Srinagar, Jul 30: Jammu and Kashmir is witnessing a strong economic revival as peace returns to the region, with tourism, business activity and lending showing encouraging growth despite the setbacks caused by last year’s Pahalgam terror attack, Jammu and Kashmir Bank Managing Director and Chief Executive Officer Amitava Chatterjee said.
In an interview, Chatterjee said the Union Territory’s improving economic health is reflected in the bank’s first-quarter financial performance, which was announced on Wednesday.
He said the revival of tourism has significantly contributed to economic activity, pointing to a sharp rise in the bank’s retail business.
“Our retail business grew by around ₹700 crore in the first quarter last year. This year, it has increased to ₹1,400 crore, nearly doubling. J&K Bank’s performance is a good indicator of the region’s economy, and these numbers suggest that the economy is back on track,” he said.
Recalling the impact of the Pahalgam terror attack, Chatterjee said tourism and business had suffered considerably in its aftermath.
“I remember travelling to my office after the Pahalgam incident and seeing taxi stands completely deserted for months. Recently, I found myself stuck in a traffic jam along Dal Lake late at night, and instead of being frustrated, I was happy because it meant tourists had returned to Jammu and Kashmir,” he said.
The CEO, however, said the full picture of the economic recovery would become clearer once the horticulture season concludes and apple growers receive remunerative prices for their produce.
He noted that besides tourism, other sectors of the economy are also showing signs of improvement, adding that there remains significant scope for further growth.
Highlighting the bank’s agriculture-focused lending, Chatterjee said demand for agricultural term loans has increased substantially since the launch of specialised products last year.
He said annual growth in agriculture lending, which previously ranged between ₹700 crore and ₹1,000 crore, had surged to around ₹3,000 crore, and the momentum has continued this year.
According to Chatterjee, the strong demand for business and agriculture loans reflects growing confidence among entrepreneurs and farmers.
“People borrow when they see opportunities to generate income and expand their businesses. The increasing appetite for credit is a positive sign that the economy is in much better shape than it was a year ago,” he said.
