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Transcription

1 A jkt; Lrjh; csadj lfefr & iqnqppsjh la?k jkt; {ks= State Level Bankers Committee - UT of Puducherry nwjhkk"k Phone : QSDl Fax : bz esy E Mail : abdpondi@indianbank.co.in slbcpon@gmail.com;slbcpon@yahoo.in vxz.kh csad Lead Bank vapy dk;kzy; Zonal Office, 10 dkejkt lkys Kamaraj Salai, iqnqppsjh Puducherry SLBC-UTP: L 04 : : 3006:21 Dated: To All the Members of the SLBC, UT of Puducherry Sub: Minutes of the SLBC meeting held on The First State Level Bankers' Committee (SLBC) Meeting of Union Territory of Puducherry for the year was held on at Puducherry. Shri R Raj Kumar, Executive Director, Indian Bank, Shri Chandraker Bharti, IAS, Development Commissioner cum Secretary (Finance), Government of Puducherry, Shri V Candavelou, IAS, Secretary (Housing), Government of Puducherry Dr. J Sadakkadulla, Regional Director, RBI, Chennai, Shri S Raja, General Manager, RPCD, Shri Arunachalaramanan, Director, DEAP, RBI, G Manoharan, General Manager (RBD), Indian Bank, Corporate Office, Chennai, Sri. Veera Sankar Deputy General Manager, NABARD, Chennai, Shri E Selvasekaran, Deputy General Manager, RBD, Indian Bank, Corporate Office, Chennai, Shri S Parthasarathy, Zonal Manager and Convenor SLBC, Senior Executives/Officials of various banks, Senior Officials of various Government Departments and District Co-ordinators of banks participated in the meeting. Shri. Anandrao V Patil I A S, Director (AC & IR), DFS, Government of India participated in the meeting through Video Conference from New Delhi The list of participants is given in the annexure. Shri G Manoharan, General Manager (RBD/FI) Indian Bank in his welcome address outlined the performance of Banks during the year and informed that Banks have performed well in many key banking parameters including ACP during the review period. He cited a few in brief, Credit Deposit ratio is maintained at 77% There is further scope for improvement and I hope that by March 2015 CD ratio might improve further to reach a level of 80%. Banks have disbursed Rs Crores against the target of Rs crores under Annual Credit Plan, registering %.Outstanding under Agriculture has been maintained at 23.75% i.e more than the stipulated level of 18%. Growth in deposits is good when compared to the growth witnessed during the corresponding period of last year. Advances and priority sector advances have improved. The percentage of DRI advances to total advances is only 0.07%. Banks are lending under this scheme and it requires further improvement. The advances to minorities are improving but more efforts Page 1 of 16

2 are required to reach the desired level of 15% of Priority sector. Similarly advances to SCs/STs also need improvement to reach the norms. He requested all the members to take collective steps to attain the desired level in all the areas, as per the directives. Banks are performing well in Financial Inclusion by opening more accounts without insisting on minimum balance, however inclusive growth is possible only when credit facilities are extended to eligible and needy persons either through KCC to farmers or GCC/OD to nonfarmers to bring in more transactions in these accounts and other products as per Annual Financial Services Plan are also to be provided to these villages. Another area where banks are performing well is smooth implementation of Direct Benefit Transfer in identified Central Government Schemes and also direct benefit transfer of LPG. In all the four districts viz Puducherry, Mahe Yanam and Karaikal it is being implemented and they are in various phases. Government of Puducherry and Banks are playing a complimentary role to each other for the development of the UT at large and the under privileged sections of the society. Bankers should continue to extend the good work and provide cooperation to the State administration in all the Banking development related areas. Shri R Raj Kumar, Executive Director, Indian Bank in his inaugural address informed the members of current Global and domestic economic scenario. In the macroeconomic and monetary developments (update ) released by Reserve Bank of India, it is mentioned that the outlook for the Indian economy has improved over the past two months with cautiously positive business sentiments, improved consumer confidence, expectations of a modest recovery in growth and decline in inflation expectations. A moderate recovery is likely to set in broadly in line with the Reserve Bank s indicated projections in January The recovery is likely to be supported by investment activity picking up due to part resolution of stalled projects and improved business and consumer confidence. We also need to put the manufacturing sector on a growth path. While a roadmap has been laid out in the National Manufacturing Policy, progress on policy implementation is required to build confidence. State governments will need to acquire land to carve out manufacturing zones in which state-of-the-art infrastructure will have to be built. Simplified business regulations will enable a more conducive environment for doing business. He expected this process to gather momentum in the coming year. The rural demand base is likely to shore up demand following a good agricultural output. In addition, external demand is expected to improve further during stemming from encouraging prospects for global growth, notwithstanding some recent loss in export growth momentum. The government, in recent months, has been taking several policy initiatives to speed up infrastructure investment but these measures will take some time to fructify. Nonetheless, these may provide a toehold for recovery as we enter into With regard to Banking Developments in UT of Puducherry, he noted that Banks in UT have shown commendable performance during the year During the review period the banking system has registered growth in all financial parameters. The deposits have registered a growth of 11.07% and advances have grown by10.43 % and the CD ratio is maintained at the same level of 77%. He requested all the banks to improve the same so as to achieve atleast 80% during the current quarter. Performance under Annual Credit Plan (ACP) for the year is another highlight. The aggregate Credit disbursement from April 2013 to March 2014 amounts to Rs crores against the target of Page 2 of 16

