J&K Bank was ‘victim of nepotism’ but govt reforms turned it profitable, says Modi

At the ‘Viksit Bharat, Viksit Jammu Kashmir’ programme in Srinagar, Modi said his government had carried out several reforms in J&K Bank over the past five years. The government, he said, provided the bank Rs 1,000 crore as assistance and acted against the “wrongful recruitments” in the bank under the previous governments.

“The previous governments here had left no stone unturned to destroy this bank, filling the bank with relatives and nephews. These family members had broken the back of the bank,” he said.

He said the bank’s mismanagement risked “thousands of crores” of rupees of depositors. “To save J&K Bank, our government carried out reforms, one after another… Even today, the Anti-Corruption Bureau (ACB) is investigating thousands of such (wrongful) recruitments.”

The J&K Bank has been under the scanner for the past five years. In 2019, soon after the removal of bank chairman Pervez Ahmad Nengroo for alleged illegal appointments of 1,200 personnel at the bank during his tenure, the ACB of the state administration raided the bank’s offices, looking for more evidence of such misconduct.

“Today, J&K Bank has become strong again due to continuous efforts of the government,” Modi said. “…this bank, which was a failing bank… today, its profit is reaching Rs 1,700 crore,” he added.

The J&K Bank, according to the financial statements, has earned a total net profit of Rs 1,128.6 crore in the first three quarters of this financial year from April to December. In the previous financial year, it earned a net profit of Rs 1,197.38 crore.

“Five years ago, the bank’s business had shrunk to Rs 1.25 lakh crore, only Rs 1.25 lakh crore… Now, the business has crossed Rs 2.25 lakh crore,” said Modi.

“Five years ago, the deposits in the bank had also dropped by Rs 80,000 crore… Now, deposits in the bank have also crossed Rs 1.25 lakh crore,” he added.

The Prime Minister also said that five years ago, the ratio of non-performing assets of J&K Bank had crossed 11 percent, which has since fallen to below 5 percent. Due to this improved performance, he said, the bank’s share price has increased from just Rs 12 per share to nearly Rs 140 per share in five years.

“When there is an honest government, and the intention is the welfare of the people, the people can be rescued from every difficulty,” Modi said.