J&K govt asks banks to enhance lending activities

The Jammu and Kashmir government has asked commercial banks to enhance their lending activities and has stressed upon coordination and synergy between banks and government departments for promotion of the economic independence of the rural sector.

Jammu District Development Commissioner M K Dwivedi --who chaired a meeting of the District Review Committee (DLRC) and District Consultative Committee (DCC) convened by the State Bank of India for the quarter ending March, 2010 --expressed displeasure over the low credit deposit ratio in the state.

"It is exhorted upon the representatives of all the banks to improve the CD ratio and deliver more efficiently to full social commitments," Dwivedi said.

The meeting was held to review the performance of banks with regard to their achievement under the Annual Credit Plan of 2009-2010 and to take stock of the position of deposits and advances of all banks.

Dwivedi was informed that the deposits of all commercial banks, as on March 31, stood at Rs 11,392 crore, while advances of all banks stood at just Rs 3,846 crore, translating into a poor CD ratio of 33.76 percent.

Speaking at the meeting, SBI Chief Manager I B Sharma apprised the house that a sum of Rs 743 crore was disbursed by banks against the annual target of Rs 724 crore under the priority sector, translating into a 103 per cent achievement under the Annual Credit Plan of 2009-2010.

Dwivedi reiterated that much more needs to be done by the banks to fulfill their social commitments. He also stressed on coordination and synergy between banks and state government departments for promotion of self-help groups and economic independence of the rural people.