3 Rs crores registering % achievement under ACP. Another noteworthy performance is under Agriculture which has maintained a level of 23.75% much above the stipulated norm of 18%. He requested the banks to put in more efforts to achieve the targets under DRI, Minorities and improve credit flow to SC/ST beneficiaries. The focus is to be given to reach the level of at least 15% of Priority sector Credit under outstanding loans for Minority communities. On the Financial Inclusion front, RBI has attached great importance to speedier branch expansion in unbanked rural centers for ensuring seamless roll out of the Direct Benefit Transfer Scheme of the Government. Towards this end, banks are being advised to front load the opening of branches in unbanked rural centres over a 3 year cycle, co-terminus with their Financial Inclusion Plans (FIP) and have also requested all the banks to open bank accounts for all eligible households. Metropolitan areas are also to be brought under the fold of Lead Bank Scheme in order to extend the institutional mechanism for financial inclusion to urban areas. Under Direct Benefit Transfer Scheme which has been implemented in Puducherry from onwards, so far an amount of Rs Crores has been transferred through this mechanism. DBT has also been started for LPG consumers from in Puducherry district. The banks have reached 87% of seeding of Aadhaar in the bank account out of 2.48 Lakhs LPG consumers. The scheme is extended to Mahe, Yanam and Karaikal districts of UT of Puducherry and the banks are continuously on the job. However, it is requested to ensure that consumers seeding Aadhaar with the dealers are also seeding it with the Banks simultaneously. Besides, Government of India have also announced several other measures to ensure inclusive growth by emphasizing provision of credit to farmers through revised Kisan Credit Card (KCC) scheme and ensure that every eligible farm house hold is provided with KCC and non farmers with General Credit Card (GCC)/Over Draft (OD) facility under Financial Inclusion. I urge upon the Bankers to utilize the Financial Literacy Centers, INDSETIs and Business Correspondents to the maximum extent possible so that the poor and needy are extended the benefit of Banking facilities. This forum of SLBC of Puducherry is enthusiastic, receptive and participatory in its approach and has always delivered the result in the expected manner and hoped that the forum will maintain the tradition and fulfill the expectations of the stakeholders as always. He requested all the members to offer their valuable views and suggestions for the betterment of the State and expressed confident that the deliberations will pave the way for timely actions and fruitful results. Shri Chandraker Bharti, I A S, Development Commissioner cum Secretary (Finance) in his address appreciated the banks for their achievement in various sectors. In respect of Government Sponsored Schemes the fixing of targets and other formalities takes a couple of quarter and there would be no sanction or disbursement and the targets are to be achieved in only two quarters. Banks and the concerned department have to chalk out suitable strategy to avoid this. He emphasized not only for timely sanction but timely disbursement which would help in regular repayment. The formalities of loan sanction and disbursement is to be simplified. Banks are very much concerned about recovery. Suitable mechanism can be developed by outsourcing the same. Like in PMEGP proper utilization can be verified and this would Page 3 of 16

4 help in regular repayment. The CD ratio of 77% is a healthy indicator that there is more scope for credit absorption. He informed his experience in Industries department of Government of India where fiscal road map of the country and drafting of the national manufacturing and investment policy and land acquisition act which strives for creation of million jobs by 2025 Industry and commerce play a vital role in growth of GDP and their share is to be increased by 20% to 40%. He requested the banks and government department to meet more frequently to sort out issues so that only the issues which need state level intervention be brought to the forum for discussions. The per capita income of UTP is around 1.25 lakhs which is a healthy trend. Shri Candavelou I A S, Secretary (Housing) Government of Puducherry in his address informed that Credit flow to various sector is important for economic growth. Banks have fixed a target of Rs.1835 Crores for the coming years. They should try to surpass the same. The recovery of 78% in priority sector is also healthy sigh. With regard to Government Sponsored schemes the recovery percentage is low and government will take all possible steps to assist the banks in recovery. The credit flow to industrial sector is sluggish. New environmental clearance regulatory mechanism has been put in place and new industries have to comply with the same. Banks are also to look in to this aspect while extending credit facilities to industrial sector. Shri Anandrao V Patil I A S, Director (AC & IR), Department of Financial Services, Government of India, Nodal Officer for UT of Puducherry addressed the meeting through video conference from New Delhi. He expressed happiness that all the identified villages are covered under Financial Inclusion. 67 unbanked villages with population above and below 2000 have been covered through Branches/USB/BC etc. CD ratio is 77% which is a very good level and Priority sector advances are 62% which is above the national norm of 40%. Agriculture advances are above the national norm of 18% and Weaker Section advances are 13.50% which is also above the national norm of 10%. He appreciated the efforts of the banks in mobilizing more deposits which has increased by 11.07%. He requested all Bankers to concentrate on CASA, retail business and recovery. He also appreciated the achievement of targets under Agriculture, Non Farm Sector (NFS) and Other Priority Sector (OPS) and good performance under Housing Finance Scheme, educational loan scheme which is picking up and more number of loans are being disbursed. The performance under DRI advances is not upto the desired level. He requested for review of these performances so as to improve upon the same in coming quarters and also requested NABARD to monitor the same. He also requested for more disbursement under investment and credit projects under agriculture and allied sector to achieve the targets for MTL and Agri Clinics. He requested the banks to put in sincere efforts to improve the recovery by holding Joint Recovery Camps and also arrest the decline in rate of recovery under group schemes. State Government may give all required support. The Banks should follow the RBI time norms for disposal of application. Line Departments were also requested to work in close coordination with banks for financing viable projects under Government sponsored Scheme. Banks should increase the lending under SME sector to avail the benefits of Credit Guarantee Fund Trust Scheme. He requested banks to put in more efforts to achieve the target of 15% under Advances to Minority communities Page 4 of 16

