120 th Meeting of State Level Bankers Committee (Punjab)

Transcription

1 120 th Meeting of State Level Bankers Committee (Punjab) The 120 th meeting of State Level Bankers Committee (Punjab) will be held on at 2.45 PM at Hotel Mount View, Sector 10, Chandigarh. Following issues shall be taken up for discussions in the meeting:- Item No.1 Confirmation of minutes of 119 th Meeting of State Level Bankers' Committee (Punjab) held on Last Meeting of SLBC 119 th Held On Minutes ed /Circulated On Comments Received NIL The House may confirm the circulated minutes. ITEM NO. 2 PROVIDING KISSAN CREDIT CARDS CARDS TO ALL NON DEFAULTER FARMERS & GENERAL CREDIT CARD TO NON FARMERS. The Department of Financial Services, MOF, GOI through various communications and Video Conferences have been laying stress on the coverage of all the willing non-defaulter farmers with KCC facility. There is no detail of willing non-defaulter Agenda papers of 120 th SLBC Meeting Page 1

2 farmers with concerned Departments of State Government who have yet to avail the facility of KCC. All the banks were requested to go in campaign mode for providing KCC facility to the farmers in the command area of their each branch. Now, Department of Financial services, MOF, GOI vide their letter have advised the banks as under :- dated In order to implement the strategy of Financial Inclusion, Government vide DO letter no. 1(4)/011-CP dated 1 st September 2011 had advised the Banks to issue Kisan Credit Cards to all eligible farmers and to issue General Credit Cards to non-farmers. However, on review, the progress of coverage of all farmers/ nonfarmers has been observed as slow. All Banks have been advised by the Ministry to ensure that KCCs/ GCCs are issued to all eligible farmers/ non-farmers by April, This will be got randomly checked by officials from Department of Financial Services. Each branch must obtain a certificate from the village head to this effect. It needs to be ensured that the farmers are given agriculture credit for the next Kharif crop, as required. Banks are also requested to fix a target of increase of at least 25 percent in the number of farm loan accounts as well as credit extended in financial year The action taken in this regard is to be intimated on Priority to Director (AC) at dirac-dfs@nic.in under intimation to convener SLBC. Convener Bank vide its letter dated has advised all the Member Banks to issue KCCs to all the eligible farmers & GCCs to all the non-farmers and a certificate to the effect be obtained from the Sarpanch/Pradhan of the village and kept on record. Agenda papers of 120 th SLBC Meeting Page 2

3 Member Banks are requested to seek confirmation from each branch and branch-wise record to this effect be held at the Controlling Office of each Bank. The House may discuss. Item No.2(a) Issuance of Weaver Credit Card & Implementation of Revival and Restructuring Package for Handloom Sector With a view to promote the Handloom Sector, which largely comprises of Small & Tiny units, where large no. of weavers are working and their financial needs are being met through informal channel, the Government of India, Ministry of Textiles has formulated a Novel scheme of Weavers Credit Card Scheme. The scheme will go a long way in supporting the government initiatives for the well being of the weavers and to improve the quality of loans assets of Banks. Convener Bank has taken up the matter with controlling heads of Banks to provide the information for outstanding Weaver Cards as desired by NABARD. Convener Bank has not received any information from any Bank for number of outstanding Weaver Cards. Controlling Heads of all the Banks are requested to issue fresh Weaver Card as per the Novel Scheme of Weavers Credit Card launched by Ministry of Textile. Item No. 3 Status report of issues flagged in the 119 th meeting of SLBC held on I Electronic Benefit Transfer (EBT) for Government Schemes. 7 blocks were allocated to banks by State Govt. on pilot basis on One District One Bank basis for implementation of EBT Scheme in the State. Initially the pace of implementation of the scheme in these blocks was found to be slow. The State Govt. also decided to go slow Agenda papers of 120 th SLBC Meeting Page 3

4 on EBT. During the deliberations in the 119 th meeting of SLBC held on , Shri S. C. Agrawal, IAS, the then Chief Secretary to Government of Punjab apprised the house that the progress of two blocks namely Mansa and Samrala in Mansa & Ludhiana respectively was put up, to the Government. The decision on implementation of Electronic Benefit Transfer (EBT) for Government Schemes will be taken only on the formation of new Government in the State. In para 7 of the Strategy and guidelines on Financial Inclusion issued by the Ministry of Finance, Department of Financial Services, Government of India, vide their letter dated , it has been stated that the transfer of subsidies under 32 schemes of Government of India in to the accounts of the beneficiary under EBT would enhance the efficiency of delivery of such services. Benefits in the area covered under financial inclusion must be transferred electronically into the accounts of the beneficiaries. Ministry of Finance, Department of Financial Services, Government of India, vide their letter dated have desired to submit the current status of implementation of EBT in the State. The newly formed Govt. has evinced interest in EBT for Govt. Schemes. In this regard, a meeting on EBT implementation in the State convened on at Punjab Bhawan, Chandigarh by Department of Social Security, Women & Child development, Government of Punjab and chaired by Shri Rakesh Singh, IAS, Chief Secretary, Government of Punjab was attended by Senior Officers from Finance, Social Welfare and Rural Development Departments of State Government, UIDAI, RBI and Chairman (SLBC). Agenda papers of 120 th SLBC Meeting Page 4

