Founded on 1st October, 1938  Jammu and Kashmir Bank commenced the banking business on 4 July 1939 and was considered the first of its nature and composition as a State owned bank in the country. The bank was established as a semi-State Bank with participation in capital by State and the public under the control of State Government. In year 1971, the bank had acquired the status of a scheduled bank and was declared as an "A" Class bank by the Reserve Bank of India in 1976. Following the extension of Central laws to the state of Jammu & Kashmir, the bank was defined as a government company as per the provisions of Indian companies act 1956.
J&K Bank functions as a universal bank in Jammu & Kashmir and as a specialized bank in the rest of the country. It is also the only private sector bank designated as RBI's agent for banking business, and carries out the banking business of the Central Government, besides collecting central taxes for CBDT. It is the sponsoring bank of J&K Grameen Bank. The bank celebrated its platinum jubilee in the year 2013. To make the year remarkable, the bank achieved a total business of Rs 1000 billion and earned a net profit of Rs 10 billion. On 1 April 2013 the bank surpassed the target of promised Rs 1000 billion business and is confident of meeting its other annual targets as well in its Platinum Jubilee year. On 15 May 2013, bank announced that it has achieved the target of promised Rs 10 billion profit for the FY 2012–13. The bank posted net profit of Rs 10551 million and business turnover of Rs 1034 billion for the FY 2012–13. In its Platinum jubilee year, the banks board of directors recommended special dividend of 500% or Rs 50 per share for 2012–13. The bank's corporate headquarters is in Srinagar near TRC (Tourist Reception Centre). The bank has a network of 865 computerized bank branches and 1035 ATMs across the country as on 10 August 2016.