SEGMENT-1 CONFIRMATION OF THE MINUTES OF 82 ... - J&k SLBC SLBC... · financial inclusion programme...

Agenda 83rd SLBC meet

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SEGMENT-1

CONFIRMATION OF THE MINUTES OF 82nd MEETING OF J&K SLBC

HELD ON 5th SEPTEMBER 2011 AT SRINAGAR

The minutes of 82nd meeting of J&K SLBC held on 5th September 2011 at Srinagar to

review the performance / achievements of the banks / financial institutions operating in

the State as at the end of June 2011 were uploaded on the website of J&K SLBC

www.jkslbc.com and were also published and circulated among the members vide J&K

SLBC office letter No. LBD/SLBC-82/2011-341 dated 19.09.2011. The actionable points

were indicated to the concerned quarters for taking desired action.

Some small amendments to the published minutes were received from Office of the

Commissioner/Secretary, Industries & Commerce, J&K Govt., Reserve Bank of India

and Secretary, KVIC, for which a corrigendum stands already issued vide Ref. No.

LBD/SLBC/82/2011-400 dated: 18.10.2011 (copy whereof enclosed for information of

members).

The house is requested to confirm the said minutes.

http://www.jkslbc.com/


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ROLLED OVER ACTIONABLE POINTS OF THE EARLIER SLBC MEETINGS (FOLLOW UP OUTSTANDING ISSUES)

1) Creation of Central Registry:

Agenda Item/

Date of SLBC

Agenda Point Summary of decisions/

Action points.

Primary responsibilit

y

Action taken / Status

76 (a) 30.07.2009

Creation of a Central Registry by State Govt. for registration of charges of all banks / lending institutions in respect of all moveable and immovable properties of the borrowers incorporated as proprietorship, partnership, cooperative society, trust, company or in any other form

This was one of the recommendations of Dr. K. C. Chakrabarty Working Group constituted by RBI to look into the problems of MSMEs sector In the 76th SLBC meeting the J&K Government had assured to examine the issue for implementation in J&K State.

J&K Government Commissioner/ Secretary (Finance),

In the previous SLBC meeting no progress was reported to the house by J&K Government.

J&K Government may inform progress on the issue 2) Legislating SARFAESI Act:

Agenda Item/ Date of SLBC

Summary of decisions/

Action points.

Primary responsibility


73 (b) 18.06.2008

On the suggestion of Commissioner / Secretary Finance a small committee was set up to draft the legislation on the pattern of SARFAESI Act under the Chairmanship of Principal Secretary, Law J&K Govt., with Commissioner Secretary (Revenue) and Mr. Ajit Singh, President / CRO, J&K Bank, as its members.

J&K Government Commissioner/ Secretary (Law)

Draft legislation prepared by J&K Bank since submitted to Govt. for consideration. In 82nd SLBC meeting Special Secretary Finance informed that the State Govt. has elaborately taken up the issue with GoI and has suggested certain amendments in the Act with regard to special status position of J&K State. He further stated that Central Govt. had referred the issue to Central Law Ministry. On appreciating the concerns of the banking fraternity, certain provisions of the SARFAESI Act, which come in the way of takeover of the properties, have been minutely gone into and discussed by Law Deptt. not only with J&K Bank but SBI and PNB too were involved in the process. Thereafter, he expressed hope that by the time next SLBC takes places, the Government would have resolved it.

Government of J&K State may inform progress on the issue.


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3) Grant of interest subvention on Crop loans – Equating J&K Bank with other Public Sector Banks:

Agenda Item/ Date of

SLBC

Summary of decisions/

Action points.

Primary responsi-

bility


80.01 dated 22.12.2010

Representative of J&K Bank pleaded that facility of interest subvention of 3% on agricultural loans being extended to Public Sector Commercial Banks in the country is not extended to J&K Bank. Keeping in view dominating role and network of J&K Bank he requested the house to recommend extension of the interest subvention benefit to J&K Bank to enable it to substantially improve performance under Agriculture Sector.

RBI/ J&K Bank/ J&K Govt.

Pursuant to directions of RBI in 81st SLBC meeting, J&K Bank has already taken up matter with GoI, MoF vide letter No.JKB/A&AP/2011-565 dated 31st March 2011, with copies endorsed to Finance Deptt., J&K Govt. & RBI, for recommending the case to GoI. Government of India, Ministry of Finance through directive issued vide F.No.3/43/2011-AC dated 1st November, 2011 (copy enclosed) have classified J&K Bank as a Public Sector Bank as provided under Section 617 of Indian Companies Act 1956. Hence it is eligible for grant of interest Subvention on crop loans.

This is for information of the House


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REPORT ON THE MATTERS REFERRED TO VARIOUS SUB-COMMITTEES OF J&K SLBC

1) Sub-group of SLBC constituted in 79th SLBC meeting to work out

strategy for coverage of blocks identified by Agriculture Production Department under KCC Scheme.

First meeting of the Sub-group under the Chairmanship of Principal Secretary, Agriculture

Production, J&K Govt. (constituted in the Thematic SLBC meeting on KCC Scheme to workout

strategy for coverage of blocks identified by Agriculture Production Deptt. under KCC Scheme)

was held on 01.12.2010 at Jammu, wherein blocks identified by Agriculture Production Deptt.

for 100% coverage under KCC Scheme, were allocated amongst five banks operating in J&K

State for implementation as mentioned below. S.

No. Name of the bank to which

allocated Name of the District Name of the Block identified

for 100% coverage under KCC

1 J&K Bank Jammu Block Marh Udhampur Chenani Kishtwar Allohi Rajouri Sunderbani Anantnag Dachnipora Bandipora Bandipora Pulwama Pulwama Shopian Shopian Kargil Sharguole

2 State Bank of India Poonch Poonch

Reasi Pouni Samba Samba (in collaboration with PNB) Ramban Ramsoo Kathua Billawar Srinagar Srinagar Leh Saspol

3 Punjab National Bank Doda Bhaderwah

Baramulla Rohama Kupwara Kupwara

4 Ellaquai Dehati Bank Kulgam Kulgam 5 J&K State Cooperative Bank Budgam Budgam

Ganderbal Ganderbal

Consolidated bank-wise progress as of 30.09.2011 is given in the enclosed statement.

The house is requested to deliberate

Encls: (1)


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2. Revised J&K Self Employment Scheme – Sub-group constituted in 82nd SLBC meeting to examine the macro issues within the Scheme

The revised guidelines on J&K Self Employment Scheme prepared by the State

Government, were deliberated upon in the 82nd SLBC meeting. The house

observed that Item No.4.3 of the said revised guidelines, which deal with the

aspects of Subsidy Reserve Fund Account to be exempted from NDTL for

maintenance of SLR and CRR, would require a reference to Reserve Bank of

India and which has to be considered under Banking Regulations Act 1949. The

house had accordingly constituted a small Sub-group comprising only 3 major

banks, viz. J&K Bank, State Bank of India and Punjab National Bank, to sit under

the Convenorship of Commissioner/Secretary, Labour & Employment

Department, J&K Government, to examine the macro issues within the J&K Self

Employment Scheme and come up with recommendations, so that an

appropriate reference is made to Reserve Bank of India for consideration.

The actionables were flagged for necessary action in the minutes of the 82nd SLBC

meeting circulated to all members. Subsequently, vide letter No.LBD/SLBC/82/2011-

373 dated October 11,2011 followed by reminder dated October 27, 2011 the

Commissioner/ Secretary, Labour & Employment Department, was requested to

convene the meeting of the said Sub-group at the earliest for the purpose and expedite

the recommendations. However, the recommendations are awaited.

Government may inform progress in the matter

3. Meeting of Sub-Committee of J&K SLBC for Export Promotion A meeting of the Sub-Committee of the J&K SLBC for Export Promotion has

been slated on 12th of December 2011 at Jammu. Minutes of the said meeting shall be

circulated for information of the members in the house itself.


