J&K Grameen Bank came into existence on 30th June, 2009, after amalgamation of two Regional Rural Banks, viz. Jammu Rural Bank & Kamraz Rural Bank, both sponsored by J&K Bank, with its Head Office at NARWAL, Jammu, vide GoI notification under Sub section (i) of Section 23-A of the RRB Act 1976 (21 of 1976) and commenced its business from 01.07.2009. Bank is having share holding of 50% by Govt. of India, 35% from the Sponsor Bank (J&K Bank) & 15% from Govt. of J&K (Union Territory).

Bank was established primarily to strengthen availability of basic banking facilities in the remote rural areas, mobilize savings from rural masses especially of unbanked areas and to provide credit facilities for carrying out all economic activities for pushing growth in the rural economy ultimately leading to prosperity.

The operational area of the Bank covers thirteen (13) Districts, i.e. 11 Districts in the Union Territory (UT) of Jammu & Kashmir and 2 Districts in the UT of Ladakh.