Govt to infuse fresh capital
Neeraj Rohmetra
JAMMU, Oct 7: Satisfied over the performance of present J&K Bank Chairman, Reserve Bank of India has approved six months extension to R K Chhibber as the bank’s Chairman and Managing Director and the State Government, which is major shareholder in the Bank is also likely to infuse more capital to improve performance of the premier institution of the State.
Besides, to further revive professionalism in the institution, the Bank has embarked on an exercise to induct highly competent professionals on the Board and the process has already been set into motion.
Reliable sources in RBI told EXCELSIOR, “the Bank authorities were conveyed today about the decision to grant six month extension to the Chairman and MD with effect from 10th October, 2019 up to 9th April, 2020”.
Prior to this, Chhibber’s term as the interim CEO was on one-month extension from September 10.
He was appointed as the bank’s interim CEO for three months in June this year following the removal of Parvez Ahmed from the post by the State Government.
Further, to put the J&K Bank back on rails after it was hit by recent scandals unearthed by the Anti-Corruption Bureau (ACB), sources said, “the State Government, which has 59% stake in the Jammu and Kashmir Bank, is likely to infuse additional capital. The infusion is aimed to restore confidence of the stakeholders in the Bank and would also be utilised for further growth”.
In a related development, sources said, “the Bank has decided to induct professionals of highest repute as Directors on the Board of the Bank and the process has been initiated in the 81st Annual General Meeting (AGM) of its shareholders for the financial 2018-19, which was held recently at the corporate headquarters”.
Presently, besides the Chairman R K Chhibber, there are five directors including Arun Kumar Mehta, Financial Commissioner; Anil Kumar Misra, Dhaman Kumar Pandoh, Vikram Gujral and Sonam Wangchuk.
“While Arun Kumar Mehta, Financial Commissioner (Finance) is nominee of the State Government, Misra, who is former Executive Director of RBI was appointed on July 4, this year for a period of two years to further strengthen the board”, sources said, adding, “Vikram Gujral and Sonam Wangchuk both have been appointed as rotational directors with one year tenure”.
Sonam Wangchuck had earlier served as Advisor for MS Denmark in Nepal on a bilateral project of the Danish Government and Gujral, who is also member of J&K High Court Bar Association, has vast experience of 25 years in field of construction and cement industry.
Dhaman Kumar Pandoh, who was earlier on the Board of Director, has resigned today.
As such, now Board will be left with only four Directors.
However, sources said, “to further bolster accountability and transparency in the bank, the institution in consultation with State Government is likely to induct two more Directors within a week. While one of the Director with a J&K cadre IAS official, another senior bureaucrat with experience in financial sector is likely to be repatriated from outside the State”.
“The Bank is also seriously considering a proposal for separation of the posts of Chairman and Managing Director as per Reserve Bank of India (RBI) regulation and Securities and Exchange Board of India (SEBI) guidelines”, sources asserted.
In June this year, the Board of Directors of the bank had also approved implementation of J&K RTI Act, 2009 and adoption of Central Vigilance Commission (CVC) guidelines.
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