The state government issued an order on Saturday which said, “Parvez Ahmad shall cease to be Director on the Board of Directors of the Bank and consequently be no longer the Chairman cum Managing Director of the board.”
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The state government has removed Parvez Ahmad from the post of Chairman-cum-Managing Director of the J&K Bank. RK Chhibber is appointed as the interim Chairman of the bank.
The state government issued an order on Saturday which said, “Parvez Ahmad shall cease to be Director on the Board of Directors of the Bank and consequently be no longer the Chairman cum Managing Director of the board.”
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The order further read, “RK Chhibber, is hereby nominated as the Director on the Board and may be further appointed as the Interim Chairman-cum-Managing Director.”
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The order has been signed by Vishal Sharma, additional secretary to the government, Finance Department.
The order addressed to the company secretary of the bank comes into effect immediately.
The state government owns 59 per cent shares of J&K Bank.
This is the only private sector bank designated as the RBI’s agent for banking business and carries out the banking business of the Central government besides collecting central taxes for CBDT.
The bank has its headquarters in Srinagar, Jammu and Kashmir, India.
The Bank was incorporated in 1938 and is listed on the National Stock Exchange and Bombay Stock Exchange.
J&K Bank follows a two-legged business model whereby it seeks to increase lending in its home state which results in higher margins despite modest volumes, and at the same time, seeks to capture niche lending opportunities on a pan-India basis to build volumes and improve margins.
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