FCIK discusses Industrial Sector with MD J&K Bank


Srinagar April 16:(KNS)    Federation Chamber of Industries (FCIK) team had a marathon meeting with Managing Director & CEO Baldev Prakash along with Mr Rais Maqbool, Syed Shujhat Andrabi &  Shafat husain Ahmad and other officials were also present in the meeting. The meeting was followed by Iftiyar at J&K Bank Head Quarter.

FCIK team was led by Mr Shahid Kamili President includes Mr Ovees Qadir Jamie Mr. Nisar Ahmad, Mr Zubair Bhat, Mr. Afaq Qadri, Mr Imran Murtaza and Mohd Imran.

FCIK President Shahid Kamli put forth charter of demands which includes Reframing of One Time Settlement Scheme (JKB Special OTS 2021). Income recognition & Asset classification D3 eligibility should be changed to D1. The scheme should be applicable to all accounts below 15 lac NPA outstanding. The upper limit should be 50 crores for all MSME’s units to be covered With one year repayment period.

The bank should frame a committee for revival & rehabilitation of the industrial sector and should identify the potentially viable units which can be rehabilitated along with FCIK being the member of the committte. The bank should also provide exit route to those units which can’t be rehabilitee with friendly exit policy.

Secretary General Ovees Qadir Jamie said the due payments to the enterprises are not being made in time resulting in huge losses incurred by the unit holders besides undermining their reputation with creditors and bankers. The should asses the borrowers on pending liabilities and support them with the additional funding till the time their payments get released otherwise they will turn NPA without their fault.

Mortgage of Proprietary Land as per Sec 133-H of Land revenue Act should be accepted. As number of entrepreneurs are held up with the bank for obtaining loan facility against the said mortgage.

The exploitation by the insurance companies has made units to suffer to get the best insurance and the cover as the same insurance cover is having fluctuating rate with the Insurance companies. The bank should develop a product for MSME’s which have to insure their stocks & Mortgage properties. This should be created as facility rather than as an income generation. The business interruptions on account of curfews, strikes, natural calamities etc cause huge losses to the enterprises. We request to take up the matter & to develop a product with the reputed insurance companies of the country.

The enterprises have dried up their working capital by paying off towards their establishment cost during the lockdowns and therefore additional funding of 10% should be provided on the existing collaterals so the working capital facility of all enterprises may be enhanced irrespective of heir classifications as regular, stressed or else. The Scheme should be framed to provide immediate OD and the powers of same should be with Branch head.

Jamie said that the Repo Linked Interest Rates (RLLR) should be implied to all accounts who have restructured in Pandemic & previously. As on date the implication of RLLR is only on GECL accounts not on other accounts of borrower of same entity. The burden on the enterprises are much more to pay the interest & instalments of the multiple accounts. Further, as the repayment period for instalments is coming closer, so an extension for the same should be granted.

The banks should be directed that the collateral Mortgage should not be valued below the Govt Circle value as it is the benchmark index for valuation of property issued by the Revenue Department. Market Value may be accepted as valuation rather than distress or realizable value. The Land Lock property should be accepted as mortgage and accept Agriculture Land as mortgage also. One Valuation report to be accepted for MSME upto 25 Crores. 

The banks should implement the Credit Guarantee fund Scheme in Letter & Spirit as in majority cases it has been observed banks not implementing the Scheme and asking for collateral Security.

The banks should defer the rating of accounts for 2 years as there has been multiple restructuring of accounts so till the time business environment will stabilize the rating should be deferred. Micro & Small Enterprises should be exempted formatting.

Support to Existing & Standard borrowers to safeguard them by exemption in Renewal Charges on accounts may be exempted for 2 years. Margin on stocks & book debts may be reduced to 15%. Unsecured Loans on Balance sheet may be treated as capital and conversion into capital may be deferred as of now.(KNS)

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