FCIK demands intervention to resolve issues between J&K Bank, MSMEs

By
Daily Excelsior
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Excelsior Correspondent
Srinagar May 2: The Federation of Chambers of Industries Kashmir (FCIK) today called on the government of the Union Territory to intervene and resolve the issues between Jammu and Kashmir Bank and MSMEs.
According to the spokesperson of FCIK, the demand was made in a meeting between the FCIK Advisory Committee and the presidents of organized industrial estates. He said the meeting highlighted the financial stress currently prevalent in MSMEs owing to a number of reasons, including the unilateral withdrawal of marketing support committed under the industrial policy of 2016-26, coupled with long spells of business interruptions during re-organization and COVID restrictions, which have led to growing non-performing assets (NPAs).
He said the FCIK regretted that the bank had launched an unwarranted and undesired campaign of maligning and tarnishing the public image of entrepreneurs. “All MSMEs are willing to repay their loans to the bank on the launch of a uniform, non-discriminatory restructuring, and OTS scheme with reasonable time frames,” he said.
He said that the President of Industrial Growth Centre Lassipora informed the meeting about the recent visit of the MD and other top officials of J&K Bank and their willingness to facilitate NPAs with suitable OTS schemes besides enhancing access to credit for prospective and existing industrial units.
He said FCIK underscored the role of the UT government as a mediator between J&K Bank and MSMEs in identifying an acceptable solution to the issue for the benefit of both parties. The government needs to link these schemes with the rehabilitation of sick industrial units under an existing revival and rehabilitation scheme. “We demand that the government take swift action to address the concerns of MSMEs and bring an end to the maligning campaign launched by J&K Bank against them. We hope that the UT government will use its influence as the majority shareholder to shape the desired restructuring and OTS schemes,” he said.

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