J&K Bank Pays Rs 86.35 Crore Dividend to State Govt

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SRINAGAR: The Chairman and CEO J&K Bank Mushtaq Ahmad today presented two cheques for Rs 86.35 Crore to the Chief Minister Omar Abdullah on account of the 74th Dividend to the State Government for the financial year 2011-12.

The State Government is the majority shareholder of the Bank. The dividend, @ 335% for the FY 2011-12, is the highest ever dividend paid by the Bank so far.

The two dividend cheques were presented to the Chief Minister in presence of Finance Minister Abdul Rahim Rather, Economic Advisor to the Government of J&K Jalil Ahmad Khan, Financial Commissioner Finance M. I. Khanday and Principal Secretary to Chief Minister B. B. Vyas and President J & K Bank Abdul Rauf Bhat.

After receiving this dividend, the State Government, which owns over 53% of bank’s shares, has received a total dividend income of Rs. 457.24 Crore on its investment since 1938. As per the current market price, the investment amount of Rs. 25.77 Crore made by the State Government in the Bank has appreciated to Rs 3406 Crore on the basis of current market price of the Bank’s shares. (Based on the closing price of the Bank’s share on National Stock Exchange (NSE) as on 02-01-2012).

While appreciating the bank’s leadership for remarkable performance and its role in growth and development of the business environment in the State, the Chief Minister congratulated J&K Bank for bagging prestigious awards including CNBC TV18 India’s Best Bank and Financial Institution Award, The Sunday Standard FINWIZ-2012 Best Bankers’ Award during the year 2012.  The Chief Minister reiterated his confidence and trust in the Bank’s leadership and its capabilitiy to achieve excellence.

Speaking on the occasion Chairman Mushtaq Ahmad thanked the Chief Minister for his support and patronage and apprised him about the Bank’s performance.

While highlighting the achievements of the bank, Chairman said, “The bank’s business has increased from Rs. 63500 crore as on 30th September 2010 to Rs. 92800 crore as on 31st December 2012. He said the bank has been playing a major developmental role in the State of Jammu and Kashmir. The bank is addressing the unemployment problem in a big way and is the sole financer under Sher-i-Kashmir Employment and Welfare Programme for Youth (SKEWPY). The bank has so far financed 1148 units under this initiative involving an amount of Rs.76.57 crore.”

While highlighting its contribution to the agriculture sector, the Chairman said, “as on December 31, 2012, the bank has issued 171965 Kissan Credit Cards (KCCs) across the State involving credit disbursement of Rs. 830 crore.”

Chairman further stated that the Bank has distributed Rs.43.54 crore through 5767 Artisan Credit Cards among various categories of artisans.

He also briefed the government about the Bank’s massive expansion drive wherein the Bank has opened 133 business units since October 2010. All these business units have been opened in the far flung, remote and unbanked areas of J&K State.

“We have also expanded our ATM network by adding 269 ATMs, and the number of such machines has increased from 309 as on September 30, 2010 to 578 as on December 31, 2012.

Notably, the Bank has already kick started its platinum jubilee celebrations on 1st of January 2013 and is all set to achieve the target of Rs.1000 crore in net profit and 100000 crore in business by the end of the current financial year.

All Business Units of Bank stand computerized and are operating on the Core Banking Solution (CBS) platform.

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