RBI approves Chhibber’s appointment as interim CMD of J&K Bank

RBI approves Chhibber’s appointment as interim CMD of J&K Bank

Jammu & Kashmir Bank Monday said it has received RBI's approval for appointment of R K Chhibber as its interim CMD for three months.

Chhibber, Executive President of J&K Bank, was appointedfollowing removal of Parvez Ahmed as CMD of the bank by the Jammu & Kashmiradministration.

"We wish to intimate that the bank has receivedapproval from the Reserve Bank of India for the appointment of R K Chhibber asinterim Chairman & Managing Director of the bank for a period of threemonths with effect from June 10, 2019," J&K Bank said in a regulatoryfiling.

On Saturday, the bank said subject to approval of the RBI,the board has appointed Chhibber as the interim CMD with effect from June 8,2019.

"Consequent to this Parvez Ahmed ceases to be Directorand Chairman/CEO of the bank from June, 8 2019," the bank said last week.

Chhibber, along with management team of the bank, is holdinga conference call with investors of the bank on Monday about the steps to betaken for improving the profitability of the bank.

Ahmed was appointed as Chairman and CEO of J&K Bank inOctober 2016 and his tenure was to end in a few months.

Jammu & Kashmir government holds 59 per cent stake inJ&K Bank.

The bank reported 129 per cent growth in net profit for2018-19 fiscal at Rs 465 crore as against Rs 202 crore in the previous fiscal.

Last fiscal, the lender had total business of Rs 1.62 lakhcrore, comprising deposits of Rs 89,638 crore and gross advances of Rs 72,226crore. The business was up 14 per cent from Rs 1.42 lakh crore a year ago.

Gross and net non-performing assets (NPAs) of the bank fellto 8.97 per cent and 4.89 per cent respectively at March-end 2019, compared to9.96 per cent and 4.90 per cent a year ago.

Stock of the bank was trading down nearly 15 per cent at Rs50.55 on the BSE.

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