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4. Impact Study of Government Sponsored Schemes: In the 82nd SLBC meeting, while deliberating on Study Report of NIRD regarding

Government Sponsored Schemes It was decided to form a small team comprising of

officers from three major banks, viz. J&K Bank, SBI and PNB, Industries & Commerce

Dept. and Labour & Employment Dept. The said team shall visit 50-100 units

established under GSS for on spot inspection after availing loans and making an impact

study to ascertain the facts whether the basic purpose underlying these programmes

was being achieved or not.

Accordingly, the President (A&AP), J&K Bank was requested to kindly organize the

inspection visits of the team immediately and furnish a report of the Impact Study to this

office as soon as possible for being placed in the next SLBC meeting.

J&K Bank may inform progress on the issue

5. Sub-group constituted in 82nd SLBC meeting to formulate common

modalities and workout solutions for implementation of ICT-based financial inclusion programme in J&K State on sharing each other’s experiences and identifying difficulties

In the 82nd SLBC meeting it was also decided that senior functionaries of three major

banks operating in the State, viz. J&K Bank, State Bank of India and Punjab National

Bank should hold a meeting to create common modalities and share each others

experiences and workout solutions. The said sub-group would also need to revise the

monitoring format for the said programme, so that all the regulatory requirements for

service delivery like credit facilities, insurance, deposit & remittances allowed through

the Smart Card could be monitored in the SLBC henceforth. Accordingly, a meeting of the representatives of J&K Bank, SBI and PNB was taken by

Mr. G. M. Sahibzada, Executive President, J&K Bank on 17th September 2011 at J&K

Bank, Corporate Headquarters, Srinagar. A copy of the circulated minutes of the said

meeting is enclosed for information of the house.

This is for information of the house

Encls: 3


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SEGMENT – 2 (PERFORMANCE OF THE BANKING SECTOR IN J&K) AGENDA ITEM: 83.01

CREDIT TO PRIORITY SECTOR:

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

Priority Sector under Annual Credit Plan 2011-12 as at end of Sept. 2011

(1) BANK-WISE / SECTOR-WISE POSITION: The Bank-wise/ Sector-wise achievements as at the end of September 2011 vis-à-vis

commitments for lending to priority sector under Annual Credit Plan 2011-12 are given

as Annexures-A & B.

It is manifest from the figures as shown in the Annexures that banks by the end of

September 2011 have provided total credit of Rs.1,814.82 Crore in favour of 85,111

beneficiaries against a target of Rs.3,619.69 Crore for 2,37,892 beneficiaries to the

Priority Sector under Annual Action Plan 2011-12, thereby registering achievement of

50% in financial terms and 35.77% in physical terms of the annual target during

financial year 2011-12.

The comparison of the achievement of banks under Priority Sector vis-à-vis their

respective annual targets at the end of Q2 of FY 2011-12 with Q2 of PY 2010-11 (YoY)

is given hereunder:

(Amount in Crore of Rs.) Name of

Bank FY 2010-11 CFY 2011-12

Target

Achievement (30.09.2010)

%age of

Achiev

Target

Achievement (30.09.2011)

%age of Achiev

J&K Bank 1103.14 785.15 71 1492.44 1380.63 93

SBI 381.14 102.13 27 499.99 82.40 16

PNB 249.84 52.01 21 283.86 72.35 25

Other Comm. Bks. 455.09 93.57 21 402.52 71.38 18

Coop. Banks 300.40 83.20 28 396.55 88.00 22

RRBs 329.25 86.45 26 541.69 119.75 22

Other FIs 2.05 0 0 2.64 0.30 11

TOTAL 2820.91 1202.51 43 3619.69 1814.82 50


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(2) BANK-WISE / SECTOR-WISE ANALYSIS: I) AGRICULTURE SECTOR:

Against the annual target of Rs.846.06 Crore for 1,38,748 beneficiaries, banks have

disbursed a total amount of Rs.422.35 Crore in favour of 32,252 beneficiaries under this

sector by the end of September 2011 thereby registering an achievement of 49.91%

and 23.24% in financial and physical terms respectively.

Out of this, an amount of Rs.131.63 Crore in favour of 17,795 agriculturists against a

target of Rs.347.85 Crore fvg. 89,405 beneficiaries have been disbursed under Crop

Loan. The achievement of banks under this segment is of the order of 37.84% &

19.90% of the target in financial & physical terms respectively.

The achievement vis-à-vis commitment in respect of Crop Loan out of Agriculture

Sector has been incorporated separately in the Bank-wise/ Sector-wise and District-

wise/ Sector-wise statements as given in Annexure-B & C.

While analyzing the quantum-wise disbursement based on absolute terms, the major

contributors have been the J&K Bank (Rs.278.20 Crore), PNB (Rs.48.20 Crore), SBI

(17.01 Crore), J&K Grameen Bank (Rs.37.60 Crore), (Ellaquai Dehati Bank (Rs.13.02

Crore), Anantnag Central Coop. Bank (Rs.5.17 Crore) and Jammu Central Coop. Bank

(Rs.9.08 Crore), thereby achieving 75%, 92%, 16%, 35%, 31%, 22% and 24%

respectively of their individual targets. Although some other banks like United Bank,

Canara Bank, Vijaya Bank and HDFC Bank have registered achievement of 639%,

30%, 23% and 152% respectively of their individual targets but this high percentage of

achievement by these banks is driven by small allocation of targets.

(II) SMALL ENTERPRISES SECTOR:

As against the annual target of Rs.1725.95 Crore for 59,531 beneficiaries, banks have

disbursed an amount of Rs.592.76 Crore in favour of 17,435 beneficiaries by the end of

September 2011, thereby registering an achievement of 34.34% and 29.28% of the

target in financial and physical terms respectively. While analyzing Bank-wise achievements (quantum-wise), the major contributors have

been J&K Bank (Rs.415.99 Crore), State Bank of India (Rs.29.87 Crore), JCC Bank

(Rs.35.67 Crore), Punjab National Bank (Rs.12.75 Crore), P&S Bank (Rs.3.34 Crore),

J&K Grameen Bank (Rs.29.36 Crore), EDB (Rs.8.32 Crore), CBI (Rs.1.58 Crore),


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Canara Bank (Rs.5.28 Crore) Baramulla Central Coop. Bank (Rs.6.42 Crore) and

Citizens Coop. Bank (Rs.4.66 Crore).

(III) MICRO CREDIT: As against the annual target of Rs.476.41 Crore in favour of 26,005 beneficiaries banks

have disbursed total amount of Rs.108.41 Crore in favour of 6,576 beneficiaries by the

end of September 2011. This works out to 22.75% achievement in financial and 25.28%

in physical terms.

While analyzing bank-wise achievements (quantum-wise), the major contributors have

been J&K Bank (Rs.48.05 Crore), J&K Grameen Bank (Rs.23.94 Crore), Central Bank

of India (Rs.0.11 Crore), State Bank of India (Rs.14.38 Crore), JCC Bank (Rs.0.94

Crore) and EDB (Rs.5.50 Crore). (IV) EDUCATION: As against the annual target of Rs.151.36 Crore in favour of 4,686 beneficiaries banks

have disbursed total amount of Rs.31.09 Crore in favour of 2317 beneficiaries by the

end of September 2011. This works out to 20.54% and 49.45% achievement in financial

and physical terms respectively. (V) HOUSING: As against the annual target of Rs.419.91 Crore in favour of 8922 beneficiaries banks

have disbursed total amount of Rs.660.21 Crore in favour of 26,531 beneficiaries by the

end of September 2011. This works out to an achievement of 157.22% and 297% in

financial and physical terms respectively.

