The turnaround came this year when the state was under Governor’s rule and reports surfaced that liquor baron Vijay Mallya was a defaulter with the J&K Bank.
The source in the report also claims that a single business house owed Rs 70 crore to the bank and had not paid a penny for around two years while it was yet to be declared NPA.
The financial statement is being audited by the Comptroller and Auditor General of India and the report claims that the gross total NPA was pegged to touch Rs 4000 crore mark.
On March 11 this year, Div Com Kashmir, Asgar Samoon said the J&K Bank, considered to be the state’s premier financial institution, lacked vision for investment and representatives from the business community and young entrepreneurs should be part of its policymaking body.
Though J&K Bank Chairman Mushtaq Ahmed could not be contacted for comment, the bank officials refuted the allegations over NPA. “Nothing can be said as of now, till the financial statement is released at the AGM scheduled for June… But NPA is not the issue. If you look at performance of the other banks in the country, our performance is much better,” the official told the local daily.