1

J&K BANK
PRESENTATION

FEBRUARY
2018
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Disclaimer
This presentation has been prepared for informational purpose only by the Jammu and Kashmir Bank Limited (the “Bank”). The Bank, as such, makes no
representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or
correctness of any information or opinions contained herein. This presentation may not be copied, published, distributed or transmitted in any manner.

This presentation does not constitute a prospectus, offering circular or offering memorandum and is not an offer or invitation to buy or sell any securities, nor shall
part, or all, of this presentation form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. Furthermore,
this presentation is not an offer of securities for sale in India, the United States or any other jurisdiction.

Neither this presentation nor any information thereof nor the fact of its distribution shall form the basis of, or be relied on in connection with, any contract or
commitment or investment decision whatsoever.
This presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Bank, which are expressed in
good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the
actual results, financial condition, performance, or achievements of the Bank or industry results, to differ materially from the results, financial condition,
performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this
presentation are cautioned not to place any reliance on these forward-looking statements. The Bank disclaims any obligation to update these forward-looking
statements to reflect future events or developments. The Bank assumes no responsibility to amend, modify or revise any forward-looking statements, on the basis
of any subsequent development, information or events, or otherwise. Unless otherwise stated in this presentation, the information contained herein is based on
management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future
results. The Bank may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or
changes.

By attending this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Bank and
that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Bank.

Neither the delivery of this presentation nor any further discussions of the Bank with any of the recipients shall, under any circumstances, create any implication
that there has been no change in the affairs of the Bank since that date.

All financial information of the Bank included in this presentation is on a Standalone basis.

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J&K Bank - Brief Overview

1 5
Only private sector bank designated as
Incorporated in 1938 as a limited liability
RBI’s agent for carrying out banking
company
business for the Government of J&K

2 6
Listed on National Stock Exchange of India Conducts major portion of banking
Limited and BSE Limited; only listed business of Central Government in J&K;
company of J&K State Collection Agent for utility services in J&K

3 7
Identified by Central Government for
Promoter (J&K State Government) holding
implementation of various flagship
approx 59%; imparting safety and stability
programmes in J&K State

4 8
Private sector bank despite J&K
Business share of 65% in J&K State1
Government’s majority holding

1. Source: State Level Banker’s Committee Minutes, Sep 2017

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Branch and ATM Network

Expanding the branch & ATM network
1400
1161
1200 1096
1006
1000 883 857 865 902
817
800
600
400
200
0
2015 2016 2017 Dec-17

Branches ATMs
Leading player in J&K State
Branch Network – 30 Sep 2017 ATM Network – 30 Sep 2017

9%
19%
31%
44% 43%

13% 13%
28%

Other Pvt Sector Banks RRBs SBI Other PSU Banks Pvt. Banks JKB

Public Sector Banks J&K Bank

Source: Source: State Level Banker’s Committee Minutes, Sep 2017

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Infrastructure Overview

• Pan India presence with 902 branches under CBS platform & 29 E/Cs, 5 IARBs
and 52 offices. Branches in every block of J&K State
• Globally connected ATM network of 1,170 ATMs
• 1203 Khidmat Centres/Business correspondents/VLE across J&K State

Subsidiaries / Corporate Agency

• JKB FSL – Wholly Owned Subsidiary (PUC Rs. 200 Million)

• Corporate Agency
• PNB-Metlife – for Life Insurance
• Bajaj Allianz – for Non-Life Insurance

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Key Financial Highlights – 9M FY’18 Rs. Millions, Growth YoY %

NET INTEREST INCOME NET PROFIT ADVANCES D EPO SITS TOTAL ASSETS

22,150.2 1,743.0 579,286.9 731,550.6 850,645.3

19% 116% 28% -1% 3%

YOY YOY YOY

N IMs CASA Ratio COD GROSS NPA TIER I

10.08% 8.54%
3.83% 49.87% 5.13%
4.29% 2.33%

NET NPA TIER II

 Basic EPS of Rs. 4.17 (Annualized)

 Book Value of Rs. 109.93
Financial performance steadily improving - Positive in almost every basic parameter

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Income Statement & Key Ratios Rs. Millions

Income Statement FY ended March 15 FY ended March 16 FY ended March 17 9 M FY 17-18

