28th May 2012
Srinagar
85th SLBC reviews banks' performance : J&K Bank outperforms others, achieves 184% credit targets
Terming key traditional economic sectors like tourism, agriculture with its allied activities like food processing and handicrafts as drivers of growth in the state economy, Chief Minister Omar Abdullah has asked the banks operating in the state to lend comprehensively in these sectors.
Speaking at the 85th meeting of the State Level Bankers' Committee held here at SKICC, Chief Minister hailed J&K Bank for surpassing the target alloted to the bank in priority sector for the FY 2011-12. "J&K Bank has been showing significant growth and commendable results. And it is good to know that it has surpassed the Annual Credit Plan (ACP) targets set by SLBC", he said, adding, "however, J&K Bank being the state's financial backbone needs to further emphasize on credit dispensation within the state of J&K".
Taking a dig at other banks operating in the state of J&K, Chief Minister questioned the modus operandi of these banks viz viz lending patterns and parameters adopted by them in the state. It reflects that not much of interest is shown in achieving the targets set by SLBC, he said.
"If you are mobilizing deposits here, why don't you lend here. That is why we have been expressing concern on the declining CD ratio. Credit dispensation, especially in priority sector, needs to be pursued vigorously. If deposits are growing, advances must grow. Otherwise it calls for an unhealthy situation and injurious economy", he emphasized.
Underlining the need for issuance of Kissan Credit Cards (KCC) on priority basis, Omar Abdullah asked the banks to ensure 100% KCC distribution by first week of October 2012.
Chief Minister informed the gathering that there was a significant forward movement on the issues concerning EBT (Electronic Benefit Transfer Scheme) and that it will soon be happening. "We will start with the NREGA", he said.
Pertinently, banks operating in J&K State have extended credit facilities aggregating Rs.3,880.84 Crore in favour of 1,79,180 beneficiaries against target of Rs.3,619.69 Crore for 2,37,892 beneficiaries under Priority Sector during financial year ended March, 2012, thereby registering achievement of 107% in financial terms. J&K Bank alone has disbursed Rs.2,738.94 Crore against the target of Rs.1,492.44 Crore, thereby achieving 184% of its annual ACP target, which accounts for an achievement of 70% of the total priority sector credit disbursed by all banks in the State.
Finance Minister Abdul Rahim Rather, in his speech called for respecting of targets set by SLBC. "J&K Bank continues to play its role but other banks too need to improve their credit outflow within the J&K state".
While asking banks to evenly balance their SLBC targets under various sectors, Rather said, "Targets are to be met inclusively as well as exclusively. Don't set priorities within priority sector. Outperformance in a particular head of priority sector is appreciable but it should not be at the cost of other heads/ sectors. Added impetus on one particular sector leaves other sectors credit starved, which can have serious implications on the state's economy".
On SARFEASI Act which has long been a concern of bankers, Rather said that government was aware of the bankers' concerns and that it was working out a mechanism through which ‘we can address those concerns without changing the spirit of the related land laws of the state'.
Chief Secretary, J&K Government, Mr. Madhav Lal, while highlighting the importance of agriculture and handicrafts in the economic development of the state, asked the banks to extend Kissan Credit card and Artisan Credit card facility to the farmers and artisans respectively.
In his address Mushtaq Ahmad, Chairman & CEO J&K Bank (convener SLBC) described Financial Inclusion as the highest national priority for extending benefits of economic prosperity to the excluded segments and realizing the objective of inclusive growth, for which a number of initiatives have been launched by the Government of India to be prioritized and accomplished as per targets.
He stated that the progress in respect of the Financial Inclusion Plan (FIP) of J&K State for providing of banking services through various ICT-based banking outlets including BCs in the 795 identified un-banked villages having population over 2000 is encouraging, as 727 villages have already been covered by the end of 31st March, 2012. He expressed the hope that the left over 68 villages would be covered very shortly.
He informed that GoI, MoF have recently announced the timelines, i.e. 31st March 2013, for the second phase of coverage of the un-banked villages having population of over 1000 but less than 2000 and expressed optimism that the concerned participating banks will proceed forward seriously and take concrete steps to accomplish the target within the prescribed timelines.
The Chairman expressed satisfaction that there are no more un-banked blocks in the State as new bank branches have since been opened in all the 5 such blocks identified earlier stand. He, however, commented that that the process of implementation of the Branch Expansion Plan in the State has been slow and desired that banks shall expedite the process and ensure opening regular brick and mortar branches in larger habitations with population of 5000 within the prescribed timelines and as per the directions of GoI, MoF directives.
He expressed satisfaction that continuous focus to improve has yielded desired results and a performance of 110% of the target in financial and & 51% in physical terms has been registered during the FY 2011-12 for the first time ever. During the period under review the credit disbursement under sponsored schemes has increased to Rs.237.36 Crore as on 31.03.2012 as compared to Rs.190.49 Crore as on 31.03.2011. He also expressed the hope that considering the seriousness of banks as well as the State Government for creation of more & more employment generation opportunities and ventures, the performance will further improve in future.
