Industries’ body seeks interest waiver on working capital

Jammu, October 17

The Bari Brahmana Industries Association (BBIA) has sought waiver of bank interest on the working capital and term loans from July 1 to December 31, 2016, with the concessional rate of interest for the next one year due to the losses suffered because of Kashmir unrest.

The association has also demanded deferment of instalments of term loans, which are payable up to March 31, 2017, with the rescheduling of instalments afterward. These demands were raised by association members, led by its president Lalit Mahajan, with Chairman and CEO of J&K Bank Parvez Ahmed.

While welcoming Parvez Ahmad, on his appointment as the Chairman of J&K Bank Ltd, Mahajan highlighted the various issues related to the industrial sector arising due to the Kashmir unrest.

Other demands included exemption to the industrial sector of the state from the purview of the NPA in respect of loans from J&K Bank, short-term soft interest-free loans by the bank to the industrial sector as maximum industrial units are facing financial crunch due to complete stoppage of financial transitions across the state and immediate enhancement of 25 per cent in the working capital limits of the industrial units by the bank with same collateral security.

The BBIA has also sought reduction in the current higher rate of interest being charged by the bank from their member units in comparison to other banks and enhancement of loan-sanctioning powers at the branch manager level for the Industrial Finance Branch, Bari Brahmana.