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00:00Hello, you are watching ETV Bharat. Today I am joined by Jumu Kashmir Bank's Managing
00:05Director and Chief Executive Officer Mr. Amitabh Chatterjee. Sir, welcome to ETV Bharat. You
00:11have made a landmark and historic record yesterday by making a profit of more than 200 crores.
00:19So what are the reasons behind this journey? How did it become possible?
00:25Thank you very much. First of all, I would say that most of the credit goes to the employees
00:32of this bank who have worked very hard in spite of the difficult situations that we faced
00:37in Jumu and Kashmir last year. Secondly, we were lucky to have a product just at the beginning
00:46of the year which helped us to do quite a bit of business in Jumu and Kashmir. The product
00:52was related to agriculture and the influence of whatever happened in Jumu and Kashmir was
00:59not there on this product. The third, of course, very important decision we took was to mix
01:07the business of rest of India along with Jumu and Kashmir. The growth in Jumu and Kashmir was
01:12not that. For the first nine months it was very subdued. So we shifted our focus to our
01:19branches in the rest of India. And we did very good business from the rest of India both
01:25in the retail and the corporate, majorly in the corporate. And through this we compensated
01:31whatever business loss we had in Jumu and Kashmir. The best part was although the area faced such
01:42difficulties, it did not add to NPAs. So which again helped the bank to maintain its profit and improve its
01:50profit.
01:51In one of the interviews I have watched before coming here for a sort of little research, you said that
01:58you have
01:59expanded in Jumu, Kashmir and Ladakh. You have 876 branches in these two union territories and more than 200 in
02:09the rest of the country.
02:10So that means the local connection, emotional connection is more than in the rest of the country.
02:17Sir, but there are many people especially from the business fraternity who are seeing that despite this local connect,
02:26the lending part has become quite regulatory in the bank. So how far is it correct and what are the
02:35reasons for their apprehensions?
02:36See, the bank actually has been functioning a little bit differently from what it used to function say 10 years
02:46back or 15 years back.
02:49It is more disciplined now. We comply with the regulatory norms much more. And there were certain facilities which the
03:00bank used to give,
03:01which were not in accordance with the regulatory guidelines. So what we are trying to do is within the framework
03:08of regulations,
03:10we are trying to give as good service as possible to the customers. Now, when there is a change, there
03:18is a resistance, you know that.
03:19So the way that we used to do business has changed a little bit and that has not changed in
03:26last six months or one year.
03:28It has changed since say around 2018-19 onwards. Before that, see, you have to look at the advantages that
03:37have come out of that.
03:39The NPS which used to be 10% has come down to 2%, 2.5%. So obviously and business has
03:47grown, profit has improved. So obviously the bank is doing something very good.
03:53So I do speak to the businesses and representatives of business houses. We try to sort out things. We try
04:03to understand their difficulties also. But one thing we need to understand that we need to be within the regulatory
04:11guidelines.
04:12Jumu Kashmir is primarily an agriculture and horticulture based economy. So a lot of money comes from these two sectors
04:19plus tourism. So you said in the beginning that when the situation was not conducive after the Pahalgam attack last
04:29year,
04:29there were some policies in agriculture which brought help to bring these properties which you are speaking of today. So
04:37how is the bank helping farmers especially with the government schemes? Are there strict guidelines to take financial help or
04:47are you flexible with the farmers?
04:48Because there have been a lot of demand from farmers from last many years that the bank should waive off
04:55the KCCI loans and similar schemes which they have availed from the bank.
05:00See, if banks start waiving off all the loans, will it be able to return the depositors their deposits? No.
05:12So we lend out of the deposits and we need to protect our depositors' money.
05:18So we cannot waive off unless of course government gives us a compensation of whatever we waive off. So waiving
05:27off is out of question.
05:29Second is the discipline in agriculture in Jumu and Kashmir is far better than any other part of the country.
05:38The overall NPA in agriculture is much lower than the rest of the country.
05:42So people here they take money and use it and return it. So in general the credit discipline is very
05:50good in agriculture. And the bank over a period of time and the product I was talking about is a
05:57totally hassle free agriculture term loan product which has been very well taken by the citizen of and the farmers
06:05of Jumu and Kashmir.
06:07See, very few banks would be disbursing 3000 crores in one year in one product. We have done that. So
06:19if you ask me what kind of support the bank gives to the farmers, we do not depend on agriculture
06:26government sponsored schemes to support.
06:28This scheme I am talking about. This scheme I am talking about is a bank scheme. It is not a
06:31government sponsored scheme. And coming to the government sponsored schemes I have my experience which says that most of the
06:39government sponsored schemes are backed by subsidies or subventions.
