Lead Bank/ SLBC (J&K)

Transcription

1 The Jammu & Kashmir Bank Limited Corporate Headquarters T +91 (0) E convenorbank@jkbmail.com M A Road, Srinagar F +91 (0) W Kashmir India Lead Bank/ SLBC (J&K) Ref. No. LBD/SLBC-95/ All Members of the State Level Bankers Committee (J&K) Dated: January 2, 2015 Sub: Minutes of the 95 th Meeting of J&K SLBC for necessary action on actionable points. Sir, We forward herewith a copy of minutes of the 95 th Meeting of J&K State Level Bankers Committee (SLBC) held on 3 rd 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 convenorbank@jkbmail.com / Fax 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 95 th SLBC Meeting

2 Minutes of 95 th SLBC meeting 1 Serving to Empower MINUTES OF 95 th MEETING OF SLBC (J&K) HELD ON 3 rd DECEMBER 2014 AT JAMMU The 95 th meeting of J&K State Level Bankers Committee (SLBC) was held on 3 rd 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 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 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 Crore out of which Rs 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

3 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 28 th 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 30 th September 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 , , and beyond is under implementation and against the target of 1504 villages set for the financial year , 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 , and banks have covered 3,565 villages upto 30 th 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. Minutes of 95 th SLBC meeting 2

4 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 Mr. Mushtaq Ahmad, Chairman/ CEO, J&K Bank stated that Banks were supposed to achieve atleast 50% of the Annual Credit Plan target by 30 th 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 30 th September 2014, have extended total credit of Rs.5, Crore to 1,87,662 beneficiaries (both under Priority & Non- Priority Sectors) against Annual Credit Plan (ACP) target of Rs.19, 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, 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, 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, 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 Crore (6.89%), PNB with Rs Crore (2.96%), other Commercial Banks with Rs Crore (7.29%),RRBs with Rs Crore (5.89%), and Co-operative Banks with Rs Crore (3.16%). Minutes of 95 th SLBC meeting 3

5 Institution-wise Credit Flow Out of the total credit disbursement of Rs.5, Crore disbursed by banks in the State during first half of FY , J&K Bank alone has disbursed Rs.3, 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, Crore, thereby contributing 29% of the total credit disbursed in the State during the period under review. This includes SBI with disbursement of Rs Crore i. e 9.50%, RRBs Rs Crore i. e 5.06%, Cooperative Banks with disbursement of Rs Crore which constitutes 2.68%, PNB with Rs Crore which constitutes 2.23%, while other commercial banks have contributed Rs 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, Crore for 4,19,015 beneficiaries, banks have disbursed total amount of Rs.1, Crore in favour of 72,758 beneficiaries upto 30 th 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, Crore for 1,43,623 beneficiaries, banks have disbursed an amount of Rs.1, Crore in favour of 34,961 beneficiaries upto 30 th 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 Crore in favour of 14,024 beneficiaries banks have disbursed an amount of Rs 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, Crore favouring 38,771 beneficiaries banks have disbursed total amount of Rs Crore in favour of 7,436 beneficiaries upto 30 th September 2014, achieving 10% in financial terms and 19% in physical terms. Under Other Sectors against the annual target of Rs.1, Crore in favour of 59,340 beneficiaries banks have disbursed Rs Crore in favour of 27,373 beneficiaries during H1 of FY 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, Crore favouring 2,08,685 beneficiaries, banks have disbursed Rs.1, 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, 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 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 Crore (14%), PNB Rs Crore (0.93%), RRBs Rs Crore Minutes of 95 th SLBC meeting 4

6 (3.61%), Co-operative Banks Rs Crore (1.82%) and other commercial banks with disbursement of Rs 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 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, 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 30 th September 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 Crore), SBI by 0.85% YoY (19.56% after including Corporate Sector advances of Rs.1, Crore) while CD Ratio of PNB has declined by 1.70% YoY basis (but after including the Corporate Sector advances of Rs 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 to 45.88% as on while as in respect of Co-operative Banks it has improved by 2.04% from 35.11% as on to % as on CREDIT FLOW UNDER GOVERNMENT SPONSORED SCHEMES: The Convener SLBC stated that against Annual Action Plan ( ) target of Rs 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 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 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 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 Minutes of 95 th SLBC meeting 5

7 Plan 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 94 th MEETING & SPECIAL MEETING OF J&K SLBC HELD ON 20 th AUGUST 2014 AND 23 rd SEPTEMBER 2014 RESPECTIVELY: As no amendments to the minutes of the 94 th meeting & Special meeting of J&K SLBC held on 20 th August 2014 and 23 rd 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. B) Plans for Corporate Social Responsibility of banks: (Action: State Government) The J&K SLBC in its 91 st meeting held on 16 th 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 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. Minutes of 95 th SLBC meeting 6