5 which is below the targets fixed. He requested the forum to consider the holding of future meeting a day before or after SLBC meeting of Tamil Nadu. Members were requested to take note of the observation for doing the needful. Dr. J Sadakkadulla, Regional Director, Reserve Bank of India, Chennai in his address, appreciated the role of banks in achievement of various parameters. He requested the banks to make all out efforts to provide doorstep services to all the DBT beneficiaries especially old age pensioner who may not be able to visit the branches for drawing their pension amount. He informed that Reserve Bank of India is closely following the progress made in Educational Loan portfolio. So he requested banks to provide educational loan to deserving students as per the extant guidelines so as to enable them to pursue higher education. INDSETI is playing a vital role in providing training for skill development of the unemployed youth. RBI is also taking utmost care in providing Financial Literacy in 3 outreach villages in Puducherry by visiting the same regularly so as to ensure Financial Inclusion to everyone of the village. He highlighted the important points of the recent circulars of RBI. Convening of Pre-PLP meeting which was hitherto convened during the month of August is to be convened in June. He requested all stakeholders to extend their fullest co-operation. In order to give a fillip to the flow of credit to micro and small enterprises (MSEs) borrowers a differential rate of Interest for Micro and Small Enterprises has been circulated. It was advised that while pricing their loans to MSE borrowers, banks should take into account the incentives available to them in the form of the credit guarantee cover of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and the zero risk weight for capital adequacy purpose for the portion of the loan guaranteed by the CGTMSE and provide differential interest rate for such MSE borrowers, than the other borrowers. However, banks should note that such differential rate of interest is not below the Base Rate of the bank. Banks were also advised to undertake a review of their loan policy governing extension of credit facilities to the MSE sector, with a view to using Board approved credit scoring models in their evaluation of the loan proposals of MSE borrowers. In view of the concerns being raised due to increased usage of large number of bank accounts through BC model the issues of Cash Management of BCs, Low/delayed payment of remuneration of BCs and insurance of cash has been taken into account. It was stated that the insistence by banks on BCs to fully prefund their accounts even after considerable long business relationship has become a major impediment in scaling up operations of BCs. Similarly, low/delayed payment of remuneration of BCs and passing on the responsibility of insuring cash to BCs have also been proving to be irritants in increasing the usage in large number of bank accounts opened. In view of the above, it has been decided that: The Boards of the Banks must review the operations of BCs at least once every six months with a view to ensuring that requirement of pre-funding of Corporate BCs and BC Agents should progressively taper down with the passage of time. Ideally in all normal cases the pre-funding should progressively come down in such a manner so as to reach around 15% of the limits fixed for each BC/CSP in case of Bank Guarantees, etc. in say 2 years from the time a BC starts operations. The Board should also review the position of payment of remuneration of BCs and should also lay down a system of monitoring by the top management of the Bank. The issue of allowing BCs to Page 5 of 16

6 handle deposit and payment transactions of various credits, remittance, overdraft and other products of banks must also be examined by the Board from time to time. Complaints redressal system in this regard should also be laid down by the Board. As the cash handled by BCs is Bank s cash, the responsibly for insuring this cash should rest with the banks. With regard to Depositor Education and Awareness Fund Scheme, Section 26 A of BR Act, 1949, A cell has been created in DBOD to establish Depositor Education and Awareness Fund. The amount to the credit of any account in India with any bank which has not been operated upon for a period of ten years or any deposit or any amount remaining unclaimed for more than ten years shall be credited to the Fund within a period of three months from the expiry of the said period of ten years. The fund will be utilized for the promotion of depositor s interest and for such other purposes which may be necessary for the promotion of depositors' interests. Operational guidelines regarding the scheme were also released on May 27, DBOD and RPCD CO have issued a circular on Levy of penal charges on non-maintenance of minimum balances in inoperative Accounts. Banks were advised earlier by our circular on Financial Inclusion- Access to Banking Services - Basic Savings Bank Deposit Accounts that no charge should be levied for nonoperation/activation of Basic Savings Bank Deposit Accounts (BSBDAs). It is advised that henceforth banks are not permitted to levy penal charges for non-maintenance of minimum balances in any inoperative account. Levy of foreclosure charges/pre-payment penalty on Floating Rate Term Loans- As mentioned in the First Bi-monthly Monetary Policy Statement announced on April 1, 2014 that in the interest of their consumers, banks should consider allowing their borrowers the possibility of prepaying floating rate term loans without any penalty. Accordingly, it is advised that banks will not be permitted to charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect. Opening of Bank Accounts in the Names of Minors DBOD vide its circular dated December 29, 1976 advised banks to allow minors accounts (fixed and savings deposit accounts) with mothers as guardians to be opened subject to safeguards in allowing operations in such accounts by ensuring that the minors accounts opened with guardian are not allowed to be overdrawn and that these always remain in credit. In 1989, this facility was also extended for Recurring Deposits. With a view to promote the objective of financial inclusion and also to bring uniformity among banks in opening and operating minors accounts, banks are advised as under: a. A savings /fixed / recurring bank deposit account can be opened by a minor of any age through his/her natural or legally appointed guardian. b. Minors above the age of 10 years may be allowed to open and operate savings bank accounts independently, if they so desire. Banks may, however, keeping in view their risk management systems, fix limits in terms of age and amount up to which minors may be allowed to operate the deposit accounts independently. They can also decide, in their own discretion, as to what minimum documents are required for opening of accounts by minors. c. On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian / legal guardian, fresh operating instructions and Page 6 of 16

