J&K Bank contributes 71 pc of total credit in state


KL Report

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All banks operating in J&K State have extended credit aggregating to Rs 5,512.49 Crore to 187662 beneficiaries under Priority and Non-priority sector, during first half of FY 2014-15 registering an achievement of 28% in financial terms and 21% in physical terms.

J&K Bank alone has disbursed Rs 3, 916.27 Crore, which accounts for 71% of the total credit disbursed by all 46 banks/Financial Institutions operating in the State upto 30th September 2014.

Mushtaq Ahmad, Chairman & CEO, J&K Bank (Convenor J&K SLBC) stated this today while addressing 95th meeting of J&K State Level Bankers’ Committee (SLBC) at Jammu.

Muhammad Iqbal Khanday, Chief Secretary, J&K Government presided over the meeting that was attended by Financial Commissioner, Industries & Commerce Deptt. Khursheed Ahmad Ganai, Principal Secretary Planning B. R. Sharma, Principal Secretary Finance, B. B. Vyas, General Manager Reserve Bank of India A. K. Mattu, Chief General Manager NABARD Shanker A. Pande,  Commissioner/ Secretaries of state government, senior officers of banks, Reserve Bank of India, NABARD, state government departments, developmental agencies and representatives of various insurance companies and BSNL.

Reviewing the performance of the banks under various segments of economy under Annual Action Plan 2014-15, Chief Secretary M. I. Khanday said that in view of devastation caused by the recent floods, generous CSR plans are required to be prepared by the banks to help the flood victims come out of hardships.

Observing that that Credit Deposit Ratio of the State still remained very low as compared to the average of 65% to 70% which has been achieved by other States of India, he also stressed upon banks to extend need based liberal credit across all regions of the state and at least achieve a CD Ratio of 60% in next half of the financial year.

He urged the banks to at least open 100 new bank branches up to 31st March 2015.

Commenting on performance of Banks under Kissan Credit Card Scheme, he emphasized that left out target of 1,77,863 cases should be achieved at any cost by 31st March 2015.

This has become a compulsion after loss of two months time i. e September and October 2014 because of flash floods that hit the J&K State, he mentioned.

On the poor credit off take under Housing and Education sectors, Chief Secretary was of the view that SLBC needs to highlight the features among the general masses of the State so that the benefits of these schemes gets percolated to various sections of the society.

Speaking on the occasion, Chairman & CEO J&K Bank, Mushtaq Ahmad stated that Financial Inclusion Plan, which is the prestigious project of GoI and has always remained priority for promoting inclusive growth, has got focused attention after the launch of “Pradhan Mantri Jan Dhan Yojana’ by Hon’ble Prime Minister of India across the country on 28th of August 2014.

Under the programme, he stated that banks have organized 2,291 camps in all the 22 districts across the State in which 3, 50,175 accounts have been opened upto 30th September 2014. Banks have also issued Rupay Cards to 31,603 beneficiaries under the scheme.

On the restructuring of various types of credit facilities to the existing borrowers and disbursement of fresh loans to the people affected by the floods, he said that banks are making concerted efforts to provide hassle free credit to the flood victims for their economic rehabilitation.

Upto November 21, 2014 banks in the state have processed and sanctioned 3,669 applications involving an amount of Rs 365.71 Crore in respect of existing and fresh borrowers affected by the natural calamity. Besides, the banks have also disbursed fresh credit amounting to Rs 171.11 Crore in favour of 2,060 beneficiaries, he added.

He further said that the C. D. Ratio of all banks operating in the State at the end of Q2 of FY 2014-15 stood at 43.38% against 40.47% during the corresponding period of previous year.

Commenting on the performance of banks under Government Sponsored Schemes in the State, Chairman said that against the Annual Action Plan 2014-15 target of Rs.439.90 Crore  to 24,158 beneficiaries for all banks operating in the State, the achievement of banks at the end of September 2014 in five major schemes is Rs.80.48 Crore spread over 3,976 beneficiaries in all the three regions of the State thereby registering a performance of 18% of the target in financial terms and 16% in physical terms.

Observing that the achievement is not satisfactory by any standards, he called upon the stakeholders to put in best efforts to improve the position under this vital segment.

Meanwhile, Financial Commissioner, Industries & Commerce Khursheed Ahmad Ganai called for a better coordination between banks, SLBC Secretariat and various government departments for better analysis of the performance of banks operating in the State. He also advised about dispensation of credit under Weavers Credit Card Scheme which has been launched by Ministry of Textiles, Government of India.

Sector-wise Performance

Overall, under Priority Sector, banks have disbursed an amount of Rs.3, 523.50 Crore to 1, 43,979 beneficiaries thereby achieving 28% of target in financial terms and 21% in physical terms.

Under Agriculture Sector the banks have provided credit aggregating  Rs.1,073.25 Crore in favour of 72,758 beneficiaries during the first half of FY 2014-15 against the target of Rs.4,004.55 Crore favouring 4,19,015 beneficiaries, registering an achievement of 27% in financial terms and 17% in physical terms.

Under Micro & Small Enterprises Sector, banks have disbursed total amount of Rs.1,224.70 Crore in favour of 34,961 beneficiaries upto the end of Q2 of FY 2014-15 thereby registering an achievement of 29% in financial terms and 24% in physical terms, during the said period.

Under Education Sector banks have disbursed an amount of Rs.31.78 Crore in favour of 1,451 beneficiaries during the half year ended September 2014 registering an achievement of 6% in financial terms and 10% in physical terms.

Under Housing Sector, banks have disbursed credit amounting to Rs.241.19 Crore in favour of 7,436 beneficiaries during the period under review registering an achievement of 10% in financial terms and 19% in physical terms.

Under Other Sector against the annual target of Rs.1,271.80 Crore in favour of 59,340 beneficiaries banks have disbursed total amount of Rs.952.58 Crore in favour of 27,373 beneficiaries upto 30th September 2014. This works out to 13% achievement in financial as well as in physical terms.

Meanwhile, Under Non-Priority Sector, banks have disbursed Rs.1, 229.07 Crore to 28,150 beneficiaries thereby achieving 75% of target in financial terms and 46% in physical terms.



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