J&K Bank to devise framework to provide relief to borrowers

Taking forward its initiative to develop sector-specific resolution roadmaps for pandemic-hit businesses and trade sectors in the UT, J&K Bank’s Executive Level Credit Management Committee held an in-depth deliberation with the governing body of J&K Processing and Integrated Cold Chain Association (JKPICCA) and representatives of fruit growers and traders community here at its corporate headquarters.

According to statement, Executive Presidents (EPs) Arun Gandotra and Ghulam Nabi Teli chaired the meeting attended by Vice Presidents Fayaz Ahmad Zargar, Peer Masood Ahmad, Manzoor Hussain, Tasaduq Ahmad Dar, Tabassum Nazir, Fayaz Ahmad Bhat and Assistant Vice President Riyaz Ahmad Wani.

While President JKPICCA Majid Wafai led the delegation comprising of General Secretary Faisal Burza and Executive Members Arif Mir, Khurram Mir and Ehsan Javid. Besides, members of Kashmir Chamber of Horticulture and Agriculture, Shahjahan Khan, Irshad Bhat and Tanveer-Ul-Haq led by the chambers President Hakim Khalid were also present on the occasion.

The statement said the representatives asserted that it was only due to the bank’s handholding that the cold storage industry flourished in the UT. They, however, underscored that the industry was deeply affected and facing turbulent times due to the Covid-19 pandemic.

“We are facing extremely difficult times. The demand has gone down drastically, there is pressure on the price and problems on account of distribution and transport of the products”, the representatives said, adding that there was a need to find a “long-term solution” to the crisis.

Putting forth their demand, the representatives requested the bank to devise special loan schemes at reduced interest rates to address the liquidity issues faced by the industry besides providing additional funds to the extent of 30 to 40 pc of fund based working Capital limits and a moratorium of at least 3 years on repayment of EMIs.

The statement said they also pushed for quick realization of subsidies especially in case of the High Density Apple Plantation Scheme and solicited the bank’s intervention in approach to the appropriate authorities regarding provision of interest subvention and extension of moratorium in repayment.

Both the EPs thanked the representatives for their feedback and suggestions while assuring full support of the bank to the industry. They also said that the bank shall devise a framework within the regulatory guidelines to provide relief to the borrowers.

Notably, the interaction is a part of the ongoing series of meetings held with the representatives of various sectorsto devise a framework that is beneficial to both the bank and the businesses while dealing with the impact of Covid-19 pandemic in the UT.

The statement said the directions were issued by the board of directors of the bank headed by Chairman and Managing Director Rajesh Kumar Chhibber.