06:44People are more interested in getting a subsidy and a subvention than doing the actual work or the activity. So
06:52that mindset has to change. Bank is ready to provide finance to anybody who is working, anybody who takes up
07:02an activity in agriculture or wherever. If he is very keen on doing the job, we are ready to support.
07:09And besides agriculture, tourism, Jumu and Kashmir is also the economy, economic flow and monetary flow because of medium and
07:18small scale industries. We don't have big industries here because of the road connecting and other reasons.
07:25So how does the bank help that sector? Because the business people say that lending has become quite regulatory for
07:32them. For example, they talk about schemes like Prime Minister's Mudra scheme, which does not require strictly regulation of the
07:38government. But their argument is that or complaints, we can say that bank seeks government to government employees for that
07:48scheme. So how far has it drew?
07:50We have changed our policies this year and we have removed all those things. In fact, taking a government employee
07:59as a guarantor was never a part of our policy. It was devised, I mean, by branch managers on their
08:06own. Because of obvious reasons, they are afraid of facing NPAs.
08:10But then we have specifically instructed the branches. But then we have specifically instructed the branches not to insist on
08:15this. Second, most of the government sponsored schemes this year were not as supportive as one scheme that is UWA.
08:28UWA did well.
08:30The third thing is MSME if you talk about in the RAM segment, that is retail, agriculture and MSME, this
08:41bank has primarily been an MSME bank. Our MSME portfolio is good, fairly large. And even this year we had
08:49a fairly decent growth in MSME.
08:51So we are focusing on MSME. So we are focusing on MSME, whatever, and you are right, there are very
08:56few big, I mean, almost negligible big industries. So we are concentrating on MSME.
09:02And especially, the day before yesterday, the new guarantee scheme for MSME that has been announced by the government, it
09:14aims at an outlay of almost 2.55 lakh crores. I see it as a very good opportunity for MSME,
09:22growth in MSME in this geography.
09:25You said in the reply that you have almost done away with those such guarantors, which the branch managers are
09:32seeking because of their own fears of NPS and then facing the wrath of the bosses in the bank. But
09:39we speak to people, we go to branches, but we feel that it is still prevalent there. Unless we have
09:47a government employee as a guarantor, it is very difficult to get a loan from the JK bank branch.
09:51What we have done is, we have specifically instructed the branches. Now, you know what, information and instruction takes some
10:01time to percolate. Some people would have received it, some people would have adopted it, some people will take some
10:07time to adopt it.
10:08It is a, I mean, almost 870 branches here who are supposed to adopt this. I am telling you, we
10:18are very clear from this office, we have directed, in case there is a loan which does not require a
10:25guarantor as per the scheme, nobody will be punished if a guarantor is not taken.
10:31This is the, I mean, this is the assurance that needs to be given. We have given that already. Sometimes
10:38it takes some more time for the information to percolate, but it will happen. This year, end of this year,
10:46we will not have this complaint.
10:49We hope so. And if we talk about expansion, Jumu Kashmir Bank is the only bank which has branches in
10:57rural parts of the area. In a way, we can say we don't have, you don't have compassion from other
11:02banks.
11:02Their expansion and superide is limited to towns and Srinagar or Jumustis. But, so obviously there might be staff shortage
11:12as well, as well, if you are planning to further expand it.
11:17So how is the bank addressing that deficiency in staff in those branches because of the expansion process?
11:23First of all, if you are talking about staff shortage, essentially we do not have a staff shortage. The mix
11:32might be a little bit uneven. But to answer your question directly, we are going to recruit people this year.
11:41And for that, we are also taking into account the branches we are planning to open. So, by the end
11:48of this year, the entire recruitment process will take some time. So, by the end of this year, the shortage
11:55in staff will not be there. We will take care of the shortages existing as well as the new branches
12:00that we intend to open.
12:03There were previously digital disruptions in the Jumo Cashmere Bank, MPA, especially during festivals. So, has the bank upgraded and
12:14overcome those digital disruptions?
12:16Do you have exact data of the downtime during this year, last year?
12:22No, I don't have exact data.
12:24No, I don't have exact data.
12:24There was no disruption during last year. We had a record number of transactions during the festival time. The bank
12:34is committed to keep the uptime to 100%. We are working very hard. Last three months, we have hardly any
12:42downtime. So, we intend to intensify those efforts more. We are going to improve it further and also improve the
12:52services.
12:52And increase the number of facilities and increase the number of facilities that are available in MPA. So, we are
12:58spending quite a lot on IT technology. We will continue to do that.
13:05In last year, you spoke at SKICC when you joined the Bank Academy and you spoke about improving the customer
13:15bank management relations. So, how long have you improved?
13:21See, we have started getting back customers who went away from us. So, that is one good sign. We have
13:28improved our journeys where we have started providing services at a lesser time. That is an improvement. We have digitized
13:38most of our services. That is an improvement. So, it doesn't happen in one day.
