Ground Report

Srinagar, June 6  (Scoop News) – Observing that significant improvements in public investments through major set up in the State’s Successive Annual Plan outlays, utilization of resources available under Central Flagship Schemes and Centrally Sponsored Schemes and fast tracking of other development programmes have made a significant impact on the economic growth of the state, the Minister for Finance and Ladakh Affairs,  Abdul Rahim Rather today asked the Banks to stimulate this tempo adding that no economy can thrive on the basis of public investments and administrative measures alone.

Speaking at the 89th meeting of the Jammu and Kashmir SLBC here at SKICC,  Rather asked the Banks to strive harder to achieve the target of CD Ratio of 40% which was set by the Governor RBI for the last year.

Principal Secretary, Finance,  B. B. Vyas, who is also Principal Secretary to Chief Minister, Chairman Jammu and Kashmir Bank,  Mushtaq Ahmad, Regional Director RBI,  K. K. Saraf, Commissioner Secretary Industries and Commerce,  Shantmanu, Commissioner Secretary Agriculture,  Asgar Samoon, heads of various Banking Institutions, Government Departments and Public Sector undertakings (PSUs) were present in the meeting.  

 Rather expressed concern that the priority sector advances have gone down in terms of percentage of total advances, particularly the decrease in the share of lending to MSME sector and reduction in advances to weaker sections of the society adding the these segments should receive our additional attention.

 Rather said the untiring efforts of the Government, particularly at the level of Chief Minister, Omar Abdullah have restored an environment of peace which has been conducive to the acceleration of economic growth, particularly in the sectors of Tourism and Handicrafts. He said a new generation of entrepreneurs from the State is now coming forward to take advantage of the new investment climate, in the fields of tourism, food processing industry floriculture and other sun rise areas. “The Seed capital scheme under SKEWPY is rapidly gaining popularity among the entrepreneurs”,  Rather added.  

He expressed happiness that the bank deposits in J&K have reached to about Rs. 64500 crore last year and attained a year on year growth rate of about 17%. He hoped that this trend is maintained during the current fiscal also to register 10% increase in the CD Ratio.

 Rather expressed gratification that the 786 villages have been covered under the first phase of the Financial Inclusion Plan or “Swabhiman Campaign” out of a target of covering 795 unbanked villages, adding that “Coverage of 5582 identified unbanked villages with population of below 2000 under the second phase of the Financial Inclusion Plan needs to be accelerated; as only 1302 such villages have been reportedly covered up to 30th April 2013 indicating a progress of less than 25%”.

 Rather said the credit facilities extended against Kissan Credit Cards and Artisan credit Cards are now fully exempt to the extent of Rs. 1,50,000 as against the previous exemption limit of Rs. 50, 000 hoping this measure will help all the commercial banks in popularizing agricultural credit amongst the farmers and artisan credit amongst our handicrafts artisans and thereby help them in improving their priority sector lending’s which showed a sign of decrease during the last financial year.

He also asked the Banks to immediately prepare their Corporate Social Responsibility (CSR) plans for J&K on top priority as directed by the Governor RBI. He said another very important area where banks are still found to be lagging much behind the 100% coverage target is issuance of Kissan Credit Cards, adding that the commercial banks need to redouble their efforts in order to achieve 100% coverage as early as possible and latest before the commencement of the next Rabi operations.

He appreciated the J&K Bank for better performance in general, and in over achieving the targets in priorities sector lending in particular, as compared to other commercial banks. Saying that J&K Bank’s achievement in priority sector lending during the last financial year was 103%,  Rather hoped the Bank to sustain this tempo and show still better performance in future by exceeding the targets in other areas as well. He appealed to other commercial banks to put their best foot forward to catch up with their respective targets within the shortest possible time and most certainly within the time schedule given to them by the Reserve Bank of India.   

He also hoped that the deliberations of today’s SLBC meeting on all the agenda points shall be focused in the direction of achieving the prescribed targets, for the sake of accelerating the economic growth of this part of the country which has traditionally legged much behind other comparable States in the hilly regions of northern India.

Chairman, J&K Bank presented key note address and highlighted the achievements of the Bank.

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