7 specimen signature of erstwhile minor should be obtained and kept on record for all operational purposes. Banks are free to offer additional banking facilities like internet banking, ATM/ debit card, cheque book facility etc., subject to the safeguards that minor accounts are not allowed to be overdrawn and that these always remain in credit. He requested banks to take into account the recent developments. Shri Veera Shankar, Deputy General Manager, NABARD, Chennai in his address appreciated the achievement of banks under various parameters especially, deposits, advances, agriculture, priority sector. With regard to achievement under Agriculture loans are provided to short term purposes only. The crop loans form major part of the disbursement. But the real development could come only when the term loan is increased as it provides infrastructure development. So he requested all the banks to disburse more under term loan also so as to achieve the sub sector targets. He outlined the salient features of the Agriculture Marketing Infrastructure scheme which were recently introduced and requested banks to utilize the same. He informed that NABARD would be providing all possible guidance in this regard. He also informed that NABARD is planning to conduct workshops in all the districts to popularize the Joint Liability Group concept which has been widely accepted by banks as one of the innovative credit delivery mechanisms. In spite of the rapid growth of SHG-Bank linkage programme all over the country, the credit requirements of certain important mid segment rural clients like tenant farmers, small and marginal farmers, weavers, artisans, fishermen, small traders etc., So these targeted sections could be brought into the group mode financing through JLG mechanism. He also informed that in Tamil Nadu a total of 61 projects have been completed in the rural marketing infrastructure sector amounting to Rs.17 Crores. He requested banks in Puducherry also to utilize the infrastructure development schemes for which banks can also avail refinance from NABARD. NABARD is also planning to conduct short duration MDP for SHG members to improve their economic viability by encouraging them to take up income generating activities. Discussion on Agenda Items: AGENDA 1 - Confirmation of the minutes of the SLBC meeting held on The forum confirmed the minutes of the SLBC meeting held on AGENDA 2 - Review of follow up action taken on the decisions of SLBC meeting held on Direct Benefit Transfer in Puducherry The forum was informed that in 13 out of 26 central government schemes wherein Direct Benefit transfer is being implemented in Union Territory of Puducherry from onwards Rs Crores have been transferred to account of 6436 beneficiaries out of 9077 beneficiaries as on As most of the schemes are for payment of Scholarships the students of the districts of Karaikal, Mahe and Yanam are also part of the list. In Yanam region DBT implementation started from onwards. Departments are sending the beneficiary list to banks for seeding of Aadhaar number on its finalization. Banks were also requested to verify the account details ensure Aadhaar seeding. The transfer of benefit to the accounts of beneficiaries is specially monitored. Payment of Old age Pension is also done through Aadhaar seeded Page 7 of 16

8 bank accounts through APB. Banks are requested to ensure all beneficiaries are provided with ATM/Debit/smart cards to enable them withdraw the same at their convenience. Banks were requested to provide sufficient delivery channels to account holders for withdrawing the money either through on-site /offsite ATMs/BCAs with POS Machines. Banks were also requested to fully utilize the services of BCAs to ensure services in the concerned villages. Banks which were already implementing Aadhaar Enabled Payment System (AEPS) in other parts of the country were requested to replicate the same in Puducherry also. Other banks were also requested to consider roll-out of Aadhaar enabled payment system (AEPS) through Micro ATMs in Puducherry at the earliest. Action : All Banks and Concerned Departments 2.2 Allotment of Land for Indian Bank Self Employment Training Institute (INDSETI). The forum was informed of the present position regarding allotment of identified land by Government of Puducherry to Indian bank Self Employment Institute to build necessary infrastructure for Indian Bank Self Employment Training Institute (INDSETI). Representative from DRDA informed that they issue will be taken up on priority basis and finalized before the next meeting. ACTION: INDSETI and DRDA 2.3. Proposed Waiver of Loans under Rajiv Gandhi Tsunami Rehabilitation package The Convenor informed the members of the status of the proposed waiver of loans given to fishermen affected by Tsunami under Rajiv Gandhi Rehabilitation package by Government of Puducherry, Department of Fisheries and Fishermen Welfare. The representative from the department informed that they need more particulars from the banks for processing the same. Based on the updated particulars the department has sought certain clarification regarding pattern of assistance, statements by borrowers for non payment of loans etc. Since the applications were forwarded by the department necessary particulars would be already available with them. Banks in normal circumstances would not be getting any letters from borrowers regarding reason for non-payment. Since the request for such letter was made after waiver by neighboring State where no such letter was sought, the borrowers informed that they expect similar waiver for them also. However, Lead Bank has requested the department to inform the credentials that they expect from the bank to provide to substantiate the clarification sought by them so that the concerned banks can be requested to provide the available details. The department is requested to process the proposal at the earliest. Representative from the department informed that they have sent a letter in this regard to Lead Bank seeking further clarification and informed that copies of the loan application, sanction ticket, notice sent to borrowers asking them to repay the loan and reply given by the borrowers or any letter from the borrowers informing the reasons for non-payment could be sent to the department for processing the same. The Department also requested for complete details of the Scheme. The forum requested all the banks to send to lead bank the copies of the above so as to take up with Department of Fisheries and Fishermen welfare. The forum requested the department to put-up the proposal afresh in view of the prevailing circumstances. The forum was informed that a meeting of all the banks and the concerned department would be held shortly. Action : Concerned Banks & Department of Fisheries, Government of Puducherry Page 8 of 16

