Background --Top 1000 banks of India,100 of

Asia, 515 branches in India

Ideas Conceived by Maharaja Hari Singh in
1920 to ameliorate the social and economic
status of the people of the state

Incorporation scheme given by Sir Sorobiji, N,
Pokhanwalla the then managing director of
the central bank of India

Incorporated on 1st of october 1938 and
commencing business on 4th july 1939.
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53% stake by the govt. of j&k

First state owned bank of the country.

Banker of j&k state govt. and appointed by
RBI as its agency in j&k for carrying general
banking business of central govt. &
collection of taxes

Declared A class bank by Reserve bank of
India

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Vision – financially sound , profitable, growth
oriented and technology driven bank

Mission –blend corporate goals , with
corporate sustainability and good governance
by hard core professional approach

Values –customer sovereignty, passion for
excellence , continuous innovation
transparency and integrity , people oriented
and social responsibilities

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Philosophy –commitment to ethical practices in
business , shareholder’s value , interest of
shareholders and society

CRISIL- one of the leading credit rating agency re-
affirmed “PI +” rating to banks certificate of
program indicating the highest degree of safety for
timely payment of principal and interest.

Launched “JK Bank Global Access Card” in
collaboration with Master Card recently, which is
Cirrus and Maestro enabled. The card is acceptable
at 4700 ATM’s in India and 8 laces worldwide.

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Private sector Bank despite government
holding 53 per cent of equity.

Salaries of Government officials disbursed
by the Bank.

Only private sector bank designated as
agent of RBI for banking.

Chairman – Mr. Haseeb Draboo

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In the last two years, the Bank has registered a
140 per cent increase in profits.

We have seen a 108 per cent increase in the
rate of return on equity

A vast improvement in the Bank’s efficiency to
generate profits from every invested rupee.

The efficiency of using the assets of the Bank
to generate earnings has increased 104 per cent
in two years.

The stock price has more than doubled in the
last two years. We touched a high of Rs 788 last
month, showing a 288 per cent increase.
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Credit Card of J K Bank
Initially there are three types of Credit
Cards issued by Jammu and Kashmir Bank.
They are as mentioned below:

Gold Card

Silver Card

Blue Card

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Competitors -35 odd banks in the state have a
turnover of 35000 crores out of which 21000
crores are of j&k bank

Out of 10420 crores of advances 7000 are of j&k
bank , this shows the bank’s commitment
towards the people of the state

This is also reflective of the poor performance
of other banks in the state in serving the
people of Jammu and Kashmir

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Future plans-go global physically and have a
unique business model product offering and
service standards ---globally recognized

After state govt. second largest stakeholders
are the FII’s with a combined stake of 36% ,
they are planning to give GDR’s and list their
bank in the international markets

2nd way is a unique business model—we have
the unique brand , the Pashmina-in 1975
Napoleon provided his wife a Pashmina shawl

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Not long ago, an account holder had to wait
for hours at the bank counters for getting a
draft or for withdrawing his own money.
Today, he has a choice. Gone are days when
the most efficient bank transferred money
from one branch to other in two days. Now
it is simple as instant messaging or dial a
pizza.

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Phase I—the General bank of India was established
, next came Bank of Hindustan and Bengal Bank ,
the East India Company established the Bank of
Bengal , Bank of Bombay and Bank of Madras and
called it Presidency banks, these banks were
amalgamated to the Imperial bank of India

Phase II—govt. nationalized the Imperial bank of
India with extensive banking facilities specially in
semi-urban areas , SBI was formed as a principal
agent of RBI, nationalisation scheme was followed
by the govt.

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Phase III—many more products and
facilities in the banking sector in its reforms
measure , country was flooded with foreign
banks and ATM stations , phone banking
and net banking was introduced , entire
system became convenient and swift

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Financial inclusion is delivery of banking
services at an affordable cost to the vast
sections of disadvantaged and low income
groups. Unrestrained access to public goods
and services is the sine qua non of an open and
efficient society. As banking services are in the
nature of public good, it is essential that
availability of banking and payment services to
the entire population without discrimination is
the prime objective of the public policy.

