JK Bank lowers interest rates on loans, assures food processing units of maximum support, extends electricity-bill submission date to last day of month in m-Pay

Srinagar: J&K Bank has lowered its marginal cost of funds-based lending rate (MCLR) by 0.05 percent for various tenors. Taken during the ongoing pandemic, the move to pass on the benefit of reducing cost of funds to the borrowers, is very much in line with the regulator’s directions.
The bank after reviewing the MCLR lowered the rate in all the tenors including its benchmark one-year MCLR to 7.80 pc from 7.85 pc effective from June 10, 2020. The marginal cost of funds-based lending rate (MCLR) is the minimum interest rate that a bank can lend at and is a tenor-linked internal benchmark.
Meanwhile, a delegation of representatives from food processing industry today called on the bank’s Chairman & MD R K Chhibber here at the bank’s corporate headquarters. Those present in the meeting included the bank’s Vice-President Manzoor Hussain, Special Secy. to CMD Karanjit Singh, AVPs Riyaz Ahmad Wani and Raja Zaffar Khan besides the representatives Shah-jahan (Hyacinth Agri Product), Farooq Ahmad (Dara Agro Industries) and Tanveer-ul-Haq (Fruit Inn Agro).
During the meeting, the delegation explained to the bank’s leadership that the cherry crop, having a very short shelf-life, was specifically cultivated in the valley and needed to be procured and processed well in time to prolong its shelf-life and benefit the growers. “It, they said, “would also help cherry-growers protect their huge crop production of the season.”
“Since we have not realized the receipts even of our last-year production due to disturbed condition post August 219, we are not in a position to procure fruit for processing at our units, therefore, we request the bank to provide us with liberal and timely funding at concessional terms to enable us to meet our current business requirements”, said the delegation. They asked for adequate liquidity support on easier terms for valley’s cherry processing units so that they can procure the fruit and process it to sustain their business in the current distress due to the ongoing pandemic.
Giving a patient hearing to the delegation, the CMD assured the representatives of maximum support from the bank within the regulatory guidelines.
“In this regard, we continue to encourage borrowers to avail our tailor-made product like Covid-19 Working-capital Demand Loan (CWDL) that envisages finance upto 10% of existing loan facility. Also, recently announced Guaranteed Emergency Credit Line (GECL) scheme under Atmanirbhar Bharat – that allows 20% of total outstanding loans as on 29th February, 2020 for the eligible borrowers – has been devised to take care of the liquidity crunch suffered by the businesses due to Covid-19”, the CMD said.
Notably, for the convenience of electricity consumers of the UT, the bank has extended the last date of electricity bill submission, in its Mobile-baking application m-Pay, from 25th to the last day of every month from July 2020 onwards. However, in case of the current month i.e. June 2020, the last day for the receipt of bills through M-pay would be June 29, 2020.