127 th Meeting of State Level Bankers Committee (Punjab)

Transcription

1 127 th Meeting of State Level Bankers Committee (Punjab) The 127 th meeting of State Level Bankers Committee (Punjab) to review the performance of banks for the period ended 31 st December 2013 will be held on at AM at Hotel Shivalik View, Sector 17, Chandigarh. Following issues shall be taken up for discussions in the meeting:- Item No.1 Confirmation of minutes of 126 th Meeting of State Level Bankers' Committee (Punjab) held on Last Meeting of SLBC 126 th Held On Minutes ed /Circulated On Comments Received NIL The House may confirm the ed circulated minutes. Item No. 2 Status report of issues flagged in the 126 th meeting of SLBC held on Issues raised & latest Status Item No.2(i) Roadmap-Provision of banking Services in Villages having population below 2000 Total unbanked villages in the above population segment in the state have been allocated to various banks. A monitoring and review mechanism has been instituted by DCCs to periodically assess and evaluate the progress made in Agenda papers of 127 th Meeting of SLBC-Punjab Page 1

2 allotment of villages and achieving the target indicated in the roadmap including the quality of services provided by the banking outlets. Banks in the State of Punjab have covered 4464 villages up to , the progress as on is as per Annexure (i). During the deliberations in the 4 th Steering Committee meeting to SLBC held on , the representative of RBI pointed out that the progress in covering of villages of Allahabad Bank, Andhra Bank, Canara Bank & Corporation Bank is not up to the mark. Reserve Bank of India vide their letter No. RPCD.CO.LBS.No.7555/ / dated expressed concern about the tardy progress in covering of villages and has desired to draw up a monthly plan up to March 2014 to cover all 6230 targetted villages with population below Member bank are requested to draw a monthly plan as desired by RBI and ensure to cover the prorate targets fixed as per the roadmap submitted by them. House may discuss. Item No. 2 (ii) Progress Report of Financial Literacy Centres (FLCs) The consolidated performance of the FLCs up to Dec is as per Annexure-(ii). Observations During quarter ended Dec-2013, 7966 persons availed indoor services from Financial Literacy Centres working in the State of Punjab. During the quarter ended Dec-2013, 371 outdoor activities were undertaken in which persons participated in these activities by Financial Literacy Centres in the State. Individual centre wise analysis reveals that the functioning of the centres at Bhatinda, Fatehgarh Sahib, Jalandhar & Fazilka requires more publicity. Agenda papers of 127 th Meeting of SLBC-Punjab Page 2

3 During the quarter ended December 2013, 1165 Financial Literacy Camps have been organized by rural branches in the State of Punjab in which persons participated. (District-wise list as per Annexure-iii) Item No. 2(iii) The House may review the performance of FLCs. Setting up of Rural Self Employment Training Institutes (RSETIs) 19 RSETIs are operating in the State of Punjab which includes RSETIs at Dhudi Ke (District Moga) sponsored by PNB and Tappa Mandi in Barnala District sponsored by Canara Bank. Allotment of land is pending at Hoshiarpur, Tarn Taran, Pathankot, Fazilka & SBS Nagar and possession of land is not taken in Gurdaspur, Jalandhar & Ropar districts. RSETIs are not operating at Fazilka, Pathankot, Tarn Taran, Gurdaspur & SBS Nagar. (Performance of the RSETIs functioning in the State up to Dec.2013 & status of land allotment is given on Annexure-iv & iv(a). From the data on progress of RSETIs up to Dec-2013, it has been observed that:- 772 training programmes of skill development were organized wherein trainees participated trainees were financed by the banks to start their Enterprises and 5362 trainees set up their enterprises through owned funds. Out of total trainees, were from SC/ST category, 2329 from OBC, 206 from minority and 3978 were from other categories Women and 104 Handicapped persons were also provided training for self-employment. The House may discuss During the deliberations in the 4th Steering Committee meeting to SLBC held on , the representative of IF&B has informed the house that RSETIs are not functioning at Fazilka, Tarn Taran, SBS Nagar, Gurdaspur and Pathankot. He requested the Convener Bank to start RSETIs at these centers immediately. Shri Harpal Singh, Convener SLBC & Field General Manager requested DIF&B to provide rent free accommodation for establishment of RSETIs in all the districts and land be allotted subsequently. He further requested to take up the matter with the concerned department for allotment of land at the earliest. The representative of Department of Rural Development may apprise the house of the latest developments in the matter of allocation of land in the Agenda papers of 127 th Meeting of SLBC-Punjab Page 3

4 remaining Districts for setting up of RSETIs and Controlling Heads of Banks and concerned LDMs having not taken possession of allocated land to apprise house of the reasons for the same and date by which they will accomplish the task. Item No. 3 Direct Benefit Transfer (DBT) Scheme. Department of Financial Services, Ministry of Finance, Government of India vide their letter no F.No.6/41/2012-FI(Vol.IV) dated 28 th January,2014 has informed that, the Government has provided the updated list of 120 Districts with maximum Aadhaar saturation received from Planning Commission for expansion of Direct Benefit Scheme of Govt. of India. In the State of Punjab, 14 districts in addition to the 5 districts i.e. Gurdaspur, SBS Nagar, Fatehgarh Sahib, Barnala & Jalandhar identified earlier has been identified for implementation of DBT. The list of these districts and the extent of coverage of banking services in these districts in as per Annexure-v. Detailed instructions have already been mailed to member banks for opening of bank accounts, seeding of Aadhaar and strengthening of banking infrastructure in the districts covered under Direct Benefit Transfer. Controlling Heads of Banks are requested to ensure opening of accounts of beneficiaries, seeding of Aadhaar number and strengthening of in the districts covered under Direct Benefit Transfer. Item No. 3(i) Unique Identification Authority of India - Seeding of Aadhaar Number in Bank Accounts of DBT/DBTL Beneficiaries Government of India has launched DBTL scheme which aims to provide subsidy to consumers in their bank accounts. The scheme was launched w.e.f in 18 districts. The DBTL rollout will happen in all the districts in the State of Punjab as per the following schedule: PUNJAB NAME OF DISTRICT DATE OF LAUNCHING OF SCHEME Nawanshahr (SBS Nagar) Fatehgarh Sahib Barnala Jalandhar Ludhiana Faridkot Gurdaspur Agenda papers of 127 th Meeting of SLBC-Punjab Page 4

