Jammu and Kashmir Bank Chairman Haseeb Drabu has been asked to resign, highly placed sources said on Thursday night.
However, Drabu declined to comment when asked by PTI about the development.
"I don't know as of now," he said.
A professional economist, Drabu became the bank's chairman on June 9, 2005 and his term is due to end in mid 2011.
The development came on a day when the Omar Abdullah government effected a major shake-up of police and bureaucracy in Jammu and Kashmir.