1

National Bank for Agriculture

& Rural Development
Chapter
15
ational Bank for Agriculture and Rural Development (NABARD) is an apex
bank with a mandate for facilitating credit flow for promotion and development
of agriculture, small scale industries, cottage and village industries, handicrafts
and other rural crafts. It also has the mandate to support all other economic activities in
rural areas including strengthening of infrastructure, promoting integrated and sustainable
rural development and secure prosperity of rural areas. In discharging its role as a
facilitator for rural prosperity NABARD is interested with i) providing refinance to
lending institutions in rural areas, ii) bringing about or promoting institutional
development and, iii) evaluating, monitoring and inspecting the Clint banks. NABARD
continued to support various innovative initiatives in addition to the ongoing banking
activities.
Development andPromotional I nitiativesof NABARD
Rural I nfrastructureDevelopment Fund
15.2 Development of rural infrastructure is imperative for agriculture and sustainable
economic growth for improving the quality of life. To address the critical infrastructural
gaps in the rural areas, Rural Infrastructural Development Fund (RIDF) was instituted in
NABARD during 1995-96. The main objective of the RIDF is to provide loans to the
state Governments and state owned corporations enabling them to complete the rural
infrastructure projects.
15.3 The broad categories of projects covered under the RIDF are as under:-
a) Agriculture and allied sectors: These include irrigation projects, soil conservation,
flood protection, watershed, reclamation of water logged areas, animal husbandry,
plantation and horticulture, seed agriculture and horticulture farms, forest development,
market yards, godowns, marketing infrastructure, infrastructure for Information
Technology in rural areas etc.
b) Social sector: Social sector projects include drinking water, public health institutions,
infrastructure for rural education etc.
c) Rural connectivity: The projects under this sub sector include rural roads and rural
bridges.
d) Funding: In J&K, building of rural infrastructure under RIDF-I started with an allocation
of ` 614.92 lakh during 1995-96 with a number of 11 projects. The annual allocation to
the fund for 2011-12 (RIDF-XVII) was ` 13335.62 lakh for 140 projects. The cumulative
number of projects encompassing RIDF-I to XVII has reached to 4668 as on March,
2012. During the year 2011-12, against 140 projects disbursement was amounting `
3424.99 lakh under RIDF (XVII). Thus at the end of March, 2012, against total 4668
projects (RIDF-I to XVII) cumulative sanctions and disbursements were ` 419754.46
N
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lakh and ` 298198.92 lakh respectively. Tranche-wise number of projects sanctioned for
J&K together with NABARD loans sanctioned and disbursed since the inception of RIDF
is abstracted in Table No.1 here under.
TableNo1Tranche-wisesanctionsanddisbursements(ason31
March2012) (` inlakhs)
Tranche
No. of
Projects
NABARDLoan
Sanctions Disbursements
RIDF-I 11 614.92 603.85
RIDF-II* 1 805.67 57.41
RIDF-III 164 3594.71 2380.37
RIDF-IV 88 10746.60 10341.65
RIDF-V 132 11088.38 10941.27
RIDF-VI 176 16152.26 15450.94
RIDF-VII 2039 21679.95 20675.77
RIDF-VIII 131 17563.85 15798.43
RIDF-IX 155 15381.90 14710.88
RIDF-X 11 4737.70 4706.60
RIDF-XI 91 7955.27 7955.27
RIDF-XII 254 46019.13 43321.27
RIDF-XIII 382 60213.22 47959.88
RIDF-XIV 199 34243.27 27097.53
RIDF- XV 334 65368.62 42378.74
RIDF - XVI 360 90253.39 30394.06
RIDF-XVII 140 13335.62 3424.99
Total* 4668 419754.46 298198.92
* Projectof RDIF-II withdrawn
Sectoral breakupof RI DF projects
15.4 The sector wise details of projects for which NABARD has sanctioned and
disbursed loan are given in table no 2. The table revealed that out of 4668 sanctioned
projects share of social sector projects is 45.91% followed by 40.42% share of roads and
bridges. Similarly in the NABARDs cumulative sanctioned amount of ` 419754.46 lakh
more than th amount viz 77% is claimed by rural roads and bridges sector, the share of
agriculture and allied activities account for 10.30 percent , while as 7.55 percent and 5.07
percent sanctioned amount belonged to social sector and sectors categorized as others
respectively. Similarly out of cumulative NABARD loan disbursement of ` 298198.92
lakh, 80.50 % has been disbursed in roads & bridges sector, and the remaining 19.50
percent loan disbursed collectively in the other three sectors.
