Jammu & Kashmir Bank on Monday said that it has received RBI's approval for the appointment of R K Chhibber as its interim CMD for three months.
Chhibber, Executive President of J&K Bank, was appointed following removal of Parvez Ahmed as CMD of the bank by the Jammu & Kashmir administration.
Ahmed was allegedly involved in corruption, nepotism and favouritism.
"We wish to intimate that the bank has received approval from the Reserve Bank of India for the appointment of R K Chhibber as interim Chairman & Managing Director of the bank for a period of three months with effect from June 10, 2019," J&K Bank said in a regulatory filing.
Ahmed's removal is part of an action taken by the Anti-Corruption Bureau, which was established a few months ago in the state.
On Saturday, the bank said subject to the approval of the RBI, the board has appointed Chhibber as the interim CMD with effect from June 8, 2019.
"Consequent to this Parvez Ahmed ceases to be Director and Chairman/CEO of the bank from June 8 2019," the bank said last week.
Chhibber, along with the management team of the bank, is holding a conference call with investors of the bank on Monday about the steps to be taken for improving the profitability of the bank.
Ahmed was appointed as Chairman and CEO of J&K Bank in October 2016 and his tenure was to end in a few months.
Jammu & Kashmir government holds 59 per cent stake in J&K Bank.
The bank reported 129 per cent growth in net profit for 2018-19 fiscal at Rs 465 crore as against Rs 202 crore in the previous fiscal.
Last fiscal, the lender had a total business of Rs 1.62 lakh crore, comprising deposits of Rs 89,638 crore and gross advances of Rs 72,226 crore. The business was up 14 per cent from Rs 1.42 lakh crore a year ago.
Gross and net non-performing assets (NPAs) of the bank fell to 8.97 per cent and 4.89 per cent respectively at March-end 2019, compared to 9.96 per cent and 4.90 per cent a year ago.
Stocks of the bank was trading down nearly 15 per cent at Rs 50.55 on the BSE.