STATE LEVEL BANKERS' COMMITTEE, TAMIL NADU CONVENOR: INDIAN OVERSEAS BANK. MINUTES OF THE 126 th S L B C MEETING HELD ON

Transcription

1 STATE LEVEL BANKERS' COMMITTEE, TAMIL NADU CONVENOR: INDIAN OVERSEAS BANK MINUTES OF THE 126 th S L B C MEETING HELD ON th SLBC Meeting of Tamil Nadu was held at Chennai on 29 th June, List of participants is furnished in the Annexure. Welcome Address :. Smt. Nupur Mitra, Executive Director, IOB in her welcome address explained the scope and coverage of the meeting and stressed the need for timely review and initiation of corrective steps through timely submission and analysis of data. She mentioned about the Annual Credit Plan for the year which is prepared on the basis of district credit plans received from all the 31 districts and emphasized special focus on crop loan disbursement as the key point of this meeting. Earlier, ED, IOB extended a warm and cordial welcome to Shri Debendranath Sarangi IAS., Chief Secretary, Government of Tamil Nadu who attended the SLBC Meeting for the first time. She also extended a warm welcome to Shri N S Vishwanathan, Regional Director, RBI, Chennai, Smt. Lalitha Venkatesan, CGM, NABARD, Chennai, who also attended SLBC Meeting of Tamil Nadu for the first time. 1

2 Key Note Address:- Shri M. Narendra, Chairman & Managing Director, Indian Overseas Bank and Chairman, SLBC, Tamil Nadu in his keynote address reviewed the progress made by the Banking system in Tamil Nadu under various key parameters and outlined the action areas for Banks as under: - During the last few months, southern districts had received good rains, giving the cherished boost to agriculture in the state. Opening of Mettur dam on 6 th June followed by opening of other dams like Amaravathy and Manimutharu etc shortly afterwards have augured well for agriculture. Cauvery Delta area is poised to have three crops during the current year. All these events present excellent opportunity and responsibility for Banks to finance farming operations. CMD, IOB appealed to Banks to provide hassle free credit to farmers. This is the time to enlarge the coverage of all eligible farmers under KCC. He observed that the number of KCCs issued has come down during the year under review and he also appealed to Banks to use this season to increase issuance of KCCs on a large scale in the current year. Financial Inclusion: Currently Financial Inclusion Project focuses on extension of banking services to villages having population over 2000, which is under close monitoring of Ministry of Finance as well as RBI. As per the progress report submitted by Banks, only 2077 villages have been covered by Banks upto March 2011 against the targeted level of 2188 villages by March 2011 and another 2197 villages to be covered by , aggregating to The total number of villages remaining to be covered continues to be high at 2

3 2308 villages. Hence, he appealed to Banks to step up their efforts and ensure 100% coverage by December Ministry of Finance, Government of India has already initiated steps for coverage of villages with population above 1000 in the next stage villages having population between 1000 and 2000 have been identified through respective DCCs and allotted to Bank Branches for extension of Banking Services. However, no roadmap has been drawn for coverage of these villages. CMD, IOB requested all the Banks to prepare their action plans for covering these villages. Indian Banks Association has been requested to take lead in carrying out a national level awareness campaign targeting beneficiaries of Financial Inclusion Plan. The Campaign was formally inaugurated in New Delhi on To take forward this campaign to the gross-roots, an action plan needs to be chalked out. IBA is participating in the SLBC Meeting to inform us about the modes and strategies for spreading out the message. RSETIs & FLCCCs: (Rural Self Employment Training Institutes and Financial Literacy cum Credit Counselling Centres) The total number of RSETIs have been set up in 22 out of the 31 districts of the State. The remaining 9 RSETIs have to be opened by two allottee Banks. He requested them to set up RSETIs in their allotted districts expeditiously, so that Tamil Nadu would be achieving 100% coverage of all districts. CMD, IOB expressed concern over the slow progress in setting up FLCCCs. During the deliberations in SLRM 2010 held on , it was decided to set up FLCCCs in all the districts by June But, still 15 districts are yet to be covered. He appealed to all the three Lead Banks concerned to set up FLCCCs in their remaining Districts immediately. 3

