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AGENDA: 1 131st SLBC CONFIRMATION OF THE MINUTES OF THE EARLIER MEETINGThe minutes of the 130th State Level Bankers’ Committee Meeting convened on 28.06.2012 (already circulated vide SLBC letter dated 20.07.2012) may be confirmed.

AGENDA No: 2

New Issues 131st SLBC

1. Setting up of Rural Self-Employment Training Institutes (RSETIs)All the Four Banks having Lead District responsibilities have since opened RSETIs in the lead districts allotted to them (Total 31 RSETIs).In addition to the 12 Lead districts allotted, IOB has recently opened a RSETI (13th) at Kothagiri in Nilgiris District to impart skill training to Tribal People of the Nilgiris District. Performance of the RSETIs during April to August 2012: Sl No

Total Number of

RSETI

No of training programme

conducted during April- August(12-

13)

No of person

s trained

No of persons secured

employment/self employment

1 31 180 4823 2652

The following RSETIs functioning in Tamil Nadu have been awarded “A” grade among all the RSETIs in the country:

1) IOBRSETI ( Indian Overseas Bank) -Thanjavur & Trichy - A2) CANRSETI (Canara Bank) -Coimbatore, Theni, Nilgiris, Dindigul,

Erode & Madurai – A3) INDRSETI (Indian Bank) - Tiruvallur, Salem - A

The Directors of the above RSETIs have received the award from Shri.Jairam Ramesh, Union Minister of Rural Development in a function held on 28.07.2012 at Vigyan Bhavan Delhi. SLBC congratulates the Directors for their achievement.New Issues 131st SLBC

2. Setting up of Financial Literacy & Credit Counselling Centres (FLCCC)

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The High Level Committee set up by RBI had reiterated the necessity to cover initiatives under financial literacy and credit counselling while broad basing the Lead Bank scheme. On the basis of the above recommendation, RBI advised Lead Banks to open a Financial Literacy and Credit Counselling Centre (FLCCC) in every district where they have lead responsibility.

Four Lead banks namely IOB, Indian Bank, Canara Bank & State Bank of India have completed establishment of FLCCCs in their lead districts (31 districts). Apart from the four lead banks, Bank of India and ICICI Bank Ltd have opened FLCCC each one at Chennai. FLCCC Progress Report for the Quarter ended June 2012.

Sl. No

Name of the Bank No of FLCC

C

No.of persons

Counselled during the

quarter

No. of Outdoor activities undertaken during

the Quarter

No of persons

participated in outdoor activities

during the Quarter

1 IOB 13 772 78 45662 Indian Bank 10 1732 38 5393 Canara Bank 7 945 112 55484 SBI 2 0 0 05 BOI 1 66 0 06 ICICI Bank Ltd 1 106 1 15TOTAL 34 3621 229 10668

Though State Bank of India has set up FLCCCs at their lead districts (Ariyalur & Thoothukudi), they are yet to commence operations. State Bank of India is requested to take immediate steps to appoint counselors and to start Financial Literacy initiatives and Credit counselling.


3. Extension of Swabhiman – providing banking services in every villages having population of over 1600

A) Directions from Ministry of Finance, GOIMinistry of Finance, Government of India, have advised the revised guidelines on financial inclusion - “Extension of Swabhiman” for providing

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banking services in every village having population of over 1600 by March, 2013.

Total villages identified and allotted to various banks stands at 1676 (villages with population over 1600 to 2000) as per 2001 census. Numbers of Villages allotted to various Banks in Tamilnadu is displayed in SLBC website (www.slbctn.com).

As per the Monthly progress report submitted by banks in SW3 format, 98 villages only have been covered as on 31.07.2012. The details are furnished in the annexure. The progress is very low when compared to the total no. of 1676 villages to be covered. Member banks are requested to ensure extension of banking services to the allotted villages to the respective banks by before December, 2012 as already agreed in 130th

SLBC meeting held on 28.06.2012.

As the progress report is to be keyed in directly in the Ministry of Finance website before 5th of every month, all the participating banks are requested to submit the monthly progress report (SW3- format enclosed) to SLBC by the 5th of the succeeding month without fail.

B) Directions from Govt of Tamil NaduThe Chief Minister of Tamil Nadu has advised the banks to provide banking outlets in all villages in Tamil Nadu at the earliest. All banks accepted the views of the Chief Minister. It was also resolved in the 130 th

SLBC to cover all the villages in the State under Financial Inclusion by 31.03.2013 irrespective of the population.

SLBC has already advised all DCC Convenors and LDMS to identify the villages and allot to the banks. So far we have received the data from 21 LDMs on the allotment of villages to the member banks. Identification and allotment of all villages with 0-1600 population will be completed soon. Member banks are requested to cover all the villages with 0-1600 population before March, 2013.

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http://www.slbctn.com/

PLEASE REFER SCANNED IMAGE NO.1


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4. Campaign to ensure at least one Bank Account for each family in all villages and urban areas.

Initially, Ministry of finance, Government of India advised to launch a campaign to ensure each family living in the FI villages has an account with the branch to facilitate electronic benefit transfer of subsidies under the 32 schemes of Govt. of India. For such electronic transfer of subsides, it is important that the beneficiaries have an account in the service area bank in tune with the guidelines of the Reserve Bank of India on “ One District- Many Banks-One Leader Bank” Model .

Ministry of Finance, Government of India has clarified that opening of accounts should not be restricted only to FI Villages and the campaign should cover all the rural villages and urban areas by banks in their service area.

