SRINAGAR: Kashmir’s industry body, the Federation of Chambers of Industries Kashmir (FCIK) has announced plans to initiate a widespread protest campaign across the Valley against what it terms the exploitative and intimidating practices of J&K Bank. The campaign aims to highlight the harassment faced by Micro, Small, and Medium Enterprises (MSMEs) and other borrowers who are struggling to meet debt obligations due to circumstances beyond their control.
FCIK leaders, including representatives from industrial estates, district sectors, and various business activities, have condemned the bank’s actions, such as issuing SARFAESI notices, possession and e-auction notices, and seeking eviction orders from courts. These measures, they claim, have led to attempts to forcibly displace borrowers from their homes and business premises.
The protest will include peaceful sit-ins at industrial estates and district headquarters, press conferences, and appeals to the local and union governments, as well as the Reserve Bank of India, to intervene.
Industry leaders have criticised the bank for classifying borrowers’ accounts as Non-Performing Assets (NPAs) after three months of missed payments without considering the underlying reasons, such as delayed payments from customers, including government departments. They argue that the bank has consistently overlooked the challenges unique to businesses in Kashmir, which have faced decades of instability and natural calamities, including the 2014 floods.
Concerns have also been raised about the bank’s practice of charging interest rates 4–5 per cent higher than those in other states, citing the Valley’s volatile situation as justification. Additionally, the bank has been accused of demanding excessive layers of security beyond primary collateral, further burdening local enterprises.
Participants expressed dismay over J&K Bank’s prioritisation of unsecured loans to external borrowers, resulting in significant losses, including Rs 750 crores in a single month from faulty credit ratings of NBFCs. At the same time, the bank has been slow to extend loans under the Government of India’s collateral-free schemes, hindering access to much-needed financial assistance for local businesses.
The FCIK Advisory Committee has assured members that the matter will be raised in an upcoming meeting with the Deputy Chief Minister, with the goal of securing immediate government intervention. Leaders have vowed to continue their protest until the issues surrounding NPAs are resolved and borrowers receive fair treatment. -(KL)
