Asset management has shown better results for banks in Jammu and Kashmir as compared to the condition earlier. The first half of this fiscal saw only Rs 33.60 crore being added to the NPA category as compared to Rs 136.67 crore added in 2008.

"The 2008 agitation impacted both the capital cities of Srinagar and Jammu," one senior executive of a bank said. "Then, economic boycott was enforced that froze all economic activities but in 2010 there was nothing like that. There were difficulties in day business but supply channels remained undisturbed as night business continued."

Punjab National Bank had a net NPA of Rs 80.29 crore at the end of March 2010 and six months later it improved to Rs 79.72 crore. "We liberally rescheduled all the critical accounts and in certain cases we took the OTS route to offer (interest) waivers as well," said Ashok K Gupta, the regional manager of the PNB.