The Saturday morning sudden and swift change of leadershipat Jammu and Kashmir Bank caught many people unawares. It caused ripples in theorganizational and business circles. We all know JK Bank was not in goodadministrative and financial health for long and required some meticulousinterventions by the government. The authorities should have intervened the dayGovernor of the state was embarrassed to make adverse remarks regarding bankshiring system after getting representations from some aspiring bank officers.However, the bank’s public relations department finely managed the damagecontrol operation, and the situation was brought to normal [hunky-dory level].Some people call it black Saturday and others are more than happy for thissurgical operation. But very little people understand the importance of thispremier financial institution in the state’s banking and development sector.Government, with its majority share in the bank, is within its right to changethe leadership and secure public interests. However, financial institutions arealways very fragile and have to be handled with care. The bank should notbecome a political arena to distribute freebies and settle political scores. Abank is a Bank [trust], and interference of any kind will leave it worthless.
Anyways, whether early morning change of guard and minuteslater subsequent raids by investigating agencies was ill-timed and hasty, thatis what government has to decide, and for that, it is answerable for its everyaction within the system of governance. However, every accused is innocentunless proven guilty after due process of law. At this crucial juncture, whenthe reputation of this prestigious institution has got a considerable dent, weall must behave cautiously. The Bank’s ousted Chairman and CEO, and his closeassociates have every right to defend themselves, and till then, we shouldrespect their integrity. Unfortunately, social media is abuzz with obnoxiouslysmelling accusations of corruption, nepotism, and wrongdoings. Yes, there canbe some truth in this, but it has to go through an investigative grind.Unfortunately, some chronic and willful defaulters have joined the bandwagonand started a defamatory campaign against expelled management. Instead oftimely paying public money, they lose no opportunity to hide their dirty facebehind the bank’s confusing situation.
For quite some time, JK Bank’s closets were stinking, andits PR team was desperate to hide this smell. They would resort to all sort ofploys to scare the curious people, particularly the activists. A slight pokewould invite legal notices and defamation suits. As if the bank was above everylaw of the land. The unfortunate part of this whole saga is Bank management wasnever ready to share the information about big wilful defaulters. Only pettydefaulters were named and shamed regularly. This attitude of the managementraised many doubts about the bank being a real public asset. Stubborn attitudeis the outcome of nexus between long-term defaulters their political mastersand several unscrupulous moles within the bank. No denial, resentment againstBank management in lending, human resource, and infrastructure management wasbrewing for the last several years. And more than Bank management it was thepolitical masters who ruined the work-culture of this once prestigiousorganization. Maharaj Hari Singh will be turning in his grave while witnessingBanks present situation. Even after being an autocrat, he created a visionaryfinancial institute with enormous autonomy and we as hypocritical populistsbrought it to the doorstep of nepotism and corruption.
Overall, JK Bank as an institution cannot be denied itsshare of contribution in the state’s development and the glory it has achievedover the period. Many of its populist schemes of macro and micro-financing forfarmers, artisans, and other needy people have a considerable impact onemployment and small industries sector in the state. JK Banks corporate socialresponsibility (CSR) has played its role in reviving state’s several lostheritage identities. Many people will differ with me, but JK Bank’s dedicatedrole in restoring and reviving the Kashmir Golf Course (KGC) in the heart ofSrinagar city as its green lung cannot be denied. However, even after spendingmillions the Bank management because of the reasons best known to them wereunable to make this vast breathing space and attractive tourist destinationoperational just after completion last year. Thus politics and severalindividual elements put the bank’s huge CSR investment in the risk of gettingwasted. KGC investment was the best use of CSR funding for environment andbeautification but the indecisive and ever succumbing management, on the onehand, bothering least about piling NPAs were looking for the infamous ‘EastIndia Company’ type of niche in KGC.
Better late than never, the government has taken anunpopular but a bold step. Now the action should get to its logicalconclusion—stemming out corruption, discourage nepotism and above all stopdoling out bad loans. A white paper about working of the bank and it’s NPAs(Non Performing Assets) for last one decade will be the best option to satisfythe public and the shareholders. The present crisis in the bank has not gonewell with Banks standing in the stock market, and if damage control measuresare not taken well in time, the bank may face huge crisis about trustworthinessand financial health.