5 Moga Bathinda Hoshiarpur Amritsar Roop Nagar Kapurthala Patiala Sangrur SAS Nagar (Mohali) Mansa Ferozepur Tarn Taran Muktsar Position of seeding of Aadhaar as on in each district is as per Annexure-vi. A meeting of Convener SLBCs with mission director/joint secretary was held on at planning commission, New Delhi and the action points of the meeting are listed below. From next meeting review would be taken on following issues: 1. ON SITE ATMS: In identified districts - By In other districts - By ATM installed up to 500 meters from branch would be treated as ONSITE ATM. 2. BRANCH EXPANSION: The head office of each bank gets target for opening of new branches during next year thus each SLBC to compile data for branch expansion every year & monitor the same in its meetings. References of Members of Parliament received through DFS, MoF, GoI for opening of branches at particular places be acknowledged within 15 days to Members of Parliament. SLBC to submit a consolidated monthly reply to DFS, MoF giving reference to each complaint received during last month and progress there on. Agenda papers of 127 th Meeting of SLBC-Punjab Page 5

6 Web Portal being designed by DFS, MoF would facilitate quick uploading of progress. 3. SSAs TO BE COVERED: In identified districts In other districts - Latest by March 2015 All the controlling heads of the banks are requested to take necessary action on the above points and accomplish the task by prescribed time lines. No communication has been received from DFS, Ministry of Finance (GoI) regarding withdrawal of the Scheme as appeared in the news paper. Controlling Heads of all the banks and All Lead District Managers are requested to advise branches of the respective districts to extend full cooperation to customers who approaches for getting the aadhar seeded in bank account and also in opening of accounts and seeding of Aadhaar number for implementation of DBTL scheme of Govt. of India. Item No. 4 Mapping of Gram Panchayats and Planning for BCAs/ CSCs for Direct Benefit Transfer- Sub Service Area (SSA) Approach. With the announcement of Direct Benefit Transfer in 43 Districts w.e.f. January, 2013 and in 78 districts w.e.f in the country in a phased manner, it has become necessary that comprehensive plan for coverage of the entire country through banking services to enable Direct Benefit Transfer is prepared. In the State of Punjab 3 Districts namely, SBS Nagar,Gurdaspur & Fatehgarh Districts have been identified for implementation of DBT in 1 st phase and Jalandhar and Barnala districts in the 2 nd phase. District wise list of Mapping of Gram Panchayat as per Sub Service Area Approach have already been completed and sent to Controlling Heads of all the Banks. The district wise progress in coverage of SSAs in the State of Punjab is as per Annexure-vi(a). Department of Financial Services, Ministry of Finance, Govt. of India, vide their letter F.No.21/13/2009-F1(Vol.11-Pt.) dated 20 th January, 2014 have informed about partial amendments of guidelines in coverage of those villages under Financial Inclusion Plan whose population is below Convener Bank has already circulated the letter to all the Banks and LDMs vide its dated Copy of the letter is enclosed as per Annexure-vii. Agenda papers of 127 th Meeting of SLBC-Punjab Page 6

7 This is for information of the house. Item No. 4(i) Opening of One Bank Account per family in Rural Area and Urban Areas Allocation of Wards With a view to achieve the objective of Financial Inclusion and to implement Direct Benefit Transfer Scheme both in Urban and Rural Areas, DoFS, MoF, GoI has been advising the banks to ensure opening of one account per family. The position of accounts opened by banks in Urban as well as in the Rural Areas in different districts as on is as under:- Name of District Total No. of Households Rural Households having Bank A/C Households yet to be covered Total No. of Households Urban Households having Bank A/C Households yet to be covered Amritsar Bathinda Barnala Faridkot Fatehgarh S. Firozpur Gurdaspur Hoshiapur Jalandhar Kapurthala Ludhiana Mansa Moga Mohali Muktsar Nawanshahar Patiala Ropar Sangrur Agenda papers of 127 th Meeting of SLBC-Punjab Page 7

