JAMMU AND KASHMIR BANK: A CASE STUDY

A Case Study of Jammu & Kashmir Bank was undertaken. Main
objectives of the present study were to ascertain the financial health of the
Bank and its contribution to the economy of the State of Jammu and
Kashmir. A comparative study of Jammu and Kashmir Bank (a lead
private bank) and Punjab National Bank (a public sector bank) was also
carried out on the variables of financial health..
The study was based on secondary data drawn from annual reports
of the Bank for 5 years (2008-2012). The results were formulated using
parameters such as capital adequacy ratio, asset quality, management
capability, earnings and liquidity ratio using latest statistical technique“CAMEL”. A finding of the study reveals that the financial health of the
Jammu & Kashmir Bank was strong on the parameters of CAMEL. The
J&K Bank contribution to the development of agriculture, micro, small
and medium enterprises, handloom and handicrafts was found significant.
Results of the comparative study show that the Jammu and
Kashmir Bank was found higher on the variables of quality assets, the
growth rate of business , liquidity ratio, earnings per employee, cost
effectiveness as compared to Punjab National Bank . However, the study
reveals that both the banks were found financially viable as they
maintained minimum standard of capital adequacy ratio fixed by Reserve
Bank of India over the period of time.