TableNo. 2:- Sector-wisecumulativenumber of Projectsviz-a-vizamount sanctionedand
disbursed.
Sector No. of Projects
Amount inLakh`
Sanctioned Disbursed
I. Agriculture and allied activities
a)Irrigation
343 32392.17 21920.28
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b)Soil conservation (Flood
Protection) 52 10774.80 7176.27
c)Watershed Development
3 70.33 46.30
Total I 398(8.53) 43237.30(10.30) 29142.85 (9.77)
II. Roads and Bridges
a)Roads
1633 285483.14 212307.20
b)Bridges
254 38059.19 27747.24
Total II 1887 (40.42) 323542.33 (77.08) 240054.44 (80.50)
III. Social Sector
a)Schools
1860 3183.56 2414.00
b)Rural drinking water 283 28520.66 14642.95
Total III 2143 (45.91) 31704.22 (7.55) 17056.95 (5.72)
IV. Others
Seed Farm, Health care, Farm
development etc. 240 (5.14) 21270.61 (5.07) 11944.68 (4.01)
Total 4668 (100.00) 419754.46(100.00) 298198.92(100.00)
Note: Figuresinbracketsindicatepercentageshare
EconomicandSocial Benefitsof RI DF Projects
15.5 The completed projects under RIDF realize the economic and social benefits
interms of creation of additional irrigation potential, generation of additional employment
for the rural people, all weather connectivity/ improved connectivity to villages
marketing centres and improvement in quality of life through better facilities viz
education, health and drinking water supply.
15.6 The sector wise benefits generated since the inception of RIDF are highlighted
below.
1. Agriculture Sector: Irrigation potential of 61173.68 hectares has been created. The
increase in irrigation potential would help to augment agricultural production and
productivity. Apart from this achievements regarding soil conservation (flood protection)
were 11948 hectares as on March, 2012.
2. In the rural roads and bridges sector, 12996 km road length has been constructed.
3. In other sectors, 50054 students were benefitted apart from providing water supply
facility to 6.98 lakh people. Moreover, 30.01 lakh people were benefitted by providing
health care facilities etc. Table No. 3 given below provides numerical information on the
benefits that accured from RIDF projects as on March 2012.
TableNo. 3Depict sector wiseachievementsof Projectssanctionedunder RIDF
Sector
Projects
sanctioned
Benefitsrealised
1.Agriculture Sector
a)Irrigation 343 61173.68 hectares
b)Soil conversation (Flood Protection) 52 11948 hectares
c)Watershed development
3
Conservation of land,
preserving moisture &
checking soil erosion, etc.
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TableNo. 3Depict sector wiseachievementsof Projectssanctionedunder RIDF
Sector
Projects
sanctioned
Benefitsrealised
2.Roads and Bridges 1887 12995.95 Km
3.Social Sector
a)Schools 1860 50054 students
b)Rural drinking water supply 283 698107 souls
4.Others 240 30.01 lakh people
NA: Notavailable
Credit Planning
Credit Planfor 2012-13andPerspectivePlanfor 2013-14
Total Credit Potential under PrioritySector
15.7 Availability of institutional credit by financial institutions for exploiting the credit
potential under agriculture and rural development sectors is extremely important. In order
to provide meaningful link between development and credit planning for supporting
agriculture and rural development, NABARD prepares Potential Linked Credit Plans
(PLP) on annual basis for each district in the state. The sector-wise available natural
resources, physical infrastructure, plans of the State Government, infrastructure gaps and
human resources in the districts are the basis for working out the credit absorption
potential in the district. The credit potential for J&K State envisaged in various sectors by
NABARD on the basis of PLPs during the years 2012-13 and perspective plan for 2013-
14 viz-a viz achievements for 2011-12 is given as under in Table no.4:
TableNo4: Sector wiseCredit potential for J &K (` inlakh)
Sector
2011-12
Potential link credit
Planestimates
Potential
link Credit
Plan
Estimates
Groundlevel
credit
Targets
Achievements
2011-12
% age
ach.
