When the armed insurgency erupted in Jammu & Kashmir in 90’s, majority of banks and financial institutions shut operation and fled from the state. But, with the security situation getting much better and militancy ebbing, banks, lots from the private sector, are back with a bang.

Among the new banks, HDFC Bank is in the top position when it comes to opening branches in the state. HDFC bank begin its operations in J&K in 2005 with a branch at Residency Road in Srinagar. It had only five clients. At this point of time, bank has over 1,200 employees and it recently opened its 54th branch.

“We are opening branches in towns, rural areas and in far off places like Kargil. We have given a choice to customers. People are embracing our bank because of our service quality,” pointed out vice president of the HDFC Bank Iftikhar Ahmad.

Yes Bank, which opened its first branch nine years back, has five branches. Bank is all set to open more branches in the coming months.

ICICI Bank, which came to the state in 2005, is also opening new branches.

“Banks are like grocery shops. If you provide good service to the people they will come to you. There is a huge untapped market in the state,” an official of a public sector bank said. He said that once new banks open at every corner of the state their credit deposit ratio will improve.

“The credit deposit ratio is 37 per cent and we will improve it and bring it on a par with the RBI guidelines,” Ahmad said.