A delegation of J&K Bank employees on Tuesday met Governor Satya Pal Malik, wherein they were reassured that their bank was a premier institution of the state and its financial health and future growth was of utmost importance.

He said the government would support all initiatives and take necessary steps to make J&K Bank a vibrant institution.

“The employees should not be concerned about employment, future prospects or salary structure under any circumstances. The board of the bank is competent to take decisions in this regard and the powers are vested with it. No changes are being contemplated on this front,” the Governor assured

“As far as the public sector undertaking (PSU) matter is concerned, J&K Bank is regulated (I) by the RBI as an old generation private sector bank (ii) by the Registrar of Companies as it is a government company under the Companies Act and (iii) SEBI as it is a listed company. It will continue to be regulated by the RBI, SEBI and the Registrar of Companies. No changes are being made here or contemplated,” he clarified.

“J&K Bank is registered as a government company under the Companies Act. The word PSU has no legal connotation. The bank continues to be a government-owned company. No new changes are being made here,” Malik said, adding, “As a government company, J&K Bank is a public authority under the Right to Information Act (RTI) and hence it is automatically subject to the transparency provisions of the RTI. Nothing new is being imposed in this regard. Transparency is good for the bank in the long term”.

According to an official handout issued, the Governor further assured: “As far as the accountability to the legislature is concerned, all government owned/controlled companies, including J&K Bank, are accountable to the legislature in some respect. This is what has been stated in the SAC decision. This does not add any new element. However, in view of the concerns expressed and to give comfort to employees, the government will re-examine the issue of accountability to legislature.”

“Finally, the board of the bank is the appropriate forum for taking and implementing all decisions. Safeguarding the autonomy and operational independence of the bank is the key objective of the government at all times,” the handout read.

Courtesy:  The Tribune, Dec,05,2018