Copy of the clarification letter from Ministry of Finance dated 15.05.2012 is enclosed. Further, Ministry of Finance informed that, as per 2011 census, only 52.5% of the households have a bank account in Tamil Nadu which is very low when compared to many other states.In order to accomplish the account opening and to have proper monitoring of the progress the various modalities are suggested by Ministry of Finance letter dated 03.08.2012. A copy of the letter is enclosed. It has been decided in the special SLBC held on 10.08.2012 to ensure opening of “One bank account for one family” in all the villages and urban areas in the State.

All the member banks and Lead Districts Managers are requested to carry on the campaign for opening of accounts as per the directives. All member banks are requested to submit the monthly progress report on or before 4th of every succeeding month to SLBC.

The latest bank wise position as of 31st August,2012 in opening bank accounts for each family is enclosed.

STATE LEVEL BANKERS' COMMITTEE, TAMIL NADU

CONVENOR : INDIAN OVERSEAS BANK

Progress Report On One Bank Account for Each Family in all Villages and Urban Areas as on 31.08.2012

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S.No Name of the Bank

Total Number of Accounts Opened upto August 2012

1 Allahabad Bank 132272 Andhra Bank 11833 Axis Bank Ltd., 04 Bank of Baroda 537415 Bank of India 124226 Bank of Maharashtra 07 Canara Bank 3019698 Catholic Syrian Bank Ltd. 2259 Central Bank of India 69309

10 City Union Bank Ltd. 2597911 Corporation Bank 425212 Dena Bank 593813 Dhanalakshmi Bank Ltd. 17314 Federal Bank Ltd. 18215 HDFC Bank Ltd 140916 ICICI Bank Ltd 395517 IDBI Bank Ltd 018 Indian Bank 29438419 Indian Overseas Bank 53770020 Indus Ind Bank Ltd 021 ING Vysya Bank Ltd. 022 Jammu & Kashmir Bank Ltd 023 Karnataka Bank Ltd. 024 Karur Vysya Bank Ltd. 628125 Kotak Mahindra Bank Ltd 026 Lakshmi Vilas Bank Ltd. 027 Oriental Bank of Commerce 153928 Pallavan Grama Bank 1760929 Pandyan Grama Bank 10936030 Punjab & Sind Bank 0

S.No Name of the Bank

Total Number of Accounts Opened upto August 2012

31 Punjab National Bank 14480

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32 South Indian Bank Ltd. 607033 State Bank of Bikaner & Jaipur 034 State Bank of Hyderabad 035 State Bank of India 47570736 State Bank of Mysore 108937 State Bank of Patiala 038 State Bank of Travancore 5461039 Syndicate Bank 8282240 Tamil Nadu State Apex Co-op 041 Tamilnadu Mercantile Bank Ltd 65942 U C O Bank 82143 Union Bank of India 3811944 United Bank of India 045 Vijaya Bank 7127

TOTAL 2142341

F. No. 6/23/2012-FIGovernment of IndiaMinistry of Finance

Department of Financial Services*******

Jeevandeep Building, Sansad MargNew Delhi, dated the 24th July, 2012

To 8

All SLBC Convener Banks

Subject: (i) Urban Financial Inclusion - Launch of campaign to ensure at least one bank Account for each family

(ii) Capturing of Biometrics while opening accounts - regardingSir,

I am directed to refer to this Department’s letter no. F.No.8/11/2011-FI dated 15th May, 2012 wherein banks were advised to launch a campaign to ensure at least one bank account for each family in the service area of a branch having rural villages attached to it.

2. Government of India has been emphasising the need for transferring all benefits including MGNREGA wages and various cash subsidies to beneficiaries by direct credit to their bank accounts. These beneficiaries are not only inhabitants of rural villages but also comprises of urban poor and slum dwellers residing in the Urban/ Metro centres.

3. In order to provide banking services to entire population residing in Urban and Metro Centers – (Urban Financial Inclusion) , so as to financially include the urban poor, slum dwellers and the inhabitants of urban / metro villages and facilitate electronic benefit transfer in respect of benefits/ subsidies under various Government schemes directly into the account of the beneficiaries residing at these centres, it has been decided that the said campaign to ensure one bank account per family should also be launched in such Urban areas for the purpose of Urban Financial Inclusion .

4. All urban areas have a Municipal Corporation or a Municipality or a Municipal Council and the entire area is divided into “Wards”. Districts in Metros may not have Lead District Manager (LDM). Generally, the service area approach is not adopted for urban areas. In districts, where LDM has already been provided, necessary instructions may be issued to the LDMs

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to allocate a Ward or group of wards to a particular branch (for the purpose of opening of accounts as per instructions issued vide letter No. F.No.8/11/2011-FI dated 15th May, 2012) as follows:

(i) In Wards/ circle where a branch of bank exists, the responsibility should be entrusted to that branch;

(ii) In Wards/ Circle, where branch of more than one bank exists, the responsibility may be assigned to one of the branches operating in the ward.

(iii) In Wards/ circle where no branch of a bank exists, a neighbouring bank branch may be assigned the responsibility;

In case of non – lead Districts without LDMs, the above exercise of allocating wards to bank branches be done by a duly authorised senior officer of the SLBC convener bank. The allocation of branches for opening of accounts as above by LDM/ duly authorised officer be subsequently got ratified by SLBC.

