Credit Scene: Of Rs 80 Cr on daily average, non-priority sectors take away lion’s share

Jammu: Several banks operating in Jammu and Kashmir are reported to be extending credit facilities at a daily average of Rs 80 Crore with most of the money going to the non-priority sectors over and above targets while the priority sector has yet to reach halfway the desired goals of the annual credit plan.

During the first three quarters of financial year 2018-19, which is April 1 to December 31 2018, the banks have extended a total credit of Rs 21,821.98 Crore in favour of 6,20,993 beneficiaries both under Priority as well as Non-Priority Sector of economy. This works out to disbursement of Rs 80 Crore credit on almost a daily average.

There is a glaring disparity in forwarding credits in priority and non-priority sectors. While the non-priority sectors have taken away credit 29% over and above the target in financial terms and 5% in physical terms, the priority sectors like agriculture, housing and small enterprises have not touched even the halfway mark of the target.

Targets &

Achievements

Priority

Sector

Non-Priority

Sector



Credit Target

23,741,91 Cr

Rs. 7,955.70 Cr



Beneficiaries Target

8,39,476 Cr

2,29,210



Credit Extended

Rs. 11,511.35

Rs. 10,310.63 Cr



Beneficiaries Covered

3,78,257

2,42,736



Achievement (Financial)

48.49%

129.60



Achievement (Physical)

45.06%

105.90 pc

Following presentation of data on loan disbursement by J&K Bank Chairman Parvez Ahmed, Chief Secretary B V R Subrahmanyam has constituted a high-powered committee, under Finance Secretary Navin Choudhary, to look into the impediments hampering smooth flow of credit to Agriculture, Housing and MSMEs Sectors through banks. The committee would look into the difficulties in sanctioning loans to the beneficiaries across the state.

The issue was discussed threadbare Thursday at a meeting of State Level Bankers’ Committee meeting of which J&K Bank CEO Ahmed is the convenor.

Briefing on the credit scenario, Ahmed said “Banks operating in J&K have extended a total credit of Rs 21,821.98 Crore in favour of 6,20,993 beneficiaries both under Priority as well as Non-Priority Sector of economy during the first three quarters of Financial Year 2018-19 thereby achieving 68.84 pc of the ACP target in Financial terms and 58.11 in physical terms.

It was given out that under Priority Sector Banks have disbursed credits of Rs. 11,511.35 Crore in favour of 3,78,257 beneficiaries against the annual target of 23,741,91 Crore for 8,39,476 beneficiaries thereby achieving 48.49 pc of the target in financial terms and 45.06 pc in physical terms.

Under Non-Priority Sector Banks have disbursed credit of Rs. 10,310.63 Crore in favour of 2,42,736 beneficiaries against the target of Rs. 7,955.70 Crore for 2,29,210 beneficiaries thereby aching 129.60 pc of the target in financial terms and 105.90 pc in physical terms.

The Chief Secretary pointed out that despite having huge potential, the credit off take under Agriculture, Housing and MSMEs Sectors has remained low. He impressed upon the banks to put in concerted efforts so that credit disbursement to these sectors is substantially improved.

The Chief Secretary directed all the district bank leaders for analyzing the data and submitting a comprehensive report regarding the low performance in agriculture Housing and MSMEs sectors of the state.