory requirements under
Section 177 (9) of the Companies Act 2013, and SEBI Listing
Regulations. The policy document is available on the Bank''s
official website under link:

https://www.jkbank.com/investor/stockExchangeIntimation/

corporateGovernancepolicies.php

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

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

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

In the FY 2024-25, Twelve (12) complaints received under
Whistle Blower Mechanism were placed before the Audit
Committee of Board.

Protected Disclosure Scheme:

The Bank in line with the RBI prescribed framework, has
devised a Policy Document on the "Protected Disclosure
Scheme.” The complaints under the Scheme cover the areas
such as corruption, misuse of office, criminal offences,
suspected/ actual fraud, failure to comply with existing rules
and regulations such as Reserve Bank of India Act, 1934,

Banking Regulation Act 1949, etc. and acts resulting in financial
loss/ operational risk, loss of reputation, etc. detrimental to
depositors'' interest/ public interest. Reserve Bank of India
(RBI) will be the Nodal Agency to receive complaints under
the Scheme.

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

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

It is hereby affirmed that no unfair treatment will be meted
out to a Complainant by virtue of his/her having reported a
Disclosure under this Policy. The Bank, as a policy, condemns
any kind of discrimination, harassment, victimization or any
other unfair employment practice being adopted against
Complainant(s). Complete protection will, therefore, be given
to Complainant(s) against any unfair practice like retaliation,
threat or intimidation of termination/suspension of service,
disciplinary action, transfer, demotion, refusal of promotion,
including any direct or indirect use of authority to obstruct
the Complainant''s right to continue to perform his/ her
duties/functions including making further Disclosure under
the policy. In FY 2024-25, the Bank has not received any
complaint under the "Protected Disclosure Scheme”.

Risk Management

Risk is an integral part of banking business. Bank has
exerted focused efforts in building a robust, and sustainable
risk governance framework and to create risk awareness
culture across all tiers of the organisation''s hierarchy and is
continuing to do so. Risk Management underscores the fact
that the survival of an organisation depends heavily on its
capabilities to be proactive and prepare for the change rather
than just be reactive for the change. The objective of risk
management is not to prohibit or prevent risk taking activity,
but to ensure that the risks are consciously taken with full
knowledge, purpose and clear understanding so that it can be
measured and mitigated.

Bank has a well-defined and comprehensive risk management
framework in place to strengthen its capacity to recognise and
address risks. This framework is clearly based on systematic
identification and understanding of different risks, disciplined
risk assessment, measurement procedures, mitigation and
continuous monitoring. Risk Management is an integral part
of the Bank''s organizational structure and plays vital part in
formulation of business strategy. It allows greater control in
achieving an appropriate balance between acceptable risks
and expected returns, while at the same time maintaining
the sound financial position. The Bank''s Risk Management
framework focuses on the management of key areas of Risk
such as Credit Risk, Market Risk, Operational Risk, Liquidity
Risk and Pillar II Risks; quantification and mitigation thereof.

The Bank has also put in place a Risk Appetite Framework
(RAF) that articulates the risk appetite and drills down the
same into a limit framework for various risk categories.
Risk appetite defines the levels and types of risk that are
acceptable, within risk capacity, in order to achieve strategic
objectives and business plans. The risk appetite framework,
which is approved by the Board, bolsters effective risk
management by promoting sound risk-taking through a
structured approach, within agreed boundaries. The Risk
Appetite applies to Bank at an enterprise level, branches,
offices and other departments. With the objective of aptly
integrating risk appetite into business functions, Bank aims
to maintain an effective risk management process which sets
out key elements for risk appetite framework which is not
limited to credit, market, liquidity and operational risks, but
incorporates all major risks faced by the Bank. This includes
reputational, concentration and strategic risks, as well as
risks that do not appear to be significant in isolation, but
when combined with other risks could lead to material losses.

The key components of the Bank''s Risk Management
architecture rely on the risk governance structure,
comprehensive processes and internal control mechanism
based on approved policies and guidelines. The Bank''s risk
management processes are guided by way of policies adopted
appropriately for various risk categories, independent risk
oversight and periodic monitoring by Board of Directors,
Committee of the Board of Directors (Integrated Risk
Management Committee of Board) and Senior Management
Committees - Credit Risk Management Committee, Market
Risk Management Committee, Operational Risk Management
Committee and Asset Liability Committee (ALCO). The policies
approved from time to time by Board of Directors, Committee
of Board (IRMC) form the basis for governing framework
for each type of risk. The risk management policies and
procedures established are updated on continuous basis
in compliance with RBI guidelines and benchmarked to the
best practices. The Board sets the overall risk appetite and
philosophy for the Bank and has an oversight of all the risks
assumed by the Bank.

Bank has an independent Risk Management Vertical
headed by the Chief Risk Officer, who reports to IRMC of
Board and monitors the development and implementation
of methodologies for risk identification, assessment,
measurement, monitoring and mitigation for all risks. The
Board of Directors with its Committee-Integrated Risk
Management Committee (IRMC) reviews risk management
policies of the Bank pertaining to Credit, Operational,
Liquidity, Market and Pillar II Risks that includes strategic risk
and reputational risk, Internal Capital Adequacy Assessment
Process (ICAAP) and stress testing. The Management Level
Committees - Credit Risk Management Committee (CRMC),
Operational Risk Management Committee (ORMC) and
Market Risk Management Committee (MRMC) for Credit Risk,
Operational Risk and Market Risk operate within the broad risk
management framework of the Bank to assess and minimize
these risks. Information security and business continuity plan
also forms part of risk management function in the Bank.
Treasury activities are separately monitored by mid office
which reports to Risk Management Vertical. The Bank has
Stress Testing Policy to measure impact of adverse stress
scenarios on the adequacy of capital. The stress scenarios are
idiosyncratic, generic and a combination of both.

Business Responsibility and Sustainability Report (BRSR)

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

Information under the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act,
2013

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

During the Financial Year 2024-25, one accidental death
has occurred on 28^th May, 2024 (Late Prem. Lal - Banking
Attendant, Code No: 21059). The employee was covered for
an amount of Rs. 20.00 lacs, which has been settled by the
Insurer (Bajaj Accidental Insurance).

Loans, Guarantees & Investment in Securities
Pursuant to Section 186(11) of the Act, the provisions of
Section 186 of the Act, except sub-section (1), do not apply
to a loan made, guarantee given, or security provided by a
banking company in the ordinary course of its business. The
particulars of investments made by the Bank are disclosed in
schedule 8 of the financial statements as per the applicable
provisions of the Banking Regulation Act, 1949.

Contracts or Arrangements with Related Parties

Considering the nature of the Industry in which the Bank
operates, transactions with related parties of the Bank are
in the ordinary course of business and are also at arm''s
length basis. There was no materially significant related party
transaction entered by the Bank with Promoters, Directors,
Key Managerial Personnel or other persons which may have
a potential conflict with the interests of the Bank. The policy
on Related Party Transactions and dealing with related
parties as approved by the Audit Committee and the Board
of Directors is uploaded on the website of the Bank and the
link for the same is below: https://www.jkbank.com/investor/
stockExchangeIntimation/corporateGovernancepolicies.php
Statement of related party transactions under sub section
(1) of Section 188 of the Companies Act, 2013 is annexed as
Annexure 5 to this report.

Information under Insolvency and Bankruptcy Code, 2016

The Bank as on 31^st March, 2025 has cases under the IBC
resolution, the details whereof along with existing status is
tabulated as under:

Frauds reported by the Bank

The Bank during the financial year 2024-25 has detected/
reported 35 cases of frauds to the Reserve Bank of India
involving an amount of 198.15 Crores.

Out of the above 35 frauds, 1 fraud case involving an amount
of ''27.60 Crore was deactivated from fraud portfolio on

01.08.2024 (originally declared as fraud in year 2021) in
compliance to court order dated 27.05.2024 passed by
Hon''ble High Court of Punjab and Haryana at Chandigarh.
RBI while acknowledging the deactivation vide its mail date

16.08.2024 advised the Bank to ensure compliance to the
judgement dated March 27, 2023 of the Hon''ble Supreme
Court, judgement dated May 27, 2024 of the Hon''ble Court of
Punjab & Haryana and of Para 2.1.1 of the Master Directions
on Fraud Risk Management in commercial banks dated July
15, 2024, while re-examining the account from angle of fraud.
The Bank following principles of natural justice, particularly
the rule of audi alteram partem, issued Show-Cause notices
to the borrowers'' and after re-examining their replies in light
of the already conducted internal investigation and Forensic
Audit Report, the account was again re-classified as fraud in
FY 2024-25.

Also in FY 2024-25, the fraud amounts in three fraud cases
pertaining to FY 2023-24 were revised by an amount of
''59.56 Lacs, ''51.48 Lacs and in one case fraud amount was
reduced by ''30.76 lacs. The fraud amounts in these cases
were thus respectively revised to ''170.94 Lacs, ''199.11 Lacs
& ''95.58 Lacs.

Frauds reported by Auditors

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

Consolidated Financial Statements

Pursuant to Section 129 of the Companies Act, 2013, the
Bank has prepared Consolidated Financial Statements of the
Bank, its Subsidiary (JKB Financial Services Ltd.) and also
its Associate (J&K Grameen Bank) which shall be laid before
Shareholders at the 87^th Annual General Meeting of the Bank
along with Bank''s Financial Statements under sub-section
(2) of Section 129 i.e. Standalone Financial Statements of
the Bank. Further, pursuant to the provisions of Accounting
Standard (AS) 21 - Consolidated Financial Statements notified
under Section 133 of the Companies Act 2013, read with
Rule 7 of the Companies (Accounts) Rules 2014 issued by
the Ministry of Corporate Affairs, the Consolidated Financial

Statements of the Bank along with its Subsidiary/Associate
for the year ended March 31, 2025 form part of this Annual
Report. The statement in form AOC-1 pursuant to first
proviso to sub-section (3) of Section 129 read with Rule 5 of
Companies (Accounts) Rules 2014 is annexed as Annexure-4
to this report.

Statutory Auditors

The Statutory Central and Branch auditors of the Bank are
appointed by the Comptroller & Auditor General of India
(C&AG) pursuant to Section 139 (5) of the Companies Act,
2013. The Bank had three (3) Statutory Central Auditors
appointed by the C&AG of India for the year under report as
given below:

1. M/s Gupta Gupta & Associates LLP, Chartered
Accountants

2. M/s JCR & Co. LLP, Chartered Accountants

3. M/s Lunawat & Co., Chartered Accountants (Only for Q1
FY 2024-25)

4. M/s Dhar Tiku & Co., Chartered Accountants (From Q2-
Q4 FY 2024-25)

Statutory Central Auditor''s Report

For the FY 2024-25, there are no qualifications, reservation
or adverse remarks made by the Statutory Central Auditors
in the audit report.

Fees paid to Statutory Auditors

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

(Amount in Rs.)

Comments of C & AG

As on date of this report, the Bank has not received the
comments under Section 143 (6) of the Companies Act, 2013
from the Comptroller and Auditor General of India on the
accounts of the Bank for the year ended 31^st March, 2025 and
the same alongwith Bank''s reply to the comments shall be
read out at the 87^th Annual General Meeting.

Secretarial Auditors & Secretarial Audit Report

Pursuant to Section 204 of the Companies Act 2013, your
Bank has appointed CS Dhaman Kumar Pandoh, Proprietor
of M/s D K Pandoh & Associates, Company Secretaries as its
Secretarial Auditor to conduct the Secretarial Audit of the
Bank for the FY 2024-25. The Bank provided all assistance
and facilities to the Secretarial Auditor for conducting the

audit. The report of Secretarial Auditor for the FY 2024-25 is
annexed to this report as Annexure 3. The Bank''s replies to the
comments of Secretarial Auditor are furnished as under:

Further, the Audit Committee and the Board of Directors of
the Bank at their respective meetings held on July 25, 2025
have recommended the appointment of M/s D K Pandoh
& Associates, Practicing Company Secretaries (ICSI Firm

Registration No. S2016JK420900), as Secretarial Auditors of
the Bank at an overall audit fees of Rs. 90,000 (Rupees Ninety
Thousands) per annum in addition to out of pocket expenses,
outlays and taxes as applicable, to conduct secretarial audit
of the Bank for a period of 5 (Five) years i.e. from FY 2025-26
till (and including) FY 2029-30.

The resolution in this regard is being proposed at ensuing
AGM for approval of the Members.

Compliance with Secretarial Standards

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

Change in the nature of business

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

Plan and Status of Ind AS implementation

The RBI had issued a circular in February 2016 requiring
banks to implement Indian Accounting Standards ("Ind AS”)
and prepare standalone and consolidated Ind AS financial
statements with effect from 1 April, 2018. Banks were also
required to report the comparative financial statements
for fiscal 2018, to be published along with the financial
statements for the year beginning 1 April, 2018. However,
the RBI in its press release issued on 5 April, 2018 deferred
the applicability of Ind AS by one year (i.e., 1 April, 2019) for
scheduled commercial banks. Further, RBI in a circular issued
on 22 March, 2019 has deferred the implementation of Ind AS
till further notice.

The Bank had undertaken a preliminary diagnostic analysis
of the GAAP differences between Indian GAAP vis-a-vis Ind
AS. The Bank has also identified and evaluated data gaps,
processes and system changes required to implement Ind AS.
The Bank is in the process of implementing necessary changes
in its IT systems wherever required and other processes in a
phased manner. The Bank is also submitting proforma Ind AS
financial statements to RBI on a half-yearly basis.

Also, in line with the RBI guidelines on Ind AS implementation,
the Bank has formed a Ind AS Project Steering Committee
comprising of members from the concerned functional areas,
headed by the Executive Director. The Steering Committee
reviews the proforma Ind AS financial statements. Accounting
impact on the application of Ind AS shall be recognised as and
when it becomes statutorily applicable to banks and in the
manner so prescribed.

Material changes and commitments affecting financial
position of the Bank

There are no material changes and commitments, affecting
the financial position of the Bank which has occurred between
the end of the financial year of the Bank i.e. March 31, 2025
and the date of the Directors'' Report i.e. August 02, 2025.

Ratings of various debt instruments

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

Employee Remuneration

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

Statutory Disclosures

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

A. Conservation of energy

The Bank is committed to environmental sustainability
and achieving a low-carbon footprint through various
energy conservation initiatives integrated within our
technology strategy. Our technological advancements
are designed not only to enhance operational efficiency
and customer service but also to contribute meaningfully
to our broader ESG goals.

The extensive digitalization of our processes, as
detailed in the Technology Absorption section, forms
the cornerstone of our energy conservation efforts.
Initiatives such as our end-to-end digital loan origination
journeys, the bank-wide e-Office solution, and online
account opening solution substantially reduced paper
consumption, the need for physical document transport,
and energy use associated with printing. Furthermore,
by empowering customers with comprehensive digital
channels like mPay Delight and internet banking, we
reduce the frequency of branch visits, leading to a lower
carbon footprint for both the Bank and its customers.
The deployment of Interactive Signage Kiosks as an
alternative to paper notices further supports this goal
by using low-power LED displays.

