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 unceremoniousouster of former chairman-cum-managing director Parvez Ahmad Nengroo.
The official said the government was committed to taking thebank to the pinnacle of banking sector.
“That is possible only by bringing accountability and goodgovernance which would have impact on overall economic growth of the bank,” hesaid and added that keeping this in view Governor Satya Pal Malik has asked theChief Secretary to pick renowned bankers who would form the search committee.
The J&K government is in touch with former Reserve Bankof India Governors who would be part of the search committee, the officialsaid.
A person who is a state subject only would be selected forthe coveted post, he said.
Simultaneously, heeding to repeated RBI directions, the governmentwould be appointing a separate chairman and managing director “for bettergovernance”.
“The government will be taking steps through the Board ofthe Bank for making necessary changes in its Article of Association andbye-laws with regard to posting of a separate chairman and a managing directorwith adequate safeguards in the functioning of the Board to ensure high levelsof financial probity, financial control, better risk management and oversight.The Board of Directors in its meeting today has made necessary recommendationin this regard,” he said.
After J&K government’s request, the RBI has approvedappointment 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.