As part of crisis management, J&K Bank engages with J&K Inc.

28 April 2020

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Srinagar: As part of its wider deliberations to devise a framework that would be beneficial to both the banks and the businesses while dealing with the impact of Covid-19 pandemic in the UT, J&K Bank’s recently constituted Executive-level Credit Management Committees met various trade bodies’ delegations in separate meetings at Srinagar and Jammu. The interaction is a part of the ongoing series of meeting held with the representatives of various sectors as per the directions issued by the board of directors of the bank headed by Chairman and Managing Director Rajesh Kumar Chhibber.

In Srinagar, the committee headed by Executive President Arun Gandotra met a delegation comprising of the members of PHD Chamber of Commerce & Industry (Kashmir Chapter) at the bank’s corporate headquarters. Along with the bank’s Vice Presidents Fayaz Ahmad Zargar, Manzoor Hussain, Peer Masood Ahmad and AVP Riyaz Ahmad the bank’s Executive President held a detailed discussion with the members of PHD Chamber of Commerce & Industry led by its Chairman Baldev Singh Raina along with Showkat Chowdhury, Bilal Ahmad Kawoosa, Jan Mohammad Koul, Shah Jahan and Iqbal Fayaz Jan. Also a representative of Kashmir Industrial Revival & Development Forum – an organization claiming to work for revival of industrial units and MSMEs – also called on the Executive President’s office and shared the forum’s feedback besides making few suggestions.

In Jammu Executive President Sunil Gupta chaired meetings with the members of the Chambers of Traders Federation, Members of Jammu Fruit Association Jammu, Tourism federation of Jammu, Hotel & Restaurant Association Katra at Zonal Office Jammu Central-I. The meeting was attended by the bank’s Vice Presidents Anand Pal Singh, Narjay Gupta and Sunit Kumar besides the delegation from Chamber of Traders Federation, Jammu led by the President of the chamber Neeraj Anand along with other office bearers Raman Gupta, Shiv Kumar Gupta, Dinesh Gupta, Ajay Gupta, Parag Abrol and Rajesh Gupta. While as the meeting with the members of Tourism Federation of Jammu and Hotel & Restaurant Association Katra included members from the trade bodies’ Raman Suri, Vikas Gupta, B B Kotwal, and Sidharth Choudhary.

The delegations extended gratitude to the Bank for constituting the executive level committee to mitigate the immediate as well as long tern effects of COVID-19 Pandemic.

“The Industry, Trade and Commerce of Jammu & Kashmir is presently facing its biggest and worst economic challenge with larger and combined effect from Aug-2019 lockdown and COVID-19 crisis. The cash inflows of industries have been effected from August-2019 and the situation is likely to stay that way for the financial year 2020-21. The small as well as the large businesses across the J&K are confronting extreme economic challenges as result of COVID-19 Pandemic”, said the members of the delegation.

During the course of meetings, the representatives demanded concession in bank interest on the Working Capital facility for six months or till the Lockdown, and providing additional funds to the extent of 25% of fund based working Capital limits (instead of 10%) at lower rate of interest with a moratorium period of one year besides calling for enhancement of Mudra loans from the existing Rs 10 lacs to Rs 25 lacs. The members also suggested for working out a structure for auto renewal in cash credit limits due for renewal in the current FY. Some demands specific to tourism industry, also made by the delegates during the meeting, called for one year moratorium period (extension of repayment period) to hotels (including those under construction) with waiver of interest for a period of one year besides providing interest-free working capital for meeting day to day expenses.
The delegations requested the bank leadership to take up the above suggestions put up by them which are beyond the ambit of the regulatory guidelines with the Reserve Bank of India and other concerned quarters as the banks and industries share a strong and closer bond within J&K and are interdependent on each other.

Responding to the requests the committee emphasized that the bank has always walked an extra mile to support the businesses and industries within J&K. “The industries in J&K have seen many setbacks but the bank has always taken supportive measures to see the sector sail through those turbulent times. In the wake of Covid-19 pandemic, the bank is again at the forefront proactively taking feedback from its various stakeholders so that the impact of current crisis is dealt with effectively within the guidelines laid down by the regulatory authorities”, said the Executive President Arun Gandotra.

In response to the pleas made by the members of various trade delegations, Bank’s Executive President Sunil Gupta assured the participants that the bank was committed to provide maximum possible support to the different segments of businesses within the regulatory guidelines laid down by the Reserve Bank of India.

Both the Executive Presidents informed the delegations that given the gravity of the crisis, the Chairman and Managing Director is monitoring the situation on daily basis so that the resolution to the emerging issues are worked out in the least possible time.