Out of the total credit disbursement of Rs 2,859.24 Crore disbursed by banks in the State during Q1 of current FY, J&K Bank alone has disbursed Rs 1,913.07 Crore which accounts for 67 % of the total credit disbursed by all banks while as the remaining 33 % of total credit was disbursed by all other 39 banks operating in J&K.
Mushtaq Ahmad, Chairman and CEO J&K Bank (Convenor J&K SLBC) stated this while presiding over the 90th State Level Bankers’ Committee (SLBC) meeting held here at SKICC today.
J&K bank has extended Rs 1223.94 Crore and Rs 689.13 Crore to the priority and non-priority sectors respectively, he added.
Chaired by M Iqbal Khanday, Chief Secretary J&K Government, the meeting was attended by B B Vyas Principal Secretary Finance, B R Sharma, Principal Secretary Planning, S K Jindal Director (DFS) Ministry of Finance (GoI), Dr B G Mukhopadhyay CGM NABARD, Representatives of RBI, Commissioner Secretaries, HoDs of various departments, SIDBI, Public Sector Banks, RRBs and other institutions.
Chief Secretary M Iqbal Khanday stressed upon the bankers and other line departments to keep up their efforts so that the targets are achieved within the stipulated time frame.
Earlier, during his keynote address Mushtaq Ahmad said, “Inclusive growth is the secret of India’s success and it is driven by the Financial Inclusion programme which is being seriously pursued across the state.”
He informed the meeting that only 6 villages remained to be covered due to lack of connectivity in the Phase-I of the Financial Inclusion Plan against the target of 795 unbanked villages having population over 2000 in the State.
In the 2nd phase of FIP against 5,582 identified villages having population below 2000 in J&K State, to be covered during 2012-13, 2013-14, 2014-15 and beyond 2015, 1,677 villages had been covered up to 30th June 2013, he added.
He termed the increase of 3.69% in the Credit-Deposit Ratio (CDR) of all banks operating in the state as encouraging, which stood at the end of Q1 of current FY at 39.40% as against 35.71% during the corresponding period of previous year. The CD Ratio of J&K Bank for the quarter under review is 42.72%.
Notably, Governor, RBI had prescribed the CD Ratio of 40% for state to be achieved by end of FY 2013-14.
After serious deliberations over credit dispensation in Kissan Credit Cards (KCC), the deadline for achieving the target was extended to 31st March, 2014.
Expressing concern over the dismal performance of banks under five major Govt. Sponsored Schemes, viz. NRLM (SGSY), PMEGP, SJSRY, JKSES and SC/ST/OBC, Chairman said, “The achievement is not satisfactory. This should again be an issue of consuming priority for the SLBC. Besides achieving quarterly targets, cases pending with the banks must be disposed off at earliest.”
Notably, out of Rs 39.34 Crore disbursed under the sponsored schemes to over 2466 beneficiaries, J&K Bank alone disbursed Rs 29.28 Crore favouring 1,656 beneficiaries, which constituted 74% of the total credit.
The target of setting up of Financial Literacy Centres (FLCs) and Rural Self Employment Training Institutes (RSETIs) in all the districts of J&K State has since been accomplished viz., J&K Bank and SBI in their respective allocated districts , leaving only one district (viz. District Kargil) yet to be covered by SBI, he said.
Reiterating his commitment to implement the government sponsored schemes aimed at alleviation of poverty and fighting the menace of unemployment confronting the State, he urged the state government to take necessary steps for removing disabling factors to facilitate loan recovery & creating a responsive credit climate in the State, which would help banks to improve debt recovery from the willful defaulting borrowers.
Regarding Electronic Benefit Transfer (EBT) scheme, B B Vyas informed the house, “After analyzing their presence and outreach in rural areas, J&K Government has decided to give J&K Bank lead role in all the 22 districts for its Electronic Benefit Transfer (EBT) scheme.”
Sector-wise break-up of disbursements
Priority-Sector: The sector-wise performance of the banks revealed that under ‘Agriculture Sector’against the annual target of Rs.3,212.98 Crore for 3,91,773 beneficiaries, banks have disbursed a total amount of Rs.645.63 Crore in favour of 56,271 beneficiaries by the end of June 2013 registering achievement of 20% in financial terms and 14% in physical terms. Out of which J&K Bank alone has disbursed Rs 503.28 Crore favouring 36,296 beneficiaries thus constituting 78 % of the credit.
Under ‘Micro & Small Enterprise’s Sector against the annual target of Rs.3,572.86 Crore for 1,34,362 beneficiaries, banks have disbursed an amount of Rs.607.33 Crore in favour of 19,980 beneficiaries by the end of June 2013, thereby registering an achievement of 17% of the target in financial terms and 15% in physical terms. Out of these J&K Bank’s share was Rs 322.34 Crore favouring 14,144 beneficiaries.
Under ‘Education Sector’ banks have disbursed total amount of Rs.21.76 Crore in favour of 1,302 beneficiaries as against the annual target of Rs.417.53 Crore in favour of 10,916 beneficiaries, achieving just 5% of target in financial terms and 12% in physical terms. J&K Bank disbursed Rs.13.24 Crore in favour of 1,103 beneficiaries, which constituted 61% of total credit to the sector in financial and 85% in physical terms.
Under ‘Housing Sector’ as against the annual target of Rs.2,040.33 Crore favouring 33,124 beneficiaries banks have disbursed total amount of Rs.299.92 Crore in favour of 11,098 beneficiaries, achieving14.70% in financial terms and 33.50% in physical terms. J&K Bank alone has disbursed Rs 268.68 Crore in favour of 10,461 beneficiaries, which constituted 90% of total credit to Housing Sector in financial and 94% in physical terms.
Under ‘Other Sector’ the banks have disbursed Rs.146.04 Crore in favour of 7,056 beneficiaries as against the annual target of Rs.898.77 Crore in favour of 43,314 beneficiaries, achieving 16% of target in financial as well as physical terms. Here also J&K Bank’s share was Rs 116.40 Crore favouring 5,235 beneficiaries, which constituted 80% of total credit to Other Sector in financial and 74% in physical terms.
Non Priority Sector: Under this sector the banks have disbursed Rs 1,138.56 Crore favouring 23,261 beneficiaries as against the annual target Rs 6180.22 Crore favouring 1,67,745 beneficiaries, thus achieving 18% of target in financial terms and 14% in physical terms. Out of which J&K Bank disbursed Rs.689.13 Crore favouring 13,550 beneficiaries which constituted 61% of total credit to Non Priority Sector in financial and 58% in physical terms.