Srinagar:
Former Jammu and Kashmir finance minister and Apni Party president Altaf Bukhari has questioned Jammu and Kashmir Bank’s lending pattern, recruitment policy and board composition, alleging that the bank has reduced lending in the region while increasing it outside Jammu and Kashmir.
Bukhari on Monday alleged that the credit-growth figures indicated that Jammu and Kashmir Bank was reducing lending in Jammu and Kashmir while increasing lending elsewhere in the country.
“J&K Bank has recorded 9% credit growth in Jammu and Kashmir compared with 30% in the rest of the country. This indicates that somewhere along the way, J&K Bank has withdrawn from the region and lending has been reduced in Jammu and Kashmir,” he said.
“Jammu and Kashmir Bank, as you all know, is a jewel in the crown. It has an important role in the development of Jammu and Kashmir and in the lives of its people. I have also been the finance minister of this state, and I felt saddened when I saw these results,” Bukhari said at a press conference in Srinagar.
The bank said it would respond to Bukhari’s allegations on Tuesday.
Bukhari also questioned the business rationale behind the alleged lending pattern, claiming that the bank’s non-performing assets on lending outside Jammu and Kashmir were four to five times higher than those on lending in Kashmir. “Why should lending be reduced in Jammu and Kashmir and increased outside J&K,” he added.
He also said that the Jammu and Kashmir government has a majority shareholding in the bank. “The Chief Minister Omar Abdullah, who also holds the finance portfolio, should address the issue. J&K Bank is the bank of the Jammu and Kashmir government. They are the majority shareholder,” he said.
Bukhari also alleged that the bank’s recruitment policy has been changed as far as hiring outside Jammu and Kashmir is concerned. He said the bank had traditionally recruited residents of Jammu and Kashmir even for posts outside the region.
He alleged that the bank’s present management was considering a policy of recruiting local residents for its operations outside Jammu and Kashmir. “This means another avenue of employment for the youth of Jammu and Kashmir is being blocked,” Bukhari said.
Bukhari also questioned the composition of the bank’s board of directors, alleging that Kashmir had negligible representation.
“Representation from Kashmir on the board of directors is negligible. Rather, I would say the majority of the directors are from outside Jammu and Kashmir. How is that justice? What kind of justice is this?” he said.
He claimed that despite the elected government having been in office for two years, the board did not have adequate representation from Jammu and Kashmir. He demanded an immediate clarification on the bank’s recruitment and board composition. “If this is being done as part of a well-thought-out plan, it is a matter of concern and should be clarified immediately,” he said.
Bukhari also alleged that efforts were being made to shift J&K Bank’s headquarters from Srinagar, describing the reported move as a matter of serious concern. He warned that any move to shift the headquarters could hurt sentiments in Jammu and Kashmir and appealed to the government and others concerned to intervene. “Emotions can be played with to an extent but not beyond that,” Bukhari said.
