JK Bank callous over spending on Advertisements without thinking relevance & contents

[ April 17, 2017 ] J&K Bank considered to be state’s premier financial institution lacked vision for investment and representatives from the business community and young entrepreneurs should be part of its policymaking body and JK Bank spends corporate social responsibility money to make politicians happy. Notwithstanding the fact that an ordinary person is made to pay several rounds for an ordinary loan of even below Rs 20000 but all of sudden becomes lion while spending huge funds on J&K Bank advertisements without following any procedure and morality purely on pick and choose method without any propriety in spending the funds where state has a share of 53%. There are hundreds of examples where advertisements worth crores issued by banks were mere formality and were not necessary to be published in news papers and that too colored advertisements without going into the ramifications of its impact on economy and also the health of financial institutions. This is also quite surprising to note that the advts being released in English only advts being published in other languages irrespective of the fact their reach is negligible. What’s the fun of issuing advts in English and expecting their reach in rural areas where it has no relevance at all? J&K Bank has crossed all limits of granting bad loans and then spending worth lacs in informing the defaulters to pay back. Secondly JK Bank released black & white advertisement to local dailies over information about a defaulter with Rs 3592.50 lacs based at Ludhiana in its Jammu edition which is plain wastage of money and if the information was necessary it should have been in local daily of the area where defaulter is residing. Likewise colored advertisement regarding J&K Bank Digiwin Lucky Draw Scheme was also issued to near about 30-40 newspapers of both the region each whereas the same information could have been uploaded on the website of Bank and would have been easily accessible to one and all without spending even Rs 1. Not only this sycophancy prevails in the Bank which when is requested by newspapers continue issuing advertisements for the days together to keep all happy without least caring about the loss of public money and also not helping at all in improvement of banks working. When the J&K Bank Digiwin Lucky Draw Scheme in the form of displayed advt was published in main papers on 12-4-2017 but when other papers approached the bank’s the next day were also given advertisement to keep them happy. Moreover despite more than 50% stake in JK Bank, why the rate set by Information department is not applicable on bank which is issuing advertisements on the rates as per the convenience. Govt has constituted a Committee which shall be responsible for overseeing/implementation of the content regulation of Government advertising in the J&K State under Chairmanship of Mr. K. B. Jandial, Former Member, J&K, PSC and Ex-Director Information and Public Relations, J&K after the direction of Supreme Court of India but why there is no check on method and need of advertisement being issued by JK Bank and what is holding back state to ask JK Bank to follow the guidelines issued by Apex Court of India in public interests to ensure the contents in the advertisement worth advertising and also to avoid misuse of public money. This is gross injustice with the public money which is being thrown into dustbin but in order to keep the owners of newspapers happy this advts is circulated in all those papers having no considerable readers and this is going on for years together unabated without any cheque. On one hand Information department spends near about thirty crores for different types of advertisement to propagate policies and programmes of govt to convince the people of state that there exist welfare state in one year under well established state Govt advertisement Policy but one is surprised to note that J&K Bank has no advt policy to convince anyone that the money is being spent by it properly and adequately all alone spends more than the Information department by even advertising the opening of branches, ATMs and even events which get published the same day as and when it happens. For example CM Mehbooba Mufti inaugurates JK Bank Zonal office Rajouri on 14-03-2017 and the same got published in in major , minor and even all types of papers on prominent pages and even some papers carried the news item even on front page. But as JK Bank mange more it on the same day turned the news into full page colour advts and release it to leading newspapers at the cost of worth lacs to please CM and her Ministers present on the occasion. Now the question can be asked to JK Bank what was the fun of releasing full page advt of a event which was already sure to be properly published in all the newspapers being CM as Chief Guest on the occasion. Nothing can be more unfortunate to note that J&K Govt has 53.17 stake but has no say in its working and perhaps that is why Bank distributed loans to blue-eyed boys of politicians despite knowing that they would never be returned and the accounts would become nonperforming assets. Jammu and Kashmir Bank has reported a net loss at Rs498.47 crore for the third quarter ended December 2016, mainly due to sharp jump in provisions for bad loans.The bank had reported a net profit of Rs117.68 crore in the year-ago period. Its total income also decreased to Rs1,770.2 crore from Rs1,806.08 crore in the same period last fiscal. The total provisions excluding income tax increased over threefold to Rs726.28 crore, as against Rs239.67 crore in the year-ago period. Gross NPA (non-performing assets) as a percentage of total advances rose significantly to 11.84%, from 6.81% a year earlier. The bank’s net NPA stood at 5.99%, from 2.60% at the end of December 2015.Finance Minister Haseeb Drabu has admitted that J&K Bank was facing “governance deficit” for years, leading to the increase in its non-performing assets (NPAs) to tune of Rs 6,000 crore. “As a result, the bank had to declare a huge loss of Rs 600 crore for the quarter ended September 2016-17. The bank has declared NPAs of Rs 6,000 crore. There will be more unpleasant news this year.Govt did not make efforts in the past two years to sort out the issues of asset quality without impairing the autonomy of the bank. With a change in the top management and the board, the reality has now surfaced. There is also a significant under-provisioning of impaired assets.