Srinagar, Apr 06: The Chief Secretary of Jammu and Kashmir, Atul Dulloo, on Monday chaired the 18th meeting of the Union Territory Level Bankers’ Committee (UTLBC) in Jammu, urging banks to step up efforts to achieve targets under Priority Sector Lending (PSL) and expand financial inclusion across unbanked areas.
The meeting reviewed the performance of banks and line departments for the first three quarters of the Financial Year 2025–26 ending December 31, 2025. It was attended by senior officials from the UT administration, Reserve Bank of India, NABARD, J&K Bank, insurance companies, and other financial institutions.
Emphasising the critical role of Priority Sector Lending in economic and infrastructural growth, Dulloo said that no region can achieve sustainable development or job creation without adequate credit flow to key sectors. He expressed concern over the reluctance of several banks, particularly private lenders, in extending loans under PSL, especially in the agriculture sector, while commending Jammu & Kashmir Bank for its performance in this domain.
The Chief Secretary called for achieving 100 per cent credit linkage in the housing and education sectors, noting that progress in these areas has remained below expectations. He also expressed dissatisfaction over the performance of banks under the interest subsidy component of Pradhan Mantri Awaas Yojana 2.0, and stressed the need to leverage Common Service Centres to increase beneficiary coverage.
Highlighting financial inclusion as a key government priority, Dulloo directed banks to establish banking touchpoints in all unbanked Gram Panchayats. He took serious note of delays by some banks in extending services to remote and rural areas and called for better coordination with local administration to bridge the gap.
On agricultural development, he lauded the support extended by J&K Bank to Farmer Producer Organisations (FPOs) and called for greater synergy between banks and departments to strengthen credit linkage and awareness around FPO ecosystems.
Raising concerns over deficiencies in the Re-KYC process, Dulloo underscored the need for a robust compliance framework and directed banks to intensify their Re-KYC campaigns.
He further advised banks to enhance lending under government-sponsored employment schemes and emphasised the issuance of smart cards to Kisan Credit Card holders. “Banks must align with the government’s vision of employment generation by actively supporting youth entrepreneurship and ensuring access to credit for aspiring entrepreneurs,” he said.
Encouraging other banks to emulate the performance of J&K Bank in schemes such as Self Help Groups, Joint Liability Groups, PM Surya Ghar, and PM Vishwakarma, Dulloo urged continued momentum in credit disbursement under such initiatives.
The Chief Secretary also flagged low Credit-Deposit (CD) ratios in certain districts as a matter of serious concern. He called for the constitution of a committee of experts to analyse the issue and recommend corrective measures to improve the ratio across the Union Territory.
Earlier, in his welcome address, Managing Director and CEO of J&K Bank, Amitava Chatterjee, expressed confidence in the banking sector’s role in driving economic transformation and reaffirmed the commitment of member banks towards financial empowerment and enterprise development.
During the meeting, Chief General Manager (J&K UTLBC) Ashutosh Sareen presented a detailed progress report, highlighting that banks in the Union Territory disbursed credit worth Rs 63,892 crore to 14.56 lakh beneficiaries during the first three quarters of FY 2025–26.
The meeting concluded with a vote of thanks by the Chief General Manager, J&K UTLBC.
