Srinagar, Jul 20 (KNS): As the Jammu and Kashmir Bank is grappling with the recovery of crores of loans from defaulters and Non Performing Assets, the government said that it is making serious efforts to recover loans from the defaulters.
The JK Bank has bad loans and NPAs in crores which has impacted its financial working. To recover these loans, the Bank formed a team. However, sources said that the Bank’s team has not made any significant headway to recover these loans.
Sources said that if the back does not recover the loans, then the bank will sink in financial crisis and RBI might completely take it over.
Finance Minister Dr Haseeb Drabu told KNS that efforts are on to recover the loans. He said adding that the Bank is facing financial problems because of the bad loans and NPAs.
After he took over as the Chairman of the Bank, Parvez Ahmed said the bank will focus on the recovery of bad loans and have formulated a strategy for NPA recovery.Click Here To Follow Our WhatsApp Channel
The bank is facing a major challenge of soaring NPAs. As of March 2016, its gross NPAs soared to Rs 4,368.62 crore. J&K Bank's NPA is the range of 9.3 per cent on the basis of numbers as on June 30, 2016.
"The NPAs are in the range of around 10 per cent coupled with the stressed assets portfolio which is around 10 per cent more, that takes it to 20 per cent of our portfolio," Ahmad had said in a press conference in Jammu.
"We will cleanup, consolidate and pay dividends to the stake holders. NPA is very much manageable. We have devised a policy to take care of this particular situation. With the global recovery system put in place, we are comfortably to bring down NPA to a desired level," Ahmed said. (KNS)