Lead Bank/ SLBC (J&K) SLBC/Minutes of 95 SLBC...The Jammu & Kash Lead Bank/ SLBC (J&K) mir Bank Limited Corporate Headquarters T +91 (0)194 2481925 E [email protected] M A Road,

Lead Bank/ SLBC (J&K)

The Jammu & Kashmir Bank Limited Corporate Headquarters T +91 (0)194 2481925 E [email protected]

M A Road, Srinagar 190001 F +91 (0)194 2481925 W www.jkbank.net

Kashmir India

Ref. No. LBD/SLBC-95/2015-100

All Members of the

State Level Bankers’ Committee (J&K)

Dated: January 2, 2015

Sub: Minutes of the 95th Meeting of J&K SLBC – for necessary action on actionable points.

Sir,

We forward herewith a copy of minutes of the 95th Meeting of J&K State Level Bankers’

Committee (SLBC) held on 3rd December, 2014 at Hotel K. C. Residency, Residency Road,

Jammu for your kind information.

You are requested to go through the same and initiate action on the decisions / actionable

points pertaining to your Organization/ Department.

Desired compliance/ progress may kindly be reported to this office over email-

[email protected] / Fax 0194-2481925 enabling us to place the same before

the house in next SLBC Meeting for review.

Yours Faithfully For Convenor, J&K SLBC

Assistant Vice President (Lead Bank/J&K SLBC)

Encls: Minutes of 95th SLBC Meeting

mailto:[email protected]

Serving to Empower

Convenors of SLBC (J&K)

Minutes of 95th

SLBC meeting 1

MINUTES OF 95th MEETING OF SLBC (J&K) HELD ON 3rd DECEMBER 2014 AT JAMMU

The 95th meeting of J&K State Level Bankers’ Committee (SLBC) was held on 3rd December 2014

at Hotel K. C. Residency, Jammu to review the progress and performance of banks & financial

Institutions operating in J&K State for the half year ended September 2014 under Annual Credit

Plan 2014-15.

Mr. M. I. Khanday, Chief Secretary, J&K Government presided over the meeting, Chairman & CEO

of J&K Bank (Convenor J&K SLBC) Mr. Mushtaq Ahmad steered the proceedings. Top dignitaries

of the State Government, regulators and Banks who attended the meeting included Mr. Khursheed

Ahmad Ganai, Financial Commissioner, Industries & Commerce Deptt., Mr. B. R. Sharma,

Principal Secretary, Planning & Development Department, Mr. B. B. Vyas, Principal Secretary,

Finance, Dr. Asgar Hassan Samoon, Commissioner Secretary Agriculture Production Department,

General Manager Reserve Bank of India, Mr. A. K. Mattu, Chief General Manager NABARD Mr.

Shanker A. Pande. List of the senior officers of the State Government, Reserve Bank of India,

NABARD, representatives of Insurance Companies and BSNL, various line Departments,

concerned developmental agencies and senior level representatives of major member banks and

financial institutions operating in the State and other dignitaries who participated in the meeting is

enclosed as Annexure “A.”

Keynote address by Chairman & CEO, J&K Bank (Convenor SLBC) Mr. Mushtaq Ahmad:

At the outset the Convenor, J&K SLBC (Chairman & CEO, J&K Bank) Mr. Mushtaq Ahmad

extended warm welcome to the Chief Secretary, J&K Government, Mr. Mohammad Iqbal Khanday,

other dignitaries, members and participants. He expressed satisfaction that with the level of

participation the deliberations in the meeting would be purposeful and result oriented.

Delivering the inaugural address, Chairman & CEO, J&K Bank (Convenor J&K SLBC) Mr. Mushtaq

Ahmad stated that torrential rains and devastating floods which affected large parts of the State of

Jammu & Kashmir has resulted in large scale destruction of industry, trade, business and property

besides displacing a large segment of the population. In the back of the devastation caused by the

calamity, the financial sector had to play a major role for rehabilitation of the affected

sections/sectors. In this direction J&K State Level Bankers’ Committee held a Special Meeting on

23.09.2014 at Jammu for taking stock of the devastation caused by floods and for devising suitable

measures for relief, rehabilitation and revival of the borrowers in the affected areas. He stated that

J&K SLBC formulated a comprehensive package in consultation with the representatives from

Trade and Industry. Chairman & CEO, J&K Bank complimented the role played by IBA & RBI in

approving the package within the shortest possible time. While applauding the role played by the

banks in implementation of the package, Chairman, J&K Bank (Convenor J&K SLBC) stated that

banks are very serious in implementation of various initiatives taken by J&K SLBC for the revival,

rehabilitation and restructuring of various types of credit facilities and disbursement of fresh

financial assistance to the eligible existing/ fresh borrowers whose businesses have been affected

by the floods. Giving the progress made by the banks in providing financial assistance to the flood

victims, he stated that upto November 21, 2014 the banks in J&K State have processed/

sanctioned 3,669 applications involving an amount of Rs.365.71 Crore out of which Rs.171.11

Crore have been disbursed in favour of 2,060 beneficiaries affected by the natural calamity.

Chairman, J&K Bank (Convenor J&K SLBC) assured the State Government that banks are sincere

in implementation of the package and the process of restructuring/ rescheduling of all types of

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Minutes of 95th

SLBC meeting 2

loans and disbursement of fresh financial assistance, under the package, to the people affected by

the floods shall be completed well before the timeline set by the Reserve Bank of India.

Mr. Mushtaq Ahmad, Chairman & CEO J&K Bank (Convenor SLBC) stated that J&K SLBC is

making concerted efforts to implement the various initiatives taken by the Central and State

Government for the overall economic development of the State. The Financial Inclusion which is

the prestigious project of GoI has always remained a high priority for promoting inclusive growth

and bringing into the banking fold the people who live outside formal economy, whose daily

struggle is still basic in nature and moves around the quest for survival, he stated. Chairman, J&K

Bank (Convenor J&K SLBC) stated that Financial Inclusion Plan has become a national mission

after launching of “Pradhan Mantri Jan Dhan Yojana‟ a comprehensive financial Inclusion

Package, across the country on 28th of August 2014 by Hon’ble Prime Minister of India. He stated

that banks in J&K State were not in a position to keep pace with the rest of the Country due to the

obvious reasons but expressed optimism that within a short period of time banks operating in the

State shall fall in line. Giving the progress under scheme the Chairman, J&K Bank (Convenor J&K

SLBC) stated that banks have organized 2,291 camps in all the 22 districts across the State in

which 3,50,175 accounts have been opened and Rupay Cards issued to 31,603 beneficiaries upto

30th September 2014.

Regarding the progress in implementation of the initiatives taken in the State, he highlighted the

following:

Swabhimaan Campaign/ Financial Inclusion Plan Phase-I, has been successfully

accomplished with the coverage of all the 795 villages and 8 left out villages with population

above 2000 by the concerned participating banks.

Phase-II of Financial Inclusion Plan which envisages, providing banking facilities to 5582

identified villages having population below 2000 in J&K State, to be covered in a phased

manner during the financial years 2012-13, 2013-14, 2014-15 and beyond is under

implementation and against the target of 1504 villages set for the financial year 2014-15,

banks have covered 831 villages upto the end of September 2014 constituting 55% of the

target for the year. Against the cumulative target of covering 4077 villages for the FYs 2012-

13, 2013-14 and 2014-15 banks have covered 3,565 villages upto 30th September 2014

thereby achieving 87% of the cumulative target. Out of this J&K Bank has covered 2,123

villages constituting 60% of total progress achieved while SBI with 540 villages (15%), PNB

with 156 villages (4%), JK Grameen Bank with 610 villages (17%) and Ellaquai Dehati Bank

with 136 villages (4%) are the other Participating banks. Of the total 3,562 villages covered

under Phase-II, banking facilities to 160 unbanked villages were provided by establishing

regular brick and mortar bank branches, 3,236 villages through BC Model and remaining 169

villages through other modes like mobile banking vans.

Regarding the GoI, MoF initiative for 100% coverage of farmers under Kissan Credit Card Scheme, Mr. Mushtaq Ahmad, Chairman & CEO J&K Bank (Convenor SLBC) stated that banks have been able to achieve 82% of target upto the end of September 2014 by sanctioning 8.03 lakh KCCs against the revised target to cover 9.81 lakh farm operating families in J&K State. He stated that the banks lost complete month of September due the floods, otherwise the progress could have been much better.

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Minutes of 95th

SLBC meeting 3

In compliance with the RBI directive the Financial Literacy Centres (FLCs) are operational in

all the 22 districts of J&K State, which include 12 FLCs set up by J&K Bank and 10 FLCs

established by SBI, as per their lead bank responsibility. All the FLCs are conducting

Financial Literacy awareness camps in their respective area of operations using

Standardized Financial Literacy Material.