In our infrastructure, we prioritize energy efficiency. The
Bank''s Data Center is located in a highly energy-efficient
facility in Noida, and our Disaster Recovery Center is
housed in Asia''s largest Rated 4 Hyper-scale Datacenter,
which is USGBC LEED Platinum Certified.

We are strategically investing in cloud computing and
virtual servers, which optimize energy consumption
compared to traditional on-premise hardware. Across all
our offices and banking outlets, we consistently procure
Energy Star compliant computing and communication
hardware to significantly reduce power consumption.
These concerted efforts in adopting green IT practices
demonstrate our dedication to promoting sustainability
across all our operations.

B. Technology Absorption

At J&K Bank, our strategic focus remains firmly on
harnessing the power of technology to deliver a superior,
secure, and seamless banking experience. In our
continuous pursuit of digital excellence and customer¬
centric innovation, we have launched several key
initiatives during the financial year. These advancements
not only place our services at the forefront of the industry
but also enhance operational efficiency, strengthen our
risk management framework, and contribute to our
sustainability goals.

Our key achievements in technology absorption are
categorized as follows:

(i) Enhancing Digital Customer Experience

We have significantly upgraded our digital platforms

to provide an enriched and convenient "Bank-in-a-

Pocket" experience for our customers.

• Revamp of Digital Platforms: To enhance our
digital presence, we launched a redesigned
corporate website (jkbank.com) with a user-
friendly interface, Search Engine Optimization
(SEO), social media integration, and geo¬
coordinate feature for branch locators. We also
implemented a new Digital Insurance platform,
allowing customers to browse, compare, and
purchase insurance products from our partners
through an assisted journey at branches, with
future integration planned for our mobile and
internet banking channels.

• Major Enhancements in mPay Delight : Our
flagship mobile application, mPay Delight , saw
numerous upgrades. Key new features include a
native UPI ''Scan & Pay'' function accessible even
from the pre-login screen, a comprehensive
credit card management module, cardless
cash withdrawals at ATMs, online submission
of Form 15G/15H and download of TDS/Interest
certificates, and the ability to subscribe to
social security schemes. A simplified ''mPay Lite''
version was also introduced for elderly and non¬
tech-savvy users.

• Expansion of Digital Payment Channels: We

rolled out a new, scalable cloud-hosted UPI
platform, significantly reducing transaction
failures and enabling advanced features like
Aadhaar OTP-based registration and UPI Lite. On
an average the platform processes over 15 crore
UPI transactions per month valued at over ''8k
crores. We also introduced UPI-QR SoundBox for
instant audio payment alerts to merchants and
enabled dynamic UPI QR payments on our POS
terminals.

(ii)Driving Process Automation and Efficiency

Automating and re-engineering internal
processes has been a core focus, leading
to improved turnaround times (TAT) and
operational efficiency.

• Digital Loan Origination Journeys: We have
transformed our retail lending capabilities by
rolling out end-to-end automated online journeys
for key products, including Housing Loans, Two¬
Wheeler Loans, Car Loans, and Credit Card
Onboarding. These journeys automate credit
decisioning, improve processing TAT, and offer
unparalleled convenience to customers.

• Introduced Online Journey for Kissan Credit
Card (KCC) Renewals: We have completely
transformed the renewal process for KCC Loans
by introducing a paperless, Do-It-Yourself (DIY)
journey. Customers can submit their renewal
consent either through a dedicated web portal or
simply by sending an SMS from their registered
mobile number, with requests processed within
30 Minutes.

• Enterprise-Wide Automation: A state-of-the-
art Enterprise Reconciliation Solution was
implemented to automate the reconciliation
lifecycle for all digital channels, minimizing
manual intervention and ensuring greater
accuracy. To strengthen governance, a
Self-Audit Continuous Control Monitoring
Solution (CCM) was introduced to identify and
address operational deficiencies in real-time.
Furthermore, the bank-wide rollout of the
eOffice application suite has automated file and
correspondence management, with significant
percentage of notes achieving same-day
decisioning.

• Vehicle Hypothecation Management: A

new portal integrated with the RTO/Vahan
system allows branch staff to manage vehicle
hypothecation (addition, cancellation, and
extension) in real-time, starting with the cancel-
hypothecation service in Jammu, Kashmir, and
Delhi.

(iii) Strengthening Core Infrastructure and Fostering
Innovation

Our commitment to innovation is reflected in the
modernization of our core technology and our
collaborative approach to building a robust financial
ecosystem.

• Core Banking System (CBS) Enhancement:
To improve system performance, Capacity
Augmentation, Performance Tuning of critical
services of CBS was undertaken. In addition,
other measures for improving the transaction
processing speed at the CBS, In-Memory
caching solution initiative has been undertaken
which shall substantially off-load the load from
CBS and shall serve as the first step towards
our journey of hollowing out the core.

• Launch of Open Banking & API Gateway: A
significant milestone was the launch of our
Open Banking and API Gateway platform,
enabling secure and seamless integration with
trusted fintech partners and corporate clients.
Multiple API integrations with Corporate clients
and fintech partners have been successfully
delivered.

• Cloud Adoption and Modernization: We
successfully set up a Cloud Landing Zone,
establishing a virtual Data Center on the cloud
to reduce turnaround time for new projects.
The migration of our UPI and IMPS solutions to
the cloud now supports a growth of 20 crore
transactions monthly and has been recognized
with the "Best Cloud Futurist Award".

C. Foreign Exchange Earnings and Outgo

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

1. During the Year ended 31.03.2025, the Bank earned
''198.47 lakhs and spent ''176.88 lakhs in foreign currency.
This does not include foreign currency cash flow in

derivatives and foreign currency exchange transactions.

2. Except as reported in para 16 (m) of Schedule 18, no
significant and material orders were passed by the
regulators or courts or tribunals impacting the going
concern status of the Bank''s operations in future.

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

4. There has been no change in the nature of business of
the Bank.

5. Being a banking company, the disclosures relating to
deposits as required under rule 8 (5)(v) & (vi) of the
Companies (Accounts) Rules, 2014, read with section 73
and 74 of the Companies Act, 2013 are not applicable.

6. There is no application or proceeding pending against
the Bank under the Insolvency and Bankruptcy Code,
2016 during the year under report.

7. There was no instance of one-time settlement with any
other Bank or financial institution during the year under
report.

Annual Return

In accordance with the provisions of Companies Act, 2013,
the Annual Return of the Bank for the financial year 2024¬
25 in the prescribed Form MGT-7 is available on the website
of the Bank at: https://www.jkbank.com/investor/financials/
annualReturns.php.

Directors Responsibility Statement

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

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

(b) accounting policies have been selected and applied
consistently. Reasonable and prudent judgments and
estimates have been made so as to give a true and fair
view of the state of affairs of the Bank at the end of the
financial year and of the profit and loss of the Bank for
that period;

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

(d) the annual accounts have been prepared on a going
concern basis;

(e) internal financial controls have been laid down to be
followed by the Bank and such internal financial controls
are adequate and operating effectively; and

(f) proper and adequate systems are in place to ensure
compliance with the provisions of all applicable laws
and that such systems are adequate and operating
effectively.

Adequacy of Internal Financial Controls related to Financial
Statements

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

Requirement for maintenance of Cost Records

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

CEO & CFO Certification

Certificate issued by Managing Director & CEO and Chief
Financial Officer of the Bank, for the financial year under
review, was placed before the Board of Directors in their
meeting held on May 05, 2025 in terms of the Regulation
17(8) of the Listing Regulations.

Divergence in asset classification and provisioning for
NPAs

Based on the condition mentioned in RBI circular, no disclosure
on divergence in asset classification and provisioning for
NPAs is required with respect to RBI''s supervisory process
for the financial year ended March 31, 2025.

Customer complaints and grievance redressal

Details of customer complaints and grievance redressal is
reported in Schedule 18 - Notes on Accounts of the Financial
Statements, which form part of the Annual Report.

Compliance on Maternity Benefit Act, 1961

The Bank has complied with the applicable provisions of
Maternity Benefit Act, 1961 for female employees of the Bank
with respect to leaves and maternity benefits thereunder.

Acknowledgements

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

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

For and on behalf of the Board of Directors

S. Krishnan Amitava Chatterjee

Independent Director MD & CEO

Place: Chennai Place: Jammu (J&K)

Date: August 01, 2025 Date: August 01, 2025

Your Board of Directors has pleasure in presenting the 85^th Annual Report of your Bank, together with the audited Balance Sheet, Profit and Loss Account and the report on business and operations for the year ended 31^st March, 2023.

Performance at a Glance

• The aggregate business of the Bank stood at Rs.204323.19 Crore at the end of the financial year 2022-23.

• The total deposits of the Bank grew by Rs.7327.36 Crore from Rs.114710.38 Crore as on 31^st March, 2022 to Rs.122037.74 Crore as on 31^st March, 2023, a growth of 6.39 percent.

• CASA deposits of the Bank at Rs. 66017.98 Crore constituted 54.10 percent of total deposits of the Bank.

• Cost of deposits for current FY stood at 3.79 percent.

• The net advances of the Bank stood at Rs.82285.45 Crore as on 31^st March, 2023.

• Yield on advances for the current FY stood at 8.91 percent.

• Average Priority sector advances stood at Rs.32,800.26 Crore as on 31^st March, 2023.

• The Bank effected cumulative cash recovery, up-gradation of NPA''s and technical write-off of Rs.8762.71 Crores during FY 2022-23.

• Investment portfolio of the Bank stood at Rs.34829.15 Crore as on 31^st March, 2023.

Insurance Business

The Bank earned a commission income of Rs. 70.69 Crore from Insurance Business by mobilizing a business of Rs 568.2 Crore in life insurance (including fresh retail life business of Rs 155.17 Crore, Credit life business of Rs 96.68 Crore and renewal business of Rs 316.35 Crore) and Rs 245.66 Crore in non-life insurance during financial year 2022-23.

Income Analysis

• The Interest income of the Bank stood at Rs.9355.11 Crore in the year 2022-23. Interest expenses stood at Rs.4609.83 Crore for FY2022-23. The Net Interest Income stood at Rs. 4745.28 Crore for FY2022-23.

• The Net Income from operations [Interest Spread plus Non-interest Income] stood at Rs.5502.09 Crore in the financial year 2022-23.

• The Operating Expenses registered an increase of Rs.50.82 Crore during the financial year 2022-23 and stood at Rs.3643.60 Crore as compared to Rs.3592.78 Crore in 2021-22.

• The Cost to Income ratio (Operating Expenses to Net Operating Income) stood at 66.22 percent in the financial year 2022-23.

Gross Profit

The Gross Profit for the financial year 2022-23 stood at

Dc 1QCQ A O

Provisions

The Provision for Loan Losses, Standard Assets, Taxation and others aggregated to Rs.661.11 Crore in the financial year 2022-23.

Net Profit/Loss

The Bank registered a Net Profit of Rs.1197.38 Crore for the financial year 2022-23.

Dividend

In view of the overall performance of the Bank and while retaining capital to support future growth, the Board at its meeting held on 4^th & 5^th May, 2023, recommended dividend of 50 per cent for the financial year 2022-23 for approval by the shareholders at the 85^th Annual General Meeting. If approved, the total outflow on account of dividend for the year 2022-23 will be Rs. 51.57 Crore. The record date for payment of dividend is mentioned in the notice of the ensuing 85^th AGM of the Bank. In terms of the Income Tax Act, 1961, the dividend income is taxable in the hands of the Members. Therefore, the dividend will be paid to the Members after deduction of applicable tax, if any.

In terms of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Bank has formulated and adopted a Dividend Distribution Policy with the objective of appropriately rewarding Shareholders through dividends while retaining the capital required for meeting regulatory capital requirements, maintaining adequate buffers and supporting its future growth. The said Policy has been hosted on the

website of the Bank at https://www.jkbank.com/investor/ stockExchangeIntimation/corporateGovernancepolicies.php.

Branch/ATM Network

During the financial year 2022-23, 10 new branches were established, thereby taking the number of branches to 990 (including IARBs) as on 31.03.2023, spread over 18 states and 4 union territories. The area-wise breakup of the branch network (excluding extension counters/ mobile branches and Service branches) on the basis of census 2011 as at the end of FY 2022-23 is as under:

During the financial year FY 2022-23, 5 EBUs/USBs were established taking the total number of EBUs/USBs to 82 and 17 ATMs were added taking the ATM network of the Bank to 1421 as on 31.03.2023.

Independent and Non-Independent Directors

• Non-Independent Executive Director

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

• Non-Independent Non-Executive Director

Mr. R K Chhibber is the Non-Independent Non-Executive Director of the Bank.

• Independent Non-Executive Director

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

1. Dr. Rajeev Lochan Bishnoi

2. Mr. Naba Kishore Sahoo

3. Mr. Umesh Chandra Pandey

4. Mr. Anil Kumar Goel

5. Mr. Anand Kumar

6. Ms. Shahla Ayoub

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

Appointments/Resignations from the Board of Directors

During the FY 2022-23, there were following changes in the composition of the Board:

• Mr. Vivek Bhardwaj, IAS (DIN: 02847409) was appointed as Govt. Nominee Director w.e.f May 17, 2022 in place of Mr. Atal Dulloo, IAS (DIN: 03542909).

• Dr. Mohmad Ishaq Wani (DIN: 08944038) ceased to be the Director on the Board of the Bank w.e.f. August 24, 2022 consequent upon his non-re-appointment at the 84^th Annual General Meeting of the Bank.

• Mrs. Sushmita Chadha (DIN: 02939808) resigned as an Independent Director on the Board of the Bank w.e.f. September 27, 2022 due to her personal reasons.

• Mr. Nitishwar Kumar (DIN: 05326456) resigned as a Director on the Board of the Bank w.e.f October 13,2022.

• Mr. Sudhir Gupta (DIN: 09614492) was appointed as an Executive Director on the Board of the Bank w.e.f. December 14, 2022

• Ms. Shahla Ayoub (DIN: 09834993) was appointed as Independent Director on the Board of the Bank w.e.f. December 26, 2022

• Mr. Vivek Bhardwaj, IAS (DIN: 02847409) ceased to be the Govt. Nominee Director on the Board of the Bank w.e.f. January 25, 2023 consequent upon withdrawal of his nomination by the Government of UT of Jammu and Kashmir.

During the year under review, Mrs. Sushmita Chadha, Independent Director and Mr. Nitishwar Kumar, IAS resigned from the Board of the Bank w.e.f. September 27, 2022 and October 13, 2022 respectively due to their personal reasons before the expiry of their tenure. Further, it has been confirmed by the said Directors that there were no material reasons other than personal reasons for their resignations.

The Board acknowledges the invaluable contributions rendered by the outgoing Directors during their tenure as Directors on the Board of the Bank and places on record deep appreciation for their invaluable contribution/ guidance as Members of the Board.

Changes in the Board of Directors after the Closure of Financial Year

Mr. Pawan Kotwal (DIN: 02455728) was appointed as an Additional Director on the Board of the Bank on July 24, 2023.

