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J&K Bank: Capital infusion took J&K govt ownership to 59pc

KT NEWS SERVICE. Dated: 6/19/2017 4:14:41 PM

JAMMU, June 18: As the major stakeholder in J&K Bank, the state government remains ever committed and serious in its support as it is the most premiere financial institution of the state.
State’s Finance Secretary Navin Kumar Choudhary made these remarks in presence of J&K Bank Chairman and CEO Parvez Ahmad and other dignitaries present at the bank’s 79th AGM here at SKICC Srinagar.
“At the critical juncture, when the bank was in dire need of additional capital, the Government of J&K infused Rs 532 Cr as its additional equity thereby taking its share in the bank from 53 pc to 59.23 pc. This infusion will translate into Growth and expansion and at the same time boost the confidence of all other stakeholders in the bank. It will also help the bank to raise further Rs 700 Cr from the capital market to create strong capital cushion for the Bank. We assure the people of this state that the Government in all circumstances will protect and enhance the prestige of the bank”, he said.
Replying to querry on the appointment of directors on bank’s board, Chowdhury said, “Regulatory norms have become stricter and various new laws have come into place since the bank’s original Article of Association dated back to 1938 capturing among other things its board composition. However, the management has been cautious and careful enough not to amend its Article of Association in any way meanwhile ensuring the compliance with proper due deligence. The character of board in terms of structure has been kept intact while complying with other regulatory norms like professionalizing the composition of board to meet the growing needs of knowledge, expertise and experience in almost all the aspects of ever-changing world of banking and finance.”
“We are completely satisfied over the bank’s performance and decisions taken in this regard”, he added.