November 2016 News

J&K Bank To Restructure Loans

21 November 2016
The Tribune (Chandigarh)

Srinagar: The Chairman of J&K Bank today said the bank would extend system-driven flexibility in restructuring of loans in the state. Stating that people of the state along with their trade and economy 'remain our fundamental strength', J&K Bank Chairman and CEO Parvez Ahmed today said the bank remained committed to supporting them and their development in every possible way within the prescribed framework of regulations. Parvez made this statement during a meeting with the delegation of the Kashmir Traders and Manufacturers Federation (KTMF) here. The statement about restructuring of the loans comes even as the Reserve Bank of India has already rejected the proposal for restructuring of stressed loans, sent by the state-level bankers committee recently. 'We are quite aware of our role and responsibilities as the leader bank of this region and are trying our best to meet not only people's needs, but also expectations. And the best example to support our claim is the way we have smoothly dealt with the Central government's massive-ever demonetisation process across the state when the entire country is still reeling under its effects,' an official statement quoted the bank chairman as having told the traders delegation. 'Since we are more focused this time on the issue of restructuring, recruitment list will be finalised soon. We shall rationalise the staff according to the needs on the ground and a review of charges would also be taken soon. Steps will soon be taken for commissioning of ATMs but only after proper survey of the places mentioned for such installations,' Parvez said. Regarding the hike in insurance premiums, he said, 'Although premiums are related to the risks involved, which have grown considerably after floods and current unrest, but we will certainly take up the issue with our insurance partners and press for fairness and better rationalisation.' 'If needed, we can bring in an element of competition in this business for servicing the businesses in the best possible way,' he promised. The traders' delegation had pleaded for restructuring of loan accounts as the last five months have brought all the businesses in the Valley to a grinding halt. 'Although we have already taken up the case of loan restructuring with the state government and are engaged with other stakeholders on the issue, we have requested for the interest waiver tothe relevant authorities also,' a trade leader told the JK Bank chairman.