Srinagar, May 21: J&K Bank alone has restructured 3308 accounts of Micro, Small and Medium Enterprises (MSMEs) involving an amount of Rs 159.79 crores as on April 30, 2010, out of 4450 such reorganized accounts for 277.54 crores by all the banks operating in the state.
This was disclosed in a special monthly review meeting of J&K State Level Bankers’ Committee (SLBC) on MSMEs held at SKICC, Srinagar on the sidelines of 79th SLBC meeting.
A K Mehta, Executive Director/COO J&K Bank (Convener Bank) chaired the meeting comprising of stakeholders viz. Government, RBI, banks, financial institutions and representative organizations of MSMEs.
The meeting observed that the economic package was being implemented by the banks with seriousness and satisfactory progress had been achieved during the period under review.
As regards flow of credit to MSMEs sector, it was noted that till ending April, 2010 banks have sanctioned working capital loans (new) to the extent of Rs.851.68 Crore in favour of 14785 beneficiaries and incremental working capital loans to existing units amounting to Rs.364.14 Crore in favour of 3839 existing units.
Soft Loans for Digital Generator Sets have been sanctioned to the tune of Rs.3.31 Crore in favour of 105 beneficiaries. Besides, Housing Loans to the tune of Rs. 608 Crore have been sanctioned in favour of 20,921 beneficiaries; and Auto loans to the tune of Rs.415.97 Crore have been sanctioned in favour of 12,975 beneficiaries during the period.
Banks were advised to ensure that the RBI guidelines for providing collateral free loans to MSMEs up to Rs.5.00 lakh are implemented in letter and spirit. The recommendations of Prime Minister’s Task Force for enhancing flow of credit to MSMEs were included in the agenda for keeping the concerned stakeholders updated.
The representatives of trade & industry pleaded for allowing restructuring of MSMEs accounts in J&K State for two more years in view of the JK specific problems. They also appealed for restoration of the incentives granted in the industrial policy of the State, which include the incentive of subsidy on premium of land to the MSMEs.

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