Clampdown Cripples Commerce In J&K
The restrictions in the Kashmir Valley have hit the state’s largest Jammu & Kashmir Bank after it failed to prepare its report for the second quarter in FY20 and its stock price registered a 40% decline within six months. The state’s Chamber of Commerce estimates that the state has suffered losses of well over a billion dollars, or Rs 7,000 crore.
Internet services have been cut for over 100 days in J&K and its effect is showing on the economy. ATMs are closed and orders are not being arrived from outside. Exports from the state have been badly hit.
J&K Bank has also written to the RBI seeking permission to release the second-quarter results behind schedule. The Bank is cut off from its 75% account holders and 60% loan takers in the state whose total number is 10 million. The board meeting along with the annual general meeting (AGM) was postponed. Since the reorganization of the state on August 5, the bank's shares have fallen by 20%. Its stock has fallen over 40% in the last six months. Stocks of other state-run banks have also declined, but Jammu and Kashmir Bank has not picked up since August.
Meanwhile, Home Minister Amit Shah said in Parliament that the situation is normal in the state and business activity is functioning well.
The J&K government had 69% stake in the bank, but now after becoming a union territory, the control of the bank has come directly into the hands of the Centre. For the last ten years, the bank was running in profit but after demonetisation, the bank suffered a loss of one and a half thousand crore rupees, from which the bank has not been able to recover yet.
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J&K Bank has also written to the RBI seeking permission to release the second-quarter results behind schedule. The Bank is cut off from its 75% account holders and 60% loan takers in the state whose total number is 10 million. The board meeting along with the annual general meeting (AGM) was postponed. Since the reorganization of the state on August 5, the bank's shares have fallen by 20%. Its stock has fallen over 40% in the last six months. Stocks of other state-run banks have also declined, but Jammu and Kashmir Bank has not picked up since August.
Meanwhile, Home Minister Amit Shah said in Parliament that the situation is normal in the state and business activity is functioning well.
The J&K government had 69% stake in the bank, but now after becoming a union territory, the control of the bank has come directly into the hands of the Centre. For the last ten years, the bank was running in profit but after demonetisation, the bank suffered a loss of one and a half thousand crore rupees, from which the bank has not been able to recover yet.
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