Ashiq Hussain
SRINAGAR, Oct 8: With violence waning and economic activity gaining momentum in Jammu and Kashmir, authorities have again pushed banks for an increase in credit flow to farmers and youth entrepreneurs of the state.
A month after state’s finance minister cautioned local private banks against flight of capital from the State, Chief Minister Omar Abdullah on Monday urged financial institutions to enhance credit flow to help economic growth and generation of employment avenues for youth.
“This would boost agriculture production and encourage entrepreneurs to launch independent livelihood earning ventures,” a government spokesman quoted Abdullah as saying after inaugurating a branch of the Jammu and Kashmir Bank branch in Ganderbal district, north-east of Srinagar.
The 23-years of conflict between state forces and militants left the state’s economy stagnant with most of the banks, except state owned J & K Bank, leaving valley as insurgency erupted in 1989.
But as situation constantly improved for the past five years, many financial and corporate institutions made their foray into the valley. Nearly a dozen banks, including HDFC, AXIS, ICICI and Punjab National Banks, are operational in Kashmir, most of them, however, focusing only on deposits.
“Agriculture and allied sectors are thrust areas and easy advances to farmers are imperative for timely conduct of agricultural practices required for good yield,” Omar said. “The banks need to fulfill their corporate sector responsibility.”
State economy particularly in Kashmir is agriculture-centric followed by cottage industry like handicraft. Tourism contributes five percent to the state’s total GDP. There is about 10,000-crore rupees business potential in horticulture sector, which the state wants to be tapped.
“With the growth of business and deposits there should be remarkable increase in credit flow from banks to agriculturists, traders and young entrepreneurs”, Chief Minister said while stressing on the need for striking a balance in the credit-deposit ratio.
He appreciated the efforts of J & K Bank in ‘reaching out to people and helping their economic growth’.
“The expansion of Bank branches across the State and generation of employment besides extending financial support by the Jammu and Kashmir Bank to micro, small and medium enterprises is noteworthy,” Abdullah acknowledged.
Out of Rs. 20, 000 crore loans provided by the 33 Banks operating in Jammu and Kashmir, the share of J&K Bank alone is Rs. 13,500 crore.
(The author is correspondent, Hindustan Times)
