Jammu and Kashmir Governor Satya Pal Malik’s administration on Saturday removed the chairman and managing director of J&K Bank, Parvez Ahmed and appointed the bank’s executive president, R K Chhibber interim chairman.
According to online media reports, Ahmed was called by the J&K Chief Secretary for a meeting in the morning, where the state government’s decision was probably conveyed.
Here are the probable reasons for Jammu & Kashmir Governments’ sudden move:
- In November 2018, the bank and J&K Governor Satyapal Malik publicly tussled as the latter tried to turn the bank into a public sector institution. Malik also accused the bank of appointing employees according to political recommendations.
- There had been charges of lack of complete transparency in Jammu and Kashmir Bank, working of the Bank had suffered during tenure of Parvez Ahmed as the NPA of the Bank kept rising.
- There were genuine allegations of unfair recruitment process as the merit was changed in the Prelims giving rise to the speculations of favouritism in the final selection list.
- The report also suggest that Dr. Haseeb Drabu was also removed as Chairman of Jammu and Kashmir Bank in September 2010 by National Conference-Congress coalition government headed by Omar Abdullah as he had been appointed by the previous regime of PDP-Congress Government. Drabu was made the Finance Minister in the PDP-BJP Government.
- Online news reports also suggest that the Government has decided to take long term measures to improve the functioning of the Jammu and Kashmir Bank, so that it becomes a shining example of a well managed Government owned Bank.
Ahmad, who was removed five months before the end of his term, was appointed by the Peoples Democratic Party and the Bharatiya Janata Party combine in October 2016, The Economic Times reported. Chhiber who has earlier served as the Grameen Bank chairman and was also one of the executive presidents of the J&K Bank, is the first non-Kashmiri chairman to be appointed to the post.
“Absolutely no regrets. Did my job most diligently, honestly and in the best interest of the institution. Open to scrutiny on each and every transaction I have done during my two decades of functioning in the Bank,” Ahmed wrote on twitter.
WHY WAS THE BANK HEADQUARTER RAIDED?
- The vigilance organisation, which raided the bank’s corporate headquarters at Srinagar, was looking for records of nearly 1,200 appointments.
- These appointments were allegedly made at the behest of political masters of the previous PDP-BJP government in the state and during Ahmad’s tenure.