Srinagar, Nov 27: A delegation of the Kashmir Chamber of Commerce and Industry (KCC&I) Thursday met the Managing Director and CEO of J&K Bank, 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 Bari Brahamana Industrial Association Anil Suri and members of KCCI .
At the outset, the Chamber placed on record its appreciation for the progress and stability J&K Bank has achieved under the leadership of Chatterjee. The Bank’s strong performance, expansion in services and institutional improvements were acknowledged by the delegation.
The Chamber, however, highlighted that despite the Bank’s institutional progress, the business environment in Kashmir has been under unprecedented stress since April 2025, particularly after the Pahalgam incident, which triggered a sustained downturn in all key sectors. Tourism, trade, handicrafts, manufacturing, transport, services and MSMEs have suffered heavy setbacks, leading to shrinking revenues, declining cash flows and rising defaults. The Chamber emphasised that the situation has now reached a point where businesses urgently require compassionate and coordinated support from the banking sector.
A key issue raised was the rollout of a Special One-Time Settlement (OTS) Scheme. KCCI expressed serious concern that the absence of such a scheme, combined with ongoing enforcement actions, is deepening despair among entrepreneurs. The delegation drew particular attention to the alarming frequency of SARFAESI possession notices appearing in local newspapers almost every day, describing the trend as “deeply distressing and demoralising” for businesses already struggling for survival. The Chamber urged the MD to temporarily suspend the issuance of possession notices until the new OTS scheme is finalized.
KCCI strongly pressed for a liberal and inclusive OTS framework that incorporates flexible repayment timelines as per the MSME guidelines and without any riders.
The Chamber also raised critical issues related to exporters, noting that global uncertainties, tariff controversies , trade disruptions and delayed payments have severely affected Kashmiri exporters. KCCI stressed the need for strict, uniform and timely implementation of RBI Guidelines No. RBI/2025-26/96 dated 14 November 2025, which offers temporary relief to exporters. The MD acknowledged potential awareness gaps and immediately directed his team to ensure complete compliance across branches.
On the matter of high lending interest rates, KCCI highlighted that businesses already operating under reduced turnover are being further burdened by steep financing costs. The Chamber requested rationalisation and reduction of interest rates for stressed accounts and working capital facilities.
The MD informed the delegation that J&K Bank has already lowered interest rates in several segments and assured that further reductions are under close review in line with market conditions and regulatory provisions.
Another major concern raised was the inconsistent implementation of the CGTMSE Scheme across several J&K Bank branches. KCCI pointed out that despite being eligible for collateral-free loans under the scheme, many borrowers are still being asked to furnish collateral.
MD assured the KCCI that J&K Bank will undertake immediate staff training and ensure uniform implementation of CGTMSE so that MSMEs receive timely collateral-free credit support.
In a constructive development, the MD agreed to KCCI’s proposal to hold awareness programmes in Srinagar. The Bank will collaborate with KCCI to organise a comprehensive seminar for business customers. A separate seminar dedicated to exporters will also be conducted to address export finance, RBI guidelines, documentation requirements and sector-specific concerns.
The KCCI delegation expressed satisfaction with the MD’s patient hearing and the positive response received.
KCCI reaffirmed its commitment to working closely with J&K Bank to help revive economic activity, restore confidence and ensure timely financial support to distressed sectors.