8 Tarn Taran Fazilka Pathankot TOTAL Member banks in general and those having branches in identified districts in particular are requested to open accounts of the left out families at the earliest as the scheme of Direct Benefit Transfer is to be extended in other districts of the State also. Item No. 4(ii) Installation of Onsite ATMs in all Branches of PSBs/ RRBs and issuance of Debit Cards to all account holders in identified districts for Direct Benefits Transfer In pursuance of the Budget announcement , all Public Sector Banks have prepared plans to install ATM at their branches by March, In view of the roll out of the Direct Benefit Transfer, it is important that the 43 districts of Phase-I and the 78 districts of Phase-II are taken up on priority for installation of ATMs. In the State of Punjab, SBS Nagar, Gurdaspur & Fatehgarh Sahib districts have been identified for implementation of DBT in 1 st phase and Jalandhar and Barnala districts in the 2 nd phase. Member Banks operating in the identified districts were requested to install onsite ATMs at all the identified places as per the guidelines of Ministry of Finance latest by March The Bank-wise position in identified districts is enclosed as per Annexure-viii. The Controlling Heads of the Banks are requested to ensure installation of ATMs as per instructions of Ministry of Finance. Item No. 4(iii) INSTALLATION AND MANAGED SERVICES OF CASH DISPENSERS (CDs) CONVEYING DETAILS TO SLBC CONVENERS AND STATE LEVEL HEADS. Department of Financial Services, Ministry of Finance, Government of India vide its letter dated addressed to CMDs of all the Public Sector Banks has Agenda papers of 127 th Meeting of SLBC-Punjab Page 8

9 advised for outsourcing of installation & managed services of Cash Dispensers on geographical cluster basis. In the cluster comprising State of Punjab & J&K, Union Bank of India has been advised for installation and managing services of Cash Dispenser through M/S FIS Payment Solution and Services India Pvt. Ltd. Bank wise report for progress of installation of ATMs upto April to December as per Annexure-ix. Controlling heads especially of Union Bank and other banks/ldms are requested to take steps for installation of CDs as per the schedule. Item No. 4(iv) SETTING UP CLEARING HOUSES (CHs) AT PLACES WITH THREE OR MORE BRANCHES BUT NO CLEARING HOUSE During the deliberation in the 126 th meeting of SLBC, it was decided that in view of the RTGS/NEFT facility available at each centre and keeping in view the cost involved in setting up of Clearing Houses the matter for establishment of Clearing Houses be put on hold and matter be referred to Department of Financial Services, Ministry of Finance accordingly. Convener Bank has taken up the matter with Department of Financial Services, Ministry of Finance, Govt. of India, vide its letter dated and for opening of clearing houses at centres having 3 or more branches and average cheques per day should be more than 50. The reply from MoF is still awaited. This is for information of the House. Item No. 5 Automation of State Government Treasuries and Automated interface with the State Encouraging E-payments Secretary to Govt. of India, MOF, Deptt. of Financial Services, New Delhi has desired that State Govt. Treasury Business should be made electronically controlled as the system is beneficial for the State Government, banks and the beneficiaries. The System is convenient and provides quick credit to all beneficiaries accounts, besides elimination of risk associated with human interference. The representative of Department of Treasuries/IF&B is requested to apprise the house the progress in the matter. Agenda papers of 127 th Meeting of SLBC-Punjab Page 9

10 Item No. 5 (i) Computerization of Land Records The project launched by Revenue Department of State Government for computerization of land records, envisages for opening of Fard Kendra at each Tehsil and Sub-Tehsil level. Revenue Record like Jamabandi, Mutations, Rapats Roznamchas etc. of all the villages of that Tehsil/Sub Tehsil will be fed into the computer. As of now, 161 out of 167 Fard Kendras have been operationalized and record of about 12,285 villages has been computerized. Copy of Record of Rights are being issued from the operationalized Fard Kendras on the spot. Further the Department has planned to put the land records on internet so that people are able to view their Jamabandis etc. sitting at home only. The data of live Fard Kendras of all the Districts has been put on the web. A provision has been made to point out the errors in the Land Records through web. A meeting of the Sub-Committee to SLBC on Land Records was convened on wherein it was decided to constitute a Sub-committee for suggestion for software to be developed by the State Government with Project Manager, Land Records, Punjab, Convener SLBC, SBOP and OBC as its member. The subcommittee will also study the Karnataka Bhoomi Project in detail. Further it has been decided that every bank present in meeting to take opinion on the proposed amendments and software from their legal department. (Copy of the minutes are enclosed as per Annexure-x. House may deliberate. Item No. 5(ii) Electronic Benefit Transfer (EBT) for Government Schemes The house was apprised of the decision of the State Government for implementation of EBT on the basis of One district one bank model and it was also apprised that during the 3 rd Steering Committee meeting to SLBC, Controlling Heads of all the member banks were requested to apprise the IF&B department the name of the district which their bank would accept for implementation of EBT in the State. During the deliberations in the 126 th meeting of SLBC HELD ON Shri Parminder Singh Dhindsa, Hon ble Finance Minister desired that some districts be taken by public sector banks for implementation of EBT. Shri Sethi, Chairman of the meeting informed that though EBT is a remunerative business but he showed Agenda papers of 127 th Meeting of SLBC-Punjab Page 10

11 reservation about success of One district one Bank Model. It was resolved that Department of Finance would hold another meeting with the senior executives of banks and RBI to have a relook and final decision on the model to be adopted in the State for implementation of EBT. Convener Bank vide its letter dated has requested department of IF&B to take up the matter with the concerned departments for arranging a meeting as per the decision taken. During the deliberations in the 4 th Steering Committee meeting to SLBC held on , the representative of IF&B apprised the house that the matter for holding another meeting with the senior executives of banks and RBI to have a relook for the model to be adopted in the State is referred to the Principal Secretary (Finance) and decision in this respect will be apprised to the Convener Bank. The representative of Department of IF&B is requested to apprise the house the progress in the matter. Item No.6 Progress under Debt Swap Scheme. At least 3% of disbursement of agriculture credit during the year is to be earmarked for giving loans under Debt Swap Scheme. The progress achieved up to December-2013 is as follows:- Target for Debt Swap (on the basis of 3% of Agriculture) Achievement Under Debt Swap up to December.2013 Agenda papers of 127 th Meeting of SLBC-Punjab Page 11 (Amount ` in Lakh) %age Achievement Public Sector Banks Pvt.Sector Banks RRBs Coop. Bank Total (Bank wise progress is as per Annexure-xi) The Controlling Heads of Banks are requested to advise their field functionaries to lend liberally under the scheme to get the farmers out of clutches of money lenders. The House may deliberate.

