Srinagar: Government Of J&K today announced an amount of Rs532cr as additional capital infusion in two tranches during next financial year to retain its strategic equity share of 53.17% in J&K Bank which was struggling to maintain its capital adequacy due to huge bad loans, short provisioning undertaken during previous periods , provisioning costs owing to restructuring of its portfolio affected due to recent unrest in the valley and meeting fresh capital requirements as per mandatory guidelines. Dr Haseeb A Drabu, Finance Minister announced this decision while delivering his budget speech in the assembly and further informed the house that he was deeply pained with the serious lapses in the corporate governance and Management failures in the Bank for last few years which has surfaced now after the change in the Management at the Bank.
Thanking the government for its timely support, Chairman and CEO, J&K Bank, Parvez Ahmed while elaborating on the infusion explained that Bank was facing lot of challenges to meet various demands of capital on regulatory guidelines and growth plans with its existing capital position which was under tremendous pressure due to aforesaid factors. Parvez while acknowledging the support of J&K Government highlighted the key ownership role that the government has played from time to time in supporting the growth and expansion plans of the Bank. Parvez while expressing his confidence in Government backing the Bank in its Business and Governance objectives hoped that deep insight of finance Minister into the Governance and business architecture of the Bank, being one of its previous Chairmen shall come handy for revival of the Bank’s glory which would have been very difficult in other situation.
Parvez further asserted that the road to success in Banks journey of achieved excellence would not have been carved without the exemplary support from Government of Jammu and Kashmir. Highlighting the stance of the State Government in securing the clearance of recent restructuring proposal from RBI, Parvez echoed his deep satisfaction and gratitude towards the Government and counted it among the fundamental and most vital strengths of the Bank
Making special mention of Hon’ble Chief Minister and Finance Minister of the State for Government’s hand holding of the Bank in times of strife, Parvez in his thanks note assured that the reciprocation by way of decent dividends to all stakeholders, handsome return on equity in near times and sincere custody of the faith that the government has reposed in the Bank shall be the hall mark of the commitment that “I hereby make” and assured that under able guidance of Finance Minister and continuous support from Government, Bank shall soon reclaim its Glory of prosperous past periods.