Drabu meets RBI Guv, seeks structured package to rejuvenate business in JK

Drabu meets RBI Guv, seeks structured package to rejuvenate business in JK
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Raises JK Bank’s NPAs

MUMBAI: Minister for Finance, Haseeb Drabu on Friday sought intervention of RBI Governor, Dr Urjit Patel to sanction larger structured package to get back the industry into profitable business besides a plan of action for J&K Bank to end its present crises.
Finance Minister had a one-hour meeting with RBI Governor and discussed the issues of business, trade and industry loans in Jammu and Kashmir which have come under tremendous stress due to 2014 floods and 2016 public protests.
Drabu emphasized that it was not a credit-quality issue as in other parts of the country, but the non-cuisines environment that has resulted in the impairment of loans in J&K. “The state’s trade, businesses and industry need a larger structured package to get back into profitable operations and mere restructuring of loans won’t help resolve the crisis at this juncture,” he told the RBI Governor.
He also raised the issues regarding J&K Bank. Drabu said the Governor was very understanding of the issues and the distress confronting the businesses and the industry in J&K. “RBI Governor promised to personally examine all the issues including that of the J&K Bank,” he said and added that the Governor was comforted by the fact that the state government has a majority stake in J&K bank and that gives some leeway to find a creative solution to its problems.
He said once the RBI examines the full contours of the NPAs and the restructured assets, it will work out a plan of action for J&K Bank in consultation with the state government.
He also sought the intervention of the RBI Governor in improving the credit-deposit ratio of various banks in the state. He said enhanced lending in core sectors will help support the government’s efforts to rebuild J&K’s distressed economy.
The Finance Minister also discussed in detail the issue of starting innovative schemes for financing Self Help Groups (SHGs) so that the people at the grassroots level benefit from such initiatives.
Drabu thanked the RBI Governor for his highly positive approach and understanding of the issues concerning J&K.

 

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