Altaf Bukhari Questions J&K Bank's Lending, Hiring, and Board Composition
Altaf Bukhari alleges J&K Bank is reducing lending in the region, changing recruitment policies, and has inadequate Kashmir representation on its board.
Apni Party president and former Jammu and Kashmir finance minister Altaf Bukhari on Monday raised serious concerns over the functioning of Jammu and Kashmir Bank, questioning its lending patterns, recruitment policy, and the composition of its board of directors.
Speaking at a press conference in Srinagar, Bukhari pointed to credit growth figures that he said showed the bank was pulling back from the region. He noted that credit growth in Jammu and Kashmir stood at 9 percent, compared to 30 percent in the rest of the country. This, he argued, indicated that the bank was reducing its lending footprint within the union territory while expanding it elsewhere.
Bukhari, who described the bank as a "jewel in the crown" for the region, said he felt saddened by the trend, given the bank's historic role in the development of Jammu and Kashmir and in the lives of its people.
The bank has said it will respond to the allegations on Tuesday.
Bukhari also questioned the business logic of the lending pattern, claiming that non-performing assets on loans made outside Jammu and Kashmir were four to five times higher than those on loans within the region. He asked why the bank would reduce lending locally while increasing it in areas with higher stress.
He further noted that the Jammu and Kashmir government holds a majority stake in the bank and called on Chief Minister Omar Abdullah, who also holds the finance portfolio, to address the issue.
On recruitment, Bukhari alleged that the bank's policy had been changed for hiring outside the region. He said the bank had traditionally recruited residents of Jammu and Kashmir even for posts based elsewhere, but that the current management was now considering hiring local residents for those positions. This, he said, would block another avenue of employment for the region's youth.
Bukhari also criticised the composition of the bank's board of directors, alleging that Kashmir had negligible representation. He claimed that a majority of the directors were from outside Jammu and Kashmir and questioned how this could be considered just, especially with an elected government in place for two years. He demanded an immediate clarification on both recruitment and board composition.
In addition, Bukhari alleged that efforts were being made to shift the bank's headquarters from Srinagar. He described this as a matter of serious concern, warning that such a move could hurt sentiments in the region. He appealed to the government and other stakeholders to intervene, cautioning that emotions could only be tested to a certain limit.