5 The Chief Secretary, Government of Punjab, in his address informed the members that Punjab Government was keen to implement EBT in the State for Government Schemes. All social benefits/payments should be transferred through the single account of each beneficiary. For this to happen, the Banks have to create a robust architecture for delivering these benefits at the door steps of beneficiaries. It also envisages electronification of concerned files of the Government Departments. The electronic payment architecture would be from Govt. office to State level banker to Distt. Level banker and then to banks as per Service area plan. All such schemes of various Departments of State Government would be routed through the Principal Secretary, Finance Department. One District One Lead Bank and many Banks model which supports BC structure, would be adopted in Punjab for smooth implementation of EBT for Government Schemes and other monetary benefits. The unbanked villages with population less than 2000 in the State be allocated by SLBC to different banks on service area approach in a honey comb fashion keeping Gram Panchayat as a basic unit so that enrolment work is started immediately thereafter. The accounts of EBT beneficiaries residing in villages yet to be covered under Financial Inclusion would be opened on priority. A Minimum administrative unit (such as block, panchayat, district) be decided for implementation of EBT. Convener Bank vide dated advised all LDMs in the State to allocate the remaining unbanked villages in the State on the above lines and report the names of villages along with their Districts to SLBC Secretariat for placing before SLBC forum for approval. Agenda papers of 120 th SLBC Meeting Page 5

6 The Deputy Director General-UIDAI mentioned that Aadhaar enabled payment system will be the best base for developing various payment architecture. There should be ceding of Aadhaar by Government and banks. It will help in deduplicaiton, avoid impersonation. Banks should bring Aadhaar on board. Of three Districts viz. Nawanshahr, Fatehgarh Sahib and Gurdaspur where Aadhaar is being rolled out on pilot basis, Aadhaar based enrolment is 80% in Nawanshahar. The House may discuss issues relating to EBT implementation in the State of Punjab. 3.II Debt Swap Scheme Raising the Limit of loan under the Scheme During the deliberations in the 1 st Steering Committee to SLBC held on , the House showed concern that Andhra Bank, BOM, Canara Bank, Dena Bank, SBBJ, United Bank of India, Vijaya Bank, IDBI, J&K Bank, Capital Local Area Bank, ICICI Bank and Axis Bank have neither raised the limit under the above scheme nor informed the decision of their Banks to the Convener Bank inspite of letters dated and addressed to the General Managers, Priority Sector & Lead Bank of their Corporate offices. Information in this respect has not been received from above banks. House may discuss. 3.III 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. Agenda papers of 120 th SLBC Meeting Page 6

7 The progress achieved up to March-2012 is as follows:- (Amount ` in Lakh) Target for Debt Swap (on the basis of 3% of Agriculture) Achievement Under Debt Swap up to %age Achievement March (Bank wise progress is as per Annexure II The House may review. 3.IV Allotment of Land for Establishment of RSETIs 16 RSETIs are operating in the State of Punjab. The land has been allocated in 17 Districts and possession has been taken in 9 Districts i.e. (Amritsar, Bathinda, Barnala, Firozepur, Moga, Mohali, Muktsar, Ropar & Sangrur) for setting up of RSETIS. During the deliberation in the 1 st Steering committee meeting to SLBC held on , the representatives from the Department of Rural Development apprised the house that allotment of land in the remaining three districts i.e Jalandhar, Nawan Shahr and Ropar is under consideration of Panchayat Department and they would take up matter with the latter The representative of the Department of Rural Development has informed that the banks have to take possession of the land as the same has been taken in 9 districts only. It was resolved that LDMs will take up the matter with the District administration for taking possession of the land. Agenda papers of 120 th SLBC Meeting Page 7

