Banks operating in J&K State have extended credit aggregating Rs.2,570.02 Crore to 92,135 beneficiaries both under Priority and Non-priority sector during first quarter ended June 2014 of the FY 2014-15. J&K Bank alone has disbursed Rs.1707.13 Crore which accounts for 66.42% of the total credit disbursed by all the banks in the state under the annual action plan of the current financial year, a company statement said on Wednesday.
This was stated by Mushtaq Ahmad, Chairman & CEO, J&K Bank (Convenor J&K SLBC), while addressing the 94th meeting of J&K State Level Bankers’ Committee (SLBC) today at SKICC Srinagar.
While taking review of the performance of the banks under various segments of economy under Annual Action Plan 2014-15, Chief Secretary M Iqbal Khanday, who chaired the meeting, stated that a lot more was to be done by the banks and the line departments to achieve the goals set for the economic development of the State, the statement said.
He emphasized that banks and implementing agencies should stay in close coordination for the smooth implementation of the various schemes and programmes aimed at the economic development of the State. On Corporate Social Responsibility of the banks in J&K State the Chief Secretary said that nationalized banks should come forward and play pivotal role under CSR programmes in the state.
Speaking on the occasion, Chairman J&K Bank Mushtaq Ahmad stated that J&K SLBC is making concerted efforts to implement the various initiatives taken by the Central and State Government for the overall economic development of the State.
“Financial Inclusion, which aims at bringing the unbanked populations into the banking fold, is the prestigious project of GoI has always remained one of our top priorities for promoting inclusive growth”, he said.
On providing banking services to the unbanked areas of the state he said that “Swabhimaan” campaign of Financial Inclusion Plan Phase-1 has been successfully accomplished by providing coverage to all the 795 unbanked villages (having population over 2000) in J&K State, the statement informed.
“In phase II of Financial Inclusion Plan, a total of 5,582 villages, having population below 2000 have been identified in the State for providing banking services during FYs 2012-13, 2013-14, 2014-15 and beyond and 3192 villages have already been covered by the end of June 2014 against target of 4077 villages to be covered by 31st March 2015 which accounts for 78% achievement. The position is quite satisfactory,” he said.
He said that under priority sector, the banks have disbursed an amount of Rs.1340.95 Crore to 63,985 beneficiaries thereby achieving 11% of target in financial terms and 9.48% in physical terms, the statement further said.
The first quarter usually remains sluggish but the banks have to make strenuous efforts to achieve at least 80% of the Annual Credit Plan by 31st December 2014, he added.
He cautioned the banks about the paltry credit disbursement in education sector. “The low appetite under the scheme despite zero rate of rejection of cases is a cause of concern and needs serious introspection,” he said.
Under Non-Priority Sector, the Chairman said, banks have disbursed Rs.1229.07 Crore to 28,150 beneficiaries thereby achieving 16.32% of target in financial terms and 13.49% in physical terms.
Regarding Credit Deposit Ratio, the Chairman observed that CD Ratio of all banks operating in the State at the end of quarter under review stood at 46.47% as against 39.40% during the corresponding period of previous year.
The trend is encouraging but there is lot more to do to achieve the National Benchmark of 60% CD Ratio, he said.
Under Government Sponsored Schemes in the State, the Chairman stated that, against the Annual Action Plan 2014-15 target of Rs 412.27 Crore to 21,280 beneficiaries for all banks operating in the State, the achievement of banks during the first quarter under five major Government Sponsored Schemes, viz NRLM, PMEGP, NULM, JKSES and SC/ST/OBC is just Rs 42.63 Crore to 2006 beneficiaries across the state registering a performance of 10% of the target in financial terms and 9% in physical terms, the statement added.
Stressing upon all the stakeholders to put in strenuous efforts to improve the position under this vital segment, he said, “The achievement is not satisfactory by any standards.”
Regarding the GoI, MoF initiative for 100% coverage of farmers under Kissan Credit Cards, Mushtaq Ahmad said that banks have been able to achieve 79% of target till the end of June 2014 by sanctioning 7.73 lakh KCCs against the revised target to cover 9.81 lakh farm operating families in J&K State.
Regarding non-achievement of 100% coverage of farmers under KCC Scheme upto the extended timeline i.e. 30th June, 2014 despite concerted efforts made by all the stake holders, he said, “The performance under this vital segment is a matter of concern.”
The SLBC decided that the individual banks should take concerted efforts for covering the remaining farm operating families under KCC Scheme upto 31st December 2014 which was fixed as the final timeline for 100% Coverage under the scheme, it maintained.
As regards EBT Scheme, he stated that in Phase-I the scheme has been implemented in six pilot districts of the State i.e. Srinagar, Ganderbal, Jammu, Rajouri, Kargil & Leh and benefits under IGNOAPS have been transferred successfully into the beneficiaries accounts.
He further stated that data validation in respect of remaining 16 Districts is under process and these districts shall be covered under the scheme very soon.
A special session on Comprehensive Financial Inclusion Plan was held in the meeting wherein representative from Department of Financial Services, MoF, GoI, A K Dogra gave a Power Point Presentation of the Plan.
Priority Sector Review
Under Agriculture Sector the banks have provided total credit of Rs 478.59 Crore in favour of 35,725 beneficiaries against a target of Rs 4004.55 Crore favouring 4,19,015 beneficiaries, registering an achievement of 12% in financial terms and 9% in physical terms, during the first quarter of FY 2014-15, the statement said.
Under Micro & Small Enterprises Sector, the banks have disbursed total amount of Rs 484.12 Crore in favour of 13,436 beneficiaries’ upto the end of Q1 of FY 2014-15 thereby registering an achievement of 12% in financial terms and 9.36% in physical terms.
In Education Sector banks have disbursed a paltry amount of Rs16.09 Crore in favour of 666 beneficiaries during the period under review thereby registering an achievement of 3% in financial terms and 5% in physical terms, it said.
Under Housing Sector, banks have disbursed credit amounting to Rs.196.59 Crore in favour of 6,482 beneficiaries during the period under review thereby registering an achievement of 8% in financial terms and 17% in physical terms, the statement said.
Under Other Sector against the annual target of Rs.1271.80 Crore in favour of 59,340 beneficiaries, banks have disbursed total amount of Rs.165.57 Crore in favour of 7,676 beneficiaries during the quarter under review. This works out to 13% achievement in financial as well as in physical terms.