J&K Bank in focus
Former Chairman of J&K Bank M.Y. Khan recently reacted to the removal of Chairman and raids on the bank by ABC and said that it will have huge impact on the functioning of the bank and on its credibility in the market. Khan said that Government could have handled the situation in a much better manner and the way Chairman was removed and the raids were conducted on the bank, it gave an negative impression in the markets. He said that Jammu and Kashmir Bank will have to suffer by this action of the government in the long run.
Defending the action of the government, State Chief Secretary claimed that they were forced to remove the former Chairman of Jammu and Kashmir Bank, Parvez Ahmad, due to repeated requests of the Reserve Bank of India (RBI) in view of governance issues.
He said RBI was extremely concerned about governance issues of the Bank. “Let us be very clear that we have not acted against Jammu and Kashmir Bank. The RBI gave us a letter saying that we are extremely concerned about governance issues in J&K Bank. These issues have been pending inspite of repeated requests of RBI and therefore we were forced to remove the CMD”, he said.
He said that search committee of top bankers of the country have been formed to look for a Chairman of the Bank. They have appointed an interim CMD from the hierarchy of the bank. We will have a search committee, with two to three eminent persons on it to chose good persons for appointment as Chairman and Managing Director. He described J&K Bank shining crown of the State and said that it will be restored to its glory. He said that people were being employed in J&K Bank on the recommendations of politicians. He came down heavily on Bank management for spending Rs 50 crore on Golf Course. On Golf Courses, J&K Bank has spend Rs 50 crores under CSR. My Government gives it (J&K Bank) Rs 500 crore last year as capital subsidy.
