Srinagar, Aug 31 (UNI) Apni Party president and former Jammu and Kashmir finance minister Altaf Bukhari on Monday expressed concern over what he termed a shift in the focus of the Jammu and Kashmir Bank management, claiming that the bank’s credit growth was only 9pc in Kashmir compared to 30pc outside J&K.
Bukhari said the Jammu and Kashmir Bank was “a jewel in the crown” and had an important role in the economic development of the region.
“As a former finance minister, I am saddened to see that the credit growth of Jammu and Kashmir Bank is 9 percent in Kashmir and 30 percent in the rest of the country. This means that somewhere the bank has pulled its hand back,” he said while addressing a press conference in Srinagar.
He said the figures show that lending activity in the union Territory was being curtailed while credit growth elsewhere was increasing.
Bukhari said the issue was a matter of concern for the people of Jammu and Kashmir, particularly when the Bank was the majority-owned financial institution of the J&K government.
He claimed that non-performing assets (NPAs) in lending outside Jammu and Kashmir were significantly higher than those within the region, questioning why lending in J&K was being reduced while credit expansion was taking place elsewhere.
“Why does lending in Kashmir have to be reduced and lending outside increased? This is a matter of concern for us,” he said.
Bukhari also raised concerns over the reported proposal to change the recruitment pattern of the bank, saying local youth should not be deprived of employment opportunities in an institution that is majority-owned by the J&K government.
He said the bank had historically provided employment to people from Jammu and Kashmir and argued that local employees had an emotional connection with the institution.
“Our children are educated. If they have to give up this job as well, then where will they go?” he asked.
The Apni Party chief also questioned the composition of the bank’s board of directors, alleging inadequate representation from Kashmir.
“If there is a board of 13, 14, 15 or 16 people, why not five people are able to come from Jammu and Kashmir? According to my knowledge, there is only one representation from Kashmir,” he said, demanding that the government clarify the matter.
Bukhari further expressed concern over reports that the headquarters of Jammu and Kashmir Bank could be shifted from Srinagar, calling on the government and all those involved to stop this.
“Maybe they (government) are not aware of the ground reality. They do not understand that emotions can be played to a limit. I request the state government of Jammu and Kashmir and whoever is involved in this, to stop this,” he said.
Bukhari said the J&K government, which holds a 52.6 percent stake in the bank, was ultimately responsible for decisions concerning the institution.
“I think the government is 100 percent responsible for this because we are 52.6 percent shareholders, and that is the majority,” he said.
The former Finance Minister also rejected attempts to make him defend previous governments over controversies involving the bank, saying he was focused on what was happening currently.
Bukhari claimed that the bank’s recent balance sheets and treatment of certain accounts also warranted scrutiny, but said he did not want to discuss the matter in detail at present as he did not want the bank’s share price to fall.
On the impact of reduced lending on the J&K economy, Bukhari said it was significant, arguing that if even Jammu and Kashmir Bank considered lending in the region unsafe, it would have serious implications.
“It is totally impacting. If J&K Bank feels that it is not safe lending here, then may God protect us,” he said.