4 Some banks are showing interest in opening more than their allotted shares of these institutes. Although the scheme stipulates allotment of land and funding support to only one RSETI in every district, there are no restrictions on the total number in any district. Highlights of Banks Performance in Tamil Nadu He then listed out some of the highlights of the achievements of the Banking system in Tamil Nadu as at the end of March CD Ratio as of March 2011 has reached the level of %, although in one district viz., Kancheepuram, it still remains less than 60%. Deposits have increased by 16.09% in the state during the 12 months period ended March Aggregate Credit Outstanding increased by 21.83% during the year ended March 2011 The share of Priority Sector advances to total credit is 47.49% as of March 2011 against the national norm of 40%. The share of agricultural advances as on March 2011 was 19.18% against the national norm of 18%. The share of advances to weaker sections increased to the level of 11.84% as on March 2011 against the national norm of 10%. He congratulated all Banks for having achieved the annual target and surpassed the national norm in three important key parameters, viz., Priority Sector Advances, Agricultural Advances and Advances to Weaker Sections. Government Sponsored Schemes:- Under Swarnajayanti Gram Swarozgar Yojana (SGSY), Banks have disbursed Rs Crores in the current year upto March 2011 against the annual target of Rs Crores. CMD, IOB, congratulated the Tamil Nadu Corporation for 4

5 Development of Women Limited as well as all Banks for this remarkable achievement under SGSY. He noted that credit subsidy ratio for economic activity has attained the level of 2.95 just a shade less than 3. Under Swarna Jayanti Sahari Rozgar Yojana (SJSRY), subsidy utilization has been upto the level of 70.50% upto March He appealed to member Banks to dispose of the pending loan applications under SJSRY immediately so as to ensure 100% utilization of subsidy in the current programme year. Action: Member Banks / Dept. of Municipal Admn. Performance under Annual credit Plan ( ) upto March As per quick information reports received, under Annual Credit Plan Banks in Tamil Nadu have disbursed Rs.52,224 Crores upto March 2011, achieving 110% of the annual target of Rs.47,428 crores. Credit flow to the agricultural sector amounted to Rs.31,404 crores while Credit flow to Non Farm Sector was for Rs.10,375 crores. Other Priority Sectors got Rs.10,445 crores. Annual credit Plan for Annual Action Plan for the state for the current financial year has been drawn up on the basis of District Credit Plans received from the districts. For the current year, an allocation of Rs.56,622 Crores has been made under ACP Farm Sector accounts for Rs.31,017 Crores while the allocation 5

6 for Non Farm Sector is Rs.12,582 Crores. Other Priority Sector accounts for Rs.13,022 Crores. He appealed to Member Banks to ensure 100% achievement under Annual Credit Plan in the current year too. He recalled to renew his request to State Government to notify, under Transfer of Property Act, all banked centers in the State as done by Government of Kerala and some other states. This would help the borrowers and beneficiaries to avail loans without having to go to another place to deposit their title deeds for creating mortgage. Chairman, SLBC acknowledged the whole hearted and continued support received from the various Departments of Government of Tamil Nadu, Reserve Bank of India, NABARD and the member Banks both at the State level and at the Districts level and thanked them for the same. Inaugural Address:- Shri Debendranath Sarangi I.A.S., Chief Secretary, Government of Tamil Nadu, in his inaugural address made the following observations:- Chief Secretary noted that Banks have exceeded the national targets in important sectors like Agriculture, Priority Sector & Weaker sections and pointed out that from the dynamism of Banks & Bureaucracy in Tamil Nadu the 6

7 achievement is no surprise to him. He called upon Banks to ensure exemplary performance in the current year especially in increasing credit disbursement. He appraised the forum that the new Government has a Development Agenda to give a big impetus to sectors like Agriculture, Dairy, infrastructure, development of women & children etc., and pointed out that Banks have also responsibility in developing these sectors. Chief Secretary also added that State Government is in the process of preparing visual document for overall development of the State, which will be ready within 4 to 6 months. The visual document will be made available to Banks stating that the role of Banks will be crucial in the schematic investment, he appealed to Banks to actively promote investments / deploy credit in the identified sectors. He also assured full support from the Government for the Bank s endeavors in this regard. SPECIAL ADDRESS:- Shri K. Shanmugam, IAS., Principal Secretary, Finance, Government of Tamil Nadu observed as under in his Special Address:- As regards performance of Banks under key parameters and Government sponsored schemes, the Southern Region in general and Tamil Nadu in particular always do well. In the meeting at Hyderabad last year, the performance of Southern Region especially Tamil Nadu was observed to be excellent. He expressed confidence that there will not be any problem in achieving the 7

