Srinagar, Jan 10: Jammu & Kashmir Bank Ltd on Tuesday announced a special One Time Settlement (OTS) Scheme for Non-Performing Assets (NPAs). According to the bank, the scheme offers an opportunity to all the eligible account holders to settle their NPA accounts and avail certain concessions.
MD & CEO Baldev Prakash while launching the Special One Time Settlement Scheme said, “Through this Special One Time Settlement Scheme (SOTS-2021), the Bank provides a golden opportunity to all the eligible account holders to settle their accounts and avail the best possible concessions that can be offered.” Calling the scheme good and practicable, he expressed hope that with the earnest efforts of all concerned the scheme will be successful.
The scheme was launched in presence of Executive President Sunil Gupta, President & Special Secy. to MD & CEO Karanjit Singh, President IAPM Syed Rais Maqbool, Vice President Aijaz Ahmad Bazaz and other senior officers at the Bank’s corporate headquarters. All Zonal Heads from across the country also joined the inaugural function through video-conferencing mode along with senior officers.
While impressing upon the need to directly contact the borrowers individually to inform them about the scheme parameters, MD &CEO also directed the participants to work in close coordination with each other for effective implementation of the scheme. “Overall recoveries must continue alongside and gain momentum across our operational geographies to improve Bank’s bottom-line as the financial year is closing in quite fast”, he added.
Earlier, giving an overview of the NPA Scenario in the banking industry President Syed Rais Maqbool dwelt upon the Bank’s NPA position and explained the need for coming up with SOTS-2021. He said, “In view of the Bank’s NPA position, SOTS-2021 has been devised to provide an enabling environment to the operative levels to effect recoveries”, adding, “The scheme is valid for 30 working days for which the sanction or otherwise will be conveyed within 7 working days of the receipt of application with a maximum repayment period of six months.”
“To encourage faster payments of OTS amount, 5% incentive on OTS amount will be given to those paying the amount within one month from the date of sanction while as those paying within two months can avail 2% of the OTS amount as incentive”, he said.
He expressed hope the operative levels will perceive it as an opportunity and will cover all the eligible borrowers under the scheme.
A detailed power-point presentation covering all the features of SOTS-2021 was made on the occasion. Notably, all the accounts classified as D3 and Loss Assets with an outstanding amount of more than Rs 15 lakhs and up to Rs 5 Crore as on September 30, 2021 shall be eligible. As per the terms and conditions of the scheme, other cases include the eligible ones pending before Courts / DRTs besides the cases wherein the Bank has issued notice under various sections of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI-2002).