The Biz Reporter
Srinagar, Jan 29: A delegation of Kashmir Chamber of Commerce and Industry (KCCI), led by President Javid Ahmad Tenga, met with Mr. Amitava Chatterjee, the Chief Executive Officer/Managing Director of Jammu & Kashmir Bank, at the bank’s corporate headquarters in Srinagar. The meeting, which included top executives from J&K Bank, addressed several critical issues affecting the business community, focusing on the implementation of a special One-Time Settlement (OTS) scheme, staffing shortages within the bank, and the pressing need to lower interest rates for borrowers.
During the discussions, KCCI clarified its position on borrowers and Non-Performing Assets (NPAs), emphasising that it does not advocate for willful defaulters. The chamber remains committed to supporting borrowers who have transitioned into NPA status due to circumstances beyond their control. KCCI held a threadbare discussion on the current Special OTS and suggested that this scheme needs overhauling and the removal of riders to meet the expectations of the business community. President KCCI, Javid Tenga advocated the demand for another OTS scheme without riders as per MSME norms and extended tenure. In response, J&K Bank’s CEO assured the KCCI team that the bank would revisit the special OTS scheme, highlighting a willingness to explore options that could ease the financial burden on affected borrowers.
The KCCI delegation strongly stressed the importance of halting the practice of naming and shaming borrowers, which was successfully raised with the CEO during the meeting. Additionally, the delegation asserted that lowering interest rates is essential for stimulating economic growth and enhancing the financial viability of small businesses, enabling them to thrive despite ongoing challenges. The need for hassle-free financing was also underscored, with KCCI advocating for streamlined processes that minimize obstacles to timely credit access.
Further emphasizing the need for accessible financial solutions, the discussion focused on the crucial role of small shopkeepers and traders in Kashmir’s economy. In light of this, Mr. Chatterjee issued on-the-spot directions to J&K Bank executives to ensure adherence to the guidelines of the credit guarantee scheme, which aims to bolster support for small enterprises.
The KCCI also raised concerns about the lack of adequate staffing across various branches of J&K Bank. Local businesses have been complaining of insufficient personnel are leading to longer wait times and reduced service quality, negatively impacting customer satisfaction and overall economic activity in the region. KCCI urged J&K Bank to initiate a recruitment drive to fill vacant positions, with Mr. Chatterjee assuring that action would be taken to address the staff shortages.Kashmir Chamber of Commerce and Industry discussed the abolition of the LCU system. They argued that removing LCUs would enable banks to better respond to the financial requirements of the business community, minimizing unnecessary delays in credit access.
KCCI proposed forming a Joint Committee comprising bank officials and KCCI representatives to foster a stronger relationship between the bank and the business community.
KCCI concluded the meeting by requesting that J&K Bank promote cordial interactions at all levels with customers, encouraging ownership and responsibility among staff members. The chamber expressed its commitment to continued cooperation and assistance in the future.
KCCI remains optimistic that the discussions from the meeting will lead to positive outcomes regarding NPA issues and the overall financial well-being of borrowers. Proactive measures taken by J&K Bank will also signal to investors the bank’s commitment to supporting the business community in Jammu & Kashmir.
The meeting was attended by Senior Vice President Ashiq Shangloo, Past President Mushtaq Ahmad Wani, and executive members Irfan Guju and Afaq Sarwar.
