SRINAGAR: The state government Thursday admitted that the CD Ratio of banks operating in the state is 14 percent less than the national benchmark of 60 percent.
Minister for Finance and Ladakh Affairs, Abdul Rahim Rather disclosed this while speaking at the 93rd meeting of J&K State Level Bankers Committee (SLBC) held on Thursday at SKICC here.
Rather, however, appreciated the commercial banks operating in the state for progress made in the field of deposit mobilization and credit expansion.
The finance minister urged for more efforts to improve their CD Ratio, which stood at 44.58 percent last fiscal, still 14.42 percent less than the All India bench mark of 60 percent.
However, he lauded the banks for improving the CD Ratio to by 8.07 percent as against the previous fiscal figure of 36.51 percent.
The minister said that the deposits as on ending March 2014 have grown by about 12 percent over the corresponding figure for the previous financial year, while the credit size has grown by about 37 percent.
He said the expansion of credit size is also in line with the trends noticed in the cumulative performance of all the member banks right from the first quarter of the year. Rather said the Agriculture sector advances have improved marginally as a share in the total advances and substantially as a share in the priority sector advances adding that it is heartening to note that the advances to the weaker sections have also improved as a percentage of total priority sector advances.
With decline in MSE advances, Rather impressed upon the banks to pay special attention towards MSME sector because it holds a high potential of generating employment for the educated youth.
He asked the them to formulate coordinated Corporate Social Responsibility (CSR) plans for the state to make some noticeable impact on the society.
Against an achievement of 100 percent coverage of farmers of under the Kissan Credit Card (KCC) during the last fiscal the meeting said only 73 percent progress has been achieved.
Rather asked the J&K Bank to extend Electronic Benefit Transfer (EBT) scheme to the all remaining 16 districts of the state during the current fiscal as this scheme is a landmark step in direction of management of all programmes involving government subsidies and financial benefits to the weaker sections of the society.
Giving a brief account of credit disbursement in J&K during last financial year under Action Credit Plan (ACP), the Chairman J&K Bank Mushtaq Ahmad said that 42 Banks operating in the state with a network of 1831 branches as on 31st March, 2014, that have extended a total credit of Rs 10, 268.58 crore registering achievement of 63 percent of the ACP target in financial terms and 53 percent in physical terms.
This includes priority sector credit of Rs 5701.15 crore (56 percent achievement of Annual Target) favoring 3,06,919 beneficiaries and non-priority credit sector of Rs 4,567.43 crore disbursed in favour of 1,06,569 beneficiaries.
With credit disbursement of Rs. 5701.15 crore to the priority sector credit, J&K Bank has been the major contributor (its share 63.48 percent) in financial terms followed by SBI with contribution of Rs 563.36 crore and PNB with Rs 233.87 crore.
On this occasion, the Minister also released Financial Literacy Guide to be used by branch managers of rural banks and lead district managers for their monthly financial literacy camps.
Chief Secretary, Iqbal Khanday, Regional Director (J&K) RBI, K K Saraf, Principal Secretary Planning and Development, B R Sharma, Principal Secretary, Finance, BB Vyas, President J&K Bank, S L Bhat, General Manager, NABARD, Administrative Secretaries and Heads of various departments, senior functionaries of state government, SIDBI, Public sector Banks, Regional Rural Banks, State/Central Cooperative Banks and representatives of other institutions attended the meet.