5. It is under stood that under the campaign, some of the banks while opening accounts, are not capturing the biometric details of the customers and the campaign is restricted to FI villages. It is clarified that:

(a) The campaign is to be launched by the bank branch to open an account for the family in all villages attached to the service area of the branch and not just in FI villages. The subject matter of letter dated 15.05.2012 under reference may accordingly be read as “Launch of campaign to ensure at least one bank Account for each family in rural villages– regarding”.

(b) Since accounts opened under the campaign would facilitate EBT including transfer of all benefits and various cash subsidies to beneficiaries by direct credit to their bank accounts and the beneficiary

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should be able to withdraw the benefit from the BC channel, banks should while opening new bank accounts also ensure to capture biometric details of the customer (as done during the ‘Swabhimaan’ campaign) as per the standards notified in the recent RFP for engaging BCs.

6. All SLBC convener banks are requested to bring the contents of this letter to all member banks to ensure compliance.

Yours sincerely,

(J.K. Mehan )Under Secretary to Govt. of India (FI)

Tel: 23748767e-mail: [email protected]

Copy to: 1. Chief Secretary of all States/ UTs2. Secretary, (Urban Development), Ministry of Urban Development, Govt. of India3. CMDs of all PSBs4. CEOs of Pvt. Sector Banks5. CEOs of Cooperative Banks6. Chairmen of all RRBs ( through sponsor PSBs) 7. NIC – for uploading on the website of DFS

F. No. 6/23/2012-FIGovernment of IndiaMinistry of Finance

Department of Financial Services*******

Jeevandeep Building, Sansad Marg,New Delhi dated the 3rd August, 2012.

To1. Chairman/ CMDs of all PSBs2. Chairman of all RRBs ( through Sponsor banks) 2. All SLBC Convener BanksSubject: Opening of one bank account per family Sir,

Please refer to this Department’s circular FI dated 15th May 2012 regarding opening of one bank account per family to facilitate electronic benefit transfer and financial inclusion. It was clarified that families must have one account in a bank on Core banking Solution and having NEFT facility.

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mailto:[email protected]

2. It would be noted that, as per 2011 census, about 58.7% households, comprising of 54.4% rural households and 67.8% urban households, had reported availing banking facilities. Out of the 24.69 crore households, 14.48 crore households reported availing banking services. Nearly 10 crore households were not availing banking services. State wise details are enclosed.

3. Under Swabhimaan, over 3.25 crore bank accounts in rural areas have been opened. It would be seen that there still remains a large number of households which do not avail banking services. It was in the context of financial inclusion of the excluded and to facilitate the electronic benefit transfer that banks were advised to ensure opening of one bank account per family.

4. In order to accomplish the objective and to have proper monitoring of the progress the following modalities are suggested:

Opening of Bank Accounts

i. Service area bank in rural areas and banks assigned the responsibility in specific wards in urban area would be responsible for ensuring that every house hold has one bank account. This would be achieved in collaboration with other banks in the area

ii. Latest voter list of the area concerned may be taken as a reference for verifying that every house hold has a bank account.

iii. In case Cooperative or Urban Cooperative or Local Area Banks are on CBS and have NEFT facility, there should be no need to open another account in other bank.

iv. To facilitate Electronic benefit Transfer, the names of other family members can be added to any existing account. Banks need not insist on opening a new account unless the person concerned desires a new account.

v. Information about opening of bank accounts must be prominently displayed in the villages by the service area bank/designated bank along with the person/bank to be contacted.

Monitoring Progressvi. Lead District Managers in the districts and the SLBC Convenor in the State

would be responsible for monitoring and ensuring that every house hold has a bank account.

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vii. The figure for number of households as per the latest census data may be used to compare the number of saving bank accounts. Since many households would have more than one saving bank account, number of saving bank accounts should be over 100% of the number of households, preferably 125-140%.

viii. LDM and SLBC Convenor would compile information on number of households and the number of saving bank accounts every week to monitor progress.

ix. State wise information on the number of households and the number of saving bank accounts would be sent to the Department of Financial Services at [email protected] by 5th of every month by SLBC Convenor banks. This would be sent from August 2012.

5. CMDs of SLBC Convenor Bank would are expected to supervise and guide the process of opening of bank accounts in the respective states.6. This issues with the approval of Secretary ( FS) .

Yours faithfully,(Sandeep Kumar)

Director (FI) Encl: as above

Copy for information/ necessary action to: - All Nodal Officers of DFs for SLBCs

Annexure State wise Percentage of Households availing Banking Services in 2011

S. No.

India /State/Union Territory # Percentage of Households availing Banking services

01 A & N Islands 89.302 Andhra Pradesh 53.103 Arunachal Pradesh 53.004 Assam 44.105 Bihar 44.406 Chandigarh 80.107 Chhattisgarh 48.808 Dadra & Nagar Haveli 56.79 Daman & Diu 65.4

10 Delhi 77.711 Goa 86.812 Gujarat 57.913 Haryana 68.114 Himachal Pradesh 89.1

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mailto:[email protected]

15 Jammu & Kashmir 70.016 Jharkhand 54.017 Karnataka 61.118 Kerala 74.219 Lakshadweep 85.320 Madhya Pradesh 46.621 Maharashtra 68.922 Manipur 29.623 Meghalaya 37.524 Mizoram 54.925 Nagaland 34.926 Odisha 45.027 Puducherry 64.028 Punjab 65.229 Rajasthan 68.030 Sikkim 67.531 Tamil Nadu 52.532 Tripura 79.233 Uttar Pradesh 72.034 Uttarakhand 80.735 West Bengal 48.8

All INDIA 58.7

Tamil Nadu

No. of Households not having bank account : 87. 81 lacsNo. of accounts opened upto August 2012 : 21.43 lacsNo. of households yet to be covered : 66.38 lacs

Source: Census of India 2011

New Issues 131st SLBC5. Strategy and approach for “Electronic Benefit Transfer “ (EBT)Ministry of Finance, Government of India has advised that benefits like pension, subsidies and grants under 32 central government schemes should be transferred to the beneficiaries’ bank accounts by electronic transfer system only. Electronic benefit transfer system would include compilation of information on benefit transfer compatible with the banking system; transfer of funds to the beneficiaries’ accounts; facilities for withdrawal of the amount by the beneficiaries as per their requirement. This system will be extended progressively to the entire country. In order to transfer the benefit electronically to the beneficiaries’ accounts, the following strategies and approach are given by Ministry of Finance.