8 targets in the current year also. He appealed to Banks to prepare a Model Scheme to extend credit to Rural Unemployed Youth for setting up Agro Processing Centre, to sort out labour shortage problem and to increase the use of machinery & farm implements. Drip Irrigation is a priority area, the Government is focusing on. So far the coverage under Drip Irrigation is only to the tune of 1 Lac hectares which is very very small portion of net sown area. The scheme has got Government subsidy support and when used with high tech farm practices like precision farming will increase productivity and income. He appealed to Banks to enlarge credit to farmers adopting Drip Irrigation. He also suggested that credit for high density cultivation for Horticulture crops may be tied up with Drip Irrigation. He also called for financing potato cultivation especially in urban surroundings & also fruits & vegetables. The Principal Secretary, Finance, Government of Tamil Nadu advised Banks to focus on setting up Agro Processing Centres for perishables like vegetables, fruits etc., so that the supply is evened out and sudden fluctuation in price to the disadvantage of farmers is avoided. State Government is attaching lot of importance to Animal Husbandry which provides supplementary income to farmers. Banks may think of a scheme for providing 3 to 5 milch animals on a client basis for establishing milch route, cold storage etc. He also added that Government will be bringing a scheme to improve the lot of MSE sectors and advised Banks to keep their focus on enhancing credit 8

9 disbursement to the MSE Units. He noted that 50% coverage is low under Financial Inclusion. Pointing out that some banks are yet to cover even one village under Financial Inclusion, he appealed to all Banks to evince interest in the project and enlarge 100% coverage by December As regards setting up of RSETIs, he suggested that existing infrastructure like RTC / SIRD can be utilized for setting up RSETI. Shri N.S.Vishwanathan, Regional Director, RBI, Chennai in his special address to the forum made the following observations:- RD, RBI expressed satisfaction that Banks have done well in key parameters on global basis. But in specific areas, Banks need to do better. Under Financial Inclusion Project, coverage of villages with population over 2000, few Banks, to whom 608 villages have been allotted are yet to start the coverage. As part of Platinum Jubilee celebration, RBI laid emphasis on Financial Inclusion, Financial Literacy etc. He pointed out that RBI Governor has already advised to move from the target based approach to substantive financial inclusion. The performance has to be not merely number of No-Frills accounts opened, smart cards issued etc., but enabling the poor to gain access to various financial services from Banks. This is the area where Banks & Government need to focus on. Lack of financial knowledge is the cause for many credit related problems. It is necessary to ensure speed of financial literacy. In fact RBI had requested some State Governments to include financial literacy in the school syllabus so that students at very early stage get imbibed in financial literacy. 9

10 RD, RBI emphasized on the development of MSME sector and especially quick rehabilitation of sick units. He pointed out that Government of India has set a target of Rs.4.75 lacs crores credit disbursement to agriculture which has to be dovetailed to ACP in all the States. He advised to look at ACP through the Budget allocation of Rs.4.75 lacs crores. In January-February 2010, RBI advised Banks to prepare a Board approval plan for Financial Inclusion. In the first step, Banks were advised to extend banking services to villages having population over Now smaller villages having population between 1000 and 2000 have to be covered. Such villages have been identified and allocated to Banks. Banks need to prepare an action plan for the same. BC Model & Technology help to extend banking services in a cost effective manner. BC Model needs to be stabilized so as to evolve confidence among people. He expressed confidence that with the support of State Government, Banks will not only repeat but even better their performance in the current year. Smt. Lalitha Venkatesan, Chief General Manager, NABARD, Chennai observed as under in her special address: Planning Commission has set up a working group on outreach of Institutional Finance to Corporations and Risk Management under the 12 th Five Year Plan under the Chairmanship of Dr. Y.S.P. Throat, Former Chairman, NABARD and Dr. Prakash Banshi is the Member Secretary. The field level credit target to Agriculture for for the country as a whole is Rs.4,75,000 crores. State-wise target were fixed and the target for Tamil Nadu is Rs.40,556 crores. But ACP has set the farm credit 10

