SRINAGAR (KIMS) — A delegation of the Kashmir Chamber of Commerce and Industry (KCC&I) on Thursday met J&K Bank Managing Director and CEO Amitava Chatterjee at the Bank’s Corporate Headquarters in Jammu.
The delegation was led by KCCI President Javid Ahmad Tenga and included Executive Committee members Irfan Ahmad Guju, Afaq Sarwar, former President of Bari Brahmana Industrial Association Anil Suri, and other KCCI members.
At the outset, the Chamber expressed appreciation for the progress and stability J&K Bank has achieved under Mr. Chatterjee’s leadership. The Bank’s performance, service expansion, and institutional strengthening were acknowledged by the delegation.
However, the Chamber pointed out that despite the Bank’s institutional progress, the business environment in Kashmir has been under severe stress since April 2025, particularly after the Pahalgam incident, which triggered a prolonged downturn across key sectors. Tourism, trade, handicrafts, manufacturing, transport, services, and MSMEs have all suffered major setbacks, resulting in shrinking revenues, declining cash flows, and rising defaults.
The Chamber stressed that businesses now urgently require compassionate and coordinated support from the banking sector.
A major concern raised was the rollout of a Special One-Time Settlement (OTS) Scheme.
KCCI expressed deep worry that the absence of such a scheme—combined with ongoing enforcement actions—is worsening despair among entrepreneurs. The delegation highlighted the alarming frequency of SARFAESI possession notices appearing in local newspapers, calling it “deeply distressing and demoralising” for already struggling businesses. The Chamber urged the MD to temporarily suspend possession notices until the new OTS scheme is finalised.
KCCI strongly advocated for a liberal and inclusive OTS framework with flexible repayment timelines, in line with MSME guidelines, and free from restrictive conditions.
The Chamber also raised issues faced by exporters, stating that global uncertainties, tariff disputes, trade disruptions, and delayed payments have severely affected Kashmiri export units.
KCCI emphasised the need for strict and uniform implementation of RBI Guidelines No. RBI/2025-26/96 (dated 14 November 2025), which provide temporary relief to exporters. Acknowledging possible awareness gaps, the MD directed his team to ensure complete compliance across all branches.
On interest rates, KCCI pointed out that businesses operating with reduced turnover are further burdened by high borrowing costs.
The Chamber sought rationalisation and reduction of lending rates for stressed accounts and working capital facilities.
The MD informed the delegation that J&K Bank has already lowered rates in several segments and assured that further reductions are under active review in line with market conditions.
Another concern was the inconsistent implementation of the CGTMSE Scheme.
KCCI noted that many eligible borrowers seeking collateral-free loans are still being asked to provide collateral. The MD assured immediate staff training and uniform implementation so that MSMEs receive timely collateral-free credit.
In a positive development, the MD agreed to KCCI’s proposal to hold awareness programmes in Srinagar.
J&K Bank will collaborate with KCCI to organise a general seminar for business customers, along with a separate seminar exclusively for exporters focusing on export finance, RBI guidelines, documentation, and sector-specific issues.
The KCCI delegation expressed satisfaction with the MD’s patient hearing and the constructive response.
KCCI reaffirmed its commitment to working closely with J&K Bank to help revive economic activity, restore business confidence, and ensure timely financial support to distressed sectors. — (KIMS)