The Federal Bank as well as the AU Small Finance Bank informed the stock exchange in separate filings here on Thursday, that the Reserve Bank of India (RBI) has cleared the acquisition of 9.99% stakes each in both banks by Kotak Mahindra Bank Ltd.
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.
Earlier reports had said the ACB raids were specifically being carried out in connection in 1,200 appointments made by the bank in 2017.
Immediately after the registration of FIR, searches of premises of Corporate Office J&K Bank Head Quarters and during search operations documents pertaining to the appointments were seized.
Informed sources told IANS that the scope of the ACB investigation has been extended to the loans and non-performing assets (NPA) portfolios of the bank.
A spokesman of the state government said on Saturday evening that the J&K Bank has also been directed repeatedly by the Reserve Bank of India (RBI) to separate the positions of Chairman and Managing Director for better governance.
Minutes after the removal of Ahmad, the state vigilance organisation sleuths raided the corporate headquarters of the bank in Srinagar and were reportedly searching for records of nearly 1,200 appointments made allegedly at the behest of political masters of the previous PDP-BJP government in the state and during Ahmad's tenure.
