<p>Srinagar: More than seven months after the April–May 2025 disturbances dealt a blow to Jammu and Kashmir’s already fragile economy, the rehabilitation of affected business units remains painfully slow. </p><p>Official data reviewed by the Union Territory Level Bankers’ Committee (UTLBC) shows that only 7,752 of the 64,029 disturbed accounts — barely 12 per cent — have been covered under the financial relief package so far.</p><p>The crisis began after the April 22 Pahalgam terror attack, one of the deadliest assaults on tourists in the Valley. At least 26 people were killed, triggering nationwide outrage and a wave of cancellations across Kashmir’s tourism sector — an industry responsible for thousands of livelihoods. The fallout coincided with heightened India-Pakistan tensions, compounding economic disruption across the Union Territory.</p><p>Banking data accessed by the UTLBC during its 16th meeting on June 21 revealed the scale of damage, prompting the committee to direct Jammu & Kashmir Bank, State Bank of India, and Punjab National Bank to jointly design a comprehensive rehabilitation plan. </p><p>Acting on the recommendations, the J&K government declared the entire region “disturbance-affected” with effect from April 22, a notification cleared by the Lieutenant Governor in early August.</p><p>Banks were formally issued the approved rehabilitation package on September 6, but its implementation has lagged dramatically. According to reports, J&K Bank, which has the highest exposure, reported 36,192 affected accounts involving ₹1,930.57 crore, yet has managed to rehabilitate only 7,133 so far. </p><p>SBI has covered 362 of 10,800 impacted borrowers, while PNB has processed just 235 of its 9,581 disturbed accounts. HDFC Bank, despite exposure to 2,044 business units worth ₹790.93 crore, has not rehabilitated a single account to date.</p><p>Overall, banks have extended relief of just ₹494 crore as against an estimated total affected exposure of ₹5,055 crore.</p><p> “The package was circulated for implementation in early September, but the execution gap remains stark,” a senior banking executive said, adding that the delays were being reviewed by higher authorities. Banks were initially expected to complete rehabilitation by November 5, but with progress far off the mark, they have now approached the UTLBC seeking an extension of the deadline to December 31.</p>.<p><strong>Extension sought </strong></p><p>Trade bodies warn that the sluggish rollout is pushing many enterprises to the brink of collapse. Kashmir Chamber of Commerce and Industry (KCCI) president Javid Ahmad Tenga said he has written to J&K Bank requesting an extension of the implementation timeline. </p><p>“The aftermath of the April 22 attack has been devastating. Tourism collapsed overnight, and the shock has cascaded into transport, handicrafts, retail and services,” Tenga said. </p><p>He also reiterated KCCI’s demand for a one-time settlement scheme, arguing that thousands of traders were struggling to recover from the prolonged downturn.</p><p>President of the Kashmir Trade Alliance Aijaz Shahdhar echoed the concerns, warning that many small and medium-scale units were “on the verge of closure.” He stressed that “a relief package is meaningful only if delivered on time. Each week of delay deepens distress among borrowers.”</p>
<p>Srinagar: More than seven months after the April–May 2025 disturbances dealt a blow to Jammu and Kashmir’s already fragile economy, the rehabilitation of affected business units remains painfully slow. </p><p>Official data reviewed by the Union Territory Level Bankers’ Committee (UTLBC) shows that only 7,752 of the 64,029 disturbed accounts — barely 12 per cent — have been covered under the financial relief package so far.</p><p>The crisis began after the April 22 Pahalgam terror attack, one of the deadliest assaults on tourists in the Valley. At least 26 people were killed, triggering nationwide outrage and a wave of cancellations across Kashmir’s tourism sector — an industry responsible for thousands of livelihoods. The fallout coincided with heightened India-Pakistan tensions, compounding economic disruption across the Union Territory.</p><p>Banking data accessed by the UTLBC during its 16th meeting on June 21 revealed the scale of damage, prompting the committee to direct Jammu & Kashmir Bank, State Bank of India, and Punjab National Bank to jointly design a comprehensive rehabilitation plan. </p><p>Acting on the recommendations, the J&K government declared the entire region “disturbance-affected” with effect from April 22, a notification cleared by the Lieutenant Governor in early August.</p><p>Banks were formally issued the approved rehabilitation package on September 6, but its implementation has lagged dramatically. According to reports, J&K Bank, which has the highest exposure, reported 36,192 affected accounts involving ₹1,930.57 crore, yet has managed to rehabilitate only 7,133 so far. </p><p>SBI has covered 362 of 10,800 impacted borrowers, while PNB has processed just 235 of its 9,581 disturbed accounts. HDFC Bank, despite exposure to 2,044 business units worth ₹790.93 crore, has not rehabilitated a single account to date.</p><p>Overall, banks have extended relief of just ₹494 crore as against an estimated total affected exposure of ₹5,055 crore.</p><p> “The package was circulated for implementation in early September, but the execution gap remains stark,” a senior banking executive said, adding that the delays were being reviewed by higher authorities. Banks were initially expected to complete rehabilitation by November 5, but with progress far off the mark, they have now approached the UTLBC seeking an extension of the deadline to December 31.</p>.<p><strong>Extension sought </strong></p><p>Trade bodies warn that the sluggish rollout is pushing many enterprises to the brink of collapse. Kashmir Chamber of Commerce and Industry (KCCI) president Javid Ahmad Tenga said he has written to J&K Bank requesting an extension of the implementation timeline. </p><p>“The aftermath of the April 22 attack has been devastating. Tourism collapsed overnight, and the shock has cascaded into transport, handicrafts, retail and services,” Tenga said. </p><p>He also reiterated KCCI’s demand for a one-time settlement scheme, arguing that thousands of traders were struggling to recover from the prolonged downturn.</p><p>President of the Kashmir Trade Alliance Aijaz Shahdhar echoed the concerns, warning that many small and medium-scale units were “on the verge of closure.” He stressed that “a relief package is meaningful only if delivered on time. Each week of delay deepens distress among borrowers.”</p>