2012-13 2013-14
Agriculture 79217.81 84606.24 92915.67 109.82 107398.96 253811.00
Non-farm
Sector 72161.12 172595.48 138181.30 80.06 97446.09 234569.00
Other
Priority
Sector 169062.02 104767.27 156987.01 149.84 213153.65 335670.00
Total 320440.95 361968.99 388083.98 107.21 417998.70 824050.00
Ach.=Achievements
15.8 The achievements of the credit planning during the Year 2011-12 exceeded the
ground level targets. As against ground level targets of ` 361968.99 lakh, the
achievements were recorded at ` 388083.98 lakh, i.e., 107.21%. Highest achievements of
149.84% were posted regarding other priority sector. However, shortfalls were in non-
farm sector. In percentage terms, 109.82 % achievements have been recorded in the
agriculture credit.
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Sector-wiseCredit Potential estimatedfor theyear 2013-14
Agriculture
15.9 Based on the district-wise PLPs, NABARD estimated credit potential of
` 824050.00 lakh for the financial year 2013-14. These estimates are 97.14 percent more
than the credit potential envisaged for the year 2012-13. The broad sector-wise potential
under priority sector outlined in table No.4 above indicates that the potential estimated
under agriculture sector is ` 253811.00 lakh i.e. 30.80% of total. The utilization of this
credit potential would help augment agriculture production and productivity, assured
remuneration from such production is very important for development of agriculture.
NonFarmSector
15.10 J&K offers huge potential for promotion and development of non-farm sector
activities, particularly in rural areas due to its physical, geographical and climatic
conditions. Jammu region offers potential for agro-processing, fruit processing,
handicrafts, cottage industry etc. Kashmir Region has good scope for fruit preservation,
dehydration and processing. Saffron cultivation has a lot of potential and prospects. It is
famous world over carpet weaving, woodcarving, embroidery, shawl weaving etc. are the
other important activities which can be undertaken by the people in the State. The cold
desert of Ladakh offers good potential for dehydrated vegetables, a price of processing of
fruits and sea buckthorn apart from traditional crafts. The non-farm sector credit potential
identified by NABARD for the year 2013-14 amounts to ` 234569.00 lakh constituting
28.47% of total credit potential in the state. The estimated credit potential is more than
double the previous years position.
Other PrioritySector
15.11 The potential for development of the sector depends on the generation of
effective demand, which in turn depends on the purchasing power of the people. Taking
into consideration the above mentioned parameters along with trend analysis and other
factors affecting territory sector credit, a total credit potential of ` 335670.00 lakhs has
been envisaged in the J&K for the year 2013-14. The other priority sector credit potential
constitutes 40.73% of total credit assessed for 2013-14.
NABARDI nitiativesfor Development of FarmSector inJ &K State
Farmers ClubProgramme
15.12 NABARD introduced the concept of Vikas Volunteer Vahini (VVV) programme
in November 1982 to propagate the philosophy of Development through Credit with
the help of group of farmers organised for the purpose. The programme was later
rechristened as Farmers Club Programme (FCP) in 2005. By end 31 March 2012
NABARD facilitated formation of one lakh Farmers Clubs across 29 states through
institutional and other agencies. NABARD achieved the corporate goal and the milestone
of formation of one lakh Farmers Club by the end of XI five year plans i.e. by 31
st
March 2012.
15.13 The mission of Farmers Club Programme is to ensure development of rural
areas through credit, awareness creation, capacity building and technology transfer.
Currently, their role has been enlarged and expanded to enable them to act as Business
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Facilitators/Business Correspondents for banks, formation of Self Help Groups, Joint
Liability Groups and Producer Groups/Companies. Federations of Farmers Clubs
undertake community related works, assume the role of a leader and act as NGOs. Any
grass-root/other agency including bank branches can form Farmers Clubs with
NABARDs support. NABARD assistance will be available in the form of grant
@ ` 10,000/- per club per annum for a period of 3 years. Progress made on this front
indicates that during the Year 2012-13(as on December 2012), 93 farmers clubs were
launched taking the total number of clubs to 376 in the state as on December, 2012. Bank
group-wise details indicate that regional rural banks promoted highest number sharing
65% clubs, followed by commercial banks with 19% clubs and 16% clubs of co-operative
banks. In the district-wise distribution of these clubs Kathua emerges to be the 1
st
district
with a number of 76, followed by Udhampur district with 62 and Jammu with 59 clubs.
