SRINAGAR: In a landmark decision aimed at supporting the recovery of Micro, Small, and Medium Enterprises (MSMEs) in Jammu and Kashmir, J&K Bank’s Managing Director & CEO, Amitva Chatterjee has assured the business community that the bank will discontinue its controversial “Name and Shame” policy, the Federation of Chambers of Industries Kashmir (FCIK) said.
This announcement came during a high-level meeting with a delegation from the FCIK, led by its President, Shahid Kamili, the Chamber said in a statement issued here.
The FCIK said the “Name and Shame” policy, which involved publishing SARFAESI notices and e-auction advertisements in newspapers to publicly identify borrowers struggling with loan repayments, has long been criticized for damaging the reputations of businesses and individuals. It said this practice disproportionately affected MSMEs, many of which are already grappling with financial challenges due to external factors beyond their control.
During the marathon meeting, Chatterjee assured the FCIK delegation that the bank would cease the public shaming of borrowers and halt the premature classification of MSME accounts as Non-Performing Assets (NPAs), the statement said, adding that the bank would adhere to the Government of India’s 2015 Notification and the Reserve Bank of India’s 2016 Guidelines on MSME Rehabilitation, which advocate for revival and restructuring mechanisms over liquidation.
“We are committed to supporting the MSME sector and ensuring that viable businesses are given a fair chance to recover,” Chatterjee stated, according to FCIK statement, adding, “The bank will prioritize constructive dialogue with borrowers and offer restructuring options to help them regain financial stability.”
The FCIK delegation, which included key industry representatives, welcomed the bank’s decision, describing it as a significant step toward fostering a more supportive financial environment for MSMEs. Shahid Kamili praised Chatterjee’s cooperative approach, stating, “This marks a crucial turning point in the bank’s relationship with the business community. We are optimistic that this shift will help revive struggling enterprises and strengthen the region’s economy.”
In addition to addressing the “Name and Shame” policy, FCIK presented a comprehensive 25-page charter of demands to the bank. The document outlined key measures to streamline credit access, resolve the NPA crisis, and support the growth of local businesses. The delegation proposed a three-pronged strategy to address the challenges faced by MSMEs, urging the bank to adopt a more inclusive and structured approach to debt resolution.
The meeting was attended by J&K Bank’s Executive Director Sudhir Gupta, General Managers Narjey Gupta, Rajesh Tickoo, Shabir Ahmad, Deputy General Manager Nishikant Sharma, and other senior officials.