Managing Director and Chief Executive Officer of Jammu and Kashmir Bank, Amitava Chatterjee said that the bank will undertake a major recruitment drive this year and expand its branch network in underserved areas as the bank seeks to improve customer services and strengthen its presence across the Union Territory.
The MD said the bank had delayed large-scale recruitment in recent years due to concerns over its cost-to-income ratio, but added that the institution was now in a position to hire fresh staff after improving its financial indicators.
“Our cost-to-income ratio was around 70 per cent earlier. Now it has come down to nearly 56 per cent and in the last quarter it was around 47 per cent. We are now in a position where recruitment can be done,” he said.
He said the bank would not recruit merely to increase numbers, but would assess staff requirements branch-wise before making appointments.
“You will not have this complaint this year,” he said when asked about the shortage of staff and delays in recruitment despite branch expansion plans.
The MD said recruitment would also help the bank open more branches in far-flung areas where people have been demanding banking facilities. He, however, said branch expansion would depend on viability.
“In places where there are 3,000 to 4,000 people, branches can be opened. In smaller habitations, banking services are being provided through business correspondents,” he said.
On concerns regarding digital banking services, particularly complaints about outages in the M-Pay Delight app during festivals and peak transaction periods, the MD said the bank had significantly improved system uptime over the past few months.
“For the last three months, uncontrolled downtime has almost become zero,” he said, adding that scheduled shutdowns were carried out only during late-night hours for system upgrades.
He said transaction volumes during festivals rise “50 to 100 times” compared to normal days, putting pressure on banking systems, but maintained that the bank had upgraded bandwidth and separated core banking activities from other services to improve performance.
The MD also said the bank had changed its loan policy to ease access to credit, particularly under government-backed youth schemes.
“We have removed conditions like compulsory security, guarantors or government employee guarantors from the policy,” he said, while acknowledging that implementation at the ground level may take time.
Referring to the government’s youth-focused credit initiatives, he said the bank had disbursed nearly Rs 1,000 crore under the scheme during the last financial year.
The MD said J&K Bank recorded higher profits despite economic disruptions in the Valley last year due to changes in business strategy and increased contributions from branches outside Jammu and Kashmir.
“In the first three quarters last year, business in J&K was not normal. So we focused on branches in other states,” he said.
According to him, around 60 per cent of the bank’s business contribution during the year came from operations outside Jammu and Kashmir, particularly through low-interest corporate lending.
He also attributed the bank’s performance to an agriculture-linked product launched at the beginning of the year, under which disbursements of nearly Rs 3,000 crore were made.
On concerns over rising non-performing assets (NPAs), the MD said the bank’s NPA figures had reduced despite difficult conditions in the region and credited customers for maintaining repayments.
“People did not lose patience even during difficult times,” he said.
The MD said the bank was also attempting to improve customer service culture across branches by restructuring branch operations and shifting focus from passive service delivery to customer outreach.
“Our branch should not only remain a service point but also become a sales point,” he said, adding that employees were being encouraged to approach customers proactively.
On speculation regarding a possible merger of J&K Bank with another institution, the MD ruled out any such development.
“Jammu and Kashmir Bank was and will remain. There is nothing like a merger at present,” he said.
Seeking to reassure depositors, he said the bank remained financially stable and continued to strengthen its position without requiring government financial support.
“The bank is becoming stronger day by day. People’s money is safe,” he said. (KNS)
