In a strategic move to address the growing challenge of Non-Performing Assets (NPAs) and assist borrowers facing genuine repayment difficulties, J&K Bank has introduced a special one-time settlement scheme named “J&K Bank’s Special OTS for NPAs/RLAs (Karz Se Mukti).”
The scheme was formally unveiled by the bank’s Managing Director and CEO, Amitava Chatterjee, during a ceremony held at the Bank’s Corporate Headquarters. The event was attended by Executive Director Sudhir Gupta, senior officers, and General Managers.
Key Features of the “Karz Se Mukti” Scheme of J&K Bank
The newly launched scheme is designed to cater to borrowers whose NPA accounts fall under the categories of Doubtful-I, Doubtful-II, Doubtful-III, and Loss/RLAs. Here are the primary highlights:
- Eligibility Criteria:
Accounts with an outstanding principal NPA/RLA balance of up to ₹5 crore as of September 30, 2024, are eligible for this scheme. - Duration of the Scheme:
The offer is valid for three months, ending on March 31, 2025. - Approval Timeline:
Once the application is received, the sanction will be granted and communicated within seven days. - Non-Discriminatory Nature:
The scheme ensures equal opportunity for all eligible borrowers and offers attractive incentives for early repayment.
Commitment to Borrowers and Asset Quality
MD & CEO Amitava Chatterjee emphasized the bank’s dedication to supporting borrowers who face genuine financial constraints. Speaking at the launch, he stated:
“The JKB Special OTS – 2024 Scheme reflects our commitment to helping borrowers overcome their financial hurdles. With generous incentives and concessions, this scheme provides an excellent opportunity to settle outstanding liabilities.”
Chatterjee expressed confidence that the initiative would strengthen the bank’s recovery efforts and improve its asset quality while maintaining robust financial performance. He also reassured trade bodies and other stakeholders of the bank’s commitment to assisting genuinely stressed borrowers.
Read also: Top 10 Business Ideas In Jammu & Kashmir
A Steady Focus on Asset Quality Improvement
The bank’s continuous efforts to enhance asset quality have already shown remarkable results. General Manager (IAPMD) Rajesh Malla Tickoo highlighted the progress during the event, pointing out that the bank has significantly reduced its Gross NPA (GNPA) ratio:
- From nearly 9% a few years ago
- To 3.95% as of September 2024
This reduction underscores the bank’s focused approach and commitment to maintaining financial health.
Scheme Implementation and Benefits
A detailed presentation was shared with attendees at the event, outlining the features and implementation plan of the scheme. Key benefits include:
- Incentives for Early Repayment:
Borrowers are encouraged to repay the OTS amount promptly to take full advantage of the scheme. - Streamlined Approval Process:
The fast-track approval mechanism ensures borrowers face minimal delays, promoting a seamless experience. - Support for Borrowers:
The scheme provides much-needed relief for borrowers who are unable to meet repayment obligations due to genuine hardships.
Advisory for Borrowers
Eligible borrowers are urged to take immediate action to benefit from the scheme. Key steps include:
- Contact Bank Officials: Reach out to the nearest branch or the bank’s customer service for detailed information about the scheme.
- Submit Applications Promptly: Ensure all necessary documents are submitted within the three-month window.
- Plan Early Repayment: Borrowers can maximize concessions by settling dues as early as possible.
Read also: Starting a Business in Jammu & Kashmir with PMEGP Scheme: Full Details Inside
The Karz Se Mukti scheme marks a significant step by J&K Bank in addressing NPAs while supporting borrowers facing genuine financial challenges. With its well-structured incentives and streamlined processes, the initiative aims to enhance borrower confidence, improve recovery rates, and strengthen the bank’s overall financial stability.
Borrowers are encouraged to act quickly and seize this opportunity to resolve their liabilities effectively.
