RBI extends Chhibber’s term by 3 months as JK Bank CMD

Srinagar, July 07: The term of R K Chhibber, Chairman and Managing Director (CMD) of J&K Bank, has been extended by Reserve Bank of India by a further period of three months with effect from 10 July 2020 or till the appointment of MD & CEO of the Bank, whichever was earlier.
The Bank on Tuesday, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, intimated the stock exchanges (NSE & BSE) about the extension in the Chhibber’s term.
“We wish to intimate that the Reserve Bank of India has extended the term of R K Chhibber, Chairman and Managing Director of the bank, by a period of three months with effect from 10th July, 2020 or till the appointment of MD & CEO, whichever is earlier,” the bank said in a regulatory filing.
On 10 June last year, the RBI had approved Chhibber’s appointment as interim CMD of J&K Bank for three months following the removal of Parvez Ahmed from the post by the erstwhile state government.
He received a month’s extension in September 2019 to continue as the bank’s interim CMD, followed by a six months’ extension in October last year.
Pertinently after splitting of the post of Chairman-cum-Managing Director into two separate entities, the Board of Directors at its meeting on 17 May 2020 approved the appointment of Zubair Iqbal as Managing Director of the Bank, and R K Chhibber, currently the CMD of the bank, as the Non-Executive Chairman of the Bank for a period of three years, subject to the approval of and to be effective from the date of approval of their appointments by the RBI. The RBI’s approval of Zubair Iqbal as MD & CEO is still awaited.
As per the Reserve Bank of India guidelines, the timeline for regulatory approvals for appointment of Managing Director & CEO and Chairman in private sector banks is 90 days.