J&K Bank contributes 73% of the total credit disbursed in the State

KL Report


91 slbc picBanks operating in J&K State have extended credit aggregating Rs.5,607.49 Crore to  2,36,354 beneficiaries both under Priority as well as Non-priority sector, during first half of the CFY 2013-14 registering achievement of 34.35%. J&K Bank alone has disbursed Rs.4,072.81 Crore, which accounts for 73% of the total credit disbursed by all banks in the State during the half year ended 30th September 2013. This was revealed by Mr. Mushtaq Ahmad, Chairman & CEO, J&K Bank (Convenor J&K SLBC), while addressing the 91st  meeting of J&K State Level Bankers’ Committee (SLBC) today at Jammu.

The meeting was presided over by Jenab Abdul Rahim Rather, Hon’ble Minister for Finance & Ladakh Affairs, Jammu & Kashmir State and was attended by Mr. M. I. Khanday, Chief Secretary, J&K Government, Principal Secretary Planning Mr. B. R. Sharma, Principal Secretary (Finance) Mr. B. B. Vyas, Commissioner/ Secretaries of State Government, Regional Director Reserve Bank of India (J&K State),  Mr. K. K. Saraf, Chief General Manager, NABARD, Dr. B. G. Mukhopadhyay, ,other senior officers of banks, Reserve Bank of India, NABARD, State Government Departments & developmental agencies.

Jenab Abdul Rahim Rather, Hon’ble Minister for Finance & Ladakh Affairs who presided over the meeting said that crossing the targeted 40% mark in the aggregated CD Ratio is a significant achievement of the commercial banks operating in the State. He appreciated the banks for the  achievement but added that overall progress still remains considerably below the national benchmark of 60%, hence lot of efforts are required to be put in by banking fraternity on all fronts of credit expansion.

He further appreciated the role of banks for maintaining the priority sector lending above the benchmark of 40%. He observed with satisfaction that the share of agriculture sector to total priority sector has improved to 28.68% as on 30th September 2013 compared to 24.62% as on  30th March 2013. Though the share of agriculture advances to total advances has improved to 16.21% as on 30.09.2013 yet efforts are required to cross the benchmark of 18%.

As regards providing of banking services to the unbanked villages of the state, identified under Financial Inclusion plan phase I and phase II, the Hon’ble Finance Minister said that all the concerned agencies/departments should extend the requisite support and other facilities to these villages to ensure their early coverage.

The Electronic Benefit Transfer (EBT) scheme which is a revolutionary concept in e-governance shall be started in 6 pilot districts in Jammu, Kashmir and Ladakh regions of the State in the first Phase and latter extended to remaining 16 districts. This was revealed by the Hon’ble  Minister for Finance while seeking active cooperation from all stake holders for implementation of EBT scheme in the State on a fast track basis.

Earlier during the welcome address the Chairman & CEO, J&K Bank, Mr. Mushtaq Ahmad while commenting on the performance of the banks in the State emphasized that access to financial system by the underprivileged and vulnerable groups is the prerequisite for poverty alleviation and social cohesion and this has always been an integral part of our efforts for promoting inclusive growth and empowerment.

While reviewing sector-wise performance of banks under Priority Sector the Chairman & CEO, J&K Bank, Mr. Mushtaq Ahmad, stated that under Agriculture Sector the banks have provided credit aggregating to Rs.1,094.74 Crore to 93,746 beneficiaries against a target of Rs.3,212.98 Crore favouring 3,91,773 beneficiaries, registering an achievement of 34% in financial terms and 24% in physical terms, during the period under review.

Under Micro & Small Enterprises Sector, banks have disbursed total amount of Rs.1,129.65 Crore in favour of 43,317 beneficiaries by the end of September 2013.

Under Education Sector banks have disbursed total amount of Rs.53.46 Crore in favour of 3,335 beneficiaries by the end of September 2013.

Under Housing Sector, banks have disbursed total amount of Rs.655.21 Crore in favour of 24,947 beneficiaries by the end of September 2013.

In Non-Priority Sector, the Chairman & CEO, J&K Bank stated that banks have disbursed Rs.2,356.77 Crore thereby achieving 38% of target in financial terms.

Commenting on the performance of banks under Government Sponsored Schemes in the State, the Chairman and CEO of J&K Bank stated that against the Annual Action Plan 2013-14 target of Rs.472.81 Crore for 30,090 beneficiaries for all banks operating in the State, the achievement of banks at the end of September, 2013 under five major Government Sponsored Schemes, viz. NRLM (SGSY), PMEGP, SJSRY, JKSES and SC/ST/OBC is of the order of Rs.82.63 Crore spread over 4,503 beneficiaries in all the three regions of the State thereby registering a performance of 17% of the target in financial terms and 15% in physical terms.  Observing that the achievement is not satisfactory the Chairman/CEO of J&K Bank stressed upon all the stakeholders to put in strenuous efforts to improve the position under this vital segment.

Regarding Credit Deposit Ratio, the Chairman and CEO of J&K Bank commented that against the target of 40% C.D.Ratio prescribed by Hon’ble Governor, RBI for J&K State to be achieved by end of FY 2013-14, the C. D. Ratio of all banks operating in the State at the end of Q2 of CFY 2013-14 stood at 40.47% as against 36.53% during the corresponding period of previous year, indicating an increase of 3.94%, which is encouraging.

Commenting on the progress in respect of providing banking services to the unbanked areas of the State he stated that under “Swabhimaan” campaign/ Financial Inclusion Programme 789 villages out of the allocated 795 villages (having population over 2000) have already been covered in phase 1st.

Commenting on the 2nd phase of Financial Inclusion Plan of J&K State, the Chairman stated that against the target of 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, 2095 villages have already been covered upto the end of Q2 of CFY against target of 2573 villages upto the end of March 2014 which accounts for 81% achievement. The position is quite satisfactory.

Regarding the GoI, MoF initiative for 100% coverage of farmers under Kissan Credit Cards Mr. Mushtaq Ahmad stated that banks have been able to achieve 72% of target by the end of September 2013 by sanctioning 7,25,111 KCCs against the target to cover 10.09 lakh farm operating families in J&K State and we are confident to achieve 100% target by the end of current financial year i.e. the deadline for 100% coverage.

Concluding the proceedings of 91st J&K SLBC meeting the, Minister for Finance & Ladakh Affairs asked the National Level Banks operating in the State to extend liberal credit facilities in view of States limited resources and its numerous problems. He said it was the National responsibility for the banks to provide hassle free and liberal lending support to the people in J&K.

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