KCCI slams ‘name and shame’ policy against NPAs

Srinagar, Oct 22: The Kashmir Chamber of Commerce and Industry (KCCI) has launched a scathing criticism against Jammu and Kashmir Bank’s decision to publicly name defaulting account holders, describing it as an unprecedented coercive measure that traumatizes the business community.

In a strongly-worded statement issued today, KCCI emphasised that the current non-performing assets (NPAs) are a direct result of multiple crises that have battered the region’s economy over the past decade. The chamber pointed to the devastating floods of 2014, civil unrest in 2016, the events of 2019, and the global COVID-19 pandemic as major factors that pushed many businesses into financial distress.

The business body expressed particular concern over the bank’s strategy of publicly naming defaulters through media channels. This approach, according to KCCI, not only causes severe psychological trauma to the account holders but also demoralizes their families and creates ripple effects throughout the business community.

“These borrowers secured their loans against sufficient collateral and have consistently communicated their willingness to repay,” a KCCI spokesperson said. The chamber revealed that many affected businesses are simply waiting for the implementation of a promised Special One Time Settlement (OTS) Scheme, which remains unannounced.

The continuing uncertainty, combined with the bank’s aggressive recovery tactics, has reportedly created a widespread fear psychosis within Kashmir’s business community. Many entrepreneurs are now apprehensive about their future, fearing similar treatment should circumstances beyond their control affect their businesses.

In response to the situation, KCCI has directly appealed to Lieutenant Governor Manoj Sinha and Chief Minister Omar Abdullah to intervene. The business body is seeking immediate suspension of the publication of NPA names, possession notices, and e-auction notices until a new special OTS scheme is announced. They emphasise that this scheme should align with MSME norms and operate without restrictive riders, capping, or tenure limitations.

The chamber warned that the current aggressive approach could have devastating long-term consequences for Kashmir’s economic ecosystem, potentially deterring future entrepreneurship and investment in the region. KCCI stressed that a more compassionate and understanding approach is necessary, given the extraordinary circumstances that have affected the business community over the past decade.