Even as J&K Bank is owned by the J&K Government, it’s not run by the government. It’s run by the bank management under the able leadership of the Chairman and Chief Executive Officer (CEO) Mushtaq Ahmad and its management team. The government is vigilant to see that there is no political interference in the affairs of the bank.
This was stated by the Chief Minister, Omar Abdullah, while performing electronic inauguration of 111 delivery points of the J&K Bank here during a mega-event organised at Jammu University. It was a historic occasion when the bank at the click of a button threw open 41 Business units and 70 ATMs across various geographies of J&K State.
Finance Minister Abdul Rahim Rather, Medical Education, Higher Education and Sports Minister R. S. Chib, former minister G. M. Saroori, Board of Directors of the bank A. M. Matto, M. I. Shahdad and Vikrant Kuthiala, Chairman Chenab Valley Power Corporation M. Y. Khan, senior functionaries of the state government and the bank were present on the occasion.
Chief Minister Omar Abdullah while appreciating performance of the bank and its focus on the development of J&K economy took a dig at the public sector and private sector banks.
“I have grievance with other banks – nationalised and new generation private sector banks. They are mopping up money through deposits, but don’t support in the economic development of the state. Their credit delivery to various sectors of our economy like agriculture, horticulture, tourism, handicrafts sector and other potential sectors has been very poor,” said the chief minister and asked these banks to make money available to core sectors of the state’s economy.
“We are not positioned to have a huge industrial base, but the strength of our economy is micro, small and medium enterprises,” he added.
He expressed his belief that J&K Bank, which competes with any other best bank in the country, should establish its Business Units beyond the shores of the country.
Earlier, J&K Bank Chairman and Chief Executive Officer, Mushtaq Ahmad, in his welcome address gave a detailed account of the performance of the bank. While giving details of the expansion plan, the chairman said that with the opening of today’s delivery points, the number has gone up to 1107 delivery points, which includes 601 business units and 506 ATMs. For the first time in the history of the bank, we have opened 70 new Business Units (B/U) and 177 ATMs in such a short span of time i.e. from January 2011 till date.
“In J&K state we have 931 delivery points, i.e. 494 B/Us and 437 ATMs. We have a plan to open 125 B/U in J&K and 15 such centres outside the state in the next financial year.
Mushtaq further said that around 3000 villages have been found unbanked or under banked. “Even if we open one business unit for 10 villages, which means there is a scope of opening of 300 branches in the next 2-3 years,” he said.
On performance front, the chairman highlighted the bank’s contribution to the priority sector in J&K. He said, “Against annual target of Rs.3,619.69 Crore for all banks under Priority Sector all banks disbursed Rs.2870.60 crore during the three quarters ended Dec., 2011. J&K Bank alone has disbursed Rs.2, 097.45 Crore against the target of Rs.1,492.44 Crore, thereby achieving 141% of its annual ACP target, which accounts for an achievement of 73% of the total priority sector credit disbursed by all banks in the State. Out of total loan book of all banks in J&K, which is Rs.18, 000 crore, J&K Bank’s contribution is Rs.12, 000.”
The bank is also poised to register a business turnover of Rs.85, 000 crore and Rs.800 crore profit at the end of the current financial year.
While detailing out corporate social responsibility aspect of the bank, the chairman said that the bank has been extensively contributing to the welfare of the society through various sector. However, he said, ‘the most important CSR in the context of J&K State is reviving economic activity leading to more employment opportunities. We have created scope of employment and recently we have appointed 1500 young talented boys and girls from various geographies of the state.’
The chairman announced that the bank would be inviting applications for 300-400 posts of Relationship Executives in the next two months.
The chairman also said that to expand its credit activities at large scale, the bank would need capital infusion which has to be planned well ahead.
The finance minister, Abdul Rahim Rather in his address while lauding the performance of the bank said that the kind of network expansion being done by the bank is an important step towards the financial inclusion.
“After we adjusted the overdraft of Rs2300 crore, many people had expressed their apprehension that the health of the bank would be adversely affected. But the bank management under the leadership of Mushtaq Ahmad dispelled all those apprehensions and registered huge appreciation in the business and profitability of the bank. In fact, the money which we returned to the bank was efficiently pumped into various sectors of the state which were credit starved,” said the finance minister.
He asked the banks to improve their credit-deposit ratio and lend liberally to the core sectors like agriculture etc. he cautioned the banks that low CDR remains a concern which has to be pushed up.
The function concluded with vote of thanks, which was presented by the Banks’ Director, Vikrant Kuthiala. He thanked the hon’ble chief minister, honb’le ministers, distinguished guests, media and others for gracing the occasion.