J&K State Level Bankers’ Committee (SLBC) should be the bankers’ conscience keeper in the State and it should accomplish its basic mission to be the forum for devising, designing and delivering the concept of financial inclusion in the region.

This was stated by Dr. Haseeb A. Drabu, Chairman of J&K Bank and Convenor SLBC in his inaugural address at the 71st meeting of the Committee held here today. While taking a critical look at the functioning of the Committee, Dr. Drabu laid emphasis on complete restructuring of the committee in terms of organization, approach and methodology. “The SLBC is not able to deliver as it lacks stakeholder ownership and enforceability. Not only this, the design is too large and unwieldy and too dispersed,” he said.

The meeting was attended by top brass of State administration including Financial Commissioner Planning, Financial Commissioner Agriculture, Principal secretary Labour and Employment, Commissioner Secretary Finance Department and heads of various Government departments, Regional Director RBI, Deputy General Manager NABARD and representatives of all banks / financial institutions operating in the State attended the meeting and deliberated upon various issues related to different sectors of economy.
Commenting over the functioning of the Committee, Dr Haseeb A. Drabu pointed out that today’s meet was delayed by four months; out of 35 banks operating in the state, 15 banks failed to submit relevant information; Annual Action Plan 2007-08 is not ready for 6 districts out of 21.

It is notable that the decisions taken in earlier meeting have not been implemented. In this regard, 68th SLBC had decided on contribution of banks towards EDI, but 11 banks out of the 35 haven’t complied. In 70th SLBC, a group on bundling of subsidies was formed and not a single meeting has been convened so far. Similarly there is no progress by sub-group on credit for handicrafts, pointed out Dr. Drabu.

In a very introspective tone Dr Drabu reiterated that mere upping the target was useless in the absence of a robust and clear roadmap for their achievements. All the member banks of SLBC are morally bound to show their commitment in letter and spirit towards the empowerment of the people of the state, he added.

Dr Drabu outlined a road map and suggested a top level apex committee which should work on agenda and issues raised and filtered by credit committee; monitoring and implementing committee; and administrative and regulatory committee. “The role of the apex committee will be to work out a comprehensive three year programme for financial inclusion with annual and half yearly benchmarks; to review and ratify the targets set by credit committee and to deescalate non-compliance,” he said.

He also desired SLBC to be a model for other states. “Our (SLBC) role is more critical in a situation where our state doesn’t compare well with other states in financial infrastructure and intermediation. Let us resurrect, revive, and reform the Committee and try to be a model for other states,” said Dr. Drabu.

Among other suggestion in revamping the SLBC, he suggested to have SLBC convention of all stakeholders in January and workshops in Srinagar and Jammu to work on special focus areas and decide on the theme.

Reserve Bank of India Regional Director appreciated the concepts put forward by Dr. Haseeb Drabu. “The model given by Dr Drabu can be replicated in other states and can go a long way in making these committees more thematic in nature,” he said. Top functionaries of the government also welcomed the overhauling concept of SLBC to achieve the desired results.

In agriculture sector, the banks at the end of March 31, 2007, have disbursed an amount of Rs.225.72 crore to 32135 beneficiaries as against the annual target of Rs.457.25 crore. It is notable that the banks were supposed to cover 115928 beneficiaries during the said period. But the banks have been able to achieve only 49% financial target and 28% physical target under the sector. It is also worth mentioning that out of this achievement, Rs.112.59 crore have been disbursed under crop loan in favour of 18992 beneficiaries. While analyzing quantum wise disbursements, the major contributor has been J&K bank with Rs.120.24 crore.

J&K Bank has been major contributor to the achievements under industries sector. Out of total disbursement of Rs.352.20 crore at the end of March 2007, as against an annual target of Rs.334.36 crore, J&K Bank has granted loans under this sector to the tune of Rs.119.6 Crore. Even as all banks have achieved the target financially (105%), the target achieved in physical term has been just 30%.
On services sector, the banks have surpassed the financial target, which has been recorded at Rs.789.80 crore at the end of the March 2007, as against the annual target of Rs.652.97 Crore. Physical targets have been recorded at 38420 beneficiaries as against 42812 beneficiaries.