Net Interest Income 26,509.1 27,100.9 25,119.4 22,150.2

Non Interest Income 5,939.7 5,040.3 4,928.6 3,230.4

Total Net Income 32,448.8 32,141.2 30,048.0 25,380.6

Operating Expense 14,090.5 15,462.0 17,104.6 14,226.5

Opera ting Profit 18,358.3 16,679.2 12,943.4 11,154.1

Provisions & Contingencies 10,155.2 9,762.3 28,003.1 7,716.3

Provision for Tax 3,117.1 2,756.5 1,263.2 1,694.8

Profit After Tax 5,086.0 4,160.4 (16,322.9) 1,743.0

Key Ratios (%) FY ended March 15 FY ended March 16 FY ended March 17 9 M Dec 31 2017
Return on Assets (Annualized) 0.7 0.57 -2.04 0.29
Credit/Deposit CD Ratio 67.8 72.33 68.75 79.19
NIM (Annualized) 3.81 3.85 3.38 3.83
Cost to Income Ratio 43.42 48.11 56.92 56.05
Cost of Deposits (Annualized) 6.72 6.34 5.87 5.13

EPS (Annualized) In Rupees 10.49 8.58 -33.59 4.17

Good growth across income streams resulting in PAT growth

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Balance Sheet & Key Ratios Rs. Millions

Balance Sheet FY ended March 15 FY ended March 16 FY ended March 17 Dec 31 2017

Assets 759,307.5 802,680.7 820,186.7 850,645.3

Advances 445,858.2 501,932.9 498,161.1 579,286.9

Investments 227,595.9 203,536.2 212,908.9 184,959.1

Reserves and Surplus 60,615.6 63,754.8 56,243.5 60,660.8

Paid Up Capital 484.9 484.9 521.5 557.0

Borrowings 23,396.7 22,400.0 12,760.5 40,045.2

Deposits 657,562.1 693,901.8 724,630.9 731,550.6

CASA 274,764.0 306,203.3 374,601.6 364,840.4

CASA increase in March 2017 - demonetization impact

Key Ratios (%) FY ended March 15 FY ended March 16 FY ended March 17 Dec 31 2017

Capital Adequacy (Basel III) 12.57 11.81 10.80 10.87

Tier I Capital Adequacy Ratio 11.26 10.6 8.7 8.54

Book Value In Rupees 126.04 132.1 116.8 109.93

Gross NPA 5.97 8.32 11.2 10.08

Net NPA 2.77 4.31 4.87 4.29

Bank managed to retain a good proportion of deposits mobilized during demonetization

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Income Growth Trends Rs. Millions,

Net Interest Income Non Interest Income

• Net Interest Income (NII) steadily back on

30,000 27,101
track 26,509
25,119
25,000 22,150

20,000
• NII increased by 19% YoY compared to 9M
FY17 15,000

10,000
5,940 5,040
4,929 3,230
• NIMs healthy- A result of robust liability 5,000
management 0
FY15 FY16 FY17 Dec-17

Yield on advances Cost of Deposits NIM Operating Profit Net Profit Net Loss
14 20,000 18,358
16,679
11.52
12 10.9 15,000 12,943
10.02 11,154
10 10,000
9.26 5,086 4,160
8 5,000 1,743
6.72 6.34
5.87
6 0
5.13 FY15 FY16 FY17 Dec-17
4 -5,000
3.81 3.85 3.83 -10,000
2 3.38
-15,000
0
2015 2016 2017 9 M DEC-2017 -20,000 -16,323

Net Loss in FY 2017 due to huge provisions (Rs 24,750 million) for stressed assets (Loans/Investments)

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Interest And Non-Interest Income Highlights Rs. Millions

Non Interest Income Break-up

Particulars FY ended March 15 FY ended March 16 FY ended March 17 9 M Dec 31 2017

Commission/Exchange 1,696.4 1,837.4 1,648.8 1,224.1

Insurance Commission 334.2 431.6 328.2 237.2

Treasury/Trading Income 1,160.2 1,470.9 1,432.6 268.0

Miscellaneous Income 2,748.9 1,300.4 1,519.0 1,501.1

Total 5,939.7 5,040.3 4,928.6 3,230.4

Trading income down during 9 M FY 2018 - Hardening of interest rates

Interest Income Break-up
Particulars FY ended March 15 FY ended March 16 FY ended March 17 9 M Dec 31 2017