11 target of Rs.31,017 crores. Pointing out that the achievement for itself is more than the target of set under ACP, CGM, NABARD advised Banks to take Rs.40,556 crores as the target for farm credit. Further the achievement in is to the extent of 123%. In the current year, the Government of India target of Rs.40,556 crores is 129% of ACP farm credit target and hence within the reach of the people especially in the content of the various sectors outlined by Principal Secretary (Finance) & target of 1,50,000 tons of food grains set by the Agriculture Production Commissioner. CGM, NABARD drew the attention to the directive of Hon ble Union Finance Minister for year on year increase by 20% both in number & amount and appealed to Banks to enlarge the concept of farmers under KCC accordingly. CGM, NABARD appealed to Banks to give wide publicity to Weather based Crop Insurance and enhance coverage of crops under the same. NABARD has launched a proposal for payment of pension for rural poor and SHG members from the Financial Inclusion Fund. The scheme is being implemented on a pilot basis in 4 states viz., Bihar, Odisha, U.P & Tamil Nadu. In Tamil Nadu, it is implemented in the districts of Cuddalore and Madurai, when it was inaugurated on 6/6/2011. CGM, NABARD also pointed out that formation of 3 lacs SHGs and enlargement of KCC action plan has to be drawn up jointly by Banks, Government & NABARD. The number of KCC, Amount & JLG/SHG go in tandem and achievement under KCC will ensure achievement of farm credit target. For Smart card & POS machines, financial support is available from NABARD to Commercial Banks, who can make use of the same. NABARD has recently introduced Capital Subsidy Scheme for solar panels under Jawaharlal Nehru National Solar Mission. Both capital subsidy and interest subsidy can be availed under the scheme. 11

12 NABARD has already issued circulars on all these schemes. CGM, NABARD also noted that the utilization of various scheme is on a higher rate in Tamil Nadu. Ms. Surinder Kaur, Under Secretary, Department of Financial Services, Government of India made the following observations:- Financial Inclusion is one of the major concerns of Government of India. Upto March 2011, only 2077 villages are covered which is less than 50%. 18 Banks to which 608 villages have been allotted are yet to cover a single village. She appealed to Banks to ensure coverage within the stipulated date. After these addresses by Dignitaries, the Agenda was taken up for discussion. AGENDA: 1 Confirmation Of The Minutes Of The Earlier Meeting The forum confirmed the minutes of the 125 th SLBC Meeting held on AGENDA: 2 Follow-up Action on the decision of the earlier meetings Notification of Centres for Deposit Of Title Deeds for Creation of Equitable Mortgage Transaction (EMT) Taking note that the matter has been taken up many a time in the past with State Government & Chairman, SLBC, Tamil Nadu has also made a request in this regard, the forum appealed to State Government to expedite notifications of all the centres where Bank Branches are located as notified centres as done in Kerala. Action: State Govt. AGENDA: 3 New Issues 1. Providing banking services in every village having population of 1000 Plus Shri S.N. Misra, GM, IOB, explained that currently Banks are in the process of extension of Banking services to villages having population over In the next 12

13 phase villages having population between 1000 and 2000 need to be covered for which the villages in Tamil Nadu have been mapped. There are 4494 villages having population between 1000 and 2000 in Tamil Nadu of which 4430 have been identified and allotted to Banks by respective DCCs. The details of villages with District wise / Bank wise allotment have already been forwarded to Member Banks (soft copy). DCCs have also advised Banks with regard to allotment within the District. Banks need to cover these villages also simultaneously with villages having population over 2000 wherever feasible / contiguous and cover the rest of the villages (1000+) in the next stage. Shri M. Narendra, Chairman & Managing Director, IOB & Chairman, SLBC, Tamil Nadu advised Banks to apprise on the action plan for covering villages having population of 1000 plus. Banks informed that in certain cases they have already stated covering these villages on their own & having plans to cover all these villages in a phased manner. After the deliberations, the forum advised Banks to ensure time bound action plan to cover the contiguous 1000 plus villages concurrently with over 2000 and others subsequently. Action : Banks 2. Providing banking services in every village having population of over 2000 Shri M. Narendra, CMD, IOB & Chairman, SLBC, Tamil Nadu advised the Banks which are yet to cover even a village by March 2011 to advise the current position and also when such Banks are likely to ensure coverage. Shri R. Gopalakrishnan, Zonal Manager, Bank of India informed that all the 1 10 villages have been covered and reported to Bank s Head Office. Regretting for the misreporting, he assured to submit a letter to SLBC immediately. Smt. Usha Ananthasubramanian, GM, Bank of Baroda informed that 44 villages have been covered and the rest will be covered in the current year before December 13

14 2011. Shri Praveen Anand, AGM, Punjab National Bank informed that no-frill accounts have been opened and BCs have been appointed. Only technology tie up is to be done and assured that coverage will be achieved by December Shri S.K. Bhasyam, GM, Union Bank of India apprised the forum that the work of opening of no-frills account, appointment of BCs etc., are in progress and assured that coverage will be done by September Shri M. S. Alagan, Chief Manager, UCO Bank informed that all the villages have been covered, 7 by mobile van and rest through ICT model. Shri K. Thangarajan, Regional Manager, Pallavan Grama Bank informed that technology provider has since been identified & coverage will be achieved within the deadline viz., December 2011 set by the forum. Mr. R. Ravindran, AGM, Tamilnad Mercantile Bank Ltd., assured the forum that the coverage will be done by July Noting that 2077 villages have been covered upto March 2011, the forum advised Banks to ensure 100% coverage by December Action : Banks The forum noted that the representative of Lakshmi Vilas Bank Ltd., has not attended the meeting and advised the Bank to inform the current position to SLBC immediately. Action : Lakshmi Vilas Bank 3. Financial Inclusion The forum noted that lacs no-frills accounts have so far been opened by Banks in Tamil Nadu. The forum advised Banks to submit data on no frill account promptly to SLBC. Action : Banks 14

