18th February 2012
Jammu
J&K Bank emerges as the biggest player having disbursed Rs.2097.45 Crore to priority sector during three quarters of FY 2011-12 upto December.
Banks operating in J&K State have extended credit facilities aggregating Rs.2,870.60 Crore in favour of 1,39,831 beneficiaries against target of Rs.3,619.69 Crore for 2,37,892 beneficiaries under Priority Sector during the three quarters ended Dec., 2011, thereby registering achievement of 79% in financial terms. J&K Bank alone has disbursed Rs.2,097.45 Crore against the target of Rs.1,492.44 Crore, thereby achieving 141% of its annual ACP target, which accounts for an achievement of 73% 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), while addressing the 84thmeeting of J&K State Level Bankers' Committee (SLBC) held today at Jammu and presenting a review report on performance of the banks in the state.
The meeting was presided over by Shri MadhavLal, Chief Secretary, J&K Government and was attended by the Commissioner/ Secretary, Industries & Commerce, Mr. Umang Narula, the Commissioner / Secretary Labour and Employment, Mr. Yadullah, Commissioner/ Secretary, Agriculture Production Department, Mr. Navin Chowdhary, Director, Department of Financial Services, Government of India, Ministry of Finance, 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.
Highlighting the significance of the Financial Inclusion, the Chairman, Convenor Bank stated that Financial Inclusion is 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 GoI 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 satisfactory, as 646 villages have already been covered. He expressed the hope that the concerned participating banks shall ensure to achieve the targets by the stipulated date, i.e. 31st March, 2012. He requested the Chief Secretary and other senior functionaries of Government to take necessary measures for successful implementation of Electronic Benefit Transfer (EBT) as per the parameters envisaged by GoI.
Regarding the GoI, MoF directive that benefits under various Social Security Schemes must be transferred electronically into the destination accounts of the beneficiaries without any manual intervention, the Chairman expressed the hope that the State Government will take all necessary measures in this regard for enabling to observe desired compliance to GoI, MoF directives.
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 in the identified under-banked districts the banks has been slow and desired that banks shall expedite the process of opening regular brick and mortar branches in larger habitations with population of 5000 and above by September 2012 in terms of GoI, MoF directives.
While describing sector-wise performance of banks under ACP as at the end Q3 of the financial year 2011-12, the Chairman stated that under Agriculture sector banks have extended credit facilities aggregating Rs.640.17 Crores to 54,395 beneficiaries against a target of Rs.846.06 Crore favouring 1,38,748 beneficiaries, registering an achievement of 76%.
Under Small Enterprises Sector, banks have disbursed credit facilities aggregating Rs.958.04 Crore in favour of 27,545 beneficiaries against ACP target of Rs.1,725.95 Crore in favour of 59,531 beneficiaries, thus registering an achievement of 56% in financial terms.
Under Micro Credit Sector, banks have disbursed credit facilities aggregating Rs.193.26 Crore in favour of 13,639 beneficiaries against ACP target of Rs.476.41 for 26,005 beneficiaries, registering an achievement of 41% in financial terms.
Under Education Sector, banks have extended credit facilities aggregating Rs.48.69 Crore in favour of 3,545 beneficiaries against ACP target of Rs.151.36 Crores for 4,686 beneficiaries, registering an achievement of 32% in financial terms, and Under Housing Sector, banks have disbursed an amount of Rs.1,030.45 Crore in favour of 40,707 beneficiaries against ACP target of Rs.419.91 Crore for 8,922 beneficiaries, registering an achievement of 245% 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.136.17 Crore spread over 9,563 beneficiaries in all the three regions of the State. It is a matter of satisfaction to observe that continuous focus to improve has yielded desired results and a performance of 63% & 51% of the target in financial and physical terms respectively has been registered during the period of 3 quarters under review for the first time ever. During the period under review the credit disbursement under sponsored schemes having increased to Rs.136.17 Crore as on 31.12.2011 as compared to Rs.96.63 Crore as on 31.12.2010. However, considering the seriousness of banks as well as the State Government for creation of more & more employment generation opportunities and ventures, the performance needs to show substantial improvement in future.
The 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.
Regarding Credit Deposit Ratio, the Chairman and CEO of J&K Bank commented that C. D. Ratio of banks in the State as on 31st December 2011 stood at 35.18% compared to the C. D. Ratio of 41.42% as on 31st December, 2010 indicating a decline of 6.24% in the C. D. Ratio.
The Chairman emphasized that State Government should come forward with practical measures, which would enable banks to recover their overdues expeditiously and take necessary steps for removing disabling factors to facilitate loan recovery and developing a conducive credit climate in the State.
The Chief Secretary, Mr. MadhavLal, in his address highlighted that implementation of Financial Inclusion is a very high priority issue and the task has to be accomplished as early as possible keeping in view that we are already behind the schedule. He emphasized that a sound and well structured mechanism with necessary modalities be evolved through proper consultations by the concerned Government functionaries and banks to practically take the initiatives to logical conclusion of providing basic financial services to the under-privileged. Observing that the progress was not encouraging so far, he insisted that half-hearted efforts are not aiming at the larger objective of the programme.
The features of Rehabilitation & Revival package on Handlooms and Issuance of Weavers' Credit Card Schemes, recently launched by GoI, MoT, Development Commissioner Handlooms, were adopted for implementation in the State and the concerned implementing agencies were directed to activate the process so that the Handloom Sector in the State is benefitted under the package.