8 The representative of Department of Rural Development may apprise the house of the latest developments in the matter of allocation of land in the remaining Districts for setting up of RSETIs. Convener Bank has been informed by the Chief Project Coordinator monitoring cell for RSETIs, National Academy of RudSeti, Bangalore, vide his letter of that Shri Anandi Lal ( - (Mobile ) has been selected as State Project Coordinator for the States of Punjab and Haryana to ensure uniform standard of training and settlement of rates across the country. The State Project Coordinator will take up the monitoring/mentoring responsibilities by which each RSETIs/Rudseti will be able to achieve the target of training 750 candidates a year with 70% settlement rates by 3 rd year of RSETIs operation. State Project Coordinator would be representing RSETIs in the State level Steering Committee as a member. From the data of progress of RSETIs up to March 2012, it has been observed that:- 453 training programes of skill development were organized trainees participated trainees were financed by the banks to start their Enterprises and 3502 trainees set up their own enterprise through owned funds. Out of total trainees, 7616 were formed SC/ST category, 1355 from OBC, 10 from minority and 2777 were from other categories Women and 43 Handicapped persons were also provided training for self-employment. The House may discuss. Performance of the 16 RSETIs functioning in the State upto March 2012 is given on (Annexure.iii) Agenda papers of 120 th SLBC Meeting Page 8

9 Lead District Manager, Ludhiana apprised the house in the 118 th meeting of SLBC that their bank has been allocated land at Ludhiana for settling up RSETI for which they have received Rs.100 lakhs from Ministry of Rural Development, Govt. of India for construction of building. They have applied for NOC and CLU for which the concerned department is demanding Rs.38 lakhs as fee for CLU & EDC. The matter was taken up with FC (Rural Development Department) for waivement of CLU & EDC Charges because after paying the above charges, the building with the left out amount cannot be constructed. Financial Commissioner (Rural Dev. Deptt.,) has written to the CTP that no CLU and EDC be charged. The Convener bank took up the matter with Director, IF&B and Rural Development Deptt., Punjab vide its letter dated The representative of IF&B/Rural Development Deptt. is requested to apprise the latest / position in the matter. Item No.4: High Level Committee to Review Lead Bank Recommendations for providing Banking Services in every Unbanked village having population of over 2000 by March unbanked villages in the State of Punjab with population of more than 2000 were allocated to different banks on the basis of Service Area Approach for implementation of Financial Inclusion Plan in providing the banking services in these villages. All the villages having population more than 2000 have been covered by the concerned banks. Status of Financial Inclusion Plan as at : Agenda papers of 120 th SLBC Meeting Page 9

10 The position of coverage of villages is as under:- Total Number of Villages Brick & Mortar Model Mode of Coverage Ultra Small branches BC Model Through Mobile Van (The bank wise Progress in FIP is as per Annexure-iv ) The House may discuss. Item No. 4.I Allocation of unbanked villages with population less than During the deliberation in the 1 st Steering Committee meeting to SLBC held on , it was informed that, LDMs have already been advised to allocate the villages having population less than 2000 on service area approach keeping Gram Panchayat as a unit. The representatives of the AXIS Bank and ICICI have informed that their Banks have not been allocated sufficient number of villages having population between 1000 to Both of them were requested to raise this issue through their DCOs in DCC meetings. While releasing the monetary policy on , RBI has mandated SLBCs to notionally allocate unbanked villages with population less than 2000 to banks for providing banking services. LDMs have been requested by SLBC to allocate these villages to different banks on service area approach in a honey comb fashion by keeping Gram Panchayat is a base unit and inform SLBC the names of villages as also the districts for placing before SLBC forum. Item No. 4.2 Strategy and Guidelines on Financial Inclusion- Agenda papers of 120 th SLBC Meeting Page 10

11 Opening of Bank Branches. Department of Financial Services, Ministry of Finance, Government of India vide its letter dated read with dated has informed that Banks are required to open a regular brick and mortar branch in habitation with population of 5000 and above in under banked districts and as many brick and mortar branches in habitation having population and above in other districts. These branches are to be set up by September Only Mansa District has been identified as under banked in the State of Punjab by Reserve Bank of India and the following three villages have been identified as unbanked by the concerned LDM:- Sr. No. Name of the Population Name of the Bank to whom Village village allocated. 1. Kishangarh Urf 5501 Sutlej Gramin Bank Sedha Singhwala 2. Aklia 7513 State Bank of India 3. Nangal Kalan 7031 Allahabad Bank There is no unbanked villages in Punjab having population equal to or more than Agenda papers of 120 th SLBC Meeting Page 11

12 Controlling heads of above Banks are requested to ensure compliance of these guidelines. Item No.4.3 Strategy and Guidelines on Financial Inclusion Opening of Ultra Small Branches. The Department of Financial Services, Ministry of Finance, Govt. of India vide their communication dated have issued guidelines for opening of Ultra Small Branches in the areas where opening of regular brick & mortar branch was not viable. A format devised by DFS, MOF incorporating progress of opening of Ultra Small Branches annexed as Annexure-IV s required to be submitted to SLBC Secretariat of each State by 2 nd of every month enabling us to consolidate the position pan State and forward it to DFS, Ministry of Finance by next day. Controlling heads banks are requested to apprise the house of their plan for opening of branches in the allocated villages. Item No. 4.4 AVAILABILITY OF DATA ENTRY MODULE FOR GIS FOR FINANCIAL INCLUSION THROUGH WEB SITE OF DFS Financial Inclusion is one of the important contributors for inclusive growth of the economy. Realizing its importance, Department of Financial Services, Ministry of Finance Government of India has approached NIC for mapping these facilities and to identify the gaps. The first step to meet the above requirements is to capture information like of number of bank branches, ATMs, Business Correspondents (BC), Clearing Houses (CH), and Clearing Chests (CC). NIC has developed a web based application to facilitate the data collection. The data is proposed to be Agenda papers of 120 th SLBC Meeting Page 12

