Omar underlines J&K Bank’s role in economic transformation

Mushtaq highlights Bank’s achievements

Jammu, Mar 17 (VOS): Underlining the role of strong and vibrant financial institutions in the development of core economic sectors particularly Micro, Small and Medium Entrepreneurship (MSME) in the State, Chief Minister, Omar Abdullah Saturday asked the Jammu and Kashmir Bank to plough investment in these areas extensively to give fillip to the economic prosperity and progress of the State.

The Chief Minister said that Jammu and Kashmir Bank has a remarkable role in encouraging local entrepreneurs to venture upon and flourish the economy of the State.

“Local industrial units function under all circumstances. Their business is not dependent upon the packages and tax concessions. Local industrialists do not close their units with the closure of special packages, as such, contribute regularly in economic growth and development of the State”, he said adding that this sector should receive focused attention while welcoming the outside investors in the State.

Inaugurated 111 Business Units and ATMs of Jammu and Kashmir Bank through electronic device at a function at Jammu University here, the Chief Minister said that investment and liberal lending by Jammu and Kashmir Bank to the handicrafts, tourism, agriculture and allied sectors is also of immense importance to enhance economic activities and generate employment.

Referring to the location disadvantage of Jammu and Kashmir State for heavy and large industries, the Chief Minister underlined the importance of focusing on SMSE, agriculture and allied sectors. “The tourism occupies important position in our economy and flow of tourists to all the three regions of the State is remarkable. More than one crore pilgrims visit to Shri Mata Vaishno Devi annually. If we are able to convert one percent of these to normal tourists, we would be making significant dent in the economy and employment generation in this sector”, he said identifying the role of Bank in the growth and development of tourism industry in the State.

The Chief Minister said that Finance Minister, Abdul Rahim Rather has given the State best ever budget where under greater focus has been given to core sectors especially agriculture and allied activities. He asked the Jammu and Kashmir Bank to invest in this area and contribute in the efforts of the government in bringing about remarkable change in the development and growth of agro-based economy in the State.

 “The State Government owns Jammu and Kashmir Bank but it is my considered opinion that government should not run the affairs of the Bank as it would prove fatal to its functioning and growth”, he said adding that he is keen to keep Jammu and Kashmir Bank apolitical and without any interference from the government. “We want Jammu and Kashmir Bank to be a real friend of the people and provide them liberal financial support to raise business and start economic ventures”, Omar Abdullah maintained and said that the support from the government to Jammu and Kashmir Bank will continue.

Omar said that doing away with the practice of getting overdrafts from the Bank by the respective State Governments; his Government shifted to the new initiative of ‘ways and means’ and provided Jammu and Kashmir Bank an opportunity to strengthen its edifice by investing the overdraft money in various business activities in the State. “Normally any change in routine is not welcomed but when we discussed this initiative with the Chairman and top management of Jammu and Kashmir Bank, we received encouraging feedback and shifted to ‘ways and means’ mechanism from the overdraft procedure”, he said adding that political opponents of the government also tried to create hype in this regard circulating the concept that this initiative would weaken the Bank.

“But at the end of the day we found it yielding useful results for the growth and development of the Bank. This initiative not only helped the Bank to strengthen its foundation and business avoiding reliance on government but helped it to broad base its reach to the people across the State”, he said referring to the growth and development shown by the Bank since the introduction of the new initiative by the government.

Appreciating the Chairman and the management of Jammu and Kashmir Bank for running the affairs of Bank in most professional and efficient manner, the Chief Minister lauded the Bank for showing remarkable growth and development in business and lending under the new initiative. “You have not only strengthened your position but expanded your business”, he said asking the Bank to work for making Jammu and Kashmir Bank an International Bank. “You are already one of the best banks in the country and your new target should be to achieve the status of an International Bank for which you possess good scope than other banks”, he elaborated.

Speaking on the occasion, Minister for Finance, Abdul Rahim Rather appreciating the development and financial health of Jammu and Kashmir Bank stressed on enhancing the credit flow from the Bank to the ground particularly in agriculture sector.

“Though your performance in lending advances has been praise worthy, yet there is scope and need to focus on primary sector of economy i.e. agriculture”, he said asking the Bank to concentrate more attention on this sector. He said the next year’s budget has made agriculture a tax free sector which should serve a message to Jammu and Kashmir Bank and other financial institutions regarding the keenness of the government for the holistic and inclusive development of agriculture in the State.

The Finance Minister lauded the efforts of Jammu and Kashmir Bank for making investment in agriculture sector contributing 63 percent of the total investment made by all banks in this sector emphasizing the need for added attention to ensure sustained growth and development and help generation of employment.

The Finance Minister also appreciated the Bank for contributing Rs. 3200 crores out of overall lending of Rs. 4450 crore by all banks registered in the State this year. “This shows 72 percent contribution from Jammu and Kashmir Bank which is not only encouraging but praise worthy”, he said and also highlighted the profit of about of Rs. 600 crores registered by the Bank during current financial year by the end of December 2011 against Rs. 475 crores during the last financial year in the same period.

The Finance Minister said that the scope of enhancing lending and increasing investments in core sectors of economy including agriculture and allied sectors would be discussed in detail in SLBC meetings.

Speaking on the occasion, Chairman, Jammu and Kashmir Bank, Mushtaq Ahmad said that Jammu and Kashmir Bank is set to achieve the business target of Rs. 85,000 crores by the end of this fiscal while the profit is likely to be Rs. 800 crores. He said Bank strives to achieve Rs. 100,000 crores business by the end of 2012-13 and register a profit of Rs. 1000 crore.

Mushtaq Ahmad said that by e-inauguration of 111 Business Units and ATMs today by the Chief Minister, the number of Bank branches has gone to 602 of which 494 are in the State and the number of ATM went up to 506. He said today’s inauguration of Business Units included 41 new branches and 70 ATMs across the State.

The Chairman said that the Bank has a target of establishing another 125 Business Units during the next fiscal and adding 300 branches in next two to three years. He said that the Bank is also providing job opportunities to meritorious and efficient youth adding that during the current fiscal, about 1500 youth have been provided jobs at various levels. “We intend to recruit 300 to 400 Relationship Executives in next year”, he added.

Referring to the cooperate social responsibilities of the Bank, the Chairman said that besides contributing in the growth and development of economy of the State by investing and lending loans to business persons and entrepreneurs, the Bank is also establishing parks and contributing in medical welfare of the people.

Minister for Health and Medical Education, R. S. Chib, Legislator G. M. Saroori, Economic Advisor to Government, Jaleel Ahmad Khan, Principal Secretary R&B, K. B. Agarwal, Vice Chancellor, Jammu University, Chairman Chenab Power Company, M. Y. Khan were present on the occasion among others.