6 Months On, RBI Yet To Clear Name Of JK Bank MD

J&K Bank Headquarters in Srinagar – File Pic

Srinagar: Clouds of uncertainty continue to loom large over the appointment of J&K Bank’s new Managing Director, even as the Reserve Bank of India (RBI) recently extended the term of incumbent Chairman R K Chibber by another six months.

Zubair Iqbal, who was appointed as new Managing Director (MD) of the bank by the Jammu and Kashmir government on May 16, is waiting for the clearance from RBI while the “current dispensation” is not showing any interest to fill up the post, insiders said. After his appointment, Iqbal was asked to wait till the clearance from the RBI was received. However, since then, the much awaited clearance nod has not been received by the bank.

Insiders maintain that getting clearance is not a big deal but the present dispensation was resorting to dilly dally tactics for the reasons better known to them.

“Usually RBI issues clearance within a period of 90 days but this time the wait has been long and we are really surprised,” said a top JK Bank official on condition of anonymity.

After inviting applications for the position of Managing Director in April this year, the former Vice President of HDFC Bank, Zubair Iqbal was appointed for the post by a search committee constituted by the government.

“I am directed to convey that the Government of Jammu and Kashmir has, in exercise of the powers under Article 69 (i) of the Articles of Association of J&K Bank Ltd, decided to appoint Mr Zubair lqbal, senior vice-president of HDFC Bank as a government nominee director on the Board of J&K Bank Ltd. for a period of three years or till further orders, whichever is earlier. Consequent to the above, the Board of the J&K Bank Ltd. may appoint/elect him as the managing Director of the J&K Bank Ltd,” the Finance department had said in a communiqués to J&K Bank in May this year.

After resigning from HDFC Bank, Iqbal joined J&K Bank on May 18 but on May 27 was advised not to join, till the RBI clearance is received.

Since May 18, JK Bank is without any MD. RBI did extend the term of incumbent Chairman after the nod from the government, but hasn’t taken any decision on the clearance issue of Zubair Iqbal.

When contacted, Zubair Iqbal declined to comment on the issue saying government was the best judge (KNT)

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