The board of J&K Bank has sought help from Reserve Bank of India regarding the appointment of a committee to select the new CEO of the bank. The bank is in need for a new CEO as the former CEO, Haseeb Drabu. The bank has made a proposal that till the time the next CEO gets apppointed, the finance secretary of the State or a board of directors would hold the interim charge of the bank.

It is indicated that as per the new arrangement, the post of CMD will be split into a non-executive chairman and a managing director or CEO. This structure is liked by RBI also.

Mr Drabu has given no reason in the brief resignation letter. "I hereby resign as chairman and chief executive of Jammu and Kashmir Bank. I request you to accept my resignation and relieve me of my responsibilities at the Bank," said the letter. "I want to put on record that it has been professionally a privilege and personally an honour for me to head this remarkable institution of the state," he said.

"Institutions are more important than individuals," he told an emotional gathering. "I think we have transformed the bank from a good institution to a great institution."