8 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 31 st March D) Convening of Sub-Committee of SLBC for Export Promotion The house placed on record the outcome of the 6 th meeting of the sub-committee of SLBC for export promotion for J&K State held on 28 th June 2014 at Srinagar. Minutes of 95 th SLBC meeting 7

9 AGENDA ITEM NO: SEGMENT- 2 (SPECIAL AGENDA POINT) 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 Crore have been processed/ sanctioned by the banks and credit upto the tune of Rs 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 Crore to 1,037 beneficiaries, HDFC Bank Rs Crore to 392 beneficiaries, PNB Rs 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 31 st March 2015 but try hard to get the package implemented by the end of February 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 (Action: J&K SLBC Secretariat) Minutes of 95 th SLBC meeting 8

10 AGENDA ITEM NO: 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: (Action: J&K SLBC Secretariat) 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 , , and beyond 2015, has already been taken up for implementation and against the target of 1504 villages set for financial year , 831 villages were covered upto 30 th 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 , and thereby achieving 87% of the cumulative target upto the end of September 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 30 th September 2014 viz-a-viz cumulative targets upto 31 st 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 31 st March (Action: concerned FI Banks) Minutes of 95 th SLBC meeting 9

11 (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 30 th September 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. AGENDA ITEM NO: 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 14 th 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. AGENDA ITEM NO: (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 Minutes of 95 th SLBC meeting 10

12 disbursed credit to the tune of Rs.4, 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 31 st December 2014, to 31 st 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 30 th 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 31 st 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 31 st 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 31 st 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) Minutes of 95 th SLBC meeting 11

13 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 Branch Expansion Plan: The Chairman, J&K Bank (Convenor, SLBC) stated that the Branch Expansion Plan for J&K State for the FY stood at 259 branches which included backlog of 115 branches. The BEP 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 He stated that 13% achievement under BEP as on 30 th 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 31 st 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 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) AGENDA ITEM NO: Setting up of Financial Literacy Centres (FLCs) in J&K State progress achieved as on : 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 Minutes of 95 th SLBC meeting 12

14 Lead Bank responsibility. All the FLCS are organizing Financial Literacy Camps smoothly and during Q2 of FY , a total of 256 Financial Literacy Camps were organized in which 13,816 persons have participated. In pursuance to the decision taken in the 89 th meeting of J&K SLBC held on 6 th 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 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. (Action: All member banks) 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 AGENDA ITEM NO: 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 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 Minutes of 95 th SLBC meeting 13

15 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) AGENDA ITEM NO: CREDIT FLOW TO PRIORITY SECTOR: Bank-wise/ Sector-wise/ Region-wise achievements in lending to Priority Sector under Annual Credit Plan as at end of September 2014 The house recorded that as on 30 th September 2014 banks have extended total credit of Rs.5, Crore in favour of 1,87,662 beneficiaries (both under Priority and Non-priority Sectors) against aggregate target of Rs.19, Crore for 8,83,458 beneficiaries under Annual Credit Plan , thereby registering achievement of 27.57% in financial terms and 21.24% in physical terms. Aggregate credit disbursement as on 30 th September 2014 under ACP includes Priority Sector credit of Rs.3, Crore disbursed by banks in favour of 1,43,979 beneficiaries against the target of Rs.12, 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, Crore in favour of 43,683 beneficiaries against the target of Rs.7, 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 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 Minutes of 95 th SLBC meeting 14

16 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, 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 Crore (6.89%), PNB with Rs Crore (2.96%), other Commercial Banks with Rs Crore (7.29%),RRBs with Rs Crore (5.89%), and Co-operative Banks with Rs Crore (3.16%). Commenting on the performance of the banks under ACP 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 30 th 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 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 30 th 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. Minutes of 95 th SLBC meeting 15

17 Out of the total disbursement of Rs.1, Crore under Non-Priority sector, J&K Bank alone has disbursed Rs.1, 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 Crore which accounts for just 34% of the total disbursements made to non-priority sector as on 30 th September 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 30 th September 2014 under ACP 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 30 th September 2014 under ACP 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 31 st March PNB in particular was advised to improve its performance in all the sectors. (Action: All member banks) 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. (Action: All member banks) AGENDA ITEM NO: CREDIT UNDER GOVERNMENT SPONSORED SCHEMES: Against the target of Rs Crore for 24,158 beneficiaries for all banks operating in the State under ACP , 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 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 Minutes of 95 th SLBC meeting 16