13 captured using standard State, District, Sub-District, Village/Town codes of Census A web based application would enable access through a hyper link on website of Department of Financial Services ( Each LDM is required to enter the data in respect of both urban and rural location of his district. This set of information is mandatory and would be used for GIS purposes. Convener Bank advised all the Lead District Manager for uploading the GIS data on the website of the Ministry of Finance latest by LDMs are requested to upload the data and confirm the same to Convener Bank. Item No. 4.5 Common Business Correspondent for villages in a State- Issuance of Common RFP. Department of Financial Services (DFS), Ministry of Finance, Government of India desired that Business Correspondent (BC) be deployed by the banks in a Geographical contiguous area (cluster) comprising of villages with population of 2000 and above allocated to different banks under Financial Inclusion Plan. This will help in making BC operations more viable. The BC for each cluster is to be short listed through a tendering process. DFS, vide mail dated April 27, 2012 has conveyed the clusters of villages and the leader banks responsible for issue of RFP and finalization of BC for the cluster. State Bank of India has been assigned the task of drafting the model Request for Proposal (RFP) for this purpose. The states of Haryana, Punjab, HP and J&K have been included in one cluster and Punjab National Bank (PNB) has been entrusted with the responsibility of floating the RFP and finalization of the bids. PNB has since issued the RFP which is placed on the web site of the bank under tenders section. The RFP shall cover 4788 villages with population of 2000 and above and 532 villages with population of 1000 to A committee comprising of the SLBC convener bank, the leader bank (PNB), and four other banks having maximum number of villages in the cluster shall be formed to finalize the bids received. House may discuss. Agenda papers of 120 th SLBC Meeting Page 13

14 Item No. 4.6 Sub- Committee to SLBC on FIP The meeting of the above sub committee constituted by SLBC, to discuss in depth the issues relating to FIP, was held on wherein the progress of banks under FIP was reviewed and following main observations made:- Banks to intensify their efforts in opening more no frill accounts as in some cases, the number of accounts opened was found to be less than the number of house holds in that village. Accounts opened under FIP be kept under constant monitoring to keep these operational. Banks should also monitor recovery in overdraft allowed in Saving Bank account. LDMs should monitor and review in each DCC meeting the number No Frill Accounts opened. Villages with population less than 2000 be allocated on service area approach with Gram Panchayat as a unit. The minutes of the meeting are placed in Annexure-XXXVIII.. This is for the information of the House. Agenda papers of 120 th SLBC Meeting Page 14

15 Item No. 5 Agriculture Debt Waiver & Debt Relief Scheme Fresh Lending Progress up to March-12 is as under:- The information as at March-12 in respect of Debt Waiver and Debt Relief (Amount ` in Lakh) 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 V) Observations Banks in Punjab have provided fresh credit to the extent of ` lakh which is 89.07% of total waiver & relief provided, covering accounts i.e.23.23% of farmers benefited under the scheme. The Public Sector Banks have provided fresh loans to the extent of ` lakh which is % of the amount of waiver & relief covering 28.79% of farmers benefited under the scheme. Agenda papers of 120 th SLBC Meeting Page 15

16 The Private Sector Banks covered 9 farmers of 1517 benefitted under the scheme. 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 34% of the amount of waiver & relief covering 18.61% of the farmers under the scheme. 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. 6 Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) During the deliberation in the 1 st Steering Committee meeting to SLBC held on ,the representative of PMIDC informed that Secretary Local Bodies has written a DO letter dated to all DDR and Commissioners NACs for sponsoring of cases under ISHUP, but they have not received any response so far. It was resolved that PMIDC should take up effectively for implementation of the scheme. this regard. The representative of PMIDC/IF&B may apprise the latest position in Agenda papers of 120 th SLBC Meeting Page 16

17 Item No. 7 Financial Literacy cum Credit Counseling Centre. The consolidated performance of the FLCCs up to March 2012 is given below:- (Amount ` in Lakh) Particulars Number of persons who made enquiries No. of persons who availed services Amount mobilized/ disbursed/ Invested During current Cumul ative During current Cumul ative During current Cumulat ive Quarter Quarter Quarter Deposit A/Cs Credit Related Education Loans Debt Swap Industrial Loans Guidance on investments other than banking services Total (District wise progress is as per Annexure-vi&vi(a)) Observations Agenda papers of 120 th SLBC Meeting Page 17

