22nd April 2009
Srinagar
J&K SLBC meeting reviews performance of banks leads in ACP target achievement
As against the total Annual Action Plan (ACP) credit outlay of Rs.1910.82 Crore to the priority sector in the J&K State for the financial year 2008-09, various banks operating here have recorded total credit disbursement of Rs. 1240.44 crore up to ending December, 2008, thereby reflecting overall achievement of 65% of the aggregate annual target during the 3 quarters under review. The J&K Bank alone has contributed Rs.733.97 Crore as against allocated annual aggregate target of Rs.836.13 Crore for the bank thereby reflecting 88% achievement against the annual target.
This was revealed at the 75th meeting of the J&K State Level Bankers' Committee (JKSLBC) held today at Jammu. The meeting held to review the performance of banks, was presided over by Dr. Haseeb A. Drabu, Chairman of J&K Bank and Convenor J&K SLBC. The Chief Secretary, J&K State, Shri S. S. Kapoor was the Chief Guest. Top functionaries of Government administration and banks including Commissioner / Secretary Finance Department, Commissioner/ Secretary, Labour & Employment, Executive Directors of J&K Bank, Regional Director (for J&K), Reserve Bank of India, Senior functionaries of various line departments and development agencies and senior representatives of major banks/ financial institutions operating in the State attended the meeting. Besides, reviewing the performance of banks/ financial institutions operating in the State in extending credit to priority sector as at the end of December, 2008 under Annual Credit Plan (ACP) 2008-09 various other issues of paramount importance including enhancing credit delivery to MSMEs sector and measures to effectively deal with the impact of global economic slow down were also deliberated upon in the meeting.
The Chairman in his welcome address and presentation commented that the performance of financial sector in supporting and financing the priority sector has subdued as compared to the corresponding period of the previous year partly due to disturbances derailing the economic activities in the State and partly due to the impact of economic slow down. He impressed upon the banks to improve their performance and involvement so that the flow of credit is enhanced and the trend is maintained as intended.
He stated that Small Enterprises sector dominates other sectors by absorbing credit disbursement of Rs.380.46 Crore (85% of annual target) followed by Retail Trade sector with an amount of Rs.312.07 Crore (85% of annual target), Agriculture with an amount of Rs.257.40 Crore (52% of annual target), Housing with an amount of Rs.154.65 Crore (161% of annual target), Micro Credit with an amount of Rs.95.30 Crore (22% of annual target) and the lowest share of Rs.40.57 Crore (62% of annual target) has gone to Education sector. This reflected credit sharing by these six sectors in the ratio of Small Enterprises 31%, Retail Trade 25%, Agriculture 21%, Housing 12%, Micro Credit 8% and Education 3%. He highlighted that 69,224 priority sector beneficiaries have been covered as against the targeted beneficiaries of 1,73,400 for the whole year thereby achieving low performance of just 40% of the target in physical terms as compared to 65% achievement in financial terms.
In agriculture sector, the banks at the end of December 31, 2008, have disbursed an amount of Rs.257.39 Crore to 27,236 beneficiaries as against the annual target of Rs.493.78 Crore for 1,07,319 beneficiaries for the said period. Thereby the banks have been able to achieve only 25% physical target under the sector. It is also worth mentioning that out of this achievement, Rs.69.65 Crore have been disbursed under crop loan in favour of 8877 beneficiaries. While analyzing quantum wise disbursements, the major contributor has been J&K bank with Rs.180.06 Crore. J&K Bank has been major contributor to the achievements under Small Enterprises sector. Out of aggregate disbursement of Rs.380.46 Crore at the end of December 2008, as against an annual target of Rs.448.89 Crore for all the participating banks, J&K Bank alone has disbursed Rs.221.01 Crore to this sector against its target of Rs.224.10 Crore, thereby achieving 99% of the financial target.
In Retail Trade sector, the banks have disbursed credit of Rs.312.07 Crore at the end of the December 2008 to 13899 beneficiaries as against the annual target of Rs.368.57 Crore for 26069 beneficiaries.
In Micro Credit sector, the banks at the end of December, 2008 have disbursed an amount of Rs.95.30 Crore to 7939 beneficiaries as against the annual target of Rs, 438.60 Crore for 18568 beneficiaries thereby achieving 43% of the physical target.
In Housing sector, the performance of banks at the end of December, 2008 has been excellent having disbursed an amount of Rs.154.65 Crore to 7486 beneficiaries as against the annual target of Rs.95.92 Crore for 3,301 beneficiaries. In Education Sector the banks at the end of December 2008 have disbursed an amount of Rs.40.57 Crore to 1798 beneficiaries as against the annual target of Rs.65.07 Crore for 2,772 beneficiaries.
