A delegation of PHD Chamber felicitated the executive director of J&K Bank, ArunGandotra for being promoted to the position recently.
The delegation, headed by the Chamber chairman Baldev SinghRaina and including ShowketChoudhary, Jaan Muhammad Kaul, Billal Ahmad Kawoosa,Shahijahan and IqbalFayaz Jan extended gratitude to J&K Bank forconstituting the executive level committee to mitigate the immediate as well aslong term effects of the COVID19 pandemic.
Whileinteracting with the executive director Raina said the industry, trade and commerce of Kashmir was presently facingbiggest and worst economic challenge with larger and combined effect ofre-organization of state in UT in August 2019 and COVID19 crisis.
Raina said the cash inflow of Kashmir based Industry havecompletely frozen from August 2019 and the situation was likely to stay thatway for 2020-21.
He said the small as well as the large businesses across theJ&K were confronting extreme economic challenges as the result of COVID19pandemic.
“The stimulus package if announced for country will be witheffect from March but as far as J&K is concerned we are in lockdown fromAugust 2019, so any stimulus package announced by government of India, ministryof finance and RBI should be applicable for J&K from August 2019,” he said.
The executive director and his team comprising Fayaz AhmadZargar, Vice President; ManzoorHussain, Vice President; Peer Masood Ahmad, VicePresident and Riaz Ahmad, Assistant Vice President Credit were apprised that there was pending liabilities ofinterest subvention extended to traders due to disturbances in 2016 and floodof 2014 to the tune of around Rs 130 core.
The team was told that the funding was pending from March2019 to December 2019 and needs to be released on priority as the issue standsalready discussed and agreed by financial commissioner, Arun Kumar Mehta.
Rainasaid the issue of enhancing working capital was raised in meeting with JitenderSingh, minister in the PMO, and Union finance minister and financialcommissioner of J&K who principally agreed to it amid the lockdownsituation from Augusts 2019.
“Therefore we requestthe J&K Bank to enhance the liquidity in the market viz-a-viz theenhancement of working capital limit at least up to 30% as per the guidelinesof Reserve Bank of India,” said the Chamber delegation. “It was also impressedupon that small loans extended to economically poor people up to rs 5 lakhshould be waived off keeping in view the present economic crisis. The issuealready discussed with the chairman J&K Bank during the meeting held onFebruary 19 were also taken up for follow-up action at the bank level.”
Gandotra gave patienthearing to all issues raised by the delegation and told them “we are fullyaware about the present situation in J&K and we have already taken up theseissues with RBI through the administration of J&K and are hopeful that thesame may be considered in the stimulus package to be announced by government ofIndia in nearby future.”
Gandotra said a specialscheme for education sector has been announced and was under implementationthrough J&K Bank at different levels. He said the scheme will help theschools and educational institutions as a stimulus amid COVID19 crisis.
Regarding the pending liabilities of interest subvention, hesaid, the issue has been resolved and soon there will be announcement forrelease of pending amount.
While concluding the meeting he assured the delegation thatall the issues will be redressed and assured time bound action from the Bank.