12 Item No. 7 Agriculture Debt Waiver & Debt Relief Scheme Fresh Lending Progress up to December The information as at December 2013 in respect of Debt Waiver and Debt Relief is as under:- (Amount ` in Lacs) Agency Crystallization of Claims Under Waiver & Relief Fresh Loans Disbursed to beneficiaries of Waiver & Relief Accounts Amount Accounts Amount Public Sector Banks Private Sector Banks RRBs Cooperative Banks Total (Bank wise information is as per Annexure-xii) Observations Banks in Punjab have provided fresh credit to the extent of ` lakh which is 86% of total waiver & relief provided, covering accounts i.e.22.60% of farmers benefited under the scheme. The Public Sector Banks have provided fresh loans to the extent of `58017lakh which is 135% of the amount of waiver & relief covering 18.28% of farmers benefited under the scheme. The Private Sector Banks covered 13 farmers of 1517 benefitted under the scheme and provided fresh credit of ` 193 lacs. RRBs have provided fresh loans to the tune of 177% of the amount of waiver & relief to 46% of farmers covered under the scheme. The cooperative banks have given fresh loans to the extent of 36.58% of the amount of waiver & relief covering 24.82% of the farmers under the scheme. Agenda papers of 127 th Meeting of SLBC-Punjab Page 12

13 The Controlling Heads of Banks are requested to ensure that fresh loans are disbursed to all eligible farmers who have received the benefit of the Debt Waiver and Debt relief Scheme Item No. 8 Review of Performance of Banks (excluding Coop. Banks) in key areas relating to Deposits, Advances & Priority Sector Advances. Parameter As At Variation (Amount ` in crore) Dec Dec Dec Dec / Dec Dec / Dec Absolute %age Absolute %age Branches Agg. Dep Advances PS Adv Agri. Adv Adv. to MSE Weaker Sector Adv. DRI Adv (Bank-wise position as at Dec.2013 is given in Annexure-xiii (i-iv) Item No. 8.(i) Branch Expansion 668 new branches of Commercial Banks were opened in the State during the period from 1 st January 2013 to 31 st December 2013, thus raising the network of branches from 4451 as at 1 st January 2013 to 5119 as at 31 st December Area wise analysis is summarized below:- Area wise analysis is summarized below:- Number of As At Variation Branches Dec Dec Dec Dec. 2012/ Dec Dec. 2013/ Dec Absolute Absolute Rural Semi Agenda papers of 127 th Meeting of SLBC-Punjab Page 13

14 Urban Urban Total Observations During the review period, increase in number of branches in rural areas of Punjab was of the order of 429. This is followed by Semi-urban areas, which registered an increase of branches to the tune of 188. Whereas the increase of branch network in urban areas was 51. This is for information of the House. Item No. 8.(ii) Deposit Growth. The aggregate deposits of the Banks in Punjab increased by ` crore, from ` crore as at December 2012 to ` crore as at December 2013, thus posting a growth of 14.01% as against an increase of 12.83% during the corresponding period last year. Aggregate Deposits Dec As At Dec Dec Dec.2012 / Dec.2011 (Amount `. in Crore) Variation Dec.2013 / Dec.2012 Absolute %age Absolute %age Rural Semi Urban Urban Agenda papers of 127 th Meeting of SLBC-Punjab Page 14

15 Total Observations During the review period, the deposits in urban areas have increased by 7.88%,in semi urban area have gone up by 24.26% and in rural areas the deposit growth is 10.42%. This is for information of the House. Item No. 8(iii) Credit Expansion Gross credit in the State increased by ` crore, from ` crore as at December 2012 to ` crore as at December 2013, thus exhibiting a growth of % as against 18.70% during the same period last year. Area wise analysis is summarized below:- (Amount `. in Crore) Total As At Variation Advances Dec Dec Dec Dec / Dec Dec / Dec Absolute %age Absolute %age Rural Semi Urban Urban Total Observations Agenda papers of 127 th Meeting of SLBC-Punjab Page 15

16 During the review period, the growth in outstanding advances in urban areas was 9.65% whereas in semi urban & rural areas it was 18.42% & 20.66% respectively. This is for information of the House. Item No.8.(iv) Credit Deposit Ratio Implementation of the Recommendations of Expert Group on CD Ratio As per the recommendations of an Expert Group constituted by GOI under the Chairmanship of Shri Y.S.P. Thorat, a Special Sub-Committee (SSC) of District Level Consultative Committee (DLCC) was to be constituted in districts with CD Ratio of less than 40%, for drawing up Monitorable Action Plans (MAPs) to increase the CD Ratio on a self set graduated basis. Concerned LDM of the district will be convener of SSC with DCO, DDM, NABARD, LDO, RBI and District Planning Officer as its members. CD Ratio of 4 districts i.e. Hoshiarpur, Jalandhar, Kapurthala and Nawanshahr as at September 2005 was below 40% and Special Sub Committees (SSCs) of District Level Consultative Committee (DLCC) were constituted in these districts. The details of Monitorable Action Plans of these SSCs are as under:- District Date of Meeting Monitorable Action Plan Jalandhar % by % by % by Kapurthala % by % by % by Nawanshahar % by % by % by Agenda papers of 127 th Meeting of SLBC-Punjab Page 16

