Excelsior Correspondent
JAMMU, Jan 30: The management of J&K Bank today issued a clarification to the media reports regarding sale of NPAs to asset reconstruction companies’ at a discount to the book value of the NPAs in the Bank.
The Bank’s official spokesperson in a communique to the media said,” The asset sale has been done to fast track the realization of the cash for the Bank within the regulatory framework after completing the due diligence including expression of interest in the newspapers under the Swiss Challenge Method which is the legally recognized mode of effecting recovery in stressed accounts (NPAs) and is normal practice in banking industry. Reserve Bank of India has framed guidelines governing the field and the Bank has a Board approved policy for sale of stressed assets to ARCs.”
The communique added, “The Bank was precariously perched and prompt corrective action framework of the RBI would have been invoked restraining the Bank from further lending and expansion of bank’s branches, had the timely and strategic decision would not have been taken by the Bank’s Board. The decision was foresighted as the resolution of these accounts is not in sight till date even after referral to the NCLT framework for more than 18 months.”
The spokesperson further informed that the Bank has already issued a clarification in this regard to the media and such campaign is a vain attempt by vested interest to create a negative perception to effect the Bank’ reputation.
Follow our WhatsApp channel