Gov: J&K bank’s autonomy will be safeguarded

Srinagar: Jammu and Kashmir governor Satya Pal Malik on Tuesday said that the autonomy and operational independence of J&K Bank will be safeguarded by the government at all times and that there will be no interference in its day-to-day functioning.

The assurance is seen as a bid on his part to set at rest the controversy triggered by a recent decision of the State Administrative Council (SAC) headed by him which said that the J&K Bank will be treated as a Public Sector Undertaking (PSU).

The SAC had also made the J&K Right to Information Act, 2009 applicable to this bank and said that it should follow CVC guidelines and be accountable to the State Legislature like other state PSUs.

As per the SAC decision taken on November 22, since the State is a major shareholder in the J&K Bank ltd, “a need was felt that it should have a character of a PSU which is subject to general supervision and access for enhanced transparency in the transaction of its business to promote public trust”. It also said that the annual report of the bank shall be placed before the State Legislature through the state finance department.

But the move evoked widespread criticism and resentment by various political, social and trade organisations of the state besides the employees of the bank who held a massive rally on Sunday to demand rollback of the SAC decisions.

The J&K Bank Limited established in 1938 is the only state government promoted bank in the country, with J&K government currently having 59.3 per cent shareholding in the bank.

The governor after meeting a delegation of the bank officials and employees on Tuesday, however, said, “Safeguarding the autonomy and operational independence of the bank is key objective of the government at all times.”

The governor said that J&K Bank is a premier institution of the state and the government would support all initiatives and take necessary steps to make it a “vibrant institution”.