Seeks govt intervention to ‘protect’ borrowers affected by external crises
SRINAGAR: The Kashmir Chamber of Commerce & Industry (KCCI) has expressed profound shock and sorrow regarding the Jammu & Kashmir Bank’s recent “coercive measures” targeting account holders categorized as Non-Performing Assets (NPAs). The KCCI said that many of these borrowers have faced unprecedented challenges due to factors beyond their control, including the 2014 floods, the turmoil of 2016, the COVID-19 pandemic and subsequent events in 2019.
In a statement issued here, KCCI condemned the bank’s practice of publicly “naming and shaming” these account holders through media channels, describing it as “unacceptable”. They said such actions not only cause significant trauma to individuals but also demoralize their families, contributing to a growing sense of fear within the business community.
The statement highlighted that many affected borrowers had secured loans against sufficient collateral and have consistently communicated their willingness to repay. However, they are still awaiting the announcement of a promised special One-Time Settlement (OTS) scheme to alleviate their financial burdens.
“The delay in announcing this SPECIAL OTS Scheme has resulted in a state of fear psychosis among our business community,” said a KCCI spokesperson. “With uncertainty surrounding their financial futures, many are anxious about the possibility of facing similar punitive actions in the future if conditions change.”
The KCCI has called upon Lieutenant Governor Manoj Sinha and Chief Minister Omar Abdullah to intervene and advise the J&K Bank management to refrain from publishing the names of NPAs or issuing possession and E-auction notices until the new special OTS scheme is announced. The chamber advocates for a scheme without riders, capping, and tenure caps, in alignment with MSME norms.