Directors seeking appointment/re-appointment at AGM

Mr. Pawan Kotwal (DIN: 02455728), Additional Director on the Board of Bank being eligible has offered himself for appointment as Director liable to retire by rotation. Mr. R K Chhibber (DIN: 08190084), who is retiring by rotation, has offered himself for re-appointment. The profile and necessary details of the above mentioned Directors have been included in the Corporate Governance Report.

Appointments/Resignations of the Key Managerial Personnel

Mr. Baldev Prakash, Managing Director & Chief Executive Officer, Mr. Sudhir Gupta, Executive Director, Mr. Pratik D Punjabi, Chief Financial Officer and Mr. Mohammad Shafi Mir, Company Secretary are the Key Managerial Personnel of the Bank.

Mr. Sudhir Gupta was appointed as Executive Director of the Bank in the Board meeting held on December 14, 2022. Mrs. Rajni Saraf was appointed as Chief Financial Officer of the Bank on April 27, 2022 in place of Mr. Balvir Singh Gandhi, who ceased to be the Chief Financial Officer of the Bank. Mr. Pratik D Punjabi was appointed as Chief Financial Officer of the Bank to be effective from the date of his joining i.e. July 01, 2022 in place of Mrs. Rajni Saraf, who ceased to be the Chief Financial Officer of the Bank after attaining the age of superannuation on June 30, 2022.

None of the Key Managerial Personnel has resigned during the year under review.

Changes in the Key Managerial Personnel after the Closure of Financial Year

There were no changes in the Key Managerial Personnel after the closure of Finalcial Year.

Number of Meetings of the Board

During the year under review, Seventeen (17) Board Meetings were held, in due compliance with statutory provisions, on the following dates:

08.04.2022, 27.04.2022, 12.05.2022, 16.06.2022,

28.06.2022, 13.07.2022, 10.08.2022, 24.08.2022,

26.09.2022, 21.10.2022, 15.11.2022, 14.12.2022, 26.12.2022,

23.01.2023, 20.02.2023, 06.03.2023, 15.03.2023.

Committees of the Board

The Bank has following Committees of the Board:

• Management Committee

• Audit Committee

• Special Committee of Board on Frauds

• Stakeholders Relationship Committee

• Information Technology Strategy Committee

• Corporate Social Responsibility & Environmental, Social and Governance Committee

• Integrated Risk Management Committee

• Customer Service Committee

• Nomination & Remuneration Committee

• Legal and Impaired Assets Resolution Committee

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

Performance Evaluation of the Board

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

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

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

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

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

The responses received to the questionnaires on evaluation of the Board, its Committees, individual Directors including Chairperson are consolidated and discussed by the Board.

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

Fiscal Year

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

Lead Bank Responsibility:

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

The Annual Credit Plan for UT of J&K for FY 2022-23 was launched on 1^st April 2022, envisaging a total credit target of Rs.50,790.08 Crore for 16,51,877 beneficiaries. During FY 2022-23 banks operating in UT of J&K have disbursed total credit of Rs.60,048.27 Crore in favour of 17,16,527 beneficiaries, registering an achievement of 118% in financial terms and 104% in physical terms. This includes disbursement of Rs. 26,411.85 Crore in favour of 9,60,347 beneficiaries against the annual target of Rs.40,342.37 Crore for 13,38,894 beneficiaries under Priority Sector and Rs.33,636.42 Crore in favour of 7,56,180 beneficiaries against the annual target of Rs.10,447.71 Crore for 3,12,983 beneficiaries under NonPriority Sector thereby registering achievement of 65% and 322% in financial terms respectively.

J&K Bank was assigned annual target of Rs.25,324.42 Crore for 8,32,205 beneficiaries under Priority and Non-Priority Sectors of economy during FY 2022-23 against which Rs.39,270.12 Crore were disbursed in favour of 12,14,233 beneficiaries registering an achievement of 155% in financial terms and 146% in physical terms.

During the FY 2022-23, following meetings were conducted:

• 7^th Meeting of J&K UTLBC held on 22^nd June, 2022 to review the performance of Banks/ FIs in UT of J&K in dispensation of credit and other banking services during the Financial Year ending 31^st March, 2022.

• 8^th Meeting of J&K UTLBC held on 19^th October, 2022 to review the performance of Banks/ FIs in UT of J&K during the quarter/ Half Year ending September, 2022.

• 9^th Meeting of J&K UTLBC held on 2^nd March, 2023 to review the performance of Banks/ FIs in UT of J&K during the quarter ending December, 2022.

For UT of J&K 147 villages were identified as Uncovered (Phase IV). All the 147 villages stand covered by banking touch points.

Department of Financial Services, MoF, GoI identified 363 unbanked villages with population more than 3000 across the Country for opening of Brick and Mortar branches and in the matter SLBCs/ UTLBCs were requested to allocate the locations among the member banks for opening of branches and monitoring the progress thereof. Out of the total 363 locations, 10 locations (Phase V) have been identified in seven districts of UT of J&K of which 7 villages stands covered.

Responsibility of setting up of RSETIs in UT of J&K:

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

Responsibility of setting up of FLCs in UT of J&K:

In terms of RBI guidelines for setting up of Financial Literacy Centres (FLCs) in all the districts of UT of Jammu and Kashmir, J&K Bank has made 12 FLCs operational in its 12 allocated lead districts viz. Srinagar, Ganderbal, Budgam, Baramulla, Bandipora, Kupwara, Anantnag, Kulgam, Pulwama, Shopian, Poonch and Rajouri and SBI having made 8 FLCs operational in its 8 allocated lead districts of UT of J&K, viz. Jammu, Samba, Kathua, Udhampur, Reasi, Doda, Ramban, Kishtwar. In addition, PNB, JKGB, EDB and J&K State Cooperative Bank have also established 6, 2, 2 & 1 FLCs respectively, in various districts of UT of J&K, which as on 31.03.2023 takes the total number of FLCs in the UT of J&K to 31. The performance of FLCs in conducting the Financial Literacy Camps as per the guidelines from RBI is being reviewed at various forums including quarterly UTLBC meetings.

100% Saturation Drive for KCC

Banks/ FIs in J&K have issued 54,929 fresh KCCs during FY 2022-23 involving an amount of Rs.557.23 Crore. This includes Rs.289.45 Crore disbursed in favour of 26,352 beneficiaries under KCC Crop and Rs.267.79 Crore to 28,577 beneficiaries under KCC-AH& F.

With the above achievement during FY 2022-23 the total number of active KCCs in J&K has reached to 9,28,504 as on 31.3.2023 with an outstanding credit of Rs.6,777.06 Crore.

Performance of Associate /Subsidiary Companies Subsidiary:

As on March 31, 2023, the Bank has one unlisted wholly owned subsidiary namely, JKB Financial Services Limited (JKBFSL) which was incorporated on August 27, 2008. JKB Financial Services Limited was floated with the objective to primarily meet the para-banking requirements of J&K Bank customers in particular and other customers of the UT of J&K in general. JKBFSL is a member of the National Stock Exchange of India

Limited (NSE) & The BSE Limited (BSE). As a leading broking entity in the Union Territory of J&K, JKBFSL at present provides a wide range of financial services to its clients which include;

Equity Broking Services: JKBFSL provides broking services in equity (cash/delivery, intra-day, futures and option). As a part of broking services offered by the company, JKBFSL also facilitates opening of DEMAT accounts for its clients.

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

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

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

Third Party Product Distribution: JKBFSL undertakes distribution of third party products like mutual funds and ETF''s according to its client''s requirements. The company provides such distribution through online channels as well as through the BSE Star Mutual Fund platform. JKBFSL has recently launched a mobile app called JKB mGrow, which offers better user interface and experience for distributing mutual fund products.

Performance highlights of the JKBFSL during the financial year 2022-23:

Income:

• The total income of the Company surpassed 100 Million mark during the financial year 2022-23 & grew by 6% from '' 991.25 lakhs to 1046.39 lakhs.

• Income from MTF (Margin Trade Funding) is ''255.91 lakhs for the financial year 2022-23 as compared to 180.42 lakhs in FY 2021-22 thereby registering a YoY growth of 42 %.

• Revenue from 3^rd party products has been marked as a growth area for the company.

The company has recorded AUM growth of around 82% on YoY basis and accordingly the mutual fund commission grew from '' 22.37 lakhs in 2021-22 to ''53.89 in 2022-23 thereby recorded a YOY growth of 141%.

• The income from Equity broking for the financial year 2022-23 is '' 510.55 lakhs & the cash market

trading volumes of the company during the year remained in line with the market.

• The depository income during the financial year 2022-23 reached at 121.57 lakhs.

Expenditure:

• The total expenses during the financial year 202223 is ''879.22 lakhs as compared to '' 590.03 lakhs in the previous financial year. Total expenditures have increased by 49% YOY basis. The substantial increase in the total costs on YOY basis was mainly because of employment costs due to regularisation of the services of employees of the company & investments made in technology platforms during FY 2022-23.

Profits:

• The Company registered a profit before tax of 167.16 lakhs during the given financial year and the net profit achieved was 120.65 lakh during the same period.

Associate:

Regional Rural Bank Sponsored by J&K Bank: J&K Grameen Bank

The J & K Grameen Bank ( JKGB) has come into existence on 30^th June 2009 with the issuance of statutory notification by Gol, MoF, Department of Financial Services under subsection (1) of section 23 (A) of the Regional Rural Banks Act, 1976 vide F. No. 1/4/2006-RRB providing for amalgamation of ''Kamraz Rural Bank'' and ''Jammu Rural Bank'' into a single new Regional Rural Bank under the name of J & K Grameen Bank with its Head Office at Jammu and has commenced business effective from 01.07.2009.

• Area of Operation:

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

No. of Branches

(as on 31^st March, 2023) : 215

No. of Employees

(as on 31^st March, 2023) : 1161

(includes 12 officials on deputation from J&K Bank - Sponsor Bank).

• Capital Structure:

In terms of the RRBs Act 1976, the authorized capital of Regional Rural Banks was fixed at '' 5.00 Crore (which stands amended to '' 2000 Crore in terms of the Regional Rural Banks (Amendment) Act, 2015 notified in the Gazette of India on 12-05-2015). The issued and paid up capital of the J&K Grameen Bank is '' 97.16 Crores fully subscribed by the Central Government, State/ UT Government and Sponsor Bank in the ratio of 50:15:35 respectively.

Besides during FY 2022-23 Bank has received an additional capital support of '' 287.79 Crores from its promoters in the prescribed ratio of 50:15:35 till March 31, 2023, which was kept under Share Capital Deposit Account. The details of Bank''s total Capital of '' 384.96

• Tier II Perpetual Bonds : Date of issue: 04-12-2014

Out of total cost outlay of Rs. 23.34 Crores for implementation of 100% CBS by JKGB, 50% i.e. '' 11.67 crore has been shared by J&K Bank (Sponsor Bank) in the form of perpectual debt (bonds).

Business Performance of the J&K Grameen Bank as on 31.03.2023

• Total Business:

The total business of the bank as on 31^st March 2023 stood at '' 8513.30 Crores against ''7646.50 Crores as on 31^st March 2022, thereby registering a growth of 11.34% during the financial year 2022-23.

• Deposits:

The deposits of the bank have increased from '' 4767.90 Crores to '' 5268.76 Crores during the financial year 2022-23 thereby registering a growth rate of 10.50%.

• Advances:

The gross advances of the Bank as on 31^st March 2023 stood at ''3244.54 Crores as against '' 2878.60 Crores as on the corresponding date of the previous year recording a growth of 12.71%.

• CD Ratio:

The C.D. Ratio of the bank has increased by 121 bps from 60.37% as on 31^st March 2022 to 61.58% as on 31st March, 2023.

• Priority Sector Advances:

The Priority Sector Advances outstanding as on 31^st March 2023 stood at '' 2595.45 Crores against '' 2327.61 Crores outstanding as on 31^st March 2022, registering a growth of 11.51 % on Y-o-Y basis. RRB specific benchmark of 75% portion of priority sector advances to total advances outstanding has been well maintained with 79.99% as on 31^st March, 2023.

• NPA Management:

Gross NPAs of the Bank as on 31^st March, 2023 stood at '' 147.51 Crores (4.55%) against '' 152.07 Crores (5.28%) as on 31^st March, 2022. Accordingly Net NPAs as on 31^st March, 2023 stood at '' 55.89 Crores (1.77%) against '' 69.75 Crores (2.49%) as on 31^st March, 2022.

• Business per Employee:

The business per employee as on 31^st March 2023 stood at '' 7.33 Crores against ''6.78 Crores as on corresponding date of the previous year.

• Business per Branch:

The business per branch as on 31^st March 2023 stood as ''39.60 Crores against '' 35.24 Crores as on corresponding date of the previous year.

• Profitability:

The Bank has incurred a net loss of '' 51.63 Crores as on 31^st March, 2023, which is mainly due to the pension provision liability of '' 117.61 Crores during the year 202223.

highways and other key locations across all major towns and areas of JKL and rest of the country.

Moreover, people-centric and environment-friendly initiatives commenced under CSR during FY2022-23 were properly highlighted to earn public goodwill, strengthen the trust and bond between Bank and its stakeholders, and create a continuity in the positive perception about the Bank.

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

Awards & Certifications received by the Bank during FY 2022-23

J&K Bank''s illustrious history of more than eight decades is decorated with awards and accolades. Over the years, the Bank has collected numerous honors in various categories. During the FY 2022-23, the Bank outperformed its competitors to grab the headlines in following categories;

1. Award from Housing and Urban Development Corporation Ltd (HUDCO) for its outstanding contribution towards housing sector under PM Awas Yojana for FY 2022-23.

2. Awarded as Best MSME Bank by Chamber of Indian Micro, Small and Medium Enterprises (CIMSME) at MSME Banking Excellence Awards

3. MSME Friendly Bank Award by CIMSME at MSME Banking Excellence Awards

4. Award for Government Schemes Implementing Bank by CIMSME at MSME Banking Excellence Awards

5. Best Branding Bank Award by CIMSME at MSME Banking Excellence Awards

6. Best Bank for Implementing COVID Schemes at MSME Banking Excellence Awards - 2022 organized by CIMSME

7. Award for outstanding performance in promoting digital payments at Digital Payments Utsav organized by Ministry of Electronics and Information Technology, Government of India at India New Delhi

8. CSO 100 Award - 2022 at CSO100 Awards & Symposium - 2022 from Foundry India, an Indian chapter of Foundry - an IDG Inc.

9. Special Cyber Security Award 2022 on Access and Identity Management for its Privilege and Customer Authentication Framework from Foundry India.

10. Certification of prestigious ISO 27001:2013 from Intertek - a reputed London-based Total Quality Assurance provider - for being compliant with the best industry standard in terms of privacy and security protocols.

