Poverty alleviation & employment generation amongst top priorities : Mushtaq

Excelsior Correspondent
SRINAGAR, Aug 25: J&K Bank has disbursed Rs 780.35 crore to the priority sector which accounts for 62% of the total priority sector credit disbursed by all banks in the State. Banks operating in J&K have extended credit facilities aggregating Rs 1,258.91 crore in favour of 69,219 beneficiaries against annual target of Rs.6,094.50 crore for 3,54,302 beneficiaries under Priority Sector during Q1 of the FY 2012-13, achieving 21% of the target in financial terms.
This was revealed by Mushtaq Ahmad, Chairman & CEO J&K Bank (Convenor J&K SLBC) at the 86th meeting of J&K State Level Bankers’ Committee (SLBC) held today at SKICC, while presenting a review report on performance of the banks in the State.
The meeting was attended by Principal Secretary Finance M Iqbal Khanday, Principal Secretary, Planning & Development B B Vyas, Chief General Manager, NABARD S. C. Rabra, Director, DFS, Government of India, Ministry of Finance, Sanjeev Jindal, Commissioner/Secretary Industries & Commerce Shantmanu, Commissioner/ Secretary Labour and Employment Yadullah,  Commissioner/ Secretary Agriculture Production Shaleen Kabra, Commissioner/ Secretary Rural Development F A Peer,  other senior officers of the banks, Reserve Bank of India, NABARD, Government departments and developmental agencies.
While reviewing sector-wise performance of banks, Mushtaq stated that under agriculture sector banks have extended credit aggregating Rs.461.97 crore to 39,557 beneficiaries against an annual target of Rs.1,771.85 crore favouring 2,10,675 beneficiaries, registering an achievement of 26%.
He suggested a regular review to redress the pendency pertaining to KCC.
According to the 86th SLBC figures, in five major schemes i.e. SGSY, PMEGP, JKSES, SJSRY and SC/ST/OBC, banks have disbursed an amount of Rs.37.64 crore in favour of 2,203 beneficiaries in all the three regions of the State against the annual target of Rs.408.63 Crore for 27,362 beneficiaries, thereby recording performance of 9% & 8% of the target in financial and physical terms respectively.
Chairman expressed concern over the performance of banks regarding Government sponsored schemes which he said was not satisfactory.
However, considering the seriousness of banks as well as the State Government in creation of employment generation opportunities, he hoped that the performance would witness substantial improvement in future.
Stressing upon the need to make FLCCs and RSETIs more vibrant and result oriented, he said, ” FLCC’s and RSETI’s are a big support  for creating financial literacy and entrepreneurial skills and can play a pivotal role in creating employability in the State.”
However, he emphasized that a pivotal role devolves on the extension agencies in proper identification of economically viable schemes and selection of genuine entrepreneurs to keep the level of case rejection by banks at the minimum and ensuring post-disbursement supervision, handholding and monitoring for preventing high mortality and improving credit servicing.
Regarding Credit Deposit Ratio, Chairman said that C D Ratio of banks in the State as on 30th June 2012 stood at 36.76% compared to the Ratio of 35.84% as on 30th June 2011 indicating an increase of 0.92%.
The Chairman reiterated that the CD Ratio of the State would be enhanced to the minimum level of 40% by the end of March, 2013 urging the banks to put in extra efforts to achieve the desired target.
He emphasized that the Government should come forward with practical measures, which would enable banks to recover their overdues expeditiously and take necessary steps for removing disabling factors to facilitate loan recovery and creating a responsive credit climate by legislating SARFAESI Act, which would help banks/ financial institutions to improve debt recovery from the willful defaulting borrowers.
Principal Secretary Finance, M I Khanday while commenting on the performance of banks vis-à-vis Kissan Credit Cards stressed upon the need to bring all categories of farmers under the ambit of Kissan Credit Card Scheme.
Secretary Law, Ghulam Hassan Tantray briefed the house about progress in respect of SARFAESI.
Principal Secretary Planning & Development B B Vyas also spoke about the various schemes and initiatives started by the Government of India like UDDAN, HIMAYAT to develop entrepreneurial skills among the youth for enhancing their employability in the state. He also discussed soft loan scheme under SKEWPY.


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