Govt initiates process to bifurcate Chairman, MD posts
RBI approval likely by Monday
Neeraj Rohmetra
JAMMU, June 8: In a significant decision, the State Government today appointed RK Chhibber, Executive President, as Chairman-cum-Managing Director of Jammu and Kashmir Bank replacing Parvez Ahmed, whose three-year term was scheduled to end in October this year.
This is for the first time that a person from Jammu region has been appointed as Chairman of Jammu and Kashmir Bank, in which the State Government has majority stakes of 59 percent. Click here to watch video
Parvez Ahmed was sacked amid growing controversies in the Bank including lack of transparency, rising Non-Performing Assets (NPAs) and allegations of unfair recruitment process.
Official sources told the Excelsior that initially, RK Chhibber has been appointed as Chairman-cum-Managing Director of Jammu and Kashmir Bank but the Government will shortly initiate the process of bifurcating the post with the appointment of Managing Director for the Bank as per the guidelines formulated by the Finance Ministry when Arun Jaitley was heading it in Modi 1.0 Government as well as the Central Vigilance Commission (CVC) guidelines.
“Approval of the Reserve Bank of India (RBI) to the appointment of new Chairman of the Jammu and Kashmir Bank couldn’t be secured today in view of holiday on account of Saturday and was expected to come on Monday,” sources said, adding the Government has sufficient grounds to justify the new appointment and removal of Parvez Ahmed.
Sources said multiple factors led to removal of Parvez Ahmed from the post of the Chairman before end of his tenure.
There had been charges of lack of complete transparency in Jammu and Kashmir Bank, working of the Bank had suffered during tenure of Parvez Ahmed as the NPA of the Bank kept rising, which invited lot of criticism from the experts and there were genuine allegations of unfair recruitment process as the merit was changed in the Prelims giving rise to the speculations of favouritism in the final selection list.
The Government would now ensure complete transparency in working of Jammu and Kashmir Bank, sources said, adding that the Bank would be like other top nationalized banks with twin posts of Chairman and Managing Director as per the CVC guidelines.
“The bifurcation of the posts of Chairman and MD in the Bank will ensure checks and balances in the prestigious institution,” sources pointed out.
An official order issued today by the Finance Department said: “Parvez Ahmed, Chairman-cum-Managing Director of Jammu and Kashmir Bank shall cease to be the Director on the Board of Director of the Bank and consequently be no longer the Chairman-cum-CMD. RK Chhibber has been nominated as Director on the Board and may be further appointed as the interim Chairman-Cum-MD of the Board”.
The Government took the decision using the powers conferred to it under Article 69 (iii) of Articles of Association of the Jammu and Kashmir Bank Limited.
Parvez Ahmed had succeeded Mushtaq Ahmad on October 6, 2016. His appointment was valid for three years and had to come to end on October 6 this year. However, he was sacked about four months before completion of the term.
Ahmed took to twitter shortly after being removed.
“Absolutely no regrets. Did my job most diligently, honestly and in the best interest of the institution. Open to scrutiny on each and every transaction I have done during my two decades of functioning in the Bank,” Ahmed wrote on twitter.
Dr Haseeb Drabu was also removed as Chairman of Jammu and Kashmir Bank in September 2010 by National Conference-Congress coalition government headed by Omar Abdullah as he had been appointed by the previous regime of PDP-Congress Government. Drabu was made the Finance Minister in the PDP-BJP Government.
Sources said the Government has decided to take long term measures to improve the functioning of the Jammu and Kashmir Bank, so that it becomes a shining example of a well managed Government owned Bank.
The Government, according to sources, has also decided to constitute a Search Committee to identify a suitable panel of names for being appointed to the Board of Directors of JK Bank and subsequently for consideration as Managing Director of the Bank.
The JK Bank has also been directed repeatedly by the Reserve Bank of India to separate the positions of Chairman and Managing Director for better governance. The Government will be taking steps through the Board of the Bank for making necessary changes in its Article of Association/Bye-laws with regard to posting of a separate Chairman and a Managing Director with adequate safeguards in the functioning of the Board to ensure high levels of financial probity, financial control, better risk management and oversight, sources noted.
The Board of Directors in its meeting today has made necessary recommendation in this regard, they said.
The Government is committed to take necessary steps for making the Jammu and Kashmir Bank as one of the best performing bank in the country and accelerate economic growth in State of Jammu and Kashmir, they added.
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