While diversifying its activities successfully in other areas of business, J&K Bank is now setting up a subsidiary for Stock Broking business. This is a major leap of the Bank to realize its plans of providing total financial solutions to its customers under one roof.
In this connection, the Reserve Bank of India has today granted approval to the bank for setting up a subsidiary of stock broking and the activities incidental and directly related thereto with the equity capital of Rs.5 crore. It is notable that the approval has been accorded in view of the auditor's qualification free balance sheet of the Bank for the past two consecutive financial years (2005-06 and 2006-07). Earlier, the RBI had rejected it twice.
The Bank is already providing depository services to its customers, but now will be a having a subsidiary for rendering broking and depository services to its customers under one roof. It is worth mentioning that the Bank has plans of opening financial centers, including depository service outlets in all district headquarters in the J&K State. Presently, the Bank is having two such centres one each at Jammu and Srinagar.