22nd December 2010
Jammu
J&K Bank alone disburses Rs.785.15 Crores to priority sector in 6 months<br><i>Banks disburse Rs.1202.51 Crores under Annual Credit Plan for H-1 ended Sept. 2010</i>
Banks operating in J&K State have, during the half year ended September,2010, extended credit facilities aggregating Rs. 1202.51 Crores in favour of 58,580 beneficiaries against target of Rs.2820.91 Crores to 207941 beneficiaries under Priority Sector, thereby registering achievement of 43% in financial terms and 28% in physical terms prescribed under Annual Action Plan, 2010-2011. J&K Bank alone has disbursed Rs785.15 Crore against the target of Rs.1103.14 Crore, thereby achieving 71% of its annual ACP target, which accounts for an achievement of 65% of the total priority sector credit disbursed by all banks in the State.
This was revealed by Mr. Mushtaq Ahmad, Chairman & CEO, J&K Bank (Convenor J&K SLBC), at the 80th meeting of J&K State Level Bankers' Committee (SLBC) held today at ITC Hotel, Fortune Inn, Rivieria, Jammu., while presenting a review report on performance of the banks in the state.
Jenab Abdul Rahim Rather, Hon'ble Finance Minister, J&K State presided over the meeting. The meeting was attended by Mr. S. S. Kapoor (IAS), Chief Secretary, J&K Government, Mr. Sudhanshu Panday (IAS), Commissioner Secretary Finance, Mr. F A Peer (IAS), Commissioner / Secretary Labour and Employment, Mr. Umang Narula (IAS), Commissioner/Secretary, Industries & Commerce, Mr.Arnab Roy, Regional Director Reserve Bank of India, Mr. A. K. Mehta, Executive Director J&K Bank, Mr. Ajit Singh, Executive President, J&K Bank, other senior officers of banks, Reserve Bank of India, NABARD, state government departments and developmental agencies.
In his inaugural address Jenab Abdul Rahim Rather Hon ble Finance Minister laid stress on achievement of credit targets, both financial as well as physical particularly in Agriculture Sector, Priority Sector and GSS and advised the Banks to put in extra efforts in order to achieve the minimum prescribed bench mark of 18% of their total lending in Agriculture Sector. He pointed out that although the overall achievement of banks at the end of the half year ended September 2010 was 43% yet the performance in identified thrust areas was far from satisfactory. The Honorable Minister stressed on the banks / sponsoring agencies to put in extra efforts for improving the performance under GSS. It was also desired by him that SLBC should work out a strategy for covering all eligible farmers in the J&K State under KCC Scheme in a time-bound manner.
While reviewing sector-wise performance of banks during the half- year ended September, 2010, the Chairman & CEO of J&K Bank stated that under Agriculture sector banks have extended credit facilities aggregating Rs.244.79 Crores to 25467 beneficiaries against a target of Rs.673.48 Crores favouring 124710 beneficiaries, registering an achievement of 36%.
Under Small Enterprises Sector, banks have disbursed credit facilities aggregating Rs.438.28 Crores in favour 11988 beneficiaries against ACP target of Rs.1430.64 Crores in favour of 48556 beneficiaries, thus registering an achievement of 31% in financial terms.
Under Micro Credit Sector, banks have disbursed credit facilities aggregating Rs.139.39 Crores in favour of 5211 beneficiaries against ACP target of Rs.454.27 for 25849 beneficiaries, registering an achievement of 31% in financial terms.
Under Education Sector, banks have extended credit facilities aggregating Rs.22.01 Crores in favour of 1105 beneficiaries against ACP target of Rs.80.75 Crores for 3544 beneficiaries, registering an achievement of 27% in financial terms.
Under Housing Sector, banks have disbursed amount of Rs.358.03 Crores in favour of 14809 beneficiaries against ACP target of Rs.181.77 Crore for 5282 beneficiaries, registering an achievement of 197% 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 under five major Government Sponsored Schemes, viz. SGSY, PMEGP, JKSES, SJSRY and SC/ST/OBC, banks have disbursed amount of Rs.50.03 Crores in favour of 3,795 beneficiaries in all the three regions of the State, thereby recording performance of 14% & 13% of the target in financial and physical terms respectively. The achievement is less as compared to credit delivery to GSS during the corresponding period of the previous year with disbursement of Rs.50.52 Crore to 4,786 beneficiaries (17% in financial as well as physical terms).
The Chairman and CEO of J&K Bank stated that the performance of banks has remained below the desired level for obvious reasons. However, considering the seriousness of banks as well as the State Government in creation of employment opportunities, the performance is expected to improve in the remaining period of the current financial year. The extension agencies have to play a pivotal role in identification of economically viable schemes and selection of genuine entrepreneurs 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 C. D. Ratio of banks in the State as on 30th September 2010 stood at 40.06% compared to the C. D. Ratio of 46.70% as on 30th September 2009. This was mainly attributed by him to the impact of disturbed conditions in the State particularly in the valley, which resulted in prolonged closure of all the business establishments. He, however, expressed the hope that with the return of normalcy in the valley and rest of the state, the position in respect of disbursement of credit would improve in the remaining period of the current financial year.
The 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. A suitable mechanism for recovery of loans extended would result in recycling of funds.
The Chairman and CEO of J&K Bank extended his gratitude to the State Government for having taken a proactive approach in making desired amendments for applicability of creation of Equitable Mortgage to whole of the State. He also expressed the hope that the State Government would take necessary steps for applicability of SARFAESI Act in the State as well as for creation of Central registry in the State, which would pave way for enhanced flow of credit and facilitate the banks/ financial Institutions in effecting faster recovery of outstanding debts from willful defaulters.
