Apni Party president Syed Mohammad Altaf Bukhari on Monday accused the government of allowing Jammu and Kashmir Bank to “move away from the interests” of the Union Territory. He raised concerns over its lending pattern, recruitment policy, representation on its board and reports of a possible shift of its headquarters from Srinagar.
Addressing a press conference at the party headquarters in Srinagar, Bukhari said the bank, in which the Jammu and Kashmir government holds a majority stake, had historically played a key role in the region’s economic development.
“J&K Bank is a jewel in the crown of Jammu and Kashmir,” said Bukhari, a former finance minister, adding that the institution had helped shape the region’s economy over several decades.
Bukhari questioned the bank’s lending strategy, saying credit growth within Jammu and Kashmir was about 9% compared with 30% outside the Union Territory.
“This clearly indicates that J&K Bank has significantly reduced its lending within J&K while expanding its lending base outside the Union Territory,” he said.
He also claimed that the bank’s non-performing assets were higher outside Jammu and Kashmir and questioned the rationale for expanding lending elsewhere while credit growth within the Union Territory remained lower.
Bukhari expressed concern over what he described as reports of plans to recruit candidates from outside Jammu and Kashmir, saying the bank had traditionally provided employment opportunities to local youth.
“J&K Bank has traditionally recruited local youth who share an emotional bond with the institution,” he said.
He also questioned the representation of Jammu and Kashmir on the bank’s Board of Directors, claiming that only one member from the Union Territory was among approximately 16 directors.
Bukhari further said he had received reports that attempts were being made to shift the bank’s headquarters from Srinagar, though he did not provide details or evidence of such a proposal.
“I have reports that attempts are being made to shift the headquarters of J&K Bank from Srinagar,” he said.
He urged the elected government to intervene and protect Jammu and Kashmir’s interests in the functioning of the bank.
Bukhari said the government of Jammu and Kashmir held a 52.6% stake in the institution and that the Chief Minister, who also holds the finance portfolio, had a responsibility to safeguard its interests.
“Protecting J&K’s interests in J&K Bank is, therefore, entirely the responsibility of the elected government,” he said.