18 During quarter ended March 2012, Financial Literacy cum Credit Counseling Centre have entertained enquiries from 8547persons out of which 3269 persons have availed the services after getting counseling from the centers. Out of the above, 2417 persons made enquiries about Deposit Schemes of banks, 3923 enquiries were credit related, 711 persons enquired about the Education Loan Scheme, 77 enquiries were made about the Debt Swap Scheme of Banks, 110 persons enquired about Industrial loans and as many as 1309 enquires were made in respect of investments & other than banking services. During the deliberation in the 1 st Steering Committee meeting held on , the progress of FLCCs in the State was reviewed. It was desired that banks should work towards setting up FLCCs at block level and at least one FLCC be opened in every block of each District be set up. The House may review the performance of FLCCs. Item No. 8 Review of Performance of Banks (excluding Coop. Banks) in key areas relating to Deposits, Advances & Priority Sector Advances. The comparative position of key banking parameters is given below: (Amount Rs. in crore) Parameter As At Variation March 2010 March 2011 March 2012 March / March March / March Absolute %age Absolute %age Branches Agenda papers of 120 th SLBC Meeting Page 18

19 Agg. Dep Advances PS Adv Agri. Adv Adv. to Micro & Small Enterprises (MSEs) Weaker Sector Adv. DRI Adv (Bank-wise position as at March 2012 is given in Annexure VII(i)-VII(iii) 8. I Branch Expansion 317 new branches of Commercial Banks were opened in the State during the period from 1 st April 2011 to 31 st March 2012, thus raising the network of branches from 3808 as at 1 st April 2011 to 4125 as at 31 st March Area wise analysis is summarized below:- Number As At Variation of Branches March 2010 March 2011 March 2012 March 2011/ March 2010 March 2012/ March 2011 Absolute Absolute Rural Semi Urban Urban Total Observations Agenda papers of 120 th SLBC Meeting Page 19

20 During the review period, increase in number of branches/ conversion of extension counters of banks in Semi Urban area of Punjab was of the order of 91. This is followed by rural areas, which registered an increase of branches/ conversion of extension counters to the tune of 133. Whereas the increase of branch network is 93 in urban areas. This is for information of the House. 8.II Deposit Growth The aggregate deposits of the Banks in Punjab increased by ` crore, from ` crore as at March 2011 to ` crore as at March 2012, thus posting a growth of 12.35% as against an increase of 17.30% during the corresponding period last year. (Amount Rs. in Crore) Total As At Variation Advances March 2010 March 2011 March 2012 March 2011 / March 2010 March 2012 / March 2011 Absolute %age Absolute %age Rural Semi Urban Urban Total Observations During the review period, the deposits in urban areas have increased by 15.64%,in semi urban areas have gone up by 8.20% and in rural areas the deposit growth is 11.83%. Agenda papers of 120 th SLBC Meeting Page 20

21 This is for information of the House. 8.III Credit Expansion Gross credit in the State increased by ` crore, from ` crore as at March-2011 to ` crore as at March 2012, thus exhibiting a growth of % as against 22.93% during the same period last year. Area wise analysis is summarized below:- (Amount Rs. in Crore) Total As At Variation Advances March 2010 March 2011 March 2012 March 2011 / March 2010 March 2012 / March 2011 Absolute %age Absolute %age Rural Semi Urban Urban Total Observations During the review period, the growth in outstanding advances in urban areas was 27.62% whereas in semi urban & rural areas it was 8.68% & 16.27% respectively. This is for information of the House. 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 Agenda papers of 120 th SLBC Meeting Page 21

22 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 Hoshiarpur % by % by % by The comparative position of Monitorable Action Plan and CD Ratio (net of NRI deposits) as at March 10 & March 11 of these four districts is given below:- District CD Ratio (%) as at March 09/ March CD Ratio % (including NRI Deposits) as at Mar.11 CD Ratio % (including NRI Deposits) as at Mar.12 Growth March 12/ March 11 (PPs) CD Ratio % (Net of NRI Deposits) as at Mar-11 CD Ratio % (Net of NRI Deposits) as at Mar-12 Growth March 12/ March 11 (PPs) Agenda papers of 120 th SLBC Meeting Page 22

23 10 as per MAP Jalandhar 60 (Mar.15) Kapurthala 60 (Mar.15) Nawanshahr 60 (Mar.15) Hoshiarpur 60 (Mar.12) Observations:- The CD Ratio (including NRI deposits) has increased in Kapurhtala District and decreased Hoshiarpur, Nawanshahr & Jalandhar District. The CD ratio net of NRI deposits increased in Hoshiarpur District whereas the same has declined in Jalandhar & Nawanshahr & Kapurthala District. LDM Hoshiarpur to intensify his efforts to enhance CD ratio to reach the bench mark 60% from existing level i.e 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. The House may review the CD Ratio vis a vis MAP to improve CD Ratio of these identified districts. 8. IV. i. Overall CD Ratio Agenda papers of 120 th SLBC Meeting Page 23