While describing sector-wise performance of banks under ACP as at the FY 2011-12, the Chairman stated that under Agriculture sector banks have extended credit facilities aggregating Rs.929.16 Crores to 69,853 beneficiaries against a target of Rs.846.06 Crore favouring 1,38,748 beneficiaries, registering an achievement of 110%.
Under Small Enterprises Sector, banks have disbursed credit facilities aggregating Rs.1,381.81 Crore in favour of 41,996 beneficiaries against ACP target of Rs.1,725.95 Crore in favour of 59,531 beneficiaries, thus registering an achievement of 70% in financial terms.
Under Micro Credit Sector, banks have disbursed credit facilities aggregating Rs.350.53 Crore in favour of 19,752 beneficiaries against ACP target of Rs.476.41 for 26,005 beneficiaries, registering an achievement of 74% in financial terms.
Under Education Sector, banks have extended credit facilities aggregating Rs.67.69 Crore in favour of 4,096 beneficiaries against ACP target of Rs.151.36 Crores for 4,686 beneficiaries, registering an achievement of 45% in financial terms, and Under Housing Sector, banks have disbursed an amount of Rs.1,151.65 Crore in favour of 43,483 beneficiaries against ACP target of Rs.419.91 Crore for 8,922 beneficiaries, registering an achievement of 274% in financial terms.
Commenting on the performance of banks under Government Sponsored Schemes in the State, the Chairman and CEO of J&K Bank stated that against the Annual ACP target of 214.90 Crore for 18,788 beneficiaries for all banks operating in the State, the achievement of banks at the end of December 2011 under five major Government Sponsored Schemes, viz. SGSY, PMEGP, JKSES, SJSRY and SC/ST/OBC has been of the order of Rs.237.36 Crore spread over 15,584 beneficiaries in all the three regions of the State.
Among the other dignitaries present on the occasion were Chief Secretary, J&K Government, Mr. Madhav Lal, Principal Secretary (Finance) Mr. M. I. Khanday, Principal Secretary (Planning & Dev.) Mr. B. B. Vyas, Commissioner/ Secretary (Industries & Commerce) Mr. Shantmanu, Commissioner / Secretary (Labour and Employment) Mr. Yadullah, Commissioner/Secretary (Agriculture Production Department) Mr. Shaleem Kabra, Commissioner/Secretary (Rural Development), Mr. F. A. Peer, Commissioner/ Secretary (Revenue) Mr. B. A. Runyal, Director, Department of Financial Services, GoI, MoF, Shri Sanjeev Jindal, Regional Director (for J&K) RBI Mr. K. K. Saraf, Chief General Manager, NABARD, Mr. S. C. Rabra, other senior officers of banks, Reserve Bank of India, NABARD, State Government departments and developmental agencies.
Speaking at the 85th meeting of the State Level Bankers' Committee held here at SKICC, Chief Minister hailed J&K Bank for surpassing the target alloted to the bank in priority sector for the FY 2011-12. "J&K Bank has been showing significant growth and commendable results. And it is good to know that it has surpassed the Annual Credit Plan (ACP) targets set by SLBC", he said, adding, "however, J&K Bank being the state's financial backbone needs to further emphasize on credit dispensation within the state of J&K".
Taking a dig at other banks operating in the state of J&K, Chief Minister questioned the modus operandi of these banks viz viz lending patterns and parameters adopted by them in the state. It reflects that not much of interest is shown in achieving the targets set by SLBC, he said.
"If you are mobilizing deposits here, why don't you lend here. That is why we have been expressing concern on the declining CD ratio. Credit dispensation, especially in priority sector, needs to be pursued vigorously. If deposits are growing, advances must grow. Otherwise it calls for an unhealthy situation and injurious economy", he emphasized.
Underlining the need for issuance of Kissan Credit Cards (KCC) on priority basis, Omar Abdullah asked the banks to ensure 100% KCC distribution by first week of October 2012.
Chief Minister informed the gathering that there was a significant forward movement on the issues concerning EBT (Electronic Benefit Transfer Scheme) and that it will soon be happening. "We will start with the NREGA", he said.
Pertinently, banks operating in J&K State have extended credit facilities aggregating Rs.3,880.84 Crore in favour of 1,79,180 beneficiaries against target of Rs.3,619.69 Crore for 2,37,892 beneficiaries under Priority Sector during financial year ended March, 2012, thereby registering achievement of 107% in financial terms. J&K Bank alone has disbursed Rs.2,738.94 Crore against the target of Rs.1,492.44 Crore, thereby achieving 184% of its annual ACP target, which accounts for an achievement of 70% of the total priority sector credit disbursed by all banks in the State.
Finance Minister Abdul Rahim Rather, in his speech called for respecting of targets set by SLBC. "J&K Bank continues to play its role but other banks too need to improve their credit outflow within the J&K state".
While asking banks to evenly balance their SLBC targets under various sectors, Rather said, "Targets are to be met inclusively as well as exclusively. Don't set priorities within priority sector. Outperformance in a particular head of priority sector is appreciable but it should not be at the cost of other heads/ sectors. Added impetus on one particular sector leaves other sectors credit starved, which can have serious implications on the state's economy".
