New Delhi: Jammu & Kashmir Bank Monday said it has received RBI's approval for appointment of RK Chhibber as its interim CMD for three months.
Chhibber, Executive President of J&K Bank, was appointed following removal of Parvez Ahmed as CMD of the bank by the Jammu & Kashmir administration.
Ahmed was allegedly involved in corruption, nepotism and favouritism.
"We wish to intimate that the bank has received approval from the Reserve Bank of India for the appointment of RK Chhibber as interim Chairman and Managing Director of the bank for a period of three months with effect from 10 June, 2019," J&K Bank said in a regulatory filing.
Ahmed's removal is part of action taken by Anti Corruption Bureau, which was established a few months ago in the state.
On Saturday, the bank said subject to approval of the RBI, the board has appointed Chhibber as the interim CMD with effect from 8 June, 2019.
"Consequent to this Parvez Ahmed ceases to be Director and Chairman/CEO of the bank from 8 June 2019," the bank said last week.
Chhibber, along with management team of the bank, is holding a conference call with investors of the bank on Monday about the steps to be taken for improving the profitability of the bank.
Ahmed was appointed as Chairman and CEO of J&K Bank in October 2016 and his tenure was to end in a few months.
Jammu & Kashmir government holds 59 percent stake in J&K Bank.
The bank reported 129 percent growth in net profit for 2018-19 fiscal at Rs 465 crore as against Rs 202 crore in the previous fiscal.
Last fiscal, the lender had total business of Rs 1.62 lakh crore, comprising deposits of Rs 89,638 crore and gross advances of Rs 72,226 crore. The business was up 1
4 percent from Rs 1.42 lakh crore a year ago.
Gross and net non-performing assets (NPAs) of the bank fell to 8.97 percent and 4.89 percent respectively at March-end 2019, compared to 9.96 percent and 4.90 percent a year ago.
Stock of the bank was trading down nearly 15 percent at Rs 50.55 on the BSE.
Updated Date: Jun 10, 2019 14:58:27 IST