J&K Bank plans to restructure loan recovery mechanism

Tribune News Service

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Jammu, October 18

Jammu and Kashmir Bank (JKB) plans to restructure its loan recovery mechanism keeping in view the current unrest, especially in the Kashmir valley, and has approached the Reserve Bank of India (RBI) for approval.

Addressing a press conference, Parvez Ahmed, Chairman and CEO, J&K Bank, said the bank was conscious of the losses suffered by the trade, tourism and other sectors in the state during the last four months, complicating the financial situation in J&K. Executive presidents Vagish Chander and SS Sehgal and senior president Abdul Rashid were also present in the press meet.

“We have moved an application for appropriate measures to RBI in this regard and the bank is committed to supporting traders and borrowers to tide away the impact of unrest in Kashmir which has hit every aspect of the economy,” the chairman said.

Describing women as key enablers of empowerment, the chairman announced that the bank in line with Chief Minister Mehbooba Mufti’s vision would soon be establishing two business units (branches) exclusively for women, one each in Srinagar and Jammu cities.

“These branches will be run only by women staff and specific schemes will be introduced for women with a special focus on promoting and nurturing entrepreneurship. The loans offered to women will be at concessional rates of interest,” Parvez said.

On recovering non-performing accounts (NPA), which is close to 10 per cent at the moment, the chairman said the Bank had come up with a new strategy to recover it to improve its balance sheet.

“The plan includes legal recourse, one-time settlements and Asset Reconstruction Company to improve NPA recovery. Our focus is consolidation and recovery and we are moving towards it,” Parvez said.

He said specific products for pilgrims from across the country coming for the Amarnath yatra and Mata Vaishno Devi pilgrimage would be devised on priority.

“Our focus from now on will be future. We will concentrate on developmental initiatives, potential business areas, social banking, micro-financing to streamline financing structure and customer service upgrade,” the chairman said.

He stressed on the bank’s plans to encourage social and cultural enterprises as also entrepreneurship with a view to giving boost to rich art forms, handicrafts and cultural heritage of the state.

Maintaining that empowerment is subservient to education, he outlined his strategy to give boost to education finance by making it hassle-free, offering competitive rates of interest, entering into tie-ups with reputed academic and professional institutions across India.

Laying emphasis on customer service, Parvez Ahmed announced the establishment of Customer Grievances Redressal Cell in Jammu with immediate effect. On demands from various sections to introduce the Islamic banking system, Parvez Ahmed said J&K Bank was willing to offer Islamic banking to its customers, but proposal had to be first approved by RBI.