Banks in JK disbursed Rs 5,801 cr in Q1

Banks in JK disbursed Rs 5,801 cr in Q1

SRINAGAR: The banks operating in the state have extended credit aggregating to Rs 5,801.24 crore during the first quarter of the financial year 2015-16, while only 9% of the target set under govt-sponsored schemes has been achieved.
The J&K Bank has disbursed Rs 4,194.09 crore, which amounts to 72% of the cumulative amount disbursed by all 46 banks and financial institutions operating in the state.
The figures were shared by Chairman and CEO of J&K Bank, Mushtaq Ahmad, at the 98th State Level Bankers’ Committee (SLBC) meeting held at SKICC on Wednesday, an official handout issued here said.
Mushtaq, as per the handout, revealed that CD Ratio of all the banks operating in the state stood at 47.44% against 46.47% recorded during the corresponding quarter of previous year.
“Though there is an encouraging increase of roughly one per cent, we need to gear up to improve it further,” he was quoted as saying.
Under Priority Sector, the banks have disbursed an amount of Rs 3, 694.21 crore—an achievement of 25% of the target.
Under Agriculture Sector, the banks have provided credit aggregating to Rs 1,062.10 crore against the target of Rs 4, 669.29 crore. It amounts to 23% of the set target.
Under Education Sector, the banks have disbursed an amount of Rs 17.84 crore, registering a dismal achievement of 3%.
As per the handout, JK Bank’s Chairman took it “seriously” and urged the banks “to publicise the product and make it hassle-free”.
The banks have only disbursed credit amounting to Rs 88.76 crore under the housing sector, registering a meager achievement of 3%.
Under Micro & Small Enterprises Sector, they have disbursed a total amount of Rs 2,427.70 crore, marking an achievement of 50%, while an Rs 2,107.03 crore—24% of the target—have been disbursed under the Non-Priority Sector.
Against the Annual Action Plan 2015-16 target of Rs195.24 crore for all banks operating in the state, the achievement under four major government-sponsored schemes, including NRLM, PMEGP, NULM and SC/ST/OBC, at the end of June was to the tune of Rs17.42 crore. It is only 9 per cent of the target.
Taking a strong note of the “sluggishness of pace” in extending credit under government-sponsored schemes, Chairman, as per the release, said, “Talk of inclusive growth, financial inclusion and collective empowerment looks hollow unless we start serious initiatives aimed at extending credit under government sponsored schemes for they have been designed to encourage entrepreneurship, generate employment and bring about inclusive growth”.
He said Swabhiman programme, the phase-II of the Financial Inclusion, was taken up for implementation in the state.
Against the target of covering 5,582 identified unbanked villages (each having a population less than 2,000) in the state, 5,466 villages have been covered, he said, adding that it accounts for 98% of the target.
Under the Pradhan Mantri Jan Dhan Yojana, the banks have opened 16.84 lakh fresh accounts up to July 31 and issued RuPay Debit Cards to 14.31 beneficiaries, he said.

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