J&K Bank to strive hard to sustain inclusive growth
Proposes restructuring, rescheduling loans recovery
Jammu Tawi, October 18 : The largest state promoted Jammu and Kashmir Bank is all set to restructure and reschedule recovery of its loan in view of the current turmoil in Kashmir valley. A proposal to this effect has been sent to the Reserve Bank of India for its approval, this was disclosed by the Chairman and CEO of J&K Bank Mr. Parvez Ahmed while addressing a press conference here.
Passing through a tough time, the J&K Bank despite being patronized by the state government in maintaining its monopoly is likely to give reasons to the investors to avoid the stock after the bank declared its intention not to pay dividend for next two years.
Chairman said the bank was conscious of the losses suffered by the trade, tourism and other businesses in Kashmir during the last four months, complicating the financial situation in J&K.
The Bank will soon be establishing two business units (branches) exclusively for women, one each in Srinagar and Jammu cities. These branches would be run only by women staff of the bank. “Besides, we will be tailoring and introducing specific schemes for women with a special focus to promote and nurture entrepreneurship….. The loans offered to women shall be at concessional rates of interest”, informed the Chairman of Bank addressing media here.
Stating that encouragement of the local industry will remain one of his top priorities, Chairman said that Bank will be supporting the industrial sector through effective delivery mechanism and valuable inputs from the industrialists.
On recovering non-performing accounts (NPA), which is close to 10 per cent at the moment, the chairman said the Bank had come up with a new strategy to recover it to improve its balance sheet.
“The plan includes legal recourse, one-time settlements and Asset Reconstruction Company to improve NPA recovery. Our focus is consolidation and recovery and we are moving towards it,” Parvez said.
He said specific products for pilgrims from across the country coming for the Amarnath yatra and Mata Vaishno Devi pilgrimage would be devised on priority.
“Our focus from now on will be future. We will concentrate on developmental initiatives, potential business areas, social banking, micro-financing to streamline financing structure and customer service upgrade,” the chairman said.
Laying emphasis on customer service, Chairman announced the establishing of Customer Grievances Redressal Cell in Chairman' Secretariat Jammu with immediate effect.
Executive presidents Vagish Chander and SS Sehgal and senior president Abdul Rashid were also present in the press meet.
Shares of Jammu & Kashmir Bank crashed as much as 18 per cent on Thursday before closing at Rs 74.8, down 14.12 per cent.
The bank has paid dividend for the past 16 consecutive years, 500 per cent each in FY13 and FY14, 210 per cent in FY15 and 175 per cent in FY16.
Analysts recommend avoiding the stock even post correction as outlook remains challenging in the short to mid-term mainly on core performance.