24 The CD ratio of District Ropar is also hovering around 40% for quite some time. The LDM Ropar was requested by Convener Bank to make all out efforts to suitably enhance CD ratio of his district, otherwise the special sub committee to DCC for regular monitoring of the 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. below:- The comparative position of overall CD Ratio of Commercial Banks is as Period CD Ratio % Variation March March March (Bank wise CD Ratio as at Mar. 12 is as per Annexure VIII (i). (District wise CD Ratio as at Mar. 12 is as per Annexure VIII (ii) Observations During the period under review overall CD Ratio of Commercial Banks for the State of Punjab witnessed an increase of 0.10 PPs from 78.10% as at March to 81.80% as at March-2012 The House may review the overall CD Ratio. 8. IV. ii. CD Ratio - Rural Areas Agenda papers of 120 th SLBC Meeting Page 24

25 follows:- The comparative position of CD Ratio of rural areas in Punjab is as (Amount Rs. in crore) Period Rural Variation Deposit Advances CD Ratio % PPs March March March Observations During the review period, the CD Ratio of Rural areas has increased by 2.24 PPs from 56.39% as at March-11 to 58.63% as at March-12. This is for information of the House. 8. IV. iii. CD Ratio - Semi Urban Areas follows:- The comparative position of CD Ratio of Semi Urban areas in Punjab is as (Amount Rs. in crore) Period Semi Urban Variation Deposit Advances CD Ratio % PPs March March March Observations Agenda papers of 120 th SLBC Meeting Page 25

26 During the review period, the CD Ratio of Semi Urban areas has declined by 2.62 PPs from 65.48% as at March-11 to 62.86% as at March-12. This is for information of the House. 8. IV. iv. CD Ratio - Urban Areas follows:- The comparative position of CD Ratio of urban areas in Punjab is as (Amount Rs. in crore) Period Semi Urban Variation Deposit Advances CD Ratio % PPs March March March Observations During the review period, the CD Ratio of Urban areas has increased by PPs from 65.48% as at March-11 to % as at March-12. This is for information of the House. 8.IV.v. CD Ratio on the basis of credit as per utilization and Resource support under Rural Infrastructure Development Fund of NABARD As per the information available, NABARD has provided resource support of ` crore up to March-12 to Punjab Government under RIDF for Agenda papers of 120 th SLBC Meeting Page 26

27 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 83%. 8. IV. vi. Credit plus Investment to Deposit Ratio 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 March-12 the Credit plus Investment to Deposit Ratio is as follows:- (Amount ` in crore) Deposits Advances plus investments in State Government (C+I)/D Ratio bonds % (Detail of investment in securities & Bonds as per Annex.VII (v) 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 83.65% as per detail given as under:- (Amount ` in crore) S.N. Particulars Deposits Advances CD Ratio 1. Commercial Banks/RRBs Including Cooperative Banks Agenda papers of 120 th SLBC Meeting Page 27

28 3. Including Punjab Agri. Dev Banks* 4. Including Financial Institutions** *Advances PADB (` crore) **Financial Institutions PFC (` crore), PSIDC (` Crore), SIDBI (` crore). The CD Ratio of Financial System as at March-12 is 83.65%. This is for information of the House. 8.V Priority Sector Advances During the period under review, the Priority Sector Advances in Punjab grew by Rs 8218 crore, from Rs crore as at March-2011 to Rs crore as at March-2012 thus showing a growth of 13.32% as against an increase of Rs crore or 23.04% during the corresponding period previous year. The share of incremental PS advances to incremental advances during the period under review is 38%. 8.VI Agriculture Advances The Agriculture Advances in the State during the period under review witnessed an increase of Rs crore, from Rs crore as at March-2011 to Rs crore as at March-2012 thus showing a growth of % as against an increase of Rs crore or 26.72% during the same period last year. Agenda papers of 120 th SLBC Meeting Page 28

29 8.VII Advances to Micro & Small Enterprises (MSEs) The advances to Micro & Small Enterprises during the period under review registered an increase of Rs crore, from Rs crore as at March-2011 to Rs crore as at March-2012, thus showing a growth of 27.91% as against an increase of Rs crore or 28.48% during the corresponding period previous year. 8.VIII Advances to Weaker Sector During the period under review, the advances to Weaker Sector increased by Rs crore, from Rs crore as at March-2011 to Rs crore as at March-2012, thus registering a growth of 36.06% as against an increase of Rs crore or 32.95% during the same period last year. 8.IX DRI Advances As per extant guidelines 10 loans per rural branch per quarter are to be made by all Scheduled Commercial Banks instead of 5 loans per branch per quarter in the past. The progress achieved in DRI Advances up to March-2012 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-IX). Agenda papers of 120 th SLBC Meeting Page 29

