In Indian-administered Kashmir, the largest public funded bank will split shares after India unilaterally revoked the special status of the disputed region in the August of 2019.
The Jammu & Kashmir Bank on Tuesday said its board has given in-principle approval to transfer 8.23 per cent stake to Ladakh, which India culled out of the disputed Himalayan region.
A part of the shares in J&K Bank that were owned by local government will be transferred to the mountainous region which borders China.
The board decided “to give its ‘in-principle approval’ for implementation of General Administration Department in terms of which ownership of 8.23 per cent out of its (J&K Government) shareholding in Jammu and Kashmir Bank (4,58,29,445 Equity Shares) as on October 31, 2019, shall be transferred to Ladakh,” the bank said in a regulatory filing.
After the abrogation of Article 370, Kashmir, and Ladakh are directly controlled by Indian government which has been accused of damaging the local institution and initiating policies to change the demography of the Muslim region.
One post of director on the Board of the J&K Bank is earmarked for Ladakh.
The annulment of the autonomy to the disputed region, contested by both India and Pakistan, was done while all Kashmiri political representatives were kept under detention, communication in Kashmir was blacked out, and thousands were imprisoned.