Corporate Social Responsibility (CSR) Policy

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

The Bank, guided by the founding principles of its CSR policy, takes and encourages initiatives aimed at improving the lives and living conditions of the vulnerable sections of the society besides lending support to the society''s 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 FY2022-23, 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 FY2022-23 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 CSR&ESG Committee of the Board, including a report on the CSR, forms part of this report at Annexure 1. The key areas of intervention and the activities undertaken under CSR by the Bank during the FY 2022-23 are detailed as under:

Key areas of intervention under the CSR programme

a) Healthcare

b) Education

c) Community Development

d) Ecology & Environment

e) Employment Generation & Skill Development

f) Promotion of Sports

Details of activities undertaken under CSR during the FY

2022-23

Healthcare

Ambulance to Government Psychiatric Hospital Jammu

Realizing the indispensable role of ambulance services in emergency pre-hospital medical care, patient transfer, ease of access to health services particularly to underprivileged, the initiative of providing ambulance to the Psychiatric Hospital, Jammu under Corporate Social Responsibility (CSR) was taken up by the Bank.

The Govt. Psychiatric Diseases Hospital (GPDH) Jammu, a tertiary care hospital of psychiatric diseases catering to the whole Jammu division, had just one ambulance (8-year old) to cater to a huge rush of patients. Notably, the Hospital also provides 24-hour psychiatric emergency services on all days. The Ambulance provided under Bank''s CSR will go a long way in bettering the existing infrastructure of the hospital in so far as ''ferrying the patients and attend to the emergencies in the hospital and also to shift patients to GMC Jammu and associated hospitals round the clock'' is concerned.

Mobile Charging Stations in premier hospitals

In an attempt to ease the sufferings of general public, the Bank installed 45 Mobile Charging stations at three prominent government- run hospitals (SMHS Hospital Karan Nagar, Children''s Hospital Bemina and Lal Ded Maternity Hospital) of Srinagar city for convenience and facilitation of patients/ attendants visiting the Hospital''s OPD or those admitted in IPDs.

Installing phone-charging stations inside these hospitals will provide much needed relief and support to patients

and attendants alike especially in desperate times of health emergencies. Besides, the three premier health facilities apart from treating hundreds of admitted patients on daily basis, cater to a monthly OPD footfall of over two lakh people in a month, which further adds to the utility of such stations in these facilities.

Apheresis kits to children suffering from blood cancer and other blood dysfunctional diseases

The incidence of Blood Cancer has seen alarming rise in Kashmir valley over the years thereby necessitating the need for Apheresis Kits (Platelet/ Therapeutic kits with ACD and saline) to ensure treatment of the diagnosed patients. Pertinently, the poor and the under-privileged find it hard to mobilize finances for procurement of these kits, especially considering the fact that the treatment/expenditure for this disease is not covered under "Ayushman Bharat/Golden Card Scheme”.

The Bank Understanding the need collaborated with SK Institute of Medical Sciences Srinagar (SKIMSS), Srinagar, and provided apheresis kits to 90 deserving child patients suffering from cancer and other blood dysfunctional diseases so as to make a difference in the lives of these underprivileged patients.

Pertinently, SKIMSS is the only hospital in J&K that caters exclusively to the pediatric oncology patients from Jammu, Kashmir & Ladakh and treats around 350 pediatric cancer patients every year.

Sponsoring 50 TB patients from Kargil, Ladakh under Pradhan Mantri TB Mukt Bharat Abhiyan

The government of India under The Pradhan Mantri TB Mukt Bharat Abhiyaan is committed to eliminate TB in India by 2025. Struggling to achieve its TB elimination target, the Union Health Ministry launched a campaign inviting citizens, non-governmental organizations and the corporate sector to sponsor monthly food baskets for TB patients who require good quality nutrition to tame the infection in the month of September 2022. There are identified food baskets for adults and parents, which the sponsor can fund through the district-level officials managing the TB programme.

The Bank realizing the importance of this mission and in consonance with the Ministry of Health and Family Welfare, GOI''s directive for corporates and other organizations, collaborated with Kargil Health Authorities to provide such support to 50 TB patients for one year.

Construction of fabricated structure for convenience of patients and their attendants at ENT OPD of SMGS Hospital

Considering the Bank''s commitment towards community development and improving allied infrastructure related to healthcare with a larger objective of contributing our bit to add convenience to people, Bank undertook the project of constructing a fabricated structure on modern lines fitted with turbo ventilators to bring relief to the poor patients and their attendants waiting for their turn at the waiting area of ENT-OPD at SMGS Hospital, a leading government healthcare facility in Jammu city that caters to the health assistance needs of tens of thousands of patients annually.

Education

Setting up of Computer Laboratory at Bhartiya Vidya Mandir, High School Udhampur

To complement the efforts of Bhartiya Shiksha Samiti J&K in the field of education, Bank, after assessing the need, set up a computer lab for the benefit of underprivileged students receiving education from its Udhampur based Bhartiya Vidya Mandir High School, located on the banks of holy Devika River in Nianso village.

In place to mention that Bhartiya Vidya Mandir High School Udhampur is one of the 36 schools run by Bhartiya Shiksha Samiti across the UTs of J&K and Ladakh (most of these schools are located in remote areas like Kishtwar, Doda, Leh & Kargil districts). A reputed NGO, registered with Ministry of Corporate Affairs for undertaking CSR activities, Bhartiya Shiksha Samiti is working in the field of education and is running a chain of schools for the students belonging to poor and weaker sections of society. Samiti provides basic infrastructure in most of these schools like transport facility, furniture, science laboratories, computer labs, libraries, meeting halls etc. These schools called as ''Bhartiya Vidya Mandirs'' provide quality education to the students by creating a healthy educational and cultural atmosphere.

The students of the said school, right from pre-primary to tenth class, were found to be in dire need of computer lab as the school has only four old computers for the use of students. Moreover, the computer lab will help students of 30 villages living in and around Udhampur town to connect with digital teaching-learning process along with other government & private school students.

Pertinently, the computer lab will have 20 - 25 PCs, one UPS for uninterrupted power supply to meet the lab requirements, one 3-in-1 color-printer and two 3-in-1 black and white printers.

Community Development

100 Wheelchairs and 100 Tricycles to the specially-abled persons

Jammu and Kashmir Bank has always contributed to the development of local communities in different capacities and varied ways. On these lines, Bank collaborated with SAKSHAM, a leading national level not-for-profit organization to provide 100 wheelchairs and 100 special tricycles to the specially-abled persons belonging to various districts of Jammu region and beyond. The initiative is primarily aimed at contributing Bank''s bit towards the welfare and development of specially-abled community and to ensure their physical, social and psychological rehabilitation.

Upgrading of facilities at Sainik Bhawan Srinagar

Conscious of the sacrifices rendered by the armed forces for the security of the nation, Bank considers itself duty bound to contribute its bit in complimenting Government and society''s efforts towards looking after the families of the martyred soldiers. It was towards this end that Bank provided one 1.5 ton Air Conditioner (Hot and Cold) and one Water Purifier to Sainik Bhawan Srinagar, the organization engaged in welfare activities carried out for the families of 115 forces Martyrs of the Valley.

Upgrading of facilities at Balgran Jammu

Contributing towards the welfare of lesser privileged children, Bank collaborated with Balgran, Jammu (a charitable home

for destitute children), which provides boarding/lodging, education, healthcare, vocational training etc. to orphan and destitute children.

Bank provided 380 sitting chairs to Balgran for upgrading their furniture-infrastructure as a humble contribution of Bank towards the noble cause of Child welfare.

Ecology & Environment Plantation drives

As part of enhancing environment sustainability, Bank collaborated with Border Security Force (BSF) in undertaking a plantation drive at its Subsidiary Training Center (STC) at Humhama Srinagar that encompasses an area of over 300 acres. The Bank provided plant stems of apple, almond, walnut, cherry and pear with an aim to improving green cover in this ecologically sensitive area. The initiative assumes greater importance as the green cover through plantation will go a long way in protecting not only the campus residents from the ill effects of pollution but also the people living in the adjoining areas.

A similar plantation drive was carried out in collaboration with Rahim Greens Srinagar and pine & apple trees were planted at different educational institution in Srinagar which included NIT Srinagar, Women''s Degree College Zakura, etc

Installation of 15KW Solar Grid at Voluntary Medicare Society''s Srinagar facility

Bank installed a 15KW solar power grid at Voluntary Medicare Society, Srinagar, a Srinagar based medico-social voluntary organization (registered with Ministry of Corporate Affairs for mobilizing CSR funds), dedicated to the care, treatment, education, rehabilitation and empowerment of physically and mentally challenged persons of all the factions of the society. For over 50 years, VMS is providing its services in all the districts of J&K and Ladakh UTs. VMS provides institutional and community based rehabilitation services to the needy persons with disabilities with focus on children and women. Apart from attending to 85 on-roll and over 300 off-roll specially-abled students per month, VMS provides medical treatment to almost 2000 patients per month, including children with special needs, in their Srinagar based facility.

As most of the equipment-oriented services provided at their facility run on electricity and given the frequent interruptions in the power supply, along with huge energy cost involved to run these machines and equipment, providing undisturbed services to the patients and students becomes really difficult. As such, the Bank keeping in view long-term viability, utility and also sustainability issues into consideration, installed the solar grid at its Srinagar facility spanned over 46 Kanals of land.

The initiative while ensuring support to the specially-abled people especially children and women serves the larger purpose of encouraging and promoting clean and green energy resources.

E-Rickshaws to the University of Ladakh and Kashmir University''s South Campus

Sensitive to the value and importance of protection of environment for sustenance of the economic and social progress of a country, J&K Bank, notwithstanding meagre

Corporate Governance

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

Management Discussion and Analysis

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

Whistle Blower Policy & Vigil Mechanism

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

https://www.jkbank.com/investor/stockExchangeIntimation/

corporateGovernancepolicies.php

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

The grievance under Whistle Blower mechanism can be lodged on the Bank''s official website under link:

https://www.jkbank.com/others/common/wbGrievences.php

It is hereby affirmed that the Bank has not denied any of its personnel access to the Chairman of the Audit Committee of the Board and that the policy contains adequate provisions for protecting whistle blowers from unfair termination and other unfair prejudicial employment practices. In the FY 2022-23, three (03) complaints received under Whistle Blower Mechanism were placed before the Audit Committee of Board.

Protected Disclosures Scheme

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

Bank of India (RBI) will be the Nodal Agency to receive complaints under the Scheme.

The complaint under the scheme should be sent in a closed/ secured envelope addressed to The Chief General Manager, Reserve Bank of India, Department of Banking Supervision, Fraud Monitoring Cell, Third Floor, World Trade Centre, Centre 1, Cuffe Parade, Mumbai 400 005. The envelope should be superscripted "Complaint under Protected Disclosures Scheme for Banks”. Complaints can also be made to RBI through e-mail: [email protected] by giving full details as specified above.

The policy document is available on the intranet page of the bank as well as on the Bank''s official website under link https:// www.ikbank.com/pdfs/policy/latest/Policy protected.pdf It is hereby affirmed that No unfair treatment will be meted out to a Complainant by virtue of his/her having reported a Disclosure under this Policy. The Bank, as a policy, condemns any kind of discrimination, harassment, victimization or any other unfair employment practice being adopted against Complainant(s). Complete protection will, therefore, be given to Complainant(s) against any unfair practice like retaliation, threat or intimidation of termination/suspension of service, disciplinary action, transfer, demotion, refusal of promotion, including any direct or indirect use of authority to obstruct the Complainant''s right to continue to perform his duties/ functions including making further Disclosure under the policy. The Bank has not received any complaint under the "Protected Disclosure Scheme”.

Risk Management

A well-defined, comprehensive risk management framework of our bank is based on a clear understanding of different risks, accepting various risks, disciplined risk assessment, measurement & continuous monitoring. The Bank has put in place a Risk Management and Risk Appetite Framework (RAF) that articulates the risk appetite and drills down the same into a limit framework for various risk categories. Risk appetite defines the levels and types of risk that are acceptable, within risk capacity, in order to achieve strategic obiectives and business plans. The risk appetite framework, which is approved by the Board, bolsters effective risk management by promoting sound risk-taking through a structured approach, within agreed boundaries. The key components of the Bank''s Risk Management architecture rely on the risk governance structure, comprehensive processes and internal control mechanism based on approved policies and guidelines. The Bank''s risk management processes are guided by way of policies adopted appropriately for various risk categories, independent risk oversight and periodic monitoring by Board of Directors, Committee of the Board of Directors (Integrated Risk Management Committee of Board) and Senior Management Committees - Credit Risk Management Committee, Market Risk Management Committee, Operational Risk Management Committee and Asset Liability Committee (ALCO). The policies approved from time to time by Board of Directors, Committees of Board (IRMC) form the basis for governing framework for each type of risk. The Board sets the overall risk appetite and philosophy for the Bank and have an oversight of all the risks assumed by the Bank. The Bank''s Risk Management framework focuses on the management of key areas of Risk such as

Credit, Market, Operational Risk and Liquidity Risk and Pillar II risks; quantification of these risks, wherever possible. The risk management function in the Bank strives to proactively anticipate vulnerabilities in the business operations through quantitative or qualitative examination of the embedded risks for effective and continuous monitoring and control. An independent risk management function ensures that risk is managed through a risk management architecture as well as through policies and processes approved by Board of Directors. The risk management policies and procedures established are updated on continuous basis in compliance to RBI guidelines and benchmarked to best practices. The Board of Directors with its committee-Integrated Risk Management Committee (IRMC) reviews risk management policies of the Bank pertaining to credit, market, liquidity, operational & Pillar II risks that includes strategic risk and reputational risk, Internal Capital Adequacy Assessment Process (ICAAP) and stress testing. The senior Management Committees - Credit Risk Management Committee (CRMC), Operational Risk Management Committee (ORMC) and Market Risk Management Committee (MRMC) for credit risk, operational risk and market risk operate within the broad risk management framework of the Bank to assess and minimize these risks. Bank has an independent Risk Management vertical headed by Chief Risk Officer, who reports to IRMC of Board and monitors the development and implementation of methodologies for risk identification, assessment, measurement, monitoring and mitigation for all risks. Information security and business continuity plan also forms part of risk management functions in the Bank. Treasury activities are separately monitored by mid office, which reports to Risk Management Vertical. The Bank has Stress Testing Policy to measure impact of adverse stress scenarios on the adequacy of capital. The stress scenarios are idiosyncratic, generic and a combination of both.

Business Responsibility and Sustainability Report (BRSR)

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

Information under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

The Bank does not engage in any form of child labour / forced labour / involuntary labour and does not adopt any discriminatory employment practices. The Bank has a Policy against sexual harassment and a Committee "Internal Complaints Committee for Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace” has been constituted for dealing with complaints of harassment or discrimination. The said policy is in line with relevant Act passed by the parliament in 2013. The Bank, through the policy ensures that all such complaints are resolved within defined timelines. During the year, one complaint was lodged before the Internal Complaints Committee duly constituted under the Sexual Harassment of Women at Work Place (Prevention

and Redressal) Act, 2013 and the rules made thereunder. Accordingly, due inquiry proceedings were conducted in the case, as stipulated in the Act and adequate opportunity was provided to both complainant and respondent to present/ defend their case. The same was disposed of within the requisite time frame of 90 days.

Employee accidental deaths

During the year 2023, there were no occurrences of employee accidental death at the workplace.