17 Hoshiarpur % by % by % by The comparative position of Monitorable Action Plan and CD Ratio (net of NRI deposits) as at December 12 & December 13 of these four districts is given below:- District CD Ratio (%) as at March 09/ March 10 as per MAP Jalandhar 60 (Mar.15) Kapurthala 60 (Mar.15) Nawanshahr 60 (Mar.15) Hoshiarpur 60 (Mar.12) CD Ratio % (including NRI Deposits) as at Dec. 12 CD Ratio % (including NRI Deposits) as at Dec.13 Growth Dec13/ Dec12 (PPs) CD Ratio % (Net of NRI Deposit s) as at Dec 12 CD Ratio % (Net of NRI Deposits) as at Dec 13 Growth Dec12/ Dec 11 (PPs) Observations:- The CD Ratio (including NRI deposits) has decreased in Jalandhar district and the same increased in other three districts. The CD ratio net of NRI deposits increased in Kapurthala & Nawanshahar District whereas the same has declined in Jalandhar & Hoshiarpur Districts. The concerned LDMs are requested to continue to review the CD Ratio in the meetings of Special Sub Committee of DCC so as to reach the next target of CD ratio as envisaged under Monitorable Action Plan. Agenda papers of 127 th Meeting of SLBC-Punjab Page 17

18 The House may review the CD Ratio vis a vis MAP to improve CD Ratio of these identified districts. Item No. 8 iv (i) Overall CD Ratio While calculating the overall CD ratio, all the member banks are requested to adhere to the instructions of Reserve Bank of India contained in their circular No. RPCDLDS.BC No.47/ / dated which inter alia states that the CD ratio to be calculated with credit at the place of utilization. The comparative position of overall CD Ratio of Commercial Banks is as below:- Period CD Ratio % Variation December December December (Bank wise CD Ratio as at Dec. 13 is as per Annexure xiv) (District wise CD Ratio as at Dec. 13 is as per Annexure xiv (i) Observations During the period under review overall CD Ratio of Commercial Banks for the State of Punjab witnessed an increase of 1.14 PPs from 80.05% as at December to 81.19% as at December The House may review the overall CD Ratio. Item No. 8 iv (ii) CD Ratio - Rural Areas The comparative position of CD Ratio of rural areas in Punjab is as follows:- Agenda papers of 127 th Meeting of SLBC-Punjab Page 18

19 (Amount `. in crore) Period Rural Variation Deposit Advances CD Ratio % PPs Dec Dec Dec Observations During the review period, the CD Ratio of Rural areas has increased by 5.76 PPs from 60.91% as at December -12 to 66.67% as at December -13. This is for information of the House. Item No. 8 iv (iii) CD Ratio - Semi Urban Areas The comparative position of CD Ratio of Semi Urban areas in Punjab is as follows:- (Amount `. in crore) Period Semi Urban Variation Deposit Advances CD Ratio % PPs Dec Dec Dec Observations Agenda papers of 127 th Meeting of SLBC-Punjab Page 19

20 During the review period, the CD Ratio of Semi Urban areas has decreased by PPs from 68.32% as at December 2012 to 64.12% as at December Item No.8 iv (iv) This is for information of the House. CD Ratio - Urban Areas The comparative position of CD Ratio of urban areas in Punjab is as follows:- (Amount `. in crore) Period Urban Variation Deposit Advances CD Ratio% Dec Dec Dec Observations: During the review period, the CD Ratio of Urban areas has increased by 1.64 PPs from % as at December -12 to % as at December.-13. PPs This is for information of the House. Item No. 8.iv (v) CD Ratio on the basis of credit as per utilization and Resource support under Rural Infrastructure Development Fund of NABARD NABARD has provided resource support of ` crore up to December 2013 to Punjab Government under RIDF for development of infrastructure. When this amount of RIDF is added to the credit provided by banks and the CD Ratio is calculated on the basis of Credit Utilization (Cu) + RIDF, the same works out to 80.93%. Item No. 8 iv (vi) Credit plus Investment to Deposit Ratio Agenda papers of 127 th Meeting of SLBC-Punjab Page 20

21 Investments made in the State Govt. bonds by the banks to the tune of ` crore when added to the credit provided by banking system in the State and the flow of credit has gone up to ` crore. For the period ended December the Credit plus Investment to Deposit Ratio is as follows:- (Amount ` in crore) Deposits Advances plus investments in State (C+I)/D Ratio Government Bonds (Detail of investment in securities & Bonds as per Annexure-xv) Item No. 8 iv (vii) CD Ratio of Financial System The CD Ratio of Financial System after inclusion of Deposits & Advances of the Cooperative Banks, Punjab Agriculture Land Development Banks and Financial Institutions comes to 82.05% as per detail given as under:- (Amount ` in crore) S.No. Particulars Deposits Advances CD Ratio 1 Commercial Banks/RRBs Including Cooperative Banks Including Punjab Agri. Dev. Banks* Including Financial Institutions** *Advances PADB ( ) **Financial Institutions PFC (` crore), PSIDC (` Crore). The CD Ratio of Financial System as at December is 82.05%. This is for information of the House. Agenda papers of 127 th Meeting of SLBC-Punjab Page 21

