JK Bank issues preferential Shares to State Govt
Jammu, Mar 20: Pursuant to the receipt of approval of the Reserve Bank of India for Capital Infusion in the Bank, state government today infused its first tranche of Rs 250 crores into JK Bank as additional capital from its Budgetary Allocation of Rs 530Cr for the purpose. The Board Of the Bank which met here today confirmed the news and informed that Preferential Allotment of shares equivalent to the capital infused has been made in favor of the Government of J&K today in its meeting specially convened for the purpose.
The Board of the Bank through its Chairman, Mr Parvez Ahmed acknowledged the timely capital infusion which shall enable the Bank to maintain the statutory Capital Adequacy Ratio mandated by the RBI for 31st March 2017. The Chairman & CEO Mr Parvez told our correspondent that with the far sighted move of the state government, the Bank shall not only be able to successfully complete the Consolidation and cleanup of the Balance Sheet but will also be able to focus on its future business growth plans.
Notably the Investor Community has reposed a strong faith in the Banks Business Strategy during the current turbulent times which was well augmented by the Budget announcement of Rs530 cr allocation from Govt of J&K for equity capital infusion into the Bank to maintain its majority shareholder character.