PDP asks government to explain JK Bank bungling

If not clarified, will ask for special RBI audit: Naeem Akhtar

5 Dariya News (Muzaffar Bhat, Rouf Pampori)

Srinagar 30-May-2014

Expressing deep concern at the murky details of non performing assets (NPA) revealed in the Greater Kashmir today, Peoples Democratic Party (PDP) has asked the government to come clean on these reports. In a statement the party chief spokesman, Naeem Akhtar said the reports of creating NPAs to the tune of Rs 2500 crores are highly disturbing but of greater concern are the attempts to conceal them in order to show higher profits.According to a statement issued, Akhtar said the state finance minister must come out with government's response on the report since the bank management seems involved in these malpractices that could threaten the very health of the Bank as is apparent from the crash of its share prices today. He said the finance secretary of the state who is on the Bank's board of directors should also come out on the goings on in the bank as the political leadership of this government has lost all credibility. "Should that not happen and a convincing explanation does not come from the government the PDP would be forced to write to the Reserve Bank of India for instituting a special audit to reach the truth" said Akhtar.

The PDP spokesman said it was extremely worrying that state's most important and premier financial institution had been compromised by appointing wrong persons on the board of directors and the bank management. It appears even the auditors come under cloud as reported by the newspaper.Akhtar said the press release of the Bank issued in response to the GK story does not deny the figures quoted in it. Far from giving any comfort the bank response raises more questions than it has tried to answer.Akhtar said the shady deals in the bank are provided a cover by appointing blue eyed persons with dubious record who apparently are beneficiaries of the malpractices. He said it was ironical that a government that served a severe blow to state's financial autonomy by shifting to RBI for overdrafts had claimed that the move would improve transparency in the bank. That spurious argument has been turned on its head as exposed in the GK report and now it is clear that the changeover was only another installment of the price that NC has historically been paying at the cost of state's resources and institutions, Akhtar added.

Akhtar said while within the state the bank loans are very stingily sanctioned big loans outside the state are obviously given to those who don't even deserve them. He said while Millions of youth in the state are struggling to set up small businesses and denied loans but the bank with resource base in the state has apparently been made a handmaiden of vested interests outside the state which could benefit a few in position of power at the cost of a national asset of the state.