Loans And Advances 51,610.3 50,276.6 47,843.5 37,577.2

Investments 17,412.5 16,466.5 17,826.1 10,928.1

Balance With RBI and Other Banks 1,588.5 1,692.6 1,172.1 1,789.1

Others - - 16.3 2.8

Total 70,611.3 68,435.7 66,858.0 50,297.2

Interest Income: Impacted due to huge impairment in Loan Assets recognized during 2016-2017

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Liability Franchise – Mostly Retail Rs. Millions

CASA CAGR 11% Retail Dep Retail Dep %)

DEPOSITS CAGR 11%

731,551 600,000 565,464 570,373

800,000
70 80
500,000 477,554 70
600,000 60 429,230 78.03 77.97
51.70 49.87
44.13 68.82 60
400,000 41.79 364,840 50 400,000 65.28
50
40
200,000 300,000 40
30
30
0 20 200,000
20
2015 2016 2017 DEC-2017
100,000 10
DEPOSITS CASA CASA % 2015 2016 2017 DEC-2017

Steady improvement in Retail Deposits with CASA among best in the industry
CAGR 12.5% Savings Dep. Saving %
Demand Dep. Demand Dep.%
350,000 45 120,000 14
39.52 13.20
38.50 40 12
300,000 289,085 100,000 95,626
33.73 278,976 9.96 10.39
31.83 35 10.36
250,000 234,084 75,756 10
30 80,000 72,119
209,295 65,469
200,000 8
25 60,000
150,000 20 6
15 40,000
100,000 4
10 20,000
50,000 2
5
0 0 0 0
2015 2016 2017 DEC-2017 2015 2016 2017 DEC-2017

CASA+Retail FDs as % of Total Deposits stands at 78% as at Dec-2017, u p from 65% as on March 2015

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Liability – Main source is J&K Rs. Millions

Bank - Deposit Breakup DEC-2017

• 86% of deposits contributed by J&K state 75755.8,
10%
Demand
• J&K contributes 95% of savings and 93% of
overall CASA deposits of the Bank 366710.2,
50%
Savings
• Savings deposits from J&K State have recorded
CAGR of 13% since Mar’15
289084.6,
Term 40%
• Bank has a CASA ratio 54% in J&K

J&K - Deposit Breakup DEC-2017 Rest of India - Deposit Breakup

DEC-2017
Demand 62917.0, Demand
10% 12838.8,
13%
13485.1,
14%
293815.0,
Savings 46% Savings
72895.2,
73%

Term Term
275599.5,
44%

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Liability Mix Rs. Millions

Deposits
Particulars FY ended March 15 FY ended March 16 FY ended March 17 Dec 31 2017

Demand Deposits 65,468.7 72,119.4 95,625.9 75,755.8

Saving Deposits 209,295.2 234,084.3 278,975.7 289,084.6

Term Deposits 382,798.0 387,698.8 350,029.3 366,710.2

Total 657,561.9 693,902.5 724,630.9 731,550.6

Geographical Break-up
From J&K State From Rest of India Bank as a Whole
Particulars (31.12.2017)
Amount % age Amount % age Amount % age
Deposits (In Millions) 632,331.5 86.4 99,219.1 13.6 731,550.6 100.0
CASA Ratio (In Percentage) - 53.5 - 26.5 - 49.9

Gross Advances (In Millions) 307,051.2 48.1 330,763.4 51.9 637,814.6 100.0

Number Of Branches 778.0 85.9 128.0 14.1 906.0 100.0

Number Of ATM’s 1,066.0 91.8 95.0 8.2 1,161.0 100.0

Conscious decision of reducing reliance on Wholesale (Interbank & Corporate deposits) in ROI

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Steady Growth in Credit Rs. Millions

Bank - Gross Credit (Dec 17)

CAGR 10% Advances (Net) AGRICULTURE 56744.7
9200.3 ,
700,000 , 9%
2%
579,287 TRADE 58707.9 ,
600,000 498,161
501,933 10%
500,000 445,858
PERSONAL
400,000 123367.3 ,
324325.8 ,
20%
300,000 SME (Trade 52%
Exculded)
200,000
CORPORATE
100,000

