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Jammu & Kashmir (J&K) Bank today said the Reserve Bank of India (RBI) has approved the extension of Mushtaq Ahmad's tenure as chairman and chief executive officer of the bank for a period of three years. The extended term will be effective from October 6, 2013.
Earlier this month J&K chief minister Omar Abdullah had requested the banking regulator to allow Ahmad to remain as the chairman and chief executive of the bank for a second term. Abdullah had said the extension of tenure will remove uncertainty over the bank's leadership and ensure its smooth functioning.
"As per the communication dated September 17, 2013 from RBI, he (Ahmad) will continue to head the institution for next three years," J&K Bank said in a statement today.
Ahmad joined the bank, where the state government owns 53.17% stake, as a probationary officer in 1972. He was appointed as the chairman and chief executive of J&K Bank for a period of three years in October, 2010.
Under Ahmad's leadership J&K Bank had begun its much delayed expansion plan, improved its earnings and asset quality. In 2012-13, the bank registered its highest ever net profit of Rs 1,055 crore and allowed the board to recommend a record dividend of 500% for the year. The return on average net worth improved to 23.56% while earnings per share increased to Rs 217.64 at the end of last financial year.
