In the wake of an aged long desire of the people of the State of Jammu & Kashmir, the Azad Government of the State has since established the Bank of Azad Jammu & Kashmir. The Bank in legal parlance took its birth through an enactment passed by the Legislative Assembly of the State of Azad Jammu & Kashmir in the year 2005. The bill passed by the Assembly was finally assented to by the President of Azad Kashmir. As per the enactment, the authorized capital of the Bank is two billion rupees divided into two hundred million ordinary shares of ten rupees each. However, the initial paid up capital of the Bank is five hundred millions rupees. Further, the State Government at all times has to maintain equity contribution of not less than 51%. For remaining part of the equity, participation from the private sector shall be sought. In this concern, we are receiving a good response and are on our way to accept subscription from such parties who have strong representation in the private sector.
Effective November 01, the Bank started functioning as a non-scheduled commercial bank. To date, the Bank has network of 51 branches. As the time goes on, the Bank is flourishing and marching towards its destination for locating a better standing in the banking arena. Further, the Government intends to get the Bank scheduled with the State Bank of Pakistan in the shortest possible time.
As mandated by the Statute of its establishment, the Bank is required to achieve the following objectives:
To mobilize private savings and public funds for diverting the same to productive channels and ensure their availability.
To promote industrial, agriculture, rural micro financing and other socio-economic processes through the active participation of private as well as public sectors and the State.
To Help under-developed areas and create employment opportunities especially in the rural areas of the State. Further, to guide and assist the people of Azad Jammu & Kashmir serving overseas to effectively and profitably invest their foreign savings in the State.
To create a diversified and sound port-folio for utilization of the otherwise idle funds and other investment in the existing as well as new ventures specially in the pioneering of high tech, agro-based, export oriented and engineering projects to ensure maximum returns, and
To participate and seek the share of the State in the capital market by way of subscription through the locally pooled resources in the leading stock exchanges of neighboring Pakistan and eventually paving the way for the establishment of stock exchange in the State.
KASHMIR BANK INITIATIVES:
MOU With KASB BANK
KASB Bank signs agreement with Bank of Azad Jammu and Kashmir to extend its Home Remittance network.An agreement was signed in Islamabad between KASB Bank Limited and Bank of Azad Jammu and Kashmir to facilitate distribution of home remittances through the Bank of Azad Jammu and Kashmir’s 35 branches as part of the Pakistan Remittance Initiative (PRI) sponsored by the State Bank of Pakistan, Ministry of Finance and Ministry of Overseas Pakistanis. MOU regarding Home remittances would open up further avenues of business for the Bank of Azad Jammu and Kashmir and allow the banks to better serve the people of Azad Jammu and Kashmir not just here but abroad as well.
MOU With AKRSP
AJKRSP and AJK Bank have agreed to develop a long term partnership between the two parties for the overall goal of providing financial services to the un-served population of AJK through the platform of community organizations (COs), village organizations(VOs) and Local support organizations (LSOs) fostered by AJKRSP and its partner RSPs.The long term objective of the proposed partnership is to link the COs with AJK Bank so that they access financial services directly from the bank while the short term objective is to develop some processes to achieve the long term objective .