KCCI Meets J&K Bank Leadership, Seeks Urgent Relief Measures Amid Economic Crisis

Srinagar: In a fresh move aimed at addressing the deepening economic crisis in Kashmir, a high-level delegation from the Kashmir Chamber of Commerce and Industry (KCCI), led by its President Javid Ahmad Tenga, met with Amitava Chatterjee, Managing Director and CEO of Jammu & Kashmir Bank, at the Bank’s Corporate Headquarters on Tuesday.

The meeting was convened in the backdrop of the severe economic downturn following the recent Pahalgam incident and the resulting spike in India-Pakistan tensions. The twin developments have led to the abrupt collapse of the region’s tourism industry and triggered a ripple effect across multiple sectors of the local economy.

The KCCI delegation comprised Senior Vice President Ashiq Hussain Shangloo, Secretary General Faiz Ahmad Bakshi, and Past President Mushtaq Ahmad Wani. Top executives from J&K Bank were also present during the discussions.

A Region in Crisis

Mr. Tenga gave a detailed overview of the critical challenges faced by Kashmir’s business community, highlighting how the cessation of tourist arrivals has plunged hundreds of establishments into a state of financial peril. “The region’s economic landscape has been completely transformed within days,” he said, calling the situation “the most challenging economic environment in recent decades.”

He added that unlike previous periods of unrest, when some economic activity continued, the current disruption has brought economic life in Kashmir to a virtual standstill. The President drew attention to the unique vulnerability of Kashmir’s economy, with its heavy dependence on tourism and related services.

Devastation Beyond Tourism

The Chamber outlined the widespread impact of the crisis. The hospitality sector, restaurants, handicrafts, retail, transport, and general trade have all suffered dramatically. “The tourism ecosystem has been shattered,” the KCCI stated, citing mass cancellations, advisories against travel to the region, and widespread panic among stakeholders.

From taxi drivers and artisans to shopkeepers and daily wage earners, the entire economic chain stands affected. With household incomes in freefall, the delegation warned of the high probability of widespread loan defaults, which could further exacerbate the situation.

Call for Institutional Support

Referring to J&K Bank’s historical role in supporting the Valley during difficult times, the KCCI emphasised the Bank’s strategic importance beyond conventional financial operations. “J&K Bank is not merely a financial institution—it is a cornerstone of Kashmir’s economic infrastructure,” Mr. Tenga remarked, comparing the situation to a “war-like emergency” requiring urgent and extraordinary intervention.

J&K Bank’s Response

Amitava Chatterjee, MD & CEO of J&K Bank, acknowledged the gravity of the crisis and assured the delegation that the Bank is committed to responding swiftly. He informed that the Bank’s leadership has been closely tracking economic indicators since the Pahalgam incident and is currently undertaking an internal assessment of its portfolio exposure across affected sectors.

Mr. Chatterjee assured the KCCI that the Bank’s management would formulate and adopt an appropriate policy framework aimed at providing effective relief to the affected business community and mitigating the broader economic fallout.

KCCI President Mr. Tenga expressed gratitude to the MD/CEO of J&K Bank for his understanding and commitment to supporting the region during this difficult period.