(3) REGION-WISE / SECTOR-WISE POSITION: The Region-wise/ District-wise/ Sector-wise achievements as at the end of September

2011 vis-à-vis commitments for lending to priority sector under Annual Credit Plan

2011-12 are given as Annexure-C. (Amount in Crores of Rupees)

Region Targets Achievements Achievement % Kashmir 1659.22 1061.91 64 Jammu 1878.91 732.79 39 Ladakh 81.55 20.12 25

TOTAL 3619.68 1814.82 50 I) KASMIR REGION: In the Kashmir region an amount of Rs.1061.91 Crore against the target of Rs.1659.22

Crores (64% achievement) has been disbursed by the end of September 2011 with a

sector-wise distribution of Rs.454.70 Crore for the Housing sector (208% achievement),


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Rs.275.19 Crore for Small Enterprises sector (36% achievement), Rs.272.17 Crore for

the Agriculture Sector (54% achievement), Rs.43.42 Crore for Micro Credit sector (38%

achievement) and Rs.16.44 Crore for the Education Sector (28% achievement).

Out of the total disbursement of Rs.1061.91 Crore in Kashmir region, Small Enterprises

sector has received 25.91%, Housing Sector 42.81%, Agriculture Sector 25.63%, Micro

Credit 4.08% and Education Sector 1.55%. II) JAMMU REGION:

In the Jammu region an amount of Rs.732.78 Crore has been disbursed by the end of

September 2011 against the target of Rs.1878.91 Crore (39% achievement) with a

sector-wise distribution of Rs.306.37 Crore in Small Enterprises (33%), Rs.204.00 Crore

in Housing sector (107%), Rs.148.99 Crore in Agriculture Sector (46%), Rs.58.84 Crore

in the Micro Credit (16%) and Rs.14.58 Crore in Education Sector (16%).

Out of the total disbursement of Rs.732.78 Crore in Jammu region, Small Enterprises

sector has received 41.80%, Housing sector 27.84%, Agriculture Sector 20.33%, Micro

Credit 8.02% and Education Sector 1.98%. III) LADAKH REGION:

In the Ladakh region an amount of Rs.20.12 Crore has been disbursed by the end of

September 2011 against the target of Rs.81.55 Crore (25%) with a sector-wise

distribution of Small Enterprises Rs.11.20 Crore (25%), Rs.1.50 Crore for Housing

sector (14%), Rs.1.20 Crore in Agriculture Sector (7%), Rs.6.15 Crore for Micro Credit

(120%) and Rs.0.07 Crore in Education Sector (3%).

Out of the total disbursement of Rs.20.12 Crore in Ladakh region, Small Enterprises

sector has got 55.66%, Housing sector 7.45%, Agriculture Sector 5.96%, Micro Credit

sector 30.56% and Education Sector 0.34% of credit. (4) CREDIT TO NON-PRIORITY SECTOR: Under non-priority sector the banks have disbursed an amount of Rs.855.27 Crore to

32,030 beneficiaries by the end of September 2011.

The forum is requested to discuss the issue in the light of the data furnished. Encls-07


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AGENDA ITEM: 83.02 CREDIT UNDER GOVERNMENT SPONSORED SCHEMES

I) Region-wise / District-wise / Scheme-wise and Bank-wise / Scheme-

wise performance of various Banks under Government Sponsored Schemes upto 30th September 2011:

Against the Annual Action Plan 2011-12 target of Rs.221.73 Crore for 18,837

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

September 2011 under five major Government Sponsored Schemes, viz. SGSY,

PMEGP, JKSES, SJSRY and SC/ST/OBC is of the order of Rs.75.11 Crore spread over

5,283 beneficiaries in all the three regions of the State thereby registering a

performance of 34% & 28% of the target in financial and physical terms respectively.

The achievement is satisfactory as compared to credit delivery to GSS during the

corresponding period of the previous year with disbursement of Rs.50.03 Crore to 3,795

beneficiaries (being 14% of the target in financial and 13% in physical terms. The

performance details under GSS are given in Annexures D & D1.

1) REGION-WISE ANALYSIS OF ACHIEVEMENTS i) KASHMIR REGION:

Banks have disbursed a total amount of Rs.54.22 Crore to 3,798 beneficiaries by the

end of Q2 of FY 2011-12 under these five major Government Sponsored Schemes

against the annual target of Rs.145.68 Crore for 10,620 beneficiaries, thereby achieving

37% & 36% in financial and physical terms respectively against the achievement at

Rs.31.25 Crore to 2,265 beneficiaries (12% in financial as well as in physical terms) for

the corresponding period of the previous year.

ii) JAMMU REGION

Banks have disbursed an amount of Rs.18.26 Crore in favour of 1,392 beneficiaries by

the end of Q2 of FY 2011-12 against the annual target of Rs.66.59 Crore to 7,438

beneficiaries under these schemes, which accounts for 27% and 19% achievement in

financial and physical terms respectively as against achievement of banks at Rs.16.31

Crore to 1,410 beneficiaries (19% in financial and 16% physical terms) as on 30th

September 2010.


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iii) LADAKH REGION Banks have disbursed a total amount of Rs.2.62 Crore in favour of 93 beneficiaries by

the end of Q2 of FY 2011-12 under these five major Government Sponsored Schemes

against annual target of Rs.9.46 Crore for 779 beneficiaries, which works out to 28%

achievement in financial and 12% in physical terms, as against achievement of banks at

Rs.2.48 Crore for 120 beneficiaries (25% in financial and 12% in physical terms) for the

corresponding period of the last year. 2) BANK-WISE/ SCHEME-WISE ANALYSIS OF ACHIEVEMENTS The Bank-wise achievements in five major Central/ State Government Sponsored

Schemes as on 30th September 2011 are discussed below in light of the figures

annexed Scheme-wise as Annexure E, E1, E2, E3 and E4.

SGSY: Under SGSY against a target of Rs.37.10 Crore for 7,420 beneficiaries, banks

have disbursed an amount of Rs.14.14 Crore to 2,858 beneficiaries (which includes 786

pending cases of previous year) by the end of Q2 of FY 2011-12, which works out to

achievement of 38% and 38.51% in financial and physical terms respectively. Out of the

total achievement of Rs.14.14 Crore the major contributors are J&K Bank (Rs.5.98

Crore for 1256 units), State Bank of India (Rs.1.42 Crore for 286 units), J&K Grameen

bank (Rs.2.97 Crore for 577 units) and Jammu Central Cooperative Bank (Rs.0.92

Crore for 172 units). From the data available it is been observed that 6,478 cases were

sponsored to banks against the target of 7,420 cases, out of which 3,018 cases were

sanctioned, 855 cases were rejected/ returned and 2,605 Cases are pending for

sanction with banks.

PMEGP: Under PMEGP Scheme against the annual target of Rs.39.60 Crore for 974

beneficiaries, banks at the end of Q2 of FY 2011-12 have disbursed an amount of

Rs.24.82 Crore to 778 beneficiaries (which includes 282 pending cases of previous

year) for setting up of employment generating units thereby achieving 62.67% and 79%

in physical and in financial terms respectively. Out of the total achievement (physical

targets) of all banks operating in J&K State at 778 units the major contributors are J&K

Bank (488 units), J&K Grameen Bank (100 units), SBI (67 units), JCCB (37 units),

BCCB (28 units) and PNB (23 units). From the data available it is been observed that

only 1379 cases were sponsored to banks against the target of 974 cases out of which

664 cases were sanctioned, 140 cases were rejected/ returned and 575 cases are

pending for sanction with banks.


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JKSES: Under JKSES, banks have disbursed an amount of Rs.31.80 Crore (including

Rs.19.49 Crore of previous year’s pending cases) to 1,277 beneficiaries by the end of

Q2 of FY 2011-12 against the annual target of Rs.119.53 Crore for 6,711 beneficiaries,

thus registering an achievement of 27% in financial terms and 19% of the physical

target. Out of the total disbursement of Rs.31.80 Crore for 1277 beneficiaries the

contribution of J&K Bank, SBI & PNB is of the order of Rs.19.53 Crore (803 cases),

Rs.5.72 Crore (207 cases) and Rs.2.22 Crore (95 cases), respectively. From the data

available it has been observed that 3008 cases were sponsored to banks against the

target of 6,711 cases out of which 1298 cases were sanctioned, 365 cases were

rejected/ returned and 1,345 Cases are pending for sanction with banks.

