Leaning their hopes on the back of new management structure of the Jammu and Kashmir Bank, markets have been showing enthusiasm about the bank stock. After falling from the grace to the level of just Rs.11, the bank’s share is progressively taking flight to higher levels during the past one month. It’s not only price movement in the upward direction, but the volume of shares traded too has gone up considerably. Just a month ago, the volume of shares traded was in the range of thousands. Now the volume level has even crossed one crore mark and has remained in the range of 60 to 70 lakhs per day during the past one month. On June 24, 1.70 crore shares were traded at the stock exchanges.
Today, the bank’s stock opened at Rs.20.75 at National Stock exchange (NSC) and Rs.20.86 at Bombay Stock exchange (BSE). In the first two hours of the market over one crore shares were traded. The stock yet again witnessed upward freeze for the fifth straight session. The share closed at Rs.19.70 at NSE and Rs.19.81 at BSE.
According to market experts, pick-up in the enthusiasm towards J&K Bank share is the ‘hope’ of investors who visualize that the professional management structure backed by a thorough professional board of directors would be pulling this premier institution of J&K back to glory.
It is worth mentioning that soon after sacking of former chairman & CEO Parvez Ahmad Nengroo, the shares of bank had plunged 20 per cent on June 10, 2019 amid launch of investigations against alleged web of operations surrounding the sacked chairman.
Stock market analysts have picked the new management structure of the bank as one of the key reason to drive the shares of the bank in upward direction. “After informing the market regulator about splitting the post of Chairman-cum-Managing Director into two separate entities, the investors began to see a ray of hope in J&K Bank stock.
While analyzing the new management structure and the quality of board at its back, the investors have no reason to shy away from the stock,” said a group of domestic investors. Some stock market consultants say that “4-5 more upper circuits are left and the share price may touch 30-35 in future.”
Here it is to be mentioned that pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, the bank intimated to the NSE and BSE about the bifurcation and appointment of Rajesh Kumar Chhibber as the non-executive Chairman and ZubairIqbal, former senior vice president, HDFC Bank, as government nominee director with effect from May 15 for a period of three years or till further order, whichever is earlier.
The Board of Directors at its meeting held on 17th May, 2020, approved the appointment of ZubairIqbal 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, revals a communication filed by the bank to the market regulator.
Just to be mentioned here, the timeline as per the Reserve Bank of India guidelines for regulatory approvals for appointment of Managing Director & CEO and Chairman in private sector banks is 90 days.
ZubairIqbal, having three masters’ degrees (including MBA), CAIIB, Leadership programme from IIM, Ahmadabad and various post graduate diplomas in relevant fields at his back, is having highly acclaimed, illustrious and proven career and impeccable track record in Banking & Financial Services spanning around 30 years. He is well known as architect of bank’s growth in J&K and infusing professionalism and competition in the banking industry in J&K.
He was awarded at Silver Jubilee Celebrations by Institute of Objective Studies, New Delhi in September, 2011 for significant contribution to banking industry of the state. He was also awarded prestigious Gold Star Award by the bank in recognition of significant contribution to the bank and also has won more than 50 laurels to his credit and 13 of those were awarded at International Destinations during International Programmes. He has the distinction of attending more than 50 Domestic and International events on Banking, Financial products and Insurance. He was shortlisted and invited by UK Asia Stem Summit for delivering a Leadership Talk at Cambridge University London. It’s noteworthy that Zubair started his banking career as Probationary officer in J&K Bank in 1989 and shifted to HDFC bank in 2004. During his 15 years of impactful career in J&K Bank he handled key assignments. He is instrumental in designing of some products like Childcare Deposit Scheme, Mehndi Deposit Scheme, Recurring Plus Deposit Scheme etc. in J&K Bank.
R K Chhibber joined the services of the Bank as probationary officer in 1982. He led the bank in various capacities from managing business operations at branch, zonal offices and at corporate level. His main areas of expertise include Credit, Finance, IT, Corporate & Retail Banking, Risk Management, Trade Finance, Foreign Exchange, Business Continuity Planning, HR, and Banc Assurance.
The Bank made remarkable improvements in technology infrastructure and expertise while being headed by him as Vice President IT. He also headed J & K Grameen Bank as Chairman for nearly three years and brought great laurels to the bank by performing with dedication and with accomplishment of key strategic goals.
Prior to stepping into the role of Interim Chairman & MD, he as Executive President functioned as Chief Compliance Officer of the bank besides handling Business Support division, Insurance, Government Banking, Lead Bank, CSC, FID, Subsidiary Management, culture and sports functions of the bank. He has to his backing a vast experience in versatile fields of banking and finance and almost three decades of relentless efforts in raising key milestones in the development of the bank.