Shares of Jammu and Kashmir Bank settled 12 per cent lower after its Chairman and Managing Director Parvez Ahmed was removed by the state government on Saturday on charges of “nepotism and corruption”.
The state Anti-Corruption Bureau (ACB) also carried out araid at the bank’s corporate office in Srinagar for two days after the Ahmed’sremoval.
ACB officials said documentary evidence regarding the’mismanagement, nepotism and corruption’ by the ousted Chairman were collectedand investigation was on.
The bank’s shares on the BSE closed at Rs 52.25, lower by Rs7.20 or 12.11 per cent from it previous close. Earlier in the day, the sharesslumped nearly 20 percent to an intra-day low of Rs 47.60 per share.
On Monday, the bank said that it has received the ReserveBank’s approval to appoint RK Chhibber as the interim Chairman and ManagingDirector of the bank for a period of three months with immediate effect.It also said that the board of directors intheir meeting held on June 8, 2019, had recommended the splitting of the postof Chairman and Managing Director of the bank in compliance to the SEBIregulations and RBI guidelines.