0 OTHERS 46187.9 ,
2015 2016 2017 Dec 2017 7%

J&K Gross Credit (Dec’17) Rest of India - Gross Credit (Dec 2017)
AGRICULTURE AGRICULTURE
41818.6 , 3302.5
14% 6915.7 53442.2 , 9019.4 10660.3
2284.6
, 2% 18% TRADE 5662.5
TRADE
40525.4 49688.5 ,
, 13% 16%
PERSONAL
PERSONAL

SME (Trade
SME (Trade Exculded) 282507.2 ,
Exculded) 112707.0 ,
CORPORATE 90%
37%
CORPORATE
OTHERS
OTHERS

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Improving Asset Quality Rs. Millions

Stressed Assets NPA and PCR Ratio

70,000
60,000 62,321
60,000

50,000 43,686

Total Advances 40,000 70%

618,533.9 27,641 67%
Total NPA 30,000
62,321
20,000 59%
56%
10,000
Total------------------------------Total Stressed Asset
Restructured 119051 0
67,145 (19% of Total Advances) FY15 FY16 FY17 DEC-17
PCR % Gross NPA

Steadily improving PCR- Preferring provisions over Profits

Trend of key Asset Quality Parameters

FY ended March 15 FY ended March 16 FY ended March 17 Dec 31, 2017
1. Gross NPA 27,640.8 43,686.2 60,000.1 62,320.8
A
2. Net NPA 12,363.2 21,639.5 24,253.7 24,876.5
1. Gross NPA % 5.97 8.32 11.2 10.08
B
2. Net NPA % 2.77 4.31 4.87 4.29

Bank continues to show resilience on all Asset Quality parameters

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Restructured Advances Portfolio Rs. Millions

Restructured Geographical Breakup J&K Restructured Portfolio

Agriculture ,
Restructured Portfolio OTHERS, 7,196.7 ,
12,316.0 , 15%
26% Manufacturing
, 8,680.9 ,
19202.7, Transport, 18%
686.1 ,
29%
1%

47942.4,
Tourism,
71%
3,364.6 ,
7%
TRADE,
15,698.2 ,
33%
J&K RoI

Agriculture Manufacturing Tourism

TRADE Transport OTHERS

71% of total restructured portfolio of the Bank is in J&K which is well diversified

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Trend in Gross and Net NPAs Rs. Millions

Gross NPA Gross NPA % Net NPA Net NPA %

70,000 11.2 12 30,000 6

60,000 10 25,000 5
8.32 10.08
50,000 4.87
8 20,000 4.31 4.29 4
40,000 5.97
6 15,000 2.77 3
30,000 60,000 62,321
24,254 24,426
4 10,000 21,640 2
20,000 43,686
27,641 2 5,000 12,363 1
10,000
0 0 0 0
FY15 FY16 FY17 Dec-17 FY15 FY16 FY17 Dec-17

NPA – Sector-wise (Dec 2017) Arresting the increase in Gross/Net NPA - lesser
incremental slippages & higher recoveries

• Rest of India (RoI) accounts for 85% of total NPAs of the Bank

• Corporate Book accounts for 88% of total NPAs

• Gross NPA in J&K is 3.1% as against 16.8% in Rest of India (Bank 10.08%)

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Movements in NPAs Rs. Millions

Movement in NPA FY ended March 15 FY ended March 16 FY ended March 17 9 M Dec 31 2017

Balance at the start of period 7,834.2 27,640.8 43,686.1 60,000.1

Additions during the period 25,258.0 23,832.3 32,784.2 13,570.3

Reductions/Upgradations 3,437.7 1,889.2 1,547.6 1,490.5

Write Off 249.4 3,280.3 8,279.2 6,771.0

Recoveries during the period 1,764.3 2,617.4 6,643.4 2,988.0

Balance at the close of Period 27,640.8 43,686.1 60,000.1 62,320.8

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Treasury Portfolio Rs. Millions

FY ended FY ended FY ended FY ended FY ended FY ended

Bifurcation Dec 17 Category Dec-17
March 15 March 16 March 17 March 15 March 16 March 17

SLR 134,546.8 139,480.4 163,252.1 166,936.0 HTM 130,172.3 128,130.7 139,783.3 142,705.2

Non SLR 93,049.1 64,055.8 49,656.8 18,023.1 AFS 97,408.5 75,404.0 73,008.6 41,792.4

