Jammu:With instances of loans being granted and recruitment made allegedly on the recommendations of influential politicians coming to light, Jammu and Kashmir Bank’s promoter — the State-government — swung into action on Monday to limit the damage.
It announced a host of measures, including splitting of the post of Chairman and Managing Director, and bringing the bank under the purview of the Right to Information (RTI) Act and the Central Vigilance Commission (CVC).
The move to bring the private sector bank (PvB), which is majority owned by the J&K government, under the purview of RTI and CVC, could stir up a hornet’s nest among the political class in the State. The State Government holds 59.23 per cent stake in the bank.
Currently, PvBs are out of the purview of RTI and CVC. It may be pertinent to note that J&K is currently under President’s rule.
The bank’s board of directors has recommended splitting the position of Chairman and Managing Director, thereby enabling it to comply with RBI and SEBI guidelines.
A director on the board of the bank told analysts that the balance of delegation of power between the Chairman and Managing Director and the board will ensure that the functioning of the bank is absolutely in sync with what investors desire.