Under five major Government sponsored schemes (i.e. SGSY, JKSES, SJSRY, SC/ST/OBC and PMEGP) the banks have disbursed an amount of Rs.57.36 Crore spread over 6367 beneficiaries as at the end of December 2008 against the target of Rs.204.81 Crore for 23,835 beneficiaries, thereby achieving 28% and 27% of the annual target in financial and physical terms respectively.
While discussing that the sponsored programmes were not delivering as intended, the Chairman reiterated need for evolving an effective mechanism both for credit dispensation and debt recovery by involving the financial institutions as well as the sponsoring agencies for improving the position.
The Credit Deposit Ratio of the banking sector in the State has been 46.47% as the aggregate bank deposits increased to Rs.30606.35 Crore as against the total outstanding loans of Rs.14223.66 Crore. J&K Bank alone has made total advances of Rs.9634.74 Crore as against its total deposits of Rs.17842.51 Crore, thereby achieving a CD Ratio of 54%. It is noticeable that the advances outstanding of other major public sector banks, viz., SBI and PNB stood at Rs.1410.12 Crore and Rs.736.20 Crore as against their deposits of Rs 4745.91 Crore and Rs.2119.52 Crore, achieving a CD Ratio of 30% and 35% respectively.
On reviewing the position of SMEs during the quarter, the Chairman, remarked that the recent measures and initiatives for enhancing delivery of credit to the MSMEs sector and restructuring of loan accounts have been implemented but the results so far show that more seriousness is required in this regard. He emphasized that all possible steps should be taken so that the productive sector and its employment is protected and does not suffer for deficiency of credit. An annual credit Plan of Rs.3,701.75 Crore for the State for the year 2009-10 with a component of Rs.2308.69 Crore for Priority Sector covering 1,84,262 beneficiaries was approved by the house.
The Chief Secretary, Shri S. S. Kapoor, Chief Secretary, J&K State in his address stressed the banks operating in the State to further improve their performance. Commenting that the Government sponsored schemes are not delivering as intended, the Chief Secretary advised for setting up of a Task Force in the State comprising of the representatives from the line departments and some major banks to evolve and implement an action plan so that the performance under the sponsored schemes is substantially improved. Regarding GoI guidelines for setting up of R-SETIs in J&K State, the Chief Secretary stressed upon the need to implement the action plan with sincerety and seriousness and pleaded that State Government will fulfill all its commitments and obligations as a matter of priority for realizing the objective of training and skill building of the youth.
The Regional Director (for J&K State), Reserve Bank of India, Mr. O.P.Aggarwal highlighting some broad achievements of the banking sector in the State stated that Credit Deposit Ratio of the banks operating in the State has been doubled in the last 4 years. He complimented the banks and other concerned agencies for ensuring substantial achievement of targets under Annual Credit Plan. He also expressed satisfaction that pursuant to the constant pursuation from RBI, State Government and SLBC the Annual Credit Plan for 2009-10 for all the 22 districts is ready for implementation and the commitment made in the last SLBC meeting stands therefore, fulfilled.
The meeting concluded with a vote of thanks to the Chair and the participants were requested to join for lunch hosted by the Convenor Bank.
- Against the total ACP credit outlay of 1910.82 Crore to the priority sector for the financial year 2008-09 total credit disbursement by banks upto ending December, 2008 has been to the order of Rs.1240.44 Crore thereby reflecting overall achievement of 65% of the aggregate annual target. J&K Bank alone has contributed Rs.733.97 Crore as against allocated annual aggregate target of Rs.836.13 Crore for the bank thereby reflecting 88% achievement against the annual target.
- Small Enterprises sector dominates other sectors by absorbing credit disbursement of Rs.380.46 Crore followed by Retail Trade sector with an amount of Rs.312.07 Crore, Agriculture with an amount of Rs.257.40 Crore, Housing with an amount of Rs.154.65 Crore, Micro Credit with an amount of Rs.95.30 Crore and the lowest share of Rs.40.57 Crore has gone to Education sector. This reflected credit sharing by these six sectors in the ratio of Small Enterprises 31%, Retail Trade 25%, Agriculture 21%, Housing 12%, Micro Credit 8% and Education 3%. 69,224 priority sector beneficiaries have been covered as against the targeted beneficiaries of 1,73,400 for the whole year thereby achieving low performance of just 40% of the target in physical terms as compared to 65% achievement in financial terms.