Total 227,595.9 203,536.2 212,908.9 184,959.1 HFT 15.1 1.5 117.0 461.5

Treasury Portfolio Investment Bifurcation as on 31 Dec 2017

AFS, HFT,
Non-SLR 41792.4, 461.5,
Investments, 23% 0%
18023.1,
10%

SLR
Investments, HTM,
166936.0, 142705.2,
90% 77%
 Exposure mostly in Government Securities
Trading book volume & duration thereof reduced to minimise interest rate risk

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Investments – Yield & Duration Rs. Millions

Particulars FY ended March 15 FY ended March 16 FY ended March 17 9 M Dec 31 2017

Duration (Years) 3.16 2.66 3.75 3.91

Yield (%) 7.91 7.66 7.29 7.15

SLR Book – Break-up

Securities March 2015 March 2016 March 2017 Dec. 2017

(Actual) % (Actual) % (Actual) % (Actual) %

G-Sec (GOI)
104,940.0 78.0 96,360.0 69.0 107,000.0 65.0 103,262.0 60.0

SDL
25,910.0 19.0 34,710.0 25.0 56,410.0 35.0 56,033.0 31.0

T-Bills
3,700.0 3.0 8,410.0 6.0 - - 7,913.0 9.0

Total 134,550.0 100.0 139,480.0 100.0 163,410.0 100.0 167,208.0 100.0

SLR Reqd. % 22.0 21.5 20.9 20.0

SLR (Avg)
Maintained % 24.1 22.9 25.5 25.8

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Cross Selling

J&K Bank - New Insurance Policies Sold

450000

400000 26,035
19,402

350000

20,830
300000

250000

200000 10,437
357,328 345,001
150000
271,359

100000
174,618

50000

0
FY 15 FY 16 FY 17 H1 17-18

Non-life Insurance Life Insurance

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CRAR & Leverage

Leverage Ratio in %

7.50% 7.29%

7.00% 6.82%

6.50% 6.20%
6.08%
6.00%

5.50%

5.00%

Mar-15 Mar-16 Mar-17 Dec-17

CRAR Ratio in %
13.00%
12.57%
12.50%
12.00% 11.81%

11.50%
10.80% 10.87%
11.00%
10.50%
10.00%
9.50%

Mar-15 Mar-16 Mar-17 Dec-17

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Leading Bank in JK State as compared to major 23

market players Rs. Millions

JK Bank Market Share in JK State - Sep 2017

700,000 70.0
616,581
600,000 64.8
63.1 65.0

500,000
60.0

400,000
55.0
299,759
300,000 272,066

50.0
200,000
118,999
46,650 45.0
100,000
19,174 42,102
24,344
0 40.0

Credit Deposits
33%
RRBs Other Pvt Sec Banks PSU Banks J&K Bank J&K Bank Share %

Source: Source: State Level Banker’s Committee Minutes, Sep 2017

Clear dominance in J&K State

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J&K Government’s support

• J&K Government has infused a cumulative amount of Rs. 5,320 million in the Bank through two
preferential issues
1st Tranche - 20th March 2017
36,555,051 Equity Shares of Rs. 1/- at a price of Rs. 68.39 per equity share

Name of the Date of Number of Face Issue

Share capital
Shareholder Issue Shares issued Value Price
Chief Secretary
20-Mar-2017 34,494,845 1 68.39 34,494,845
Govt. of J&K
Secretary
Finance Dept. 20-Mar-2017 2,060,206 1 68.39 2,060,206
Govt. of J&K
36,555,051

2nd Tranche - 7th June 2017

35,525,321 Equity Shares of Rs. 1/- at a price of Rs. 79.38 per equity share

Name of the Date of Number of Face Issue

Share capital
Shareholder Issue Shares issued Value Price
Chief Secretary
7-Jun-2017 33,523,150 1 79.38 33,523,150
Govt. of J&K
Secretary
Finance Dept. 7-Jun-2017 2,002,171 1 79.38 2,002,17
Govt. of J&K
35,525,321

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Shareholding Pattern (as on December 31, 2017)

2.76 0.72
Government of J&K 3.63
4.98
FPIs & FIIs 12.69

Resident Individuals

Indian Mutual Funds

Bodies Corporates, Banks, Clg.