While 1 farmers club was launched each in Poonch and Ganderbal districts no any such
club has been recorded in case of 8 districts viz. Shopian, Leh, Kargil, Doda, Ramban,
Kishtwar, Budgam and Srinagar. District-wise information of farmers club is given here
under in Table No.5
TableNo.5: Positionof FarmersclubsinJ &K ason31-12-2012bydistricts
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KisanCredit Card(KCC) SchemeinJ ammuandKashmir
15.14 The Kisan Credit Card (KCC) Scheme, introduced in 1998-99 has eased the flow
of credit to farmers. Since the inception of the Scheme, 124365 KCCs were issued by
banks with sanctioned credit limit of ` 960.46 crore as on March 2012. Of the cumulative
124365 KCCs, 63824 cards sharing 51.32% were issued by commercial banks followed
by 57165 cards (45.97%) issued by regional rural banks and 3376 cards which account
for 2.71% by co- operative banks. Of the total amount of ` 960.46 crore, share of
commercial banks is 62.94%, followed by 35.87% share of regional rural banks and co-
operative banks share only 1.19%. Agency wise Kisan Credit Cards issued and amount
sanctioned since inception up to March 2012 is given in following table no.6
TableNo.6: KisanCredit Cardsissuedandamount sanctioned
Agency
KCC
issued
(No.)
Share%
Amount
sanctioned
(` Crore)
Share%
Commercial banks 63824 51.32 604.50 62.94
Regional rural banks 57165 45.97 344.49 35.87
Co-operative Banks 3376 2.71 11.47 1.19
Total 124365 100.00 960.46 100.00
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Task Force
RecommendationsregardingKCC Schemeareasunder:-
KCC be technology enabled, including the conversion to a smart card with
withdrawals and remittances enabled at ATMs, points of sale, and through hand
held machines. Banks need to have core banking solutions in place at the earliest,
to enable technology to benefit the farmers.
The KCC limit be fixed for five years, based on the bankers assessment of total
credit needs of the farmer for a full year, and that the limit be operated by the
borrower as and when needed, with no sub limits for kharif and rabi, or for stages
of cultivation.
Each withdrawal under KCC be allowed to be liquidated in twelve months.
Automatic renewal of and annual increase on credit limit to be linked to inflation
rate.
Financial literacy and counseling campaigns to be undertaken to increase
awareness among farmers on KCC.
Cards issued to women farmers be reported separately, and that for women
members of SHG as well as of thrift and credit cooperatives with a good savings
history be provided with specially designed credit cards by banks, with limits
linked to the value of their unpaid labour on their own farms or on farms of
relatives.
15.15 As per progress received from SLBC giving status up to June 2012, the
Agriculture Department has sponsored almost 70,000 applications of which KCCs have
been sanctioned in respect of 45,000 cases. Disbursement in more than 15,000 cases has
been reported by the SLBC. This is cumulatively more than progress made under KCC
during last 7-8 years.
WatershedDevelopment
15.16 The objective of developing watersheds is to significantly mitigate the draught
induced distress of farmers in the area. Watershed development has proved to be a
comprehensive approach to enhance productivity of dry land through conserving soil,
rainwater and vegetation. NABARD has been actively supporting watershed development
which covered 1.7 million hectares under various programmes in the country. The
Watershed Development Fund was established in NABARD with a corpus of ` 200.00
crore during 1999-2000 to replicate Watershed Development Models through
participatory mode.
NABARDI nitiativesfor NonFarmSector Development
15.17 NABARD is taking a number of initiatives to help rural people to earn/increase
their income level. To provide these services NABARD takes the help of local based
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NGOs to impart skills to the rural people. These NGOs pass on skill in local language
due to which the rural people freely interact with the NGOs. These initiatives help in
creating employment opportunities locally and checking the migration of rural youth to
urban areas in search of jobs.
The following initiatives are being undertaken.
Skill Development Programme(SDP)
15.18 The SDP specially focuses on skill upgradation of educated and uneducated
youths including matured SHGs members enabling them to work as wage earner or
undertake micro enterprises. Under this programme 9 SHGs were sanctioned by
NABARD during 2010-11 and imparted training to 355 persons in J&K in the activities
like soft toy making, cutting and tailoring, mobile repair, computer training, embroidery
& sozni work etc. Encouraged by the successful results of the programme, during the
year 2011-12 NABARD sanctioned 28 SHGs and provided financial assistance to various
agencies for imparting training to 595 persons in different activities facilitating them to
have access on gainful self employment and skilled wage employment opportunities. This
would result in improvement of their livelihoods.
