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Only those with interest in J&K Bank opposing move to make it PSU: Governor

Only people with “personal or political interests” in J&K Bank are opposing the move to turn the bank into a Public Sector Undertaking (PSU) and the opposition is “without merit”, Jammu and Kashmir Governor Satya Pal Malik has stated.

Written by Naveed Iqbal | Srinagar |
November 29, 2018 5:26:11 am
Only those with interest in J&K Bank opposing move to make it PSU: Governor J&K Governor Satyapal Malik. (Express file photo)

Only people with “personal or political interests” in J&K Bank are opposing the move to turn the bank into a Public Sector Undertaking (PSU) and the opposition is “without merit”, Jammu and Kashmir Governor Satya Pal Malik has stated. “Those who have benefited the most from the bank are opposing this move,” he said.

Speaking to The Indian Express, Malik said that J&K Bank is an important institution of the state and “we do not wish cripple it or keep it under pressure.” He added that “with the bank’s history of bad loans, the move will benefit the bank — usse koi nuksaan nahin hoga, faida hi hoga (it will do no harm but will only benefit).”

On November 22, the Governor-led State Administrative Council (SAC) had approved the proposal for treating Jammu and Kashmir Bank Limited as a Public Sector Undertaking (PSU). The SEC also comprises the four state advisers and the J&K Chief Secretary

Read: Simply Put: When a bank becomes a PSU

The move was criticised by all regional parties of the state, most recently by People’s Conference chief Sajad Lone. On Tuesday, Lone had tweeted, “I register my unambiguous rejection of changes being made in the J and K bank. And it needs to [be] bereft of Govt control not drowned in Govt control. This is literally the sole lending institution and lending decisions should be commercial decisions outside the ambit of politics.”

Governor Malik said the bank’s position, until now, as a private or public institution was decided “as per convenience, and by bringing it under the ambit of RTI and CVC will help bring greater transparency to its functioning”. The bank, until now, was classified as an “old private sector bank” and supervised by the RBI, while also being subject to oversight by the Comptroller and Auditor General (CAG). Former Chief Minister Mehbooba Mufti had called the move a “disturbing step to snatch every bit of autonomy that our institutions have”.

The NC has demanded a rollback of the SAC decision. The state of J&K holds a majority 59.3-per cent stake in the bank. While approving the proposal, the government had stated that the purpose is not to question the day-to-day activities of the bank management but a step towards strengthening better corporate governance. Naveed Iqbal
Srinagar, November 28

Only people with “personal or political interests” in J&K Bank are opposing the move to turn the bank into a Public Sector Undertaking (PSU) and the opposition is “without merit”, Jammu and Kashmir Governor Satya Pal Malik has stated. “Those who have benefited the most from the bank are opposing this move,” he said.

Speaking to The Indian Express, Malik said that J&K Bank is an important institution of the state and “we do not wish cripple it or keep it under pressure.” He added that “with the bank’s history of bad loans, the move will benefit the bank — usse koi nuksaan nahin hoga, faida hi hoga (it will do no harm but will only benefit).”

On November 22, the Governor-led State Administrative Council (SAC) had approved the proposal for treating Jammu and Kashmir Bank Limited as a Public Sector Undertaking (PSU). The SEC also comprises the four state advisers and the J&K Chief Secretary

The move was criticised by all regional parties of the state, most recently by People’s Conference chief Sajad Lone. On Tuesday, Lone had tweeted, “I register my unambiguous rejection of changes being made in the J and K bank. And it needs to [be] bereft of Govt control not drowned in Govt control. This is literally the sole lending institution and lending decisions should be commercial decisions outside the ambit of politics.”

Governor Malik said the bank’s position, until now, as a private or public institution was decided “as per convenience, and by bringing it under the ambit of RTI and CVC will help bring greater transparency to its functioning”.
The bank, until now, was classified as an “old private sector bank” and supervised by the RBI, while also being subject to oversight by the Comptroller and Auditor General (CAG). Former Chief Minister Mehbooba Mufti had called the move a “disturbing step to snatch every bit of autonomy that our institutions have”.

The NC has demanded a rollback of the SAC decision. The state of J&K holds a majority 59.3-per cent stake in the bank. While approving the proposal, the government had stated that the purpose is not to question the day-to-day activities of the bank management but a step towards strengthening better corporate governance.

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