The Reserve Bank of India is yet to give its nod to Jammu and Kashmir government’s decision to bifurcate the top post of Chairman and Managing Director of J&K Bank, despite the government announcing appointment of separate MD months back.
The Jammu and Kashmir government on May 15, appointed Zubair Iqbal as the Managing Director of the J&K Bank. He had been serving as the Senior Vice-President (SVP) of HDFC Bank.
The order by the J&K government had notified that Iqbal has been elected to the Board of Directors of the bank for a period of three years. “The Government of Jammu and Kashmir has decided to appoint Zubair Iqbal as a Government nominee/Director on the Board of J&K Bank Ltd. for three years. Consequently, the Board may appoint him as the Managing Director of the J&K Bank Ltd,” read the order issued by the Finance Department of the Union Territory.
However, according to a senior Finance Department official “the proposal to split the post of CMD had to be approved by the RBI as per Banking Regulation Act. However, there has not been any communication from them in this regard so far. As a result of which incumbent CMD R K Chibber continues to hold both posts.”
CMD J&K Bank, RK Chibber said “there is no communication from the RBI about the bifurcation of the CMD’s post so far. Only the RBI can answer about it.”
A senior finance department official said that the government in May after making announcement of appointment of Zubair Iqbal as the first separate MD of J&K Bank had designated RK Chibber who is serving as the interim CMD of the J&K Bank as the Chairman of J&K Bank.
He was elected for the now ramified position in June last year following the removal of ex-CMD Parvez Ahmed Nengroo by the then state government. In May after the order to appoint Iqbal as MD, Chibber was appointed to the bank’s board as a non-executive director for the next three years.
Soon after the announcement about Iqbal’s appointment, the former chairman of the bank Parvez challenged the order of bifurcation in Jammu and Kashmir High Court. It is pertinent to mention that Reserve Bank of India has extended the term of R K Chhibber, Chairman and Managing Director (CMD) of J&K Bank by a further period of three months with effect from 10 July 2020 or till the appointment of MD & CEO of the Bank, whichever is earlier.
The Bank on Tuesday, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, intimated the stock exchanges (NSE & BSE) about the extension in the term of Chibber.