ACB raids will have no financial implication on J&K Bank, says newly appointed chairman

To ward off public and investor fears, the new appointed chairman and managing director of J&K Bank, RK Chhibber on Monday said the raids of Anti-Corruption Bureau (ACB) will have no financial implications on the bank.

In his first conference call with the investors, Chhibber, according to a J&K Bank spokesperson, asserted, “The raids of Anti-Corruption Bureau (ACB) will have no financial implications on the bank as these are based on complaints.”

Referring to recent change at the level of CMD, Chibber assured the investors and all other stakeholders that the move was part of restructuring processes.

J&K Government on Saturday sacked the bank’s previous chairman Parvez Ahmed on the allegation of corruption against him. 

“The business processes of the bank shall continue to be further streamlined and the bank shall win complete trust of its various stakeholders. It shall continue to march ahead towards higher levels of excellence,” he said.

 “Information systems of the bank are already robust.  Succession planning would be strengthened along with oversight of the board for reduction of risk and improvement of the bank’s regulatory rating,” he added.

He also informed the investors about the proposed separation of posts of Chairman and Managing Director as per the RBI regulations and SEBI guidelines.  The Chief Compliance Officer has been tasked to enhance the preventive vigilance mechanism and the accountability processes.

Representing the J&K Government, which is the major shareholder in the bank, Financial Commissioner, J&K Government Arun Kumar Mehta also interacted with the investors during the conference call.

Financial Commissioner, according the spokesperson, reassured the investors that the government’s unflinching support to the bank shall continue. He said that several steps have been taken to enhance the trust of people in the bank aimed at improving transparency, accountability, and responsiveness. The Government is committed to make the Bank as one of the best performing banks in the country and developments in recent months should be seen in this perspective.