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Improve credit-deposit ratio in Kashmir, banks urged

Jammu, Dec 16 (IANS) The credit-deposit ratio in Jammu and Kashmir is far below the national average, state Finance Minister Abdul Rahim Rather said Monday, urging banks to fulfil their national responsibility of provide hassle-free credit to the state's people.

Rather asked all the national level financial institutions operating in the state to extend liberal credit facility keeping in view the state's limited financial resources besides the numerous problems it was facing. 

"It was the national responsibility of the bankers to provide hassle-free lending support to the people of the state," he said at the 91st meeting of the state level bankers committee here.

Financial institutions should strive to remove the persisting impression that banks in the state are interested only in deposits and least concerned about advances, he added.

Asking banks to improve credit-deposit ratio which is far below the national benchmark, he said there should be no flight of capital from the poor state.

Also calling for greater accountability among banking institutions and for bringing defaulters to book, Rather said that instructions given at the SLBC meeting should be taken seriously and implemented in letter and spirit.

Hailing the local J&K Bank, State Bank of India and HDFC Bank for taking some initiatives under corporate social responsibility (CSR) agenda, the minister urged them to prepare such CSR plans which would make a more lasting impact on the socio-economic conditions of the people, particularly in the remote and in-accessible areas.

He also enjoined upon the banks to complete full coverage of 10.9 lakh farming families under Kisan Credit Card (KCC) scheme, adding that the state government has already exempted credit up to Rs.1.50 lakh per KCC from stamp duty.

Seeking cooperation of the commercial banks in implementation of electronic benefit transfer (EBT) scheme on a fast track basis, Rather called for greater sense of urgency to bring Jammu and Kashmit at par with other states in mobilizing of deposits, expansion of credit networks and improving other banking parameters.

Update: 16-December-2013