J&K Bank will give 90 days more for repayment of loans, announces bank CMD RK Chhibber

Srinagar: In a humane gesture, Jammu and Kashmir Bank on Tuesday gave some relief to its borrowers with the financial organisation's Chairman and Managing Director RK Chhibber announcing that they will get 90 days more to repay loans in view of the current situation in the Union Territory.

The decision was taken at a Special SLBC convened by J&K Bank at Srinagar to address difficulties faced by the borrowers and the banks due to disruption in business in the J&K since August 2019.

RK Chhibber in his welcome address appraised the house about the circumstances in which banks are operating in the state and briefed the meeting about the steps needed to address the regulatory concerns.

The meeting was presided over by Chief Secretary J&K Government, BVR Subrahmanyam (IAS) and attended by Financial Commissioner (Finance) Dr. Arun Kumar Mehta (IAS), Principal Secretary (Housing and Urban Development) Dheeraj Gupta (IAS), Principal Secretary (Planning and Development) Rohit Kansal (IAS), Principal Secretary (Industries and Commerce) N K Choudhary (IAS), Chairman and Managing Director J&K Bank (Convener J&K SLBC) RK Chhibber, Deputy Secretary (DFS, MoF, GoI) AK Dogra, Regional Director Reserve Bank of India, Thomas Mathew, General Manager State Bank of India Binod Kumar Mishra.

Deputy Commissioner Srinagar Shahid Iqbal Choudhary and other senior functionaries of the Government, RBI, NABARD, banks operating in the state notably SBI, PNB, Allahabad Bank, HDFC, Axis, J&K Grameen Bank, EDB, Cooperative Banks, etc, Lead District Managers, line departments, were also present on the occasion.

SLBC after reviewing the overall situation in the J&K State recommended extension of repayment period by up to ninety days besides relaxation in income recognition and asset classification norms for favourable consideration of Reserve Bank of India in addition SLBC noted the Master Circular of RBI on Relief Measures by Banks in Areas affected by Natural Calamities and also recommended the same for its applicability in the light of current situation in J&K State.

SLBC also sought the applicability of the special dispensation to all banks operating in J&K including Regional Rural Banks and Cooperative Banks in the meeting. These steps are expected to provide the much-needed relief to the borrowers as well as the banks operating in the state and will help them tide over the difficulties arising due to the current situation. However, these recommendations put forward by the SLBC are subject to the approval by the Reserve Bank of India.

The meeting concluded with vote of thanks proposed by J&K Bank.