Loans, Guarantees & Investment in Securities

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

Contracts or Arrangements with Related Parties

Considering the nature of the Industry in which the Bank operates, transactions with related parties of the Bank are in the ordinary course of business and are also at arm''s length basis. There was no materially significant related party transaction entered by the Bank with promoters, Directors, Key managerial personnel or other persons which may have a potential conflict with the interests of the Bank. The policy on Related Party Transactions and dealing with related parties as approved by the Audit Committee and the Board of Directors is uploaded on the website of the Bank and the link for the same is at https://www.jkbank.com/investor/ stockExchangeIntimation/corporateGovernancepolicies.php Statement of related party transactions under sub section (1) of Section 188 of the Companies Act, 2013 is attached herewith as Annexure 5.

Information under Insolvency and Bankruptcy Code, 2016

The Bank as on 31^st March, 2023 has cases under the IBC resolution, the details whereof along with existing status is tabulated as under:

Frauds reported by the Bank

The Bank during the financial year 2022-23 has detected/ reported 20 cases of frauds to Reserve Bank of India involving an amount of Rs. 380.04 Crores.

Frauds reported by Auditors

During the year under review, no fraud was reported by any of the statutory auditors under Section 143 (12) of the Companies Act, 2013 to the Ministry of Corporate Affairs, Govt. of India.

Consolidated Financial Statements

Pursuant to Section 129 of the Companies Act, 2013, the Bank has prepared Consolidated Financial Statements of the Bank, its Subsidiary (JKB Financial Services Ltd.) and also its Associate (J&K Grameen Bank) which shall be laid before shareholders at the 85^th Annual General Meeting of the Bank along with Bank''s Financial Statements under sub-section (2) of Section 129 i.e. Standalone Financial Statements of the Bank. Further, pursuant to the provisions of Accounting Standard (AS) 21 - Consolidated Financial Statements notified under Section 133 of the Companies Act 2013, read with Rule 7 of the Companies (Accounts) Rules 2014 issued by the Ministry of Corporate Affairs, the Consolidated Financial Statements of the Bank along with its Subsidiary/ Associate for the year ended March 31, 2023 form part of this Annual Report. The statement in form AOC-1 pursuant to first proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules 2014 is annexed as Annexure-4.

Statutory Auditors

The Statutory Central and Branch auditors of the Bank are appointed by the Comptroller & Auditor General of India (C&AG) pursuant to Section 139 (5) of the Companies Act, 2013. The Bank had three (3) Statutory Central Auditors appointed by the C&AG of India for the year under report as given below:

1. O Aggarwal & Co, Chartered Accountants

2. Dharam Raj & Co, Chartered Accountants

3. Arora Vohra & co, Chartered Accountants

Compliance with Secretarial Standards

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

Employee Remuneration

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

Statutory Disclosures

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

A. Conservation of energy

(i) The steps taken or impact on conservation of energy. Bank is continuously working towards achieving low carbon footprint for which many steps have been taken including use energy efficient IT equipment Various initiatives taken in this regard by the bank are given below:

• The Bank''s Data Center is strategically located in a high-energy-efficient hosting facility in Noida. The facility adheres to an ITIL-based service delivery framework, ensuring efficient operations and optimal service levels. Furthermore, it complies with internationally recognized standards such as ISO 9001 and ISO 20000, emphasizing the commitment to quality management and IT service management. This choice of hosting facility not only ensures the security and reliability of the Bank''s data infrastructure but also contributes to energy conservation initiatives through its efficient design and operational practices.

• Bank''s Disaster Recovery Center has been shifted to a new co-location site CtrlS located in Navi Mumbai, which is Asia''s Largest Rated

4 Hyper scale Datacenter aligned to TIA-942 standard having strong focus on various environmental considerations. The new Facility is USGBC LEED Platinum Certified Rated4 Datacenter and is World''s 1st DC to Win Golden Peacock Eco-Innovation Award.

• The Bank has taken a proactive stance towards environmental sustainability and energy conservation by implementing an e-Office solution. This initiative aims to significantly reduce paper consumption, minimize the reliance on printers, and conserve energy resources. By transitioning to a digital work environment, the Bank not only improves operational efficiency and streamlines processes but also demonstrates its commitment to reducing its carbon footprint.

• The Bank has increased the usage of Digital Signage Screens as an energy-efficient alternative to traditional paper-based notices. By adopting this technology, the Bank significantly reduces the energy consumption associated with printing, distribution, and disposal of paper notices. The Digital Signage Screens are designed with energy-saving features, such as low-power LED displays, which contribute to overall energy conservation efforts.

• Energy star compliant computing and communication hardware is used by the bank across all offices and banking outlets.

• The bank ensures the use of Energy Star compliant computing and communication hardware across all its offices and banking outlets, actively reducing power consumption and promoting energy conservation.

(ii) The steps taken by the company for utilizing alternate sources of energy.

Bank operates in a non-energy intensive environment.

However, it is always ensured that energy efficient hardware / equipment which consumes less power is procured and put in operation. Besides replacement of CFL Lamps with LED Lamps / fixtures wherever needed stands changed.

(iii) The capital investment on energy conservation equipment.

Bank is steadfast in its commitment to implementing energy conservation measures throughout the enterprise. This includes the utilization of energy-efficient equipment such as virtual servers, thin clients, multi-purpose printers, kiosks, and scanners. By incorporating these technologies, the bank aims to minimize energy consumption and promote sustainability across its operations.

(iv) Paperless e-Office Initiative.

Bank has successfully adopted paperless e-Office across all departments at corporate office and is in process of adopting the initiative across enterprise.

(v) USGBC LEED Platinum Certified Rated 4 Datacenter (World''s 1st DC to Win Golden Peacock Eco-Innovation Award).

Bank successfully relocated its Disaster Recovery Center to CtrlS, a state-of-the-art co-location site in Mumbai. This new site is recognized as Asia''s largest rated LEED Platinum V4 O M Certified Rated 4 Hyperscale Datacenter, ensuring top-notch environmental sustainability and operational efficiency. The new Facility is USGBC LEED Platinum Certified Rated4 Datacenter and is World''s 1st DC to Win Golden Peacock Eco-Innovation Award.

B. Technology Absorption

Our Bank has a strong commitment to simplifying banking experiences for our customers by focusing on technology driven new business initiatives. These initiatives are aimed at delivering value through continuous technology adoption and innovation. Throughout the year, the Bank has implemented number of initiatives leveraging the power of technology to enhance the overall banking experience for its customers.

Bank has successfully upgraded its core banking system to the newest version (Finacle 10). This upgrade has introduced new automation capabilities, enabling the Bank to drive new and innovative business initiatives. Several initiatives have already been implemented, leveraging the enhanced features, while additional projects are currently underway to further leverage the system''s capabilities and support the Bank''s digital transformation goals.

The bank successfully launched its flagship digital offering, "J&K Bank Instant Digital Loan,” catering to the unique needs of employees belonging to the J&K Government and other organizations/institutions covered by existing Memorandums of Understanding (MOUs). This state-of-the-art solution, built on a robust Straight through Processing (STP) platform, represents a significant upgrade from the previous "Phone pe Loan” facility. By leveraging advanced automation and selfservice capabilities, customers can now enjoy a seamless and hassle-free loan application process. This end-to-end digital solution empowers customers to apply for loans online, eliminating the need for manual paperwork and reducing processing time. With a focus on providing the best personal retail lending experience, the "J&K Bank Instant Digital Loan” ensures convenience, speed, and transparency throughout the entire loan journey.

Bank has started complete revamp of its customer facing digital platforms including Mobile Banking, Internet Banking and Kiosk Banking. A Modern and resilient mobile banking application will be rolled out in this Financial Year which will be scalable to handle daily transaction load in crores besides being loaded with features like corporate banking, online loan processing, deposit management, customer digital engagements etc. The mobile banking UI would be one stop shop for catering to all customer requirements of banking and wealth management like gold, mutual funds, insurance etc., besides acting as customer engagement platform for other services and grievance management. A cloud based UPI /IMPS solution will also be rolled out this year through which our bank will be offering interoperable and scalable payment solutions through the UPI/IMPS ecosystem which will also converge under the new Mobile Banking application.

The bank has also invested in AI/ML Technology and we have rolled out first version of Chatbot & WhatsApp Banking through Online Personal Assistant "JIA”. The application in its first phase is being used by our valuable customers to get their financial queries answered, and the bank is in process of adding more services to the Chabot /WhatsApp banking platform to enrich the customer experience as per their dynamically changing needs.

Bank has setup a Fintech Initiative and Cloud Adoption Programs, and in the ensuing financial year it will start with deployment of an Open Banking Platform for seamless interfacing with partners and customers, and also initiate the Cloud Migration of selective applications besides deployment of new applications over cloud as part of its Pilot Cloud Program.

C. Foreign Exchange Earnings and Outgo:

The Foreign Exchange earned in terms of actual inflows during the year and the Foreign Exchange outgo during the year in terms of actual outflow: During the Year ended 31.03.2023 the Bank earned Rs.95.98 lacs and spent Rs.182.45 lacs in foreign currency. This does not include foreign currency cash flow in derivatives and foreign currency exchange transactions.

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

3. Number of cases filed, if any and their disposal under Section 22 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:

Your Bank has Zero tolerance towards any action on the part of any executive/employee which may fall under the ambit of ''Sexual Harassment'' at workplace, and is fully committed to uphold and maintain the dignity of every women executive/ employee working in the Bank. Only one complaint of sexual harassment was lodged with the Internal Complaints Committee during the year 2022-23 and the same was disposed off within the required time frame of 90 days.

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

Annual Return

In accordance with the provisions of Companies Act, 2013, the Annual Return of the Bank for the financial year 2022-23 in the prescribed Form MGT-7 will be available on the website of the Bank at: https://www.jkbank.com/investor/financials/ annualReturns.php.

Directors Responsibility Statement

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

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

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

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

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

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

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

Adequacy of Internal Financial Controls related to Financial Statement

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

environment of the Bank is adequate enough to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Bank''s financial statements. The processes and controls are reviewed periodically.

Requirement for maintenance of Cost Records

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

CEO & CFO Certification

Certificate issued by Mr. Baldev Prakash, MD & CEO and Mr. Pratik D Punjabi, CFO of the Bank, for the financial year under review, was placed before the Board of Directors at its meeting held on 04^th / 5^th May, 2023 in terms of the Regulation 17(8) of the Listing Regulations.

Important events after the closure of Financial Year ended 31-03-2023

This report covers the period of financial year of the Bank beginning on 1^st April, 2022 to 31^st March, 2023. However, few material events listed below happened from 1^st April, 2023 till the date of this report.

1. Reserve Bank of India (RBI) has by an order dated June 22, 2023 (received by us on June 23, 2023) imposed a monetary penalty of ''2.50 crores on the Bank for non-compliance with certain directions issued by RBI on ''Creation of a Central Repository of Large Common Exposures-Across Banks'', read with ''Central Repository of Information on Large Credits (CRILC) - Revision in Reporting'', ''Loans and Advances - Statutory and other Restrictions'' and ''Time-bound implementation and strengthening of SWIFT-related operational controls''. The said penalty has been imposed by the RBI in exercise of powers vested under the provisions of section 47 A (1) (c) read with section 46 (4) (i) of the Banking Regulation Act, 1949.

2. Dr. Pawan Kotwal, IAS (DIN: 02455728) was appointed as an Additional Director in the category of Rotational Directors by the Board of Directors of the Bank in their meeting held on 24^th July, 2023.

Transfer of Shares to UT of Ladakh

The J&K Govt. General Administration Department S.O. No. 339 dated 30/10/2020 apportioned the Assets, Liabilities and Posts of the erstwhile State of Jammu and Kashmir between the Union Territory of Jammu and Kashmir and Union Territory of Ladakh w.e.f. 31.10.2020. As per the said notification 8.23% shareholding of Jammu & Kashmir Bank Ltd. consisting of 4,58,29,445 shares which amounts to 13.89% of the shareholding of the erstwhile state of Jammu and Kashmir as on 31.10.2019 were to be transferred to the UT of Ladakh and the then remaining 51% of shareholding of erstwhile Jammu and Kashmir state would remain with the UT of Jammu and Kashmir. The UT of Jammu and Kashmir has completed the transfer of the said 4,58,29,445 shares to UT of Ladakh on February 10, 2023.

Acknowledgements

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

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

For and on behalf of the Board of Directors

Naba Kishore Sahoo Baldev Prakash

Independent Director MD & CEO

Place: Srinagar (J&K)

Date: July 15, 2023

Your Board of Directors has pleasure in presenting the 84^th Annual Report of your Bank, together with the audited Balance Sheet, Profit and Loss Account and the report on business and operations for the year ended 31^st March, 2022.

Performance at a Glance

• The aggregate business of the Bank stood at Rs. 185111.06 Crore at the end of the financial year 2021-22.

• The total deposits of the Bank grew by Rs. 6649.23 Crore from Rs.108061.15 Crore as on 31^st March, 2021 to Rs. 114710.38 Crore as on 31^st March, 2022, a growth of 6.15 percent.

• CASA deposits of the Bank stood at Rs. 64874.61 Crore and constituted 56.56 percent of total deposits of the Bank.

• Cost of deposits for the FY 2021-22 stood at 3.65 percent.

• The net advances of the Bank stood at Rs. 70400.68 Crore as on 31^st March, 2022.

• Yield on advances for the FY 2021-22 stood at 8.32 percent.

• Average Priority Sector advances stood at Rs. 33982.00 Crore as on 31^st March, 2022.

• The Bank effected cumulative cash recovery, up-gradation of NPA''s and technical write-off of Rs. 2939.28 Crore during FY 2021-22.

• Investment portfolio of the Bank stood at Rs. 33834.99 Crore as on 31^st March, 2022.

Insurance Business

The Bank earned a commission income of Rs 62.13 Crore from Insurance Business by mobilizing a business of Rs 477.79 Crore in life insurance (including fresh retail life business of Rs 133.94 Crore, Credit life business of Rs 82.85 Crore and renewal business of Rs 261 Crore) and Rs 223.99 Crore in non-life insurance during financial year 2021-22.

Income Analysis

• The Interest income of the Bank stood at Rs.8013.48 Crore in the year 2021-22. Interest expenses stood at Rs. 4102.25 Crore for FY2021-22. The Net Interest Income stood at Rs. 3911.23 Crore for FY2021-22.

• The Net Income from operations [Interest Spread plus Non-interest Income] stood at Rs. 4692.16 Crore in the financial year 2021-22.

• The Operating Expenses registered an increase of Rs.714.24 Crore during the financial year 2021-22 and stood at Rs.3592.78 Crore as compared to Rs. 2878.54 Crore in 2020-21.

• The Cost to Income ratio (Operating Expenses to Net Operating Income) stood at 76.57 percent in the financial year 2021-22.

Gross Profit

The Gross Profit for the financial year 2021-22 stood at Rs. 1099.38 Crore.

Provisions

The Provision for Loan Losses, Standard Assets, Taxation and others aggregated to Rs.597.82 Crore in the financial year 2021-22.

