JAMMU: The State Administrative Council (SAC) which met here today under the chairmanship of Governor, Satya Pal Malik in a significant decision approved the proposal for treating the Jammu and Kashmir Bank Limited as a Public Sector Undertaking (PSU).
The SAC approved that the provisions of the Jammu and Kashmir Right to Information Act, 2009 shall be applicable to the J&K Bank Ltd like other PSUs besides the Bank shall follow CVC guidelines.
The J&K Bank Ltd shall be accountable to the State Legislature like other State PSUs. The Annual Report of the J&K Bank Ltd shall be placed before the State Legislature through the State Finance Department.
The Finance Department will issue appropriate directions in respect of these to the J&K Bank Ltd for observance.
The J&K Bank Ltd established in 1938 is the only State Government promoted bank in the country, with State Government currently having 59.3% shareholding.
As the State is a major shareholder in the J&K Bank Ltd, a need was felt that it should have a character of a PSU which is subject to general supervision and access for enhanced transparency in the transaction of its business to promote public trust.
The purpose of the SAC decision is not to question the day to day activities of the Bank management but a step towards strengthening better corporate governance.