Similarly, the target of setting up of Rural Self Employment Training Institutes (RSETIs) in

accordance with the GoI directive has been accomplished with RSETIs functioning in all the

22 districts of the State. This includes 12 RSETIs set up by J&K Bank and 10 RSETIs set up

by SBI. It is a matter of great satisfaction that all RSETIs are working smoothly and are

providing training for skill development and facilitating credit linkages to entrepreneurs.

Convener, SLBC (Chairman & CEO, J&K Bank) stated that in terms of the guidelines of GoI,

MoF the benefits under various Social Security Schemes and State Subsidies have to be

transferred electronically to the accounts of beneficiaries without any manual intervention

and J&K Bank has been designated as the Leader Bank in all the 22 districts of Jammu &

Kashmir by the State Government and entrusted with the responsibility of ensuring transfer of

benefits and Government entitlements under various schemes directly into the accounts of

beneficiaries. He informed the house that in first phase the scheme has been implemented in

six pilot districts of the State i.e Srinagar, Ganderbal, Jammu, Rajouri, Kargil & Leh and

benefits under IGNOAPS have been transferred electronically into beneficiaries accounts. He

further stated that data validation in respect of remaining 16 District is under process and the

districts shall be covered under the scheme very soon.

Performance of banks under ACP for the FY 2014-15

Mr. Mushtaq Ahmad, Chairman/ CEO, J&K Bank stated that Banks were supposed to achieve

atleast 50% of the Annual Credit Plan target by 30th September 2014 but unfortunately only

27.57% of ACP targets have been achieved.

Giving a brief account of the achievements made by banks in J&K State he stated that 46 Banks/

FIs operating in the State through a network of 1893 branches as on 30th September 2014, have

extended total credit of Rs.5,512.49 Crore to 1,87,662 beneficiaries (both under Priority & Non-

Priority Sectors) against Annual Credit Plan (ACP) target of Rs.19,993.88 Crore for 8,83,458

beneficiaries, registering achievement of 27.57% of the ACP target in financial terms and 21.24%

in physical terms. This includes Priority Sector Credit of Rs.3,523.50 Crore disbursed by the banks

in favour of 1,43,979 beneficiaries(achieving 28.27% of the Annual target in financial terms and

21.34% in physical terms) and Non-Priority Sector credit of Rs.1,988.99 Crore disbursed in favour

of 43,683 beneficiaries (achieving 26.41% of the Annual target in financial terms & 21% in

physical terms).

With credit disbursement of Rs.2,600.37 Crore to the Priority Sector, J&K Bank has been the major

contributor (share 73.80%) in financial terms followed by SBI with the contribution of Rs.242.80

Crore (6.89%), PNB with Rs.104.37 Crore (2.96%), other Commercial Banks with Rs.257.01 Crore

(7.29%),RRBs with Rs.207.46 Crore (5.89%), and Co-operative Banks with Rs.111.28 Crore

(3.16%).

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Minutes of 95th

SLBC meeting 4

Institution-wise Credit Flow

Out of the total credit disbursement of Rs.5,512.49 Crore disbursed by banks in the State during

first half of FY 2014-15, J&K Bank alone has disbursed Rs.3,916.27 Crore which accounts for a

lion’s share of 71% of the total credit disbursed by all banks in the State. All other 45 banks/FIs

operating in the State put together have disbursed Rs.1,596.22 Crore, thereby contributing 29% of

the total credit disbursed in the State during the period under review. This includes SBI with

disbursement of Rs.523.78 Crore i. e 9.50%, RRBs Rs.279.30 Crore i. e 5.06%, Cooperative

Banks with disbursement of Rs.147.58 Crore which constitutes 2.68%, PNB with Rs.122.86 Crore

which constitutes 2.23%, while other commercial banks have contributed Rs.522.49 Crore which

constitutes 9.47% of total credit extended by all banks.

Sub-Sector-wise Credit dispensation under Priority Sector

Elaborating on Sub-Sector-wise flow of credit under Priority Sector, the Chairman, J&K Bank

(Convenor J&K SLBC) stated that Under „Agriculture Sector‟ against annual target of

Rs.4,004.55 Crore for 4,19,015 beneficiaries, banks have disbursed total amount of Rs.1,073.25

Crore in favour of 72,758 beneficiaries upto 30th September 2014 registering an achievement of

26.80% in financial terms and 17.36% in physical terms.

Under ‘Micro & Small Enterprise‟s Sector‟ against the annual target of Rs.4,195.14 Crore for

1,43,623 beneficiaries, banks have disbursed an amount of Rs.1,224.70 Crore in favour of 34,961

beneficiaries upto 30th September 2014, thereby registering achievement of 29.19% in financial

terms and 24.34% in physical terms.

Under „Education Sector‟ against the annual target of Rs. 541.78 Crore in favour of 14,024

beneficiaries banks have disbursed an amount of Rs.31.78 Crore in favour of 1,451 beneficiaries

during H1 of Current financial year achieving just 6% of target in financial terms and 10.35% in

physical terms.

Under „Housing Sector‟ against the annual target of Rs.2,450.83 Crore favouring 38,771

beneficiaries banks have disbursed total amount of Rs.241.19 Crore in favour of 7,436

beneficiaries upto 30th September 2014, achieving 10% in financial terms and 19% in physical

terms.

Under „Other Sectors‟ against the annual target of Rs.1,271.80 Crore in favour of 59,340

beneficiaries banks have disbursed Rs.952.58 Crore in favour of 27,373 beneficiaries during H1 of

FY 2014-15 which works out to an achievement of 75% of the target in financial terms and 46.13%

physical terms.

Credit Disbursement under Non-Priority Sector

Under Non-Priority Sector, the Convenor SLBC stated that against the annual target of

Rs.7,529.78 Crore favouring 2,08,685 beneficiaries, banks have disbursed Rs.1,988.99 Crore

favouring 43,683 beneficiaries achieving 26.41% of target in financial terms & 21% in physical

terms. J&K Bank’s share at Rs.1,315.90 Crore favouring 23,547 beneficiaries, constitutes 66% of

total credit to Non-Priority Sector in financial & 54% in physical terms. Other Banks operating in the

State put together have disbursed Rs.683.09 Crore in favour of 20,136 beneficiaries (constituting

34% of total credit to the sector in financial & 46% in physical terms). These include SBI with

disbursement of Rs.280.98 Crore (14%), PNB Rs.18.49 Crore (0.93%), RRBs Rs.71.84 Crore

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Minutes of 95th

SLBC meeting 5

(3.61%), Co-operative Banks Rs.36.28 Crore (1.82%) and other commercial banks with

disbursement of Rs.265.49 Crore constituting 13.35% of the total disbursement made by all the

banks under Non-Priority sector.

Credit Deposit Ratio

The Convener, SLBC stated that against the National Benchmark of 60%, the banks operating in

J&K State have achieved CD Ratio of 47.27% as on 30.09.2014 against 40.47% achieved during

the corresponding period of previous financial year. He informed that CD Ratio has shown

substantial improvement after including Corporate Sector advances of Rs.2,831.17 Crore, made

by outside state branches of three major Banks i. e JK Bank, SBI and PNB for financing the

projects in the State, in the aggregate advances of all banks outstanding as on 30th September

2014.

During the period under review the CD Ratio of J&K Bank has improved by 4.41% YoY Basis

(4.94% after including the Corporate Sector advances of Rs.234.24 Crore), SBI by 0.85% YoY

(19.56% after including Corporate Sector advances of Rs.1, 894.57 Crore) while CD Ratio of PNB

has declined by 1.70% YoY basis (but after including the Corporate Sector advances of Rs.702.36

Crore the CD Ratio of PNB shows increase of 13.05% YoY basis). The CD Ratio of RRBs has also

improved by 1.55% from 44.33% as on 30.9.2013 to 45.88% as on 30.09.2014 while as in respect

of Co-operative Banks it has improved by 2.04% from 35.11% as on 30.09.2013 to 37.15 % as on

30.09.2014.

CREDIT FLOW UNDER GOVERNMENT SPONSORED SCHEMES:

The Convener SLBC stated that against Annual Action Plan (2014-15) target of Rs.439.90 Crore

for 24,158 beneficiaries for all banks operating in the State, the achievement at the end of

September 2014 under five major Government Sponsored Schemes, viz. NRLM, PMEGP, NULM,

JKSES and SC/ST/OBC is to the order of Rs.80.48 Crore spread over 3,976 beneficiaries in all the

three regions of the State thereby registering an achievement of 18% of the target in financial and

16% in physical terms against 17% achievement in financial & 15% in Physical terms as on

corresponding date of the previous financial year. The 18% achievement under Government

Sponsored Schemes during six months is quite dismal and the same continues to remain an area

of concern for SLBC, he stated.