Net Profit/Loss

The Bank registered a Net Profit of Rs.501.56 Crore for the financial year 2021-22.

Dividend

In terms of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Bank has formulated and adopted a Dividend Distribution Policy with the objective of appropriately rewarding Shareholders through dividends while retaining the capital required for supporting its future growth. The said Policy has been hosted on the website of the Bank at https://www.jkbank.com/pdfs/ policy/Dividend%20Distribution%20Policy.pdf In order to conserve/ augment capital base of the Bank, your Directors do not recommend any dividends for the financial year 202122.

Branch/ATM Network

During the financial year 2021-22, 25 new branches were established, thereby taking the number of branches to 980 (including IARBs) as on 31.03.2022, spread over 18 states and 4 union territories. The area-wise breakup of the branch network (excluding extension counters/ mobile branches and Service branches) on the basis of census 2011 as at the end of FY 2021-22 is as under:

During the financial year FY 2021-22, 6 EBUs/USBs were established taking the total number of EBUs/USBs to 77, 21 ATMs were commissioned thereby taking the number of ATMs to 1404 as on 31.03.2022.

Capital

The capital management framework of the Bank includes a comprehensive internal capital adequacy assessment process conducted periodically, which determines the adequate level of capitalization needed to meet regulatory norms and current and future business needs.

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

In order to comply with the requirements of section 12(1) (i) of the Banking Regulation Act, 1949, the authorized capital of the Bank was reduced from '' 250,00,00,000 to '' 185,00,00,000 after seeking Shareholders/ Reserve Bank of India approval.

As at March 31, 2022, the Subscribed and Paid-up Capital of the Bank stood at Rs.93,28,86,594.00 comprising of 93,28,86,594 equity shares, which is 21,94,35,656 equity shares more than as at March 31, 2021. The said capital was raised by way of:

• Allotment of 16,76,72,702 equity shares at a price of Rs.29.82 to Government of Jammu and Kashmir on preferential basis amounting to a total of Rs. 499,99,99,973.64, and

• Allotment of 5,17,62,954 equity shares at a price of Rs. 28.97 to the eligible employees of the Bank under J&K Bank Employee Stock Purchase Scheme, 2021 (JKBESPS 2021) amounting to a total of Rs.149,95,72,777.38.

The Bank also allotted 2,85,93,267 equity shares at a price of Rs. 32.70 which was at a discount of 4.97% (i.e. Rs 1.71 per equity share) to the Qualified Institutional Buyers (QIB) aggregating to a total amount of Rs. 93,49,99,830.90. The Issue opened on March 28, 2022 and closed on March 31, 2022. The allotment was, however, made on April 01, 2022.

Net Worth and Capital Adequacy Ratio (CRAR)

• The Net Worth of the Bank stood at Rs.7063.82 Crore on 31^st March 2022.

• Capital Adequacy Ratio under Basel III stood at 13.23 percent as on March, 2022. The tier I component of CRAR is 11.73 percent as on 31^st March 2022.

• Book Value per Share for the financial year 2021-22 stood at Rs.75.72.

Board of Directors

Your Bank has Eleven (11) Directors consisting of MD & CEO and 10 Non-Executive Directors as on 31^st March, 2022.

Non-Independent Executive Director

Mr. Baldev Prakash, Non Independent Executive Director has been serving as the MD & CEO of the Bank since December 30, 2021, with the approval of The Reserve Bank of India (RBI).

Non-Independent Non-Executive Director

1) Mr. Atal Dulloo, IAS, Financial Commissioner (Additional Chief Secretary) to Govt. of J&K, Finance Department,

2) Mr. Nitishwar Kumar, IAS, Principal Secretary to Lt. Governor Govt. of J&K,

3) Mr. R K Chhibber

4) Mr. Mohmad Ishaq Wani

Independent Non-Executive Director

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

1. Dr. Rajeev Lochan Bishnoi

2. Mr. Naba Kishore Sahoo

3. Mr. Umesh Chandra Pandey

4. Mr. Anil Kumar Goel

5. Mrs. Sushmita Chadha

6. Mr. Anand Kumar

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

Appointments/Resignations from the Board of Directors

During the FY 2021-22, there were following changes in the composition of the Board:

• Mr. Rigzian Sampheal, IAS, (DIN: 08157221) ceased to be the Director on the Board of the Bank w.e.f April 21, 2021 consequent upon his resignation from the Board of Directors of the Bank.

• Mr. Atal Dulloo, IAS (DIN: 03542909) was appointed as Govt. Nominee Director w.e.f September, 01, 2021 in place of Dr. Arun Kumar Mehta, IAS (DIN: 02712778).

• Mr. Vikram Gujral (DIN: 03637222) ceased to be Director on the Board of the Bank w.e.f September 30, 2021 consequent upon his non re-appointment at the 83^rd Annual General Meeting of the Bank.

• Mr. Baldev Prakash (DIN: 09421701) was appointed as a Govt. Nominee Director on December 27, 2021 and further as Managing Director and CEO (''MD&CEO'') of the Bank to be effective from the date of his actual joining. Upon his joining as the MD&CEO of the Bank on December 30, 2021, Mr. R K Chhibber ceased to be Chairman and Managing Director of the Bank.

• Mr. Anil Kumar Misra (DIN: 08066460) ceased to be RBI appointed Additional Director on the Board of the Bank w.e.f January 04, 2022 consequent upon withdrawal of his nomination by The Reserve Bank of India.

• Dr. Rajeev Lochan Bishnoi (DIN: 00130335) and Ms. Monica Dhawan (DIN: 01963007) ceased to be Independent Directors on the Board of the Bank w.e.f January 11, 2022 consequent upon completion of their terms.

• Dr. Rajeev Lochan Bishnoi (DIN: 00130335) was appointed as an Independent Director on the Board of the Bank for a second term w.e.f. January 21, 2022.

• Mr. Umesh Chandra Pandey (DIN: 01185085) and Mr. Anil Kumar Goel (DIN: 00672755) were appointed as Independent Directors on the Board of the Bank w.e.f January 21, 2022.

• Mrs. Sushmita Chadha (DIN: 02939808) was appointed as an Independent Director on the Board of the Bank w.e.f January 31, 2022.

• Mr. Naba Kishore Sahoo (DIN: 07654279) was reappointed as an Independent Director on the Board of the Bank w.e.f March 01, 2022.

• Mr. Anand Kumar (DIN: 03041018) was appointed as an Independent Director on the Board of the Bank w.e.f March 03, 2022.

During the year under report, no Independent Director resigned before the expiry of his/her tenure.

Changes in the Board of Directors after the Closure of Financial Year

Mr. Vivek Bharadwaj, IAS (DIN: 02847409) was appointed as Government Nominee Director vide order no. 567-JK(GAD) of 2022 dated May 17, 2022 on the Board of the Bank in place of Mr. Atal Dulloo, IAS (DIN: 03542909) w.e.f May 17, 2022.

Directors seeking appointment/re-appointment at AGM

Mr. Rajesh Kumar Chhibber (DIN: 08190084), Additional Director on the Board of Bank being eligible has offered himself for appointment as Director liable to retire by rotation. Dr. Mohmad Ishaq Wani (DIN: 08944038) who is retiring by rotation, has offered himself for re-appointment. The profile and necessary details of the above mentioned Directors have been included in the Notice & Corporate Governance Report.

Number of Meetings of the Board

During the year under review, Fourteen (14) Board Meetings were held, in due compliance with statutory provisions, on the following dates:

04.06.2021, 17 & 18.06.2021, 13.08.2021, 02.09.2021, 13 & 14.09.2021, 18.10.2021, 12.11.2021, 16.11.2021, 28.12.2021,

21.01.2022, 31.01.2022, 08.02.2022, 03.03.2022 and

17.03.2022,

Committees of the Board

During the period under review, the Bank had following Committees of the Board:

• Management Committee

• Audit Committee

• Special Committee of Board on Frauds

• Stakeholders Relationship Committee

• Information Technology Strategy Committee

• Corporate Social Responsibility Committee

• Integrated Risk Management Committee

• Customer Service Committee

• Nomination & Remuneration Committee

• Legal and Impaired Assets Resolution Committee

• Human Resource Development Committee

• Investment Committee

• GST Steering Committee

Besides the above, the Bank had few specific purpose Committee of the Board:

• Special Committee of Board (Constituted to devise a roadmap for alignment of pay structure of the Bank compliant with the IBA pay scales)

• Compensation Committee

• Special Committee of Board (Constituted for the purpose of reviewing the down-gradation of M/s Bharat Hotels Ltd.)

• Capital Issuance Committee (Erstwhile Share Allotment Committee)

The composition, power, role, terms of reference, etc. of aforesaid committees are given in detail in the statement on Corporate Governance annexed to this report.

Performance Evaluation of the Board

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

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

• Independent Directors evaluate the performance of NonIndependent Directors, Chairman of the Board, Managing

Director & CEO and Board as a whole and submit its report to the Board alongwith necessary comments and suggestive course of action arising out of the evaluation. • The performance evaluation of the Committees of the Board is conducted by the entire Board.

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

The responses received to the questionnaires on evaluation of the Board, its Committees, individual Directors Chairman and MD & CEO are consolidated and discussed by the Board.

Your Bank has in place a process wherein declarations are obtained from the Directors regarding fulfillment of the ''fit and proper'' criteria in accordance with RBI guidelines. The declarations from the Directors other than Members of the N&RC are placed before the N&RC and the declarations of the Members of the N&RC are placed before the Board. Assessment on whether the Directors fulfill the said criteria is made by the N&RC/Board on an annual basis.

Change in Key Managerial Personnel

As at March 31, 2022, Mr. Baldev Prakash, Managing Director & CEO, Mr. Balvir Singh Gandhi, Chief Financial Officer and Mr. Mohammad Shafi Mir, Company Secretary were the Key Managerial Personnel of the Bank.

Mr. Baldev Prakash was appointed Managing Director & Chief Executive Officer of the Bank in the Board meeting held on December 28, 2021 to be effective from December 30, 2021 (Date of actual joining) thereby relieving Mr. R K Chhibber as Chairman and Managing Director of the Bank. Mr. Balvir Singh Gandhi was appointed as Chief Financial Officer of the Bank on December 28, 2021 in place of Mrs. Rajni Saraf, who ceased to be the Chief Financial Officer of the Bank.

None of the Key Managerial Personnel has resigned during the year under review.

Changes in the Key Managerial Personnel after the Closure of Financial Year

Mrs. Rajni Saraf was appointed as Chief Financial Officer of the Bank on April 27, 2022 in place of Mr. Balvir Singh Gandhi, who ceased to be the Chief Financial Officer of the Bank.

Mr. Pratik D Punjabi was appointed as Chief Financial Officer of the Bank to be effective from the date of his joining (July 01, 2022) in place of Mrs. Rajni Saraf, who ceased to be the Chief Financial Officer of the Bank after attaining the age of superannuation on June 30, 2022.

Performance of Associate /Subsidiary CompaniesSubsidiary:

As on March 31, 2022, the Bank has one unlisted wholly owned subsidiary - JKB Financial Services Limited (JKBFSL), which was incorporated on August 27, 2008. It is a member of the National Stock exchange (NSE) & Bombay Stock Exchange (BSE). A leading broker in the Union Territory of J&K, JKBFSL provides broking services in equity (cash/delivery, intra-day, futures and option), distributes Mutual Funds of leading Asset Management Companies & also banking products of J&K Bank.

Following are the performance highlights of the company during the year:Income:

¦ The income from Equity broking for the financial year 2021-22 is '' 604.17 lacs compared with '' 705.75 lacs during previous FY 2020-21 thereby registering a YoY decline of 14.39 %.

¦ Income from MTF (Margin Trade Funding) is '' 180.42 lacs for the financial year 2021-22 as compared to '' 106.57 lacs in FY 2020-21 thereby registering a YoY growth of 69.30 %

¦ The depository income grew from '' 108.52 lakhs to 141.23 lakhs during the year registering a YOY growth of 30.14%.

¦ Revenue from 3^rd party products has been marked as a growth area for the company. The company has recorded AUM growth of around 150% on YoY basis and accordingly the mutual fund commission grew from 12.30 lakhs to ''22.37 lakhs thereby recording a YOY growth of 81.86%.

¦ The total income of the Company grew from '' 984.30 lakhs to '' 991.25 lakhs.

Expenditure:

¦ The total expenses during the financial year 2021-22 is '' 590.03 lacs as compared to '' 562.23 lacs in the previous financial year. The company has increased its investments in technology platforms & human capital.

Profits:

¦ The Company registered profit before tax of '' 401.22 lakhs during the given financial year and the net profit achieved was ''287.61 lakhs in comparison to a net profit of '' 267.13 lakhs during the previous financial year.

Associates:

As on March 31, 2022, the Bank has two associates viz. J&K Grameen Bank (Regional Rural Bank Sponsored by J&K Bank)

and M/s Jammu and Kashmir Asset Reconstruction Limited. The performance highlights of the associates during the year are provided as under:

J&K Grameen Bank - Regional Rural Bank Sponsored by J&K Bank:

The J&K Grameen Bank has come into existence on 30^thJune 2009 with the issuance of statutory notification by GoI, MoF, Department of Financial Services under sub-section (1) of section 23 (A) of the Regional Rural Banks Act, 1976 vide F. No. 1/4/2006-RRB providing for amalgamation of Kamraz Rural Bank and Jammu Rural Bank into a single new Regional Rural Bank under the name of J&K Grameen Bank with its Head Office at Jammu and has commenced business effective from 01.07.2009.

Area of Operation:

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

Capital Structure:

In terms of the RRBs Act 1976, the authorized capital of Regional Rural Banks was fixed at Rs.5.00 Crore (which stands amended to Rs. Two Thousand Crore in terms of the Regional Rural Banks (Amendment) Act, 2015 notified in the Gazette of India on 12-05-2015). The issued and paid up capital of the J&K Grameen Bank is Rs.97.16 Crore fully subscribed by the Central Government, State Government and Sponsor Bank in the ratio of 50:15:35 respectively. The details are tabulated hereunder:

Tier II perpetual bonds (Date of issue: 04-12-2014):

Out of total cost outlay of Rs. 23.34 Crores for implementation of 100% CBS by JKGB, 50% i.e., Rs. 11.67 crore has been provided by J&K Bank (Sponsor Bank) in the form of perpetual debt (bonds) eligible as Tier - II of the sponsored bank.

Performance of the J&K Grameen Bank as on 31.03.2022 Business:

The total business of the bank as on 31^st March 2022 stood at Rs.7646.50 Crore against Rs.7036.94 Crore as on 31^st March 2021, thereby registering a growth of 8.66% during the financial year 2021-22.

Deposits:

The deposits of the bank have increased from Rs.4472.43 Crore to Rs.4767.90 Crore during the financial year 2021-22 thereby registering a growth rate of 6.61%.

Advances:

The gross advances of the Bank as on 31^st March 2022 stood at Rs.2878.60 Crore as against Rs. 2564.51 Crore as on the corresponding date of the previous year recording a growth of 12.25%

CD Ratio:

The C.D. Ratio of the bank has increased by 303 bps from 57.34% as on 31^st March 2021 to 60.37% as on 31st March, 2022.