9 2.4. Issues in various stages of consideration with Department of Revenue & Disaster Management. The forum was informed of the issues which are in various stages of consideration with Department of Revenue and Disaster Management. Financing of Licensed Cultivators (Tenant Farmers)-Loan Eligibility Cards to such farmers. Implementation of online verification of land ownership details of farmers in UT of Puducherry..Inclusion of Private Sector Banks, RRB and other Financial Institutions in Notification of Government on EM registration. Suitable amendments to Puducherry Revenue Recovery Act 1970 to give adequate powers to improve the recovery of outstanding overdues under Government Sponsored Schemes is being discussed for long time Lead Bank is regularly following up with the department on the above points. It has been informed by the department that they are under active consideration at various levels. The above issues are pending for a long time and lead bank has been constantly following up with the concerned department. The department is being repeatedly impressed upon the benefits for all concerned. We have been informed that the issues are under active consideration at various levels. In the recent meeting with the concerned officials, we have again requested to pursue the matter with concerned authorities so as to have an early solution for the issues. The department is requested to inform the developments in this regard periodically to inform the members. As representative from the Department of Revenue and Disaster Management was not available the forum requested Lead Bank to take-up the matter separately with Government of Puducherry so as to find solution to these issues. Action : Government of Puducherry, Department of Revenue & Disaster Management AGENDA: 3 New Issues 3.1 Ground Level Credit Agriculture- Allocation of agency wise targets. The forum was informed of the letter received from NABARD, Mumbai that Hon'ble Union Finance Minister in his budget speech for the year has set ground level credit (GLC) target for Agriculture at Rs Crores and has allocated target for UT of Puducherry agency wise and purpose wise as follows. It has also been informed that the allocation made is not an upper ceiling for credit disbursement to agriculture sector by banks in the respective states and wherever the agriculture credit target, based on Annual Credit Plan is higher than what has now been allotted, the higher target shall be retained for implementation and monitoring. Accordingly suitable reallocation would be made within crop loan & Term Loans among banks within the overall target of Rs.767 Crores as approved under Annual Credit Plan which is same as the new allocation of NABARD. The forum requests member banks to make all out efforts to achieve targets under crop loan and term loans. 3.2 Action points of the meeting of commercial banks on Agriculture lending Road Map for Deputy General Manager, informed that NABARD, Mumbai vide their letter has forwarded the minutes of the meeting held regarding status and issues related to agriculture lending and the road map for The same is placed for information and necessary action by members of the forum for the achievement of various targets under Annual credit plan under Agriculture. Page 9 of 16

10 3.3 Agri. Clinic and Agri. Business Centres Scheme (ACABC) The forum was informed that Government of India has communicated that the Agri. Clinic and Agri. Business Centres Scheme (ACABC) would also be applicable for the current financial year as per the extant guidelines. Hence banks were requested to finance more Agri. Clinics in UT of Puducherry 3.4 Rajiv Rinn Yojana (RRY) Convenor informed that the guidelines and target under the above scheme were placed in the previous meeting for information of the forum. We have been informed by Government of India Ministry of Housing and Urban poverty alleviation that the detailed guidelines have been uploaded on the Ministry's website Page.htm. They have also requested for suitable allocation of targets among the banks. The bank-wise allocation would be communicated shortly. Members were requested to finance eligible projects under the scheme so as to achieve the targets. 3.5 Dairy Entrepreneurship Development Scheme (DEDS) Deputy General Manager informed that NABARD, Chennai has communicated that some common deficiencies are observed by them in the implementation of DED Scheme which is causing avoidable delay in successful implementation of the same. The letter received from NABARD was placed for information and necessary action by banks. 3.6 PMRY Subsidy The forum was informed that Reserve Bank of India, Chennai has communicated that large number of beneficiaries of PMRY Scheme who had availed loan prior to 2008 are yet to receive the subsidy amount as the reconciliation of PMRY subsidy account of various State Government is pending with Government of India subsequent to introduction of PMEGP from The subsidy is likely to be introduced in multiple phases. Hence all the banks were requested to sensitize the borrowers regarding the same. 3.7 National Urban Livelihood Mission The Convenor informed that as National Rural Livelihood Mission (NRLM) would be implemented in rural areas and would be replacing SGSY. National Urban livelihood Mission (NULM) would be replacing SJSRY which has been implemented in Urban areas from onwards. The scheme guidelines are available in website Guidelines regarding Self Employment Programme (SEP) were placed for information of the forum. 3.8 Potential Linked Credit Plan (PLP) The forum was informed that Potential Linked Credit Plan (PLP) prepared by NABARD based in the potential available under various sectors is an important tool to guide the banks on lending. Pre-PLP meetings are held with line departments and banks to arrive at the available potential for the ensuing year. Reserve Bank of India has requested to conducting such meeting in the Month of June every year instead of August. Hence all the line departments and banks were requested to take note of the same and requested to inform the details so as to place the same in the ensuing pre PLP meeting. Page 10 of 16

