Excelsior Correspondent
SRINAGAR, July 3: Minister for Finance and Ladakh Affairs, Abdul Rahim Rather, on behalf of the State Government, today handed over a cheque worth Rs. 5.10 crore as its capital share to the J&K Grameen Bank under recapitalization scheme of the Government of India.
A total of Rs. 34 crore are being infused as capital to the J&K Grameen Bank. Out of this amount, Government of India will contribute Rs. 17 crore, whereas the share of J&K Bank will be Rs. 11.90 crore. As on date, the Bank has capital adequacy rate of 11.20%.
Principal Secretary Finance, B. B. Vyas, who is also Principal Secretary to Chief Minister, President, Finance and Grameen Bank Management, J&K Bank, S. K. Bhat, who is also Director on J&K Bank Board and Consultant, Finance, Resham Kashyp were also present on the occasion.
The capital share cheque was received by S. K. Bhat on behalf of the J&K Grameen Bank.
Briefing about the performance, S. K. Bhat informed that the Grameen Bank is a sponsored Bank of J&K Bank. It was established after amalgamations of Jammu Rural Bank and Kamraz Rural Bank and started functioning as J&K Grameen Bank on 1st July, 2009. He said, for last two years, the Bank is earning profit and is adequately capitalized. The Bank has 201 branches and this year more 20 new branches are being opened in rural areas of district Kupwara, Bandipora, Bara-mulla, Rajouri, Poonch, Udhampur, Ladakh and Kargil. He said the Bank is fully computerized and is working on Core Baking Solution (CBS)
The J&K Grameen Bank, having a total business turnover of Rs. 3,022 crore, has advanced Rs. 591 crore to priority sector which constitutes 70% of the total advances of Rs. 858 crore. Of this, Rs. 189 crore have been advanced to agriculture sector alone which is 22% of the total advances and much higher than prescribed by NABARD and RBI. The Bank has total deposits to the tune of Rs. 2165 crore with 40% CD ratio against 36% during the last fiscal. The Bank has issued 91,000 KCCs to eligible farmers and is also giving small ticket size loans.
Speaking on the occasion, the Finance Minister called for enhancing credit flow to priority sector especially agriculture sector. He said rural credit should be the core focus of all banking institutions.
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