Opening of bank accounts for the beneficiaries and mapping the list of beneficiaries with the bank account details.

Transfer of benefit to the beneficiaries’ accounts with help of Central Plan Scheme Monitoring System (CPSMS).

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Till such time the departments are ready for transfer of benefits through CPSMS, they will furnish the electronic transfer details of beneficiaries by hard/soft copies to the banks and banks can start EBT.

Once, NPCI stabilized the EBT will be done by automated clearing house mechanism.

The charges to be reimbursed to the banks by the concerned department of Central government would be 1.5% of the value of the transaction or 25 % of the permissible administrative expenses, whichever less. Ministry of Finance has advised to allot districts to various Banks where they are Lead Banks for the pilot phase for Electronic Benefit Transfer System and this exercise should cover entire state immediately after completion of pilot phase in the districts allocated to banks. A special SLBC was conducted on 24.07.2012 for this purpose and it was decided to identify the pilot districts in consultation by State Govt. Departments and banks. All the member banks and State Govt. Departments are advised to comply with the above guidelines and ensure the smooth implementation of the scheme. Copy of the letter on the above subject received from Ministry of Finance dated 26.06.2012 is enclosed.

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6. Allocation of Targets for Educational loans

Ministry of finance, Government of India has allocated the educational loan target for the Public Sector Banks in the state for 2012-13. The total educational loan outstanding target for Tamil Nadu is Rs. 13950.09 crore for 2012-13.

The banks-wise allocation of the target is enclosed as annexure.

All the Public Sector Banks are advised to achieve the education loan target for 2012-13 and submit a monthly progress report on or before 5th

of every succeeding month to SLBC in the following format.

………………………………..Bank Progress Report for the month……………….

Total No. of Educational loans Amount outstanding for the State of Tamil Nadu

The latest public sector bank wise outstanding position as of 31st August, 2012 in educational loan is enclosed.

Copy of the letter on the captioned subject received from Ministry of Finance is enclosed.

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BANK-WISE ALLOCATION OF TARGET FOR EDUCTAIONAL LOAN 2012-13

(Rs in crore)

Sl.No Bank

Outstanding as on

31st March 2012

Outstanding Target

(Fixed) for 2012-13

Public Sector Banks 1 Allahabad Bank 53.95 66.002 Andhra Bank 96.97 118.633 Bank of Baroda 267.29 327.014 Bank of India 425.43 520.485 Bank of Maharashtra 20.36 24.916 Canara Bank 1488.21 1820.707 Central Bank of India 444.95 544.368 Corporation Bank 245.15 299.929 Dena Bank 29.56 36.16

10 Indian Bank 2504.33 3063.8411 Indian Overseas Bank 1733.2 2120.4312 Oriental Bank of Commerce 62.5 76.4613 Punjab National Bank 200.15 244.8714 Punjab & Sind Bank 3.67 4.4915 State Bank of B & J 24.52 30.0016 State Bank of Hyderabad 39.67 48.5317 State Bank of India 2342.55 2865.9118 State Bank of Mysore 91.68 112.1619 State Bank of Patiala 8.04 9.8420 State Bank of Travancore 211.13 258.3021 Syndicate Bank 377.93 462.3722 UCO Bank 238.68 292.0123 Union Bank of India 375.19 459.0124 United Bank of India 26.73 32.7025 Vijaya Bank 74.47 91.11

Other Public Sector Bank 26 IDBI 16.26 19.89

Total 11402.57 13950.09

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STATE LEVEL BANKERS' COMMITTEE, TAMIL NADUCONVENOR : INDIAN OVERSEAS BANK

PROGRESS REPORT ON EDUCATIONAL LOANS AS ON 31.08.2012Rs in Core

Sl.No Bank

Outstanding Target

Fixed by SLBC for 2012-13

Outstanding Target fixed by SLBC upto

August

Actual Outstandin

g as on 31.08.2012

Public Sector Banks 1 Allahabad Bank 66.00 56.63 60.852 Andhra Bank 118.63 101.78 105.403 Bank of Baroda 327.01 280.56 274.534 Bank of India 520.48 446.55 471.955 Bank of Maharashtra 24.91 21.37 25.536 Canara Bank 1820.70 1562.10 1659.377 Central Bank of India 544.36 467.04 481.818 Corporation Bank 299.92 257.32 245.159 Dena Bank 36.16 31.03 32.87

