In its latest report titled 'Management of fixed assets by J&K Bank Limited', the auditor and Comptroller General of India (CAG) has come down heavily on the bank for 'wasteful expenditure', which includes over Rs 7 crore for a premises that was never used.
The Jammu and Kashmir Bank on Friday posted a 119 per cent growth in its net profit to Rs 243.49 crore for the quarter ended September 30 against Rs 111.09 crore in the year-ago period.
The Lt Governor asked the CMD of the bank to release the overdraft to the Jan Dhan account holders as per the financial package announced by the Centre and to implement the RBI guidelines regarding three-month long moratorium on payment of installments on term loans.
"He shall hold office during the pleasure of Reserve Bank of India, and subject thereto, for a period of two years up to July 2, 2021 or till further orders, whichever is earlier", reads the order.
The Bank, after a meeting of its board of directors on Saturday evening announced; “J&K Bank implements RTI and CVC guidelines for better governance and strong accountability framework”.
A huge amount of Rs 50 crore out of CSR was given to a Srinagar based golf course that has many influential members.
In a statement, Tarigami said that the probe against corruption, nepotism and favouritism in the Bank by the government is a better late than never step and "we" had been maintaining from last several years that fraudulent recruitment exercises were going on in the Bank and huge loans were sanctioned to the kith and kin of influential persons in violation of laid down norms.
At NSE, shares plunged 19.94 per cent to hit a lower circuit of Rs 47.55.
Ahmad's removal is part of action taken by Anti-Corruption Bureau, which was established a few months ago in the state.
Earlier reports had said the ACB raids were specifically being carried out in connection in 1,200 appointments made by the bank in 2017.
