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The Jammu and Kashmir Bank Limited (J&K Bank) was incorporated on October 1, 1938, by the then ruler of the princely state of Jammu and Kashmir, Maharaja Hari Singh. It commenced banking operations in July 1939, and was notable as the first state-owned bank of its kind in India, established as a semi-state institution with both state and public participation in its capital. Following India's independence, the bank was formally defined as a "Government Company" under Indian Companies Act provisions, a status it maintains. It was later granted Scheduled Bank status by the Reserve Bank of India (RBI) in 1971.

Today, J&K Bank operates as a Scheduled Commercial Bank and is listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), making it a publicly traded entity. However, the Government of Jammu & Kashmir retains a majority equity stake, which defines its enduring nature as a government company. The bank holds a unique and central position in the Indian financial system, particularly due to its deep regional focus. It functions as the designated agency bank for the RBI for conducting the banking business of the Governments of Jammu & Kashmir and Ladakh. Its significance lies in its primary role as a universal bank for its home territories, where it is a key pillar for economic development, financial inclusion, and the financing of local agriculture and infrastructure.