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Established in 1938, the J&K Bank is the only state-promoted bank in the country, with 59.3 per cent shareholdings in it. As the state is a major shareholder in it, a need was felt that it should have the character of a PSU which is subject to general supervision and access for enhanced transparency in transaction of its business to promote public trust, the release said, adding that purpose of the SAC decision is not to question its day to day management, but a step towards strengthening better corporate governance.

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