In the opening trade, shares of Jammu & Kashmir Bank tumbled as much as 20% to Rs 47.60 per share on the BSE after the Jammu & Kashmir government sacked the bank's chairman and managing director (CMD) Parvez Ahmed on alleged corruption charges. The Jammu and Kashmir government holds 59% stake in the bank. Meanwhile the bank's executive president, RK Chhibber has been appointed as its interim chairman.
The Anti-Corruption Bureau (ACB) has filed a case against the J&K Bank under the Prevention of Corruption Act for allegedly engaging in illegal and fraudulent appointments at the bank. The bureau also conducted raid at the bank's headquarters based out of Srinagar and the office of the past chairman.
On the development, Parvez Ahmed tweeted, "Absolutely no regrets. Did my job most diligently, honestly and in the best interest of the institution. Open to scrutiny on each and every transaction I have done during my two decades of functioning in the bank."
Further on Saturday, the statement by the State government said that the leadership change at the bank is aimed at improving its functioning and governance. Also, it announced the constitution of a search committee for identifying a panel that could be appointed to the board of directors and subsequently be considered for the post of bank's CMD.
At 10:45 am, the stock of Jammu & Kashmir Bank was trading lower by 13.71% at Rs. 51.30 on the BSE.