22 Item No. 8 (v) Priority Sector Advances During the period under review, Priority Sector Advances in Punjab grew by ` crore, from ` crore as at December 2012 to ` crore as at December 2013 thus showing a growth of 17.74% as against an increase of ` crore or 22.22% during the corresponding period previous year. The share of incremental PS advances to incremental advances during the period under review is 63%. Item No. 8 (vi) Agriculture Advances The Agriculture Advances in the State during the period under review witnessed an increase of ` crore, from ` crore as at December 2012 to ` crore as at December 2013 thus showing a growth of % as against an increase of ` 6319 crore or 19.78% during the same period last year. The share of incremental agriculture advances to incremental advances during the period under review is 23%. Item No. 8 (vii) Advances to Micro & Small Enterprises (MSEs) The advances to Micro & Small Enterprises during the period under review registered an increase of ` crore, from ` crore as at December 2012 to ` crore as at December 2013 thus showing a growth of 21.14% as against an increase of ` 2110 crore or 7.08% during the corresponding period previous year. Agenda papers of 127 th Meeting of SLBC-Punjab Page 22

23 Item No. 8 (viii) Advances to Weaker Sector During the period under review, the advances to Weaker Sector increased by ` 4423 crore, from ` 24131crore as at December 2012 to ` crore as at December 2013, thus registering a growth of 18.32% as against an increase of Rs crore or 39.34% during the same period last year. Item No. 8 (ix) DRI Advances As per extant guidelines 10 loans per rural branch per quarter are to be made by all Scheduled Commercial Banks. The progress achieved in DRI Advances up to December 2013 is as follows:- (Amount ` in Thousands) Institution Targets Achievement %age (Accounts) Accounts Amount Achievement Public Sector Banks Private Sector Banks Total (Bank-wise performance is as per Annexure-xvi). The controlling heads of banks are requested to initiate suitable steps for improving the progress and achieving the targets for number of loans under DRI scheme. Item No. 9 Review of National Goals Agenda papers of 127 th Meeting of SLBC-Punjab Page 23

24 As per guidelines of RBI, banks are required to achieve National Goals on Adjusted Net Bank Credit (ANBC) as at the end of previous year instead of NBC and for calculation of ANBC the outstanding FCNR (B) and NRNR deposit balance will no longer be deducted for computation of ANBC, which now will be Bank Credit plus investments made in non SLR bonds under HTM category. It may be difficult for banks to arrive at such figures at State level and as such the review of National Goal is made on the basis of Net Bank Credit as at the end of previous year, which means gross credit minus inter bank credit. The comparative position relating to achievement of National Goals in the State is given below:- Sr. Particulars Goal %age Position as on No % Dec. Dec. Dec a) Priority Sector Adv. to Net Bank Credit b) Agriculture Adv. to Net Bank Credit Out of above i) Direct Agri. Adv. to Net Bank Credit ii) Indirect Agri. Adv. to Net Bank Credit c) Weaker Sector Adv. to Net Bank Credit e) CD Ratio (Rural & Semi Urban) f) Women Beneficiaries Advances to NBC [Bank-wise performance under National Goals is as per Annexure-xvi(i) & xvi(ii) Observations: The ratio of Priority Sector Advances to Net Bank Credit as at December 13 stands at 53% as against National Goal of 40%. The share of Agriculture Advances to Net Bank Credit, as at December - 13 is 25% against the National Goal of 18%. The share of Direct Agriculture Advances to Net Bank Credit is 20% against National Goal of 13.5% and share of Indirect Agriculture Advances is 5.01% against National Goal of 5%. Agenda papers of 127 th Meeting of SLBC-Punjab Page 24

25 The advances to Weaker Sector are 17% of Net Bank Credit, as against National Goal of 10%. The CD Ratio of Rural & Semi Urban area is 65.28% against the national goal of 60%. The advances to Women Beneficiaries constitute 6.76 % of Net Bank Credit, against the National Goal of 5%. The House may review. Item No. 10 Education Loan achievement vis-à-vis targets. The performance of Banks as on vis a vis targets for the financial year is as under:- ( Amt. ` in Crore) Targets allocated by MoF March 2014 Outstanding as at No. of A/cs Amount No. of A/cs Amount Public Sector Banks Private Sector Banks Regional Rural Banks Grand Total Education loans is one of the priority area of Ministry of Finance, Govt. of India. Controlling heads of banks are requested to lend enthusiciatcally under the scheme. Bank wise performance vis a vis targets allocated under education loan scheme is annexed as per Annexure-xvii. The comparative progress is as follows:- (Amount `. in Crore) Year Accounts Balance O/S Increase Absolute %age Dec Dec % Agenda papers of 127 th Meeting of SLBC-Punjab Page 25

26 Dec % (Bank-wise position as at Dec 2013 is as per Annexure-xvii. Member Banks are requested to give more thrust for making advance under this segment Item No. 10 (i) Progress of Education loans to Women Students. Total Amt advanced during the quarter No. of account Out of which advances made to women student during the quarter No. of Amount (Amount `. in Crore) % of advances made to women student Amount No. of Amount account account (Bank-wise position as at December-2013 is as per Annexure-xvii(i). During the quarter ended December -2013, the banks in the State of Punjab have made 1969 education loans amounting to ` crores, out of which 653 loans amounting to ` crores have been made to female students. The percentage of loans advanced to women comes to 33.16% & 28.76% respectively for number of accounts and amount advanced. This is for the information of the House. Item No. 10 (ii) Collateral Free Education Loans & Position of NPA. As per RBI guidelines the banks are required to grant collateral free education loan upto 4 lacs. Implement action of the guidelines of RBI is emphasized in each meeting of SLBC. The relevant data in this regard for quarter ended Dec-2013 is placed below:- (Amt. in ` lakhs) Agenda papers of 127 th Meeting of SLBC-Punjab Page 26

