Srinagar, Aug 27: The Valley business community today lambasted the government for showing door to the ace economist and chairman, J&K Bank, Dr Haseeb A Drabu, even as maintaining that it could adversely affect the health of the state’s only listed company.
Talking to Greater Kashmir representatives of various segments of trade and industry scathingly criticized the government for its decision “forcing the ace economist of the state to hang his boots a year ahead of completing his term.”
Experts and bankers here fear the rolling of its top executive may adversely affect the financial health of the state’s premier financial institution besides sullying its image on the Indian bourses. “When you look at this issue through the business angle, it does not augur well for the health of a financial institution to remove its head before completing his term. It sends a wrong signal to the investors outside,” said a top banker wishing not to be named.
He said the Foreign Institutional Investors (FIIs) who have over 33 per cent stake in the Bank would not take the decision of the government well. “Decisions like this undermine the autonomy of such institutions which definitely are not being looked favourably by the investors,” he said.
 “The decision reflects the total non-application of mind on the part of the government. At a time when the government’s concern should be to deal with serious challenges the state has been confronting for past more than two months, it is doing something that could further create problems though on the financial front,” said a top official of State Bank of India here on condition of anonymity.
Experts credited Drabu for rejiging the advance policy of the bank by reorienting it towards J&K. “It is because of his ‘look inside’ policy that the credit flow to Kashmir has increased from Rs 1200 crore in 2005 to a whopping Rs 12000 crore in 2010,” they said.
President, Kashmir Chamber of Commerce and Industry (KCCI) Nazir Ahmad Dar termed government decision as “most unfortunate” saying Dr Drabu as chairman was responsible for increasing the credit flow to the state.
“Drabu is a professional, acknowledged economist and a visionary. If at all the state wanted to remove him it should have called the Annual General Meeting of the Bank and discussed the issue there,” he proposed.
He said removing Drabu without assigning “any valid reason” is bound to affect the credibility of the bank among its investors. “Drabu’s decision to keep the bank open on Sundays was reflective of his professional competence, and it should not have been looked through some political prism,” he said.
President Federation Chamber of Industries Kashmir (FCIK) Shakeel A Qalandar said the government decision to remove Drabu is unfortunate. “We can never forget role of Dr Drabu in taking the bank to its new heights,” he said, adding that while J&K Bank had made people of J&K proud, the role of Drabu cannot be undermined.
However, he added that whoever will be the new incumbent “we hope he will continue with the policies of Dr Drabu as otherwise it would cause a policy shift in the bank that would not be good for its own health either.”
President Kashmir Traders Federation (KTF) Jan Muhammad Koul said Drabu had done tremendous work for the traders of the state. He said besides introducing innovative schemes for the traders, “Dr Drabu is the first chairman of the bank who build up a strong connect between the bank and the traders.”
President Kashmir Traders and Manufacturers Federation said the decision to remove Drabu was highly “unfortunate and shocking.”
Sources told Greater Kashmir that the decision of the government has also drawn flak from the employees of the bank. “This is shocking and unfortunate,” said a senior official of J&K Bank, adding that the decision would affect the financial health of the bank.
It may be recalled that the state government Thursday asked Drabu to put in his papers without assigning any reasons for its drastic decision. Informed sources had told Greater Kashmir that Dr Drabu was conveyed the decision of J&K government soon after the cabinet meeting on Thursday was over. The issue of asking Dr Drabu to step down had, however, not come up in the cabinet meeting.
Drabu had taken over as chairman J&K Bank in 2002 (when PDP government assumed office in the state). Dr Drabu had offered to step down after Omar Abdullah-led coalition government came to power in 2008 but Omar had asked him to continue. However, Drabu as economic advisor to the state was replaced by retired IAS officer Jalil Ahmad Khan.

Lastupdate on : Fri, 27 Aug 2010 21:30:00 Mecca time
Lastupdate on : Fri, 27 Aug 2010 18:30:00 GMT
Lastupdate on : Sat, 28 Aug 2010 00:00:00 IST