J&K Bank’s share at Rs.59.70 Crore favouring 2,680 beneficiaries constitutes 74% of total credit

under this segment in financial & 67% in physical terms. Other Banks/FIs operating in the State put

together have disbursed Rs.20.78 Crore to 1,296 beneficiaries which constitutes 26% of total credit

to the sector in financial & 33% in physical terms.

Mr. Mushtaq Ahmad stated that banks need to do a self introspection and put in extra efforts so

that the targets fixed under Government Sponsored Schemes are achieved in the remaining two

quarters of the current financial year. He proposed constitution of Joint Committee with senior level

representatives from State Government and banks, to look into the impediments coming in way of

healthy credit dispensation under the Government sponsored schemes.

Summing up the keynote address, the Chairman/ CEO, J&K Bank (Convenor J&K SLBC) stated

that with the achievements in hand, it may not be justified to assure the State Government that

banks are quite serious in achieving the targets set under different sectors under Annual Credit

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Minutes of 95th

SLBC meeting 6

Plan 2014-15. He stated that the present scenario needs serious introspection and we have to

address the issues collectively.

Thereafter, the agenda of the meeting was taken up for deliberation as under:

SEGMENT- 1 (REVISION)

CONFIRMATION OF MINUTES OF 94th MEETING & SPECIAL MEETING OF J&K

SLBC HELD ON 20th AUGUST 2014 AND 23rd SEPTEMBER 2014 RESPECTIVELY:

As no amendments to the minutes of the 94th meeting & Special meeting of J&K SLBC held on 20th

August 2014 and 23rd September 2014 respectively were received from any quarter, the house

confirmed the minutes.

FOLLOW-UP OF ROLLED OVER ACTIONABLE POINTS OF PREVIOUS SLBC

MEETINGS:

A) Legislating SARFAESI Act:

On enforcement of SARFAESI Act in J&K State, Convenor SLBC (Chairman, J&K Bank) stated

that J&K SLBC is aware that State Government is quite serious in providing comfort to the banks

and lending institutions in the State by way of SARFAESI Act and steps to remove the legal

hurdles to enforce the said act in the State have already been initiated. He however, impressed

upon the State Government to expedite the process so that the matter is taken to a logical

conclusion.

(Action: State Government)

B) Plans for Corporate Social Responsibility of banks:

The J&K SLBC in its 91st meeting held on 16th December 2013 approved a Sub-Committee under

the Convenorship of NABARD with members from three major banks viz J&K Bank, SBI and PNB

to plan tangible action under CSR initiatives which would be beneficial for the people of the State.

The house noted with concern that no substantial progress has been made on CSR front till date

despite constitution of Sub-Committee.

Chief General Manager, NABARD, Mr. Shanker A. Pande stated that, as a CSR initiative,

NABARD is planning to avail the services of Reuters Market Light (RML) to provide online

information to farmers viz-a-viz commodities they are growing. He extended invitation to major

banks operating in the state to participate in the process.

Chief Secretary, J&K Government, Mr. M. I. Khanday who presided over the meeting while taking

review of the performance of the banks under various segments of economy under Annual Action

Plan 2014-15 stated that in view of devastation caused by the recent floods, generous CSR plans

are required to be prepared by the banks to help the flood victims to come out of the difficulties. He

requested the banks to draw CSR plans especially for the flood hit people of J&K State.

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Minutes of 95th

SLBC meeting 7

Chairman J&K Bank and Convenor J&K SLBC stated that CSR programmes are being directly

handled by the Corporate offices of the banks and nationalized banks operating in the State have

to seek approval from their Corporate offices, which are situated outside the State, for allocation of

funds for carrying out CSR activities in the State which generally takes time and ultimately impedes

the process. He further stated that corporate offices of the banks prefer to carry out the CSR

activities around their respective geographies. He however, expressed satisfaction that banks in

J&K State are taking up minor CSR activities individually.

While commenting on the CSR initiatives taken by J&K Bank viz-a-viz flood affected people, the

Convenor J&K SLBC informed that J&K Bank has identified 17,000 families across the State who

have been badly affected by natural calamity and a kit consisting of Blankets, water bottle, water

purifier etc are being provided to each family. He stated that Met Life insurance Company has also

contributed Rs.75 lakh for this initiative. The Chairman J&K Bank stated that in addition to the

contributions already made by J&K Bank to the Chief Ministers Relief Fund for flood victims the

Bank further desires to donate an amount of Rs.5.00 Crore subject to the approval of RBI.

The representatives of other banks also furnished the details of the relief measures taken by them

for the flood victims of J&K State. The contributions consists of 1000 blankets distributed by SBI,

1000 hot water bottles planned to be provided by AXIS bank, one day salary contributed by 68,000

employees of PNB to the Prime Ministers Relief Fund and one day to one week salary contributed

by employees of Reserve Bank of India.

General Manager, RBI, Mr. A. K. Mattu stated that the present situation in J&K State warrants

more CSR initiatives and banks should wholeheartedly come forward and provide generous

support to the flood affected people of the State.

Concluding the deliberations on CSR, Chairman J&K Bank and Convenor J&K SLBC stated that in

view of the CSR programmes directly being handled by the Corporate offices of the Banks and

only three banks viz J&K Bank, JKGB and EDB having their Corporate/ Head offices operating

from the State, the CSR should not form the part of SLBC agenda henceforth. However, J&K

SLBC should write to the Corporate Offices of the major banks operating in the State to contribute

generously for the flood affected people of the J&K State under CSR.

(Action: J&K SLBC Secretariat)

After deliberations it was decided that the agenda item be dropped henceforth:

C)Convening of Sub-Committee meeting of J&K SLBC on Relaxations/Concessions to Trade & Industry in J&K State-Extension granted by RBI in the period of relaxation/concessions to borrowers/ customers in the State of Jammu & Kashmir

The house placed on record that Reserve Bank of India has extended the period of relaxation/

concessions to borrowers/ customers in the State of Jammu & Kashmir for a further period

of two years i. e. upto 31st March 2016.

D) Convening of Sub-Committee of SLBC for Export Promotion

The house placed on record the outcome of the 6th meeting of the sub-committee of SLBC for

export promotion for J&K State held on 28th June 2014 at Srinagar.

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Minutes of 95th

SLBC meeting 8

SEGMENT- 2 (SPECIAL AGENDA POINT)

AGENDA ITEM NO: 95.01

J&K FLOODS 2014-(RECOMMENDATIONS PUT FORTH BY J&K SLBC FOR RELIEF, REHABILITATION, REVIVAL AND RESTRUCTURING OF VARIOUS TYPES OF CREDIT FACILITIES IN THE AREAS AFFECTED BY NATURAL CALAMITY).

The Chairman, J&K Bank (Convenor J&K SLBC) stated that the package formulated by J&K State

Level Bankers’ Committee and approved by Reserve Bank of India with some modifications has

already been circulated among all the members.

Giving the progress made by the banks under the package the Chairman J&K Bank stated that

upto November 21, 2014 the banks in J&K State have received 6,383 applications out of which

3,669 applications involving an amount of Rs.365.71 Crore have been processed/ sanctioned by

the banks and credit upto the tune of Rs.171.11 Crore has been disbursed in favour of 2,060

beneficiaries affected by the natural calamity. Giving the Bank-wise details, he stated that J&K

Bank has disbursed credit of Rs.112.95 Crore to 1,037 beneficiaries, HDFC Bank Rs.38.30 Crore

to 392 beneficiaries, PNB Rs.12.78 Crore to 459 beneficiaries, SBI Rs.3.66 to 141 beneficiaries,

Allahabad Bank Rs.3.26 to 25 beneficiaries

The Chairman, J&K Bank impressed upon the bankers to complete the exercise of rescheduling of

eligible loans well before March 31, 2015 which, he said, is the timeline set by RBI for

implementation of the package. He emphasized that banks should not wait for 31st March 2015 but

try hard to get the package implemented by the end of February 2015. He however, expressed

optimism that the package shall be extended and the whole process completed well before the

stipulated timeline

On the implementation of the package, Financial Commissioner, Industries & Commerce Deptt.,

Mr. Khursheed Ahmad Ganai pointed out that barring J&K Bank other banks operating in the State

are not prompt in implementation of the package which he said is based on the feedback received

from Association of Industries Kashmir. He emphasized that banks should come forward and take

expeditious action in implementation of the package.