15 The forum also requested State Government to route the benefit payments through respective Bank Branches who have covered the villages under financial inclusion. Action : State Govt. 4. Setting up of Rural Self-Employment Training Institutes (RSETIs) Shri M. Balakrishnan, DGM, Indian Bank informed the forum that RSETI in the remaining 7 Lead Districts would be set up before September Shri Joseph Mathew, DGM, State Bank of India, informed that they have already set up RSETIs in Ariyalur & Tuticorin Districts. Shri S. Rajagopal, Senior Manager, Canara Bank informed the forum that RSETIs in the remaining two Districts viz., Madurai & Coimbatore will be set up by September The forum after deliberations advised Lead Banks to take up the matter with respective District Collectors for allotment of land / existing infrastructure. The forum also requested State Govt. to expedite allotment of land and issue necessary instructions to District Collectors in this regard. Action : Banks / State Govt. 5. Setting up of Financial Literacy & Credit Counselling Centres (FLCCC) Shri M. Balakrishnan, DGM, Indian Bank informed the forum that FLCCC in the remaining 9 Lead Districts would be set up in July September 2011 in a phased manner. After deliberations, the forum advised other 2 Lead Banks also to set up FLCCCs in their Lead Districts immediately. Action : Indian Bank / Canara Bank/ State Bank of India 15

16 6. Study Report on verification of borrowers and end use of funds under Government Sponsored Schemes - NIRD Report The forum advised Banks and Government to take note of the observation of the Study Report, viz., only financial targets achievement is given importance and qualitative aspects and schemes with high orientation of subsidy perform worse than others. The forum also advised banks to remove the shortcomings in the implementation of Govt. Sponsored Programme as per the above study report. The forum pointed out that DCCs also should orient their deliberation/action plan to adjust the shortcomings brought out by the study report. Action : SLBC / DCC / Banks / Govt. Depts. 7. Closure of Dyeing Units in Tiruppur The forum appealed to State Government to permit adjusting of the subsidy amount lying in SB A/c. to respective loan accounts. The forum also appealed to State Government to do the needful for restoration of functioning of units. Action: Govt. of Tamil Nadu 8. Crop Insurance Schemes Shri K. Arulmozhi, IAS., Agriculture Production Commissioner (APC), Government of Tamil Nadu informed the forum that the coverage under National Agriculture Insurance Scheme (NAIS) gone upto 3 lacs loanee farmers and 5 lacs non-loanee farmers in He pointed out that Government of Tamil Nadu is meeting 50% of the premium for both loanee & non-loanee farmers. He added that crop loan against jewels are not covered under NAIS & appealed to Banks to advise their branches to cover crop loan against jewels also under insurance. He also explained 16

17 the efforts taken by State Government to improve the productivity of crops like sugarcane, paddy etc., and requested Banks to expand finance for cultivation of sub crops. Shri M. Narendra, CMD, IOB & Chairman, SLBC suggested that the scheme details may be made available to SLBC for circulation among member banks. It can be correlated with NABARD scheme and improved further. APC also referred to letter of Chief Secretary to RBI for ensuring compulsory coverage under insurance for meeting crop loss. Loans not covered under insurance ineligible to be classified as Agri / Priority loans. Shri N.S. Vishwanathan, Regional Director, RBI, Chennai responded that making insurance coverage compulsory rests with Government of India, which formulated the scheme. As regards making crop loans / crop loans against jewels, ineligible to be classified as Priority Sector advances if not covered under insurance, he pointed out that coverage under Priority Sector based on end use and so long as the loan is utilized for agriculture, it would be difficult to make the same ineligible for being classified under Priority Sector. Shri C. Anbarasu, Regional Manager, Agriculture Insurance Company of India Ltd., (AICI) explained that under Weather Based Crop Insurance Scheme (WBCIS), the credit limit has to be taken into account for calculating the premium. The premium is sanctioned limit x acreage x percentage which amounts to sizable amount. This is the Government of India directives and Banks need to implement the same. But the coverage under WBCIS is very poor. The forum after deliberations reiterated that crop loans including crop loans against jewels should be covered under insurance for all the notified crops in notified areas. The forum also advised to cover to specified crops in specified districts under WBCIS taking sanctioned limit into account. Under both insurance schemes, the forum advised Banks to enlarge coverage 17