SJSRY: Under SJSRY, banks have disbursed an amount of Rs.3.53 Crore to 206

beneficiaries (which includes Rs.1.68 Crore of previous year’s pending cases) by the

end of Q2 of FY 2011-12 against the annual target of Rs.11.14 Crore for 752

beneficiaries, thus registering an achievement of 32% & 27% in financial and physical

terms respectively. Out of the total achievement of Rs.3.53 Crore the contribution of

three major banks i.e., J&K Bank, SBI and PNB has been Rs.2.14 Crore (131 units),

Rs.0.36 Crore (24 units) and Rs.0.67 Crore (25 units) respectively. From the data

available it is been observed that only 305 cases were sponsored to banks against the

target of 752 cases out of which 161 cases were sanctioned, 40 cases were rejected/

returned and 104 Cases are pending for sanction with banks.

SC/ST/OBC: Under SC/ST/OBC banks have disbursed an amount of Rs.0.76 Crore to

164 beneficiaries (which includes Rs.0.19 Crore of previous year’s pending cases) by

the end of Q2 of FY 2011-12 against the annual target of Rs.14.36 Crore for 2,980

beneficiaries thereby registering an achievement of 5.29% & 5.50% in financial and

physical terms respectively. Against the physical target of 2,980 units, only 380 cases

have been sponsored, out of which 194 cases were sanctioned by Banks, 41 cases

were rejected and 145 cases are pending for sanction with the banks.

In light of above and the figures submitted as per the Annexures, the house is requested to deliberate upon the issue.

Encls-08


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AGENDA ITEM: 83.03 1. Performance under Handicrafts / Handloom as on 30th September 2011: 2. Enhancement of Interest Subsidy from 5% to 10% and increase in loan

slab from Rs.0.50 Lacs to Rs.1.00 lac The Bank-wise achievement as on 30.09.2011 under these Schemes is discussed

below in light of the figures given in the Annexures-F, G & H.

Handicrafts: Against the target of Rs.27.47 Crore for 4,516 beneficiaries set for banks

under this sector for the FY 2011-12, banks have disbursed a total amount of Rs.2.85

Crore to 442 beneficiaries by the end of Q2 of FY 2011-12, which includes 34

sanctioned cases of previous year. Against the physical target of 4,516 cases, 1,584

cases have been sponsored to various banks, out of which 484 cases were sanctioned,

214 cases were rejected and 886 cases are lying pending with the banks for sanction.

ACC Scheme: As per 82nd J&K SLBC decision banks were required to provide figures

of achievement under Artisans Credit Card (ACC) Scheme separately. But despite

timely instructions none of the banks/ LDMs have provided the said data separately.

Banks/ LDMs are impressed upon to provide separate data for ACC to SLBC

Secretariat in future for review in SLBC meetings. Handlooms: Against a target of Rs.16.43 Crore for 1,812 beneficiaries set for banks

for FY 2011-12, banks in J&K State have disbursed a total amount of Rs.0.79 Crore to

109 beneficiaries by the end of Q2 of FY 2011-12, which include 33 sanctioned cases of

previous year. Against the physical target of 1,812 cases 509 cases have been

sponsored to various banks, out of which the banks have sanctioned 144 cases with

315 cases pending for sanction and 50 cases rejected/ returned due to various reasons. Enhancement of Interest Subsidy and increase in loan slab

Govt. of J&K, Industries & Commerce Department, vide Govt. Order No.161-IND of 2011 dated 26.09.2011, have accorded sanction to”

1) Enhancement of loan slab for Artisans under Micro Credit Scheme from the existing ceiling of Rs.0.50 Lacs to Rs.1.00 Lacs;

2) Increasing the rate of interest subsidy on loan from 5% to 10%. The said Govt. order has been already circulated for information of all banks/ LDMs.

The house is requested to deliberate.

Encls-04


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AGENDA ITEM: 83.04

ACHIEVEMENT UNDER SELF HELP GROUP (SHG) AS AT END OF SEPTEMBER 2011: Reserve Bank of India has desired to have a proper review of disbursement of credit

through Self Help Groups (SHGs), as it is an effective tool for delivering credit to rural

poor for their economic empowerment and social development and it is an alternative

loan delivering system, which minimizes the cost of operation and transaction for the

banks. Accordingly, the performance of banks as of 30th September 2011 is submitted

as per Annexure-I.

As is evidenced by the Annexure only 9 banks amongst the banks operating in the State

have reported disbursement of loans under the SHG scheme by the end of Q2 of the FY

2011-12, which aggregate to Rs.250.78 lakh in favour of 286 SHGs. The major

contributors have been J&K Bank (Rs.80.53 lacs fvg. 76 SHGs), Ellaquai Dehati Bank

(Rs.90.15 Lacs fvg. 58 SHGs), J&K State Cooperative Bank (Rs.23.50 Lakh fvg.55

SHGs), J&K Grameen Bank (Rs.37.00 Lakh fvg. 41 SHGs), PNB (Rs.4.55 lakh fvg. 32

SHGs) and SBI (Rs.5.15 lakh fvg. 13 SHGs).

The house is requested to review the position and deliberate on the issue

Encl-01


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AGENDA ITEM: 83.05

Achievement under Kissan Credit Card (KCC) Scheme:

The performance of Banks under KCC scheme vis-à-vis Annual Credit Plan 2011-12 as

at the end of September 2011 is given in Annexure-J. It is observed that as against the

annual target of Rs.416.69 Crore for 64,286 beneficiaries, banks in the State have

provided credit of Rs.30.96 Crore to 4,751 beneficiaries at the end of Q2 of FY 2011-12

thereby registering an achievement of 7.42% and 7.39% in financial and physical terms

respectively.

Each non-defaulter farmer to be given a Kissan Credit Card by 15.10.2011 Government of India, Ministry of Finance, Department of Financial Services, vide D.O.

No. 1(4)/2011-CP dated 7th September 2011 have directed as under:

“Each non-defaulter farmer is to be given a Kissan Credit Card by 15.10.2011.

The list of farmers in each village is available with the local census office on a

CED. In States where the land records are online, the list also can be obtained

from the Local Revenue Office. The LDM of each district must work through the

DCC and get this list made available for each village to the branches, which are

in its service area. This will apply to all commercial banks whether private sector

or public sector”.

This GoI, MoF directive has already been circulated by SLBC to all member banks vide

letter No. LBD/SLBC/Misc./2011-338 dated September 19, 2011 advising therein to

submit information in the prescribed format. The said information is yet awaited.

Banks may report progress in the matter

The house is requested to review the position and deliberate on the issue

Encl-01


17

AGENDA ITEM NO: 83.06 Interest Subsidy Scheme for Housing the Urban Poor (ISHUP): In terms of Finance Department, J&K Govt., letter No. FD/BKG/03/2008 dated 7th

January 2010 the progress on implementation of the Interest Subsidy Scheme for

Housing the Urban Poor (ISHUP) is being included regularly in the SLBC agenda for

complying with the instructions received by the State Government from GoI, Ministry of

Housing & Urban Poverty Alleviation. Salient Features of ISHUP Scheme GoI, Ministry of Housing & Urban Poverty Alleviation launched ISHUP Scheme in February

2009 to address urban housing shortage in the country.

The Scheme provides for interest subsidy of 5% per annum on loan amount of upto Rs.1.00

lakh for the economically weaker section (EWS) and lower income group (LIG) in the urban

areas for acquisition/ construction of houses.

The National Housing Bank (NHB) and Housing & Urban Development Corporation Limited

(HUDCO) have been designated as the Nodal Agencies for administration on release of

subsidy.

The Scheme will close in 2012 as per GoI guidelines, the last year of the 11th Five Year

Plan Period (2007-12).