11 Agenda 4 - Review of performance of Commercial Banks - Position as at the end of March 2014 The forum was informed that there are 41 Banking having 214 branches and Financial (PIPDIC & SIDBI) Institutions providing credit and other facilities in the Union Territory of Puducherry. In Karaikal Region there are 44 bank branches. Per branch population for UTP works out to 5813 and for Karaikal it is placed at During the period under review of the growth in deposit is placed at 11.07% and advances at 10.43%. The position of deposit and Advances as on 31st March 2014 is Rs Crores and Rs Crores respectively. The CD ratio of Karaikal Region is placed at 107%. Out of 23 Public Sector Banks 16 banks have CD ratio more than 60%. 11 out of 13 Private Sector Banks have CD ratio more than 60%. RRB, PSCB and PCCLD bank also have CD ratio above 60%. Other banks are requested to lend more to improve their CD ratio. The outstanding advance under Priority Sector, Agriculture and Weaker Section continue to be above the stipulated RBI norms. There has been some increase in lending under DRI Scheme but it requires more lending to ensure achievement of the RBI norm for DRI advances also. Banks are requested to provide more credit is provided to SC/ST and Minorities also in tune with norms of Government of India. Action: All Banks to take steps for achievement of all norms and report the progress made. Agenda 5 - Review of performance under Annual Credit Plan Under Annual Credit Plan banks in Union Territory of Puducherry have achieved the targets by disbursing an amount of Rs Crores as against the target of Rs Crores. The level of achievement is %. The forum requested the banks to surpass the targets having the target as the minimum level. Action: All Banks are requested to achieve the targets in the ensuing years also under all sectors. Agenda 6 - Financial Inclusion The Convenor informed that under Financial Inclusion project starting from Nation Pilot Project for Financial Inclusion banks have opened new accounts upto March The bankers are also assisting the needy population by way of overdraft and General credit card. As on March 2014, credit facilities were extended to the tune of Rs lakhs to beneficiaries under OD/GCC scheme and Rs lakhs to 4607 beneficiaries under other facilities. Credit in the form OD/GCC and other facilities have been provided to the account holders by only some Public Sector Banks and 2 Private Sector Banks. All the banks are Banks are requested to extend more credit facilities to at least 10% of the account holders as per extant guidelines. Banks were requested to increase their coverage of FI accounts under loan schemes so as to make Financial Inclusion more meaningful. Financial services plan is being implemented in 67 villages of Union Territory. All these villages are being covered with banking services through Branches/Banking Service Centres/Ultra Small Branches/Business Correspondent Agents (BCA) etc. In BCA villages smart cards are provided to the account holders and services are provided at their doorsteps. Total number of candidates trained through INDSETI up to March 2014 was 2646 through 105 programmes since inception. Since , 7233 clients have availed indoor counselling services offered by Financial Literacy and Credit Counselling Centre upto the same period. Banks are requested to fully utilize these institutions. They are also requested to provide credit Page 11 of 16

12 facilities to INSETI trained candidates. Banks are requested to conduct Financial Literacy Campaigns in all their rural branches and service area villages. Action: All Banks. Agenda 7 - Flow of Credit to Agriculture The members were informed that during the year banks have achieved the target for Agriculture sector. As against an annual target of Rs Crores banks have disbursed an amount of Rs Crores to accounts. The major share is for Short Term crop production loans. Term loans were provided to agriculture and allied activities to the tune of Rs Crores to 2061 accounts. Banks are requested to take note of the target for the current year and achieve the targets especially set for investment credit under agriculture by lending more to such projects under agriculture and allied activities including for Agri. Clinics. They are also requested to lend more to tenant farmers and oral lessees and also under Debt swap scheme. All the crop loans given to notified crops in the notified area are to be invariably covered under NAIS. Action: All Banks to finance more investment credit projects under Agriculture. Agenda 8 - Review of Recovery Performance under various Schemes as of March 2014 The forum was informed of the recovery performance under various Government sponsored schemes. The rate of recovery under PMRY was at 27%, SJSRY (USEP) is placed at 43%, under group loans (SJSRY- DWCUA) was at 69% and under SGSY the rate was at 79%. Banks and line departments were requested to take steps to improve the rate of recovery in all the schemes including group schemes. The rate of recovery under priority sector was at 77%. Action : Line departments to co-ordinate to improve rate of recovery. Agenda 9 - Review of performance under Government Sponsored Schemes in UT of Puducherry The Deputy General Manager informed that under Government Sponsored Schemes of PMEGP 48 new projects were sanctioned during the year involving an amount of Rs Lakhs and the margin money utilization was Rs lakhs. With regard to consideration of the pending applications under current year target the representative from KVIC clarified that there is no need for revalidation and requested the banks to consider the pending application under current programme year. The forum requested bankers and line departments to work in close co-ordination right from proper identification of the applicants and also to closely follow-up with the banks for disposal of the same as per time norms of RBI. Concerned Departments are requested to inform the targets for the current programme year. Action: All Banks and Departments implementing Government Sponsored Schemes. Agenda 10 - Performances under Housing, Educational loan and NFS The Convenor informed that during the year , the total disbursement made to Housing Sector was Rs Crores in 1320 accounts and 2631 students were provided educational loans to the tune of Rs Crores. Under non-farm sector Rs Crores were disbursed to 3867 accounts during the same period. All the banks are requested to actively participate to ensure adequate lending in the above sectors. Action: All Banks. Page 12 of 16