18 substantially. Action: Banks 9. Government of India s Agricultural Debt Waiver & Debt Relief Scheme 2008 CAG Audit Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu explained that the scheme is subject to CAG Audit and Banks were advised to submit Performance Audit Report & Grievance Details both in hard & soft form as early as July But a few Banks are still to submit the same and the names of the Banks are furnished in the agenda. These Banks are requested to submit the details immediately. In May 2011, CAG team visited SLBC Office as part of commencement of audit. An Entry Conference was held in which the Deputy Accountant General, Chennai participated. Bank Branches which will be visited and audited were announced. In all, CAG has selected 40 branches, the details of which have already been forwarded to respective Banks. CAG apart from scrutinizing the books of accounts, will also be meeting farmers at branches. Branches concerned need to put up notice in their Notice Board that CAG audit is being carried out and farmers will be met. CAG team will be distributing the questionnaire to farmers for drawing their views as part of the survey. After the deliberations, the forum advised the defaulting Banks to submit the performance audit and grievances details to SLBC immediately. The forum also advised Banks to extend their cooperation to the CAG Audit Team and put up the notice as advised. The forum also noted that towards the completion of audit, there will be an Exit Conference. Action: Banks 18

19 10. Indira Gandhi Matritva Sahyog Yojana (IGMSY) A Conditional Maternity Benefit Scheme Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu explained that under the scheme, a cash incentive of Rs.4000/- is provided in 3 instalments to every pregnant and lactating woman aged 19 & above subject to certain conditions. Banks role is to open No-Frills accounts to such beneficiaries for receiving the amount through Bank. The forum advised Banks to open No Frills A/c. to such beneficiaries and facilitate payment in coordination with Nodal Department. 11. Reservation for SC / STs Follow up of Bogus Caste Certificate Cases Shri Joseph Mathew, DGM, SBI informed that the issue of false caste certificates has been discussed in SLBCs of other States and hence SBI wanted to draw the attention of authorities concerned for doing the needful through the forum of SLBC. Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu responded that the problem is issuance of false caste certificates due to which wrong people have entered the service. Hence, the role of SLBC in mitigating the same is limited. The forum requested State Government to ensure against issuance of false caste certificates. Action : State Govt. AGENDA No: 4 19

20 REVIEW ON BANKING DEVELOPMENTS IN TAMILNADU ON KEY PARAMETERS AS OF MARCH 2011 The forum noted that Deposit & Credit growth was to the extent of 16.09% & 21.83% respectively. The forum also advised Banks to accelerate lending under DRI Scheme. AGENDA No: 5 Action: Banks REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN : APRIL 2010 TO MARCH 2011 The forum took on record that achievement under ACP is to the extent of 110% with the achievement under Farm Sector, Non-farm Sector & Other Priority Sector being 123%, 94% & 96% respectively. The forum advised Banks to ensure 100% achievement under ACP under all the three sectors. Action : Banks AGENDA No: 5A ANNUAL CREDIT PLAN Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu explained that ACP is prepared on the basis of PLP released by NABARD as per RBI guidelines. The preparation of ACP is a bottom up approach wherein bank branches prepare the plan at branch level which is then aggregated at Block, Taluk & District level. District Credit Plan received from all the Districts are aggregated to arrive at the State Plan. However from last year onwards Govt. of India is also advising targets through NABARD, which is higher than the one projected at District level. He 20

21 sought the view of Banks. Shri K. Arulmozhi, IAS., Agriculture Production Commissioner (APC), Government of Tamil Nadu pointed out that for certain crops like pulses etc., the allocation is less than the previous year and bulk of the plan viz., Crores is classified under miscellaneous and would break-up for the same. Shri Joseph Mathew, DGM, SBI pointed out that winter crops like turmeric etc., has not been captured. APC pointed out that turmeric is grown in one lac h.a. is a major crop, similar is the case for Tapioca. Shri M. Balakrishnan, DGM, Indian Bank pointed out that Banana is also not listed separately. Further crop loans for plantation of horticulture crops also come under Miscellaneous category. Representative of Department of Agriculture called for the details of major crops under Miscellaneous category. Further the allocation for pulses has actually come down while the State Government is going all out to increase the production. Shri M. Narendra, CMD, IOB & Chairman, SLBC, Tamil Nadu suggested that instructions may be sent to the LDMs of these Districts which reduced the plan size for pulses in ACP to review the same and inform the Banks in the Districts. After the deliberations, the forum while apprising the plan advised Banks 1) to achieve the farm credit target advised by Govt. of India viz., Rs.40556/- crores. 2) to provide break up details for crop loan (Miscellaneous) to LDMs for onward transmissions to SLBC. 21