30 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 According to guidelines of RBI, the banks are to achieve the 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 % March 2010 March 2011 March 2012 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 d) DRI Adv. to Total Adv. of Pre. Year e) CD Ratio (Rural & Semi Urban) f) Women Beneficiaries Advances to NBC [Bank-wise performance under National Goals is as per Annexure-X(i)-X(ii)]. Observations: Agenda papers of 120 th SLBC Meeting Page 30

31 The ratio of Priority Sector Advances to Net Bank Credit as at March- 12 stands at 58% as against National Goal of 40%. The share of Agriculture Advances to Net Bank Credit, as at March-12 is 30% against the National Goal of 18%. The share of Direct Agriculture Advances to Net Bank Credit is 24% against National Goal of 13.5% and share of Indirect Agriculture Advances is 6% against National Goal of 4.5%. The advances to Weaker Sector are 16% of Net Bank Credit, as against National Goal of 10%. The Ratio of DRI advances to total advances of previous year is below the level of 1% at 0.02%. The CD Ratio of Rural & Semi Urban area is 61% against the national goal of 60%. The advances to Women Beneficiaries constitute 7.21 % of Net Bank Credit, against the National Goal of 5%. The House may review. Item no 9 (i) Advances under Education Loan Schemes The comparative progress is as follows:- (Amount Rs. in Crore) Year Accounts Balance Increase O/S Absolute %age March March % March (Bank-wise position as at March 2012 is as per Annexure-xi). During the period under review, the advances under Education Loan schemes of banks has witnessed an increase of ` crore from ` crore as at March-2011 to ` crore as at March Agenda papers of 120 th SLBC Meeting Page 31

32 Item No. 9(ii) Education loan to Women (Amt. in lakh) Total Amt advanced during the quarter Out of which advances made to women during the quarter % of advances made to women No. of Amount No. of Amount No. of Amount account account account (Bank-wise position as at March 2012 is as per Annexure-xi). During the quarter ended March 2012, the banks in the State of Punjab have made 1916 education loans amounting to Rs.9321 lakh, out of which 591 loans amounting to Rs.2710 lakh have been made to women. The percentage of loans advanced to women comes to 30.84% & 29.07% respectively for Number of accounts and amount advanced. This is for the information of the House. 9. (iii) Collateral Free Education Loans & Position of NPA outstanding in Education Loans As per RBI guidelines the banks are required to grant collateral free education loan upto ` 4 lacs. The need to implement the guidelines of RBI is emphasized in each meeting of SLBC also. The relevant data in this regard for quarter ended March-2012 is placed below:- (Amt. in ` lakhs) Agenda papers of 120 th SLBC Meeting Page 32

33 Number of Education Loan accounts outstanding as at quarter ended March-2012 Amount of Education Loan outstanding as at quarter ended March-2012 Out of 2, NPA outstanding as at quarter ended March %age of NPA under Education Loan as at quarter ended March Out of 2, education loan granted collateral free Out of 5, NPA outstanding as at quarter ended March (35%) (4.31% (Bankwise detail as per annexure-xii 9 (iv). Advances to Minority Communities. The House may discuss. The comparative position is given below: (Amount Rs. in Crore) Minority March 2010 March 2011 %age March 2012 %age Growth Community Growth A/Cs Amt. A/Cs Amt. A/Cs Amt. o/s o/s o/s Muslims Christians Budhists Zoroastrians Total (Bank-wise position as at March 2012 is as per Annexure-XIII(i)-XIII(ii). The overall advances to minority communities have registered an increase of ` crore, from ` crore as at March-11 to ` crore as at March- 12, thus showing a growth of 10.96%. During the quarter ended March-12, banks disbursed advances to the tune of ` crore to borrowers belonging to minority communities. The bank-wise position is given as per Annexure XIV (i) (ii). The House may review the performance. Agenda papers of 120 th SLBC Meeting Page 33

34 9. (v) Advances to Women Beneficiaries below The comparative position of advances to women beneficiaries is given (Amount Rs. in Crore) Year Accounts Amt. O/S Increase %age to Net Bank Credit Absolute %age March March March (Bank-wise position as at March-2012 is as per Annexure- XV(i)(ii). The overall advances to women beneficiaries witnessed an increase of ` crore from ` crore as at March-2011 to ` crore as at March 2012, thus registering a growth of 30 %. In the State of Punjab, the share of advances to women beneficiaries to Net Bank Credit as at March-2012 stands at 7.21%, against the target of 5%. The bank-wise position in respect of advances to women beneficiaries to total advances as at March-2012 is given as per Annexure XV (I,ii). During the quarter ended March 2012, banks disbursed advances to the tune of ` crore to women beneficiaries. The bank-wise position is given at Annexure-XVI. 9. (vi) Advances to SC Beneficiaries Agenda papers of 120 th SLBC Meeting Page 34