Chief Secretary, Mr. M. I. Khanday while taking stock of the measures initiated by the banking

industry in rescheduling/ restructuring of various types of the credit facilities in respect of the

existing borrowers and providing of financial assistance to the fresh borrowers affected by the

natural calamity emphasized that the banks should sensitize their operational levels about the

implementation of the package within the given timeline. He stated that share of J&K Bank in total

loans sanctioned/ disbursed by all the banks together under the package indicates that most of

the work has been done by J&K bank alone. He advised the other banks to do more.

(Action: Member banks)

For the implementation of the package within the stipulated time frame, the house decided that

Sub-Committee of SLBC should review the performance of individual banks in implementation of

package on fortnightly basis


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Minutes of 95th

SLBC meeting 9

SEGMENT- 3(FINANCIAL INCLUSION/ THRUST AREAS)


FINANCIAL INCLUSION PLAN (FIP) OF J&K STATE:

(I) „Swabhimaan Campaign‟ for coverage of villages with population above 2000

(II) Provision of banking services to villages with population below 2000:

(III) Pradhan Mantri Jan Dhan Yojana (PMJDY)

(I) Swabhimaan Campaign‟ for coverage of villages with population above 2000

It was noted with satisfaction that the Swabhimaan Campaign/ Financial Inclusion Plan Phase-I,

has been successfully accomplished with the coverage of all the 795 villages and 8 left out villages

with population above 2000 by the concerned participating banks.

The house decided that, since the Swabhimaan Campaign’ was accomplished, the item be

dropped from the Agenda of the SLBC meetings henceforth.


(II) Provision of banking services to villages with population below 2000:

Regarding Phase-II of FIP for coverage of villages having population less than 2000, the

Convenor, SLBC (Chairman, J&K Bank) stated that providing banking services to 5582 identified

villages having population below 2000 in J&K State, to be covered during 2012-13,2013-14, 2014-

15 and beyond 2015, has already been taken up for implementation and against the target of 1504

villages set for financial year 2014-15, 831 villages were covered upto 30th September 2014

constituting 55% of the target for the year. Banks have till date covered 3,565 villages against the

cumulative target of 4077 for FYs 2012-13, 2013-14 and 2014-15 thereby achieving 87% of the

cumulative target upto the end of September 2014.

Chief Secretary, J&K Government, Mr. M. I. Khanday expressed satisfaction over the progress

made by the banks under Phase-II of Financial Inclusion Plan and advised to maintain the tempo

so that the target of covering 5582 villages by March 2016 is accomplished.

The house placed on record that all the FIP participating banks have achieved a good percentage

of achievement as on 30th September 2014 viz-a-viz cumulative targets upto 31st March 2015

except Punjab National Bank & Ellaquai Dehati Bank which are at 70% & 69% respectively. Both

the Banks were advised to accelerate the process so as to achieve their respective target by 31st

March 2015.

(Action: concerned FI Banks)

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Minutes of 95th

SLBC meeting 10

(III) Pradhan Mantri Jan Dhan Yojana (PMJDY)

The house placed on record that banks, under Pradhan Mantri Jan Dhan Yojana (PMJDY), have

organized 2,291 camps in all the 22 districts across the State in which 3,50,175 accounts have

been opened and Rupay cards issued to 31, 603 beneficiaries upto 30th September 2014.

The house also placed on record the allocation of Sub-Service areas and Urban Wards to banks in

J&K State under Pradhan Mantri Jan Dhan Yojana (PMJDY).

Chief Secretary, J&K Government Mr. M. I. Khanday stated that the progress made by the banks

under PMJDY in J&K State is slow as compared to the other States of the Country. He

emphasized that banks should put in concerted efforts to bring every household under the banking

ambit which he said is the main objective of the programme.


Implementation of Electronic Benefit Transfer (EBT) Scheme in J&K State:

The Convenor, SLBC (Chairman, J&K Bank) informed the house that in the first phase the scheme

has been implemented in six pilot districts of the State i.e Srinagar, Ganderbal, Jammu, Rajouri,

Kargil & Leh and benefits under IGNOAPS have been transferred into the accounts of beneficiaries

successfully. As regards implementation of EBT Scheme in other districts of the State and

coverage of other social security schemes under EBT Scheme, the Convenor SLBC stated that the

data validation in respect of remaining 16 Districts is under process and these districts shall be

covered under the scheme very soon. Giving the progress on the number of accounts validated, he

stated that out of 1,15,868 accounts received from various banks for validation, 96,782 accounts

have been validated upto 14th October 2014 and expressed optimism that the remaining accounts

shall be validated soon.

The Secretary IT Department, J&K Government, on the implementation of the EBT Scheme in the

remaining 16 districts of the State, informed that telecom connectivity is the major impediment

coming in way of smooth implementation of the Scheme. He however, assured that as soon as the

connectivity is established the scheme shall be rolled over in these districts.

Chief Secretary, J&K Government while expressing satisfaction over the smooth implementation of

EBT Scheme in the State of Jammu & Kashmir advised the representatives of banks to expedite

validation of beneficiaries accounts in respect of the remaining 16 districts so that the EBT project

is successfully taken to its logical conclusion in a seamless manner.

(Action: J&K Bank/ Finance Department, J&K Govt./LDMs & other banks)


100% coverage of farmers in J&K State under Kissan Credit Card (KCC) Scheme:

Regarding GoI, MoF initiative for 100% coverage of farmers under Kissan Credit Card Scheme,

Chairman, J&K Bank Mr. Mushtaq Ahmad stated that upto the end of September 2014, banks

have sanctioned 8,03,586 KCCs in J&K State, out of which 6,53,286 KCC cases have been

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SLBC meeting 11

disbursed credit to the tune of Rs.4,630.47 Crore. As per the data available 6,87,535 KCC cases

have been sponsored by Agriculture Department, J&K Govt. to various banks operating in the

State and 2,89,687 KCC cases have been taken up by the banks directly. Out of the total KCC

cases sponsored 1,63,358 cases have been rejected while 10,278 cases are pending with banks.

This translates into achievement of 82% of the revised target of 9,81,449 farm-operating families in

the State, he stated.

Out of the total KCC cases sanctioned by banks, the Chairman, J&K Bank (Convenor, SLBC)

stated that 51% contribution has come from J&K Bank alone having sanctioned 4,13,060 KCCs.

Other major contributors have been JKGB with 1,22,442 KCCs(15%), SBI with 65,993 KCCs(8%),

EDB with 59,605 KCCs(7%), PNB with 43,066 KCCs(5%) & JCC Bank with 36,734 KCCs(5%).

The house unanimously decided to extend the timeline for 100% coverage of farmers in J&K State

under Kissan Credit Card (KCC) Scheme, which is expiring on 31st December 2014, to 31st March

2015 which has become a compulsion after loss of two months i. e September and October 2014

because of flash floods that hit J&K State.

Chief Secretary, J&K Government, Mr. M. I. Khanday while expressing displeasure over the huge

gap between the achievements and target under KCC Scheme as on 30th September 2014

emphasized that all the stake holders should explore ways and means for covering the remaining

1,77,863 farmers under the scheme at any cost by 31st March 2015 which is now the final timeline

for 100% coverage under the scheme.. The rejection of the substantial number of KCC cases

sponsored remains a cause of concern, he stated.

The house decided that the individual banks should make wholehearted efforts for covering of

remaining farm operating families under KCC Scheme upto 31st March 2015 which has been fixed

as the final timeline for 100% coverage under the Scheme.

Commissioner/ Secretary Agriculture Production Department, Dr. Asgar Hassan Samoon stated

that huge gap between the number of cases sanctioned by the banks and the cases disbursed

credit under KCC Scheme is the cause of concern. He emphasized that KCC applications received

and sanctioned should be expeditiously disposed off and reasons for rejection of cases if any

should be intimated to the concerned sponsoring agency. He also emphasized for coordinated

efforts by all the concerned State Government Departments for rejuvenation of silk industry in all

the three regions of the State as there is enormous scope for silk production in the State and the

same be also brought under the ambit of KCC Scheme.

After deliberations, it was decided that:

All the stakeholders involved in the process, viz. Agriculture Production Department,

Revenue Department, Banks operating in the State, etc. to make necessary efforts

in order to ensure that 100% coverage of farmers under KCCs in J&K State is

achieved by 31st March 2015 which shall be the last timeline for 100% coverage

under the Scheme.

(Action: Director, Agriculture Department (Kashmir/Jammu)/

Revenue Deptt./All member banks/SLBC Secretariat)

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SLBC meeting 12

All the stakeholders, viz. Agriculture Department, Revenue Department and banks

will ensure that pendency of cases is cleared expeditiously.

(Action: Director, Agriculture Department (Kashmir/Jammu)/

Revenue Deptt./All member banks/SLBC Secretariat)

Directorate of Sericulture, Government of Jammu & Kashmir to devise a scheme to

bring the sericulture within the purview of KCC disbursement and forward the same

to SLBC Secretariat/ Member Banks of J&K SLBC for examination.

