Calls for renewed commitment to J&K region
SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has congratulated Jammu & Kashmir Bank on posting its highest-ever annual profit of Rs 2,363.47 crores for FY 2025–26, along with strong growth in business, deposits, advances, and improved asset quality.
In a statement, FCIK said the achievement reflects sound management, operational discipline, and institutional resilience, and complimented the Bank’s Managing Director & CEO Amitava Chatterjee, Board of Directors, and the entire staff for delivering year on year record profits.
FCIK, however, observed that the Bank’s success is inseparably linked with the enduring trust and economic participation of the people of Jammu & Kashmir.
The Chamber noted that households, salaried employees, traders, businesses, and institutions in the region have over decades provided J&K Bank with a stable and exceptionally low-cost deposit base, reflected in one of the strongest CASA profiles in the country.
“On the credit side too, the overwhelming part of the Bank’s earnings has historically come from borrowers within the region — from salaried employees to traders, growers and MSMEs — whose borrowings are largely secured by tangible collateral”, stated FCIK, adding that the borrowers in Jammu & Kashmir have also paid relatively higher rates of interest than similarly placed borrowers elsewhere in the country.
“While we wholeheartedly share the pride in the Bank’s historic performance, it must also be recognized that this success has been built substantially on the strength and sacrifices of the people and business community of Jammu & Kashmir, who have continued to withstand prolonged disturbances, market disruptions, natural calamities, and other external shocks,” FCIK said.
In this backdrop, FCIK urged J&K Bank to now give the region its due. It said the Bank must preserve and deepen its long-standing relationship with local depositors and borrowers at a time when competing banks are aggressively trying to capture the customer base nurtured by J&K Bank over decades.
The Chamber said the most meaningful and immediate step would be the announcement of a Special One-Time Settlement policy for borrowers whose accounts turned stressed not because of willful default, but because of circumstances beyond their control, including prolonged disturbances, shutdowns, natural disasters, policy disruptions, and delayed payments.
“Till such a policy is rolled out, all coercive actions may, as a gesture of goodwill, be kept in abeyance,” FCIK requested. Such a step, the Chamber said, would send a clear message that the Bank remains committed to rehabilitation alongside profitability.
FCIK also urged J&K Bank to translate its strong financial position into greater support for the productive sectors of the region by ensuring practical compliance with Government of India and Reserve Bank of India guidelines on MSME restructuring and NPA classification.
It called for stronger credit flow to MSMEs and priority sectors, especially in industrial estates and districts with weak credit-deposit ratios, and wider use of collateral-free lending schemes such as CGTMSE, Mudra Yojana, PMEGP, and Stand-Up India.
It further called for simpler loan procedures, time-bound approvals, region-sensitive financial products for handicrafts, tourism, seasonal and long-gestation enterprises, and rationalization of MSME interest rates in line with national benchmarks, review of collateral and mortgage practices, and a rehabilitation-oriented approach to stressed MSME accounts.
FCIK also emphasized the need for regular institutional engagement between the Bank and industry bodies, including FCIK, so that sector-specific challenges can be addressed through practical and timely policy responses.
“The rise of J&K Bank has always been intertwined with the economic aspirations of Jammu & Kashmir. The region stood firmly with the Bank in difficult times. At this moment of historic profitability, the expectation is simple and legitimate — that the Bank must stand equally firmly with the region, particularly with its stressed business community,” the statement added.
FCIK reiterated that it considers itself a partner in the growth journey of J&K Bank and expressed hope that the Bank’s present strength will translate into greater sensitivity, stronger credit support, and meaningful relief for the people and enterprises of Jammu & Kashmir.