JK Bank CEO seeks pay hike to Rs 1 million per month

Srinagar: Jammu and Kashmir Bank’s, recently appointed Chairman and Chief Executive Officer (CEO), Mushtaq Ahmad, is seeking a pay hike from current monthly compensation of about Rs 3.5 lakh to Rs 10 lakhs, apart from the sops and perks he is enjoying, reliable sources in the Bank told Kashmir Dispatch on Sunday.  The top officials of the Bank have kept a Board meeting for revision of compensation to the CEO and two Executive Director’s (ED) on Monday, February 28 to decide on the pay hike. Sources said the both ED’s who will be retiring from their services in May and June this year are seeking a revision of their salary up to Rs 3.5 lakh per month.  “The date for such a crucial meeting has been deliberately fixed, looking at the preoccupation of the state government officials with the budget 2011 preparations,” the source said. Adding, “Otherwise the same could be deferred till all the concerned officials from the state government get free from the state budget 2011.”  According to the sources, there was a tussle going on between the ED’s of J&K Bank and its CEO over the compensation amount. However, it seems that both the parties have mutually agreed to double their montly compensation, the source said.  “This will have a long run financial implications on the over all development of the institution. The Bank will have to pay them accordingly after their retirement,” sources mentioned.  Apart from the monthly compensation, the Bank bears all the expenses of the Chairman/CEO, the source said. Adding, “If the CEO gets a hike, the Bank has to spend around 17-18 lakh a month on him.”  Earlier, CEO, J&K Bank Dr. Haseeb Drabu was initially paid Rs 1.5 lakh per month and then the same was raised to about Rs 3.5 lakhs, in a similar kind of board meeting. The Reserve Bank of India (RBI) cleared the appointment of Mushtaq Ahmad as the new Chairman and CEO of Jammu and Kashmir Bank in October 2010 after Drabu was asked to resign by the state government from the Chairmanship of the Bank.  The Bank was incorporated in the 1938 and is the largest bank private sector Bank in the state of Jammu & Kashmir. The state government is the major stake holder in the Bank and acted as the the sole banker and lender to the government of J&K.  The source said, there is an increased interference in the official matters of the Bank from politicians of a particular political party.  The Bank’s Executive President (EP) Ajit Singh who was retiring in April this year has been given a one year extension in his service due to intense lobbying by a senior political leader, the source told Kashmir Dispatch.  Jammu and Kashmir government’s, Commissioner Secretary Finance, Sudhanshu Pandey might not attend the compensation meeting, the source revealed.