Excelsior Correspondent
JAMMU, Oct 18: In the wake of more than three-month long ongoing unrest in Kashmir valley and the consequent losses to trade and industry, the Jammu and Kashmir Bank (JKB) has planned to restructure its loan recovery mechanism in the State subject to approval from Reserve Bank of India (RBI).
This was informed by the new Chairman and CEO of J&K Bank, Parvez Ahmed, while talking to media persons during his maiden press conference in winter capital of the State, here today.
“Even as the situation has started returning to normalcy, the bank is conscious of the losses suffered by the trade, tourism and other sectors in the State during the more than three months and keeping in view the complicated financial situation and support borrowers, we have already moved an application to RBI for restructuring of the loans with a moratorium on interest for the turmoil period,” he explained and added that the bank had not yet assessed the losses because of unrest.
In response to another query regarding recovery of Non Performing Assets (NPAs) which are nearly 10 per cent at the moment, the Chairman said that the Bank has come up with new strategy to recover it to improve the balance sheet of the bank. “The plan includes legal recourse, one-time settlements and asset Reconstruction Company to improve NPA recovery,” he explained.
Admitting that the bank was facing some problem due to unrest, which was feared to impact more in case of its further prolonging, Parvez Ahmed, however, predicted that the things would be managed now soon. “Consolidation and recovery of NPAs will reduce impact on bottom-line growth and we will manage the situation within 12 months, instead of 18 months, as said earlier,” he said.
The Chairman said that being the premiere financial institution of the State, J&K Bank would continue to catalyze economic development of the State through empowerment of individuals and businesses. “Besides, productive intervention in social causes ranging from health to heritage, education to entrepreneurship and culture to art will receive a renewed focus to pave way for an inclusive and sustainable growth of the State,” he announced.
While listing the number of business initiatives, the Chairman announced that that Bank, in line with Chief Minister’s vision, will soon be establishing two business units (branches) exclusively for women, one each in Srinagar and Jammu cities. “These branches would be run only by women staff of the bank. Besides, we will be tailoring and introducing specific schemes for women with a special focus to promote and nurture entrepreneurship. The loans offered to women shall be at concessional rates of interest”, he said.
Further elaborating on the Bank’s plans to encourage social and cultural enterprises as also entrepreneurship with a view to give boost to rich art forms, handicrafts and cultural heritage of the State, he said that Basohli paintings owing to their artistic excellence and national and international acclaim was a case in point.
Maintaining that empowerment is subservient to education, Parvez Ahmad 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 and organizing Education Loan Mela during admission season an annual feature. “Information Technology specific education finance products will be a priority”, he said.
The Chairman announced that innovative products and services would be devised to explore potential of religious tourism in the State. “Specific products for pilgrims from across the country coming to Shri Amarnathji Yatra and Mata Vaishno Devi pilgrimage would be devised on priority”, he stressed.
“Our focus from now on will be future. We will concentrate on developmental initiatives, potential business areas, innovative production, social banking, micro-financing, under-serviced and unorganized potential sectors to streamline financing structure and customer service up gradation”, he stressed.
Stating that encouragement of the local industry will remain one of his top priorities, Chairman said that Bank will be supporting the industrial sector through effective delivery mechanism and valuable inputs from the industrialists. Laying emphasis on customer service, he announced the establishing of Customer Grievances Redressal Cell in Chairman’s Secretariat at Jammu with immediate effect.
On being asked about the demand raised to include Islamic Banking system, the Chairman said that the proposal was under discussion of RBI, which has to take call on the subject. “JK Bank cannot decide alone on Islamic banking but we will strictly go on line with RBI and the State Government over the issue,” he explained.
During the press conference, the Chairman was flanked by the JKB Executive Presidents Vagish Chander and S S Sehgal and Senior President Abdul Rashid.
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