Aman Malik
Srinagar, November 27 :- A high-level delegation from the Kashmir Chamber of Commerce and Industry (KCCI) met with the Managing Director and CEO of J&K Bank, Mr. Amitava Chatterjee, in Jammu on Thursday, urging immediate and compassionate banking support for businesses facing an “unprecedented stress.”
Led by KCCI President Javid Ahmad Tenga, the delegation acknowledged the bank’s institutional progress under Mr. Chatterjee’s leadership but presented a grim picture of the economic situation in the valley. They stated that since April 2025, particularly after the Pahalgam incident, key sectors including tourism, trade, handicrafts, manufacturing, and MSMEs have suffered heavy setbacks, leading to shrinking revenues and declining cash flows.
The Chamber emphasized that the situation has reached a critical point where rising defaults are being met with a “deeply distressing and demoralising” wave of SARFAESI possession notices.
A central demand from the KCCI was the urgent rollout of a liberal and inclusive One-Time Settlement (OTS) Scheme. The business body requested the bank to temporarily suspend the issuance of possession notices until the new OTS is finalized, warning that their absence, combined with enforcement actions, is deepening despair among entrepreneurs.
Several other critical issues were raised during the meeting:
· Exporters’ Plight: KCCI highlighted severe challenges faced by Kashmiri exporters due to global uncertainties and delayed payments. They secured an assurance from the MD that the bank would ensure strict and uniform implementation of recent RBI guidelines offering temporary relief to exporters.
· High-Interest Rates: The delegation called for a rationalization and reduction of interest rates for stressed accounts, citing that businesses with reduced turnover are being burdened by steep financing costs. The MD informed that rate reductions in several segments have already been made and others are under review.
· CGTMSE Inconsistencies: KCCI pointed out that several J&K Bank branches were not uniformly implementing the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, forcing eligible borrowers to furnish collateral. The MD committed to immediate staff training to ensure timely collateral-free credit for MSMEs.
In a constructive step, the MD agreed to KCCI’s proposal to hold joint awareness programmes in Srinagar, including a comprehensive seminar for business customers and a separate one dedicated to exporters.
The KCCI delegation expressed satisfaction with the MD’s patient hearing and positive response, reaffirming its commitment to work closely with J&K Bank to revive economic activity and restore confidence.