13 Agenda 11 - Disbursement to Minority Community, SC/ST and Women beneficiaries The forum was informed that up to March 2014 banks have disbursed an amount of Rs Crores to 8691 beneficiaries belonging to minority Community and the outstanding advances also increased to Rs which amounts to 12.67% of the total priority sector lending. With little more efforts the lending is to be increased so as to achieve the level of 15%. During the same period 4377 SC/ST beneficiaries have been disbursed an amount of Rs Crores and Rs Crores were disbursed to women beneficiaries. Action: All Banks to take steps to achieve targets under SC/ST & Minorities lending. Agenda 12 - Performance under KCC and SHG credit linkage The Convenor informed the forum of the performance under KCC as on , wherein members have issued new KCC to the tune of Rs Crores, covering 8329 beneficiaries and requested the members to route all the crop loans through new KCC Scheme. Under SHG bank linkage as of March 2014 the forum was informed that 397 new SHG accounts were opened whereby the total number of SHG accounts in banks has increased to groups have been credit linked to the tune of Rs Lakhs and 1068 groups' availed repeat finance amounting to Rs Lakhs. All Banks are requested to ensure proper functioning of SHGs. The rate of recovery should not be allowed to decline. More credit is to be provided to SHGs as per the guidelines for sustaining the viability and for betterment of the society. Action: All Banks. Agenda 13 - Submission of LBR 2 and LBR 3 Returns The forum appreciated the banks for ensuring 100% submission of Lead Bank Returns and requested them to maintain the same in the ensuing quarters. Banks were also requested to ensure correct and timely submission of statements so that actual performance can be reviewed. Action: All Banks. Agenda 14 - Stimulus package to MSME Sector The report regarding stimulus package on the credit delivery to Micro, Small and Medium Enterprise Sector as on was placed for information and discussion of the forum. Members were requested to ensure submission of report in time. Action: All Banks to report the progress made. Agenda 15 Annual Credit Plan The forum was informed that the Potential Linked Plan (PLP) for was released in the SLBC meeting held on which envisages a plan potential to the tune of Rs Crores in Union Territory of Puducherry. Based on the PLP, Annual Credit Plan for has been prepared by banks. The details regarding Annual Credit Plan of the banks as approved in the last meeting has been sent to the banks. The Annual Credit Plan outlay is placed at Rs Crores showing an increase of Rs Crores over the plan outlay for In percentage terms it works out to 6.86% growth rate. Considering the performance during the earlier years the outlay projected is reasonable. The Non Farm Sector shall be provided with Rs Crores accounting for a share of 18.03% of the total outlay as compared to Rs Crores allocated during The outlay to service sector is projected at Rs Crores Page 13 of 16

14 against the outlay of Rs Crores during There has been an increase of 13.64% in the other priority sector. The same was approved by the forum. Agenda 16 - Annual Financial Services Plan for FI Villages The Convenor informed that 67 villages have been allotted to 11 banks in UT of Puducherry and accordingly all the concerned banks have prepared the Annual Financial Services Plan The plan takes into account the existing facilities being extended by the banks and the potential for the villages as envisaged by the banks. All the households of the villages are having SB accounts with banks and the majority of accounts are with the service area banks. The eligible households have also been provided with various credit facilities. The plan includes additional facilities to be provided to households. The plan envisages opening of SB accounts in these villages during the year The credit facilities in the form of SB cum OD, GCC, KCC etc are to be provided to accounts amounting to Rs Crores. Insurance products both life and non-life are to be provided to 2030 households and 1525 persons are proposed to be enrolled in Micro Pension Schemes. The same was approved by the forum. A Booklet containing Annual Credit Plan and Annual Financial Services Plan was released in the meeting and handed over to all the dignitaries on the dais. Any other matter with the permission of the chair General Manager, PSCB, informed the members of the problems they are facing with overdue societies maintaining and operating accounts with other commercial banks without obtaining permission from Registrar of Co-operative Societies. The Convenor informed that the matter was already discussed in the previous meeting wherein all the banks were requested to follow the extant guidelines in this regard. With regard to any specific instance the forum requested PSCB to write to Lead Bank for taking up with concerned bank. The forum requested all the banks to do the needful in this regard as per the guidelines. Shri T Parameswaran, Lead District Manager in his vote of thanks thanked Executive Director for his valuable suggestions during discussions. He also thanked all the dignitaries on the dais for their valuable suggestions and interventions during the discussions on agenda items. He made special mention of address by Shri Anandrao Patil, Director, DFS through video conferencing. He thanked all the members for their contribution to the lively discussions on the various points. He thanked the officials of Government Departments and representatives from member banks for their active interactions. mi egk izca/kd,oa la;kstd &,l,ychlh Deputy General Manager & Convenor - SLBC Page 14 of 16

