Don’t turn J&K Bank into PSU, will protest: Traders body to Malikhttps://indianexpress.com/article/business/banking-and-finance/dont-turn-jk-bank-into-psu-will-protest-traders-body-to-malik-5464133/

Don’t turn J&K Bank into PSU, will protest: Traders body to Malik

On November 22, the State Administrative Council(SAC) approved turning J&K Bank to a PSU. Two former Chief Ministers, Omar Abdullah and Mehbooba Mufti, had described the move as a “disturbing” development while a former chairman of the bank called it “unfortunate”.

On November 22, the State Administrative Council(SAC) approved turning J&K Bank to a PSU.

The Kashmir Economic Alliance (KEA), a conglomerate of trade unions has asked the J-K Governer Satya Pal Malik to withdraw its decision on turning J&K Bank into Public Sector Undertaking (PSU). The KEA has threatened a statewide agitation, if the decision is not rolled back immediately.

On November 22, the State Administrative Council(SAC) approved turning J&K Bank to a PSU. Two former Chief Ministers, Omar Abdullah and Mehbooba Mufti, had described the move as a “disturbing” development while a former chairman of the bank called it “unfortunate”. On Sunday, KEA said that some of existing PSU’s in valley, “are on the verge of extinction”.

“All the PSU’s which have been created in last three four decades have proven to be utter disasters so far as development and employment generation is concerned, not to speak of revenue generation,” KEA Chairman Mohammad Yaseen Khan said on Sunday. He said on the contrary J&K Bank was created during the Mahraja’s rule with the main objective of the development of state of Jammu & Kashmir. “Ever since J&K Bank has remained an autonomous financial institution as a result of which it has the distinction of being largest / profitable institution of the state.

“Also it is the second largest employer of the state after the Government of J&K itself,” he said.  Khan said decisions like this one need to be taken by the popular governments who are accountable before the public. “We are now left with no choice to save our state…and hitting the roads against such disastrous and adverse decisions of the SAC. Unless the order is not rolled back immediately we will be forced to call for a state wide agitation,” he said.

The Jammu and Kashmir Governor administration on Saturday had clarified that the bank’s functional autonomy with the Board of Directors “as supreme decision-making body” remains unquestioned and that the bank will continue to be regulated by RBI.

Download the Indian Express apps for iPhone, iPad or Android