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RBI approves Chhibber's appointment

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Srinagar: Jammu & Kashmir Bank Monday said it has received RBI's approval for appointment of R K Chhibber as its interim CMD for three months.

Chhibber, Executive President of J&K Bank, was appointed following removal of Parvez Ahmed as CMD of the bank by the Jammu & Kashmir administration.

Ahmed was allegedly involved in corruption, nepotism and favouritism.

"We wish to intimate that the bank has received approval from the Reserve Bank of India for the appointment of R K Chhibber as interim Chairman & Managing Director of the bank for a period of three months with effect from June 10, 2019," J&K Bank said in a regulatory filing.

Ahmed's removal is part of action taken by Anti Corruption Bureau, which was established a few months ago in the state.

On Saturday, the bank said subject to approval of the RBI, the board has appointed Chhibber as the interim CMD with effect from June 8, 2019.

"Consequent to this Parvez Ahmed ceases to be Director and Chairman/CEO of the bank from June, 8 2019," the bank said last week.

Ahmed was appointed as Chairman and CEO of J&K Bank in October 2016 and his tenure was to end in a few months.

The bank reported 129 per cent growth in net profit for 2018-19 fiscal at Rs 465 crore as against Rs 202 crore in the previous fiscal.

Last fiscal, the lender had total business of Rs 1.62 lakh crore, comprising deposits of Rs 89,638 crore and gross advances of Rs 72,226 crore. The business was up 14 per cent from Rs 1.42 lakh crore a year ago.

Gross and net non-performing assets (NPAs) of the bank fell to 8.97 per cent and 4.89 per cent respectively at March-end 2019, compared to 9.96 per cent and 4.90 per cent a year ago.

J&K Bank shares tumble 13 per cent at close of trade

New Delhi, PTI: Shares of J&K Bank ended with a sharp loss of nearly 13 per cent Monday following the removal of its Chairman Parvez Ahmed on Saturday.

The scrip dived 12.11 per cent to close at Rs 52.25 on the Bombay Stock Exchange (BSE). During the day, it tumbled 19.93 per cent to Rs 47.60 -- its lowest trading permissible limit -- for the day.

At the National Stock Exchange (NSE), shares cracked 12.71 per cent to close at Rs 51.85.

In terms of traded volume, 13.66 lakh shares were traded on the BSE and over 89 lakh shares exchanged hands on the NSE during the day.

The company’s market valuation fell by Rs 400.41 crore to Rs 2,909.59 crore on the BSE.

In a surprise move, the Jammu and Kashmir government on Saturday removed J&K Bank Chairman Parvez Ahmed. The Anti-Corruption Bureau carried out a raid at the lender’s corporate office in connection with alleged fraudulent appointments.

The government appointed the bank’s executive president R K Chibber, as an interim chairman of the lender, and defended the decision to sack Ahmed, saying it was part of long term measures for improving functioning of the bank in accordance with the RBI guidelines.

“As a first step, the Government has decided to change its nominee Director on the Board of J&K Bank, Parvez Ahmed, who is also the Chairman and Managing Director. 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 spokesman had said.

Within minutes of the government order, sleuths of Anti-Corruption Bureau -- previously known as State Vigilance Organisation -- raided the corporate headquarters of the bank situated at M A Road in Srinagar.

Jammu & Kashmir government holds 59 per cent stake in J&K Bank.

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