Srinagar, May 7: The Federation of Chambers of Industries Kashmir (FCIK) has congratulated J&K Bank for posting its highest-ever annual profit of ₹2,363.47 crore for the financial year 2025–26, while urging the bank to strengthen its commitment towards the economic interests of Jammu and Kashmir.
In a statement issued to Ziraat Times on Wednesday, FCIK described the bank’s performance as a reflection of “sound management, operational discipline and institutional resilience.” The industry body complimented Managing Director and CEO Amitava Chatterjee, the Board of Directors and the staff for delivering consecutive years of record profitability.
The chamber noted that the bank had also registered strong growth in business, deposits and advances, alongside improvement in asset quality.
However, FCIK said the success of the bank was deeply linked to the trust and participation of the people of Jammu and Kashmir over several decades. It observed that households, salaried employees, traders, businesses and institutions in the region had consistently provided the bank with a stable and low-cost deposit base, contributing to one of the strongest CASA ratios in the banking sector.
The federation further stated that a major share of the bank’s earnings historically came from borrowers within Jammu and Kashmir, including salaried employees, traders, horticulturists and MSMEs, many of whom had borrowed against tangible collateral while paying relatively higher interest rates compared to borrowers elsewhere in the country.
“While we wholeheartedly share the pride in the Bank’s historic performance, it must also be recognized that this success has been built substantially on the strength and sacrifices of the people and business community of Jammu & Kashmir,” FCIK said, referring to the prolonged disturbances, market disruptions, natural calamities and economic uncertainties faced by the region over the years.
The chamber urged the bank to now “give the region its due” by preserving and deepening its relationship with local depositors and borrowers at a time when competing financial institutions were attempting to expand their footprint in the region.
FCIK called for the introduction of a Special One-Time Settlement (OTS) policy for borrowers whose accounts had turned stressed due to circumstances beyond their control, including shutdowns, policy disruptions, delayed payments and natural disasters, rather than wilful default.
It also appealed to the bank to keep coercive recovery actions in abeyance until such a policy was introduced, describing the move as a goodwill gesture that would demonstrate the bank’s commitment to rehabilitation alongside profitability.
The industry body further urged the bank to ensure practical implementation of Government of India and Reserve Bank of India guidelines related to MSME restructuring and NPA classification.
FCIK advocated stronger credit support for MSMEs and priority sectors, especially in industrial estates and districts with low credit-deposit ratios. It also called for wider utilisation of collateral-free lending schemes such as CGTMSE, Mudra Yojana, PMEGP and Stand-Up India.
The federation stressed the need for simplified loan procedures, time-bound approvals, region-specific financial products for sectors like handicrafts, tourism and seasonal businesses, and rationalisation of MSME interest rates in line with national benchmarks.
It also called for a more rehabilitation-oriented approach towards stressed MSME accounts and sought regular institutional engagement between the bank and trade bodies, including FCIK, to address sector-specific challenges.
“The rise of J&K Bank has always been intertwined with the economic aspirations of Jammu & Kashmir. The region stood firmly with the Bank in difficult times. At this moment of historic profitability, the expectation is simple and legitimate — that the Bank must stand equally firmly with the region, particularly with its stressed business community,” the statement added.
FCIK reiterated that it considered itself a partner in the growth journey of the bank and expressed hope that the institution’s current financial strength would translate into greater sensitivity, stronger credit support and meaningful relief for businesses and entrepreneurs across Jammu and Kashmir.