Rural EntrepreneurshipDevelopment Programme(REDP)
15.19 NABARD has been supporting Rural Entrepreneurship Development
Programme (REDP) since early nineties as proven tools for generating self employment
opportunities in the rural areas. The rural entrepreneurship development programme aims
at to assist the rural educated youth to take up income generating economic activities in
the rural areas and augment employment opportunities for others as well. The programme
is earmarked for inculcating the sense of pursuing the potential based entrepreneurial
activities in rural areas. Under this programme only those economic activities are to be
taken up which have potential in the rural areas with available resources. During the year
2011-12, 19 REDPs were sanctioned by NABARD to train 579 persons to facilitate
laying of rural enterprises.
MicroFinance
15.20 RBI guidelines to banks for mainstreaming micro-credit and enhancing the
outreach of micro credit providers, inter-alia stipulated that micro credit extended by
banks to individual borrowers directly or through any intermediary would henceforth be
reckoned as part of their priority sector lending. However, no any particular model was
prescribed for micro finance and banks have been extended freedom to formulate their
own model(s) or choose any conduit/intermediary for extending micro-credit.
15.21 Though there are different models for purveying micro finance, the Self-Help
Group (SHG) Bank Linkage Programme has emerged as the major micro finance. This
linkage programme is being implemented by commercial banks, regional rural banks and
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co-operative banks. To extend financial assistance to the deprived sections through
informal Self Help Groups (SHGs) has now blossomed into a monolith micro finance
initiative. This mode is recognized as a decentralized, cost effective and fastest growing
micro finance initiative. It enables the poor households access to a variety of sustainable
financial services from the banking system by becoming members of the SHGs. The
linkage with banks has provided members of the groups the facility of not only pooling
their thrifts/ savings and access to credit from the banking system but also created a
platform through which they could launch a number of livelihood initiatives and also
facilitate the empowerment process. Over the years the programme witnessed great
confidence among the financing banks to own up it as a potential business model
thereby extending its outreach continuously. Under the SHG bank linkage programme
421 SHGs have been formed during the year 2012-13 up to the quarter September, 2012
taking the cumulative number of SHGs to 7874 as on September, 2012.
Savings/credit linkedself helpgroups
15.22 During the year 2012-13(September 2012), 364 savings linked Self Help Groups
(SHGs) were supported by NABARD taking the commutative number to 6513 as on
September, 2012. Similarly the commutative number of credit linked SHGs has reached
5936 with an addition of 270 SHGs during 2012-13 (September 2012).
15.23 Agency wise breakup indicates that out of total 7874 SHGs share of commercial
banks is the highest i.e. 66% and 34% share is claimed collectively by regional rural
banks and co-operative banks. In cumulative position of loans disbursed as on September
2012, commercial banks again emerge with major share of 65%. Remaining 35% share is
claimed by the other two bank groups put together. Bank group-wise information on
SHGs with other particulars is given in following table No.7.
TableNo.7: Self HelpGroups
Particulars/Year
Agencywisemagnitude
Commercial
banks
Regional
rural banks
Co-operative
banks
Total
I. SHGs formed (No)
a)2012-13 (9/12) 278 95 48 421
b)Cumulative No. 5244(66) 1552(20) 1078(14) 7874(100)
II. SHGs Savings linked(No)
a)2012-13 (9/12) 221 95 48 364
b)Cumulative No. 3902 1552 1059 6513
III.SHGs credit linked(No)
a)2012-13 (9/12) 158 72 40 270
b)Cumulative No. 9/12 3735 1367 836 5936
IV. Loans disbursed (Amt. lakh `)
a)2012-13 (9/12) 89.48 79.42 26.96 195.86
b)Cumulative position as on
(9/12)
2573.23
(65) 1157.41 (29)
229.08
(6)
3959.72
(100)
Figuresinbracketsindicatepercentageshare.
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15.24 NABARD has been instrumental in facilitating various activities under micro
finance sector at the ground level involving all partners i.e NGOs, bankers, socially
spirited individuals, other formal and informal entities and even Govt. functionaries. This
is done through training and capacity building of partners, promotional grant assistance to
Self Help Promoting Institutions (SHPI).
Statusof Self HelpGroups(SHG)
15.25 During the year 2011-12, 1013 Self Help Groups have been provided bank loan.
As on 31-03-2012, cumulative number of SHGs provided bank loan has reached to 5543.
