The Reserve Bank of India (RBI) has approved six months extension to R K Chhibber as the interim Chairman and Managing Director of the Jammu and Kashmir Bank.
The extension is effective from October 10 October to April 9 next year. Before this, Chhibber’s term as the interim Chairman and Managing Director was on one-month extension from September 10.
Chibber took over the bank’s reins for three months in June following the removal of Parvez Ahmed from the post by the state government.
Reports say the state government, which is major shareholder in the bank with 59 per cent equity stake, is likely to infuse more capital to restore the confidence of stakeholders and improve its growth performance.
The lender has also embarked on an exercise to induct highly competent professionals on the board and is considering a proposal for separation of the posts of Chairman and Managing Director.
In June, the Anti Corruption Bureau (ACB) in Jammu and Kashmir unearthed several blatant wrongdoings at J&K Bank during Ahmed’s tenure after his ignominious removal following charges of corruption and nepotism.
Besides, the Income Tax Department conducted search and seizure operations in Srinagar, Bengaluru, Gurugram and New Delhi to investigate the charges and collect evidence.
Ahmed was appointed as the Chairman and CEO of J&K Bank in October 2016 and his tenure was to end in a few months.