State Level Bankers’ Committee

79th Meeting

Annual Credit Plan & performance:

FY 2009-10

Credit Plan Performance: Aggregate Analysis: FY 2009-10Disaggregated Analysis by:

Sectors Spaces Service providers Sponsored schemes

Structure of Presentation:

J&K Economy: Basics

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J&K Economy : Basic IndicatorsTotal Population 1.01 crore

Area 1,01,387 sq kms

Density 100 per sq km ( 325 )

Per capita Income Rs 20,190 (Rs 26,000)

Population BPL 3.48% ( 26.10%)

Literacy 55.52% ( 64.84%)

Unemployment rate : 4.21 ( 3.09)

Economic InfrastructureRoad Length (Kms/100SqKm) 35.71 (104.64)

Telephones/100 of population 7.76 (13.57)

Post offices/Lakh of Population 15 (14)

Bank offices per 100 SqKm 0.85 (2.18)

Average population per bank office 13000 (16000)

Hospital Beds per lakh 111

Doctors per lakh 48

Structural Indicators

• Average land holding : 0.66 hectares ( 1.41)

• Cultivators /Total workers : 42.40% ( 31.65)

• Agri Labourers/TW : 6.56% ( 26.55)

• HH workers : 6.25% (4.21%)

• Gross Area irrigated : 41% (40)

Financial Exclusion of J&K

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Basic Facts

• Incidence of financial exclusion higher than the National average

of 59 accounts per 100 adults

• In J&K only 46 people out of 100 have bank accounts

• Huge inter-regional variations

– Exclusion is more pronounced in Kupwara district at 20 bank accounts per

100 adults

– District Jammu has 77 % of urban and 69 % of rural bankable adult

population having bank accounts.

– Kargil at 87% has the highest percentage of urban adults having bank

accounts but the base is very small.

Inter regional variations• Bank Branches/Area

– Leh : 1 branch per 3000 sq km– Jammu : 1 branch per 15 kms

• Bank branches /Population– Kupwara : 20,000 people per branch – Leh : 1000 people per branch

• CD Ratio– Kargil : 11.41%– Srinagar : 81.99%

• Per Capita Income – Srinagar : Rs 17896 – Kupwara : Rs 9999

Credit gap

 • J&K accounts for 0.70 per cent of national GDP

•Yet, it absorbs only 0.30 per cent of total national credit

• Productive sectors of the economy account for less than 5 per cent of

the credit disbursed in J&K

•Comparable national average is 30 per cent

• J&K accounts for 1 per cent of India’s population

•Yet it accounts for only less than 0.2 per cent of personal credit

disbursed in India

Annual Credit Plan: Performance

Performance Review

• Annual Action Plan for Priority sector Lending FY09-10: • Financial Terms

– Target : Rs.2301 Crores (PY 1911)– Achievement: Rs.2667 Crores (PY 1938)– Percentage Achievement: 116 % ( PY 101 )

• Physical Terms – Target : 1,83,548– Achievement: 1,40,168– Percentage Achievement: 76%

Aggregative Analysis : FY 2009-10

Total Credit off-take = Rs 3866 crore

Of which Non Priority = Rs. 1199 crore Priority = Rs. 2667 crore

Credit to Priority Sector: Off-take

Total off-take = Rs 2667 crore

MAR-10 MAR-09Agriculture : Rs 547 Cr Rs. 392 CrSME : Rs 585 Cr Rs. 511 CrMicro Credit: Rs 293 Cr Rs. 144CrRetail Trade: Rs 429 Cr Rs. 557 CrEducation: Rs 51 Cr Rs. 52CrHousing: Rs 762 Cr Rs. 282 Cr

Credit to Priority Sector: YoY Growth

Overall Priority : 38%Agriculture : 40%SME : 15%Micro Credit: 103%Retail Trade: -23%Education: 0%Housing: 170%

Banking ScenarioRs in crores

s

Branches Deposit CreditOutstanding

CreditDisbursementFY10

CD Ratio

J&K

Bank

426

(34%)