27 Number of Education Loan accounts outstanding as at quarter ended Dec Amount of Education Loan outstanding as at quarter ended Dec Out of 2, NPA outstanding as at quarter ended Dec %age of NPA under Education Loan as at quarter ended Dec-2013 Out of 2, education loan granted collateral free Out of 5, NPA outstanding as at quarter ended Dec %age of NPA in collateral free accounts as on Dec (Bank-wise detail as per Annexure-xvii(ii). The House may discuss. ITEM 10(iii) NO. RECOVERY OF EDUCATION LOAN-ADOPTING REPREHENSIBLE PRACTICES Department of financial Services, MoF,GoI vide its communication dated 13 December,2013 has informed that some bank branches are adopting reprehensible practices such as displaying the names and photographs of students who are not able to pay educational loans or where there is delay in repayment. This practice is highly objectionable an as it tends to stagnate the students in addition to completely demoralizing him while completely ignoring his circumstances. Such practices need to be completely stopped with immediate effect. A copy of above communication is given on Annexure xvii (iii) and controlling heads of banks are requested to immediately issue suitable instructions to the branches and copy of the instructions issued may be ed to DFS,MoF,GoI on cmsec-bkg@nic.in with a copy to pande.alok@nic.in The house may deliberate. Agenda papers of 127 th Meeting of SLBC-Punjab Page 27

28 Item No. 11 Rajiv Rinn Yojna (RRY). The Ministry of Housing and Urban Poverty Alleviation (MH&UPA), Government of India has designed a Revised Interest Subsidy Scheme-named as Rajiv Rinn Yojana (or Rajiv Loan Scheme), as an additional instrument for addressing the housing needs of the EWS/LIG segment in urban areas. The Scheme envisages the provision of a fixed interest subsidy of 5% (500 basis points) on interest charged on the admissible loan amount to EWS and LIG segments to enable them to buy or construct a new house or for carrying out addition (of a room/kitchen/toilet/ bathroom) to the existing building. RRY has been formulated by modifying the Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) piloted in the 11 th Plan period with enhanced scope, coverage. Detailed guidelines of Rajiv Rinn Yojana are uploaded on the Ministry s website The overall target for the 12 th Plan period is 1 million dwellings across the country and for the current financial year, countrywide target of 2.5 lakhs dwellings has been fixed. Based on the criteria of Percentage Share of the Urban Population/Urban Housing Shortage, the target for the State has been fixed for 6000 Dwellings. District wise targets has been fixed and allocated to respective district. Lead District Managers are advised to allocate the bank wise target and convey the same to Convener Bank. Further LDMs are advised to ensure to review the performance of the scheme in each DCC/DLRC/BLBC meetings. Action: Lead District Manager. Item No. 12 Advances to Minority Communities. The comparative position is given below: (Amount `. in Crore) Minority December 13 %age Community December 11 December 12 %age A/Cs Amt. A/Cs Amt. Growth O/S O/S A/Cs Amt. O/S Growth (in amt.) Muslims Christians Agenda papers of 127 th Meeting of SLBC-Punjab Page 28

29 Budhists Zoroastrians Total (Bank-wise position as at Dec 2013 is as per Annexure-xviii) The overall advances to minority communities have registered an increase of ` crore, from ` crore as at December to ` crore as at December , thus showing a growth of 14.55%. During the quarter ended December , banks disbursed advances to the tune of `39.07 crore to borrowers belonging to minority communities. The bank-wise position is given as per Annexure xviii(i). The House may discuss. Item No. 12(i) Advances to Women Beneficiaries The comparative position of advances to women beneficiaries is given below:- (Amount `. in Crore) Year Accounts Amt. O/S Increase %age to Net Bank Credit Absolute %age Dec Dec % Dec % (Bank-wise position as at Dec 2013 is as per Annexure-xix) The overall advances to women beneficiaries witnessed an increase of ` crore from ` crore as at December to ` crore as at December- 2013, thus registering a growth of %. In the State of Punjab, the share of advances to women beneficiaries to Net Bank Credit as at Agenda papers of 127 th Meeting of SLBC-Punjab Page 29

30 December stands at 6.51%, against the target of 5%. The bank-wise position in respect of advances to women beneficiaries to total advances as at December-2013 is given as per Annexure xix(i)(ii). During the quarter ended December -2013, banks have disbursed loans to the tune of ` crore to women beneficiaries. The bank-wise position is given at Annexure-xix(iii). Item No. 12(ii) Advances to SC Beneficiaries (Amount ` in Crore) Year Accounts Balance Increase Outstanding Absolute %age Dec Dec % Dec [Bank-wise position as at Dec 2013 is given in Annexure-xiii(iii)] The overall advances to SC beneficiaries witnessed an increase of ` crore during the period under review, from ` crore as at December 2012 to ` crore as at December -2013, thus showing a growth of 16.82%. The House may review please. REVIEW OF GOVT. SPONSORED SCHEMES & PROGRAMMES Agenda papers of 127 th Meeting of SLBC-Punjab Page 30

