Minimal Direct Impact on J&K Bank from Pahalgam Attack

The recent terror attack in Pahalgam, which resulted in the tragic loss of 26 lives, has raised concerns about its economic repercussions. However, Amitava Chatterjee, MD & CEO of Jammu and Kashmir Bank, has reassured stakeholders that the bank's exposure to the tourism sector is minimal, accounting for only one per cent of its total portfolio.

Historical Resilience in the Face of Adversity

Chatterjee highlighted the region's historical resilience, noting that past incidents have not significantly impacted the bank's performance. "The highest level of stress we've seen was 14 per cent, which reduced to two to three per cent within a few years," he stated, underscoring the sector's inherent strength.

Looking Ahead: Monitoring Indirect Effects

While the direct impact on the bank is expected to be nominal, Chatterjee acknowledged the need to monitor potential indirect effects on the broader economy of Jammu and Kashmir. He praised the local populace's strong repayment culture, which has kept non-performing assets (NPAs) at low levels.

The bank reported an 8 per cent decline in net profit for the January-March quarter of 2024-25, yet showed a 10 per cent increase sequentially from the previous quarter, demonstrating its ongoing stability.