Picture for representational purpose only

Srinagar: The government said that it has constituted a search committee which will split the posts of Chairman and Managing director in the J&K bank.

Earlier both managing director and chairman posts were held by one person.

The decision has come after Governor led dispensation removed Parvez Ahmad Nengroo as JK bank Chairman and subsequently conducted raids on the bank’s headquarters in connection with the alleged fraudulent appointments.

“The Government has also decided to constitute a Search Committee to identify a suitable panel of names for being appointed to the Board of Directors of JK Bank and subsequently for consideration as Managing Director of the Bank”, the official statement said.

“The JK Bank has also been directed repeatedly by the Reserve Bank of India to separate the positions of Chairman and Managing Director for better governance.  The Government will be taking steps through the Board of the Bank for making necessary changes in its Article of Association/Bye-laws with regard to posting of a separate Chairman and a Managing Director with adequate safeguards in the functioning of the Board to ensure high levels of financial probity, financial control, better risk management and oversight. The Board of Directors in its meeting today has made necessary recommendation in this regard.”

The statement added that Government was committed to take necessary steps for making the JK Bank as one of the best performing bank in the country and accelerate economic growth in state of Jammu and Kashmir.

It further said the Parvez Ahmad Nengroo was removed as chairman while “keeping in view the concerns expressed in various quarters regarding the governance and functioning of the Jammu and Kashmir Bank”.

“As a first step, the Government has decided to change its nominee Director on the Board of JK Bank, Mr. Parvez Ahmed, who is also the Chairman and Managing Director.  Consequent to his replacement as a government appointed Director, the Board has taken on record cessation of Directorship of Parvez Ahmed as Chairman and Managing Director,” reads the statement.