State Government seems to have become responsive to social role of banks in bringing about big change in State’s economy. This is a good sign and has to be welcomed. From the ideas floated by the State Finance Minister in the 97th meeting of JKSLBC, it appears that the Government is expecting the banks to play more creative role in cementing interaction between the lending and taking agencies. The emphasis has to be on providing more facilities to those who take loans from the bank for investment in productive enterprises. The fact of the matter is that in a scenario in which private entrepreneurship is to be encouraged and expanded, it becomes imperative for the banks to modify its rules and regulations that will encourage entrepreneurs. This will ultimately lead to employment opportunities for more people besides improve the economy of the state.
Our state is lagging behind most of the states in the country in industrialization. There are different reasons for different regions for slow pace of industrial expansion. However, general opinion is that we cannot wait for the time when large scale industrialization will become a reality in our State. It may or may not become, is anybody’s guess. But what should be done without delay is that small scale entrepreneurship has to be patronized and encouraged. If this process in on the rails, it is possible to see the growth finally ending up in a level of industrialization of the State. It is in this context that our banks stand in need of changed methodology of lending to persons and organizations with a new and wider perspective.
The concept of Corporate Social Responsibility has to be translated into practice. In doing so the role of the Government is vital. It has to create conditions in which Corporate Houses feel secure and happy to invest not necessarily with the motive of multiplied returns but essentially with the motive of lending their hand in the process of development of society and improvement of the economy of the country. Take the case of flash floods of September 2014 which caused havoc in Kashmir and particularly in the city of Srinagar. The estimates of damage have not been made very precisely because our Damage Controlling mechanism has not been as updated and efficient as to give precise information on all aspects. Nevertheless, whatever data has been cobbled together should have helped in initiating proper distribution of relief and rehabilitation of affected families. J&K Bank could have and should have played yeoman’s role in bringing life back to normalcy among the affected families. From the figures that have been spelt out in the meeting, we get the impression that while allocations have been defined for various sectors yet lending and investments have not been to the expected level. In other words we can say that the banks could have given more loans to the beneficiaries and in the process developmental activities could have been widened. Be it the area of education, health, agriculture or any other sector, there has been the scope of increasing the number of beneficiaries.
J&K Bank has emerged as one of the prestigious banks in the country. It has expanded and almost all towns and villages in the State have been brought under its umbrella. As such it has to play crucial role in bringing about radical change in State’s economy, employment perspective and private entrepreneurship. The Finance Minister has laid emphasis on these parameters. The people are very eager that the banks in the State bring about healthy change in the methodology of attracting more beneficiaries of the loan facilities.
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