By IANS,
Jammu : Reserve Bank of India Governor D. Subbarao Wednesday urged the banking community in Jammu and Kashmir to open more banks in rural areas and expand branch network.
At least 25 percent of branches should be in villages having population less than 10,000. They should train business correspondents and also lay emphasis on self-help group (SHG) formulation and link them to banks, said Subbarao while presiding over a special meeting of J&K State Level Bankers’ (SLBC) Committee meeting here.
The governor while scanning the performance of banks operating in the state said, J&K Bank is leader of performance in the state.
He also appreciated the bank for announcing a full fledged branch at Surara village in district Samba where the governor had personally visited Tuesday to preside over a financial inclusion programme.
It is for the first time that the RBI governor addressed the bankers in the SLBC meeting. While deliberating upon various issues related to the banking and financial services in the state, he asked the banks to improve credit-deposit ratio (CDR).
“The credit-deposit ratio, which was 35 percent as at the end of December 2011, indicates unsatisfactory performance of banks. This is less than the half of the national average CDR of 75percent,” Subbarao said.