10 Indian Bank 3063.84 2628.67 2869.2511 Indian Overseas Bank 2120.43 1819.25 1887.3212 Oriental Bank of Commerce 76.46 65.60 64.9313 Punjab National Bank 244.87 210.09 231.6614 Punjab & Sind Bank 4.49 3.85 3.5715 State Bank of B & J 30.00 25.74 21.7916 State Bank of Hyderabad 48.53 41.64 41.9617 State Bank of India 2865.91 2458.85 2682.5918 State Bank of Mysore 112.16 96.23 98.9819 State Bank of Patiala 9.84 8.44 7.9520 State Bank of Travancore 258.30 221.61 228.1321 Syndicate Bank 462.37 396.69 579.2522 UCO Bank 292.01 250.53 248.623 Union Bank of India 459.01 393.82 420.6824 United Bank of India 32.70 28.06 25.7125 Vijaya Bank 91.11 78.17 78.96

Other Public Sector Bank

26 IDBI 19.89 17.07 18.02 Total 13950.09 11968.69 12866.81

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7. T.N. Government’s Old Age Pension Scheme - Money demanded from the beneficiaries by Business Correspondents

Tamil Nadu Government’s Old Age Pension scheme is being implemented successfully and the monthly pension is paid to the beneficiaries through banking channel at their village through business Correspondents using biometric enabled smart cards in 4445 villages in the state.

Recently, it has been reported in the newspapers that the BCs demand money from the beneficiaries out of the monthly payment of Old Age Pension and other such payments made through bank accounts.

All the member banks are advised to monitor closely the functioning of the Business Correspondents engaged by them in their F. I. Villages and guard against such incidents in future.

All banks are requested to ensure that necessary instructions have been sent down the line and the BCs are monitored on regular basis.

A copy of the letter dated 21.08.2012 on the captioned subject received from Reserve Bank of India is enclosed.

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8. Tamil Nadu Backward Classes Economic Development Corporation Limited (TABCEDCO), Implementation of Education Loan Scheme of NBCFDC

TABCEDCO is the State channelizing agency for Education Loan Scheme of NBCFDC (National Backward Classes Finance & Development Corporation, New Delhi). As they do not have any infrastructure at the district level they propose to implement the scheme through sub-channelising agencies like Nationalised Banks and Private Sector Banks.

A copy of the letter from the Managing Director, TABCEDCO and salient features of the scheme is enclosed. SLBC circulated the scheme to all the member banks vide their letter dated 25.07.2012 and requested them to offer their opinions and views on the scheme, to be placed in the SLBC meeting. We have received response only from two banks so far.

The members are requested to deliberate.

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9. Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH) Credit Risk Guarantee Scheme for Low Income Housing

In line with the Union Budget announcements in Financial Year 2010-11 and 2011-12, the Credit Risk Guarantee Fund Trust for Low Income Housing was constituted by the Government of India on 1st May, 2012 through the Ministry of Housing and Urban Poverty Alleviation. Under the arrangements, the National Housing Bank (NHB) will be managing the fund and will facilitate and oversee the implementation of the scheme.

The scheme will provide credit risk guarantee to the lending institutions against housing loans up to Rs 5.00 lacs for new or existing borrowers in the EWS / LIG categories without requiring any collateral security and / or third party guarantee. The extent of guarantee cover to be provided under the scheme is 90% of the amount in default in respect of loan amount upto Rs 2.00 lakhs and 85 % of the amount in default for housing loans above Rs 2.00 lakhs to Rs 5.00 lakhs.

The following lending institutions are eligible to avail benefit of the guarantee cover under the scheme of the Fund trust;1) Schedules Commercial Banks 2) Regional Rural Banks 3) Co-Operative Banks4) NBFC-MFIs 5) Apex Co-Operatives Housing Finance Societies registered under the State Co-Operative Societies Act 6) Housing Finance Institutions registered with National Housing Bank (NHB).

All member banks are requested to make use of the above schemes to extend housing loans to EWS/LIG.

A copy of the detailed scheme is enclosed as an annexure.

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PLEASE REFER SCANNED IMAGE NO. 6

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10. New Entrepreneur -Cum- Enterprise Development Scheme “(NEEDS)” of Government of Tamil Nadu

Department of Micro, Small and Medium Enterprises, Government of Tamil Nadu has formulated a new self-employment scheme namely “New Entrepreneur -Cum- Enterprise Development Scheme" (NEEDS) for first generation Entrepreneurs. The scheme is proposed to be implemented during the 12th Five year Plan (2012-2017). The Scheme aims to provide training to Young First Generation Entrepreneurs in conceiving, planning, initiating and launching a Manufacturing or Service enterprise successfully. On successful completion of the Training Program, they will be assisted to get Term Loan from Banks / TIIC to setup manufacturing or Service enterprises with Margin Money assistance at 25% of the Project cost not exceeding Rs.25.00 lakhs, to be provided by the State Government .The above scheme was discussed in the Special SLBC meeting held on 10.08.2012. Based on the suggestions given by member banks, revised draft guidelines were prepared by Department of Micro, Small and Medium Enterprises. The scheme is placed for approval by SLBC. The members are requested to deliberate on the above scheme. A copy of the revised draft guidelines on the captioned scheme is enclosed as an annexure.

DRAFT GUIDELINES FOR THE “NEW ENTREPRENEUR -CUM- ENTERPRISE DEVELOPMENT SCHEME (NEEDS)” TO BE IMPLEMENTED DURING THE 12TH FIVE YEAR PLAN (2012-2017)

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1. Introduction:

During the review meeting of the MSME Department conducted by the Hon’ble Chief Minister on 14.07.11, the Hon’ble Chief Minister desired that there should be a scheme under which educated youth would be imparted with Special Entrepreneurship Development Training to enable them to set up profitable self employment ventures for which they could be extended loan with margin money assistance upto Rs.25.00 lakhs from Government. She also directed that first generation Entrepreneurs should be given 25% reservation in various Industrial Estates in the State It was, therefore, decided in the above meeting to formulate a special scheme for Entrepreneurs in consultation with the Industries Department, integrating all the above features.

