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JK Bank’s share prices jump after Guv says ‘no change in status’

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Srinagar: J&K Bank share price today witnessed an increase of over 5 percent amid reports that government mulls revocation of recent SAC decision to treat the bank as PSU.

Markets have responded positively to the news reports as the bank’s share closed on at Rs 38.90 (BSE) and Rs 38.70 (NSE) on Tuesday.

Governor Satya Pal Malik on Tuesday after meeting a delegation of the Jammu and Kashmir Bank, released a statement in which he said that the Bank is a registered Government Company under the Companies Act and the word PSU (Public Sector Undertaking) has no legal connotation.

“J&K Bank is registered as a Government Company under the Companies Act. The word PSU has no legal connotation. J&K Bank continues to be a Government Owned company. No new changes are being made here,” Governor Malik said in a statement.

The statement also added that government will re-examine the issue of accountability of the J&K Bank to the state legislature.

“…However, in view of the concerns expressed, and to give comfort to employees, the government will re-examine the issue of accountability to legislature,” said a statement, issued by Malik.

Hours after Governor Satya Pal Malik said that no changes are being made to status of J&K Bank, the regional political parties including National Conference (NC) and Peoples Democratic Party (PDP) welcomed the Governor’s statement.

However, the two parties echoed mixed response on the Governor’s statement regarding re-examining the issue of accountability to State legislature.

National Conference General Secretary, Ali Muhammad Sagar said the statement of Governor regarding no changes in the status of JK Bank is a good move.

He said that the NC wants that the autonomous character of JK Bank must not get affected at any cost, saying that the status of JK bank should not be tampered. “This is good on the part of Govt if they will not make it the part of the prestige,” he said

Welcoming the statement of Governor regarding no changes in the status of JK Bank, PDP chief spokesperson, Rafi Ahmad Mir said that the Governor must not tamper with the status of JK Bank.

Reacting over re-examining the issue of accountability to State legislature, Rafi Mir added that these decisions can be taken by the popular government in the State.

“Governor should not take such decisions but should leave such issues up to the popular government. Our point is that the decision taken recently in SAC should be wholly reversed,” he said.

 

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