Stakeholders hail Govt for capital infusion in J&K Bank

“We are completely satisfied over the bank’s performance and decisions taken in this regard,” he added.

GKNN
Srinagar, Publish Date: Jun 19 2017 1:33AM | Updated Date: Jun 19 2017 1:33AM
Stakeholders hail Govt for capital infusion in J&K BankFile Photo

Future prospects of J&K Bank to remain as the premier institution of the state have brightened after Jammu & Kashmir government, which is majority shareholder of the bank, infused additional capital of Rs.532 crore. With this infusion the share holding of the state government has gone up to 59.23 pc from the earlier holding of 53 pc.

The state government amid acute financial hardships dishing out Rs. 532 crore  is enough to understand the seriousness of the state government to protect and promote the bank, say some bank watchers. Commissioner/ Secretary, Finance Department,Government of J&K, Navin Kumar Chowdhary at the bank’s 79th annual general meeting (AGM) held here Saturday, made it clear to the bank’s shareholder that the bank would never lose its character as J&K peoples’ bank. 

“The government was conscious about bad shape of the bank and it was our prime duty to rescue this premier institute of the state from the troubled water. We immediately infused Rs 532 Cr as  its additional equity thereby taking its share in the bank from 53 pc to 59.23 pc,” said Navin Choudhary.  The commissioner secretary, Finance, while talking to Greater Kashmir assured people of the state that they would be proactive in taking all steps to protect and enhance the prestige of the bank, which is the only listed of company of the state. 

It will also help the bank to raise further Rs 700 Cr from the capital market to create strong capital cushion for the Bank, he said.

“We are completely satisfied over the bank’s performance and decisions taken in this regard,” he added.

This move by the state government is definitely going to trigger positive business developments for the bank and at the same time will boost the confidence of all other stakeholders in the bank, said an expert in banking and finance.

Meanwhile, bank’s stakeholders have hailed the government’s support to this premier institution of the state and also reviving professionalism in its board. They also praised the present management, especially the chairman of the bank for unrelenting efforts to bring back glory of the bank.

It’s worth mentioning that the bank after the approval of its shareholders inducted eminent personalities accredited with Nationwide recognition of their expertise in respective fields inducted in its board. These include  Mrs Vijayalakshmi R Iyer – Ex-CMD Central Bank of India(Presently Director with IRDA); Dr Sanjiv Agarwal - Fellow Member of the Institute of Chartered Accountants of India and

Institute of Company Secretaries of India, Associate Member of the Institute of Chartered Secretaries and Administration, London (UK); Dr Pronab Sen - a renowned Economist; Sunil Chandiramani - Chartered Accountant,a qualified technologist and IT security specialist with a vast expertise in Corporate Governance; Rahul Bansal –  MBA from London with 17 years  of experience as an industrialist and D K Pandoh – Fellow Member of the Institute of Company Secretaries of India with 20 years of experience in taxation, company law and foreign exchange.

While commenting on the developments, J&K Bank Chairman and CEO, Parvez Ahmed said, “Having Independent Directors on the Board was a statutory requirement. By virtue of the provisions of the Companies Act, 2013 read with SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015; the Bank had to compulsorily appoint not less than half of the total strength of the Board as Independent

Directors. Since the Articles of Association of the bank did not contain any provision enabling the appointment of Independent Directors, we had to create provisions in our Articles of Association to enable us to secure mandatory compliance of  the statutory requirements under Companies Act 2013.” 

“However, there is no change in the basic character of the Board composition. We have ensured that their maximum strength as per articles of association remains within stipulated one-third of the total strength of the Board. The reservation for State Subject Directors at two third of the total number of seats available in the Board is intact,” said the chairman.