SRINAGAR: Apni Party president Syed Mohammad Altaf Bukhari on Monday accused the government of allowing J&K Bank to drift away from the interests of Jammu and Kashmir, raising concerns over its lending pattern, recruitment policy, representation on its board and reports about shifting its headquarters from Srinagar.
Addressing a press conference at the Apni Party headquarters in Srinagar, Bukhari said J&K Bank had historically played an important role in the economic development of Jammu and Kashmir but was now showing a “worrying trend” in its functioning.
“J&K Bank is a jewel in the crown of Jammu and Kashmir,” Bukhari said, adding that the bank had “played an important role in shaping the economy of Jammu and Kashmir” over the decades.
Bukhari, who has served as Jammu and Kashmir’s Finance Minister, said the bank’s credit growth within the Union Territory stood at 9 per cent compared to 30 per cent outside J&K.
“This clearly indicates that J&K Bank has significantly reduced its lending within J&K while expanding its lending base outside the Union Territory,” he said.
Questioning the rationale behind the trend, Bukhari claimed that the bank’s non-performing asset rate was “several times higher” outside J&K.
“Therefore, it is difficult to understand how reducing lending in J&K while expanding it outside the Union Territory can be considered a sound decision,” he said.
Bukhari also expressed concern over a reported proposal to recruit candidates from outside Jammu and Kashmir, saying the bank had traditionally provided employment opportunities to local youth.
“J&K Bank has traditionally recruited local youth who share an emotional bond with the institution,” he said, adding that recruiting from outside J&K could further reduce employment opportunities for local candidates.
“Where will our youth go if this happens?” he asked.
He also questioned what he described as inadequate representation of Jammu and Kashmir on the bank’s Board of Directors.
“How is it that there is only one representative from J&K on the Bank’s Board of Directors, which comprises around 16 members?” Bukhari asked.
Bukhari further claimed that he had received reports of attempts to shift J&K Bank’s headquarters from Srinagar.
“I have reports that attempts are being made to shift the headquarters of J&K Bank from Srinagar,” he said.
He cautioned against any move that, according to him, could hurt public sentiment in Jammu and Kashmir.
“There is always a limit to how far the emotions of the people can be pushed. Going beyond that limit can have serious repercussions,” he said.
Bukhari urged the elected government to intervene and ensure that the interests of Jammu and Kashmir are protected in the functioning of the bank.
He said the Chief Minister, who also holds the Finance portfolio, had a responsibility to safeguard J&K’s interests in the institution.
“J&K holds a 52.6 per cent stake in the institution. Protecting J&K’s interests in J&K Bank is, therefore, entirely the responsibility of the elected government,” he said.