(Action: Director, Sericulture Department)

Agenda Item No. 95.05

Branch Expansion Plan:

The Chairman, J&K Bank (Convenor, SLBC) stated that the Branch Expansion Plan for J&K State

for the FY 2014-15 stood at 259 branches which included backlog of 115 branches. The BEP

2014-15 included J&K Bank=118 branches, SBI=28 branches, PNB=8 branches, JKGB=32

branches, EDB=25 branches, HDFC Bank=7 branches, SBP=2 branches, Andhra Bank=2 branch;

Axis Bank=7 branches, IDBI Bank=3 branches, OBC=3 branches, Corporation Bank= 6 branches,

ICICI Bank=8 branches, IOB=4 branches, Dena Bank=1 branch, Urban Coop. bank=3 branches

and Anantnag Central Co-operative Bank=2 branches. Mr. Mushtaq Ahmed stated that out of the

BEP of 259 branches, 82 branches were to be opened in the identified unbanked rural centers,

which works out to 31.66% of the total branches planned to be opened in the financial year against

the regulatory requirement of 25%.

Chief Secretary, J&K Government expressed displeasure over the huge backlog under BEP 2014-

15. He stated that 13% achievement under BEP as on 30th September 2014, in no way can be

considered as satisfactory and emphasized that at least 100 new branches should be opened by

the banks upto 31st March 2015 in J&K State.

The house noted with concern that against the BEP of 259 branches, the banks have opened 33

branches during the first half of FY 2014-15 thereby registering achievement of 13%. The house

also noted that out of 33 branches, 20 branches are opened by J&K Bank alone, 5 branches by

JKGB, 4 branches by HDFC Bank, 2 branches by ICICI bank and one branch each by SBP and

Corporation Bank. None of the other banks have opened any branch during H1 of CFY.

The member banks were advised to ensure that their BEPs are accomplished well

before the completion of the Current financial year.

(Action: All member banks)


Setting up of Financial Literacy Centres (FLCs) in J&K State – progress achieved as

on 30.09.2014:

It was noted that Financial Literacy Centres (FLCs) have been operationalized in all the districts of

the State by the concerned banks, viz. J&K Bank in 12 districts and SBI in 10 districts as per their

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SLBC meeting 13

Lead Bank responsibility. All the FLCS are organizing Financial Literacy Camps smoothly and

during Q2 of FY 2014-15, a total of 256 Financial Literacy Camps were organized in which 13,816

persons have participated.

In pursuance to the decision taken in the 89th meeting of J&K SLBC held on 6th June 2013 that all

rural branches of banks operating in the State, should hold at least one financial literacy

programme every month in terms of RBI guidelines, the house placed on record that 1604 financial

literacy camps have been conducted by 859 rural branches of fourteen major banks during the Q2

of FY 2014-15 which is not satisfactory based on RBI guidelines which stipulates holding of at least

one camp per rural branch per month. The non-compliance of RBI guidelines by the banks

operating in the State was viewed seriously and the house decided that controlling offices of the

banks should issue suitable directions to all their rural branches operating in J&K State for strict

compliance of the said regulatory guidelines.


The house noted with satisfaction that the activities undertaken by all the FLCs during the quarter

ended September 2014 have facilitated credit linkage to 599 entrepreneurs of which 442

entrepreneurs have established their income generating ventures.

State Mission Director, State Rural Livelihood Mission (SRLM) requested for holding of special

Financial Literacy Camps for SHGs in 9 blocks i. e . Khansahib (District Budgam), Lar (District

Ganderbal), Kupwara (District Kupwara) and Sumbal (District Bandipora) in Kashmir region and

Chenani (District Udhampur), Bhasoli (District Kathua), Ghagwal (District Samba), Bishnah (District

Jammu) and Gundna (District Doda) in Jammu region

The Chief Secretary, J&K Government advised the concerned Sponsoring banks to facilitate

holding of the Special Financial Literacy camps for SHGs in the 9 blocks as proposed by State

Mission Director for SRLM.

(Action: FLC sponsoring Banks / All LDMs/ SLBC Secretariat)

Standardized Financial Literacy Material

The house noted with satisfaction that in pursuance to the guidelines issued by Reserve Bank of

India the Financial Literacy Guide, Financial Diary and Financial Literacy Posters are being used

as a Standardized Financial Literacy Material in the Financial Literacy Camps organized by

Financial Literacy Centers and rural branches of Banks in all the districts of the State


Setting up of Rural Self-Employment Training Institutes (RSETIs):

The house noted that J&K Bank and SBI have operationalized RSETIs in their all respective Lead

districts in J&K State.

The house placed on record that 2,198 persons were trained by the 22 RSETIs during Q2 of FY

2014-15 against 1,394 persons trained during the corresponding period of the previous year: YoY

increase of 804 persons (58%). The activities undertaken by all the 22 RSETIs during the quarter

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SLBC meeting 14

ended September 2014 facilitated credit linkage to 313 entrepreneurs all of which have established

their income generating ventures.

(Action: JKBL/SBI/SLBC Secretariat)

On the reimbursement of the training costs being incurred by the RSETIs, Chief Secretary, Mr. M.

I. Khanday advised the Mission Director, SRLM to realize the bills raised by Sponsoring banks on

this account as per the availability of the funds.

(Action: State Mission Director, SRLM)

Status regarding allotment of land by State Government to RSETIs

The Chief Secretary, Mr. M. I. Khanday stated that State Government is committed to provide land

to the concerned sponsoring banks for raising permanent structures for housing RSETIs. He

expressed the hope that the hurdles on the issue of allotment of land to the concerned banks shall

be resolved soon.

Commissioner/ Secretary, Revenue Department informed that Land has been identified for RSETIs

in all the 22 districts of the State and the legal formalities to handover the same to the concerned

sponsoring banks are under process

(Action: J&K State Government)

SEGMENT- 4 (PEREFORMANCE REVIEW OF BANKING SECTOR)


CREDIT FLOW TO PRIORITY SECTOR:

Bank-wise/ Sector-wise/ Region-wise achievements in lending to Priority Sector

under Annual Credit Plan 2014-15 as at end of September 2014

The house recorded that as on 30th September 2014 banks have extended total credit of

Rs.5,512.49 Crore in favour of 1,87,662 beneficiaries (both under Priority and Non-priority

Sectors) against aggregate target of Rs.19,993.88 Crore for 8,83,458 beneficiaries under Annual

Credit Plan 2014-15, thereby registering achievement of 27.57% in financial terms and 21.24% in

physical terms.

Aggregate credit disbursement as on 30th September 2014 under ACP 2014-15 includes Priority

Sector credit of Rs.3,523.50 Crore disbursed by banks in favour of 1,43,979 beneficiaries against

the target of Rs.12,464.10 Crore for 6,74,773 beneficiaries (28.27% achievement in financial terms

and 21.34% in physical terms) and Non-priority sector credit of Rs.1,988.99 Crore in favour of

43,683 beneficiaries against the target of Rs.7,529.78 Crore for 2,08,685 beneficiaries (26.41%

achievement in financial terms and 21% in physical terms).

Analyzing the bank-wise figures, the house placed on record that under Priority Sector none of the

banks have achieved the proportionate ACP target upto end of Q2 of FY 2014-15. J&K Bank has

recorded 37% achievement of its respective ACP target, SBI=19%, PNB= just 13%, Other

Commercial Banks=23%, Coop. Banks=17% and RRBs 13% of the respective individual ACP

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SLBC meeting 15

targets, which is not satisfactory when compared to achievements made by these banks during the

corresponding period of the previous year.

With credit disbursement of Rs.2,600.37 Crore to the Priority Sector, J&K Bank has been the major

contributor (its share 73.80%) in financial terms followed by SBI with the contribution of Rs.242.80

Crore (6.89%), PNB with Rs.104.37 Crore (2.96%), other Commercial Banks with Rs.257.01 Crore

(7.29%),RRBs with Rs.207.46 Crore (5.89%), and Co-operative Banks with Rs.111.28 Crore

(3.16%).

Commenting on the performance of the banks under ACP 2014-15 Chief Secretary, J&K

Government, Mr. M. I. Khanday stated that registering an achievement of just 27.57% during the

first half of CFY is very discouraging. He further stated that despite constraints Cooperative Banks

have performed better than PNB & RRBs. He sought comments from the representatives of PNB,

SBI & JKGB for having performed poorly during the first half of the current financial year.

On the poor achievement of ACP targets during the first half of the current financial year the

representatives of SBI, PNB, JKGB and EDB informed the house that disbursement of credit got

completely halted in the month of September 2014 due to the floods. They further informed that

credit has started picking up and assured the house that the performance in the next quarter shall

be good enough.

