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 ofAnti-Corruption Bureau (ACB) will have no financial implications on the bank asthese are based on complaints.”
Referring to recent change at the level of CMD, Chibberassured the investors and all other stakeholders that the move was part ofrestructuring processes.
J&K Government on Saturday sacked the bank’s previouschairman Parvez Ahmed on the allegation of corruption against him.
“The business processes of the bank shall continue to befurther streamlined and the bank shall win complete trust of its variousstakeholders. It shall continue to march ahead towards higher levels ofexcellence,” he said.
“Information systemsof the bank are already robust. Succession planning would be strengthened along with oversight of theboard for reduction of risk and improvement of the bank’s regulatory rating,”he added.
He also informed the investors about the proposed separationof posts of Chairman and Managing Director as per the RBI regulations and SEBIguidelines. The Chief Compliance Officerhas been tasked to enhance the preventive vigilance mechanism and theaccountability processes.
Representing the J&K Government, which is the majorshareholder in the bank, Financial Commissioner, J&K Government Arun KumarMehta 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 bankshall continue. He said that several steps have been taken to enhance the trustof people in the bank aimed at improving transparency, accountability, andresponsiveness. The Government is committed to make the Bank as one of the bestperforming banks in the country and developments in recent months should beseen in this perspective.