Srinagar: In a surprise move, the Jammu and Kashmir government removed J&K Bank chairman Parvez Ahmad, and Anti-Corruption Bureau carried out a raid at the lender’s corporate office in connection with alleged fraudulent appointments.

The government appointed the bank’s executive president R K Chibber, as an interim chairman of the lender, and defended the decision to sack Ahmad, saying it was part of long term measures for improving functioning of the bank in accordance with the RBI guidelines.

An official spokesman said keeping in view the concerns expressed in various quarters regarding the governance and functioning of the Jammu and Kashmir Bank, the government has decided to take long term measures to improve the functioning of the bank, so that it becomes a shining example of a well managed government-owned bank.

“As a first step, the Government has decided to change its nominee Director on the Board of JK Bank, Parvez Ahmed, who is also the chairman and managing director. Consequent to his replacement as a government appointed Director, the Board has taken on record cessation of Directorship of Parvez Ahmed as chairman and MD,” the spokesman said.

He said the government, which owns majority stake in the bank, has appointed Chibber as the government nominee on the Board and the Board subsequently approved his appointment as an interim chairman and managing director of the bank.

“The government has also decided to constitute a search committee to identify a suitable panel of names for being appointed to the board of directors of JK Bank and subsequently for consideration as Managing Director of the Bank,” the spokesman said.

He said the JK Bank has also been directed repeatedly by the RBI to separate the positions of chairman and managing director for better governance.

“The government will be taking steps through the board of the bank for making necessary changes in its article of association/by-laws with regard to posting of a separate chairman and a managing director with adequate safeguards in the functioning of the board to ensure high levels of financial probity, financial control, better risk management and oversight. The board of directors in a meeting today (Saturday) has made necessary recommendation in this regard,” he said.