JK Bank Downgrade: Mehbooba Talks To Jaitley


Former Chief Minister Mehbooba Mufti on Wednesday said that she had spoken to Finance minister Arun Jaitley about the intrusive and regressive move to declare Jammu and Kashmir Bank as a PSU.

Taking to social networking site Twitter, Mehbooba wrote: “Spoke with @arunjaitley ji about the intrusive and regressive move to declare J&K Bank as a PSU. This decision will add to the woes of the state and alienate them further. The FinMin assured that the government will re-examine the matter.”

State Administrative Council (SAC) led by governor Satya Pal Malik and his three advisors on November 22, brought JK Bank under the purview of RTI, CVC Guidelines, and the state legislature. It also approved the proposal for treating the state’s first listed company as a Public Sector Undertaking (PSU).

“The SAC approved that the provisions of the Jammu and Kashmir Right to Information Act, 2009 shall be applicable to the J&K Bank Ltd like other PSUs besides the Bank shall follow CVC guidelines,” an official spokesman said. “The J&K Bank Ltd shall be accountable to the State Legislature like other State PSUs.  The Annual Report of the J&K Bank Ltd shall be placed before the State Legislature through the State Finance Department.”

The government spokesman said since the state government currently holds 59.3% shareholding and is a major stakeholder, “a need was felt that it should have a character of a PSU which is subject to the general supervision and access for enhanced transparency in the transaction of its business to promote public trust.” It added: “The purpose of the SAC decision 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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