Srinagar: Jammu and Kashmir is reaping the dividends of peace with strong indicators suggesting that the Union Territory’s economy is getting back on track after multiple setbacks, including Pahalgam terror attack, said Jammu and Kashmir Bank Managing Director and Chief Executive Officer Amitava Chatterjee.
In an exclusive interview with PTI, Chatterjee said while traffic jams at tourist spots were an indicator of the economy rebounding, the rebound was reflected in the bank’s Q1 results which were declared on Wednesday.
“I am really glad that traffic and tourism are back. And that is visible in our books’ numbers also. The growth in our retail business in the first quarter last year was around Rs 700 crore. This year, it is Rs 1,400 crore, just double.
“So, if that is an indication and I can tell you, J&K Bank’s numbers are a good indication of the economy of J&K, if that is the kind of indication that we have, I believe the economy is back on track,” Chatterjee said.
The J&K Bank CEO said he had first hand witnessed the devastating effect of the Pahalgam terror attack on the local economy last year.
“I have gone through that phase when Pahalgam happened. After that, for three to four months, I used to travel from my home to office, and all the taxi stands used to remain absolutely empty.
“A couple of weeks back, I was travelling by the side of Dal Lake at 10:30 in the night, and I was stuck in a traffic jam. A person getting stuck in a traffic jam gets irritated, and I was extremely happy. I was so happy that tourists have actually come back to Jammu and Kashmir,” he added.
Chatterjee said he does not feel the economy of Jammu and Kashmir has peaked already as the horticulture produce has not been harvested yet.
“We will get the real picture only once the horticulture produce is out and apples are sold at the prices they actually deserve. So, these two things and related to tourism, the other sectors are also improving. There is a lot that we can still do with the economy, but I am happy that it is in a much better shape than it was last year,” he added.
Asked about the performance of agriculture specific products launched by the bank in Jammu and Kashmir, he said the off-take has gone up by three times and the trend is continuing.
“We had a very good off-take in the agriculture term loan, the product that we had introduced last year. Compared to, say, Rs 700 to Rs 1,000 crore a year growth in agriculture, there was Rs 3,000 crore of growth, three times! And that is continuing this year, almost on similar lines,” he said.
The CEO said people would borrow only when they are generating revenues.
“If there is an appetite, people will not take money for consumption, right? They will take money only when they are able to use it for generating business and revenue. So, if these are indications, I believe it is in a very good shape,” he said.
