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: dbspd@rbi.org.in by giving full details as
specified above.

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

It is hereby affirmed that no unfair treatment will be meted
out to a Complainant by virtue of his/her having reported a
Disclosure under this Policy. The Bank, as a policy, condemns
any kind of discrimination, harassment, victimization or any
other unfair employment practice being adopted against
Complainant(s). Complete protection will, therefore, be given
to Complainant(s) against any unfair practice like retaliation,
threat or intimidation of termination/suspension of service,
disciplinary action, transfer, demotion, refusal of promotion,
including any direct or indirect use of authority to obstruct
the Complainant's right to continue to perform his/ her
duties/functions including making further Disclosure under
the policy. In FY 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