35 under:- The comparative position of advances to SC beneficiaries is given as Year Accounts Balance Outstanding March (Amount Rs. in Crore) Increase Absolute %age March % March [Bank-wise position as at March 2012 is given in Annexure- VII (iii)]. The overall advances to SC beneficiaries witnessed an increase of ` crore during the period under review, from ` crore as at March to ` crore as at March-2012, thus showing a growth of 37% as against an increase of ` crore or 25.3% during the same period last year. The House may review please. REVIEW OF GOVT. SPONSORED SCHEMES & PROGRAMMES Item No.10. Review of Govt. Sponsored Schemes & Programmes 10.I. SGSY - progress up to A) Total Assistance Agenda papers of 120 th SLBC Meeting Page 35

36 (Amt. Rs. in Lakh) Particulars March March 12 No. Amt. No. Amt. Total number of Beneficiaries (both SHGs & Individual Swarozgaris) to whom loans have been sanctioned Out of which SC Beneficiaries (Target being 50% of total) 7767 (76%) (76%) Women Beneficiaries (Target being 40% of the total) 6316 (62%) (60%) Handicapped Beneficiaries (Target being 3% of the total) 54 (0.5%) - 39 (0.4%) Target of Credit Disbursement Total Credit Disbursed % age Achievement - 106% 92% B) Through Self Help Groups Particulars March March 12 No. Amt. No. Amt. Number of Self Help Groups formed Number of SHGs undertaking economic activities Number of members of SHGs undertaking economic activities Out of which SC Beneficiaries (Target being 50% of total) (79%) Women Beneficiaries (Target being 40% of the total) (93%) Handicapped Beneficiaries (Target being 3% of the total) (0.5%) Loan disbursed Subsidy disbursed Total assistance Average assistance per member (Target) Average assistance (Achievement) Agenda papers of 120 th SLBC Meeting Page 36

37 C) Individual Swarozgari Progress (Amt. Rs. in Lakh) Particulars March March 12 No. Amt. No. Amt. Number of cases sponsored Cases sanctioned Out of which SC Beneficiaries (Target being 50% of total) (73%) (71%) Women Beneficiaries (Target being 40% of the total) (31%) (21%) Handicapped Beneficiaries (Target being 3% of the total) (0.53% (0.50%) Loan disbursed Subsidy disbursed Total assistance Average assistance per member (Target) Average assistance (Achievement) (District wise progress is as per Annexure-xvii) The Department of Rural Development in consultation with SLBC has chalked out the following quarterly schedule for disposal of cases under SGSY: Quarter Target for Disbursement During the Qtr. Cumulative I 15% 15% II 20% 35% III 30% 65% IV 35% 100% The House may discuss and review the progress. Item No. 10.ii Cash credit limit to SHGs-Clarification. Department of Financial Services, Ministry of Finance, Government of India vide its circular letter dated 17 th November 2011, has informed that SHGs were to be sanctioned only cash credit limit and where existing SHGs were concerned, their term loans were to be converted into cash credit limit by 31 st December, Now Department of Financial Services, Ministry of Finance, Government of India vide its letter no F.No3/37/2012-AC dated 2 nd April, 2012 has informed that some representations requesting for grant of term loan facility to SHGs Agenda papers of 120 th SLBC Meeting Page 37

38 have been received from IBA, Ministry of Rural Development and NABARD. The matter has been considered by Ministry of Finance and it has been decided that:- In those Government schemes which have back ended subsidy and release of subsidy is contingent on repayment of term loans, the SHGs can be extended term loans in such schemes. The term loans can also be given to those SHGs in such cases where the SHG undertake a group activity and the loan from the bank is taken to undertake SHG for that activity. The Self help Group will get a cash Credit limit in all cases other than those mentioned above. The members inter-se will get a term loan from the group. This is for information of the House. 10.iii 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 SHGs Gap From As on No. of No. of SHGs SHGs formed credit linked As on No. of No. of SHGs SHGs formed credit linked between formed & credit linked as on up to No. of No. of SHGs SHGs formed credit linked Observations (District wise Progress is as per Annexure XVIII). Agenda papers of 120 th SLBC Meeting Page 38

39 Up to , Self Help Groups have been formed out of which Groups have been linked with the bank finance since inception of the scheme. The gap between the SHGs formed & linked with bank credit is During the period ended up to March-2012, in all together2602 Groups have been formed. The pace of formation & credit linkage of SHGs needs to be further accelerated. The House may discuss the bank wise progress. 10. iv Prime Minister Employment Generation Programme (PMEGP) Progress up to 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 120 th SLBC Meeting Page 39