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The scope of financial inclusion can be expanded
in two ways.

through state-driven intervention by way of
statutory enactments ( for instance the US
example, the Community Reinvestment Act and
making it a statutory right to have bank account in
France).

through voluntary effort by the banking
community itself for evolving various strategies to
bring within the ambit of the banking sector the
large strata of society.
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When bankers do not give the desired attention to
certain areas, the regulators have to step in to remedy
the situation. This is the reason why the Reserve Bank of
India is placing a lot of emphasis on financial inclusion.

India the focus of the financial inclusion at present is
confined to ensuring a bare minimum access to a savings
bank account without frills, to all. Internationally, the
financial exclusion has been viewed in a much wider
perspective. Having a current account / savings account
on its own, is not regarded as an accurate indicator of
financial inclusion. There could be multiple levels of
financial inclusion and exclusion.

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Measures of Financial Inclusion

Common measure : % of adult population
having bank a/c – By this standard, 59%
have accounts – 41% unbanked – In rural
areas 39% covered, 60% in urban areas –
Unbanked population highest in NE and
Eastern regions

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Exclusion from credit markets high :
Number of loan a/cs 14% of adult population
– Coverage 9.5% in rural & 14% in urban
areas – Regional disparity large : 25% in
Southern, 7% in NER, 8% in Eastern, 9% in
Central region – Of 203 million households,
147 million in rural areas – 89 million farmer
households – 51% have no access to formal
or informal credit – 73% have no access to
formal credit – No data available for non-farm
& urban households

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• Sources of credit – Non-institutional
from 70.8% (1971) reduced to 42.9%
(2002) – Post-1991 increased – Share of
money-lenders in rural areas increased
from 17.5% (1991) to 29.6% (2002) –
Reduced from 40% (1981) to 25% (2002)

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More developed society more is the thrust
on empowerment of the common person
and low income groups

Financial inclusion task force in UK
identified three priority areas-access to
banking , access to affordable credit, access
to free face to face money advice

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To study the concept of financial inclusion
in depth.

To study the efforts done in our country at
large to deepen financial inclusion.

To study the efforts done by j&k bank in
favour of financial inclusion.

To study the effects of financial exclusion on
the poor and backward people in India

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To identify people who have not yet availed
banking facilities so that I could recommend
them to the bank and no- frills account could
be opened in their favour.

To identify the people who need financial
assistance so the bank could identify them so
that their request be accepted.

To create a path for the bank so that it
becomes a routine of the bank to keep on
finding people who are deprived of the
banking facilities.

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Research design:descriptive

Sources of data: primary and secondary

Primary data was collected through
questionnaires through schedules

Secondary data was collected through
company newsletters , internet , etc.

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Sample size:50

Sample element: educationally and
financially backward people

Sample place : Anantnag

Research instrument: Questionnaire

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 I ,AS A STUDENT OF LOVELY PROFESSIONAL UNIVERSITY AS A
PART OF MY SUMMER TRAINING PROJECT HAVE BEEN
AWARDED THE JOB OF IDENTIFYING PEOPLE THAT DON’T HAVE
YET AVAILED BANK FACILITIES AND DON’T HAVE ANY BANK
ACCOUNTS.HERE ARE SOME QUESTIONS RELATED TO MY
STUDY ,I REQUEST YOU TO KINDLY COOPERATE AND ANSWER
THE QUESTIONS.PLEASE TICK THE APPROPRIATE OPTION.
•
• Name: Occupation:
• Residence:
• Number of dependants:
• Number of earning members in family:
• Q1:Are you presently banking with any bank?
• Yes
• No
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• Q2: If no, give reasons.
• __________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
________________
• Q3Are you aware of any bank?
• Yes
• No

• Q4:Are you aware of the facilities provided by the banks?