On reviewing the sub-sector wise achievement of targets under Priority Sector lending as on 30th

September 2014 the house observed that “other sub-sector” shows the highest achievement of

75% viz-a-viz annual targets followed by MSE (29%), Agriculture (27%), Housing (8%) and

Education (6%).

The Chairman J&K Bank (Convenor J&K SLBC) cautioned the banks about the paltry credit

disbursement in Education & Housing Sectors. He stated that despite high appetite and zero

rate of rejection of cases the education & housing sectors are not picking up and remains a cause

of concern thus needs serious introspection.

On poor credit off take under Housing and Education sectors, Chief Secretary was of the view that

banks need to give wide publicity by highlighting the salient features of the schemes in print and

electronic media for creating awareness among the general masses of the State so that the

benefits of these schemes gets percolated to various sections of the society. This he stated should

be priority for the banks.

(Action: Member Banks)

Analyzing the bank-wise figures, the house placed on record that under Non-Priority Sector none

of the banks have achieved the proportionate ACP target upto end of Q2 of FY 2014-15 with J&K

Bank having recorded 30% achievement, SBI=29%, PNB= just 6%, Other Commercial

Banks=19%, Coop. Banks=23% and RRBs=28% of their respective individual ACP targets.

On reviewing the sub-sector wise achievement of targets under Non-Priority sector as on 30th

September 2014 the house observed that “other sub-sector” show the highest achievement of

35% viz-a-viz annual target followed by Medium Industries (31%), Heavy Industries (20%),

Housing Sector (4%) and lowest in Education Sector (0.64%). The abysmally low achievement of

targets in Education Sector under Non-Priority Sector segment was again viewed with concern.

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SLBC meeting 16

Out of the total disbursement of Rs.1,988.99 Crore under Non-Priority sector, J&K Bank alone has

disbursed Rs.1,315.90 Crore which accounts for 66% of the total disbursements made by all the

banks. Other 45 banks/ FIs operating in the State put together have disbursed Rs.673.09 Crore

which accounts for just 34% of the total disbursements made to non-priority sector as on 30th

September 2014.

Again the poor performance of Punjab National Bank in respect of credit disbursement under Non-

Priority sector was viewed seriously by the house and the bank was advised to accord priority to

this issue as well.

While reviewing the region-wise achievements as on 30th September 2014 under ACP 2014-15 the

house observed that Kashmir region has achieved 33.06% of ACP targets, Ladakh 29.09% and

Jammu region despite having highest Industry growth has achieved only 21.78% of the ACP

targets. The house desired that the reasons for regional disparity viz-a-viz achievement of targets

under ACP be examined and analyzed.

(Action: All Banks)

Commissioner Secretary, Agriculture Production Department, Dr. Asgar Hassan Samoon stated

that majority of the States population is associated directly or indirectly to the agriculture sector the

achievement under the sector viz-a-viz ACP target has remained low. He urged upon the banks for

serious and bankable efforts and assign priority to achieve the targets under this important sector.

After threadbare deliberations on the issue, the house observed that the overall

achievement of 27.57% upto 30th September 2014 under ACP 2014-15 cannot be

considered satisfactory by any standards. Banks/ FIs operating in the State were

advised to take necessary steps to improve their position / performance during the

second half (remaining two quarters) of current financial year and put in strenuous

efforts to ensure achievement of 100% targets under Annual Credit Plan by 31st

March 2015. PNB in particular was advised to improve its performance in all the

sectors.


Banks should fulfill their credit commitment towards important sectors i. e

Education & Housing which have registered discouraging progress during the first

half of the current financial year.



CREDIT UNDER GOVERNMENT SPONSORED SCHEMES:

Against the target of Rs.439.90 Crore for 24,158 beneficiaries for all banks operating in the State

under ACP 2014-15, the achievement at the end of September 2014 under five major Government

Sponsored Schemes, viz. NRLM, PMEGP, JKSES, NULM and SC/ST/OBC has been of the order

of Rs.80.48 Crore spread over 3,976 beneficiaries in all the three regions of the State, thereby

registering an achievement of 18% in financial and 16% in physical terms. The House observed

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Minutes of 95th

SLBC meeting 17

that the achievement is not satisfactory by any standards all stake holders were called upon to put

in best efforts to improve the position under this vital segment.

The achievement, as observed by Chairman J&K Bank (Convenor J&K SLBC), Mr. Mushtaq

Ahmad, remains an area of grave concern for SLBC. Earlier in his inaugural address he stated that

healthy credit dispensation under the Government sponsored schemes promises employment

generation and poverty alleviation and banks should play an important role in this sacred task.

After threadbare deliberations on the impediments coming in way of achievements of targets under

Government Sponsored Schemes the house observed that pendency of huge number of cases

with banks, rejection of substantial number of cases by the banks, low sponsorship of the cases by

the sponsoring agencies and delay in the release of the subsidy amount by the Government are

squarely responsible for the low credit takeoff under Government Sponsored Schemes. The house

emphasized to focus attention for resolving these issues for achievement of better results in future.

the house emphasized that all banks operating in the State and the concerned

sponsoring agencies to consider the targets under Government Sponsored

Schemes, which are largely aimed at poverty alleviation, as a mission and strive hard

to fulfill the commitments under this vital segment.

(Action: All member banks/Sponsoring agencies)

AGENDA ITEM: 95.10

Performance under Handicrafts / Handlooms as on 30th September 2014:

The house recorded that banks have achieved 23% of target under Handicrafts/ACC, 19% of

target under Handlooms (Micro Credit Plan Scheme) and merely 5% of target under Handlooms

(Weavers Credit Card Scheme) upto the end of September 2014.

Chairman J&K Bank (Convenor J&K SLBC), Mr. Mushtaq Ahmad stated that Handicrafts/

Handlooms is a pivotal source of revenue generation of Jammu & Kashmir State and holds great

promise for economic upliftment of the State. He stated that despite putting in efforts by all the

stake holders the scheme is not picking up and reasons for the same needs to be explored.

Financial Commissioner, Industries & Commerce Department, Mr. Khursheed Ahmad Ganai

emphasized to increase the sponsorship under weavers credit card scheme which he said has

performed abysmally. In order to give fillip to the scheme he suggested that the interest

subvention, which presently under the scheme is 6% provided by NABARD, should be enhanced

to 10% to make it at par with the ACC Scheme and the required 4% subvention should be provided

by the State Government.

Chairman, J&K Bank, Mr. Mushtaq Ahmad suggested Financial Commissioner, I&C Deptt. to

convene a meeting of representatives from banks, NABARD and other concerned district level

officials to reconcile the data under Weavers Credit Card Scheme and explore the impediments

coming in way of smooth implementation of the Scheme.

(Action: Industries & Commerce Department, J&K Government)

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SLBC meeting 18

Director Handlooms Department requested the banks to extend liberal finance to the Handloom

sector which holds great promise for substantial employment generation. He emphasized that

banks should give due support to the Handloom Scheme (Weavers Credit Card) and synchronize

their activities with the Handlooms Department so as to envisage better results in future.

(Action: Handlooms/All LDMs/All member banks)

AGENDA ITEM: 95.11

Monitoring of flow of Credit for livestock and fisheries Sector:

Progress achieved by the Banks in delivering credit to livestock and fisheries Sector as at the end

of September 2014 was taken on record.

AGENDA ITEM: 95.12

ACHIEVEMENT UNDER SELF HELP GROUP (SHG):

The house placed on record the cumulative position of SHGs formed in J&K State upto the end of

September 2014 which stood at 12,066, out of which 7,923 SHGs were credit-linked involving an

amount of Rs.54.87 Crore.

The house observed that the position is not satisfactory and advised all the member banks and

concerned government agencies to take necessary measures so that the position gets improved

during the ensuing quarters of Current Financial Year.

(Action: All member banks/Govt. Agencies)

Chief General Manager, NABARD stated that operational level of the banks are generally unaware

of the benefits extended by the Government under various schemes. He emphasized that banks

should sensitize their respective operational levels about the credit subvention available for SHGs

other than SHGs established under NRLM which he said can give fillip to the scheme.

(Action: All Banks)


Rajiv Rinn Yojna (RRY) modified form of Interest Subsidy Scheme for Housing the

Urban Poor (ISHUP):

The house placed on record the fixation of district-wise targets under Rajiv Rinn Yojna (RRY)

Scheme, the modified form of ISHUP adopted in 91st SLBC meeting.

The house recorded that against the target of Rs.87.55 Crore for 2,010 beneficiaries set for FY

2014-15, banks in J&K State have disbursed an amount of Rs.0.97 Crore to 51 beneficiaries upto

the end of September 2014, which includes 22 sanctioned cases of previous year indicating an

achievement of 1% of financial targets and 3% of physical targets.

