In a significant move to tackle Non-Performing Assets (NPAs) and assist borrowers facing financial difficulties, J&K Bank today launched its Special One-Time Settlement (OTS) Scheme, titled ‘J&K Bank’s Special One-Time Settlement Scheme for NPAs/RLAs (KARZ SE MUKTI)’.
The scheme was officially unveiled by the bank’s Managing Director and CEO, Amitava Chatterjee, during a ceremony held at the corporate headquarters. The event was attended by Executive Director Sudhir Gupta, General Managers, and other senior officers of the bank.
Scheme Details and Objectives
According to a statement released by the bank, the scheme is aimed at borrowers whose NPA accounts fall under the categories of Doubtful-I, Doubtful-II, Doubtful-III, and Loss/RLAs. It is applicable for accounts with outstanding principal balances of up to ₹5 crore as of September 30, 2024.
Speaking at the launch, MD & CEO Amitava Chatterjee emphasized the bank’s commitment to supporting borrowers facing genuine repayment challenges. “The JKB Special OTS-2024 Scheme reflects our dedication to helping borrowers resolve their financial difficulties. This scheme offers attractive incentives and concessions, providing eligible borrowers a golden opportunity to settle their accounts and clear liabilities,” he said.
Chatterjee also encouraged the bank’s teams to actively reach out to borrowers, educate them about the scheme’s benefits, and work collaboratively to ensure its effective implementation.
Focus on Asset Quality
Earlier in the event, General Manager (IAPMD) Rajesh Malla Tickoo provided insights into the bank’s NPA management strategy. He highlighted the significant reduction in the bank’s Gross NPA (GNPA) ratio, which dropped from nearly 9% a few years ago to 3.95% as of September 2024. He described the Special OTS scheme as a pivotal initiative to sustain this progress.
Key Features of the Scheme
- Validity Period: The scheme is open for three months, ending on March 31, 2025.
- Non-Discretionary and Non-Discriminatory: All eligible borrowers will be treated equally under the scheme.
- Incentives for Early Repayment: Borrowers are encouraged to repay the OTS amount early to avail additional benefits.
- Quick Processing: Applications will be sanctioned and communicated within seven days of submission.
A Step Towards Financial Recovery
The scheme is expected to provide relief to borrowers while further strengthening the bank’s asset quality. With its focus on resolving liabilities and reducing NPAs, J&K Bank aims to reinforce its position as a customer-centric financial institution.
Borrowers interested in availing the scheme are advised to contact their nearest J&K Bank branch for more details.