Accordingly, the Micro, Small and Medium Enterprises Department has formulated a new self-employment scheme under the name the name “New Entrepreneur -Cum- Enterprise Development Scheme" (NEEDS) for first generation Entrepreneurs, proposed to be implemented during the 12th Five year Plan (2012-2017). The Scheme aims to provide training to Young First Generation Entrepreneurs in conceiving, planning, initiating and launching a Manufacturing or Service enterprise successfully. On successful completion of the Training Program, they will be assisted to get Term Loan from Banks / TIIC to setup Manufacturing or Service enterprises with Margin Money assistance at 25% of the Project cost not exceeding Rs.25.00 lakhs, to be provided by the State Government .

The salient features of the scheme were presented before the Hon’ble Chief Minister in the review of Micro, Small and Medium Enterprises Department held on 22.02.2012 . The Hon’ble CM accepted the proposal and directed the Department to provide 50% reservation for women beneficiaries in the Scheme and also to give priority to destitute women with the required qualifications while selecting the beneficiaries.

This was also highlighted in the Budget Speech of the Hon'ble Minister for Finance while presenting the Annual Budget for 2012-13 on26.03.2012, wherein it was announced that “In order to assist

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educated youth to become first generation entrepreneurs, this Government will implement a new scheme called ‘New Entrepreneur-cum-Enterprise Development Scheme’ (NEEDS) from 2012-2013 onwards. Under this scheme, educated youth will be given entrepreneur training, assisted to prepare their business plans and helped to tie up with financial institutions to set up new business ventures, besides linking them with major industrial clients. They will be assisted to avail of term loans from Banks/Tamil Nadu Industrial Investment Corporation (TIIC) with capital subsidy at 25% of the project cost not exceeding Rs.25 lakhs and soft loans with 3% interest subvention. Around 1,000 entrepreneurs will be trained each year under this scheme. Under this scheme, at least 50% of the beneficiaries will be women. The Entrepreneur Development Institute and TIIC will play a crucial role in this process. A sum of Rs.100 Crores has been provided as capital subsidy and other assistance for this scheme in this Budget”.

2. Objectives

(i) Educated youth will be given entrepreneurship training to groom them as first generation entrepreneurs on the essentials of conceiving, planning, initiating and launching a Manufacturing or Service enterprise successfully.

(ii) On completion of the Training Program they would be assisted to prepare their Business Plans and helped to tie up with financial institutions to get Term Loan, to setup Manufacturing or Service enterprises with a project cost not exceeding Rs.1.00 Crore, with a capital subsidy of 25% of Project cost not exceeding Rs.25.00 lakhs with 3% interest subvention to be provided by the State Government.

(iii) Subject to availability, they would also be provided with reservation upto 25% for allotment of Plots/Sheds in SIDCO Industrial Estates in the State.

3. Target group :

Educated youth with any Degree, Diploma, ITI / Vocational Training from recognized Institutions, aspiring to become entrepreneurs would be eligible for assistance under the scheme.

4. State Level Nodal / Implementing Agencies:

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The Organisations listed below will act as the Nodal / Implementing Agencies for the successful implementation of the various components of the Scheme. The Industries Commissioner and Director of Industries and Commerce would be in over all charge of implementing the scheme under the supervision of the Principal Secretary, MSME Department.

Component of the Scheme

State Level Nodal Agency

Implementing AgenciesState Level District Level

1. Selection of beneficiaries

Commissionerate of Industries and Commerce , Chennai

Commissionerate of Industries and Commerce, Chennai

General Managers of DICs/ Regional Joint Director, Chennai

2. EDP Training

Entrepreneurship Development Institute (EDI) Chennai-32

Entrepreneurship Development Institute (EDI)

Entrepreneurship Development Institute (EDI)

3. Arranging for Term Loan from Banks/TIIC

Commissionerate of Industries and Commerce

Commissionerate of Industries and Commerce, Chennai /TIIC

General Managers of DICs/ Regional Joint Director, Chennai/Branch Manager TIIC

4. Allotment of Plots/Sheds in SIDCO Industrial Estates

Tamilnadu Small Industries Development Corporation Limited (TANSIDCO),Chennai

Tamilnadu Small Industries Development Corporation Limited (TANSIDCO), Chennai

Branch Offices of TANSIDCO in the Districts.

5. Training Institute :

The EDP Training will be imparted through Entrepreneurship Development Institute, Guindy, Chennai.

6. Methodology of the TrainingThe trainees will be exposed to Behavioural Components, Business

Opportunity Guidance, and Preparing bankable Business Plan, Information on Entrepreneurship support Institutions, Business Laws and Regulations related to Micro and Small Enterprises, Management issues and Technical Training in the specific technology sector. An innovative methodology by combining Behavioural & Management Games, Lecture cum discussion

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supported by audio–visuals, Interaction with successful entrepreneurs, Intensive Technical Training and Exposure visits will be adopted.

7. Duration of the Training programme and Batch Size:

Duration of the EDP Training programme will be for one month which includes 2 weeks theoretical training , 1 week for market survey and 1 week for preparation of Project Report. The Training will be more interactive in nature and, therefore, the batch size will be confined to 25.

A total of 1,000 entrepreneurs are proposed to be trained per year during the next 5 years from the year 2012-13 onwards, at an average of 40 Batches comprising of 25 trainees.

