Priority Sector Lending: First Six Month Report

Against a target of providing Rs 2820.91 crore credit to 207941 eligible individuals across J&K in 2010-11under the priority sector lending, the banking sector operating in J&K has provided Rs 1202.51 crore to 58580 people in first six months ending September 2010.

The 43% achievement is less by seven percent if compared to the first half of 2009-10 for which banks hold the situation responsible. J&K Bank has retained the leadership by recording a credit off take of Rs 785.15 crores followed by SBI with Rs 102.13 crores and PNB by Rs 52.01 crores.

Of this Rs 244.79 crore were provided under agriculture credit, Rs Rs 438.28 crore for the small enterprise sector, Rs 139.39 crore as micro credit, Rs 22.01 crores under education loan and Rs 358.77 crores four housing loans. Interestingly while the credit off take to vital agriculture, small enterprises, micro credit and education is between 17 and 36 percent, the achievement under housing is as huge as 197%. While the banks were supposed to extended Rs 181.77 crores to 5282 people for constructing their houses in 12 months, they ended up providing Rs 358.03 crores to 14809 people in six months.

Analysing the achievements of priority sector lending at regional level, Kashmir consumed Rs 522.39 crores of which Rs 183.03 crore were in housing sector, Rs 177.45

Crores in Small Enterprises sector, Rs 132.90 crore in agriculture, Rs 20.06 crore for Micro Credit and Rs 8.96 crore for the education. Jammu region got Rs 658.89 crores in six months of which Rs 243.56 crore was in small enterprises, Rs 172.65 crore in housing, Rs 111.35 crores for agriculture, Rs 118.53 crore as Micro Credit and Rs 12.80 crore as education loan. The two districts that form Ladakh got Rs 21.23 crore which included Rs 17.27 crores for small enterprises, Rs 2.35 crore for housing, Rs 0.80 crore as Micro Credit, Rs 0.55 crore in agriculture and Rs 0.26 crore in education.

Under non-priority sector the banks disbursed an amount of Rs 666.71 crore in last six months across the state.