Expressing concern over poor lending in the priority sector by the banks operating in the state, chief secretary BVR Subrahmanyam on Thursday said the credit flow numbers especially in agriculture, MSME and housing loan segments are not in sync with the stated objective of the state.
Chief secretary was speaking at 109thmeeting of State Level Bankers' Committee (SLBC) organised by the J&K Bank – convenor bank for Jammu and Kashmir – in Jammu on Thursday.
"We need to introspect, track down the obstacles and find out the reasons for putting up a dismal show. Banks should push up their efforts aggressively and work in coordination with district administrations for realisation of goals," chief secretary said, according to a statement issued by the SLBC convenor bank.
"The Government is committed to uplift the economic profile of farmers and artisans with improved flow of credit and the numbers presented in the priority sector especially agriculture, MSME and housing loan segments are not in sync with the stated objective," he added.
He directed the convener bank to undertake a microanalysis at the district level to understand the problems and bottlenecks in the flow of credit and take corrective action. He also underscored the urgency to improve the penetration of the formal lending to micro and small enterprises by mapping the constituents especially in Jammu and Srinagar where the offtake under the segment was very poor with a drag on the achievement of credit deposit ratio and priority sector lending targets.
"Other priority sectors like handloom, dairy and handicraft need to be addressed in a focused manner as J&K has a huge potential for development in these sectors. All stakeholders have to work in tandem to aggressively monitor and sensitize the operative levels in the bank branches to put in serious efforts for a quantum improvement in the flow of credit to the productive sectors of the economy," CS said.
Speaking on the role played by banks in social development of the state, the CS said private banks need to participate actively in the government programmes and schemes. Banks also need to gear up to achieve the targets of business expansion and opening of branches. He directed the State Bank of India to immediately start the construction of the proposed RSETI at Kargil. He also observed that poultry insurance is not being done and advised the representatives of the insurance companies to undertake insurance henceforth to give the much needed protection and fillip to the poultry sector as the state was heavily dependent upon imports to the tune of Rs 2500 crore from the neighbouring states.
Delineating the details of the Prime Minister KissanSammanNidhiYojana the chief secretary urged upon the bankers to work in mission mode to cover all the beneficiary farmers under the scheme by opening of the accounts as the amount under the scheme of central government to provide income protection to the distressed farm sector has to be routed through bank accounts and in no case the amount will be handed physically. All the data regarding the scheme along with Aadhar card and other vital information needs to be uploaded to the portal as soon as the instructions for the same are received from the central government. The banks he added have performed well in the Prime Minister Jan Dhan Scheme and they will accomplish this task too with equal zeal and passion.
Commenting on the performance of the new generation private sector banks, Principal secretary Finance NavinChoudhary advised the banks to focus not only on the mobilisation of low cost deposits from the state but also participate in the priority sector lending and expansion of branches in the rural areas.
Earlier J&K Bank chairman and CEO (Convener J&K SLBC) Parvez Ahmed apprised the house that as per the directions of the chief secretary in the 108th SLBC, the data has been captured from the SLBC portal which has been made available to all the stakeholders to access and upload their data online. Besides promoting decision making and facilitating comprehensive deliberations, the SLBC as per the directives of the chief secretary will be running a Power Point Presentation to direct the focus of the house on the major issues associated with the Agenda which has already been circulated. Subsequently the president J&K Bank Sunil Gupta made a brief presentation about the functioning of the banks and apprised the forum that the banks operating in J&K have extended a total credit of Rs 21,821.98 crore in favour of 6.23 lakh beneficiaries registering credit target of 69 percent in financial terms and 58 percent in physical terms during the first three quarters of the current financial year. He said the target for 2018-19 is Rs 31,697.61 crore for 10.69 lakh beneficiaries under Annual Credit Plan out of which Jammu and Kashmir Bank alone has disbursed Rs14,740.81crore during the period under review, which makes for 67.55 percent of the total credit extended by the 43 banks and financial institutions operating in the state.
During the meeting, the house also constituted a sub-committee to analyse, approve and roll out Annual Credit Plan for FY 2019-20 for J&K State.
Financial Commissioner Revenue PawanKotwal, Principal Secretary Finance, Navin Kumar Chaudhary, Principal Secretary Industries & Commerce, ShaleenKabra, Principal Secretary Animal Husbandry Dr. Asgar Hassan Samoon, Regional Director, RBI Thomas Mathew, Chief General Manager, NABARD P Balachandran, Divisional Commissioner, Jammu SanjeevVerma, Deputy Commissioners of Jammu, Reasi, Samba and Udhampur and other senior functionaries of the State Government, banks, NABARD, Insurance Companies & BSNL, were also present in the SLBC meeting. The deputy commissioners of Bandipora, Ganderbal, Kupwara and Pulwama joined the meeting through Video Conferences.