JK Bank Reaches Out To Priority Sector, Disburses Rs 1, 566.31 Cr

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Ensure 100% Coverage Of Farmers Under KCC: Madhav Lal

JAMMU – Banks operating in J&K State have extended credit facilities aggregating Rs.2,403.08 Crores in favour of 1,60,204 beneficiaries during the first six months of the CFY ended 30th September 2012 against annual target of Rs.6,094.50 Crores for 3,54,302 beneficiaries under Priority Sector, thereby registering achievement of 39%. J&K Bank alone has disbursed Rs.1,566.31 Crore against target of Rs.3,123.22 Crore, thereby achieving 50% of the target under Annual Credit Plan. This accounts for 65% of the total priority sector credit disbursed by all banks in the State. This was revealed by . Mushtaq Ahmad, Chairman & CEO, J&K Bank (Convenor J&K SLBC), at the 87thmeeting 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 banks in the State for the six months ended 30th September 2012.

The meeting was presided over by Shri Madhav Lal, Chief Secretary, J&K Government and was attended by the Principal Secretary, Planning & Development . B. B. Vyas,  Commissioner / Secretary Labour and Employment . Yedullah, Commissioner / Secretary, Agriculture Production . Shaleen Kabra, Commissioner / Secretary Rural Development, . F. A. Peer, Commissioner / Secretary, Information Technology . Bipul Pathak, Regional Director, Reserve Bank of India, . K. K. Saraf, other senior officers of Banks, Reserve Bank of India, NABARD, State / Central Government Departments and Developmental Agencies.

The Chief Secretary, Madhav Lal, in his presidential address stressed the need for a greater cooperation between the Govt. Departments and the Financial Institutions operating in the State for achieving better results.

Taking a strong note of the slackness in issuance of Kissan Credit Cards (KCCs) and non-achievement of the target of 100% coverage of farmers under KCC Scheme by 30th September 2012, Chief Secretary directed Commissioner / Secretary, Agriculture Production Department and other functionaries to organize camps in different villages for issuance of KCCs by banks. He directed that Deputy Commissioners should ensure to visit these camps and Gram Panchayats should also be taken on board, so that the target of 100% coverage under KCC is achieved during the CFY.

On reviewing the position that PNB, SBI and other banks which had not achieved any progress in real terms, the Chief Secretary while rejecting their arguments directed them to complete the targets within the prescribed timelines for opening of accounts, delivery of banking services and enabling Electronic Benefit Transfer (EBT) as per the government directives without further delay.

Chief Secretary impressed upon the banks and other concerned functionaries to take concrete steps to ensure that the Credit Deposit Ratio of 40% is achieved by the end of March, 2013 as advised by the Hon’ble Governor, RBI during his visit to the State.

Chairman & CEO J&K Bank, while reviewing sector-wise performance of banks stated that under Agriculture sector banks have extended credit facilities aggregating Rs.1,038.63 Crore to 1,09,334 beneficiaries up to 30th September 2012 against target of Rs.1,771.85 Crores favouring 2,10,675 beneficiaries, registering achievement of 59%.

Commenting on the performance of banks under Government Sponsored Schemes in the State, Chairman and CEO J&K Bank stated that under five major Government Sponsored Schemes, viz. NRLM (SGSY), PMEGP, JKSES, SJSRY and SC/ST/OBC, banks have disbursed an amount of Rs.71.79 Crores in favour of 4,608 beneficiaries in all the three regions of the State against the annual target of Rs.411.75 Crore for 27,475 beneficiaries, thereby recording performance of 17% of the target in financial as well as physical terms.  Chairman observed that the performance of banks under this segment has not been satisfactory. However, considering the seriousness of banks as well as the State Government in creation of employment generation opportunities Chairman observed that the performance is expected to show substantial improvement during the remaining months of the CFY.

Chairman emphasized that a pivotal role devolves on the extension agencies in proper identification of economically viable schemes and selection of genuine entrepreneurs to keep the level of case rejection by banks at the minimum and ensuring post-disbursement supervision, handholding and monitoring for preventing high mortality and improving credit servicing. 

Chairman and CEO of J&K Bank stated that the banks have been playing a significant role in the economic revival of the State, but they continue to face difficulties in recovery of loans, particularly those disbursed under Government Sponsored Schemes. He stated that importance of recovery of bank dues for recycling of funds needs no emphasis.

Regarding Credit Deposit Ratio, Chairman and CEO of J&K Bank commented that CD Ratio of banks in the State as on 30th September 2012 stood at 36.53% compared to 35.75% as on 30th September 2011 indicating a marginal increase of 0.78%. Chairman remarked that since all the banks are committed to the Hon’ble Governor, RBI, Dr. D. Subbarao, that CD Ratio would be enhanced to the minimum level of 40% by the end of March, 2013 and expressed optimism that banks will put in all efforts to achieve the desired CD Ratio.

Giving progress in respect of providing banking services to the unbanked areas of the State, Chairman stated that under “Swabhimaan” campaign / Financial Inclusion Programme, 784 villages out of the allocated 795 villages having population over 2000 have already been covered. Under “Extension of Swabhimaan” campaign, 600 villages out of 1393 identified villages in the population segment of 1000-2000, have already been covered upto 30th September 2012. He stated that J&K Bank has covered 504 such villages out of its allocated 1093 villages.

Chairman emphasized that State Government should come forward with measures, which would enable banks to recover their overdues expeditiously and take necessary steps for removing the disabling factors to facilitate loan recovery and creating a responsive credit climate by legislating SARFAESI Act, which would help banks / financial institutions operating in the State to improve debt recovery from the defaulting borrowers.

On behalf of the banking fraternity Chairman & CEO J&K Bank assured that there would be no let up in their efforts in implementing the Government Sponsored Programmes aimed at poverty alleviation and fighting the menace of un-employment confronting the State.

The forum decided to chalk out strategy for streamlining the mechanism of release of subsidy in respect of Government Sponsored Schemes, so as to ensure that flow of credit under these schemes is streamlined and improved.

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