- Credit Deposit Ratio of the banking sector in the State has been 46.47%. J&K Bank alone has made total advances of Rs.9634.74 Crore constituting 68% of total bank credit in the State.
- An annual credit Plan of Rs.3,701.75 Crore for the State for the year 2009-10 with a component of Rs.2308.69 Crore for Priority Sector covering 1,84,262 beneficiaries was approved by the house.
This was revealed at the 75th meeting of the J&K State Level Bankers' Committee (JKSLBC) held today at Jammu. The meeting held to review the performance of banks, was presided over by Dr. Haseeb A. Drabu, Chairman of J&K Bank and Convenor J&K SLBC. The Chief Secretary, J&K State, Shri S. S. Kapoor was the Chief Guest. Top functionaries of Government administration and banks including Commissioner / Secretary Finance Department, Commissioner/ Secretary, Labour & Employment, Executive Directors of J&K Bank, Regional Director (for J&K), Reserve Bank of India, Senior functionaries of various line departments and development agencies and senior representatives of major banks/ financial institutions operating in the State attended the meeting. Besides, reviewing the performance of banks/ financial institutions operating in the State in extending credit to priority sector as at the end of December, 2008 under Annual Credit Plan (ACP) 2008-09 various other issues of paramount importance including enhancing credit delivery to MSMEs sector and measures to effectively deal with the impact of global economic slow down were also deliberated upon in the meeting.
The Chairman in his welcome address and presentation commented that the performance of financial sector in supporting and financing the priority sector has subdued as compared to the corresponding period of the previous year partly due to disturbances derailing the economic activities in the State and partly due to the impact of economic slow down. He impressed upon the banks to improve their performance and involvement so that the flow of credit is enhanced and the trend is maintained as intended.
He stated that Small Enterprises sector dominates other sectors by absorbing credit disbursement of Rs.380.46 Crore (85% of annual target) followed by Retail Trade sector with an amount of Rs.312.07 Crore (85% of annual target), Agriculture with an amount of Rs.257.40 Crore (52% of annual target), Housing with an amount of Rs.154.65 Crore (161% of annual target), Micro Credit with an amount of Rs.95.30 Crore (22% of annual target) and the lowest share of Rs.40.57 Crore (62% of annual target) has gone to Education sector. This reflected credit sharing by these six sectors in the ratio of Small Enterprises 31%, Retail Trade 25%, Agriculture 21%, Housing 12%, Micro Credit 8% and Education 3%. He highlighted that 69,224 priority sector beneficiaries have been covered as against the targeted beneficiaries of 1,73,400 for the whole year thereby achieving low performance of just 40% of the target in physical terms as compared to 65% achievement in financial terms.
In agriculture sector, the banks at the end of December 31, 2008, have disbursed an amount of Rs.257.39 Crore to 27,236 beneficiaries as against the annual target of Rs.493.78 Crore for 1,07,319 beneficiaries for the said period. Thereby the banks have been able to achieve only 25% physical target under the sector. It is also worth mentioning that out of this achievement, Rs.69.65 Crore have been disbursed under crop loan in favour of 8877 beneficiaries. While analyzing quantum wise disbursements, the major contributor has been J&K bank with Rs.180.06 Crore. J&K Bank has been major contributor to the achievements under Small Enterprises sector. Out of aggregate disbursement of Rs.380.46 Crore at the end of December 2008, as against an annual target of Rs.448.89 Crore for all the participating banks, J&K Bank alone has disbursed Rs.221.01 Crore to this sector against its target of Rs.224.10 Crore, thereby achieving 99% of the financial target.
In Retail Trade sector, the banks have disbursed credit of Rs.312.07 Crore at the end of the December 2008 to 13899 beneficiaries as against the annual target of Rs.368.57 Crore for 26069 beneficiaries.
In Micro Credit sector, the banks at the end of December, 2008 have disbursed an amount of Rs.95.30 Crore to 7939 beneficiaries as against the annual target of Rs, 438.60 Crore for 18568 beneficiaries thereby achieving 43% of the physical target.
In Housing sector, the performance of banks at the end of December, 2008 has been excellent having disbursed an amount of Rs.154.65 Crore to 7486 beneficiaries as against the annual target of Rs.95.92 Crore for 3,301 beneficiaries. In Education Sector the banks at the end of December 2008 have disbursed an amount of Rs.40.57 Crore to 1798 beneficiaries as against the annual target of Rs.65.07 Crore for 2,772 beneficiaries.
