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Sayeed asks banks to improve lending to agri, SMEs

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Mufti Mohammad Sayeed

Srinagar: Jammu and Kashmir Chief Minister Mufti Mohammad Sayeed today called for improving lending by premier banks to boost the state’s low Credit Deposit Ratio (CDR) and bring it at par with RBI’s stipulated level of 60 per cent. “The premier banking institutions of the country need to lend more to enterprises, especially in the agriculture, craft and small and medium enterprises (SME), keeping in view the low CDR of 46 per cent in the state,” Sayeed said speaking at a luncheon meeting with the RBI Governor Raghuram Rajan here.

Heads of leading premier banks of the country including HDFC, ICICI, PNB and the Canara Bank attended the special State Level Bankers’ Committee (SLBC), convened by the RBI Governor at SKICC in the summer capital, pursuant to his commitment made to the Chief Minister earlier this year.

Finance Minister Haseeb A Drabu, Advisor to the Chief Minister Prof Amitabh Mattoo, Chief Secretary B R Sharma, Principal Secretary to Chief Minister B B Vyas and Commissioner Secretary, Finance, Navin Chaudhary, also attended the meeting, an official spokesman said.


The Chief Minister also raised with RBI the issue of recapitalisation plan of the three cooperative banks at Jammu, Anantnag and Baramulla, which are facing threat of getting de-licensed by the RBI. The state has proposed approaching NABARD to advance the state share of Rs 139 crore as loan, paving way for capital infusion of the three cooperative banks from the RBI.