Priority Sector Advances:

The priority sector advances outstanding as on 31^st March 2022 stood at Rs. 2327.61 Crore against Rs. 2050.90 Crore outstanding as on 31^st March 2021, registering a growth of 13.49% on Y-o-Y basis. RRB specific benchmark of 75% portion of priority sector advances to total advances outstanding has been well maintained with 80.86% as on 31^st March, 2022.

NPA Management:

Gross NPAs of the Bank as on 31.03.2022 stood at Rs. 152.07 Crore (5.28%) against Rs. 184.42 Crore (7.19%) as on 31^st March, 2021. Accordingly Net NPAs as on 31^st March, 2022 stood at Rs. 69.75 Crore (2.49%) against Rs. 98.47 Crore (3.97%) as on 31^st March, 2021.

Business per Employee:

The business per employee as on 31^st March 2022 stood at Rs.6.78 Crore against Rs.6.65 Crore as on corresponding date of the previous year.

Business per Branch:

The business per branch as on 31^st March 2022 stood as Rs. 35.24 Crore against Rs. 32.43 Crore as on corresponding date of the previous year.

Profitability:

Mainly due to the pension provision liability of Rs. 92.85 Crore during the year 2021-22, Bank has incurred a net loss of Rs. 27.39 Crore as on 31^st March, 2022.

Lead Bank Responsibility:

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

The Annual Credit Plan for UT of J&K for FY 2021-22 was launched on 1^st April, 2021, envisaging a total credit target of Rs. 44,980.57 Crore for 14,97,700 beneficiaries. During FY 2021-22, banks operating in UT of J&K have disbursed total credit of Rs.36,758.34 Crore in favour of 12,53,654

beneficiaries, registering an achievement of 82% in financial terms and 84% in physical terms. This includes disbursement of Rs.19,095.87 Crore in favour of 8,46,050 beneficiaries against the annual target of Rs.35,482.62 Crore for 12, 11,772 beneficiaries under Priority Sector and Rs.17,662.47 Crore in favour of 4,07,604 beneficiaries against the annual target of Rs.9,497.95 Crore for 2,85,928 beneficiaries under NonPriority Sector thereby registering achievement of 54% and 186% in financial terms respectively.

J&K Bank was assigned annual target of Rs.22,346.39 Crore for 7,54,694 beneficiaries under Priority and NonPriority Sectors of economy during FY 2021-22 against which Rs.23,633.84 Crore were disbursed in favour of 8,71,928 beneficiaries registering an achievement of 106% in financial terms and 116% in physical terms.

During the FY 2021-22, following meetings were conducted:

• 3^rd Meeting of J&K UTLBC held on 23^rd June 2021 to review the performance of Banks/ FIs in UT of J&K in dispensation of credit and other banking services during the Financial Year ending 31^st March 2021.

• 4^th Meeting of J&K UTLBC held on 20^th September 2021 to review the performance of Banks/ FIs in UT of J&K during the quarter ending June 2021.

• 5^th Meeting of J&K UTLBC held on 30^th November 2021 to review of the performance of Banks/ FIs in UT of J&K during the quarter ending September 2021.

• 6^th Meeting of J&K UTLBC held on 30^th March 2022 to review the performance of Banks/ FIs in UT of J&K during the quarter ending December 2021.

• Special Meeting of J&K UTLBC held on 7^th January 2022 to review Action Taken by Banks/ Government Departments on the Actionable Points emerged during the visit of Hon''ble Union Finance Minister to UT of J&K on 23^rd November 2021.

• Two Meetings of Sub-Committee of J&K UTLBC on Priority Sector were held on 30^th December 2021 and 25^th February 2022 to review the performance of banks in disbursement of credit to Priority Sector against Annual Credit Plan.

Convening of District Level/ Block level meetings as per Lead bank Scheme

Lead Bank ensured that District- level and block level meetings, such as DCC/ DLRC/ BLBC, and other relative meetings under Lead Bank Scheme are held as per schedule in all the 20 districts of UT of J&K during the FY 2021-22.

Implementation of Financial Inclusion Plans (FIPs):

1. After successful implementation of FIP-I and FIP-II, under the directions from Reserve Bank of India, a roadmap for opening "Brick & Mortar” branches or CBS-enabled Banking Outlets in the identified 104 villages having population over 5000 in UT of J&K is presently under implementation. These villages have been allocated to 8 major scheduled commercial banks operating in UT of J&K viz. J&K Bank-48, SBI-15, PNB-11, HDFC Bank-11, ICICI Bank-05, Canara Bank-05, UCO Bank-05 and CBI-04. As of 31.03.2022, 99 villages have been covered for banking

services with opening of 13 brick & mortar branches and 86 CBS-enabled Banking outlets including 22 Access Points of India Post Payments Bank (IPPB). Out of the 99 covered villages, 48 villages have been covered by J&K Bank, 14 by SBI, 11 villages each by PNB & HDFC Bank, 4 villages each by ICICI Bank & Canara bank, 5 villages by UCO Bank and 2 village by Central bank of India.

2. Providing Banking Services within a radius of 5 KMs of every village:

Though the banking services as per Sub Service Area (SSA) Plan were provided across the erstwhile J&K State by 2016, however in the year 2019, National Informatics Centre (NIC) conducted a GPS (Latitude/ Longitude) based verification of available Banking Touch Points uploaded by banks on Jan Dhan Darshak App - (GIS App) and a fresh list of uncovered villages (i.e. villages not having a Bank Branch/BC/Post Office within 5 KMs distance) was arrived at by DFS and shared with respective SLBC/ UTLBC in the month of October 2019 for assigning same to banks for providing the necessary Banking Touch Points as per the 5 KM criteria fixed by DFS. Once the banks provide/ deploy the necessary Banking Touch Point in the allocated villages, the details of the same including Latitude/ Longitude Positions are to be uploaded/ updated to Jan Dhan Darshak App by the concerned bank so that village is reflected as "covered” as per the GPS Mapping.

For UT of J&K, 147 villages were identified by DFS as "uncovered” under GPS system of identification. All 147 locations stand covered by 6 banks i.e. J&K Bank-75, SBI-20, PNB-7, JKGB-28, IPPB-16 and EDB-1 by providing Banking Touch Points

Responsibility of setting up of RSETIs in UT of J&K:

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

Responsibility of setting up of FLCs in UT of J&K:

In terms of RBI guidelines for setting up of Financial Literacy Centres (FLCs) in all the districts of UT of Jammu and Kashmir, J&K Bank has made 12 FLCs operational in its 12 allocated lead districts viz. Srinagar, Ganderbal, Budgam, Baramulla, Bandipora, Kupwara, Anantnag, Kulgam, Pulwama, Shopian, Poonch and Rajouri and SBI having made 8 FLCs operational in its 8 allocated lead districts of UT of J&K, viz. Jammu, Samba, Kathua, Udhampur, Reasi, Doda, Ramban, Kishtwar. In addition, PNB, JKGB, EDB and J&K State Cooperative Bank have also established 6, 2, 2 & 1 FLCs respectively, in various districts of UT of J&K, which as on 31.03.2022 takes the total number of FLCs in UT of J&K to 31. The performance of FLCs in conducting the Financial Literacy Camps as per the guidelines from RBI is being reviewed at various forums including quarterly UTLBC meetings.

100% Saturation Drive for KCC Crop.

Banks/ FIs in J&K has issued 68,186 fresh KCCs during FY 2021-22 involving an amount of Rs.591.41 Crore. This includes Rs.363.02 Crore disbursed in favour of 35,634 beneficiaries under KCC Crop and Rs.228.39 Crore to 32,552 beneficiaries under KCC-AH & F.

With the above achievement during FY 2021-22 the total number of active KCCs in J&K has reached to 9,52,896 as on 31.03.2022 with an outstanding credit of Rs.6,506.48 Crore.

Advertising and Publicity

To enhance the already established identity and image of the Bank, we branded and positioned our Bank in a way so that it stands out financially, aesthetically and intellectually within the public domain. By being relevant and compelling in our vigorous brand promotion through advertising and publicity, we have successfully improved our brand exposure during the FY 2021-22 thereby enhancing our brand perception and increasing our brand value. We have been successful in strengthening the bond of trust with all our stakeholders by leveraging all the means and channels of communications available for uninterrupted communication throughout the financial year. Besides, the Bank''s products, services and facilities were successfully advertised and publicized through mass marketing strategies across the operational geography of the Bank. Also, the advertising campaigns initiated by the Bank to enhance the overall business, while meeting the set targets, were duly publicized with proper follow-up communications. Moreover, the functioning and accomplishments of the Bank were effectively communicated to relevant target audiences including major stake-holders, customers, shareowners, other stakeholders and general public through customized and efficiently packaged messages/hand-outs using mass media within the Union Territory and relevant channels across the country to earn high credibility and enhance our brand image. To leverage the power of internet for reaching out to a wider audience, we were successful in increasing our presence in the social-media universe by further strengthening and streamlining our online presence through highly popular mediums of social connectivity platforms especially Facebook, Twitter, Instagram and YouTube.

Brand Building

Brand perception forms the fulcrum of any communication marketing strategy. Bank has, as has been case over the years, undertook various promotional activities to position its brand further favourably among the masses, complementing ever-strengthening significance of our institution on financial landscape of UTs of J&K, Ladakh and beyond.

While Brand J&K Bank continues to hold the sway among the masses, Bank has ensured it put an effective and efficient communication strategy in place to bolster the brand recall.

While the thrust for using digital channels to communicate with the masses has been mandated in the face of ever changing technological landscape with Bank enhancing its digital footprints by leveraging its presence on social media platforms, it has also put in use traditional advertisement genres like outdoor advertising (OOH) through hoardings

to garner mileage in terms of brand visibility and reach. A well-drilled brand visibility enhancing activity was carried out by displaying Bank''s products and schemes at ATMs & Branches while making sure Glow Signboards - an important tool of brand identity - are properly maintained. Hoardings were placed in twin cities of Jammu and Srinagar, national highways and other key locations.

With Covid-19 ruling the roost in most of FY 2021-22, Bank earned public goodwill through continuity of its relentless Banking service amidst the crisis. Bank''s role in mitigating the problems during the unprecedented Pandemic was effectively highlighted through appropriate communication channels which added to the brand value and engineering a positive perception and imagination which only furthered and strengthened the trust and bond between Bank and its stake-holders.

The key components of brand identity like logo, its colours, font and other aspects weren''t compromised while positioning the brand among the stakeholders.

Awards & Certifications received by the Bank during FY 2021-22

J&K Bank''s illustrious history of more than eight decades is decorated with awards and accolades. Over the years, the Bank has collected numerous honors in various categories. During the FY 2021-22, the Bank outperformed its competitors to grab the headlines in following categories;

‘Best Digital Financial Inclusion Initiatives'' Award

J&K Bank won ''Best Digital Financial Inclusion Initiatives'' Award at Indian Banks'' Association''s 17^th Annual Banking Technology Conference and Awards 2020-21.

‘Best IT Risk & Cyber Security Initiatives'' Award

J&K Bank was adjudged as Runner Up for ''Best IT Risk & Cyber Security Initiatives'' Award at Indian Bank''s Association''s 17^th Annual Banking Technology Conference and Awards: 202021'' under Small Bank Category.

‘Utkarsh Puraskar'' of DigiDhan Award - 2020-21

J&K Bank won ''UtkarshPuraskar'' of DigiDhan Award - 202021 for achieving 2^nd highest percentage of digital payment transactions under the category of Small & Micro banks from Union Minister for Communications, Electronics & Information Technology and Railways (GoI), Ashwini Vaishnaw.

Khadi India Award - Pan India Category

J&K Bank won 4^th position under Khadi India Awards from Khadi & Village Industries Commission (KVIC) Mumbai, Ministry of MSME (GoI), for implementing Prime Ministers Employment Generation Programme (PMEGP) across the country during FY 2020-21.

Khadi India Award - North India Category

J&K Bank ranked No. 1 by the Ministry of Micro, Small & Medium Enterprises (GoI) under Khadi India Awards for its excellent performance in implementing the Prime Minister''s Employment Generation Programme (PMEGP) in North India during FY 2020-21.

National Award for SHG Bank Linkage

J&K Bank bagged ''National Award for Outstanding

Performance in Self Help Group (SHG) Bank Linkage for FY

2020- 21'' by the Ministry of Rural Development (GoI).

ISO 27001:2013 Certification

J&K Bank has received the latest certification of prestigious ISO 27001:2013 from Intertek - a reputed London-based Total Quality Assurance provider - for being compliant with the best industry standards in terms of privacy and security protocols.

Corporate Social Responsibility (CSR)

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

The Corporate Social Responsibility (CSR) policy of the Bank envisages not only an inclusive and sustainable socio-economic empowerment of the underprivileged, but also strives to help achieve a vibrant and environmentally conscious ecosystem. The Bank, guided by the founding principles of its CSR policy, helps support initiatives to improve the lives and living conditions of the indigent sections of the society besides lending support to the society''s endeavors aimed at making the world a better place to live.

In line with the same, the Bank continued its ''social-investment'' in the form of monetary and other logistics support to systemically vital healthcare institutions to alleviate the hardships of different sections of the society. In turn, the Bank reaped benefits in the form of increased emotional equity, brand-connect and goodwill.

During the financial year (FY) 2021-22, the Bank continued to intervene and enhance value creation in the society through CSR activities in consonance with its mission of ''Serving to Empower''. The statutory disclosures in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014 forms part of this report at Annexure 1.The policy is available on the Bank''s website at https://www.jkbank. com/pdfs/policy/JKB CSR Policy V3.pdf

Key areas of intervention under the CSR Programme

a) Livelihood Generation

b) Preventive Healthcare

Details of activities undertaken under CSR during the FY

2021- 22

Initiatives undertaken under CSR during the FY 2021-22 include:

Livelihood Generation

J&K Bank has been steadfast in its approach to empower communities and create opportunities for sustainable livelihoods. Offering every individual a chance to earn an honest living and inspiring people to lead a life of dignity and self-sufficiency has been the key role of the organization. The Bank considers it a mission to measurably improve the lives of under-privileged and differently abled persons by addressing their needs so as to facilitate their movement from margins of society towards the socio-economic mainstream. With this vision, J&K Bank undertook the project of providing financial assistance to Humanity Welfare Organization Helpline, an NGO, for their project of providing vocational training cum

livelihood generation for specially-abled youth.

On the same lines, J&K Bank also contributed towards the construction of the NAR (National Academy of RUDSETI) building at Bengaluru. National Academy of RUDSETI is providing its services to all the RSETIs across the country. RSETIs act as dedicated institutions designed to ensure necessary skill training and skill up gradation of the rural BPL youth to mitigate the problem of unemployment. To eliminate poverty, it is necessary to create livelihood opportunities on sustainable basis for the people living below the poverty line as it will enable them to fulfill basic need of life i.e. food, health and shelter and that is what RSETIs deal with - training of youth for self-employment.

