Kashmir Economy in free fall: KCCI meets CEO J&K Bank, discusses concerns of distressed business community
Srinagar, May 14: The Kashmir Chamber of Commerce and Industry (KCCI) delegation, led by its President, Javid Ahmad Tenga, met with Amitava Chatterjee, Managing Director and CEO of Jammu & Kashmir Bank, at the Bank's Corporate Headquarters today to discuss the Bank's intervention to address the concerns of the distressed business community.
As per the statement, the meeting came in response to the severe economic downturn gripping Kashmir following the Pahalgam incident and subsequent escalation in India-Pakistan tensions, which has devastated the region's tourism sector and sent shockwaves across other sectors of the economy.
The KCCI delegation, which included Senior Vice President Ashiq Hussain Shangloo, Secretary General Faiz Ahmad Bakshi, and Past President Mushtaq Ahmad Wani, presented a comprehensive assessment of the crisis and proposed specific relief measures to mitigate its impact. The meeting was attended by top executives of the J&K Bank.
During the meeting, President KCCI, Javid Ahmad Tenga elaborated on the dire situation facing Kashmir's business community. The KCCI President detailed how the region's economic landscape has been utterly transformed in a matter of days, with numerous tourism establishments facing existential threats due to the complete cessation of visitor arrivals.
He emphasised that the economic fabric of Kashmir is uniquely vulnerable to such disruptions, given its heavy reliance on tourism as a primary revenue generator. He further stressed the most challenging economic environment the region has faced in recent decades, noting that even during previous periods of unrest, there remained some degree of economic activity, unlike the current complete standstill across multiple sectors. It is a testing time for all of us.
The Chamber detailed how the tourism ecosystem has been particularly devastated, with hospitality sector, restaurants, and tourist traders experiencing zero footfall following mass cancellations and advisories for tourists to vacate the region and against visiting the region. The impact extends far beyond tourism sector, affecting every individual connected to the tourism value chain, from taxi drivers to artisans, workers, daily wagers, traders, wholesale and retail. The atmosphere of despair has extended to retail, handicrafts, transport, and general trade sectors. With household incomes plummeting, the region now faces the prospect of widespread loan defaults.
The KCCI elaborated on the J&K Bank's historical role in supporting regional economic resilience during previous crises, emphasising that J&K Bank is not merely a financial institution but a cornerstone of Kashmir's economic infrastructure with responsibilities that transcend conventional banking relationships. It is like a war-like situation.
The Managing Director/CEO Amitava Chatterjee acknowledged the extraordinary circumstances confronting the business community and outlined the bank's commitment to implementing a swift and comprehensive response. The J&K Bank CEO informed that the institution's leadership has been closely monitoring economic indicators since the Pahalgam incident and has been closely taking internal assessments of portfolio exposure covering a wider canvass.
The MD assured that the JK Bank Management will address KCCI concerns and adopt an appropriate and effective policy to help larger sections of affected people.
The KCCI President thanked the MD/CEO of J&K Bank for his understanding and considerate response.
