Six NPA Accounts settled, Rs 3.36 crore interest waived
SRINAGAR, JULY 22: The Settlement Committee of the Jammu & Kashmir and Ladakh Finance Corporation (JKLFC) met under the chairmanship of the Managing Director to consider settlement of seven Non-Performing Asset (NPA) loan accounts under the Settlement Scheme-2026 (SS-2026).
The Committee, as per an official statement, approved settlement proposals in respect of six NPA loan accounts involving a total settlement amount of approximately Rs 84.43 lakh, subject to the borrowers depositing the approved settlement amounts within the stipulated period and fulfilling all the provisions of the scheme. One settlement proposal was deferred pending submission of an updated legal status report and legal opinion.
The Board of Directors, in its 247th meeting held on 31st December 2025, had approved the introduction of the Settlement Scheme-2026 (SS-2026). The scheme came into force with immediate effect and shall remain in operation up to 30th September 2026.
The scheme has been introduced as a One-Time Settlement (OTS) mechanism to facilitate recovery of long-pending Non-Performing Assets by providing eligible borrowers an opportunity to liquidate their outstanding loan liabilities on concessional terms, thereby improving recoveries and reducing the Corporation’s NPA portfolio.
The Managing Director emphasized that the scheme is an important initiative to recover long-pending dues, facilitate closure of stressed loan accounts, and safeguard the financial interests of the Corporation. He directed all Branch Heads and District Officers to expedite identification of eligible cases and ensure prompt processing and submission of settlement proposals.
The Corporation reiterated its commitment to strengthening its recovery mechanism and improving the quality of its loan portfolio through effective implementation of the Settlement Scheme-2026.
Eligible borrowers have been advised to avail the benefits of the scheme before its expiry on 30th September 2026.
