Jammu and Kashmir Bank is undergoing heavy upheaval. Its stock has fallen more than 30 percent in the last 5 days. The bank’s stock has fallen from Rs 59 to Rs 41. The government of Jammu and Kashmir is defending its move.
The Jammu and Kashmir government on Wednesday defended the decision to remove Parvez Ahmad, chairman of Jammu and Kashmir Bank, on Wednesday, saying it would save the institution and create a bank of international repute.
State Chief Secretary BVR Subramaniam told reporters here. I am saying with full authority on behalf of Governor Satyapal Malik that the bank will be protect and it will be made into a sparkling bank. It will be run by the people of Jammu and Kashmir. We are interest in making it internationally recogniz. It should have branches all over the world including London, Singapore, Dubai etc. ‘
Subramaniam was answering questions related to the government’s removal of Ahmed, the chairman of the bank, last week. He said, ‘Just wait for three months and the results will start coming in front of you.’
The Chief Secretary said that the government has not taken action against the bank. He said that Ahmed has been removed due to repeated letters sent by the Reserve Bank regarding disturbances in Jammu and Kashmir Bank.
He said that the bank was hiring people under CSR. Apart from this, the bank spent Rs 20 crore on the golf course in the name of CSR. Our government gave a capital subsidy of 500 crores rupees to maintain the operation of this bank.
He said that if a bank needs government money to continue its business, how can it make 50 crores rupees on a golf field where only 1000 people will go. He said that if it was making a profit of 2000 crores rupees then the matter was different.