SRINAGAR: The government intends to take up revival of the cooperative movement in the state with the Reserve Bank of India (RBI).
According to an official handout issued here, the Chief Minister, Mufti Mohammad Sayeed, on Saturday asked the Finance Minister, Dr Haseeb Drabu, to raise the issue with RBI for revitilisation of the rural economies.
Sayeed asked the FinMin to “vigorously pursue” the RBI’s recapitalisation plan in order to “recuperate the ailing District Cooperative Banks in Baramulla, Jammu, and Anantnag districts”.
“The state will favour crediting its share of Rs 139 crore in multiple tranches, given the weak resource base of the state,” he said.
“The issue was discussed threadbare when I met the NABARD Chairman earlier this month,” he said, indicating “wider role” for state’s cooperatives in the public distribution mechanism of the state.
The ministers were participating in the ceremony organised by the J&K Bank to present dividend cheques to its largest stakeholder—the state government.
Besides the ministers, Chief Secretary B R Sharma, Principal Secretary to Chief Minister B B Vyas, Commissioner/Secretary Finance Navin Chaudhary, and J&K Bank Chairman Mushtaq Ahmad were present on the occasion. The cheques, amounting to Rs 54.13 crore, for FY 2014-15 were handed over by the J&K Bank Chairman and CEO to Chief Minister as head of the state.
With addition of the dividend, the state, which owns over 53 percent of bank’s shares, has received a total dividend income of Rs 767.31 Cr on its investment since 1938.
The investment amount of Rs 53 crore made by the state government in the bank has appreciated to Rs 2,381.63 crore on the basis of current market price of the bank’s shares, based on the closing price on BSE on 11-09-2015, registering appreciation of 4,376 per cent.
Highlighting the role of J&K Bank in growth and development of the state, the Chief Minister reiterated his confidence in the bank’s focus on inward business strategy, which stresses on enhanced lending within the state.
He credited the J&K Bank for setting high standards of professionalism, and appreciated the role it has played in the state’s socioeconomic development.
“The bank’s lending figures within the state are encouraging. We also need to devise a friendly repaying strategy to benefit business units in horticulture and industrial sectors,” he told J&K Bank Chairman.
Assuring the CM that steps would be taken to address critical areas like NPA (Non-Performing Assets) and bad loans, which were showing an upward trend for quite some time, Drabu said he, in his last meeting with the RBI Governor, pitched strongly for declaring all lending in J&K as priority sector lending. Speaking on the occasion, J&K Bank Chairman thanked the Chief Minister for his support, and apprised him about the bank’s performance.
He said the bank’s business has increased from Rs 62,871 crore as on September 30, 2010 to Rs 1, 10,342 crore on March 31, 2015.
Commercial credit in the state, he said, has more than doubled from around Rs 10,000 crore to Rs 23,000 crore during the last five years.
“For the last 5 years, our approach has gradually turned inwards. Consolidating our focus on the state further we have been changing the composition of loans and advances by increasing our credit portfolio in J&K. The ratio of advances in state Vis-a-Vis outside stood at 52:48 as on June 30.2015. The advances in the state will be further shored up in the coming quarters,” he said.
He said the bank has expanded its footprint across J&K by adding around 300 business units since September 2010. The number of its ATMs has reached 883 as on March 31, he said.
The bank, he said, will add 80-100 new business units and 150 ATMs to its network during the current financial year.
He said the bank played a major role during the recent floods and was “the first organisation to provide relief to the people affected by devastating floods”.
Under its Corporate Social Responsibility (CSR), the bank contributed around Rs 14 crore for the various projects and activities aimed at the wellbeing of poor and needy in the state, he said.
The bank also contributed Rs 5 crore towards Chief Minister’s Flood Relief Fund, he added.
Besides, he said, the bank donated 500 tents, around 23,000 kits comprising of blankets, water purifiers, hot water bottles and solar lamps to the flood-hit people.
The bank is already conducting a major recruitment drive for the post of Relationship Executives (RE), he said.