The achievement under the scheme was considered as unsatisfactory. The banks and concerned

sponsoring agency were advised to strive hard so that targets are achieved by 31st March 2015

(Action: Housing & Urban Dev. Deptt., J&K Govt./ State Urban Development Agency

(SUDA)/member banks/SLBC secretariat)

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SLBC meeting 19

AGENDA ITEM: 95.14

BANK CREDIT AT A GLANCE (OVERVIEW OF CREDIT SCENARIO IN J&K STATE)

STATISTICAL DATA OF VARIOUS BANKS IN J&K STATE AS AT END OF

SEPTEMBER 2014:

The Chairman, J&K Bank (Convenor SLBC) informed the house that total advances of all banks

operating in the State as on 30th September 2014 stood at Rs.34,398.97 Crore against

Rs.26,802.26 Crore as at the corresponding period of the previous year thereby recording YoY

growth of 28.34% while as the total deposits in the State as on 30th September 2014 stood at

Rs.72,767.21 Crore against Rs.66,223.28 Crore as at the corresponding period of the previous

year thereby indicating YoY growth of around 9.88%. As a result of this healthier credit growth the

C. D. Ratio of the State has significantly improved from 40.47% as on 30th September 2013 to

47.27% as on 30th September 2014, which is encouraging.

Commenting on the credit sharing by major banks in the State, Chairman, J&K Bank highlighted

that J&K Bank has the highest share of Rs.21,735.37 Crore comprising 63% of the total

outstanding credit of Rs.34,398.97 Crore in the State as at the end of September 2014. The share

of SBI is Rs.4,747.01 Crore comprising 14% and that of PNB is Rs.1,613.13 Crore comprising 5%.

The share of all other banks put together is Rs.6,303.46 Crore which constitutes 18% of the total

outstanding credit as on 30th September 2014.

The house also placed on record that an amount of Rs.1,894.57 Crore, Rs.702.36 & Rs.234.24

Crore disbursed by outside State branches of SBI, PNB and JKB respectively for financing the

projects in J&K State, has been incorporated in their advances figure to determine their CD Ratio

at State Level as per RBI directions issued vide circular No.RPCD.LBS.BC.NO.47/01.13.03/2005-

06 dated November 9, 2005.

During the period under review the CD Ratio of J&K Bank has improved from 44.31% to 48.72%

YoY Basis ( from 44.31% to 49.25% after including the Corporate Sector advances of Rs.234.24

Crore made by outside State Branches), SBI from 27.30% to 28.15% YoY (from 27.30% to 46.86%

after including the Corporate Sector advances of Rs.1,894.57 Crore made by outside State

Branches) while CD Ratio of PNB has declined from 20.83% to 19.13% YoY basis( but after

including the Corporate Sector advances of Rs.702.36 Crore made by outside State Branches the

CD Ratio of PNB has improved from 20.83% to 33.38%). The CD Ratio of RRBs has also

improved from 44.33% as on 30.09.2013 to 45.88% as on 30.09.2014 while as in respect of Co-

operative Banks it has improved from 35.11% as on 30.09.2013 to 37.15 % as on 30.09.2014.

The house put on record that out of the aggregate advances of Rs.34,398.97 Crore outstanding as

on 30th September 2014 an amount of Rs.18,042.53 Crore (52.45%) has gone to Priority Sector

and Rs.16,356.44 Crore (47.55%) has gone to Non-Priority Sector. Rs.5,287.63 Crore out of the

priority sector has gone to weaker sections of the society constituting 15.37% of total Advance

(Bench Mark 10%). The contribution of J&K Bank alone to Weaker Sections of the society has

been Rs.4,234.76 Crore, constituting 19.48% of its total advances.

While analyzing the Priority Sector advances it was observed that Micro & Small Enterprises sector

dominates other sectors, absorbing major share of Rs.9,153.86 Crore (51%) followed by

Agriculture, Housing, and Others sector with an amount of Rs.5,736.66 Crore (32%), Rs.2,051.84

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SLBC meeting 20

Crore (11%), Rs.833.25 Crore (4.62%) respectively and the lowest share of Rs.266.92 Crore

(1.48%) has gone to Education Sector.

Chief Secretary, Mr. M. I. Khanday stated that Credit Deposit Ratio of J&K State still remained very

low as compared to the National average of 65% to 70% CD Ratio. He emphasized on the banks

to extend need based liberal credit across all regions of the State and at least achieve a CD Ratio

of 60%, being the national benchmark, during the remaining period of current financial year.

After discussion on the issue banks operating in the State were advised to take

suitable measures for improving their CD Ratio to ensure that the National

benchmark of 60% Credit Deposit Ratio is achieved during the current financial year.



Credit delivery to Micro, Small and Medium Enterprises (MSMEs) as at the end of

September 2014:

Progress achieved by the banking sector in J&K State as at the end of September 2014 was taken

on record.


A) Opening of Specialized Branches in MSME Clusters

B) Rehabilitation of Sick Micro and Small Enterprises-Monitoring by Empowered

Committee.

The house impressed upon the banks to take immediate necessary steps for opening of branches

in identified MSME clusters for providing banking services.

The house observed that the rehabilitation of Sick, Micro and Small Enterprises is being regularly

monitored by Empowered Committee on MSMEs and also by Sub-Committee of State Level Inter-

Institutional Committee (SLIIC) on MSMEs besides being monitored by High Level Committee on

MSMEs.

(Action: Member banks/Directorate of Industries & Commerce Kashmir/Jammu)


Flow of Credit in Minority Concentrated Districts:

The position was taken on record.


Performance review of LDMs/ DLRCs & DCCs:

Conduct of DLRCs and DCCs meetings

The house observed that the periodicity of conducting DCC and DLRC meetings prescribed by RBI

is being complied with by all the LDMs in J&K State and these meetings are being conducted

regularly.

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Minutes of 95th

SLBC meeting 21

(Action: All LDMs)

District-wise Credit Deposit Ratio

The position was taken on record and the districts having low Credit Deposit ratio were advised to

explore the potential for credit dispensation/ absorption in order to improve the CD Ratio to the

desired level.

SEGMENT – 5 (RECENT DEVELOPMENTS)


NABARD‟s Support to Farmers‟ Training Centre (FTC) set up by the banks

The progress made in setting up of Farmers Training Centers (FTCs) in Kashmir, Jammu and

Ladakh regions by J&K Bank, PNB and SBI respectively was taken on record and concerned

banks were advised to expedite the process.

(Action: JKB, SBI & PNB, NABARD)


Establishment of Dairy Units under National Mission on Protein Supplementation (NMPS):

The guidelines framed by Directorate of Animal Husbandry for establishment of Dairy Units under

National Mission on Protein Supplementation (NMPS) are already approved and accepted by the

house for implementation in the State.

The house while recording the achievements made by the banks under the scheme observed that

targets have been fixed to the banks operating in the districts falling under Jammu Division and no

targets have been conveyed by the animal husbandry Deptt for the Districts in Kashmir region till

date.

The Chairman, J&K Bank (Convenor J&K SLBC) advised that a meeting of Sub-Committee of J&K

SLBC on Livestock, which is being headed by Secretary to Government, Animal/ Sheep

Husbandry Department, be convened in the month of December 2014 for allocation of targets

under the scheme to the districts falling in Kashmir Division.

(Action: Secy. to Government, Animal/ Sheep husbandry Deptt./ Director Animal Husbandry

deptt. Jammu/ Kashmir/)


Constitution of Sub-Committee of SLBC for State Rural Livelihood Mission (SRLM)

The house placed on record that Sub-Committee of J&K SLBC for State Rural Livelihood Mission

(SRLM) which was constituted by the house in 92nd meeting of J&K SLBC held its first meeting on

10th July 2014.

(Action: Convenor Bank/NABARD/Rural Dev. Deptt.)

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Minutes of 95th

SLBC meeting 22


Introduction of National Crop Insurance Programme/ Rashtriya Fasal Bima Karyakaram-

Weather Based Crop Insurance Scheme (WBCIS) in J&K State

The house placed on record with displeasure the Nil achievement as on 18th November 2014

under National Crop Insurance Programme/ Rashtriya Fasal Bima Karyakram- Weather Based

Crop Insurance Scheme (WBCIS) which was approved by Ministry of Agriculture, Government of

India for J&K State and was adopted by J&K SLBC in its 94th meeting.

The banks in the select districts were advised to make people aware about the benefits of the

programme and bring the eligible borrowers under the insurance cover.

