State Co-operative Bank signs MoU with city’s 6 trade federations

State Co-operative Bank signs MoU with city’s 6 trade federations

Aims is to provide hassle free credit: Bank Chairman

SRINAGAR: J&K State Cooperative Bank has entered into an agreement with Madina Chowk Federation, Maisuma Bazar Federation, Red Cross Road Federation, Bazar Committee Koker Bazar, Nai Sarak Traders Association and Boulevard Business Association. The aim of the agreement is to channelise the credit flow to the members of the associations without any hassle and undue delay.

In this regard, a memorandum of understanding (MoU) was signed between the Bank and the associations in an event organised at the Bank’s corporate headquarters.

Chairman of the Bank M S Dar was the chief guest on the occasion and the function was attended by Additional Managing Director of the Bank Shabana Buchh, General Manager Abdul Rashid Mir and other dignitaries, a statement issued by the Bank said.

The MoU was signed by the Managing Director of the Bank M Lateif and the President Madina Chowk Federation Sajjad Hussain Gull, General Secretary Maisuma Bazar Federation, Nissar Shahdar, President Red Cross Road Federation, Abdul Majeed Bhat, General Secretary Boulevard Business Association, Iqbal Amin, Vice President Bazar Committee Koker Bazar, Khalid Ahmad Baba and President Nai Sarak Traders Association, Rouf Malik.

The associations together have more than 15000 members and bank aims to cover maximum members.

Speaking on the occasion, Chairman of the Bank M S Dar said the agreement was arrived at after a series of representations from and meetings, with the office bearers of the associations.

Dar said the primary aim of the agreement is to provide hassle free credit to people involved in trade at micro as well as macro level. “It is a general observation that people involved in trade, service and manufacturing find it difficult to get access to the credit when needed. It is either due to less understanding of the credit mechanism or unfortunately, in some cases, inconsiderate approach and attitude of the banks,” he said.

The agreement aims to clear such stumbling blocks and encourage entrepreneurial activities, Dar said adding that through this agreement, the Bank will be able to connect to a vast community of traders and help them make progress in their business activities.

He said under the agreement, capital in the form of revolving and term loans will be provided to the members of the association with minimum documentation, relaxed norms and a special rebate in interest rate.

In the near future, several other products will be tailored as per the requirements of the members, Dar said adding that the very purpose for existence of cooperative credit institutions is to seek socio-economic upliftment at grassroots levels and infuse credit in the trading community. The MoU is a step in this direction, he said.

Managing Director of the Bank, M Lateif Said the Bank is planning to enter into such arrangements with other traders’ bodies and create a healthy lending atmosphere whereby businessmen will have a say in the formulation of the banking products.

He said the MoU is not a mere instrument of streamlining the credit flow but the Bank aims to broaden its role and become a partner in the productive economic activities and financial ease and well-being of the society as a whole.

He applauded the role of the office bearers of the associations for coming forward and offering to work with J&K State Cooperative Bank.