PHDCCI hails J&K Bank’s rehabilitation package, urges other banks to follow

Ziraat Times News Desk

SRINAGAR: The PHD Chamber of Commerce and Industry (PHDCCI) has welcomed the “Special Rehabilitation Package” announced by J&K Bank for businesses in Jammu & Kashmir, calling it a timely lifeline for enterprises struggling with financial stress.

The package, which follows sustained advocacy by PHDCCI and stakeholders from both the Kashmir and Jammu divisions—particularly efforts led by Rakesh Wazir, Chair of PHDCCI Jammu region—offers a series of relief measures to help businesses stabilize and recover.

According to the bank’s announcement, the package includes:

• Extension of repayment periods for existing term loans, with or without a moratorium.

• Working capital relief through conversion of accrued interest during the moratorium period.

• Support for term loans, with accrued interest converted into a Funded Interest Term Loan (FITL).

• Additional credit facilities, including a Working Capital Term Loan (WCTL) up to 15% of existing limits.

A key feature of the scheme is a 12-month moratorium from April 1, 2025, to March 31, 2026, during which accrued interest can be converted into a FITL, easing cash flow pressure for businesses.

In a statement, Vicky Shaw, Chairman of PHDCCI, described the move as “a highly commendable and timely step.” He added:

“It demonstrates a proactive approach to addressing the genuine concerns of the business community in J&K. This package, which aligns with the demands put forth by PHDCCI and all stakeholders, will serve as a lifeline for many enterprises, enabling them to navigate challenges, stabilize operations, and contribute to the region’s economic growth.”

Shaw also urged other financial institutions to follow J&K Bank’s lead.

“While we applaud J&K Bank for its leadership, the economic revival of Jammu & Kashmir requires a concerted effort from the entire banking sector. We request the Government and regulatory authorities to impress upon other banks operating in the region to introduce similar rehabilitation measures. A consistent and uniform approach across all financial institutions is crucial for achieving widespread impact and ensuring a level playing field for all businesses,” he said.