The Bank of Azad Jammu and Kashmir (BAJK), the region’s only public-sector bank, has taken a major step forward in its institutional development by formally applying to the State Bank of Pakistan (SBP) for grant of Scheduled Bank status.
Bank of AJK seeks scheduled bank status, marks major milestone in financial transformation
MIRPUR, Jun 1 (APP): The Bank of Azad Jammu and Kashmir (BAJK), the region’s only public-sector bank, has taken a major step forward in its institutional development by formally applying to the State Bank of Pakistan (SBP) for grant of Scheduled Bank status.
According to an official statement, the application was submitted during a meeting between representatives of BAJK and officials of the Banking Policy & Regulations Department (BPRD) at SBP Headquarters in Karachi on Monday. The move has been described as a key milestone in the bank’s transformation process, positioning it to become the first government-owned bank from AJK to achieve Scheduled Bank status under SBP regulations.
Established in 2006 through an Act of the AJK Legislative Assembly, the bank was created to meet the financial and developmental needs of the region. Over the past two decades, it has expanded its operations across Azad Jammu and Kashmir, contributing to financial inclusion, business support, government transactions and broader economic development.
The statement said the bank has already completed major regulatory requirements, including enhancement of paid-up capital, strengthening of corporate governance, improvements in risk management systems, modernization of IT infrastructure and compliance with AML/CFT standards. The application will now undergo SBP evaluation, including assessments of governance, management fitness and operational readiness, with a decision expected after an estimated review period of around eight weeks.
