14th December 2011
Srinagar
83rd SLBC meeting : J&K Bank major contributor to priority credit Disburses 76% of the total Credit
J&K Bank alone has disbursed Rs.1,380.63 Crore against the target of Rs.1,492.44 Crore, thereby achieving 93% of its annual ACP target, which accounts for 76% of the total priority sector credit disbursed by all banks in the State.
The Banks operating in J&K State have, during H1 of the FY 2011-12, extended credit facilities aggregating Rs.1,814.82 Crores in favour of 85,111 beneficiaries against target of Rs.3619.69 Crores for 2,37,892 beneficiaries under Priority Sector, thereby registering achievement of 50% in financial terms.
Chairman & CEO, J&K Bank (Convenor J&K SLBC), Mr. Mushtaq Ahmad, stated this at the 83rd meeting of J&K State Level Bankers' Committee (SLBC) held today at ITC Hotel, Fortune Inn, Riviera, Jammu, while presenting a review report on performance of the banks in the state.
The meeting was presided over by Madhav Lal, Chief Secretary, J&K Government and was attended among others by M. I. Khanday, Principal Secretary, Agriculture Production Department, B. B. Vyas, Principal Secretary, Planning, Sudhanshu Panday, Commissioner / Secretary Finance, K. K. Saraf, Regional Director RBI (for J&K State) and Sanjeev Jindal, Director, Department of Financial Services, Ministry of Finance, Government of India. Umang Narula, Commissioner / Secretary, Industries & Commerce, Yedullah, Commissioner / Secretary Labour and Employment, F. A. Peer, Commissioner / Secretary Rural Development, S. C. Rabra, Chief General Manager, NABARD, senior officers of Banks, RBI, NABARD, State Government departments and developmental agencies also attended the meeting.
In his key note address, Chief Secretary expressed concern that other than J&K Bank, the performance of banks in flow of credit to the priority sector in the State was dismal and far from satisfactory.
He impressed upon all the banks to take concrete steps to ensure that their performance improves.
Expressing optimism that by the time next SLBC meeting takes place, there would be significant and visible improvement in the ground situation, he exhorted all the banks operating in J&K state to improve the poor credit Deposit ratio.
The Chief Secretary also laid emphasis on expanding coverage of farming community under KCC to achieve 100% target within fixed time frame.
Meanwhile he advised the concerned administrative department to take all necessary measures for promoting the Artisans Credit Card Scheme in the State and expressed optimism that by the time the next SLBC meeting is held there should be significant improvement in the performance of banks in this regard.
Earlier, Chairman & CEO J&K Bank, while reviewing sector-wise performance of banks during H1 of the financial year 2011-12, stated that under Agriculture sector banks have extended credit facilities aggregating Rs.422.35 Crores to 32,252 beneficiaries against a target of Rs.846.06 Crores favouring 1,38,748 beneficiaries, registering achievement of about 50%. Under Small Enterprises Sector, banks have disbursed credit facilities aggregating Rs.592.76 Crores in favour 17,435 beneficiaries against ACP target of Rs.1725.95 Crores in favour of 59,531 beneficiaries, thus registering achievement of 34% in financial terms. In Micro Credit Sector, banks have disbursed credit facilities aggregating Rs.108.41 Crores in favour of 6,576 beneficiaries against ACP target of Rs.476.41 for 26,005 beneficiaries, registering an achievement of 23% in financial terms.
In Education Sector, he said, the banks have extended credit facilities aggregating Rs.31.09 Crores in favour of 2,317 beneficiaries against ACP target of Rs.151.36 Crores for 4,686 beneficiaries, registering achievement of 20% in financial terms. Similarly under Housing Sector, banks have disbursed Rs.660.21 Crores in favour of 26,531 beneficiaries against ACP target of Rs.419.91 Crore for 8,922 beneficiaries, registering achievement of 157% in financial terms.
Commenting on the performance of Banks under Government Sponsored Schemes in the State, he said that under five major Government Sponsored Schemes, viz. SGSY, PMEGP, JKSES, SJSRY and SC/ST/OBC, banks have disbursed Rs.75.11 Crores in favour of 5,283 beneficiaries against annual target of Rs.221.73 Crore for 18,837 beneficiaries, thereby recording performance of 34% & 28% of the target in financial and physical terms respectively. He observed that though quantum of loans granted under Government Sponsored Schemes has increased from Rs.50.03 Crore as on 30.09.2010 to Rs.75.11 Crore as on 30.09.2011, yet the performance of banks vis-à-vis the targets has remained far below the desired level.
He urged bankers to change their mindset and realize their responsibilities and duties towards the society.
The Chairman expressed the hope that the seriousness of banks as well as the state government in creating employment opportunities augurs well for the future performance.
He emphasized that the extension agencies have to shoulder an important responsibility while identifying economically viable schemes and selection of genuine entrepreneurs and beneficiaries to keep the level of case rejection by banks at the minimum.
Regarding Credit Deposit Ratio, the Chairman and CEO of J&K Bank commented that CD Ratio of banks in the State as on 30th September 2011 stood at 35.71% against 40.06% as on 30th September 2010 thereby registering a sharp decline of 4.35%.
