Excelsior Correspondent
SRINAGAR, January 1: As part of its continuous initiative to minimize Non-Performing Assets (NPAs) while also tackling the real issues faced by borrowers in loan repayment, J&K Bank today announced the launch of its program called “J&K Bank’s Special One-Time Settlement Scheme for NPAs/RLAs (Karz Se Mukti)”.
Managing Director & CEO Amitava Chatterjee officially introduced the scheme during a ceremony at the Bank’s Corporate Headquarters, attended by Executive Director Sudhir Gupta, General Managers, and other senior officials.
This Scheme is specifically designed to offer borrowers with NPA accounts classified as Doubtful-I, Doubtful-II, Doubtful-III & Loss/RLAs, with Principal NPA/RLA outstanding balances up to Rs 5 Crore as of September 30, 2024, the chance to settle their accounts.
During his address, Amitava Chatterjee stated, “The JKB Special OTS -2024 Scheme demonstrates our dedication to assist borrowers who are struggling to meet repayment obligations due to legitimate hardships. This beneficial scheme presents a unique opportunity for eligible borrowers to conclude their accounts with optimal incentives and concessions.”
He expressed optimism that this scheme would assist borrowers in resolving their financial obligations while enhancing the Bank’s NPA recovery strategies. He assured various stakeholders, including trade bodies, of the Bank’s commitment to aiding genuinely distressed borrowers while also ensuring strong financial performance.
Previously, General Manager (IAPMD) Rajesh Malla Tickoo presented an overview of the Bank’s NPA situation, noting that the significant decline in the Bank’s GNPA ratio—from nearly 9% a few years ago to 3.95% in September 2024—highlights the Bank’s focused commitment to asset quality.
A comprehensive presentation detailing the scheme’s characteristics and implementation strategy was shared with attendees during the launch.
Importantly, this scheme will be valid for three months, concluding on March 31, 2025, and is designed to be non-discretionary and non-discriminatory, providing incentives for early repayment of the OTS amount. According to the scheme’s terms, approvals will be granted and communicated within seven days of receiving the application.