Total number of NGOs functioning as Self Help Promoting Institutions (SHPI) with
NABARD grant in the State has reached to 32 as on March 2012.
NABARDsinitiativesfor expansionof SHG ProgrammeinJ &K
15.26 A multipronged approach has been initiated by NABARD for expansion of SHG
Programme in the state.
The following major initiatives are worth noting on this front.
NABARD conducted various SHG orientation awareness programmes for NGOs,
SHG members, Bankers and Govt. officials.
Various workshops for bankers and Govt. departments, for bank linkage SHG are
also being conducted.
Exhibitions for display and sale of products prepared by SHG members are also
organized / sponsored by NABARD.
NABARD organizes capacity building programmes for the benefit of SHG
members enabling them to setup income generating units.
To organize training and capacity building programmes for NGOs and bankers
enabling them to act as Self Help Promoting Institutions (SHPI).
To develop liaison with the state Govt. to rope Govt. machinery especially ICDS
workers for effective promotion of SHG formation.
Three projects have been sanctioned by NABARD for 3 districts, i.e., Poonch,
Doda and Kupwara which have been declared backward by Govt. of India for
formation of Women Self Help Groups (WSHGs).
Financial I nclusion
15.27 The main objective of financial inclusion is to extend financial services to the
hitter to uncovered population. Financial inclusion has a key role in the financial sector
and is also an important determinant of inclusive growth. A sizeable section of
population, particularly the low income groups continue to remain excluded from the
opportunities and services provided by the financial sector. As a result of which the gains
of the rapid growth witnessed in the economy does not reach to the population in an
equitable manner. As per the census, 2011, the total population of the state is 12548926
out of which 73% is the rural population. Although the banking sector expanded the
branch network significantly but the inequalities in the banking services still exist. Some
districts are historically better served by banks, however, the banking development in
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some other districts is lagging far behind in the district-wise comparison. The inequalities
in the availability of banking services can be found by applying some indicators (i)
Dependence of population per branch varied from 5000 to 17000. The top five ranks
regarding average population coverage per bank branch are occupied by Jammu, Leh,
Samba/ Srinagar, Baramulla and Kathua districts. At the other end of the spectrum are
the relatively poor served 14 districts which are above the state average of 9000 people
per bank branch. (ii) The credit deposit ratio varied from 14.83% to 60.97% as on March,
2012. The best performer 5 districts in terms of CDR as on March, 2012 having above
50% CDR were Shopian, Pulwama, Ganderbal, Bandipora and Samba and the relatively
with low CDR are the 5 districts viz Kishtwar, Kargil, Leh, Poonch and Doda. (iii) The
per capita advances varied between ` 42848 and ` 3927. The top level 5 districts in terms
of per capita advances are Srinagar, Jammu, Samba, Leh and Baramulla and the bottom
level districts on this front are Poonch, Kishtwar, Doda, Ramban and Kupwara. Similar
is the case of per capita deposits varying between ` 115601/ ` 106758 regarding
Srinagar/ Jammu districts respectively and ` 12637 in Kupwara district as compared to
state average of ` 42925. It is pertinent to mention that even among the top level districts
there are also huge variations in terms of per capita advances and deposits together with
other indicators. The banking indicators given in following table No.8 reveal slow
progress of banking and are, therefore, indicative of low level of financial outreach in
some districts.
TableNo.8Major bankingindicatorsasonMarch, 2012.
District
Total bank
branches
3/2012
Populationper
bank branch
(000) 3/2012
CDR
(%)
3/2012
Per capita(Rs)
3/2012
Deposits Credits
Anantnag 98 11 39.96 21056 8413
Kulgam 41 11 43.46 14983 6511
Pulwama 58 10 52.68 21253 11196
Shopian 21 13 60.97 16251 9908
Srinagar 173 8 37.07 115601 42848
Ganderbal 34 9 51.79 19930 10321
Budgam 52 14 45.54 14366 6542
Baramulla 126 8 48.78 23313 11372
Bandipora 27 15 50.36 13918 7009
Kupwara 70 13 41.70 12637 5270
Leh 24 6 16.12 80193 12927
Kargil 15 10 15.54 40363 6274
Jammu 312 5 30.81 106758 32894
Samba 57 6 50.23 45383 22798
Udhampur 59 10 28.97 27062 7840
Reasi 35 9 25.84 31406 8117
Doda 42 10 17.24 23844 4112
Ramban 24 12 19.49 21982 4285
Kishtwar 14 17 14.83 26777 3971
Kathua 81 8 32.22 34455 11101
Rajouri 57 11 22.15 25326 5609
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TableNo.8Major bankingindicatorsasonMarch, 2012.
