The Reserve Bank of India (RBI) has approved six months extension to R K Chhibber as the interim Chairman and Managing Director of the Jammu and Kashmir Bank.

The extension is effective from October 10 October to April9 next year. Before this, Chhibber's term as the interim Chairman and Managing Director was on one-month extension from September 10. Chibber took over thebank's reins for three months in June following the removal of Parvez Ahmed from the post by the state government.

Reports say the state government, which is major shareholderin the bank with 59 per cent equity stake, is likely to infuse more capital to restore the confidence of stakeholders and improve its growth performance. The lender has also embarked on an exercise to induct highly competent professionals on the board and is considering a proposal for separation of the posts of Chairman and Managing Director.In June, the Anti Corruption Bureau(ACB) in Jammu and Kashmir unearthed several blatant wrongdoings at J&K Bank during Ahmed's tenure after his ignominious removal following charges of corruption and nepotism.

Besides, the Income Tax Department conducted search andseizure operations in Srinagar, Bengaluru, Gurugram and New Delhi toinvestigate the charges and collect evidence.

Ahmed was appointed as the Chairman and CEO of J&K Bankin October 2016 and his tenure was to end in a few months.