8. Course content

Entrepreneurship Development Programme has the following six components:

1. Behavioural Components 2. Business Opportunity Guidance3. Business Plan Preparation 4. Management Issues5. Laws regulating the Small Business6. Environment Scanning – An overview of the Entrepreneurship

support institutionsAccordingly, the Entrepreneurship Development Programme will be

structured to include the above six components. The contents of the course material are listed in Annexure-I.

9. Eligibility criteria:

a. Age : Minimum 21 years Maximum– 35 years for General CategoryMaximum– 45 years for Special Category of Entrepreneurs( Women/SC/ST/BC/MBC/ Minorities/Ex-Servicemen/Trans genders/ differently abled persons)

b. Academic Qualification

: Degree, Diploma, ITI / Vocational Training from recognized Institutions.

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c. Place of residence

: The applicant should be a resident of Tamil Nadu State for not less than 3 years.

d. Reservation : Scheduled Caste (SC) 18%Scheduled Tribe (ST) 1%Differently abled 3%Besides, 50% of the allocation would be earmarked for women beneficiaries under the Scheme with priority accorded to destitute women subject to the condition that they possess the required qualification. (In case the required number of candidates are not available to fill the reservation under SC/ST/ Differently abled candidates, the General Managers of District Industries Centres may consider other categories of eligible candidates ).

e. Income ceiling : There will be no income ceiling for assistance for setting up projects under this scheme.

f. Eligibility of Partnership firms

: Subject to satisfying the eligibility criteria by all the partners, partnership concerns may be considered for assistance under the scheme. However, EDP training will be provided to only one of the partners authorized by other partners in such cases.

g. Other conditions : Assistance under the Scheme is available only for NEW projects sanctioned specifically under the NEEDS. Entrepreneurs who have already availed assistance under PMRY, REGP, PMEGP, UYEGP, TAHDCO or any other scheme of Government of India or State Government will not be eligible for assistance under the NEEDS. Any applicant/entrepreneur who has availed loan for economic activity under SHG/other group activity will also not be eligible.The applicant should not be a defaulter to any Commercial Bank / TIIC.Entrepreneurs availing assistance under this scheme will not be eligible to avail capital subsidy under any other State Government schemes.

10. Activities covered:

All economically viable manufacturing and service activities are eligible under this scheme subject to appraisal for its viability as per the guidelines of TIIC/BANK. Priority will be given to projects which are eco-friendly, accord importance to energy conservation and are export- oriented. However, the activities listed in ANNEXURE-II will not be eligible for assistance under this scheme.

11. Selection of the beneficiaries: 65

Selection of beneficiaries for training will be done at the District level by a Task Force consisting of the District Collector as its Chairman, General Managers, District Industries Centres / Regional Joint Director, Chennai as Member – Convenor; Lead Bank Manager, Branch Manager of Banks / TIIC; Branch Manager, TANSIDCO; District Manager, TAHDCO; District Employment Officer, Representatives of EDI, MSME-DI, and local MSME Association as its members. Applicants would be screened by the District Level Task Force Committee.

12. Project Cost :

i) The minimum Project Cost will be above Rs.5.00 Lakhs and the maximum Project Cost will be Rs.1.00 Crore. For projects costing more than Rs.1.00 crore subsidy component will be restricted to Rs.25 lakhs.

ii) Cost of the land may be included in the Project cost at guideline value or market value, prevailing as on the date of filing loan application, whichever is lower.

iii) Cost of construction of buildings such as Office, Work-shed/Workshop, Laboratory etc., can be included in the project cost subject to the condition that the cost of building shall not exceed more than 25% of the total project cost. The valuation of the building eligible for subsidy will be assessed by General Managers, District Industries Centres / Regional Joint Director, Chennai in respect of bank financed units and Branch Manager of TIIC in respect of TIIC financed units as per the prevailing PWD Schedule of rates as on date of commencement of building construction or the cost of the building actually constructed as certified by the Chartered Engineer, whichever is lower. In respect of service enterprises, investment in Fixed Assets should not be less than 25%.

iv) The cost of leased/ rental building shall not be included in the Project cost.

v) In respect of plant and machinery only new machinery will be considered eligible and indigenous / imported second-hand machinery will not be considered for assistance. However, imported second-hand machinery directly imported by the entrepreneur would be considered eligible

vi) Project cost will include Capital Expenditure and margin money for Working Capital.

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vii) Capital Expenditure will generally include investment on Land, Building and Plant & Machinery only. Hence projects without Capital Expenditure are not eligible for financing under the Scheme.

viii) Self financed projects will not be eligible under this scheme.ix) TIIC/Banks are permitted to arrive at the components of project

cost based on their appraisal guidelines.

13. Promoters' Contribution:

a. 10% of the Project Cost for general category of entrepreneurs. b. 5% of the Project Cost in case of Special Category of entrepreneurs

(BC/MBC/DNC/SC/ST/Women / Minorities/Ex-Servicemen/Trans genders/ differently abled Entrepreneurs)

c. Value of the land may be considered as promoter’s contribution , either in part or in full, as per guideline value or market value, prevailing as on the date of filing loan application, whichever is lower, subject to the condition that the title of the land is in the name of the entrepreneur/enterprise proposed to be established.

