Lends 65 pc of total credit in the state during FY 2013-14

All the banks operating in J&K State have disbursed total credit of Rs 10268.58 Crore to 413488 beneficiaries under Priority as well as Non-priority sectors thereby registering an achievement of 63% during the Financial Year 2013-14,.

J&K Bank alone disbursed Rs 6696.20 Crore which is 65% of the total credit disbursed in the state during FY 2013-14.

This was stated by Mushtaq Ahmad, Chairman & CEO, J&K Bank (Convenor J&K SLBC), while addressing the 93rd meeting of J&K State Level Bankers’ Committee (SLBC) today at SKICC, Srinagar.

Minister for Finance & Ladakh Affairs Abdul Rahim Rather presided over the meeting.

J&K Chief Secretary M Iqbal Khanday, Principal Secretary Planning & Development B R Sharma, Principal Secretary (Finance) B. B. Vyas, Commissioner/ Secretaries of State Government, Regional Director RBI (J&K State) K K Saraf, General Manager NABARD Ranbir Singh, Dy. Secretary, DFS (MoF), GoI A K Dogra other senior officers of banks, RBI, NABARD, state government departments & developmental agencies attended the meeting.

Jenab Abdul Rahim Rather appreciated the banks for improving the credit-deposit (CD) ratio which is above 40% in aggregate.

“Even as it’s a significant achievement to surpass the CD ratio target, overall progress still remains considerably below the national benchmark of 60%, hence banking fraternity need to redouble their efforts to meet the benchmark in the current financial year”, he said.

He also 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 had improved to 29.59% as on 31st March 2014 compared to 24.62% as on 31st March 2013.

He added, “Though, the share of agriculture advances to total advances has improved to 15.21% as on 31st March 2014 yet strenuous efforts are required not only to achieve the benchmark of 18% but to surpass it. The MSE sector which holds a high potential of generating employment of the educated youth need special attention of banks.”

He expressed satisfaction that Phase-I of Financial Inclusion Plan had been completed successfully by all the concerned banks by providing coverage to the identified 795 villages having population above 2000. As regards Phase-II, he appreciated the concerned banks for having surpassed the cumulative targets as of 31st March 2014.

On the implementation of Electronic Benefit Transfer (EBT) scheme which is a revolutionary concept in e-governance, he expressed that EBT Scheme has been successfully launched in 6 pilot districts of the State in the first Phase  and efforts are on to extend the coverage of the scheme to remaining 16 districts. He however, impressed upon all the stakeholders to strive hard for completing the process in the shortest possible time within the current financial year.

While expressing satisfaction over the activities of the Rural Self Employment Training Institutes (RSETIs) set by J&K Bank & State Bank of India in all the 22 Districts of the State as per their Lead bank responsibilities, he said that it was high time that these institutes were made functional from their own premises.

M Iqbal Khanday, Chief Secretary J&K State impressed upon the banks and Financial Institutions operating in the State to extend the credit to the underprivileged sections of the society. He also emphasized that strenuous efforts are required for achieving 100% target under KCC Scheme by 30th June 2014 being the final timeline. The low performance under MSE sector is a serious concern which needs immediate attention, he stated.

He assured the participants that he will personally monitor allotment of land to for setting up of RSETI’s to the banks.

During his address Chairman & CEO, J&K Bank, Mushtaq Ahmad emphasized that access to financial system by the underprivileged and vulnerable groups was the prerequisite for poverty alleviation and social cohesion.

“Promotion of inclusive growth and financial empowerment of people has always remained our priority,” he said.

Commenting on the performance of banks under Government Sponsored Schemes in the State, the Chairman stated that under five major Government Sponsored Schemes, viz. NRLM (SGSY), PMEGP, JKSES, SJSRY and SC/ST/OBC, banks have disbursed Rs 242.33 Crore in favour of 10389 beneficiaries in all the three regions of the State against the annual target of Rs 407.33 Crore for 30712 beneficiaries, thereby registering achievement of 59% of the target in financial and 34% in physical terms. Observing that the achievement is not satisfactory by any standards he stressed upon all the stakeholders to focus on this vital segment.

Regarding the GoI, MoF initiative for 100% coverage of farmers under Kissan Credit Card Scheme Mushtaq Ahmad stated that banks have been able to achieve only 73% of target upto the end of March 2014 by sanctioning 744470 KCCs against the target to cover 10.17 lakh farm operating families in J&K State.

He impressed upon the banks and concerned government departments to strive hard to fulfill the commitment for achieving 100% target under KCC by the extended timeline i. e 30th June 2014.
The performance under this vital segment was a matter of concern, he said.

The Annual Credit Plan of Rs19993.88 Crore, covering 882801 beneficiaries for the Financial Year 2014-15, was approved by the House.

The Financial Literacy Material for use as a standard curriculum during Financial Literacy Camps was also formally launched by the Finance Minister on this occasion

Sector-wise performance of banks under Priority Sector as stated by the Chairman J&K Bank

Agriculture Sector
In this sector the banks have provided credit aggregating to Rs.2033.93 Crore in favour of 168209 beneficiaries against a target of Rs.3212.98 Crore favouring 391773 beneficiaries, registering an achievement of 63% in financial terms and 43% in physical terms, during the Financial Year 2013-14.

Micro & Small Enterprises Sector
Against the annual target of Rs. 3572.86 in favour of 134362 beneficiaries, banks have disbursed total amount of Rs.2080.51 Crore in favour of 69748 beneficiaries during the said period which works out to 58% achievement in financial terms and 52% in physical terms.

Education Sector
Against annual target of Rs 417.52 Crore in favour of 10916 beneficiaries, banks have disbursed total amount of Rs.80.02 Crore in favour of 4358 beneficiaries, registering an achievement of 19% in financial terms and 40% in physical terms, during the Financial Year 2013-14
Chairman Mushtaq Ahmad took note of performance of the banks in this sector and said that it could not be termed as satisfactory by any standards.

Housing Sector
In this sector banks have disbursed credit amounting to Rs 972.27 Crore in favour of 33642 beneficiaries against a target of Rs 2040.33 Crore favouring 33124 beneficiaries, registering an achievement of 48% in financial terms and 102% in physical terms, during the said period.

Other Sectors
Against the annual target of Rs 898.77 Crore in favour of 43314 beneficiaries banks have disbursed total amount of Rs 534.41 Crore in favour of 30962 beneficiaries during the Financial Year. This works out to 59% achievement in financial terms and 71% in physical terms.

Non-Priority Sector
Under the sector, the banks have disbursed Rs 4567.43 Crore favouring 106569 beneficiaries against the annual target of Rs.6180.22 Crore favouring 167745 beneficiaries, thereby achieving 74% of target in financial terms and 64% in physical terms.