The Scheme was adopted by J&K SLBC for implementation in J&K State in its 76th meeting

held on 30th July 2009 and the Member Banks were advised to report progress on

implementation of the scheme to SLBC on quarterly basis.

State Urban Development Agency (SUDA) has been nominated by State Government to

identify, motivate and organize beneficiaries to seek loans for building or buying houses and

forward applications of eligible beneficiaries to banks/ FIs in the State.

Progress under ISHUP Scheme in J&K State As per information received from LDM, Srinagar 69 cases sponsored by the government to J&K

Bank, Zonal Office Kashmir (Central) upto Sept.2011, have been sent to various branches of

the bank, out of which only 4 cases amounting to Rs.4.00 lacs have been disbursed by the

bank. Further 17 cases are reportedly under process. It has been intimated that most of the

cases sponsored to the bank were without the required documents, for which the branches were

not in a position to process such cases, which has already been brought to the notice of Joint

Commissioner, SMC, Srinagar.

The house is requested to deliberate on the issue


18

AGENDA ITEM: 83.07 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 2011: Although SLBC is primarily assigned the role of facilitating and monitoring smooth flow

of credit to priority sector yet the overall credit scenario in J&K State is revealing some

interesting and peculiar behavioral aspects attracting attention like low CDR, low credit

appetite, lack of entrepreneurship, etc. Precisely for the purpose of having some idea

and understanding of and also to address and resolve such peculiar issues, the

statistical data of various banks functioning in the J&K State is provided for the perusal

of the house as under:

1. Comparative Statement of Bank-wise deposits and advances with Credit Deposit

Ratio and Credit + Investment to Deposit Ratio and NPAs outstanding as on

September 2010 and September 2011. Annexure-K

Total advances of all banks operating in the State as on 30th September 2011 stood at

Rs.17,280.51 Crore against Rs.17,003.68 Crore during the corresponding period of

previous year.

The C. D. Ratio of all banks operating in the State stood at 35.71% as on 30th

September 2011 against 40.06% as on 30th September 2010. 2. Statement of Bank-wise /Sector-wise advances Outstanding against Priority

Sector/ Weaker Sections of the society at the end of September 2011.

Annexure-L

Out of the aggregate advances of Rs.17,280.51 Crore outstanding as on 30th

September 2011 an amount of Rs.10,825.35 Crore 62.64% has gone to Priority Sector

and Rs.2,500.22 Crore out of the priority sector has gone to weaker sections of the

society. CREDIT SHARING OF MAJOR PLAYERS IN J&K STATE: As is manifest from the Comparative Statement of Bank-wise Deposits and Advances

(Annexure-KAnnexures 83 SLBC (final).xls) J&K Bank has the largest share of

Rs.11,751.66 Crore comprising 68% of the aggregate outstanding credit of banking

sector of Rs.17,280.51 Crore in the State at the end of September 2011. The share of


19

SBI is Rs.1642.00 Crore comprising 9.50% and that of PNB is Rs.783.13 Crore

comprising 4.53%.

The NPAs position of the major banks as reflected in Annexure-K reveals that in the

total NPAs of Rs.794.66 Crore in the State at the end of September 2011 the share of

J&K Bank is to the tune of Rs.314.79 Crore, that of SBI Rs.107.32 Crore and PNB

Rs.97.52 Crore.

It is also evident from Annexure-L that J&K Bank has the largest share of Rs.7,059.62

Crore aggregate outstanding credit under Priority Sector comprising 65.21% at the end

of September 2011 out of the total Priority Sector Bank Credit of Rs.10,825.35 Crore in

the State. The shares of SBI and PNB in outstanding credit to Priority Sector are

Rs.1,164.73 Crore (10.75%) and Rs.592.18 Crore (5.47%) respectively. From the Annexure, it will be observed that J&K Bank alone has made total advances of

Rs.11,751.66 Crore in J&K State as on 30.09.2011 as against its total deposits of

Rs.29,871.68 Crore, thereby achieving a C. D. Ratio of 39.34%. The other major Public

Sector Banks, viz. SBI & PNB have made advances of Rs.1,642.00 Crore and

Rs.783.13 Crore respectively as against their deposits of Rs.7,168 Crore and

Rs.3,084.69 Crore, achieving a C.D. Ratio of 22.91% and 25.39%, respectively, as on

30th September 2011. The remaining 18 Public Sector Banks put together have

advanced Rs.1,286.05 Crore as against their total deposits of Rs.2,853.08 Crore, which

works out to a C. D. Ratio of 45.07%.

The two Regional Rural Banks operating in the State have advanced a total amount of

Rs.823.46 Crore against their total deposits of Rs.2,166.81 Crore, which works out to a

C. D. Ratio of 38% as on 30th September 2011.

The eight Cooperative Banks i.e. JCC Bank, BCC Bank, ACC Bank, Citizen’s Coop.

Bank, J&KSC Bank, DUCO Bank, SCARD and BMC Bank together have advanced

Rs.779.86 Crore as against their total deposits of Rs.2,254.67 Crore, thereby achieving

C. D. Ratio of 34.59% as on 30th September 2011.

While analyzing the Priority Sector advances it has been observed that the Small

Enterprises sector dominates other sectors by absorbing major share of Rs.5,435.64

Crore followed by Housing, Agriculture and Micro Credit sector with an amount of

Rs.2,653.56 Crore, Rs.2,167.00 Crore, Rs.353.65 Crore respectively and the lowest

share of Rs.215.49 Crore has gone to Education Sector.


20

In light of the figures provided in the Annexures, the glimpse of credit scenario is presented before the house for deliberation upon the issue.

Encls: 04 AGENDA ITEM NO: 83.08

Review of position as per key indicators for monitoring flow of credit in J&K State as of 30th September 2011:

In terms of the Government of India, Ministry of Finance, Department of Financial

Services directives the data containing key indicators as per the format prescribed by

GoI in respect of the banks operating in J&K as on 30th September 2011 is enclosed for

information of the house, which indicate as under:

As against the benchmark of 60%, the C. D. Ratio of all banks operating in the State stood

at 35.71% as on 30th September 2011 against 40.06% during the corresponding period of

2010. C. D. Ratio has come down and the Banks have to make concerted efforts to improve

the same. Total advances of all banks operating in the State as on 30th September 2011 stood at

Rs.17,280.51 Crore against Rs.17,003.68 Crore during the corresponding period of previous

year.

The Priority Sector advances of all banks in J&K State stood at Rs.10,825.35 Crore as on

30th September 2011 constituting 62..64% as against 53.97% as of 30th September 2010,

which is encouraging.

Share of Agriculture advances to total advances in the State has increased from 11.51% as

on 30.09.2010 to 12.54% as on 30th September 2011 against the benchmark of 18%, which

needs to be improved.

Lending to MSMEs sector has increased from 29.21% of total advances outstanding as on

30th September 2010 to 33.50% as on 30th September 2011.

Share of Advances to weaker sections of society has increased from 13.96% as on

30.09.2010 to 14.47% as on 30th September 2011. However, it is above the benchmark of

10%.

Total bank credit under DRI Scheme in the State as on 30th September 2011 stood at a

meager figure of Rs.1.59 Crore representing the negligible proportion of 0.01%, i.e. much

below the benchmark of 1% of total advances.


21

Advances to women stood at Rs.898.22 Crore representing the share of 5.20% out of the

total advances as on 30th September 2011 against the benchmark of 5%.

The house is requested to review the position and deliberate on the issue. Encls: 01 AGENDA ITEM NO: 83.09

Credit delivery to Micro, Small and Medium Enterprises (MSMEs): In terms of GoI, Ministry of Finance, Department of Financial Services, letter-bearing

F.No.21/01/09-Dev dated 12th January 2009 implementation of IBA package on MSME,

Housing and Auto Sectors has to be taken up in the agenda items during the regular

quarterly SLBC meetings.

