1

State Level Bankers’ Committee

70th Meeting

Convenor : J&K Bank

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Overview on J&K Economy Credit Plan Performance: Aggregate Analysis: First three quarters 2006-2007Disaggregated Analysis by: Sectors Spaces Service providers Sponsored schemes

Structure of Presentation:

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Overview of Economy

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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 16,190 (Rs 23,222)

Population BPL 3.48% ( 26.10%)

Literacy 55.52% ( 64.84%)

Unemployment rate : 4.21 ( 3.09)

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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

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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)

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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

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State Income:

6973

8858

1218213824

1659718009

20530

5500

4000

6000

8000

10000

12000

14000

16000

18000

20000

2200019

94-9

5

1996

-97

1998

-99

2000

-01

2002

-03

2004

-05

2005

-06

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NSDP : Size

4000

9000

14000

19000

24000

1994-95 1996-97 1998-99 2000-01 2002-03 2004-05 2005-06

Current

Constant

10

3

3.5

4

4.5

5

5.5

6

Economic Growth: Trends

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State Income: Composition

Tertiary53%Primary

34%

Secondary13%

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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

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Credit Plan and Performance

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Aggregative Analysis : Three Quarters

Total Credit off-take = Rs 1221 croreOf which Non Priority = Rs. 296 crore (24 %) Priority = Rs 925 crore (76%)

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Credit to Priority SectorTotal off-take = Rs 925 crore Agriculture :Rs 153 CrIndustry :Rs 245 Cr Services :Rs 527 Cr

Percentage Agriculture : 16.5%Industry : 26.5% Services : 57 %

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Performance Review• Annual Action Plan for Priority sector Lending FY07: • Financial Terms

– Target : Rs 1444.58 Crores– Achievement: Rs. 924.87 Crores– Percentage Achievement: 64 % (87% PY)

• Physical Terms – Target : 1,79,932– Achievement: 51,574– Percentage Achievement: 29%( 33% PY)

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Credit by Sector Rs Crores

AchievementRs.153.42 34

Rs.244.48 73

Rs.526.96 81

Rs. 924.86 64

Agriculture Rs.457.25

Industries Rs.334.35

Services Rs.652.97

Total Rs.1444.57

Targets %age

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Credit Composition: Intentions Vs Reality

AGRICULTURE17%

INDUSTRY26%

SERVICES57%

Agriculture32%

Industry23%

Services45%

Targets Actuals

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Average Ticket Size

Agriculture Rs.39000Industries Rs.157000

Services Rs.152000

Total Rs.80000

Agriculture Rs.75000

Industries Rs.636000

Services Rs.193000

Total Rs.179000

Targets Actuals

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Credit By RegionAbsolutes and Priority Sector target achievement(%)

Region Priority Non-Priority

Total

Kashmir 438.82 (60%) 247.94 686.76

Jammu 468.22 (68%) 44 512.22

Ladakh 18.41 (70%) 3.90 22.31

Total 925.45 (64%) 295.84 1221.29

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Credit By Region: Targeted off-take Vs Actuals

Kashmir47%

Jammu51%

Ladakh2%

Kashmir51%

Jammu47%

Ladakh2%

Target Actual

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Sector-Space Matrix Rs in crores

Agriculture Industry Services

Kashmir 109.95 51.23 277.04

Jammu 43.01 189.92 235.28

Ladakh 0.45 3.32 14.64

Total 153.41 244.47 526.96

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Achievement Matrix %

Agriculture Industry Services Total

Kashmir 38 43 84 60

Jammu 26 89 77 68

Ladakh 9 121 77 70

Total 34 73 81 64

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Credit by Institution Rs in Crores

Institution/s Disbursals Achievement%

J&K Bank 388.26 64

SBI 125.45 56PNB 147.04 108Other Comm. Banks 114.11 90

Coop. Banks 82.32 46

RRBs 66.36 41Other FIs 11.13 12

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Credit By Institution (%)

JK Bank42%

SBI14%

PNB16%

Other Comm Banks12%

Coop Banks9%

RRBs7%

Other Fis0%

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Sponsored SchemesCredit disbursement through Six Major schemes

SGSY, 13.45

PMRY, 14.87

JKSES, 24.75

SJSRY, 2.46

SC/ST/OBC, 1.45

KVIC, 14.73

•Rs In Crores

SGSY 31%

PMRY 38%

JKSES 32%

SJSRY 12%KVIB 34%

SC/ST 18%

•Target Achievement

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Sponsored Schemes:Credit History---JKB Experience

Scheme Balance Outstanding NPA NPA %

SGSY 21.93 4.70 21.41

PMRY 35.43 11.54 32.58

JKSES 49.62 10.25 20.65

SJSRY 9.91 4.15 41.89

SC/ST 2.76 1.14 41.41

KVIB 10.21 0.54 5.32

OTHERS 19.71 4.08 20.70

TOTAL 149.57 36.41 24.43

•As on 31.03.2006 Rs in Crores

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Issues:• J&K state under-serviced in credit• Huge inter-regional variations in banking and other

economic infrastructure• Financial targets met better than physical targets• Realism about ticket size of lending or• Penetration of lending• Target mix at variance with actual causing distortions

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Thank You