Economy

J&K Business Revival Package | 3.65 lakh business borrowers receive Rs 250 cr interest subvention

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Package will strengthen bank assets, help business community: J&K Bank chairman

BK News

Srinagar, Dec 12: More than 3.65 lakh business account holders (borrowers) in Jammu and Kashmir have been released the first tranche of the 5% interest subvention by the UT Government under its Business Revival Package, Jammu and Kashmir Bank said on Saturday.

As the leading bank, J&K Bank alone has received Rs 222 crore out of the Rs 250 crore released by the government in its first tranche so far out of Rs 950 crore sanctioned for the ‘banking sector’ the bank said.

“The bank has already passed the amount of Rs 222 crore 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,” read the statement issued by the J&K Bank.

Lt Governor Manoj Kumar Sinha on September 19 in a press conference has announced Rs 1350 crore package for the beleaguered business sector of Jammu and Kashmir, facing distress due to COVID19 pandemic and other disruption faced since 2014 floods.

The Business Revival Package contained a major portion, Rs 950 crore, for 5% interest subvention of all businesses loanees irrespective of being small or big borrowers for the six months of the current financial year.

“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 the realisation 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,” J&K Bank Chairman and MD, RK Chhibber, was quoted saying in the statement.

‘14,000 entrepreneurs financed’

The bank also said that 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 Back2Village-III programme. 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.”

 

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