• Yes
• No

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• Q5:”Maximum benefit of banking is taken by the rich’’.How much
do you agree with this statement?
• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree
•
• Q6:What is your monthly income?
• Less than 1000
• 1000-2000
• 2000-4000
• 4000-5000
• Above 5000

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• Q7:How much are you able to save each month?
• Less than 500
• 500-700
• 700-1000
• More than 1000
• Q8:Would you like to deposit your saved money in a bank ?
• Yes
• No
• Q9:What interest rates do you expect on your deposits?
• 6-7%
• 8-10%
• 10-12%
• Agree with existing

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• Q10:Are you aware of the various loan schemes provided by banks?
• Yes
• No
• Q11:What according to you should be the rate of interest on the
loan amount?
• Below 5%
• 5-7%
• 7-10%
• Agree with existing rate
• RECOMMENDATIONS:_____________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
__
• THANK YOU

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Q1:Are you presently banking with any bank?

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
yes no

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illiteracy
Q2:If no give reasons.
unawareness

lack of attention
18
6
46 less saving
1

6 unsafe
10 6
8 inconvenience

minimum
deposits
nobody
approached

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Q3Are you aware of any bank?

yes
no
94

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Q4:Are you aware of the facilities provided by
the banks?

no

100

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Q5::”Maximum benefit of banking is taken by
the rich’’.How much do you agree with this
statement?

40
1000-2000
58
2000-4000

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Q6: What is your monthly income?

40
1000-2000
58 2000-4000
less than 1000

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Q7:How much are you able to save each
month?

6
26
500-700
700-1000
68
less than 500

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Q8:Would you like to deposit your saved
money in a bank ?
Column1
2

yes
no

98

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Our country has a large proportion of people who
are deprived of financial services provided by banks.

A large proportion of people in our country don’t
have bank accounts inspite of having a large no of
public and private banks

Banking services are limited to the rich and they get
the maximum benefit of the banking services whilst
I think maximum benefit should be given to the
needy and the poor.

RBI is putting a lot of emphasis on the banks to
provide banking facilities inclusively.

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Banks should try their level best to give their
services without any bias. Preference should be
those who need these services most.

RBI should make strict policies for the banks
so that a maximum level of inclusion is
reached.

Banking formalities should be made much
simpler so that a lay man also is able to
perform them.

Mass awareness programmes should be
conducted throughout the country.

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A special team be formulated in every bank
whose job will be to find out those who are
deprived of the banking facilities and who
don’t have bank accounts and encourage them
to save money and deposit it in their accounts.

RBI should take certain steps to make financial
inclusion obligatory upon every bank so that a
dream of economically sound India is fulfilled.

Small amounts should be encouraged in the
banks and they should be given
encouragement to save more and more.

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The biggest conclusion I took from this study was that the
banking services are limited to a few people. A lot of people have
been deprived from banking facilities. These people are mainly
the illiterate, and the needy. So the banking system needs to be
made inclusive.

Our country is doing a lot of efforts on a revolutionary basis to
overcome financial exclusion and introduce financial inclusion.

All private and public sector banks are doing a lot to remove
financial exclusion in our country. For this no-frill accounts have
been opened and minor loans are given.

Our country is a lot behind in providing banking services
inclusively as compared to western countries. So a lot needs to
be done yet to improve the conditions.

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A lot of people are willing to open accounts but
they are not able to do so because nobody has
approached them so far or they are not aware of
banks. So a mass awareness programme needs to be
formulated to create awareness among the unaware
people.

J& k bank is doing a lot of efforts to reach to
everyone in the valley and for this it has launched
several schemes to help the artisans, fruit growers
etc. It really is doing appreciable work in the valley
and spreading its roots in almost every corner of the
valley.

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The biggest constraint I came over in my study was of
time.I had very less time. If I had enough time I would
have been able to cover a large area and a large no of
people who don’t have bank accounts could have been
identified

Due to ongoing tense conditions in our j&k valley I had
to face a lot of difficulties

There is a lot of rush in the banks which created a lot of
difficulties

The respondents I dealt with were mainly illiterate so I
had to make them understand every thing regarding
banking, interest rates and other banking activities.

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