Srinagar, May 15: The Kashmir Traders and Manufacturers Federation (KTMF) on Wednesday held a high-level meeting with senior officials of Jammu and Kashmir Bank, raising concerns over what it termed a growing disconnect between the bank and the business community in Jammu and Kashmir.
The KTMF delegation was led by its President Mohammad Yaseen Khan, who said traders and business stakeholders increasingly feel alienated by certain banking policies and practices.
During the meeting, Khan said J&K Bank had historically been viewed as the “bank of the people” and a key institution supporting local trade and enterprise, but claimed that many customers now believe the bank is becoming disconnected from the ground realities faced by businesses in the region.
He said the issues highlighted by the federation reflected broader concerns among traders across Jammu and Kashmir rather than isolated grievances. According to KTMF, businesses associated with the bank for decades are seeking greater flexibility, understanding and support amid challenging economic conditions.
The federation also expressed concern over what it described as comparatively higher interest rates on business loans charged by J&K Bank in comparison to several nationalised and private sector banks. Khan said local traders felt they were being placed at a competitive disadvantage despite their longstanding association with the bank.
KTMF demanded the introduction of a general rider-free One Time Settlement (OTS) mechanism for financially stressed businesses and called for practical relief measures instead of what it termed procedural hurdles.
The delegation also raised complaints regarding delays in settlement of insurance claims linked to policies issued by IFFCO Tokio General Insurance. Khan alleged that policyholders were facing prolonged delays, procedural complications and harassment despite having genuine claims.
He said that since J&K Bank has an institutional association with the insurance company through a memorandum of understanding, the bank should intervene to ensure accountability and customer support.
On loan recovery practices, Khan said KTMF was not opposed to lawful recovery measures but criticised public “naming and shaming” of borrowers, stating that financial distress should not translate into social humiliation.
The federation also raised concerns regarding commitment charges on sanctioned but unutilised funds, saying such charges increased the financial burden on businesses already operating under difficult conditions.
Among other demands, KTMF sought easier access to overdraft facilities for longstanding customers, improved grievance redressal mechanisms, strengthening of staff in busy branches, simplification of loan processing and renewal systems, and decentralisation of certain banking procedures.
The delegation further proposed the creation of a Trade Consultation Board comprising business representatives and bank officials to facilitate structured quarterly interactions and improve communication between the banking sector and the business community.
Responding to the concerns, Ashutosh Sareen, Chief General Manager, Integrated Credits and Markets at J&K Bank, assured the delegation that the bank valued its relationship with the business community and recognised its role in the economic landscape of Jammu and Kashmir.
He said the concerns raised by KTMF reflected genuine ground realities and would receive serious consideration at appropriate levels within the institution.
Sareen also stated that the bank was working towards improving customer engagement, service delivery and business-friendly policies to strengthen trust and relations with customers across the region.
The meeting was attended by senior officials of J&K Bank, including divisional, zonal and cluster heads from various districts of Kashmir, along with representatives of traders’ federations from Srinagar, Pulwama, Anantnag, Bandipora and Shopian.
