JK Bank shares likely to take a hit

Srinagar, July 4: Market analysts have predicted a sinking of J&K Bank stocks owing to the recent resignation of three directors of J&K Bank under circumstances which were not clear.

Since the day of the resignation, speculations are rife that J&K Bank should have informed the Bombay Stock exchange about its three key directors leaving the board last week.

Three directors of the J&K Board Dalip Kumar Kaul, Khaver Alam Jeelani and Vikrant Kuthiala resigned from their positions citing ‘personal reasons’ on June 29.

Curiously, the J&K bank stocks closed 2.05 percent higher at Rs 69.65 on the BSE on the day the trio resigned. However, market analysts market pundits are apprehensive of business in the coming days.

Market analysts have also said that the local investors remain unperturbed with such resignations, it is the bigger, foreign investors who would be hurt the most. The Foreign institutional investors, say the sources, are actually next to the government’s in major share holdings.

Dalip Kaul is a Managing Partner of Baweja & Kaul, a firm of Chartered Accountants. A Fellow Member of the Institute of Chartered Accountants of India (ICAI), he has a Bachelor’s Degree in Commerce (Honours) and LLB from University of Delhi.

Likewise Khaver, is CEO of Hotel Highlands Park, Gulmarg. Prior to this he was associated with Morgan Stanley Investment Management (London) from the year 2002 to 2007.

Vikrant Kuthiala, on the other hand, is B Com (Hons) from Hindu College, Delhi University.

A prominent Businessman from Jammu with interests in steel manufacturing and hydel projects. He is also representing on the committees of various academic and professional organizations  prominent being the Regional Advisory Committee of Central Excise & customs, J&K, Chamber of Commerce & Industry, Jammu and J&K State Committee of Federation of Industries of India, New Delhi.

At present there are seven directors on the board.

Prominent among the directors is Chairman and Chief Executive Officer Mushtaq Ahmad.

Among the others are independent directors – Azhar-ul-Amin, Masooda Jabeen and Rakesh Kumar Gupta.

One RBI nominee-JP Sharma and two non-executive directors- Abdul Majid Mir and Navin Kumar Choudhary.