Members 15.98
Insurance Companies

Non-Resident Indians 59.23

No. of Shares %age

Government of J&K 329833032 59.23
FPIs & FIIs 88987492 15.98
Resident Individuals 70685923 12.69
Indian Mutual Funds 27749442 4.98
Bodies Corporates, Banks, Clg. Members 20197065 3.63
Insurance Companies 15374694 2.76
Non-Resident Indians 4030744 0.72
Total 556858392 100.00

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Experienced Board of Directors

Name Designation Total experience

Mr. Parvez Ahmed Chairman & CEO 30 Years

Mr. NavinKumar Choudhary, IAS Non Independent Non Executive Director 23 years
Mr. Yogesh Kumar Dayal RBI Nominee Director 20 Years
Mr. Abdul Majid Mir Non Independent Non Executive Director 39 Years
Mr. AzharUlAmin Non Independent Non Executive Director 32 Years
Mr. Mohammad Maqbool Rather Non-Executive Independent Director 35 years
Mr. Mohammad Ashraf Mir Non-Executive Independent Director 34 Years
Dr. Pronab Sen Non-Executive Independent Director 44 years
Mrs. Vijayalakshmi R. Iyer Non-Executive Independent Director 40 years
Dr. Sanjiv Agarwal Non-Executive Independent Director 30 Years
Mr. Sunil Chandiramani Non-Executive Independent Director 30 years
Mr. Dhaman Kumar Pandoh Non Independent Non Executive Director 20 Years
Mr. Rahul Bansal Non Independent Non Executive Director 17 Years

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Liquidity Risk

LCR of the Bank for the nine months of FY 2017-18

350%
LCR

300% 286%
275%
258%
250%
229%
206% 205%
198%
200% 186%

152%
150%

100%

50%

0%
Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

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Organizational Transformation: Deloitte as Consultants

Business Strategy and Business Plan

• 3-5 Year Business plan
• Product strategy and roadmap on various business offerings
• Capital planning in line with the 5 year business plan

Business Process Re-Engineering

• Identifying high-impact processes for optimization and reengineering
• Maximizing IT intervention in business processes
• Define Sales and Marketing structure and associated processes

HR Strategy and Organizational Transformation

• Revisiting the overall organizational Structure
• HR strategy including manpower planning, career development, trainings
• Performance management and succession planning
• Defining of job roles and responsibilities
• Competence requirements and mapping with job roles and responsibilities

Digital Transformation
• Strategy for digital penetration and increasing usage
• Revisit of IT landscape and suggest transformation level

Compliance
• Review of gaps in Compliance function and processes and suggest improvements therein

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J&K Bank – Strategy for growth

Business Strategy

• A comprehensive medium to long term Business strategy has been developed which shall foster Business
growth and profitability while addressing the key pillars for growth and underlying enablers

J&K Strategy
• Strategy to further cement Bank’s position as the market leader in J&K State by contributing to growth of
the state economy and building a profitable franchise.
• To grow the addressable market in J&K state through ecosystem enablement
• Housing, Agriculture / Horticulture, Project Finance for Infra
• Focus on growing / deepening specific segments (e.g., Govt. employees, self-employed, Affluent/HNI,
SME) besides pushing for micro financing

Rest of India (ROI) strategy

• Grow non-corporate portfolio in Rest of India by focusing on niche segments like Housing, Horticulture,
SMEs while having a disciplined execution of Corporate Portfolio

Overseas Foray
• Setting up a representative office at Dubai is proposed as a starter/precursor to establishing full-fledged
overseas branch (Approval from RBI awaited)
• Initiative expected to augment NRI business

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Business Process Re-Engineering: For Bringing in Efficiency

• Transformation of branches from servicing center to sales center by

o Centralization
o Branch role re-definition
o Drive digital penetration and transactions

• Centralized processes under implementation for key processes across retail loans, SME & corporate
loans and liabilities.

