October 2013

By KS Correspondent

Bank storyReserve Bank of India granted approval for extension in the term of Mushtaq Ahmad as Chairman  & CEO of J & K Bank by a period of three years. The extended term of three years will have effect from 6th October 2013.

Mushtaq Ahmad took over as Chairman & CEO of the Bank on October 6, 2010. Under his leadership the Bank witnessed phenomenal growth in all the operational areas. The deposits of the Bank increased from Rs. 39688 crores as on 30th September 2010 to Rs. 64010 crores as on 31st March 2013 (Increase of 61%). During the same period loans and advances have increased by Rs. 16257 crores from Rs. 23876 crores to Rs. 40133 crores (Increase of 68%). The net profit of the bank jumped from Rs. 512.38 crores for the FY 2009-10, to all time high net profit of Rs.1055 crores for the FY 2012-13.

Against dividend of 220% (Rs. 22/Share) paid for the FY 2009-10, the Bank paid a record dividend of 500% (Rs. 50/Share) to its shareholders for the FY 2012-13.

In the last three years, the Bank has opened 190 new business units and installed 400 ATMs thereby taking the number to 719 and 709 respectively. In order to have its presence in every nook and corner of the State for providing banking facilities in all unbanked areas, the Bank has given special attention on increasing delivery channels. As a result of this initiative branch and ATM network of the Bank in the State has reached leadership level of 618 and 640 respectively.

In order to tap the economic potential in the J&K state, the bank tailored various products and programmes.

One of the outstanding features of the bank’s performance in the last three years has been the focus on important economic sector of the state. The focus on horticulture sector, especially to tap the potential in Apple economy and rescue the growers from the clutches of moneylenders has won laurels for the bank.

 Immediately after taking over as Chairman and CEO in October 2010, he got an independent study conducted in 2011 by Enterprise Solutions to Poverty (ESP) – an innovation group recognized as a global leader in building finance and enterprise systems. The findings of this survey revealed that over 75% of small farmers were getting their financing from moneylenders, with only 10% from banks.

Interestingly, according to the study, farmers used to prefer moneylenders to banks because traders provide a market as well as money, and are willing to finance for emergencies as well as for crop requirements. 75% of apple growers were getting their financing from traders and are often unaware that its effective interest cost of financing from moneyl;enders  are 36% to 54%.

In this backdrop, Mushtaq Ahmad immediately directed his management team to tailor appropriate interventions so that apple growers rescued from exploitative noose of usurious moneylenders and empowered sufficiently in terms of finance and guidance to realise the true potential of apple economy. The bank conceived of and devised a comprehensive project under the title of ‘J&K Bank Apple Project’ and revisited its Apple finance scheme to make it hassle free with minimum documentation.

In essence, the project envisages complete institutional financing of the Apple crop to empower particularly the grass root grower to ensure that the state proceeds ahead towards becoming a rich horticulture economy

Bank customised its apple finance scheme to meet variant needs of the small apple growers.

Besides, the bank has been pursuing inclusive growth, which lies at the heart of economic development of the country, seriously through its programme of financial inclusion across the state. The bank provided direct employment to thousands of unemployed youth through major recruitment drives in the past three years.

Chairman’s profile

Profile: Acknowledging the successful blend of his specialized knowledge with practical experience of a visionary banker in all the critical fields of contemporary banking, Mushtaq Ahmad was appointed as Chairman and CEO of J&K Bank.

Having joined the Bank in 1972 as an officer, Mushtaq Ahmad has a distinguishing career of 36 years as a practical banker.

His personal progression has been a vital and contributing element of the unfolding success story of J&K Bank since more than three decades.

During his distinguishing career he has worked on the most significant positions in the bank with a missionary zeal and sense of purpose.

He has been a leading figure in the Bank’s Credit, Risk Management, Strategy and Business Development, Assets & Liability Management, Human Resource Development, Investments, Treasury, Forex operations, International Banking, Insurance and Business Support Division, virtually covering entire spectrum of commercial banks.

He was recently conferred with ‘Manager of the Year’ award at Europe Business Assembly in London.

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