On behalf of the banking fraternity the Chairman & CEO of J&K Bank assured that there would be no let up in their efforts in implementing the Government Sponsored Programmes aimed at alleviation of poverty and fighting the menace of unemployment confronting the State.
The Chief Secretary, J&K State, in his concluding remarks stated that the SLBC forum should instead of indulging in fault finding play an interactive role for finding solutions to various issues and ensure committed and honest implementation of the decisions taken.
This was revealed by Mr. Mushtaq Ahmad, Chairman & CEO, J&K Bank (Convenor J&K SLBC), at the 80th meeting of J&K State Level Bankers' Committee (SLBC) held today at ITC Hotel, Fortune Inn, Rivieria, Jammu., while presenting a review report on performance of the banks in the state.
Jenab Abdul Rahim Rather, Hon'ble Finance Minister, J&K State presided over the meeting. The meeting was attended by Mr. S. S. Kapoor (IAS), Chief Secretary, J&K Government, Mr. Sudhanshu Panday (IAS), Commissioner Secretary Finance, Mr. F A Peer (IAS), Commissioner / Secretary Labour and Employment, Mr. Umang Narula (IAS), Commissioner/Secretary, Industries & Commerce, Mr.Arnab Roy, Regional Director Reserve Bank of India, Mr. A. K. Mehta, Executive Director J&K Bank, Mr. Ajit Singh, Executive President, J&K Bank, other senior officers of banks, Reserve Bank of India, NABARD, state government departments and developmental agencies.
In his inaugural address Jenab Abdul Rahim Rather Hon ble Finance Minister laid stress on achievement of credit targets, both financial as well as physical particularly in Agriculture Sector, Priority Sector and GSS and advised the Banks to put in extra efforts in order to achieve the minimum prescribed bench mark of 18% of their total lending in Agriculture Sector. He pointed out that although the overall achievement of banks at the end of the half year ended September 2010 was 43% yet the performance in identified thrust areas was far from satisfactory. The Honorable Minister stressed on the banks / sponsoring agencies to put in extra efforts for improving the performance under GSS. It was also desired by him that SLBC should work out a strategy for covering all eligible farmers in the J&K State under KCC Scheme in a time-bound manner.
While reviewing sector-wise performance of banks during the half- year ended September, 2010, the Chairman & CEO of J&K Bank stated that under Agriculture sector banks have extended credit facilities aggregating Rs.244.79 Crores to 25467 beneficiaries against a target of Rs.673.48 Crores favouring 124710 beneficiaries, registering an achievement of 36%.
Under Small Enterprises Sector, banks have disbursed credit facilities aggregating Rs.438.28 Crores in favour 11988 beneficiaries against ACP target of Rs.1430.64 Crores in favour of 48556 beneficiaries, thus registering an achievement of 31% in financial terms.
Under Micro Credit Sector, banks have disbursed credit facilities aggregating Rs.139.39 Crores in favour of 5211 beneficiaries against ACP target of Rs.454.27 for 25849 beneficiaries, registering an achievement of 31% in financial terms.
Under Education Sector, banks have extended credit facilities aggregating Rs.22.01 Crores in favour of 1105 beneficiaries against ACP target of Rs.80.75 Crores for 3544 beneficiaries, registering an achievement of 27% in financial terms.
Under Housing Sector, banks have disbursed amount of Rs.358.03 Crores in favour of 14809 beneficiaries against ACP target of Rs.181.77 Crore for 5282 beneficiaries, registering an achievement of 197% 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 under five major Government Sponsored Schemes, viz. SGSY, PMEGP, JKSES, SJSRY and SC/ST/OBC, banks have disbursed amount of Rs.50.03 Crores in favour of 3,795 beneficiaries in all the three regions of the State, thereby recording performance of 14% & 13% of the target in financial and physical terms respectively. The achievement is less as compared to credit delivery to GSS during the corresponding period of the previous year with disbursement of Rs.50.52 Crore to 4,786 beneficiaries (17% in financial as well as physical terms).
The Chairman and CEO of J&K Bank stated that the performance of banks has remained below the desired level for obvious reasons. However, considering the seriousness of banks as well as the State Government in creation of employment opportunities, the performance is expected to improve in the remaining period of the current financial year. The extension agencies have to play a pivotal role in identification of economically viable schemes and selection of genuine entrepreneurs 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 C. D. Ratio of banks in the State as on 30th September 2010 stood at 40.06% compared to the C. D. Ratio of 46.70% as on 30th September 2009. This was mainly attributed by him to the impact of disturbed conditions in the State particularly in the valley, which resulted in prolonged closure of all the business establishments. He, however, expressed the hope that with the return of normalcy in the valley and rest of the state, the position in respect of disbursement of credit would improve in the remaining period of the current financial year.
The 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. A suitable mechanism for recovery of loans extended would result in recycling of funds.
The Chairman and CEO of J&K Bank extended his gratitude to the State Government for having taken a proactive approach in making desired amendments for applicability of creation of Equitable Mortgage to whole of the State. He also expressed the hope that the State Government would take necessary steps for applicability of SARFAESI Act in the State as well as for creation of Central registry in the State, which would pave way for enhanced flow of credit and facilitate the banks/ financial Institutions in effecting faster recovery of outstanding debts from willful defaulters.
On behalf of the banking fraternity the Chairman & CEO of J&K Bank assured that there would be no let up in their efforts in implementing the Government Sponsored Programmes aimed at alleviation of poverty and fighting the menace of unemployment confronting the State.
The Chief Secretary, J&K State, in his concluding remarks stated that the SLBC forum should instead of indulging in fault finding play an interactive role for finding solutions to various issues and ensure committed and honest implementation of the decisions taken.