Under five major Government sponsored schemes (i.e. SGSY, JKSES, SJSRY, SC/ST/OBC and PMEGP) the banks have disbursed an amount of Rs.57.36 Crore spread over 6367 beneficiaries as at the end of December 2008 against the target of Rs.204.81 Crore for 23,835 beneficiaries, thereby achieving 28% and 27% of the annual target in financial and physical terms respectively.
While discussing that the sponsored programmes were not delivering as intended, the Chairman reiterated need for evolving an effective mechanism both for credit dispensation and debt recovery by involving the financial institutions as well as the sponsoring agencies for improving the position.
The Credit Deposit Ratio of the banking sector in the State has been 46.47% as the aggregate bank deposits increased to Rs.30606.35 Crore as against the total outstanding loans of Rs.14223.66 Crore. J&K Bank alone has made total advances of Rs.9634.74 Crore as against its total deposits of Rs.17842.51 Crore, thereby achieving a CD Ratio of 54%. It is noticeable that the advances outstanding of other major public sector banks, viz., SBI and PNB stood at Rs.1410.12 Crore and Rs.736.20 Crore as against their deposits of Rs 4745.91 Crore and Rs.2119.52 Crore, achieving a CD Ratio of 30% and 35% respectively.
On reviewing the position of SMEs during the quarter, the Chairman, remarked that the recent measures and initiatives for enhancing delivery of credit to the MSMEs sector and restructuring of loan accounts have been implemented but the results so far show that more seriousness is required in this regard. He emphasized that all possible steps should be taken so that the productive sector and its employment is protected and does not suffer for deficiency of credit. An annual credit Plan of Rs.3,701.75 Crore for the State for the year 2009-10 with a component of Rs.2308.69 Crore for Priority Sector covering 1,84,262 beneficiaries was approved by the house.
The Chief Secretary, Shri S. S. Kapoor, Chief Secretary, J&K State in his address stressed the banks operating in the State to further improve their performance. Commenting that the Government sponsored schemes are not delivering as intended, the Chief Secretary advised for setting up of a Task Force in the State comprising of the representatives from the line departments and some major banks to evolve and implement an action plan so that the performance under the sponsored schemes is substantially improved. Regarding GoI guidelines for setting up of R-SETIs in J&K State, the Chief Secretary stressed upon the need to implement the action plan with sincerety and seriousness and pleaded that State Government will fulfill all its commitments and obligations as a matter of priority for realizing the objective of training and skill building of the youth.
The Regional Director (for J&K State), Reserve Bank of India, Mr. O.P.Aggarwal highlighting some broad achievements of the banking sector in the State stated that Credit Deposit Ratio of the banks operating in the State has been doubled in the last 4 years. He complimented the banks and other concerned agencies for ensuring substantial achievement of targets under Annual Credit Plan. He also expressed satisfaction that pursuant to the constant pursuation from RBI, State Government and SLBC the Annual Credit Plan for 2009-10 for all the 22 districts is ready for implementation and the commitment made in the last SLBC meeting stands therefore, fulfilled.
The meeting concluded with a vote of thanks to the Chair and the participants were requested to join for lunch hosted by the Convenor Bank.
- Against the total ACP credit outlay of 1910.82 Crore to the priority sector for the financial year 2008-09 total credit disbursement by banks upto ending December, 2008 has been to the order of Rs.1240.44 Crore thereby reflecting overall achievement of 65% of the aggregate annual target. J&K Bank alone has contributed Rs.733.97 Crore as against allocated annual aggregate target of Rs.836.13 Crore for the bank thereby reflecting 88% achievement against the annual target.
- Small Enterprises sector dominates other sectors by absorbing credit disbursement of Rs.380.46 Crore followed by Retail Trade sector with an amount of Rs.312.07 Crore, Agriculture with an amount of Rs.257.40 Crore, Housing with an amount of Rs.154.65 Crore, Micro Credit with an amount of Rs.95.30 Crore and the lowest share of Rs.40.57 Crore has gone to Education sector. This reflected credit sharing by these six sectors in the ratio of Small Enterprises 31%, Retail Trade 25%, Agriculture 21%, Housing 12%, Micro Credit 8% and Education 3%. 69,224 priority sector beneficiaries have been covered as against the targeted beneficiaries of 1,73,400 for the whole year thereby achieving low performance of just 40% of the target in physical terms as compared to 65% achievement in financial terms.
- Credit Deposit Ratio of the banking sector in the State has been 46.47%. J&K Bank alone has made total advances of Rs.9634.74 Crore constituting 68% of total bank credit in the State.
- An annual credit Plan of Rs.3,701.75 Crore for the State for the year 2009-10 with a component of Rs.2308.69 Crore for Priority Sector covering 1,84,262 beneficiaries was approved by the house.