Excelsior Correspondent
SRINAGAR, Sept 14: Chief Minister Mufti Mohammad Sayeed today called for improving lending by premier banks to boost the State’s low Credit Deposit Ratio (CDR) and bring it at par with RBI’s stipulated level of 60 per cent.
“The premier banking institutions of the country need to lend more to enterprises, especially in the agriculture, craft and small and medium enterprises (SME), keeping in view the low CDR of 46 per cent in the State,” Sayeed said speaking at a luncheon meeting with the RBI Governor Raghuram Rajan here.
Heads of leading premier banks of the country including HDFC, ICICI, PNB and the Canara Bank attended the special State Level Bankers’ Committee (SLBC), convened by the RBI Governor at SKICC in the summer capital, pursuant to his commitment made to the Chief Minister earlier this year.
Finance Minister Haseeb A Drabu, Advisor to the Chief Minister Prof Amitabh Mattoo, Chief Secretary B R Sharma, Principal Secretary to Chief Minister B B Vyas and Commissioner Secretary, Finance, Navin Chaudhary, also attended the meeting, an official spokesman said.
The Chief Minister also raised with RBI the issue of recapitalisation plan of the three cooperative banks at Jammu, Anantnag and Baramulla, which are facing threat of getting de-licensed by the RBI.
The State has proposed approaching NABARD to advance the State share of Rs 139 crore as loan, paving way for capital infusion of the three cooperative banks from the RBI.
Asking the banks to increase their credit flow in housing and education sectors, the Chief Minister particularly stressed upon advancing loans for restructuring of orchards for high-density farming as well as laying of agriculture infrastructure like setting up of CA stores, van chains and packing and grading lines.
“Horticulture is our mainstay. The Government is planning major interventions in replacing old orchards with high-density plantations to improve returns, quality and production,” he told the participants.
Highlighting the need for opening more branches in the remote areas of the State to ensure 100 per cent financial inclusion, Sayeed also stressed upon bank heads to take a lead in helping business enterprises across board to start afresh, after massive damage caused to their businesses by unprecedented floods last year.
The Chief Minister also called upon the financial institutions to recruit local youth in the branches operating within the State and broaden the scope of its CSR operations.
On the issue of recovery of loans, which may have gone bad from defaulters, Commissioner Secretary Finance said the Government has framed a committee to draw legislation for separate Act to enable recovery of defaulted loans.
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