22 AGENDA No: 6 SWARNA JAYANTI SHAHARI ROZGAR YOJANA (SJSRY) Shri N. Parthasarathy, Technical Officer, Municipal Administration department apprised the forum that as on date subsidy utilization level has gone up to 77%. He appealed to Banks to ensure disposal of all pending loan applications for the performance year before first week of August He also added that Action Plan for the current year has been advised to all the Urban Local Bodies without waiting for release of funds from centre. The plan contains sub target for SC/STs and Minorities and requested Banks to ensure 100% subsidy utilization. Action: Banks / Municipal Admn. Dept. AGENDA No: 7 Prime Minister s Employment Generation Programme (PMEGP) Smt. Vijayam Sathish, Asst. Director, KVIC informed that Rs Crores have been released and disbursed to Nodal Bank Branches. Another instalment is 22

23 expected in a month s time. As the funds are released based on the utilization certificate, she requested Banks to settle Margin Money claim of branches and inform KVIC. After deliberations, the forum approved Margin Money Target of Rs Crores for the Current Year The forum also advised KVIC to arrange for release of Margin Money against pending claims from Banks. Action: Banks / KVIC AGENDA No: 8 SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY) Shri J Ganesh Kanna, AC (Micro Credit), TNCDW, informed the forum that the credit mobilization target for SGSY at Rs Crores is up to December From 2012 onwards NRLM will be implemented for which the Government has sent its report / view to Centre. The forum after deliberation advised Banks & TNCDW to work together and ensure achievement of Target. Action: Banks / TNCDW AGENDA No: 9 Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) Shri S.S. Narayanamoorthy, Superintendent Engineer, TNHB apprised the forum that so far 53,275 loan applications have been forwarded to Banks of which

24 loans have been sanctioned. State Bank of India have sanctioned 1607 loans out of loan applications received by them. Indian Overseas Bank have sanctioned 1314 loans out of 9239 loan applications received by them. He appealed to Banks to advise their branches to expedite sanction and disposal of loan applications. Shri W. Christopher Robin, Relationship Manager, NHB pointed out that though 4328 loans have been sanctioned, disbursement has not taken place in respect of all loans and interest subsidy claim has not been made. He appealed to Banks to expedite disbursement and submission of claim for subsidy. Shri Joseph Mathew, DGM, SBI informed that their Bank received around loan applications and sanctioned 1610 loans. SBI returned around 2200 loan applications. Some of the reasons for return of loan applications are incomplete loan applications, non-submission of building estimate, non- compliance of KYC norms, non-submission of income certificate, non-submission of building plan. Further ineligible borrowers viz., age above 60yrs, patta not in the name of the applicant, borrower is already owning a house, applicants who are already defaulters to the Banks etc. Hence the Nodal Agency has to do preliminary scrutiny to ensure that the loan applications are full & complete, which point has been put across in earlier meetings also. Further the beneficiaries are also turning towards another Government Housing Scheme as the subsidy and loan amount is higher. Shri M. Balakrishnan, DGM, Indian Bank concurred that Indian Bank has also faced similar shortcomings and brought the same in the earlier meetings. The forum after deliberation advised: 1) TNHB to make preliminary scrutiny and forward the applications in complete form. 2) Banks to expedite sanction, disbursement and claim of subsidy. 3) Advised Banks to take note of the decision of Steering Committee leaving EMI / 24

25 income ratio be left to the Banks & 4) Advised TNHB / TNSCB the nodal agencies to take note of Steering Committee on the relaxation of plot size. Action: Banks / TNHB / TNSCB / LDMs AGENDA No: 10 BANK FINANCE UNDER HOUSING SCHEME: The forum took on record that housing loan disbursement was to the tune of Rs Crores against the target of Rs Crores. The forum also noted that more number of loans viz., 4818 have been granted under sub Rs.5 lacs category. Agenda : 10(a) GOLDEN JUBILEE RURAL HOUSING FINANCE SCHEME (GJRHFS) The forum noted that 6682 loans to the tune of Rs Crores have been disbursed during the year ended March 2011 under the Scheme. Action: Banks AGENDA No: 11 Educational Loans The forum took on record that loans to the tune of Rs Crores have been granted during the year ended March 2011, of which SC/ST, Minority Communities & Women account for loans, loans & loans 25

