Jammu and Kashmir Bank Ltd. said that the Reserve Bank of India has approved the government of Ladakh’s previously announced acquisition of an 8.23% stake in the bank.

In January 2021, the board of Jammu and Kashmir Bank had approved the transfer of the bank’s 4,58,29,445 equity shares to the Union Territory of Ladakh at INR 1 per share.

The Srinagar-based bank is majority-owned by the Indian government.

Earlier this month, Jammu and Kashmir Bank was imposed a fine of INR 1 crore by the Reserve Bank of India. The fine was for the bank’s alleged contravention of directions contained in circulars on ‘Lending to Non Banking Financial Companies (NBFCs) and Bank Finance to Non-Banking Financial Companies (NBFCs)’.

Established in 1938, the bank has over 1,000 branches. Of these, more than 870 are located in the Union Territory of Jammu and Kashmir and the Union Territory of Ladakh.

  India, Jammu and Kashmir Bank, Ladakh, Reserve Bank of India, Union Territory of Ladakh