Preventive Healthcare

Preventive healthcare is an important dimension of health that needs significant attention and investment from all sections of the society. J & K Bank considers working in this sector as an ethical obligation to provide extensive support and assistance with regard to protecting and promoting health. The Bank remains at the forefront in this sector to help Institutes upgrade the healthcare facilities thereby enabling people to have access to the best-in-class medical treatment. The bank, as such, continued to extend support in this sector by helping procure the ''Platelet/Therapeutic Plasma Apheresis Kits'' for the treatment of patients suffering from blood cancer and other blood dysfunctional diseases at SKIMS, Srinagar and GMC Jammu.

The world has changed dramatically since the emergence of the Coronavirus Disease 2019 (COVID-19) pandemic. The pandemic swiftly and harshly interrupted life and economies, forcing businesses and governments to quickly make difficult choices to balance risks to individual health and economic health. While health organizations and Governments across globe are trying hard to curb the disease and deflate its impact, corporates too have contributed their bit to ensure human safety. Looking at the situation emerging because of this deadly virus, J & K Bank decided to do its bit and started an initiative called "Wear a Mask”. The Bank procured and distributed face masks (three layer surgical masks) in and around health facilities, educational institutions etc in the capital cities of J&K i.e., Srinagar and Jammu, which have seen the bulk of Covid-19 cases in the UT.

Corporate Governance

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

Management discussion and analysis

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

Whistle Blower Policy & Vigil Mechanism

The Bank has a Whistle Blower mechanism in place which enhances the transparency in the organization by encouraging the employees/ directors/ other stakeholders to report any wrongdoing, which comes to their knowledge in the day-to-day performance of their duties or interaction with other fellow-colleagues/ bank staff without fear of retaliation, victimization and unfair-treatment. The "Whistle Blower Policy” has been formulated to guarantee them protection from any adverse departmental proceedings. The Policy is compliant to regulatory requirements under Section 177 (9) of the Companies Act 2013, Regulation 22 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Further, the mechanism adopted by the Bank encourages the Whistle Blower to report genuine concerns or grievances and also provides for direct access to Chairman of the Audit Committee of the Board, in exceptional cases. The grievance under Whistle Blower mechanism can be lodged on the Bank''s official website under link.

https://www.jkbank.com/others/common/wbGrievences.php

It is hereby affirmed that the Bank has not denied any of its personnel access to the Chairman of the Audit Committee of the Board and that the policy contains adequate provisions for protecting whistle blowers from unfair termination and other unfair prejudicial employment practices. However, no case under the Whistle Blower Mechanism was referred to the Audit Committee of the Bank during the year.

Protected Disclosures Scheme:

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

The complaint under the scheme should be sent in a closed/ secured envelope addressed to The Chief General Manager, Reserve Bank of India, Department of Banking Supervision, Fraud Monitoring Cell, Third Floor, World Trade Centre, Centre 1, Cuffe Parade, Mumbai 400 005. The envelope should be superscripted "Complaint under Protected Disclosures Scheme for Banks”. Complaints can also be made to RBI through e-mail: [email protected] by giving full details as specified above.

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

It is hereby affirmed that No unfair treatment will be meted out to a Complainant by virtue of his/her having reported a Disclosure under this Policy. The Bank, as a policy, condemns any kind of discrimination, harassment, victimization or any other unfair employment practice being adopted against

Complainant(s). Complete protection will, therefore, be given to Complainant(s) against any unfair practice like retaliation, threat or intimidation of termination/suspension of service, disciplinary action, transfer, demotion, refusal of promotion, including any direct or indirect use of authority to obstruct the Complainant''s right to continue to perform his duties/ functions including making further Disclosure under the policy. No compliant has been referred to the Bank under the "Protected Disclosure Scheme”.

Risk Management

A well-defined, comprehensive risk management framework of our bank is based on accepting various risks, controlled risk assessment, measurement and monitoring of these risks. The key components of the Bank''s Risk Management architecture rely on the risk governance structure, comprehensive processes and internal control mechanism based on approved policies and guidelines. The Bank''s risk management processes are guided by way of policies adopted appropriately for various risk categories, independent risk oversight and periodic monitoring by Board of Directors, Committees of the Board of Directors and Senior Management Committees -Credit Risk Management Committee, Market Risk Management Committee, Operational Risk Management Committee and Asset Liability Committee (ALCO). These policies approved from time to time by Board of Directors, Committees of Board form the basis for governing framework for each type of risk. The Board sets the overall risk appetite and philosophy for the Bank and have an oversight of all the risks assumed by the Bank. The Bank''s Risk Management framework focuses on the management of key areas of Risk such as Credit, Market, Operational Risk and Liquidity Risk and Pillar II risks, quantification of these risks, wherever possible. The risk management function in the Bank strives to proactively anticipate vulnerabilities in the business operations through quantitative or qualitative examination of the embedded risks for effective and continuous monitoring and control. An independent risk management function ensures that risk is managed through a risk management architecture as well as through policies and processes approved by Board of Directors. The risk management policies and procedures established are updated on continuous basis in compliance to RBI guidelines and benchmarked to best practices. The Board of Directors with its committee-Integrated Risk Management Committee (IRMC) reviews risk management policies of the Bank pertaining to credit, market, liquidity, operational & Pillar II risks that includes strategic risk and reputational risk, Internal Capital Adequacy Assessment Process (ICAAP) and stress testing. Risk Management is administered by Executive/ Senior Management Committees & Chief Risk Officer (CRO) through Integrated Risk Management Department (IRMD). The Bank has structured management committees; Credit Risk Management Committee (CRMC), Operational Risk Management Committee (ORMC) and Market Risk Management Committee (MRMC) for credit risk, operational risk and market risk that operate within the broad risk management framework of the Bank to assess and minimize these risks. Information security and business continuity plan also forms part of risk management functions in the Bank. Treasury activities are separately monitored by mid office, which reports to IRMD. The Bank has Stress Testing Policy to measure impact of adverse stress scenarios on the adequacy of capital. The stress scenarios are idiosyncratic, generic and a combination of both.

Business Responsibility Report

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

Employees Stock Purchase Scheme

During the period under report, the Bank implemented J&K Bank Employee Stock Purchase Scheme, 2021 (JKBESPS, 2021), under which equity shares of the Bank were offered and allotted to the eligible employees, in accordance with the scheme parameters and the regulatory guidelines applicable to ESPS.

The Bank has received a certificate from its Secretarial Auditor to the effect that the scheme has been implemented in accordance with the SEBI Regulations and as per the resolution passed by the Members of the Bank authorising issuance of the said shares. The details, as required to be disclosed under Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 {Erstwhile Securities and Exchange Board of India (Share Based Employee Benefits) Regulation, 2014}, including the aforesaid certificate from the Secretarial Auditor are available on the Bank''s website at https://www. jkbank.com/investor/investorInfo/ESPS.php

Information under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

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

Loans, Guarantees & Investment in Securities

Pursuant to section 186(11) of the Companies Act, 2013 loans made, guarantees given or securities provided or acquisition of shares by a Banking company in the ordinary course of its business are exempted from disclosure in the Annual Report. The particulars of investments made by the Bank are disclosed in notes number 5 to 8 of Schedule 18 of the Financial Statements as per the applicable provisions of the Banking Regulation Act, 1949.

Frauds reported by the Bank

The Bank during the financial year 2021-22 has detected/ reported 19 cases of frauds to Reserve Bank of India involving an amount of Rs 246.16 Crore.

Frauds reported by Auditors

During the year under review, no fraud was reported by any of the statutory auditors under section 143 (12) of the Companies Act, 2013 to the Ministry of Corporate Affairs, Govt. of India.

Consolidated Financial Statements

Pursuant to Section 129 of the Companies Act, 2013, the Bank has prepared Consolidated Financial Statements of the Bank, its Subsidiary (JKB Financial Services Ltd.) and also its Associate (J&K Grameen Bank) which shall be laid before shareholders at the ensuing 84^th Annual General Meeting of the Bank along with Bank''s Financial Statements under sub-section (2) of Section 129 i.e. Standalone Financial Statements of the Bank. Further, pursuant to the provisions of Accounting Standard (AS) 21 - Consolidated Financial Statements notified under section 133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules 2014 issued by the Ministry of Corporate Affairs, the Consolidated Financial Statements of the Bank along with its subsidiary/Associate for the year ended March 31, 2022 form part of this Annual Report.

Statutory Auditors

The Central Statutory and Branch auditors of the Bank are appointed by the Comptroller & Auditor General of India (C&AG) pursuant to Section 139(5) of the Companies Act, 2013. The Bank had four (4) Central Statutory auditors appointed by the C&AG of India for the year under review as given below:

1. O AGGARWAL & CO, Chartered Accountants

2. DHARAM RAJ & CO, Chartered Accountants

3. ARORA VOHRA & CO, Chartered Accountants

4. HEM SANDEEP & CO, Chartered Accountants

Bank is continuously striving to ensure energy conservation equipment are used across enterprise like Virtual Servers, Thin Clients, Multi-purpose Printers, multi-purpose kiosks, scanners, etc.

B. Technology Absorption :-

With increased adoption & demand for digital channels by customers, our Bank has been at forefront to introduce new digital services, leverage advanced technological platforms for better & enhanced customer experience Many new digital services have been introduced with customer centric focus which includes new Mobile banking platform (mPay Delight), Contactless Card transactions, RuPay Debit Card, Digilocker, GRAS, Enterprise Fraud Risk Monitoring, Contact Centre feature enhancement etc.

As part of the long term IT Strategy Bank has recently migrated to the latest version of Core Banking Solution (Finacle 10) that has powerful transformational capabilities for increased productivity, rapid innovation and a comprehensive set of offerings to meet diverse customer demands.

C. Foreign Exchange Earnings and Outgo:

The Foreign Exchange earned in terms of actual inflows during the year and the Foreign Exchange outgo during the year in terms of actual outflow: During the Year ended 31.03.2022 the Bank earned Rs.78.51 lacs and spent Rs.152.86 lacs in foreign currency. This does not include foreign currency cash flow in derivatives and foreign currency exchange transactions.

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

3. Number of cases filed, if any and their disposal under Section 22 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:

Your Bank has Zero tolerance towards any action on the part of any executive/employee which may fall under the ambit of ''Sexual Harassment'' at workplace, and is fully committed to uphold and maintain the dignity of every women executive/employee working in the Bank. One complaint of sexual harassment was lodged with the Internal Complaints Committee during the year 2021-22 and the same was disposed-off within the required time frame of 90 days.

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

Annual Return

In accordance with the provisions of Companies Act, 2013, the Annual Return of the Bank for the financial year 202122 in the prescribed Form MGT-7 is available on the website of the Bank at:https://www.jkbank.com/investor/financials/ annualReturns.php

Important Events after the Closure of Financial Year ended 31-03-2022

This report covers the period of financial year of the Bank beginning on 1^st April, 2021 to 31^st March, 2022. However, few material events listed below happened from 1^st April, 2022 till the date of this report:

a) The Board of Directors of the Bank on 27^th April, 2022 decided to obtain consent of the Members of the Bank through Postal Ballot by way of special resolutions:

• Re-appointment of Mr. Naba Kishore Sahoo (DIN: 07654279) as an Independent Director on the Board of the Bank

• Appointment of Mr. Anand Kumar (DIN: 03041018) as an Independent Director on the Board of the Bank

The shareholders of the Bank approved the above mentioned resolutions on 29^th May, 2022.

b) The Government of Jammu & Kashmir vide order no. 567-JK(GAD) of 2022 dated 17^th May, 2022 has nominated Mr. Vivek Bharadwaj, IAS {Financial Commissioner (Additional Chief Secretary), Finance Department} as Government Nominee Director on the Board of Directors of the Bank in place of Mr. Atal Dulloo, IAS (Additional Chief Secretary) with effect from 17^th May, 2022 and the same was taken on record by the Board of Directors of the Bank in their meeting held on 10^th June, 2022.

c) On 1^st April, 2022, the bank has allotted 2,85,93,267 (Two Crore Eighty Five Lac Ninety Three Thousand Two Hundred And Sixty Seven) equity shares at a price of Rs. 32.70 (Rupees Thirty Two and Seventy Paisa Only) which was at a discount of 4.97% (i.e. Rs 1.71 per equity share) to the Qualified Institutional Buyers (QIB) aggregating to a total of Rs. 93,49,99,830.90 (Rupees Ninety Three Crore Forty Nine Lacs Ninety Nine Thousand Eight Hundred Thirty and Ninety Paisa Only). The Issue opened on March 28, 2022 and closed on March 31, 2022.

d) Mrs. Rajni Saraf was appointed as Chief Financial Officer of the Bank on April 27, 2022 in place of Mr. Balvir Singh Gandhi, who ceased to be the Chief Financial Officer of the Bank.

e) Mr. Pratik D Punjabi was appointed as Chief Financial Officer of the Bank to be effective from the date of his joining i.e. July 01, 2022 in place of Mrs. Rajni Saraf, who ceased to be the Chief Financial Officer of the Bank after attaining the age of superannuation on June 30, 2022.

Transfer of Shares to UT of Ladakh

The J&K Govt. General Administration Department S.O. No. 339 dated 30/10/2020 apportioned the Assets, Liabilities and Posts of the erstwhile State of Jammu and Kashmir

between the Union Territory of Jammu and Kashmir and Union Territory of Ladakh. As per the said notification, 8.23% shareholding of Jammu & Kashmir Bank Ltd as on the date of enforcement of Jammu & Kashmir Reorganisation Act, 2019 i.e. October 31, 2019 (which amounts to 13.89% of the shareholding of the erstwhile state of Jammu and Kashmir as on 31.10.2019) shall be transferred to the UT of Ladakh and then the remaining 51% of shareholding of erstwhile Jammu and Kashmir state would remain with the UT of Jammu and Kashmir. The Reserve Bank of India vide letter no. DOR. HOL.No.S481/16.01.063/2021- 22 dated July 26, 2021, has accorded approval for the said apportionment. For want of formalities, the shares earmarked to the Union Territory of Ladakh are yet to be transferred.

Acknowledgements

The Directors thank the valued customers, shareholders, well-wishers and correspondents of the bank in India and abroad for their goodwill, patronage and support. The Directors acknowledge with gratitude the valuable and timely advice, guidance and support received from Government of India, Government of Jammu & Kashmir, Reserve Bank of India,

Securities and Exchange Board of India (SEBI), Insurance Regulatory Developmental Authority (IRDA), NABARD, SIDBI, IBA, FIMMDA, FEDAI, Stock Exchanges, Ministry of Corporate Affairs, Registrar of Companies, Comptroller & Auditor General of India, Financial Institutions and the Central Statutory Auditors of the bank in the functioning of the bank. The Directors place on record their deep appreciation of the valuable contribution of the members of the staff at all levels for the progress of the bank during the year and look forward to their continued cooperation in realization of the corporate goals in the years ahead.

For and on behalf of the Board of Directors

Naba Kishore Sahoo Baldev Prakash

Independent Director MD & CEO

Date: 30^th July, 2022