26 respectively. Action: Banks AGENDA No: 12 MICRO & SMALL ENTERPRISES (MSE) SECTOR Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu pointed out that coverage under CGTMSE is poor in respect of many Banks and also in a few districts, which needs to be improved. Shri N.S. Vishwanathan, Regional Director, RBI explained that at the ground level people have comfort with collateral security rather than guarantee. Further the awareness level of the scheme at ground level is also very low. Shri S.N. Misra, GM, IOB added that even plan outlay is very poor for Non Farm Sector in districts like Ariyalur, Nagapattinam, Pudukottai, Perambalur, Thiruvannamalai, Tiruvarur etc., and advised the Lead Banks of these districts to revise the plan allocation to NFS and enhance the same. The forum took on record the disbursement to MSE during the quarter ended March 2011 to the extent of Rs crores & Rs Crores respectively. Noting that only in respect of 5 Banks the share of Micro enterprises is 50% & above consequent on which the State as a whole could not achieve 50% norms. The forum advised Banks to ensure the share of Micro enterprises is enhanced to 55% by March

27 AGENDA No: 13 Action : Banks CREDIT FLOW TO WOMEN The forum noted that the share of credit to women constituted 8.41% as of March 2011 Action: Banks AGENDA No: 14 SELF HELP GROUPS (SHGs) Shri Ganesh Kanna, AC(MC), TNCDW thanked the Banks for the excellent cooperation in executing credit linkage target of 3000 crores by achieving disbursement of Rs Crores. He added that for the Current Year tentative target of Rs.5200 Crores has been fixed and the district wise targets are furnished. He also requested Banks to consider granting multiple doses of credit to SHGs to meet their production & consumption needs. The forum also advised Banks to consider the request of TNCDW on sharing the data on MFI. After the deliberations, the forum approved the tentative target of Rs.5000 Crores and advised Banks & TNCDW to work together for achieving the target in the Current Year. Action: Banks / TNCDW AGENDA No: 15 27

28 CREDIT FLOW TO MINORITY COMMUNITIES Shri T. Rizwan Ahmed, Manager, TAMCO, called for details of credit disbursement in addition to outstanding advance details. The forum noted that only 5 Public Sector Banks have achieved the target in The forum after deliberations, advised Public Sector Banks to increase their lending to Minority Communities so as to achieve the target of Rs Crores in the Current Year. The forum also advised Banks to provide disbursement details and advised SLBC to revise the format. Action : Public Sector Banks / SLBC AGENDA No: 16 KISAN CREDIT CARD SCHEME (KCC) Smt. Lalitha Venkatesh, CGM, NABARD pointed out that while the amount disbursed under KCC has increased, the number of KCCs could not have gone down in the year CGM, NABARD & Regional Director, RBI called for the details of Banks which reported lesser number of cards during in comparison to 28

29 Agriculture Production Commissioner requested for details of number of KCCs issued by Banks up to June 2011 in Tamil Nadu in the Current Year. The forum after deliberations suggested that the Action Plan for promotion of JLGs / SHGs KCC linkage advised by the Secretary, Agriculture Department, Govt. of India at Block / Village level for aggregation at District / State level. AGENDA No: 17 Action : Banks / LDMs /Agri.Dept. Progress Report on Economic Development Schemes implemented by TAHDCO Shri K. Harikrishna Pillai, Company Secretary, TAHDCO pointed out that subsidy amount is released by TAHDCO with a stipulation that the loan has to be sanctioned within 6 months from the date of release. However in , Banks returned subsidy to the tune of Rs.4.00 Crores thereby denying the benefit to 1600 beneficiaries. He appealed to Banks to avoid such return of subsidy in the Current Year. Action: Banks / TAHDCO AGENDA No: 18 REVIEW OF NPA ACCOUNTS IN PRIORITY SECTOR LENDING DECEMBER 2010 The forum noted that NPA under Educational Loans is substantial. The forum advised Banks to focus on reducing NPA by strengthening appraisal and recovery procedures. 29

30 Action: Banks / Nodal Agencies / LDMs AGENDA No: 19 Success Story Shri S.N. Misra, GM, IOB appealed to Banks to advise success stories to SLBC. SLBC plans to publish the same as a separate booklet if more number of success stories are received. The meeting came to a conclusion with the vote of thanks proposed by Misra, GM, IOB & Convenor, SLBC, Tamil Nadu. Shri S.N. 30