The Jammu and Kashmir government would infuse Rs 530 crores capital into the J&K Bank, which it said was facing Non-performing assets (NPAs) of Rs 6000 crores.
Finance Minister Dr Haseeb Drabu made this announcement in his budget speech in legislative assembly on Wednesday.
Drabu, a former chairman of the bank, said that he was “deeply pained that our premier institution has been suffering some serious lapses in corporate governance and management failures” over the last few years.
“As a promoter of the bank, we did make some efforts in the last two years to sort out the issues of asset quality without impairing the autonomy of the bank,” Dr Drabu said. “With a change in the top management and the board, the reality has now surfaced.”