On SARFEASI Act which has long been a concern of bankers, Rather said that government was aware of the bankers' concerns and that it was working out a mechanism through which ‘we can address those concerns without changing the spirit of the related land laws of the state'.
Chief Secretary, J&K Government, Mr. Madhav Lal, while highlighting the importance of agriculture and handicrafts in the economic development of the state, asked the banks to extend Kissan Credit card and Artisan Credit card facility to the farmers and artisans respectively.
In his address Mushtaq Ahmad, Chairman & CEO J&K Bank (convener SLBC) described Financial Inclusion as the highest national priority for extending benefits of economic prosperity to the excluded segments and realizing the objective of inclusive growth, for which a number of initiatives have been launched by the Government of India to be prioritized and accomplished as per targets.
He stated that the progress in respect of the Financial Inclusion Plan (FIP) of J&K State for providing of banking services through various ICT-based banking outlets including BCs in the 795 identified un-banked villages having population over 2000 is encouraging, as 727 villages have already been covered by the end of 31st March, 2012. He expressed the hope that the left over 68 villages would be covered very shortly.
He informed that GoI, MoF have recently announced the timelines, i.e. 31st March 2013, for the second phase of coverage of the un-banked villages having population of over 1000 but less than 2000 and expressed optimism that the concerned participating banks will proceed forward seriously and take concrete steps to accomplish the target within the prescribed timelines.
The Chairman expressed satisfaction that there are no more un-banked blocks in the State as new bank branches have since been opened in all the 5 such blocks identified earlier stand. He, however, commented that that the process of implementation of the Branch Expansion Plan in the State has been slow and desired that banks shall expedite the process and ensure opening regular brick and mortar branches in larger habitations with population of 5000 within the prescribed timelines and as per the directions of GoI, MoF directives.
He expressed satisfaction that continuous focus to improve has yielded desired results and a performance of 110% of the target in financial and & 51% in physical terms has been registered during the FY 2011-12 for the first time ever. During the period under review the credit disbursement under sponsored schemes has increased to Rs.237.36 Crore as on 31.03.2012 as compared to Rs.190.49 Crore as on 31.03.2011. He also expressed the hope that considering the seriousness of banks as well as the State Government for creation of more & more employment generation opportunities and ventures, the performance will further improve in future.
While describing sector-wise performance of banks under ACP as at the FY 2011-12, the Chairman stated that under Agriculture sector banks have extended credit facilities aggregating Rs.929.16 Crores to 69,853 beneficiaries against a target of Rs.846.06 Crore favouring 1,38,748 beneficiaries, registering an achievement of 110%.
Under Small Enterprises Sector, banks have disbursed credit facilities aggregating Rs.1,381.81 Crore in favour of 41,996 beneficiaries against ACP target of Rs.1,725.95 Crore in favour of 59,531 beneficiaries, thus registering an achievement of 70% in financial terms.
Under Micro Credit Sector, banks have disbursed credit facilities aggregating Rs.350.53 Crore in favour of 19,752 beneficiaries against ACP target of Rs.476.41 for 26,005 beneficiaries, registering an achievement of 74% in financial terms.
Under Education Sector, banks have extended credit facilities aggregating Rs.67.69 Crore in favour of 4,096 beneficiaries against ACP target of Rs.151.36 Crores for 4,686 beneficiaries, registering an achievement of 45% in financial terms, and Under Housing Sector, banks have disbursed an amount of Rs.1,151.65 Crore in favour of 43,483 beneficiaries against ACP target of Rs.419.91 Crore for 8,922 beneficiaries, registering an achievement of 274% in financial terms.
Commenting on the performance of banks under Government Sponsored Schemes in the State, the Chairman and CEO of J&K Bank stated that against the Annual ACP target of 214.90 Crore for 18,788 beneficiaries for all banks operating in the State, the achievement of banks at the end of December 2011 under five major Government Sponsored Schemes, viz. SGSY, PMEGP, JKSES, SJSRY and SC/ST/OBC has been of the order of Rs.237.36 Crore spread over 15,584 beneficiaries in all the three regions of the State.
Among the other dignitaries present on the occasion were Chief Secretary, J&K Government, Mr. Madhav Lal, Principal Secretary (Finance) Mr. M. I. Khanday, Principal Secretary (Planning & Dev.) Mr. B. B. Vyas, Commissioner/ Secretary (Industries & Commerce) Mr. Shantmanu, Commissioner / Secretary (Labour and Employment) Mr. Yadullah, Commissioner/Secretary (Agriculture Production Department) Mr. Shaleem Kabra, Commissioner/Secretary (Rural Development), Mr. F. A. Peer, Commissioner/ Secretary (Revenue) Mr. B. A. Runyal, Director, Department of Financial Services, GoI, MoF, Shri Sanjeev Jindal, Regional Director (for J&K) RBI Mr. K. K. Saraf, Chief General Manager, NABARD, Mr. S. C. Rabra, other senior officers of banks, Reserve Bank of India, NABARD, State Government departments and developmental agencies.