Panel to aid ailing JCCB achieve requisite CRAR

Rs 187 Cr required to renew licence from RBI

JAMMU: The Governor’s administration today constituted eleven-member Professional Board for implementation of the revival package sanctioned by the Centre and state government to enable the Jammu Central Cooperative Bank (JCCB) to achieve 4% Capital Risk Adequacy Ratio (CRAR) for the bank to revive its operations.
The Ordinance for revival of package was passed in June this year, vide number V of 2018 years after RBI refused to renew the license of the JCCB.
Official sources said that the RBI had banned three cooperative banks including JCCB from accepting fresh deposits on account of a high negative net-worth.
It had stipulated September 30, 2012 as the deadline for these banks to improve their minimum Capital Adequacy Ratio (CRAR) and net worth.
CRAR is a percentage of the bank’s risk-weighted assets and it should be around 4% in case of these banks.
It is stated that Jammu Central Cooperative Bank, (JCCB) required Rs 187 crores to attain 4% of CRAR and to become eligible for license.
The Professional Board constituted today include Administrative Secretary, Finance Department as Chairman and Administrative Secretary, Cooperative Department, Divisional Commissioner Jammu, Deputy Commissioner Jammu, Director Agriculture Jammu, Seema Shekhar Khajuria, Additional Advocate General, Rakesh Gupta, Chattered Accountant, Vagish Chander Sharma, Ex Executive President, J&K Bank Ltd as members, besides two nominees from RBI and NABARD as special invitee and General Manager of the bank as member secretary.
Official sources further said that while government is working hard to revive bank’s condition, its management is being looked after by a non-eligible person---its General Manager.
They said that the bank’s affairs are presently looked after by him single-headedly which in turn gave shape to nepotism and rampant transfers.
Present General Manager, sources said, took up bank’s affairs after the expiry of the tenure of the board on May 2,2017.
To look after the affairs of the bank, the government on 10.5.17 appointed board of administrators with then Additional Commissioner Jammu Anuradha Sharma as its Chairman.
Official sources said that hatred communiqué became routine affairs between Anuradha Sharma and General Manger as latter refused to take action on her directions.
Later, on November 18, 2017, the state High Court restrained Anuradha Sharma, a KAS officer, from acting as Chairperson of JCCB on the grounds that she had violated the Government order dated 04.02.2008 with impunity while taking policy decision which is outside her competency with the liberty to her to file any motion for alteration/modification cancellation of the instant order.