“Safety is our priority, but banking services must go on”
Srinagar, May 7: Amid growing concerns about the situation in Jammu and Kashmir, J&K Bank’s Managing Director and CEO Amitava Chatterjee on Wednesday said that banking services will not get disrupted, no matter how challenging the circumstances become.
“Our top priority is the safety of our employees. But as an essential service, we are equally committed to making sure that people do not face any difficulty in accessing banking facilities”, Chatterjee said in an exclusive conversation with Kashmir News Service.
He added that the bank has already issued clear directions in this regard following a review meeting.
He said J&K Bank has a robust Standard Operating Procedure (SOP) in place as part of our Business Continuity Plan. “Even if all connectivity is lost, we will still be able to provide essential banking services,” he added.
Speaking on the potential impact on the banking sector, the MD said that while the situation may affect tourism, the bank’s direct exposure is very low. “Only 1% of our loan book is linked to tourism, including hotels and transport. So there’s no major risk of loan defaults,” he added.
He further highlighted the strong repayment culture among the people of J&K. “Even during tough times, people here try their best to repay their loans. Only a small percentage went into default in the past,” he said.
Addressing recent panic among the salaried employees, he said that the problem occurred because salaries were credited early in the month but loan EMIs were scheduled at the month-end, causing temporary defaults that affected their credit scores.
“We have now shifted the EMI dates and ensured that employees have enough liquidity in their accounts,” he said, adding that CIBIL scores will no longer suffer. “This was a one-time issue, and it’s resolved now.”
He admitted that the issue could have been addressed earlier, but assured that steps have now been taken to prevent such incidents in the future. “We understand the concerns of these employees. What matters is that we’ve taken the right step now,” he said.
The MD expressed hope that the upcoming Amarnath Yatra would also help revive tourism and bring back confidence in the local economy.–(KNS)