The progress achieved by Banks on implementation of IBA package on MSMEs and

other productive sectors (cumulative from the date of inception upto 30th September

2011) is given as under:

Banks have sanctioned working capital loans (new) to the extent of Rs.1,363.83

Crore in favour of 25,978 beneficiaries and incremental working capital loans of

Rs. 768.02 Crore in favour of 6,178 existing units.

Banks in the State have so far restructured 6,861 MSMEs accounts involving an

amount of Rs. 438.01 Crores.

Banks have sanctioned Soft Loans for purchase of D. G. Sets to the tune of

Rs.6.77 Crore in favour of 607 entrepreneurs.

Housing loans have been sanctioned by the Banks operating in the State to the

extent of Rs.1173 Crore in favour of 37,423 beneficiaries.

Auto loans have been sanctioned to the extent of Rs.1,203.56 Crore in favour of

39,656 beneficiaries.

Details of achievements made by banks during the Current Financial Year/ during the

quarter ended September 2011 as well as the Bank-wise cumulative position are given

in the enclosed statements for information of the members.


22

The house is requested to review the position and deliberate on the issue. Encl-02

AGENDA ITEM NO: 83.10

Flow of Credit in Minority Concentrated Districts: In terms of Reserve Bank of India guidelines issued vide Master circular

No.RPCD.SP.BC.12/09.10.01/2007-08 dated July 5,2007 followed by circular

No.RPCD.SP.BC.No.13/09.10.01/2007-08 dated July 16,2007, the credit flow to

minorities in 121 districts of the country notified as Minority Concentrated Districts by

GOI is to be monitored, thereby ensuring that the minority communities receive a fair

and equitable portion of the credit within the overall target of the priority sector. For J&K

State only District Leh has been included in the list of minority concentrated districts.

The credit flow to Leh District under priority sector as on 30th September 2011 is enclosed

for information of the house.

The house is requested to review the position and deliberate on the issue Encls: 01


23

SEGMENT – 3 (FINANCIAL INCLUSION /THRUST AREAS) AGENDA ITEM NO: 83.11

I) RBI directive regarding providing of banking services in all the un-banked villages having population of 2000 and above in J&K:

In terms of RBI, C.O., Mumbai Circular No. RBI/2009-10/233 issued vide RPCD, C.O.

LBS.HLC.BC. No: 43/02.19.10/2009-10 dated 27.11.2009 followed by RBI circular No.

RBI/2010-11 dated 16.9.2010 for drawing up Roadmaps for providing banking services

through various forms of ICT based models, including BCs, a total of 795 villages in J&K

State having population of over 2000 but are without banking facilities had been

identified by the concerned Lead District Managers/ Lead Bank Officers and allocated to

different banks for providing banking services by March 2012.

The consolidated State FIP prepared on the basis of the revised FIPs submitted by

concerned 5 banks envisaging models of banking outlets to be rolled out with targets

split over the execution period for implementation within stipulated timeframe and also

the progress achieved by the concerned banks at the end of September 2011 in

implementation of the same is enclosed for information of the members.

S. No

Name of Bank to which allocated

Number of Villages Alloca-ted

Target for 2010-11

Target for 2011-12

Progress achieved As on 31st

March 2011

As on 30

June 2011

As on 30 Sept 2011

No. of villages yet to be covered (as on 30th Sept 2011

1 The J&K Bank 535 133 402 339 389 425 110 2 State Bank of India 95 19 76 37 46 95 … 3 Punjab National Bank 35 4 31 4 6 6 29 4 J&K Grameen Bank 95 12 83 25 50 74 21


24

5 Ellaquai Dehati Bank 35 4 31 12 16 22 13 TOTAL 795 172 623 417 507 622 173

House is requested to deliberate Encls: State FIP AGENDA ITEM: 83.12

Evolving Action plan for un-banked villages having population more than

1000 but less than 2000 in J&K State: In the backdrop of the Review Meeting taken by Secretary (FSD) with CEOs of PSBs/FIs in New

Delhi on 26th April, 2011 asking for SLBC-wise/ Bank-wise/ State-wise allocation of 1000-2000

population villages, Indian Banks’ Association (IBA) vide circular letter No. FI/BO/3217 dated

May 20, 2011 addressed to Convenors of SLBCs, had advised SLBCs to furnish State-wise,

bank-wise allocation of un-banked villages having population from >1000 to <2000.

Accordingly, on the basis of relative feedback obtained through all the 22 LDMs in the State a

consolidated list of 1287 identified unbanked villages having population in the group of >1000 &

<2000 in J&K State was prepared and submitted to SLBC in 82nd meeting held on 5.9.2011 for

allocation among the banks. In the said SLBC meeting it was decided that these villages be

also allocated to the same five banks to whom 795 unbanked villages having population >2000

have been previously allocated and therefore they should sit, hold consultation process and on

their willingness allocate amongst themselves these villages as agreeable to them. Accordingly, a meeting of the concerned five banks was convened on 3.10.2011 at Jammu,

which was attended by representatives of all concerned banks to give their choice for allocation.

The concerned banks thereafter have submitted the lists of villages they are willingly ready to

accept for allocation as under: SBI =190, PNB =143, J&KGB =188, EDB =104 and J&K Bank =988. (However, 220 villages

were left over and were not opted by any bank).

However, on removing the inter-se-overlaps as well as the villages already included & covered

in the previous FIP programme of 795 villages, the final allocation emerges as under:

J&K Bank: 1030 (including 220 villages not willingly opted by any participating bank) State Bank of India : 80 Punjab National Bank: 57


25

J&K Grameen Bank: : 66 Ellaquai Dehati Bank : 40

Total : 1273 The Service Area overlap will be addressed in due course of coverage and implementation.

House is requested to deliberate on the issue and accord approval to the same

Encls: 10 AGENDA ITEM NO: 83.13 Coverage of un-banked / under-banked areas of J&K State In terms of GoI, MoF directive issued vide F. No. 15/3/2009-Dev dated 18.08.2009 the

issue regarding coverage of un-banked and under banked areas of the State/UTs has to

be a regular agenda item in every SLBC meeting. Un-banked Blocks in J&K State:

Five identified blocks of J&K State, viz. Block Duggan (District Kathua), Block Gundana

(District Doda), Block Pahloo (District Kulgam), Block Nangseni and Block Wadwan

(District Kishtwar) were allocated by J&K SLBC to 3 banks, i.e. J&K Bank, J&K

Grameen Bank and Ellaquai Dehati Bank respectively for opening of bank branches

there. The concerned banks have since opened new bank branches in these blocks.

Therefore, the issue stands resolved. Under-banked Areas declared by Reserve Bank of India:

Vide RBI Circular No. RBI/2009-10/298 dated February 1, 2010 4 un-divided districts of

Anantnag, Doda, Kupwara and Poonch (now 7 districts of Anantnag, Kulgam, Doda,

Ramban, Kishtwar, Kupwara and Poonch) have been notified as under-banked districts.

Strategy and Guidelines on Financial Inclusion – Opening of Bank Branches- recent directive of GoI MoF In terms of GoI, MoF recent directive issued vide F.No.21/13/2009-FI (Pt.) dated 8th

November 2011 (copy enclosed) all member banks have been directed to prepare

comprehensive Branch Expansion plans (in the prescribed format) and submit the same

to the Convenor Bank by 30th November 2011 positively.

Accordingly, on the basis of the individual Branch Expansion Plans so far provided by

seven banks the consolidated Branch Expansion Plan for J&K State has been prepared

envisaging 209 new bank-branches to be opened, which include J&K Bank (114

branches), SBI (02 branches), PNB (05 branches) JKGB (37 branches) EDB (17


26

branches), HDFC Bank (33 branches) and Central Bank of India (01 branch). Out of

these 62 branches are planned to be opened in the aforesaid identified under-banked

districts of the State. The said plan has been submitted to GoI, MoF, DFS.

