Over 3.65 lakh accounts in the Indian union territory of Jammu and Kashmir (J&K) have benefited from the first tranche of relief released by the government under its ‘Business Revival Package’ for eligible businesses affected by the ongoing covid-19 pandemic and the restructured accounts of 2014-floods and 2016-disruption.
In a statement, the J&K bank said, “As the leading bank, J&K Bank alone has received Rs 222 crores out of the Rs 250 crores released by the government in its first tranche so far out of Rs 950 crores sanctioned for the banking sector. The bank has already passed the amount of Rs 222 crores as relief to 2.61 lakh eligible beneficiary accounts. Meanwhile, other banks operating in the region have released over Rs 27 crore to 1.04 lakh beneficiary accounts.”
The J&K government led by Lt Governor Manoj Sinha had constituted a five-member committee to work out modalities for the economic revival in the union territory and extending support to its business community.
“The committee, headed by the then Advisor to Lt Governor, K.K Sharma, comprised of Financial Commissioner (Finance Department), Commissioner Secretary Industries and Commerce, Secretary Tourism and the bank’s Chairman and MD. The committee recommended the financial relief of Rs 950 crores for banking sector as major part of the total Economic Revival Package of Rs 1350 crores. The package included 5% interest subvention for the eligible businesses affected by the ongoing Covid-19 pandemic,” the statement read.
The CMD of J&K Bank said: “The comprehensive package has been a game-changing step in various ways to revive the economy of the region. It has provided much needed relief to the business and traders community who had been pegged back by the unprecedented pandemic. For such a huge relief and revival package that has helped the entire trader and business community besides banks operating in the region, we must express our sincere gratitude to the hon’ble Lt Governor Manoj Sinha, Chief Secretary B V R Subrahmanyam and Financial Commissioner Dr A K Mehta, who are very much concerned about the economic development of the people of J&K”.
“The subvention released by the government has not only brought relief to the business community by way of hand holding them in repayment of interest charged to their accounts but also helped the bank in realization of the part amount of interest from the borrowers. The remaining instalments when released by the government will further strengthen the bank’s asset quality and bring more relief and happiness to the business community,” he added.
Moreover, after establishing Special Desks in all the zones for young entrepreneurs irrespective of gender, J&K bank has so far financed around 14000 young entrepreneurs during the recently concluded UT Government’s B2V3 program.
Appealing the young aspiring entrepreneurs to avail the loan facilities offered by J&K Bank for their entrepreneurial journey, the CMD said, “In every branch we have designated an officer to guide and facilitate aspiring entrepreneurs. Those who want to do business can visit any of our branches for finance.”