Govt begins hunt for new J&K Bank chairman

The government will soon constitute a search committee that would be tasked with selecting new chairman of J&K Bank, a senior official of the Finance department said.

The chairman’s position fell vacant after the unceremonious ouster of former chairman-cum-managing director Parvez Ahmad Nengroo.

The official said the government was committed to taking the bank to the pinnacle of banking sector.

“That is possible only by bringing accountability and good governance which would have impact on overall economic growth of the bank,” he said and added that keeping this in view Governor Satya Pal Malik has asked the Chief Secretary to pick renowned bankers who would form the search committee.

The J&K government is in touch with former Reserve Bank of India Governors who would be part of the search committee, the official said.

A person who is a state subject only would be selected for the coveted post, he said.

Simultaneously, heeding to repeated RBI directions, the government would be appointing a separate chairman and managing director “for better governance”.

“The government will be taking steps through the Board of the Bank for making necessary changes in its Article of Association and bye-laws with regard to posting of a separate chairman and a managing director with adequate safeguards in the functioning of the Board to ensure high levels of financial probity, financial control, better risk management and oversight. The Board of Directors in its meeting today has made necessary recommendation in this regard,” he said.

After J&K government’s request, the RBI has approved appointment of R K Chhibber as interim Chairman & Managing Director (CMD) of the bank for a period of three months with effect from June 10, 2019.