J&K Bank Staff to Intensify Protest Seeking Revocation of PSU Tag

The Jammu & Kashmir Governor’s recent decision to treat J&K Bank Limited as a public sector undertaking (PSU) has fuelled a controversy over the bank’s autonomy. While several common citizens have welcomed Governor Satya Pal Malik’s decision, the two key political parties – People’s Democratic Party and National Confernce -- and government employees are unhappy with the decision.

In the past week, J&K Bank employees as well as PDP and NC have staged protests across the state, opposing the move. Under the banner of All India J&K Bank Officers Federation, the employees held placards reading, “Roll back SAC decision” and “J&K Bank is a wonderful institution, let it remain wonderful.”

The employees said they had resolved to continue the protest until the decision was revoked. A detailed memorandum has also been submitted to the Governor, urging him to roll back his decision of converting bank into a PSU.

Jammu city also witnessed protests staged by employees under the banner of All India J&K Bank Employees Federation (AIJKBEF). “The bank employees will also be holding a mass demonstration outside the corporate headquarters at MA Road on Sunday in which J&K Bank employees from several branches across the valley will take part,” Tassaduq Mufti, president of AIJKBOF, was quoted by Greater Kashmir.

Former state Finance Minister and ex-chairman of J&K Bank, Haseeb Drabu, had recently termed the Governor’s decision as “regressive”, adding that it would have a  negative impact on the bank and its functioning. He toldGreater Kashmir, “There is no way the state will be benefit from it. …The institutional autonomy of decision making will be impaired and all commercial decisions can be questioned for one reason or other. It will also open up the bank to too many masters. Already it is supervised by the RBI, annually inspected by them, then the CAG audits it, it has its own internal auditors. Now, it will have the legislature and all the bodies of government interfering in its decision making.”

However, as reported by Newsclick recently, the bank is plagued with bad loans (gross non-performing assets) worth Rs 175.38 crore, amounting to 11% of all the gross advances, which has been worryingly high.

Some residents, however, have welcomed the decision, citing corruption and nepotism. Sameer Lone, a resident, told Newsclick, “Only big fishes are against this move, as they have looted this bank for years and consider this as their personal property. Political parties are protesting against the Governor’s decision because they have accommodated their relatives and party workers in this bank. Making it answerable to people is not a crime.”

Recently, the Governor had accused the PDP-BJP government of appointing their favourites in the bank. However, both PDP and NC have been accused of nepotism and favouritism. “For last 30 years, J&K bank has been a hell hole of corruption, favouritism and nepotism. Now some forces, including PDP, NC and many leading local meida houses in Kashmir want a roll back so that the muck is not exposed,” senior journalist Majid Hyderi told Newsclick.