CS directed Bankers to Improve lending to priority sector

Jammu,November 26 (Scoop News)-Flagging 100% coverage of farmers in J&K state under Kissan Credit Card (KCC) scheme as Governments top priority, Chief Secretary, Madhav Lal during the 87th meeting of J&K State Level Bankers’ Committee (SLBC) held here today directed the state agricultural and revenue departments to adopt concrete methodologies in cooperation with banks to accelerate the pace and complete the target within the stipulated time frame.

            “There is a dire need to invest in building a mechanism whereby real time information is made available for data to be reconciled and gaps addressed. This will also ensure huge improvement in sponsorship, sanction and disbursement of cases within the stipulated time” Chief Secretary observed.

            “Lending to the priority sector has to improve” he stressed, urging departmental functionaries for their proactive role to access additional resources and stressed on having a relook at the entire processes hindering tangible results to accrue and take steps to adjust accordingly. He called for developing new working relationships at various operational levels and between institutions to address shortfalls.    

            “Under the Priority Sector Banks have extended credit facilities aggregating Rs 2,403.08 crore in favour of 1, 60,204 beneficiaries against annual target of Rs.6, 094.50 crore for 3, 54,302 beneficiaries during Q2 of the financial year 2012-13, achieving 39% of the annual target in financial terms” Chairman J&K Bank Mushtaq Ahmad informed the 87th SLBC, while presenting a report on performance of the banks.

            Under agriculture sector banks have achieved 62%, Micro & Small Enterprises Sector 33%, Micro Credit Sector 27%, education sector 22% and under the Housing sector Banks have registered 33% achievement in financial terms, he said adding that J&K Bank has disbursed Rs 1566.31crore to the priority sector which accounts for 50% of the total priority sector credit disbursed by all banks in the state.

            Regarding Credit Deposit Ratio, Chairman said that C D Ratio of banks in the State as on September 2012 stood at 36.53%.  He reiterated that the CD Ratio of the State would be enhanced to the minimum level of 40%, urging the banks to put in extra efforts to achieve the desired target. He also called for creating a responsive credit climate by legislating the SARFAESI Act.

            Responding to the issue of timely release of subsidy Principal Secretary, Planning & Development, B B Vyas said that steps will be taken to rationalize the system of release of subsidy and invited bank representatives to come forward so that the best possible arrangement is worked out.

            Performance under major Government sponsored schemes including NRLM, PMEGPY, JKSES, SJSRY and SC/ST/OBC, financing under Annual credit Plan, Handicraft/Handloom sector, Self Help Group (SHG) Scheme etc were reviewed and discussed during the meeting with directions to register further improvement.

            Extension of Swabhimaan including District Wise Service Area Plan, Implementation of Electronic Benefit Transfer (EBT) Scheme and Branch Expansion Plans of Banks in J&K State were also reviewed in the 87th SLBC meeting today