Regarding the GoI directive of providing KCCs to all eligible farmers, the Chief Secretary directed the Agriculture Production Department to take necessary steps in the matter to ensure that the application forms, which have been printed by the J&K Bank in terms of previous SLBC decision are delivered to the farmers and collected back for being deposited with the concerned banks in a systematic way at the earliest. For this purpose he directed that suitable monitoring mechanism be set up by the Agriculture Production Department to oversee that farms reach every eligible farmer.
The Chief Secretary expressed concern that growth in the advances was not satisfactory and advised that banks should put in strenuous efforts to ensure that Credit Deposit Ratio in the State is substantially improved.
The meeting was presided over by Shri MadhavLal, Chief Secretary, J&K Government and was attended by the Commissioner/ Secretary, Industries & Commerce, Mr. Umang Narula, the Commissioner / Secretary Labour and Employment, Mr. Yadullah, Commissioner/ Secretary, Agriculture Production Department, Mr. Navin Chowdhary, Director, Department of Financial Services, Government of India, Ministry of Finance, 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.
Highlighting the significance of the Financial Inclusion, the Chairman, Convenor Bank stated that Financial Inclusion is 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 GoI 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 satisfactory, as 646 villages have already been covered. He expressed the hope that the concerned participating banks shall ensure to achieve the targets by the stipulated date, i.e. 31st March, 2012. He requested the Chief Secretary and other senior functionaries of Government to take necessary measures for successful implementation of Electronic Benefit Transfer (EBT) as per the parameters envisaged by GoI.
Regarding the GoI, MoF directive that benefits under various Social Security Schemes must be transferred electronically into the destination accounts of the beneficiaries without any manual intervention, the Chairman expressed the hope that the State Government will take all necessary measures in this regard for enabling to observe desired compliance to GoI, MoF directives.
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 in the identified under-banked districts the banks has been slow and desired that banks shall expedite the process of opening regular brick and mortar branches in larger habitations with population of 5000 and above by September 2012 in terms of GoI, MoF directives.
While describing sector-wise performance of banks under ACP as at the end Q3 of the financial year 2011-12, the Chairman stated that under Agriculture sector banks have extended credit facilities aggregating Rs.640.17 Crores to 54,395 beneficiaries against a target of Rs.846.06 Crore favouring 1,38,748 beneficiaries, registering an achievement of 76%.
Under Small Enterprises Sector, banks have disbursed credit facilities aggregating Rs.958.04 Crore in favour of 27,545 beneficiaries against ACP target of Rs.1,725.95 Crore in favour of 59,531 beneficiaries, thus registering an achievement of 56% in financial terms.
Under Micro Credit Sector, banks have disbursed credit facilities aggregating Rs.193.26 Crore in favour of 13,639 beneficiaries against ACP target of Rs.476.41 for 26,005 beneficiaries, registering an achievement of 41% in financial terms.
Under Education Sector, banks have extended credit facilities aggregating Rs.48.69 Crore in favour of 3,545 beneficiaries against ACP target of Rs.151.36 Crores for 4,686 beneficiaries, registering an achievement of 32% in financial terms, and Under Housing Sector, banks have disbursed an amount of Rs.1,030.45 Crore in favour of 40,707 beneficiaries against ACP target of Rs.419.91 Crore for 8,922 beneficiaries, registering an achievement of 245% 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.136.17 Crore spread over 9,563 beneficiaries in all the three regions of the State. It is a matter of satisfaction to observe that continuous focus to improve has yielded desired results and a performance of 63% & 51% of the target in financial and physical terms respectively has been registered during the period of 3 quarters under review for the first time ever. During the period under review the credit disbursement under sponsored schemes having increased to Rs.136.17 Crore as on 31.12.2011 as compared to Rs.96.63 Crore as on 31.12.2010. However, considering the seriousness of banks as well as the State Government for creation of more & more employment generation opportunities and ventures, the performance needs to show substantial improvement in future.
The 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.
Regarding Credit Deposit Ratio, the Chairman and CEO of J&K Bank commented that C. D. Ratio of banks in the State as on 31st December 2011 stood at 35.18% compared to the C. D. Ratio of 41.42% as on 31st December, 2010 indicating a decline of 6.24% in the C. D. Ratio.
The Chairman emphasized that State Government should come forward with practical measures, which would enable banks to recover their overdues expeditiously and take necessary steps for removing disabling factors to facilitate loan recovery and developing a conducive credit climate in the State.
The Chief Secretary, Mr. MadhavLal, in his address highlighted that implementation of Financial Inclusion is a very high priority issue and the task has to be accomplished as early as possible keeping in view that we are already behind the schedule. He emphasized that a sound and well structured mechanism with necessary modalities be evolved through proper consultations by the concerned Government functionaries and banks to practically take the initiatives to logical conclusion of providing basic financial services to the under-privileged. Observing that the progress was not encouraging so far, he insisted that half-hearted efforts are not aiming at the larger objective of the programme.
The features of Rehabilitation & Revival package on Handlooms and Issuance of Weavers' Credit Card Schemes, recently launched by GoI, MoT, Development Commissioner Handlooms, were adopted for implementation in the State and the concerned implementing agencies were directed to activate the process so that the Handloom Sector in the State is benefitted under the package.
Regarding the GoI directive of providing KCCs to all eligible farmers, the Chief Secretary directed the Agriculture Production Department to take necessary steps in the matter to ensure that the application forms, which have been printed by the J&K Bank in terms of previous SLBC decision are delivered to the farmers and collected back for being deposited with the concerned banks in a systematic way at the earliest. For this purpose he directed that suitable monitoring mechanism be set up by the Agriculture Production Department to oversee that farms reach every eligible farmer.
The Chief Secretary expressed concern that growth in the advances was not satisfactory and advised that banks should put in strenuous efforts to ensure that Credit Deposit Ratio in the State is substantially improved.