The Biz Reporter
Srinagar:
A delegation of the Kashmir Chamber of Commerce and Industry (KCC&I), led by President Javid Ahmad Tenga and comprising Past President A.M. Mattoo and Ashiq Shangloo, has raised a series of concerns with Jammu & Kashmir Bank over regional credit deployment, interest rates, recruitment, governance, lending procedures and recovery notices issued to stressed borrowers.
The delegation met J&K Bank Managing Director and CEO Amitava Chatterjee and submitted a detailed 11-page Memorandum outlining concerns of the business community and seeking a comprehensive Special One-Time Settlement (OTS) scheme for eligible stressed borrowers.
KCCI acknowledged the bank’s strong recent financial performance, including a record net profit of Rs 2,363.47 crore in FY 2025-26. However, the Chamber said its concern was the pace and pattern of credit growth and the need to ensure adequate attention to J&K.
KCCI sought dedicated representation for the Kashmir business community on the J&K Bank Board, saying regional economic perspectives should be adequately reflected in the bank’s governance and stakeholder engagement.
On recruitment, the Chamber referred to the proposed recruitment of around 1,400 posts and urged that the drive, as well as future recruitments, be structured on a divisional basis with equal allocation between Jammu and Kashmir provinces.
KCC&I demanded that the Bank increase its Credit-Deposit (CD) Ratio to bring it at par with the national level, thereby ensuring greater deployment of deposits mobilised in the region towards productive lending and supporting local economic and business activity.
A key issue raised during the interaction was the requirement of net-worth certificates for renewal of cash-credit and other credit limits. KCCI said the requirement added to the compliance burden on businesses and was not commonly applied by other banks.
During the interaction, Managing Director and CEO Amitava Chatterjee assured the delegation that directions would be issued so that borrowers would not be asked to furnish net-worth certificates for renewal of their credit limits.
The Chamber also sought faster sanction and renewal of working-capital and cash-credit limits, particularly for MSMEs and small businesses, along with lending products aligned with the seasonal cash flows of tourism, hospitality, horticulture, handicrafts, transport and trade.
On interest rates, KCCI said advances extended outside J&K were being offered at lower rates than comparable advances within the region. It also said other public-sector and private-sector banks operating in J&K were offering credit facilities at lower rates compared to J&K Bank. The Chamber sought greater transparency and parity in interest-rate benchmarking across geographies.
The Chamber called for greater use of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to facilitate collateral-free lending to eligible MSMEs and sought proportionate collateral and guarantee requirements. It also raised concerns over processing, maintenance and other charges, seeking prior disclosure and greater transparency.
Special OTS for stressed borrowers
The Chamber renewed its demand for a Special OTS scheme, saying more than two years had passed since discussions on the issue began with the bank. KCCI said repeated assurances had been given that such a scheme was under consideration, but stressed borrowers whose accounts had turned NPAs were still awaiting a concrete, time-bound announcement.
KCCI sought an SBI-type, transparent and formula-based settlement mechanism for genuinely stressed borrowers. It clarified that the demand was not for a blanket loan waiver, but for a structured mechanism under which eligible borrowers could settle their accounts and exit prolonged litigation and recovery proceedings.
The Chamber cited prolonged disruptions faced by businesses in J&K, including curfews, shutdowns, violence, communication restrictions, the 2014 floods, the 2016 unrest, the 2019 constitutional changes and the COVID-19 pandemic.
KCCI said its proposed OTS should include clear eligibility criteria, reasonable timelines and revival-oriented provisions, along with a temporary pause on coercive recovery for prima facie eligible applicants.
KCCI seeks halt to recovery notices
A major concern raised by KCCI was the frequent publication of recovery notices against borrowers in newspapers.
The Chamber said repeated publication of such notices was creating serious social and reputational difficulties for affected entrepreneurs and their families. It said such notices could cause social embarrassment and further damage the standing of otherwise genuine borrowers within the business community.
KCCI has therefore urged J&K Bank to keep such recovery notices and other coercive recovery measures in abeyance for a reasonable period in cases involving genuine and viable MSMEs facing temporary financial stress.
More specifically, the Chamber has sought that recovery notices against such borrowers be kept in abeyance until a comprehensive OTS scheme is announced.
