J&K bank dismisses rumors on its merger

SRINAGAR: Blaming the people with some vested interests behind the rumors rife in recent past, the Jammu and Kashmir bank on Sunday put to rest all the speculations about its merger, assuring the customers of its strong fundamentals.

“The rumors of J&K bank’s merger by some vested interests have raised apprehensions among our depositors, particularly in J&K. Let me put all those speculations at rest by assuring you that no merger is on the cards and the bank’s fundamentals are very strong,” R K Chhibber, the chairman and managing director of State’s premier financial institution said.

Ever since the action has been initiated by Anti-Corruption Bureau in the alleged irregularities prevalent in the bank, there have been speculations about government, which holds 59% stake in the bank, deciding to merge it with another bank.

The revelations of scams one after another have not helped the bank’s cause either. On Saturday, a fresh ‘crop loan’ scam amounting to Rs 1124 Crore surfaced in ACB’s investigation in which 14 bank employees including its former chairman have been booked.

“Let me assure all the stakeholders of the bank that their beloved bank is in safe hands of more than 12000 strong J&K Bank family under the supervision and guidance of a professionally strong board of directors with a robust accountability framework in place for transparency and efficiency. The only way to go for the bank is up and above, towards higher levels of accomplishments,” he said in a statement released today.

J&K Bank is the leading lender of the State with market share of more than 65%, and more than 1.20 Crore account holders and a total business around 1.65 lakh Crore across the country.

Commenting upon the effect of recent political developments in J&K upon the bank, he said, “We certainly believe that the recent developments that have taken place in state won’t affect the essence of this institution, which is to financially serve the people of J&K and catalyze the economic development of this region.

“J&K Bank has witnessed far bigger challenges in the past, and we believe, as always with the emotional equity of the people, support of J&K Government and unmatched commitment of our staff, we shall meet every challenge head-on and come out stronger and more successful,” he said.

While reiterating that J&K Bank has strong fundamentals with all its major financial indicators performing well, the Chairman also asserted that few of the large loans, made some years ago that have turned Non Performing Assets (NPAs) and are being investigated; have been adequately provided for by the bank and shall have no impact on the profitability of the bank.

“Let me assure you that we are here to be with you and lead you towards a more promising and fulfilling economic future”, he said.

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