Reserve Bank of India has extended the term of R K Chhibber, Chairman and Managing Director (CMD) of J&K Bank by a further period of three months with effect from 10 July 2020 or till the appointment of MD & CEO of the Bank, whichever is earlier.
The Bank on Tuesday, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, intimated the stock exchanges (NSE & BSE) about the extension in the term of Chhibber.
"We wish to intimate that the Reserve Bank of India has extended the term of R K Chhibber, Chairman and Managing Director of the bank, by a period of three months with effect from 10th July, 2020 or till the appointment of MD & CEO, whichever is earlier," the bank said in a regulatory filing.
On 10 June 2019, the RBI had approved the appointment of Chhibber as interim CMD of J&K Bank for three months following the removal of Parvez Ahmed from the post by the then state government.
He received a month's extension in September 2019 to continue as the bank's interim CMD, followed by a six months' extension in October last year.
It is worth mentioning that after splitting the post of Chairman-cum-Managing Director into two separate entities, the Board of Directors at its meeting on 17 May 2020 approved the appointment of Zubair Iqbal as Managing Director of the Bank, and R K Chhibber, currently the CMD of the bank, as the Non-Executive Chairman of the Bank for a period of three years, subject to the approval of and to be effective from the date of approval of their appointments by the RBI, reveals a communication filed by the bank to the market regulator.
The RBI approval of Zubair Iqbal as MD & CEO is under process and awaited.
As per the Reserve Bank of India guidelines, the timeline for regulatory approvals for appointment of Managing Director & CEO and Chairman in private sector banks is 90 days.