According to M Y Khan, chairman of the bank, the growth in deposits in the previous year alone has been of the order of 33 per cent against an average growth of 18 per cent recorded by the banks at the national level. The aggregate advances of the bank have also remarkably increased from Rs 290.06 crore of 1986 to Rs 2158.23 crore by March 1998. Advances are likely to touch Rs 2,800 crore by March 1999. ``The NPAs of the bank which comprised 13 % in March 1995 recorded a sharp decline to just 4.57 % by March 1998 which is appreciably lower when compared to other banks,'' he said.

However, the net profit of the bank for three quarters of the yearended December 1998 alone has been still better at Rs 65.43 crore against Rs 36.16 crore of the corresponding period of the previous year.

J&K Bank has taken several steps to modernise operations of its existing branches and improved service to the customers. ``As many as 81 branches of the bank have already been fully computerised and by the end of the current year the bank proposes to computerise about 30 more branches,'' Khan said. All the new branches of the bank will be opened as fully computerised branches. ``By the end of 2000 the bank plans to computerise 80 per cent of its existing branches. The bank has introduced electronic fund transfer (EFT) between branches at Srinagar, Jammu and Delhi. This facility is being extended to other centres including Mumbai shortly,'' the J&K Bank chief said.

With the opening of 389th branch at Mohammed Ali Road in Mumbai, the number of branches of the bank in Maharashtra will increase to eight. ``Of these five branches are in Mumbai. The bank is opening two newbranches in next few months which will take the tally of bank branches to seven in Mumbai and ten in Maharashtra,'' Khan said. The bank has achieved a capital adequacy ratio at 20.48 %, much higher than the minimum level of 85% stipulated by the RBI for all banks.