20th October 2009
Srinagar
Special SLBC on GSS.We need to create role models: CM.‘SLBC should be the banker's conscience keeper'
State Level Bankers' Committee (SLBC) should work on a broader agenda of socio-economic development in the State and we need to create role models in self employment that others emulate.
This was stated by the Hon'ble Chief Minister Omar Abdullah who chaired the special SLBC meet on Government Sponsored Schemes, held today at SKICC. Minister of Finance, Abdul Rahim Rather was the guest of honour.
Speaking on the occasion, the Chief Minister Omar Abdullah said, "There is a dire need to make SLBC a vibrant forum for deliberations on the efforts that can be put into making the Government Sponsored Schemes (GSS) more realistic and relevant to the ground realities".
Attributing some of the reasons for the poor performance of GSS in the state to the perspective- differentiation between the banks and the government, Omar Abdullah emphasized the need to bridge the gap in near future between commercial and social perceptions of the sponsored schemes and develop an integrated approach.
Releasing Knowledge@jkbank, Banking and Financial Services Report-2009 on the occasion, chief minister suggested that J&K Bank should prepare such a study on cross LoC trade also, to which Dr Drabu agreed. While introducing the Knowledge@jkbank series, Dr Drabu said the series seeks to provide business information that will aid prospective and interested investors in making right decisions.
Earlier, Dr Haseeb Drabu, Chairman and Chief Executive of the convenor Bank (i.e, J&K Bank), welcomed the dignitaries and gave a visual presentation wherein he dwelt upon the analytical overview of the Government Sponsored Schemes: Issues and Remedies
Dr Drabu cited scheme formulation, faulty identification of beneficiaries, lack of marketing support and lack of proper follow- up as chief reasons for the poor off take and large NPAs in Government sponsored Schemes.
Advocating for the restructuring of the SLBC, Dr Drabu said that J&K state doesn't compare well with other states in financial infrastructure and intermediation for which the role of SLBC becomes more critical.
He suggested that SLBC should be the banker's conscience keeper in the region for which it needs to be restructured and reformed. Dr Drabu also presented the restructuring proposal in the meeting. The suggestion was endorsed by the chief minister in his remarks.
Pointing towards the credit gap in his presentation, Dr Drabu said that J&K state accounts for 0.70 percent of national GDP and yet it absorbs 0.30 percent of total national credit.
He further said that there was a huge mismatch between sources of growth and credit supply. Like the size of horticulture business is estimated between Rs 12 to 15 billion but the current exposure is just about 1.5 billion.
Regarding the credit disbursement, Dr Drabu said that J&K Bank displayed the commitment to uplift the priority sector by over achieving its target in Fy-09 at 143%. Even during the recession period, J&K Bank has maintained the lead.
Speaking on the occasion, Finance Minister Abdul Rahim Rather urged banks to be more sensitive towards the employment generation in the state. He also hailed J&K Bank for coming up with specially designed products in the recession times.
Among other dignitaries present on the occasion were the top functionaries of the administration including Chief Secretary S S Kapoor, Principal Secy. Industries and Commerce Mr. Anil Goswami, Commissioner/Secretary Finance Mr Sudhanshu Pandey, Comm./Secy. Labour and Employment Mr F A Peer, Executive Directors and Presidents of J&K Bank, Senior Officers from Reserve Bank of India, CGM NABARD (J&K), senior level representatives of various departments and development agencies and senior functionaries of major banks/ financial institutions operating in the state.
This was stated by the Hon'ble Chief Minister Omar Abdullah who chaired the special SLBC meet on Government Sponsored Schemes, held today at SKICC. Minister of Finance, Abdul Rahim Rather was the guest of honour.
Speaking on the occasion, the Chief Minister Omar Abdullah said, "There is a dire need to make SLBC a vibrant forum for deliberations on the efforts that can be put into making the Government Sponsored Schemes (GSS) more realistic and relevant to the ground realities".
Attributing some of the reasons for the poor performance of GSS in the state to the perspective- differentiation between the banks and the government, Omar Abdullah emphasized the need to bridge the gap in near future between commercial and social perceptions of the sponsored schemes and develop an integrated approach.
Releasing Knowledge@jkbank, Banking and Financial Services Report-2009 on the occasion, chief minister suggested that J&K Bank should prepare such a study on cross LoC trade also, to which Dr Drabu agreed. While introducing the Knowledge@jkbank series, Dr Drabu said the series seeks to provide business information that will aid prospective and interested investors in making right decisions.
Earlier, Dr Haseeb Drabu, Chairman and Chief Executive of the convenor Bank (i.e, J&K Bank), welcomed the dignitaries and gave a visual presentation wherein he dwelt upon the analytical overview of the Government Sponsored Schemes: Issues and Remedies
Dr Drabu cited scheme formulation, faulty identification of beneficiaries, lack of marketing support and lack of proper follow- up as chief reasons for the poor off take and large NPAs in Government sponsored Schemes.
Advocating for the restructuring of the SLBC, Dr Drabu said that J&K state doesn't compare well with other states in financial infrastructure and intermediation for which the role of SLBC becomes more critical.
Highlights of the meeting |
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Pointing towards the credit gap in his presentation, Dr Drabu said that J&K state accounts for 0.70 percent of national GDP and yet it absorbs 0.30 percent of total national credit.
He further said that there was a huge mismatch between sources of growth and credit supply. Like the size of horticulture business is estimated between Rs 12 to 15 billion but the current exposure is just about 1.5 billion.
Regarding the credit disbursement, Dr Drabu said that J&K Bank displayed the commitment to uplift the priority sector by over achieving its target in Fy-09 at 143%. Even during the recession period, J&K Bank has maintained the lead.
Speaking on the occasion, Finance Minister Abdul Rahim Rather urged banks to be more sensitive towards the employment generation in the state. He also hailed J&K Bank for coming up with specially designed products in the recession times.
Among other dignitaries present on the occasion were the top functionaries of the administration including Chief Secretary S S Kapoor, Principal Secy. Industries and Commerce Mr. Anil Goswami, Commissioner/Secretary Finance Mr Sudhanshu Pandey, Comm./Secy. Labour and Employment Mr F A Peer, Executive Directors and Presidents of J&K Bank, Senior Officers from Reserve Bank of India, CGM NABARD (J&K), senior level representatives of various departments and development agencies and senior functionaries of major banks/ financial institutions operating in the state.