He stated that the State Government should take necessary steps for the removal of disabling factors to facilitate loan recovery thereby developing a conducive credit climate in the State. It was stated that legislating of SARFAESI Act, would help banks / financial institutions to improve their debt recovery from the willful defaulters.
The Banks operating in J&K State have, during H1 of the FY 2011-12, extended credit facilities aggregating Rs.1,814.82 Crores in favour of 85,111 beneficiaries against target of Rs.3619.69 Crores for 2,37,892 beneficiaries under Priority Sector, thereby registering achievement of 50% in financial terms.
Chairman & CEO, J&K Bank (Convenor J&K SLBC), Mr. Mushtaq Ahmad, stated this at the 83rd meeting of J&K State Level Bankers' Committee (SLBC) held today at ITC Hotel, Fortune Inn, Riviera, Jammu, while presenting a review report on performance of the banks in the state.
The meeting was presided over by Madhav Lal, Chief Secretary, J&K Government and was attended among others by M. I. Khanday, Principal Secretary, Agriculture Production Department, B. B. Vyas, Principal Secretary, Planning, Sudhanshu Panday, Commissioner / Secretary Finance, K. K. Saraf, Regional Director RBI (for J&K State) and Sanjeev Jindal, Director, Department of Financial Services, Ministry of Finance, Government of India. Umang Narula, Commissioner / Secretary, Industries & Commerce, Yedullah, Commissioner / Secretary Labour and Employment, F. A. Peer, Commissioner / Secretary Rural Development, S. C. Rabra, Chief General Manager, NABARD, senior officers of Banks, RBI, NABARD, State Government departments and developmental agencies also attended the meeting.
In his key note address, Chief Secretary expressed concern that other than J&K Bank, the performance of banks in flow of credit to the priority sector in the State was dismal and far from satisfactory.
He impressed upon all the banks to take concrete steps to ensure that their performance improves.
Expressing optimism that by the time next SLBC meeting takes place, there would be significant and visible improvement in the ground situation, he exhorted all the banks operating in J&K state to improve the poor credit Deposit ratio.
The Chief Secretary also laid emphasis on expanding coverage of farming community under KCC to achieve 100% target within fixed time frame.
Meanwhile he advised the concerned administrative department to take all necessary measures for promoting the Artisans Credit Card Scheme in the State and expressed optimism that by the time the next SLBC meeting is held there should be significant improvement in the performance of banks in this regard.
Earlier, Chairman & CEO J&K Bank, while reviewing sector-wise performance of banks during H1 of the financial year 2011-12, stated that under Agriculture sector banks have extended credit facilities aggregating Rs.422.35 Crores to 32,252 beneficiaries against a target of Rs.846.06 Crores favouring 1,38,748 beneficiaries, registering achievement of about 50%. Under Small Enterprises Sector, banks have disbursed credit facilities aggregating Rs.592.76 Crores in favour 17,435 beneficiaries against ACP target of Rs.1725.95 Crores in favour of 59,531 beneficiaries, thus registering achievement of 34% in financial terms. In Micro Credit Sector, banks have disbursed credit facilities aggregating Rs.108.41 Crores in favour of 6,576 beneficiaries against ACP target of Rs.476.41 for 26,005 beneficiaries, registering an achievement of 23% in financial terms.
In Education Sector, he said, the banks have extended credit facilities aggregating Rs.31.09 Crores in favour of 2,317 beneficiaries against ACP target of Rs.151.36 Crores for 4,686 beneficiaries, registering achievement of 20% in financial terms. Similarly under Housing Sector, banks have disbursed Rs.660.21 Crores in favour of 26,531 beneficiaries against ACP target of Rs.419.91 Crore for 8,922 beneficiaries, registering achievement of 157% in financial terms.
Commenting on the performance of Banks under Government Sponsored Schemes in the State, he said that under five major Government Sponsored Schemes, viz. SGSY, PMEGP, JKSES, SJSRY and SC/ST/OBC, banks have disbursed Rs.75.11 Crores in favour of 5,283 beneficiaries against annual target of Rs.221.73 Crore for 18,837 beneficiaries, thereby recording performance of 34% & 28% of the target in financial and physical terms respectively. He observed that though quantum of loans granted under Government Sponsored Schemes has increased from Rs.50.03 Crore as on 30.09.2010 to Rs.75.11 Crore as on 30.09.2011, yet the performance of banks vis-à-vis the targets has remained far below the desired level.
He urged bankers to change their mindset and realize their responsibilities and duties towards the society.
The Chairman expressed the hope that the seriousness of banks as well as the state government in creating employment opportunities augurs well for the future performance.
He emphasized that the extension agencies have to shoulder an important responsibility while identifying economically viable schemes and selection of genuine entrepreneurs and beneficiaries to keep the level of case rejection by banks at the minimum.
Regarding Credit Deposit Ratio, the Chairman and CEO of J&K Bank commented that CD Ratio of banks in the State as on 30th September 2011 stood at 35.71% against 40.06% as on 30th September 2010 thereby registering a sharp decline of 4.35%.
He stated that the State Government should take necessary steps for the removal of disabling factors to facilitate loan recovery thereby developing a conducive credit climate in the State. It was stated that legislating of SARFAESI Act, would help banks / financial institutions to improve their debt recovery from the willful defaulters.