ZT News Network

SRINAGAR, JUNE 8: The sudden removal of Jammu & Kashmir Bank’s chairman and CEO Parvez Ahmed, coupled by investigative raids by investigative agencies, are feared to impact its customer confidence. A dip in client confidence is also feared to translate into a share value dip in coming week.

Meanwhile, Jammu & Kashmir government has said that the change of guard in J&K Bank has been done “keeping in view the concerns expressed in various quarters regarding the governance and functioning of the Jammu and Kashmir Bank”.

In an official statement issued to media, it said the Government has decided to “take long term measures to improve the functioning of the Bank, so that it becomes a shining example of a well managed Government Owned Bank.”

Meanwhile, former chairman and CEO, Parvez Ahmed, said on Saturday that he was “open to scrutiny” on every transaction during his tenure with the bank.

 “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,” Parvez wrote on Twitter after his removal.

Moments after the government move, sleuths of Anti-Corruption Bureau raided the bank’s Srinagar-based corporate headquarters including the office premises of the sacked chairman.

Meanwhile, the Government said consequent to his replacement as a government appointed Director, the Board has taken on record cessation of Directorship of Parvez Ahmed as Chairman and Managing Director.

“The Government has appointed Mr. R.K.Chibber, Executive President of JK Bank as the government nominee on the Board. The Board subsequently approved his appointment as an Interim Chairman and MD of the Bank. The Government 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 official statement added.

It also said that 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. The Board of Directors in its meeting today has made necessary recommendation in this regard”, the official government statement further 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”, it further said.