(Action: Member banks/ Agriculture Insurance Company)


Finance to Five lakh Joint Liability Farming Groups of “Bhoomi heen Kissan” through

NABARD

The house placed on record the fixation of District-wise/ bank-wise targets under the Joint Liability

Farming Groups of “Bhoomi heen Kissan Scheme for the current financial year. Under the scheme

a target of 1000 JLGs for the current financial year have been allocated and conveyed to various

banks in the State.

The concerned banks were advised to ensure achievement of 100% targets under the scheme by

31st March 2015.

(Action: JKB, SBI, PNB, JKGB, EDB, HDFC Bank, ICICI Bank)


Drawing of Yearly Calendar of SLBC meetings to be held during the Calendar year 2015

The house approved the yearly calendar of SLBC meetings to be held during the Calendar year

2015

Vote of Thanks

The meeting ended with a vote of thanks to the Chair, which was presented by Sh. S.K.Bhat,

President (LBD/SLBC), J&K Bank.

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Minutes of 95th

SLBC meeting 23

Annexure-A

List of Participants of the 95th Meeting of J&K SLBC held on 3rd December 2014 at Jammu

S. No. Name of the Participant Designation / Department/ Organization

S/Shri Chief Guest

1. M. I. Khanday … Chief Secretary, J&K Government

Convenor

2. Mushtaq Ahmad … Chairman & CEO, J&K Bank

State Government

3. Khurshid Ahmad Ganai … Financial Commissioner, Industries & Commerce Deptt. 4. B. R. Sharma … Principal Secretary, Planning & Development Deptt. 5. B. B. Vyas … Principal Secretary, Finance Deptt. 6. Asgar Samoon … Commissioner/ Secretary, Agriculture Production Deptt. 7. Shafat N. Barlas … Secretary Rural Development Deptt & Panchayati Raj 8. Saurab Bhagat … Secretary, Industries & Commerce Deptt. 9. Parvez A. Malik … Secretary, Information & Technology Deptt. 10. Rashim Kashyap … Chief Co-coordinator, Finance Deptt. 11. Showkat Aijaz … Director, Finance 12. Tariq H. Ganai … Director, Handicrafts Department 13. Tsering Angchok … Director, Handlooms Department 14. Nazim Z. Khan … Director, Industries & Commerce Department Kashmir 15. Dr. Abdul Raheed … Director, I&C, Jammu 16. Dr. M. I. Parray … Director, EDI 17. Farooq Ahmad Peer … State Mission Director, SRLM 18. Dr. Sant Ram … Director Sheep Husbandry, Jammu 19. P. K. Sharma … Director, Horticulture, Kashmir 20. Dr. S. S. Jamwal … Director, Agriculture, Jammu 21. Madan Lal Bhagat … Jt. Director, Social Welfare Deptt. 22. Altaf Andrabi … Jt. Director Agriculture (K) 23. Abdul Majeed Dar … Jt. Director, Rural Development Department 24. Kamal K. Sharma … Dy Director (P) Rural Development Deptt. Jammu 25. Anjana Tiku … Addl. Registrar Cooperatives. 26. Jyoti Salathia … Jt. Director, Employment Department 27. M. Bashir Lone … Dy. Director , Local Bodies 28. P. S. Kakroo … Jt. Director, Housing & Urban Dev. Deptt. 29. Dr.Naheeda Soz … Managing Director, Women’s Development Corporation 30. Tasvinder Singh Dua … Managing Director, SIDCO 31. Javeed A. Mir … Dy. CEO (A) KVIB 32. Anil Sharma … Sp. Secretary Labour & Employment Deptt. 33. G. Q. Khatana … Div. Manager, J&K SC/ST /OBC Dev. Corporation 34. Virender Sharma … Director MSME 35. Mohd Farooq Thoker … MD, J&K State Financial Corporation 36. Pawan Kumar … DGM, J&K Dev. Fin. Coop. 37. Ghulam Rasool … Head Assistant, KVIB

BSNL (Special Invitee)

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Minutes of 95th

SLBC meeting 24

38. Girdhari Lal … Dy. General Manager

Reserve Bank of India 39. A. K. Mattu …. General Manager, Jammu 40. R. B. Gupta … AGM, Jammu

NABARD

41. Shankar A. Pande … Chief General Manager, R. O. Jammu 42. Sanjeev Dhamija … DGM, R.o. Jammu

J&K Bank (Convenor Bank)

43. Ab. Hamid Banday … Executive President 44. Abdul Rauf Bhat … Sr. President (P&HRD) 45. S. K. Bhat … President (Finance/SLBC) 46. R. K. Chhibber …. President (FID) 47. Mohammad Amin … President (A& AP) 48. A. K. Pandita … Vice President (PS) 49. Rakesh Gandotra … Vice President (A& AP) 50. Arvind Gupta … Vice President/Zonal Head, Jammu(Central) 51. Nazir Ahmad … Vice President/ Zonal Head ,Jammu (West) 52. Javeed Ahmad … Vice President/ Zonal Head ,Jammu (North) 53. Gulzar Ahmad Zargar … Asstt. Vice President, LBD/SLBC

Public Sector Banks 54. Arvind Priya … DGM, SBI 55. Ajay K. Gupta … Regional Manager, SBI 56. R. L. Lochan … Chief Manager (Lead Bank), SBI 57. M. L. Mir … DGM, PNB 58. B. M. Fazili … AGM, Punjab National Bank 59. S. K. Saha … AGM, Allahabad Bank 60. Rakesh Ranjan … Chief Manager, Canara Bank 61. S. M. Mukhopadhyay … AGM, UCO Bank 62. Badri Narayan … Regional Manager, Central Bank of India 63. K. J. Srikanth … Regional Manager, Syndicate Bank 64. Bharat B. Mattoo … Chief Manager, State Bank of Patiala 65. H. S. Sidhu … DGM, Bank of Baroda 66. K. B. Chandra …. Chief Manager, Union Bank of India 67. Ashutosh Singh … AGM, IDBI Bank 68. Aayushi … Officer, Dena Bank 69. Sohan Singh … Sr. Manager, United Bank of India

Private Sector Banks

70. Abhishek Khajuria … Branch Manager, HDFC Bank 71. Vishal Sharma … Branch Manager, ICICI Bank 72. Shabir Khan … Cluster Head, Axis Bank 73. Vishal Dhingra … Cluster Head, Axis Bank

Regional Rural Banks

74. Vagesh Chander … Chairman, J&K Grameen Bank 75. Parvinder Bharti … Chairman, EDB

Cooperative Banks

76. B. A. Lone … Managing Director, Baramulla Central Coop. Bank 77. G. M. Bhat … General Manager J&K SCB 78. Atta Mohd Nath … Chief Executive, Anantnag Central Coop. Bank 79. Mohd Mushtaq … GM, JCC Bank 80. Ashwani kapoor … Chief Manager, Citizens Coop. Bank 81. Vijay Rehan … Manager, JCC Bank

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Minutes of 95th

SLBC meeting 25

Insurance Companies

82. Ashwani Bhat … Field officer, Agriculture Insurance Company of India 83. H. S. Pathania … Adm. Officer, National Insurance Company Ltd. 84. Vijay Abrol … Branch Manager, National Insurance Company Ltd. 85. Kuldeep Pandita … Dy. Manager, National Insurance Company Ltd. 86. S. L. Bhagat … Manager, LIC of India 87. Desh Bandhu … Adm. Officer, LIC of India 88. M. L. Verma … Div. Manager, United Insurance Co. Ltd 89. Duni Singh Mottey … Div. Manager, Oriental Insurance Company Ltd.

Lead District Managers

90. Nissar Ahmad Ahanger … LDM, Srinagar 91. Shahzad Hussain Teli … LDM, Budgam 92. Faiz-Ullah Qureshi … LDM, Ganderbal 93. Javeed Ahmad Qureshi … LDM, Baramulla 94. Riyaz Hassan Baba … LDM, Bandipora 95. Imtiyaz Ahmad Zaindari … LDM, Kupwara 96. Mohammad Sayed Shah … LDM, Pulwama 97. Ghulam Jeelani Shah … LDM, Shopian 98. Mufti Gh. Mohammad … LDM, Anantnag 99. Anoop Bhat … LDM, Rajouri 100. Mohd. Shafi Ayaz … LDM, Poonch 101. Jawahar Koul … LDM, Jammu 102. Satish Gupta … LDM, Kishtwar 103. H. R. Hans … LDM, Kathua/ Samba 104. M. K. Pandita … LDM, Udhampur 105. N. C. Sambyal … LDM, Doda 106. Nawang Tsering … LDM, Kargil 107. Mohd Illyas Wani … LDM, Ramban 108. Sanjay Bhardwaj … LDM, Reasi

Other Participants

109. G. R. Kumar … State Project Coordinator, RSETIs

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Documents

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