A copy of the same is enclosed for information of the house

Encls: 03

AGENDA ITEM NO: 83.14

Implementation of 100% Financial Inclusion in J&K State:

In terms of RBI RPCD (JMU) letter No.1494/03.01.27/2008-09 dated April 30, 2009

addressed to the Convenor, State Level Bankers’ Committee, the progress achieved in

implementation of 100% Financial Inclusion is required to be reviewed in all the SLBC

meetings as a regular agenda item. Initially district Pulwama (later on bifurcated into 2 districts of Pulwama and Shopian)

was adopted on pilot basis for 100% financial inclusion in 2005. Subsequently 100% financial inclusion of remaining 20 districts in the State was

assigned to the banks in 2008. The progress is being reviewed by the house regularly

thereafter.

In the 79th SLBC a roadmap for 100% financial inclusion was adopted by the house and

the LDMs were advised to implement the same in their respective Districts. But till date

no progress has been reported to SLBC. In the 82nd J&K SLBC meeting the representative of RBI pointed out that mere opening

of no-frills accounts was not enough and advised that the concerned banks have to

ensure that these accounts remain operative and do not become dormant subsequently.

Besides, the banks were advised to ensure that the beneficiaries have access to credit

and other basic financial services and remittance facilities, insurance and deposit

product should be made available through the financial inclusion accounts of the so far

excluded.

The Bank-wise position of No-frills accounts opened in J&K State as at the end of

September 2011 is enclosed for information of the members.


27

Government of India, Ministry of Finance, vide F.No.21/13/2009-FI(Pt) dated

21.10.2011 CMDs of all PSBs, Chairman of all RRBs and CEOs of all Pvt. Sector

Banks, have issued detailed strategy/ guidelines on Financial Inclusion. A copy of these

guidelines is enclosed for information of the house. The house is requested to deliberate on the issue. Encls: 8 AGENDA ITEM NO: 83.15 1. Setting up of Rural Self-Employment Training Institutes (RSETIs) - 2. Allotment of land by Government of J&K for creating permanent

infrastructure for these RSETIs: In terms of GoI, MoRD guidelines issued under No. I.12011/19/2008-SGSY(C) dated

07.01.2009, all the 22 districts of J&K State were allocated in the 76th SLBC meeting to

J&K Bank and State Bank of India for setting up of RSETIs in accordance with the lead

bank responsibilities assigned to them by RBI in the State, viz. 12 districts to J&K Bank

and 10 districts to SBI. Progress achieved in the matter is described below for

information of the house.

Progress achieved by J&K Bank:

J&K Bank has so far operationalized RSETIs in six districts of Baramulla, Pulwama,

Kulgam, Bandipora, Anantnag and Shopian. One more RSETI in District Srinagar is

likely to be operationalized very shortly. The detailed progress is given as under: S. No

Name of District/ RSETI

Staff Provided Present status Contact Details of Director

1 JKBRSETI Baramulla

Mr. Riaz Ahmad Mir, Scale-V, Posted as Director

RSETI has started operations w.e.f 14.02.2011 in rented premises at Amargarh, Sopore.

9419038870

2 JKBRSETI Pulwama

Mr. Altaf Ahmad Sheikh, Scale-V, posted as Director

The RSETI has commenced its operations w.e.f. 21.07.2011 at Town Hall building. Rented premises under renovation.

9622460640

3 JKBRSETI Bandipora

Mir Mohammad Fayaz, Scale-V, posted as Director.

The RSETI has commenced its operations w.e.f. 24.07.2011 in the rented premises at Bandipora

9906612204

4 JKBRSETI Kulgam

Mr. Md. Shafi Bhat, Scale-III, posted as Director.

The RSETI has commenced its operations w.e.f. 25.07.2011. Rented premises under renovation.

9419040604

5 JKBRSETI Anantnag

Mr. Mohammad Iqbal, Scale-IV, posted as Director

The RSETI has started operations from 30.07.2011

9419059005


28

6 JKBRSETI Shopian

Mr. Aijaz Ahmad Banday, Scale-III, posted as Director.

RSETI has started operations from October 2011

9419015540

7 JKBRSETI Srinagar

Ms. Shahzadi, Scale-V, Posted as Director

Hired premises has been occupied at Sonwar, Srinagar. The RSETI is likely to be operationalized soon.

9906523117

8 JKBRSETI Ganderbal

Mr. Altaf Hussain Mir, Scale-V, posted as Director

Hired premises identified in bank’s old premises. Renovation of the same is under progress.

9419009756

As regards other JKBRSETIs, hired premises have been acquired in district Budgam,

and District Rajouri and efforts are also on for acquiring hired premises for district

Kupwara and District Poonch.

Progress achieved by SBI

SBI has so far operationalized 5 RSETIs in Districts Samba, Udhampur, Reasi, Jammu

and Kathua as detailed below:

S. No

Name of District/ RSETI

Name of the Director

Present status Contact Details /Mobile No. of the

Director 1 Samba Shri M. K. Bhat Functioning in the rented premises. LBO Office, Vijaypur,

Samba (9796486616) 2 Udhampur Shri Amarjit Singh

Raine Functioning in the rented premises Devika Lane, Shiv

Nagar, Udhampur (9419032645)

3 Reasi Shri S. K. Kandroo Functioning in the rented premises Mobile No. 9469555162)

4 Kathua Shri Mohinder Kumar

Functioning in the rented premises Lead Bank Office, Kathua (9419156176)

5 Jammu Shri K. K. Sharma Functioning in the rented premises Bantalab, Jammu (9419108743)

As reported by SBI, one more RSETI in District Kishtwar is likely to start functioning

from first week of November 2011.

Status regarding allotment of land by State Government The Govt. of Jammu & Kashmir has not so far allotted land in favour of any of the

RSETIs.

Land allotment document from State Government mandatory for seeking grant assistance for hired premises It is in place to remind that in terms of NIRD communication dated November 4, 2010,

for seeking assistance of Rs.10.00 lakh from GoI to meet the rentals for hired premises

of RSETIs, the GoI has made it mandatory to produce land allotment document from the

State Government, without which the RSETIs would not be able to seek the grant


29

assistance from GoI to meet the rent for premises. In the 81st SLBC meeting the Chief

Secretary assured to personally look into the matter.

The Government of J&K State may inform progress and give a definite timeframe for allotment of suitable land at all district locations for enabling

to proceed for creation of the RSETIs in all the districts of the State. SEGMENT – 4 (RECENT DEVELOPMENTS)

AGENDA ITEM: 83.16 Green Initiative – E-payment: Government of India, Ministry of Finance, DFS D.O.No.8/11/2011-FI dated 12th

September 2011 addressed to Chief Secretary, J&K Government, have advised that in

all the Schemes which are being funded by the Government of India, the subsidies

should be given directly to the beneficiaries through e-transfer.

Subsequently, Finance Department, J&K Government, vide letter No. FD/VIII-

8(186)E.Payment/2011/Bkg/67/2011 dated 26.09.2011, while forwarding a copy of

Government of India, Ministry of Finance, DFS D.O.No.8/11/2011-FI dated 19th August

2011 addressed to Chief Secretary, J&K Government regarding the captioned subject,

have advised that the matter should be brought on the agenda of the SLBC and that

necessary instructions should be issued to all member banks in the State with regard to

the following:

“To enhance use of e-payments, it will be appropriate if all schemes of Govt. of India

and the State Governments, which are being administered by the State

Governments, are implemented by carrying out the following:

(a) All payments to be made to beneficiaries be made by electronic fund

transfer to the respective accounts of beneficiaries. The banks have been asked to open ‘no frill’ accounts.

(b) The lead Bank of your area has been advised to ensure that no beneficiary has any difficulty in opening a bank account.

