RBI clears loan restructuring in J&K, finally

 

KL News Network

Srinagar

Denied earlier, the banking regulator , RBI Thursday cleared the much sought restructuring proposal of bank accounts in Jammu & Kashmir submitted by the State Level Bankers Committee through its convener, J&K Bank ltd.

Dr Haseeb A Drabu
Dr Haseeb A Drabu

Chairman & CEO of J&K Bank Parvez Ahmad, who is also convenor of SLBC confirmed the development and announced that the special SLBC meeting to adopt the package approved by RBI has been fixed for December 13th, 2016.

Parvez further said that the customers will be briefed according after December 14 regarding the contours and general guidelines of the scheme.

Parvez Ahmad
Parvez Ahmad

Parvez while divulging the details thanked all stakeholders in general including business community, various trade and industry bodies “who stood behind the bank in its pursuit to achieve the desired objective.”

According to spokesman,  Parvez also in his special mention thanked government of Jammu and Kashmir for its unconditional support by strongly recommending the proposal to Reserve Bank of India.

Giving reason for the delayed Q2 financial results, Parvez said that “the Bank in order to ensure the approval of this package while risking its standing before concerned regulators deferred the announcement of its Q2 financial results much beyond its stipulated timeline so as to ensure respecting of concerns of  cross sections of the society towards the impairment of trade and business activity due to prevailing circumstances in the state especially the parts of valley.”

Pertinently the RBI earlier had denied the permission to restructure the loan accounts. The issue was later pursued by state’s finance minister Dr Haseeb A Drabu with union finance minister Arun Jaitley. In her meeting, Chiuef Minsiter Mehbooba Mufti also raised the issue with union finance minister./

Meanwhile the traders have welcomed the decision. The Kashmir Chamber of Commerce and Industry (Inc) in a statement conveyed their gratitude to Chief Minsiter Mehbooba Mufti, finance minister Dr Haseeb A Drabu and Chairman of J&K Bank Parvez Ahmad “for putting in their efforts to motivate  and get the approval of RBI for restructuring of stressed loan account  in the state which had resulted from the unprecedented halt of economic activity for the past five months.”

The spokesman of KCCI further said that “it will be a matter of solace and  relief for the business community of  which a large number of members  were on tenterhooks  living under the threat of turning their accounts  into NPAs.”

The KCC&I has also expressed its gratitude to the Union Finance Minister Arun Jaitly and Governor, RBI  Urjit Patel.

The Kashmir Economic Alliance, Chairman, Haji Muhammad Yasin Khan has also  welcomed the approval for to restructuring of stressed loan accounts in the state, which had resulted from complete halt of economic activities the Valley.

In a statement, Khan, who is also the President of Kashmir Traders and Manufacturers Federation said amid continued lockdown in Kashmir since July, over Rs 6000 crore loan amount had into ‘stressed loans’, while the KTMF had been seeking restructuring of the loans on priority by holding deliberations with the concerned.

He said the business fraternity welcomes the decision and the efforts of the Chairman J&K Bank Parvez Ahmed and Finance Minister Dr Haseeb Drabu is persuading the RBI to give the much-needed respite.

The JKEDA in its statement also welcomed the decision. “All the executive members hailed the decision although the full systems of the restructuring of the loans is not unveiled yet but the process has started by the virtue of which whole entrepreneurial community of the state is happy and thanked the state govt in intervening on time and saving the livelihood of thousands of the traders of the valley,” read the statement.

 

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