13:44We have also introduced this new system of branches converting into from service to sales and service models. So, all
13:59these things put together, you will see a marked difference from this year onwards.
14:04Again, I would say the transformation initiated takes some time to percolate and implemented across the bank. It will happen.
14:16So, because of this superhead and the initial remarks I made that bank has an emotional connection with the people
14:23of Jumbo and Kashmir. So, what are the measures that you are taking to keep that emotional connection intact?
14:33Because many businessmen here say that the NPAs are being published in the media that ideally should not happen because
14:42when the bank is localized, newspapers or media are localized. So, it actually brings disrepute to them.
14:50And also, we can say public shame to those people when their names are published in newspapers. So, how do
14:57you want to restore that confidence and that emotional connect?
15:01See, whoever intends to repay, we do not take any action on that person. Now, you tell me, I will
15:10repeat my statement. We lend out of the depositors money. We have a commitment to the depositors.
15:21We cannot let people not repay the depositors. We cannot let people repay the loan that they have taken. Now,
15:28having said that, as a bank, we are a very responsible bank. Whatever we do is within the guidelines prescribed
15:37by the regulators. We do not exceed that.
15:40If you look at the private sector players, they use much harsher methods of repayment or recovery. We do not
15:49do that. We keep ourselves confined to the regulatory norms regarding recovery. And we are constantly monitored by the regulators
15:58on this.
16:00So, RBI will come very heavily if we take any step, which is, you said ideally not. It is not
16:09ideally. It is what people do not want to happen. People won't want anybody's name to be published in the
16:17newspaper. We don't do it at the first instance. We do it only when repeated attempts of recovery fail.
16:24But does that help recover those loans?
16:26It helps. It helps. It helps. And you know it better than me. It is a closed society. The moment
16:33a person feels that his name is going to be shamed, he comes and repays.
16:39So, it is not a negative tactics that the bank employs. It is the last resort. When nothing else helps
16:48us in getting a recovery, only then the bank does it.
16:52Bank also does it. Bank also doesn't want its customer, its valued customer to be in any kind of discomfort.
16:58We don't want that.
16:58Sir, concluding question, because of the emotional connect and the expansion of the bank and the main financial source for
17:09Jumu and Kashmir people, for example, business community.
17:12So, have you attempted to make, be accessible to that community here, for example, stakeholders from tourism, agriculture and business
17:22and other areas, if they have some complaints or they want, you want to, their feedback or some flexibility in
17:32policies.
17:32So, how do you, as an MD, want to be accessible to them?
17:38See, I am accessible to everybody. First of all, you should also understand that I have very strong commitments throughout
17:50the day, 365 days a year.
17:54But, I still do find time whenever it is possible to meet everybody. And this is something which I enjoy
18:00doing.
18:03But, the customers should also understand it is not the MD only who is serving the bank.
18:10Right? There are so many senior officers. They should also be happy to meet a CGM of the bank or
18:19a general manager of the bank. They are always available.
18:22I have instructed all my senior functionaries to be always available to the customers.
18:27In case I am not able to meet somebody, they are always there. And the delegation authority given to them
18:35is as good as mine.
18:38But, yes, I am also always available. The only thing is, I have a time constraint. At times, I am
18:45not able to meet.
18:46For example, if somebody would have wanted to meet me today, I have not had a chance to have a
18:54cup of tea.
18:56That is how busy, at times, the schedule is. So, people should also understand that.
19:02Through this interview, what will be your last words? I mean, for this interview.
19:06To people, to your consumers, to people who take this bank very seriously.
19:11Yes, I would strongly request the citizen of Jammu and Kashmir and elsewhere, the customers, to have faith in this
19:24bank.
19:24This bank has been doing very well for the last five years.
19:29If you look at the parameters that are there for a bank, all the parameters, you will find in all
19:39the parameters the bank has improved, has been improving consistently.
19:45So, you have to have faith in this bank. Stay with this bank. If there are problems, we are going
19:50to sort it out.
19:51We are for the customers only. We are for the citizens of this place only.
19:56We always have been standing for them. We have stood by them whenever there have been difficult times.
20:04When no other bank would have supported the people of Jammu and Kashmir, we have done it.
20:10So, my appeal to everybody is, have faith, be proud of what the bank is doing. This is their bank.
20:18It is not my bank. This is not my employee's bank. It is their bank.
20:22So, have faith and continuously support the bank. You are going to be benefited most. The bank is going to
20:30be benefited next.
20:52You are going to be benefited next.
20:53You are going to be benefited next.
20:53You are going to be benefited next.
20:53You are going to be benefited next.
20:54You are going to be benefited next.
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