GoI has advised to ensure that w.e.f. 1st October, 2011 no payments are made or received through cheque except from such institutions which do not have Core

Banking Solutions or have no access to ECS payment facility (this includes


30

certain Urban Cooperative Banks, Local Area Banks and State Cooperative Banks)”

Necessary instructions in the matter have already been issued to all member banks of

J&K SLBC as well as to all the Lead District Managers of the State. The member banks may ensure desired compliance of GoI directives

The house may deliberate on the issue AGENDA ITEM: 83.17

Agri Clinic and Agri Business Centres Workshop at at National Bank Staff College, Lucknow organized by NABARD - Action Points for SLBC Convenors: NABARD, Mumbai, vide letter No. NB.ICD.GSS.1778/ACABC Workshop/2011-12 dated

14 September 2011, have informed that the Agri Clinic and Agri Business Centres

Scheme has been modified w.e.f. September 2010 and the detailed operational

guidelines of the scheme issued by GoI was circulated among all banks by NABARD.

In order to discuss various issues relating to implementation of the scheme and also to

chalk out a strategy for enhancing the credit flow under the Scheme, a one-day

workshop was organized by NABARD on 27th August 2011 at National Bank Staff

College (NBSC), Lucknow for the stakeholders of the Scheme. The following action

points have emerged from the Workshop:

Action Points for SLBC Convenors A Sub-Committee of SLBC to be constituted to workout a strategy for successful

implementation of programme; ACABC Scheme to be included as a regular agenda item in the SLBC/DLCC/BLBC

meetings. The issue to be taken up with RBI. Co-ordinate with regional office of NABARD to organize sensitization programmes

on the scheme. Invite representatives of training institutions for discussions in the SLBC meetings

as a special invitee. Circulate the uniform loan application form among the controlling offices.

Action Points for Controlling offices of Banks: Ensure that branch managers are aware about the revised guidelines of the

scheme; Advise branches to sanction all eligible cases expeditiously; Advise branches to claim subsidy from NABARD within a week from the date of

sanction/ disbursement of loan;


31

Update data base in the online system immediately after sanction and disbursement of loan;

Update data base in the online system immediately after sanction and disbursement of loan;

Advise branches to identify potential borrowers based on the data available in the website of ACABC (www.agriclinic.net);

Examine whether branches may be authorised to submit subsidy claim directly to NABARD; and

Advise all branches to finance at least one ACABC unit subject to its feasibility.

The house may deliberate on the issue AGENDA ITEM: 83.18 Nomination / allocation of States/UTs among Director/ Deputy Secretary for State Level Bankers’ Committees (SLBC):

Government of India, Ministry of Finance, Department of Financial Services, vide

Office Memorandum bearing F.No.2/6/2011-FI dated 20th September 2011 have

forwarded a copy of Nodal Officers nominated for attending the SLBC meetings

in different States, as detailed below:

Allocation of States among Director/ Deputy Secretary for SLBC Meeting

Sl. No.

States/ UTs Director/ Deputy Secretary

Joint Secretary

1 Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland,Tripura

Sh. Pravin Rawal Sh. Alok Nigam

2 Bihar, Jharkhand, Orissa

Sh.A.Bhattacharya JS …

3 West Bengal,Sikkim, Andaman & Nicobar

Sh. Lalit Kumar Sh. Arvind Kumar

4 Uttar Pradesh, Uttarakhand

Dr. Alok Pande Sh. Umesh Kumar

5 Madhyu Pradesh, Chattisgarh

Dr. Shashank Saxena Sh. Alok Nigam

6 Delhi, Punjab, Haryana, Chandigarh Dr. Tarsem Chand Sh. Anurag Jain 7 Jammu & Kashmir,

Himachal Pradesh Sh. S. K. Jindal Sh. Anurag Jain

8 Rajasthan,Gujarat, Daman & Diu, Dadar & Nagar Haveli

Ms. Sreya Guha Sh. Umesh Kumar

9 Maharashtra & Goa Sh. A. Bhattacharya JS

…

10 Andhra Pradesh, Karnataka, Lakshadweep

Sh. L. K. Meena Sh. V.P.Bhardwaj

http://www.agriclinic.net/


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11 Tamil Nadu Kerala, Puducherry

Sh. V. K. Chopra Sh. V.P.Bhardwaj

This is for information of the House

AGENDA ITEM: 83.19

Participation of banks in implementation of Crop Insurance Scheme in

J&K: Agriculture Production Department, J&K Government, vide letter No. Agri/B-

Gent/297/2007-08-1 dated 29.11.2011 have informed that the Agriculture Production

Department is implementing the National Agriculture Insurance Scheme in the State of

Jammu & Kashmir for ‘Kharif crops’ Paddy, Maize and Potato and ‘Rabi crops’ Wheat,

Mustard and Potato. The Ministry of Agriculture, Govt. of India has also extended a

‘Weather Based Crop Insurance Scheme’ for fruit crops. Consequently, in the State

Level Coordination Committee meeting of Crop Insurance held on 12.10.2011, it was

decided that fruit crops of Apple, Mango, Cherry and Saffron shall also be covered

under the “Weather Based Crop Insurance Scheme’ in Pulwama, Shopian and

Baramulla districts of Kashmir division and Doda, Ramban and Kathua districts of

Jammu division. In the meeting the Director, Agriculture, Jammu/ Kashmir, Horticulture,

Jammu/ Kashmir dwelt about non-participation of Banks in the promotion/ adoption of

the Scheme”.

In the said backdrop the Agriculture Production Department has requested to place the

issue before the State Level Bankers’ Committee seeking active involvement of Banks

in implementation of the Crop Insurance Scheme for cereal and fruit crops.

The house is requested to deliberate on the issue


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SUPPLEMENTARY AGENDA ITEMS FOR 83RD J&K SLBC MEETING AGENDA ITEM: S-83.01

Formation of Service Area Plans for each District:

GoI, MoF, Department of Financial Services, vide D.O. No.1 (4)/2011-CP dated 7th September,

2011, followed by letters bearing F.No.11/4/2011-FI dated 24th October 2011 and

F.No.11/4/2011-FI dated 24th November 2011 addressed to Chairmen / CMDs of all SLBC

Convenor banks, have advised formulation of:

a) Service Area Plan (both District-wise and Agency wise) of each of the 22 districts (block-wise), duly approved by DCC/DLRC as per Annexure.

b) Service Area Plan for State as a whole (agency-wise), duly approved by SLBC.

The GoI, MoF has also directed that these District-wise/ Block-wise/ Agency-wise Service Area

Plans be uploaded on the respective District’s websites maintained by NIC.

All the Lead District Managers/ Lead Bank officers of J&K State were directed to prepare the

requisite Service Area Plans in the prescribed format and ensure that the same are uploaded on

the District Websites.

Accordingly, on the basis of the Service Area Plans submitted by the concerned Lead District

Managers/ Lead Bank Officers the consolidated Service Area Plan has been prepared in the

GoI prescribed format, which is enclosed for information of the House.

House is requested to approve the same.


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Encls: 9

AGENDA ITEM: S-83.02

Drawing up of Yearly Calendar of SLBC meetings to be held during the

Calendar year 2012:

RBI, Central Office vide circular No. RBI/2010-11/343 dated December 29, 2010 had

observed that SLBC meetings are neither conducted in time nor the agenda is

circulated in advance. Further, the level of participation in the meetings is not upto the

prescribed level thereby undermining the prime objective of holding the meetings.

Therefore, in order to improve the effectiveness and streamlining the functioning of

SLBC meetings, RBI/GOI had directed the Convenor Banks to prepare a yearly

Calendar of Programmes (Calendar-year basis) in the beginning of the year itself, for

conducting the meetings.

Accordingly, the yearly-calendar for convening meetings of J&K SLBC during the

ensuing year 2012 has been prepared in accordance with the prescribed schedule of

cut off dates for data submission to SLBC, etc. The same is enclosed for being adopted

by the house so as to circulate the same amongst the concerned member banks, Lead

District Managers and other members for adherence.

In the event the house accords approval to the Calendar of SLBC meetings

members are requested to reserve the dates indicated in the Calendar for

being available for SLBC meetings and also to ensure submission of data

to SLBC strictly as per cut-off dates mentioned in the calendar.


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