23090

(60%)

12173

(71%)

2677

(69%)

53

Other

Banks

826

(66%)

15150

(40%)

4944

(29%)

1239

(31%)

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Total 1252 38240 17118 3866 4416

Credit by Sector Rs in Crores

Sector Targets Ach. %age

Agriculture Rs.545 Rs.547 100%

S. Enterprises Rs.759 Rs.585 77%Micro credit Rs.350 Rs. 293 84%

Retail Trade Rs. 467 Rs 429 92%

Education Rs. 68 Rs. 51 75%Housing Rs. 112 Rs 762 678%Total Rs. 2301 Rs. 2667 116%

Agriculture24%

S. Ent.33%

Microcredit15%

R. Trade20%

Education3%

housing5%

Credit Composition: Intentions Vs Reality

Targets

Agriculture21%

S. Ent.22%

Microcredit11%

R. Trade16%

Education2%

housing28%

•Achievement

Average Ticket Size: Intentions Vs Reality

Agriculture Rs.49,000

S. Enterprises Rs.4,12,000

Microcredit 1,70,000

R. Trade Rs.1,79,000

Education Rs.2,31,000

Housing Rs. 3,11,000

Rs 1,05,000

Rs 3,77,000

Rs 2,03,000

Rs. 1,96,000

Rs. 1,79,000

Rs 2,29,000

Targets Actuals

Credit By RegionAbsolutes and Priority Sector target achievement(%)

Region Priority Non-Priority

Total

Kashmir 1279 (125%) 514 1793

Jammu 1346 (110%) 660 2006

Ladakh 42 (76%) 25 67

Total 2667 (116%) 1199 3866

•Rs in Crores

Sector-Space Matrix Rs in crores

Agriculture Small

Enterprises

Micro

credit

Retail Trade

Education Housing

Kashmir 344 244 65 216 26 384

Jammu 201 329 217 199 25 375

Ladakh 1.00 12.00 11.00 14.00 0.22 3.00

Total 547 585 293 429 51 762

Achievement Matrix %

Agriculture

Small

Enterprises

Micro

credit

Retail Trade Education Housing

Total

Kashmir 107 90 58 86 91 942 125

Jammu 95 69 95 98 69 562 110

Ladakh 11 90 108 124 7 61 76

Total 100 77 84 92 75 678 116

Credit by Institution Rs in Crores

Institution/s Disbursals

(Pri. Sector)

Target Achievement%

Disbursals

( Non Pri. Sector)

Total

J&K Bank 1862 206 765 2627

SBI 241 79 71 312

PNB 79 41 78 157

Other Comm. Banks

152 42 110 262

Coop. Banks 158 61 73 231

RRBs 175 64 102 277

Other FIs 0.44 10 0 0.44

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Credit By Institution (%)

JK Bank

68%

SBI

8%

PNB

4%

Other Comm Banks

7%

Coop Banks

6%

RRBs

7% 0%

Sponsored Schemes Credit disbursement through five Major schemes

•Rs In Crores

SGSY 56%

PMEGP 52%

JKSES 64%

SJSRY 36%

SC/ST 19%

Total 55%

•Target Achievement

SGSY, 33.58

PMEGP, 60.61

JKSES, 63.44

SJSRY, 4.3

SC/ST/OBC, 2.42

Credit Compositions

• Excluding J&K bank there are:

– Banks: 33

– Branches: 826

– Credit Disbursement: Rs 1239 Crores

– Per Branch: Rs 1.5 Cr per year

– Credit Deposit Ratio: 32%

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Credit Scenario:

CD Ratio 44.76% Needs improvement

Priority Sector Credit 52.62% Satisfactory

Agriculture Credit 11.59% Poor

Credit to SME 18.00% Satisfactory

Advances to weaker sections 14.63% Satisfactory

Credit under DRI 0.01% Poor

Advances to women 5.42% Benchmark is 5%

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Thank You