31 Item No.13 Review of Govt. Sponsored Schemes & Programmes Item No.13 (i) National Rural Livelihood Mission (NRLM)-Implementation in the State of Punjab It has been informed by Rural Development Department, Govt. Of Punjab, that since SGSY scheme has been merged with newly started scheme NRLM, so as per the directions of MORD no new SHG group are to be formed under SGSY scheme w.e.f 31 st March 2013 and data reporting also does not get generated online. In view of the transition phase of SGSY to NRLM, no targets were given by the State Govt. The scheme is being implemented in 14 blocks of 5 districts i.e. Patiala, Gurdaspur, Sangrur, Kapurthala, & Ferozepur on pilot basis. (Annexure-xx) The representative of Department of Rural Development is requested to apprise the house the latest position. Item No.13(ii) Prime Minister Employment Generation Programme (PMEGP). KVIC has informed the following progress under PMEGP for the year up to :- Particulars KVIC KVIB DIC Total Rural Urban Target No. of Projects Margin Money (Rs. in Lakh) Employment Progress Cases disbursed Margin Money Released Agenda papers of 127 th Meeting of SLBC-Punjab Page 31

32 Employment Observations: A sum of Rs lakhs has been disbursed as margin money in the 372 cases disbursed upto in which 1431 unemployed youth have been provided employment. District wise targets of KVIC/KVIB of margin money for the year have already been provided to the Lead District Manager. The representative of KVIC/KVIB/DIC may inform the House latest position. This is for information of the House. Item No.13(iii) Swarn Jayanti Shahari Rozgar Yojana (SJSRY) The progress during the current Financial Year , up to Dec is as under:- Particular Target 1478 Cases Sponsored to banks 120 Cases Sanctioned by banks 90 Cases Disbursed by banks 73 Amount of Subsidy disbursed 8.11 lacs Amount of loan disbursed lacs Ach. of sanction vis-à-vis target 6.08% Ach. Of disbursement vis-à-vis target 4.93% State Urban Development Authority, Punjab has informed that State Finance department has sanctioned Rs lacs as centre share & Rs lacs as State share for the year for release. Bill for the same is being prepared by DV(F&A) branch of Director Local Govt. for the State Treasury to release funds. Agenda papers of 127 th Meeting of SLBC-Punjab Page 32

33 The representative of SUDA may apprise about the latest position in this regard. Item No.13(iv) Micro Financing Self Help Groups The summary of progress made in implementing the concept of Self Help Groups both under the Scheme of SGSY and Normal Lending up to is given below:- SHGs As on No. of SHGs formed No. of SHGs credit linked SHGs As on No. of SHGs formed No. of SHGs credit linked Gap between SHG formed & credit linked as on From up to No. of SHGs formed No. of SHGs credit linked Observations (District wise Progress is as per Annexure-xx(i) (Bank wise Progress is as per Annexure xx(ii). Up to , Self Help Groups have been formed out of which Groups have been credit linked since inception of the scheme. The gap between the SHGs formed & linked with bank credit is During the period ended up to December 13, in all together 1475 Groups have been formed. The pace of formation & credit linkage of SHGs needs to be accelerated. The House may discuss the bank wise progress. Agenda papers of 127 th Meeting of SLBC-Punjab Page 33

34 During deliberations of 4 th Steering Committee Meeting to SLBC, it was apprised by the representative of NABARD that they have simplified the AOF for Self Help Groups as per format approved in the 126 th meeting of SLBC-Punjab. Item No. 14 Annual Credit Plan Item No. 14(i) Annual Credit Plan Achievements up to The achievement under Annual Credit Plan ( ) up to December-2013 is given below:- (Amount ` in crore) Sector ACP up to December ACP up to December Targets Ach. % Ach. Targets Ach. % Ach. Agriculture MSE Education Housing Others Total District-wise & Bank-wise disbursement under ACP Annexure-xxi & xxi(i) District-wise & Bank-wise Targets vis-à-vis Achievements under ACP Annexure- xxii & xxii(i) District-wise & Bank-wise outstanding under ACP Annexure- xxii(ii-iii) Observations: As against overall targets of ` crore, Banks have disbursed loans to the order of ` crore, The percentage achievement works out to 94%. Agenda papers of 127 th Meeting of SLBC-Punjab Page 34

35 As against target of ` crore under agriculture & allied sector, Banks have disbursed ` crore. The achievement is 97%. Banks disbursed loans amounting to ` 9362 crore against the target of ` crore set forth for MSE. The achievement comes to 84%. Banks disbursed education loan amounting to ` 650 crore against target of ` 1511 crore. The achievement comes to 43%. Banks disbursed Housing loan of ` 1725 crore against the target of ` 3765 crores. The achievement comes to 46%. Banks disbursed loans to the tune of ` 7135 crore under Other Priority Sector against the target of ` 4891crore. The achievement comes to 146%. District wise Analysis The perusal of district-wise progress up to December-2013 under ACP given at Annexure xxi which reveals as under: is The overall targets have been exceeded in 11 districts i.e. Amritsar, Faridkot, FatehgarhSahib, Fazilka, Gurdaspur, Hoshiarpur, Kapurthala, Mansa, Moga, Muktsar & Tarn Taran and missed by varying margins in other districts. Similarly, the targets under Agriculture & Allied Sector have been achieved in 11 districts i.e. Bathinda, Fatehgarh Sahib, Fazilka, Gurdaspur, Hoshiarpur, Kapurthala, Mansa, Moga, Muktsari, Patiala & Tarn Taran missed by varying margins in other districts. The targets under MSE Sector have been exceeded in 9 Districts i.e. Faridkot, Fatehgarh Sahib, Fazilka, Gurdaspur, Hoshiarpur, Ludhiana, Muktsar, Moga & Tarn Taran districts & missed by varying margins in remaining districts. Likewise, the targets under Education loans have been achieved in 4 districts only i.e. Amritsar, Hoshiarpur, Ropar & Tarn Taran districts & missed by varying margins in remaining Districts. Agenda papers of 127 th Meeting of SLBC-Punjab Page 35