61% of credit in J&K market belongs to J&K Bank

SLBC 102 in Jammu

KL News Network

SRINAGAR

Credit aggregating to Rs 5,631.13 Cr has been disbursed various sectors of the state economy during the first half of FY 2016-17 against envisaged Annual Credit Plan of Rs 27,649.47 Cr by the 46 banks and financial institutions operating in the state. J&K Bank alone has disbursed Rs 3,431.70 Cr accounting for 61 pc of the total credit disbursed, according to Chairman and CEO J&K Bank Parvez Ahmad, who is also Convener J&K SLBC.

Appreciating the role played by the banks, particularly by J&K Bank, in rolling out the demonetization process, Chief Secretary, J&K Government B R Sharma said that despite working under testing conditions, the banks have done a commendable job in the State viz-a-viz other states of the country for carrying forward this national objective. The SLBC met in Jammu.

He praised the measures taken by the banks in terms of working for extended hours and also on holidays for the convenience of the people of the State for minimizing their temporary hardships during the roll out.

He also emphasized the need for deployment of more credit to various sectors of economy, so as to improve the Credit Deposit Ratio to the targeted level of 55 pc and 60 pc by March 2017 and March 2018 respectively.

Referring to the dip in the Credit Deposit Ratio of the state from 49.11 pc as on 31.03.2016 to 47.64 pc as on 30.09.2016, Parvez Ahmed stated that the prolonged turmoil and disturbance in Kashmir Valley has adversely affected the banking activities causing sluggish credit dispensation besides leading to stress / impairment in the credit portfolio of the banks across the State.

“J&K SLBC has sought special dispensation from Reserve Bank of India in terms of providing relief to the affected borrowers and allowing banks to tide over the impact on the asset classification”, he said.

He expressed optimism that RBI and State Government will consider the same.

Giving an account of the credit disbursement under Agriculture Sector, Chairman stated that banks operating in the state have disbursed an amount of Rs 740.73 Cr in favour of 48,732 beneficiaries during the H1 of FY 2016-17 registering an achievement of 13 pc in financial terms and 8 pc in physical terms.

Stressing upon the need to enhance credit flow to Agriculture Sector especially the Crop Loan segment, the house advised the banks to bridge the credit gaps in the sector to facilitate better productivity and employment generation in the State.

The House was informed that under Micro & Small Enterprises Sector, banks have disbursed an amount of Rs 1,386.83 Cr in favour of 34,637 beneficiaries during the period under review thereby registering an achievement of 21 pc in financial terms and 18 pc in physical terms.

Under Education and Housing Sectors banks have disbursed an amount of Rs 55.42 Cr and Rs.248.05 Cr respectively during the period under review thereby registering an achievement of 8 pc in financial terms in both the sectors.

Under Housing Sector, banks have disbursed credit amounting to Rs 248.05 Cr in favour of 4,334 beneficiaries during the period under review thereby registering an achievement of 8 pc in financial terms and 9 pc in physical terms.

Under the major Government Sponsored Schemes (GSS) viz. NRLM, PMEGP, NULM and SC/ST/OBC, banks have disbursed an amount of Rs.18.65 Cr to 1,315 beneficiaries achieving 9 pc of the target in financial and 10 pc in physical terms.

CGM, NABARD emphasized upon the banks the need for dispensing cash to the farming community in view of the requirement for Rabi season.

The banks and the concerned government departments were also advised to make coordinated efforts for creating awareness among the masses on importance and benefits of seeding of Aadhaar numbers and mobile numbers in the bank account and initiate measures to complete the process as soon as possible.

Emphasizing the need for providing easy access to the banking facilities, Regional Director, RBI N K Sahu advised the banks to complete the process of opening brick & mortar branches in the 104 identified villages in the State having population more than 5000 within the stipulated timeline of 31st March, 2017.

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