“Some bad assets will be sold on discount”
Srinagar, Oct 10 (KNS): Newly appointed Chairman J&K Bank Parvez Ahmad on Monday said that this financial institution will maintain its status as second major employer in the state, after government.
He said the bank is the only expert institution that manages growth despite the situation being bad.
“We now have more than 20 years of this experience of reporting growth in turmoil so we know how to go ahead. Stressed market and declining yields will not prevent us from hiring more people. We are the second major employer in the state after the J&K government and we will continue doing what we have done,” he said while talking to media persons at JK Bank’s head office in Dalgate.
He said that prevailing situation has created cash flow disruptions, adding, “We have already approached RBI to help them offer some way-out to the clientele that has suffered because of it. It has to be approved by the state and the Union governments first and the process has been set in motion.”
“We are hiring one of the top five consultant companies to devise a strategy that will help it approach future better across sectors. It will have an element of retraining its human resource,” he said.
“Our part of the new strategy envisages conservative growth targets – of not more than 10-15% in the mainland India, and investing only in quality assets. This growth review is especially for the non-J&K geography where we have almost eight percent of our impaired assets,” he added.
“J&K being home turf where we control more than sixty percent of the market, we remain unchanged,” he said.
Other elements of the new strategy are to put more efforts in managing the stressed assets. “Some bad assets will be sold at a discount to the Asset Reconstruction Companies, some will be offered one time settlement and in certain cases, the bank will reinvest for a turnaround. These assets have gone bad in last five to seven years,” he said.
“The promoters will have to wait for next 18 months to see the best of the bank. My priority is the stability of the financial institution,” he said.
Parvez took over as the new Chairman and CEO of J&K Bank on October 6 after Mushtaq Ahmad retired. He has been an insider in the banks since he joined it as secretary of the Board. (KNS)