• Branch Operating Model and process improvements to free ~20% of the branch staff which would
be redeployed for sales activities

• Branch archetypes and re-classification based on customer segments and offerings into Corporate,
Commercial, HNI, Rural, Universal etc for providing specialized services to customers

• Identified demand and supply-side constraints leading to low digitization and developed initiatives
addressing each constraint (e.g., targeting top 200 customers in each branch, focused digital
campaigns, customer experience managers, and functionality / UX enhancement)

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IT Transformation: Leveraging Technology

• Technology Architecture and Roadmap for achieving

o Alignment of IT with business
o Modernized digital app portfolio
o Integrated information landscape
o Enhanced IT infrastructure and new IT capabilities
o Leverage digital platforms

• Considering the near and long-term objectives of the Bank, the IT transformation shall be
achieved in 2 phases:
o Phase 1 –Priority Initiatives: Timelines: 15-18 months (DMS, Finacle / MIS Upgrade)
o Phase 2 –Able Competitor: Timelines: 24-36 months (CRM)

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HR Transformation: Improving Productivity

• Organization Structure: Customer segment focused organization structure with

centralized operations and controls as well as role specialization under implementation

• Performance Management: PMS redefined with granular level KPIs and

measurement matrix. A performance linked variable pay model designed to drive high
employee performance

• Transfer Policy: The transfer policy has been revised to take into account role
specificity, broader inclusive opportunities, employee opinion, linkage to career
progression, scalability and alignment with business goals

• Succession Planning: A stage by stage evaluation framework has been developed

based on minimum criteria, behavioral and functional assessment of all individuals in
middle and higher management bands for succession planning

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Initiatives undertaken - Reduction in NPAs

Impaired Assets Portfolio Management Vertical created

Two new Impaired Assets Recovery Branches created at Bangalore and

Mumbai

Already existing IARB’s at Jammu, Kashmir and Delhi activated further

“Own Your NPA” campaign launched for operative levels

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Initiatives undertaken - Reduction in NPAs

Recovery of Rs. 7,750 Millions effected during last four quarters (March
2017 to Dec 2017)

Applicability of SARFAESI in J&K from last year improving recovery rate

NCLT / IBC may help in resolution of large corporate accounts in Rest of

India

Improving credit appraisal management to mitigate credit risk

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Handling Restructured Advances

Dedicated teams at Zonal Offices created for regular monitoring,

Supervision at Corporate Headquarters

Improving socio-political environment in the State helping revival of

business activity

Turnover in Restructured Cash Credit (Running) accounts satisfactory

J&K Government’s incentive of shouldering 1/3rd interest payment for the

restructured accounts – to induce prompt payment by borrowers

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Technology: Key Highlights

ALL BUSINESS UNITS ON CBS: 900+ BUSINESS UNITS ACROSS COUNTRY

ATM FOOTPRINT OF 1100+ ATMS ACROSS COUNTRY

P14000+ POS MACHINES

4.7 million+ DEBIT CARDS OF VARIOUS VARIANTS ISSUED

0.42 million+ CREDIT CARDS ISSUED

0.35 million+ E-BANKING USERS

0.5 million+ MOBILE BANKING / UPI USERS

850+ ICT BASED BC LOCATIONS

ISO 27001 CERTIFIED TECHNOLOGY OPERATIONS

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Digital Transformation Journey

EMBARKED ON DIGITAL TRANSFORMATION JOURNEY TO PROMOTE DIGITAL PRODUCTS OF BANK

CONTINOUS UPGRADES & UPDATES TO DIGITAL PRODUCTS – STRIVING TO BE THE BEST

CONTINOUSLY ADDING NEW DIGITAL PRODUCTS TO KEEP UP WITH THE LATEST TECH INNOVATIONS IN BANKING

DIGITAL TRANSFORMATION & STRATEGY MISSION OFFICE HAS BEEN SET UP & VERTICAL HEADS DESIGNATED FOR DIGITAL
CHANNELS OF BANK
TOTAL CUSTOMER

MOBILE BANKING

POS ACQUIRING
KIOSK BANKING
TRANSACTIONS

CREDIT CARDS

EASY COLLECT

BULK UPLOAD
DEBIT CARDS

NEFT / RTGS
E-BANKING
VERTICAL

INDUCED

CREDITS
MONTH

UPI
Qtr.
ended
CUSTOMER 60.39 14.04 1.84 0.39 0.71 0.90 1.12 0.005 0.81 3.83 0.10
INDUCED Sep
TRANSACTIONS 2017
FOR QTR Q2,
Q3 2017 Qtr.
ended
(in Mio) 64.11 15.03 2.18 0.37 1.28 1.40 1.44 0.005 0.96 4.06 0.27
Dec
2017

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