District
Total bank
branches
3/2012
Populationper
bank branch
(000) 3/2012
CDR
(%)
3/2012
Per capita(Rs)
3/2012
Deposits Credits
Poonch 29 17 17.04 23056 3927
J &K 1449 9 34.36 42925 14750
15.28 There is, therefore, need to accelerate for spread of banking in the less
performing districts to make them compatible with the State. This tady progress in the
banking development in these districts may, however, be attributed to the geographical
peculiarities also. Banking sector is taking effective steps by formulating specific
programmes for enhancing its presence in the remote and far flung areas.
15.29 The Expert Committee Report on financial inclusion setup under the
chairmanship of Dr. C Rangarajan categorized J&K in 51-75% exclusion category. The
committee defines financial inclusion as the process of access to financial services,
timely and adequate credit needed by vulnerable groups such as weaker sections and low
income groups at an affordable cost. As on March, 2012, Banking infrastructure of the
state consisted of 1449 branches comprising of 358 branches of 21 nationalized banks,
543 branches of 5-private sector commercial banks, 304 branches of 2 regional rural
banks and 244 branches of 10 central/ state Co-operative banks.
15.30 Financial inclusion strides towards a more inclusive growth by making available
financing to the poor and vulnerable groups. The 12
th
five year plan focus on financial
inclusion for inclusive growth.
Steps taken by NABARD J&K relating to financial inclusion are as under:-
i. Flex boards on financial inclusion are being installed by NABARD in all districts
of J&K under financial literacy drive.
ii. Awareness programmes on financial inclusion/ financial literacy/ smart card
distribution are being conducted on regular basis
iii. J&K Grameen bank has been sanctioned 45 awareness programmes on financial
inclusion/ financial literacy with financial assistance of ` 12.15 lakh.
iv. NABARD is creating awareness among rural masses through advertisement on
financial inclusion on radio.
v. Two capacity building programmes have been sanctioned to J&K Grameen bank
with financial assistance of ` 0.30 lakh.
15.31 Out of 795 villages having population of over 2000 allocated by State Level
Bankers Committee, banking services have been provided to 784 villages as on
31.10.2012, Bank wise number of villages allocated viz-a-viz villages covered under
financial inclusion programme is abstracted below.
Nameof theBank
Number of Villages
Allocated
Coveredupto
Oct., 2012
Un- Covered
J&K bank limited 536 525 11
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Nameof theBank
Number of Villages
Allocated
Coveredupto
Oct., 2012
Un- Covered
State bank of India 95 95 -
Punjab National bank 34 34 -
J&K Grameen bank 95 95 -
Ellaquai Dehati bank 35 35 -
Total 795 784 11
15.32 Due to lack of connectivity and basic infrastructure 11 residual villages stood
uncovered by J&K bank limited. All other banks achieved 100% progress in this regard.
15.33 In the second phase of the financial inclusion programme banking services are
being provided to 1393 identified unbanked villages in the population segment of 1000-
2000. Out of these 1393 villages, banks have covered 600 villages as on 31-10-2012 with
a number of 47787 accounts. In percentage terms achievements were 43%. While Punjab
national bank has not covered any village out of its 82 allocated villages. The highest
progress of 62.50% achievement has been made by Ellaquai Dehati bank followed by
62.12% regarding J&K Grameen bank. The bankwise progress is given as under:-
Nameof theBank
Number of Villages No. of accounts
openedtill
31-10-2012
Allocated Covered
Coverage
(%)
J&K bank limited 1093 504 46.11 20763
State bank of India 112 30 26.79 12504
Punjab National bank 82 - - -
J&K Grameen bank 66 41 62.12 9722
Ellaquai Dehati bank 40 25 62.50 4798
Total 1393 600 43.07 47787
15.34 To provide better access to financial products and services for reducing risks and
enabling livelihood for the poor especially the scheduled caste and scheduled tribes,
minorities and the displaced, financial inclusion fund has been established in NABARD.
15.35 Since 12
th
five year plan give lot of emphasis on financial and social inclusion,
for ensuring inclusive growth, the role of NABARD as on of the stakeholder is very
important for achieving laid down objectives
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