15 List of participants of the SLBC convened on S.No. Name (Sarvashri) Designation 1. R Raj Kumar Executive Director Indian Bank, Chennai 2. Chandraker Bharti IAS Development Commissioner Government of Puducherry cum Secretary (Finance) 3. V Candavelou IAS Secretary (Housing) Government of Puducherry 4. Anandrao V Patil IAS Director (AC & IR),DFS, GOI Through VC from New Delhi 5. J Sadakkadulla Regional Director RBI, Chennai 6. S Raja General Manager RPCD, RBI, Chennai 7. Arunachalaraman Director DEAP, RBI, Chennai 8. G Manoharan General Manager Indian Bank, Chennai 9. E Selvasekaran DGM Indian Bank, Chennai 10. S Parthasarathy DGM & SLBC Convenor Indian Bank, Puducherry 11. S Veera Shankar DGM NABARD, Chennai 12. Uma Gurumurthy DDM NABARD, Puducherry BANKS/FINANCIAL INSTITUTIONS S.No. Name (S/Shree) Designation Bank 1. D Devaraj Chairman PBGB 2. Hemant KumarJmadagni Divisional Manager Canara Bank 3. O S Gnanasekaran Assistant General Manager Indian Bank 4. I Gopal Assistant General Manager UCO Bank 5. S P Singh Assistant General Manager Bank of India 6. S T Sridhar Assistant General Manager Andhra Bank 7. M Gopu Assistant General Manager IDBI Bank 8. T Parameswaran Chief Manager (LDM) Indian Bank 9. PKumarasamy Chief Manager State Bank of Travancore 10. T Sivasubramanian Chief Manager Tamilnad Mercantile Bank 11. S Basker General Manager PSCB 12. K Lakshmanan Regional Credit Manager ICICI Bank 13. A R Mayavel Senior Manager Bank of Baroda 14. G S Chandrasekaran Senior Manager Punjab National Bank 15. S Malaravan Senior Manager Oriental Bank of Commerce 16. R S N Muralidharan Senior Manager Central Bank of India 17. R Vasudevan Senior Manager Canara Bank 18. S Loganathan Counsellor FLCC, Puducherry 19. P Augilane Director INDSETI, Puducherry 20. N Lokasamy Senior Manager Syndicate Bank 21. K Guru Prasad Senior Branch Manager Karnataka Bank 22. Parameswar Kusum Senior Manager Punjab & Sind Bank 23. N Ravi Senior Manager Allahabad Bank 24. Sibi K Jose Senior Manager Federal Bank 25. G Gowthaman Branch Manager Bank of Maharashtra 26. VVenkata Narayana Branch Manager State Bank of Mysore 27. A Arunachalam District Co-ordinator State Bank of India 28. T Srinivasan Manager (RD) Indian Overeseas Bank 29. A Rajesh Operational Manager HDFC Bank 30. R Suriyendran Branch Manager State Bank of Hyderabad 31. Renuka Devi Branch Manager Dena Bank 32. D Sivaram Manager Vijaya Bank Page 15 of 16

16 BANKS/FINANCIAL INSTITUTIONS (Contd.) S.No. Name (S/Shree) Designation Bank 33. W Christopher Robin Regional Representative NHB 34. Jenny Marks Manager Indian Bank 35. M Gowtham Manager Indian Bank 36. M Babuji Manager Karur Vysya Bank 37. R Ramamurthy Manager PCCLD Bank 38. S Gopala Krishnan Assistant Manager Lakshmi Vilas Bank 39. Abhilash Assistant Manager Union Bank of India 40. Tumu Vijaya Kumar Assistant Manager SIDBi 41. P Udhya Kumar Assistant Manager City Union Bank 42. C Arun Assistant Manager Catholic Syrian Bank 43. Shashi Kant Pandey Assistant Manager Corporation Bank 44. Thahir Ahammad Assistant Manager South Indian Bank 45. C V Raman Assistant Manager Andhra Bank 46. Ravi Kant Yadav Officer United Bank of India INSURANCE COMPANIES S.No. Name (S/Shree) Designation Bank 1. P K Muralikrishna Deputy Manager National Insurance Company 2. S Shivasankaramurthy Deputy Manager AICI 3. P Elango Assistant Manager New India Assurance GOVERNMENT DEPARTMENTS/BOARD/CORPORATION S.No. Name (S/Shree) Designation Department 1. S Vaittianadane Director Dept. of Economics & Statistics 2. P Padmanaban Director Animal Husbandry Department 3. Sirish Choudary ADG UIDAI Bangalore 4. K Ganesan Joint Director Animal Husbandry Department 5. R Asokan Deputy Director Dept. of Planning and Research 6. V Jayanand Deputy Director Dept. of Fisheries 7. M Thilagam Deputy Director Dept. of Adi Dravidar Welfare 8. S Kannan Functional Manager DIC 9. Chitra Madhan Development Officer KVIC Chennai 10. K Deivasigamani Consultant DRDA 11. P Sekizhan Executive Officer PKVIB 12. V Anantharaman Veterinary. Asst Surgeon Animal Husbandry Department 13. K Theepanjan Dy. Functional Manager DIC 14. R Ravichandran Superintendent Dept. of Adi Dravidar Welfare 15. R Komathi Manager (Schemes) PCDWHP 16. T Kandasamy Treasury Officer Department of Accounts & Treasury 17. K Sugumar Agricultural Officer Department of Agriculture 18. Sandiramouly UDC Social Welfare Department Page 16 of 16