FCIK Hails J&K Bank’s Promises to Stop ‘Name & Shame’ Policy for Struggling MSMEs
FCIK is hopeful that, under Chatterjee's leadership, J&K Bank will actively collaborate with stakeholders to address the NPA challenge and foster the sustained growth of MSMEs in Jammu and Kashmir.
BN Web Desk
Srinagar, 30-01-2025: Jammu and Kashmir’s industrial sector received a significant boost as J&K Bank’s Managing Director & CEO, Amitva Chatterjee, assured business stakeholders that the controversial ‘Name and Shame’ policy would be discontinued. This commitment, aimed at providing much-needed relief to Micro, Small, and Medium Enterprises (MSMEs), was made during an extensive discussion between Chatterjee and a high-level delegation from the Federation of Chambers of Industries Kashmir (FCIK), led by its President, Shahid Kamili.
The meeting, attended by key J&K Bank officials including Executive Director Sudhir Gupta, General Managers Narjey Gupta, Rajesh Tickoo, Shabir Ahmad, and Deputy General Manager Nishikant Sharma, focused on addressing longstanding concerns about the bank’s debt recovery practices. The ‘Name and Shame’ policy, which involved publicly publishing SARFAESI notices and e-auction advertisements, had been widely criticized for damaging the reputations of borrowers, especially struggling MSMEs. Many businesses found themselves further crippled by this practice, making it difficult for them to recover or seek new financial avenues.
FCIK has been vocal in urging J&K Bank to adopt a more rehabilitative approach instead of punitive measures. The organization has consistently emphasized the importance of adhering to government-backed revival and restructuring frameworks designed to assist MSMEs facing financial distress. As per the Government of India’s 2015 Notification and the Reserve Bank of India’s 2016 Guidelines on MSME Rehabilitation, financial institutions are expected to offer revival opportunities before classifying accounts as Non-Performing Assets (NPAs). The Supreme Court of India has also upheld the principle that MSME accounts should not be hastily declared NPAs without proper due process, reinforcing the need for fair and transparent banking practices.
Responding to these concerns, Chatterjee assured that J&K Bank would no longer use SARFAESI notices or public advertisements to pressure borrowers. Instead, the bank would adopt a more supportive and solutions-driven approach, prioritizing open communication with MSMEs. He confirmed that premature NPA classification would be discontinued, and all cases would be addressed in line with RBI and government guidelines. The MD further assured that struggling businesses would be offered structured repayment plans and rehabilitation options to help them regain financial stability.
FCIK welcomed this significant shift in the bank’s policies, viewing it as a crucial step towards fostering financial inclusion and supporting entrepreneurship in Jammu and Kashmir. The Federation commended Chatterjee for his constructive approach, emphasizing that the revival of businesses should take precedence over liquidation. The decision reflects a broader vision of strengthening local industries, preventing forced closures, and ensuring that viable enterprises are given the opportunity to thrive.
To reinforce its commitment to the region’s business community, FCIK submitted a 25-page charter of demands to J&K Bank, outlining key recommendations to improve access to financial services for local entrepreneurs. This comprehensive document highlighted the need for tailored credit solutions, streamlined loan restructuring processes, and enhanced collaboration between the bank and the business sector. The Federation also proposed a three-pronged strategy to address the NPA crisis, urging J&K Bank to adopt a more structured and inclusive approach to resolving outstanding financial challenges.
The commitment from J&K Bank’s leadership signals a new era of financial support for MSMEs in Jammu and Kashmir. With a renewed focus on sustainable business growth, financial stability, and economic resilience, the decision to end the ‘Name and Shame’ policy paves the way for a more cooperative and business-friendly banking environment. Entrepreneurs and industrialists across the region now look forward to a stronger partnership with J&K Bank, hoping that this policy shift will translate into tangible benefits for businesses striving to recover and expand.
