Jammu & Kashmir (J&K) Chief Minister Omar Abdullah on Monday requested the Reserve Bank of India (RBI) to extend the term of J&K Bank Chairman and chief executive Mushtaq Ahmad. He said this would remove uncertainty over the bank’s leadership and ensure it functioned smoothly.
The K&K government owns 53.17 per cent stake in the bank.
Ahmad joined the bank as a probationary officer in 1972. In October 2010, he was appointed chairman and chief executive for a period of three years.
About three months ago, the bank’s board had recommended a three-year extension of Ahmad’s tenure. However, the central bank is yet to approve it.
Under Ahmad’s leadership, J&K Bank began its expansion plan and improved its earnings and asset quality. In 2012-13, the bank registered its highest net profit of Rs 1,055 crore; the board recommended a record dividend of 500 per cent for the year. Return on average net worth improved to 23.56 per cent, while earnings a share rose to Rs 217.64 at the end of the last financial year.
“The bank’s vision and endeavour to accelerate socio-economic development of Jammu & Kashmir through exhaustive credit dispensation and selective pan-India quality lending continued to drive its progress. The result is we have not only achieved, but even surpassed our Rs 1,00,000-crore business target and Rs 1,000-crore profit in the platinum jubilee year,” Ahmad wrote in the bank’s annual report for 2012-13.
“Esteemed shareholders, your bank has travelled a long and eventful journey to carve out its distinctive identity in India’s banking industry. I am fortunate to be part of this journey and have personally witnessed the bank’s transformation from an unknown entity to an institution of repute,” he added.
The stock market also appears to have recognised the bank’s achievements. Since Ahmad took charge as the bank’s chairman and chief executive three years ago, J&K Bank shares have gained about 37 per cent.
