Jammu & Kashmir Bank Limited has announced significant changes in its senior management structure, promoting seven Deputy General Managers to General Manager positions effective March 31, 2026. The bank has also confirmed the retirement of one General Manager on the same date, marking a notable transition in its leadership team.

Senior Management Promotions

The bank has elevated seven executives from Deputy General Manager to General Manager positions, recognizing their contributions and extensive experience within the organization. The promoted executives demonstrate remarkable tenure with the bank, with service periods ranging from 29 to over 35 years.

Executive Profiles and Experience

The newly promoted General Managers bring diverse educational backgrounds and extensive banking experience to their enhanced roles. Mr. Riyaz Ahmed Wani leads in terms of tenure, having been associated with the bank since 1990 and handling critical assignments at operational and administration levels for over 35 years. He holds a Masters degree in Science with CAIIB certification.

Several executives joined the bank in the mid-1990s and have completed nearly three decades of service. Mr. Sanjay Gupta, associated since 1996, is an Arts graduate with CAIIB qualification. Ms. Anita Nehru, also joining in 1996, holds a Masters degree in Business Administration with CAIIB. Mr. Suresh Kumar Chowdhary, another 1996 recruit, possesses a Masters degree in Science with CAIIB.

Technical and Professional Qualifications

The promoted executives demonstrate strong technical and professional credentials. Mr. Aneet Kanwal Singh Bagee, associated with the bank since 1995, holds a bachelors degree in Computer Engineering. Mr. Irfan Anjum, also joining in 1995, possesses a bachelors degree in Electrical Engineering with CAIIB certification. Ms. Hafeeza Rahim, associated since 1997, is a Science graduate with CAIIB qualification.

Management Transition

Concurrently with the promotions, Mr. Nishi Kant Sharma, General Manager, has retired from the bank's services with effect from the close of business hours on March 31, 2026. His retirement results in his cessation as a Senior Management Personnel of the bank, creating the opportunity for the organizational restructuring.

Regulatory Compliance

The bank has made these announcements pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure includes comprehensive details as required under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring full transparency regarding the senior management changes.

Jammu & Kashmir Bank has received a significant GST demand notice from tax authorities, marking a major regulatory development for the banking institution. The bank disclosed this information to stock exchanges on March 24, 2026, in compliance with SEBI listing regulations.

GST Demand Details

The Additional Commissioner, Central GST Commissionerate, Jammu issued a demand order dated March 23, 2026, which the bank received on the same day at 5:46 PM. The financial implications are substantial, with the demand covering both primary liability and penalties.

Nature of Alleged Violation

The GST demand centers on the bank's Transfer Pricing Mechanism (TPM), specifically targeting interest receivable under TPM between corporate headquarters and branches from a common pool of funds. The tax authority has classified these transactions as financial services subject to GST liability.

The demand order covers an extensive period from February 23, 2020, to March 2024, encompassing transactions under the bank's TPM framework. This mechanism represents an internal allocation system used by banks to determine pricing for incremental loans, investments, and deposits.

Bank's Position and TPM Framework

Jammu & Kashmir Bank has outlined its defense strategy, emphasizing the regulatory foundation of TPM systems. The bank highlighted several key points regarding TPM operations:

• TPM serves as an internal allocation and measurement mechanism for fund exchange between business units
• All TPM entries are purely notional in nature and nullified in entity-level financial statements
• The mechanism was adopted pursuant to Reserve Bank of India guidelines dated October 7, 1999
• TPM functions as a critical component of profitability measurement, allocating Net Interest Margin (NIM)

The bank maintains that TPM transactions should not be treated as financial services attracting GST provisions, citing expert opinion supporting this position.

Legal Strategy and Court Precedent

Jammu & Kashmir Bank expressed confidence in challenging the demand through appropriate legal channels. The bank cited expert opinion suggesting the demand lacks legal justification and anticipates favorable outcomes in court proceedings.

Significantly, the bank referenced an existing precedent where the Hon'ble High Court of Jammu and Kashmir & Ladakh at Srinagar granted a stay order against a similar GST demand on TPM transactions for another GST registration of UT of Jammu and Kashmir.

Expected Impact Assessment

Despite the substantial monetary value of the demand, Jammu & Kashmir Bank assessed that the order will have no material impact on its financials, operations, or other activities. This assessment is based on:

• Strong case merits supported by expert legal opinion
• Precedent of court stay orders on similar demands
• Confidence in the legal recourse strategy
• Understanding that TPM represents standard banking practice across India

The bank's disclosure fulfills requirements under Point 20 Part A of Schedule III to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding this regulatory development.