14th March 2009
Srinagar
JK Bank announces interest relief scheme for local exporters.
Extending the ambit of its relief and rehabilitation package to exporters of the state, J&K Bank has decided to provide interest relief to the local exporters in the wake of meltdown in global markets. The bank will be providing additional interest rate concessions up to 100 basis points across the board to the export advances granted by the bank in the State.
This was announced by Dr Haseeb A Drabu, Chairman and Chief Executive of the Bank, at a workshop for exporters from Kashmir valley organized here by J & K Bank in collaboration with Export Credit Guarantee Corporation of India on 12 March 2009. Large number of leading exporters from the state participated in the workshop.
Addressing the gathering Dr Haseeb A Drabu said that awareness about ECGC services was generally low among exporters in the valley. This is probably because ECGC does not have any office in the state at present. Dr Drabu highlighted the fact that payments for exports, which are open to risks even at the best of times, have assumed larger proportions in the wake of prevailing global recession. He was of the view that difficult times are likely to last some more quarters and it will be worthwhile for exporters to take additional safeguards to protect their interests.
ECGC is a Government of India undertaking and provides insurance against various kinds of commercial and political risks to exporters. Exporters from the state are presently devoid of this facility, as ECGC does not have any office in J & K State. In this backdrop Dr Drabu took the initiative of inviting top officials of ECGC to valley to create awareness among the exporter community of state about their products.
ECGC has been already requested to open its full-fledged branch in Srinagar. While ECGC is mulling on the request, J & K Bank, in the meantime, has decided to act as Corporate Agent for ECGC and agreement in this regard is likely to be signed in near future. This way the Bank through its branch network will take ECGC services to the doorstep of exporters here.
Mrs. Geetha Muralidhar, General Manager and Mr M.Senthilnathan, Regional Manager of ECGC made a presentation to the exporters and explained various features of their products in detail. Various issues rose by exporters were responded to by ECGC officials. Intervening at this juncture, Dr Drabu highlighted that artisans and exporters of the state had special requirements and existing products of ECGC may not suffice their specific needs. It was suggested that ECGC may customize its products to suite the local requirements for which inputs may be provided by the local export bodies as well as J & K Bank. ECGC officials agreed to look into this aspect.
Some of the exporters were concerned that ECGC does not cover non-payment on account of quality disputes raised by the buyer and were apprehensive that if a buyer doesn't want to make payment he will deliberately raise such issues. ECGC officials clarified that they go by the sequence of events to ascertain the genuineness of the claim and would not be guided merely by objections raised by the buyer. They further clarified that the corporation was set up to support exporters and their decisions are based on principles and not rules. Dr Drabu suggested that this issue could be resolved if a certification agency could be set up with registration from relevant government/non-government organizations and urged exporters to initiate steps in this regard. This would also help in Brand Building of Products and enhance acceptability in overseas markets. Exporters appreciated the Small Scale Exporters Policy where a flat premium of Rs 5000/= protects the exporters for payment risk up to Rs 10.00 lacs per annum.
Mr. Abdul Majid Mir, Executive Director and CFO of the bank summed up the proceedings and encouraged the exporters to come forward for availing the ECGC services to protect their payment risks. Valuable inputs were provided by Tafazal Hussian, President (Advances & Asset Planning) and Mr G.M.Sahibzada President (Supervision & Control) of the bank. The meeting concluded with Vote of Thanks by Mr Parvez Ahmad, President and Zonal Head Kashmir Central of the bank.
Earlier, ECGC officials also had an interactive session with the staff of J & K Bank at Corporate Headquarters of the bank. Meanwhile, the exporters have widely hailed Bank's interest relief scheme.
This was announced by Dr Haseeb A Drabu, Chairman and Chief Executive of the Bank, at a workshop for exporters from Kashmir valley organized here by J & K Bank in collaboration with Export Credit Guarantee Corporation of India on 12 March 2009. Large number of leading exporters from the state participated in the workshop.
Addressing the gathering Dr Haseeb A Drabu said that awareness about ECGC services was generally low among exporters in the valley. This is probably because ECGC does not have any office in the state at present. Dr Drabu highlighted the fact that payments for exports, which are open to risks even at the best of times, have assumed larger proportions in the wake of prevailing global recession. He was of the view that difficult times are likely to last some more quarters and it will be worthwhile for exporters to take additional safeguards to protect their interests.
ECGC is a Government of India undertaking and provides insurance against various kinds of commercial and political risks to exporters. Exporters from the state are presently devoid of this facility, as ECGC does not have any office in J & K State. In this backdrop Dr Drabu took the initiative of inviting top officials of ECGC to valley to create awareness among the exporter community of state about their products.
ECGC has been already requested to open its full-fledged branch in Srinagar. While ECGC is mulling on the request, J & K Bank, in the meantime, has decided to act as Corporate Agent for ECGC and agreement in this regard is likely to be signed in near future. This way the Bank through its branch network will take ECGC services to the doorstep of exporters here.
Mrs. Geetha Muralidhar, General Manager and Mr M.Senthilnathan, Regional Manager of ECGC made a presentation to the exporters and explained various features of their products in detail. Various issues rose by exporters were responded to by ECGC officials. Intervening at this juncture, Dr Drabu highlighted that artisans and exporters of the state had special requirements and existing products of ECGC may not suffice their specific needs. It was suggested that ECGC may customize its products to suite the local requirements for which inputs may be provided by the local export bodies as well as J & K Bank. ECGC officials agreed to look into this aspect.
Some of the exporters were concerned that ECGC does not cover non-payment on account of quality disputes raised by the buyer and were apprehensive that if a buyer doesn't want to make payment he will deliberately raise such issues. ECGC officials clarified that they go by the sequence of events to ascertain the genuineness of the claim and would not be guided merely by objections raised by the buyer. They further clarified that the corporation was set up to support exporters and their decisions are based on principles and not rules. Dr Drabu suggested that this issue could be resolved if a certification agency could be set up with registration from relevant government/non-government organizations and urged exporters to initiate steps in this regard. This would also help in Brand Building of Products and enhance acceptability in overseas markets. Exporters appreciated the Small Scale Exporters Policy where a flat premium of Rs 5000/= protects the exporters for payment risk up to Rs 10.00 lacs per annum.
Mr. Abdul Majid Mir, Executive Director and CFO of the bank summed up the proceedings and encouraged the exporters to come forward for availing the ECGC services to protect their payment risks. Valuable inputs were provided by Tafazal Hussian, President (Advances & Asset Planning) and Mr G.M.Sahibzada President (Supervision & Control) of the bank. The meeting concluded with Vote of Thanks by Mr Parvez Ahmad, President and Zonal Head Kashmir Central of the bank.
Earlier, ECGC officials also had an interactive session with the staff of J & K Bank at Corporate Headquarters of the bank. Meanwhile, the exporters have widely hailed Bank's interest relief scheme.