14. Subsidy :

25% of the Project Cost subject to a ceiling of Rs.25.00 Lakh as subsidy from Government. However, the following expenses will not be considered for calculation of subsidy under this scheme:

i. Cost of rented/leased buildingii. Technical know-howiii. preliminary/ pre-operative expenses iv. working capital margin

15. Financial Institutions

i. Tamil Nadu Industrial Investment Corporation Limited (TIIC Ltd.)ii. All Commercial Banks including Regional Rural Banks (RRB), Small

Industries Development Bank of India (SIDBI).

16. Financial Target for TIIC/ District Industries Centres

The annual subsidy target will be distributed among TIIC:DICs/SIDBI at the ratio of 33:67.

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17. Term Loan:

i) TIIC/Banks will finance Capital Expenditure in the form of Term Loan and Working Capital in the form of cash credit. Projects can also be financed by TIIC/Banks in the form of Composite Loan consisting of Capital Expenditure and Working Capital.

ii) The amount of TIIC/Bank Credit will range between 65-70% of the total project cost after deducting 25% of subsidy and owner’s contribution of 10% from beneficiaries belonging to general category and 5% from beneficiaries belonging to special categories.

18. Rate of interest Enterprises financed by TIIC/Banks will be charged at the rate of

interest applicable to Micro & Small enterprises as per banking norms.

19. Interest subventioni. Enterprises financed by TIIC

Enterprises financed by TIIC will be extended loan with 3% interest rebate which will be reimbursed to TIIC on a quarterly basis. TIIC should send their claim to Industries Commissioner and Director of Industries and Commerce on completion of every quarter.

ii. Enterprises financed by BanksA back-ended interest subsidy at the rate of 3% will be provided to Entrepreneur financed by Banks on a quarterly basis during the entire repayment period. The Banks /Financial Institutions should send their claim to the concerned GM,DIC/ RJD, Chennai on completion of every quarter.

iii. Eligibility for availing interest subventiona) The Entrepreneur should have been prompt in repayment of loan

and interest.

b) If there is any default in repayment of loan and interest as per schedule of repayment fixed by Bank, interest subvention will not be paid during the period of default. However, if the Entrepreneurr subsequently pay the instalment, interest

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subvention alone shall be paid. Penal interest or charges for belated payment, if any shall not be paid by the Government.

c) The Enterprise should be in operation during the period for which interest subvention is claimed.

d) If the loan account is classified as NPA, interest subsidy will be withdrawn.

iv. Provision of Funds for Interest SubventionFunds will be released in advance to Commissionerate on quarterly basis to meet the interest subsidy claims of units assisted by TIIC/ Banks based on their annual projections. On submission of utilisation certificate for 90% of the funds from TIIC/ Banks, additional funds will be provided to TIIC/ DICs to meet further claims.

20. Collateral Security:

Collateral security will be decided as per Bank / TIIC guidelines. Subject to applicability, loans may also be covered under Credit Guarantee Fund Trust Scheme for Micro and Small Enterprises (CGT-MSE) of Government of India.

21. Operation of the Schemei. Project proposals in the prescribed application format with

relevant details will be invited at the District level by the General Managers of District Industries Centres and the Regional Joint Director, Chennai in respect of Chennai District.

ii. The applications received by District Industries Centres will be scrutinized and shall be placed before the Task Force Committee.

iii. The Selection will be based on qualification, skill, aptitude viability of the proposed project, marketability, interview / screening of the applicant, etc.

iv. The selected applications will be sent to the bank/TIIC branches by the General Manager, District Industries Centres in proportion to the target fixed by the Industries Commissioner and Director of Industries and Commerce.

v. The bank/TIIC branches shall assess the potentiality and will issue provisional sanction to eligible beneficiaries. The

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provisional sanctions shall be intimated to the concerned District Industries Centres.

vi. The District Industries Centres shall arrange for compulsory Entrepreneur Development Programme training by the Entrepreneur Development Institute and on completion, Entrepreneur Development Institute will issue training certificates.

vii. After successful completion of Entrepreneur Development Program training (EDP), those beneficiaries whoever applies, shall be allotted Developed Plot/Work Sheds, at SIDCO managed Industrial Estates, at the cost fixed by SIDCO, subject to the availability of the same on priority basis by SIDCO.

viii. Subsequently, the beneficiary will deposit the Promoter’s Contribution with the bank/TIIC.

ix. Thereafter, the bank/TIIC will disburse the 1st installment of the bank finance to the beneficiary.

x. The respective disbursement advices will be forwarded to District Industries Centres along with the subsidy claims.

xi. The Tamil Nadu Government subsidy amount will be drawn by the Industries Commissioner and Director of Industries and Commerce and disbursed to all the District Industries Centre/TIIC in proportion to their targets and it will be deposited in a separate PD account by the GM, DICs/RJD, Chennai/TIIC.

xii. On receipt of Subsidy claim raised by the Bank/TIIC branch, GM,DIC/ RJD, Chennai/CMD,TIIC will release the subsidy to Bank/TIIC branch in instalments depending on the project size as indicated below: The subsidy amount will be credited in beneficiary’s term loan account.

a. For project costs upto Rs.50 lakhs, subsidy will be released in 2 instalments. i.e. 50 % on sanction of loan and 50% later after verifying the capital expenditure actually incurred by the beneficiary.

b. For the project cost exceeding Rs.50 lakhs, subsidy will be released in 3 instalments i.e. 50% on sanction of loan and the remaining amount in two instalments of 25% each later after verifying the capital expenditure actually incurred by the beneficiary.

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c. The Bankers will release subsidy after conducting joint inspection with DIC representatives, in such a way to ensure that beneficiary is not constrained in any case by paucity of funds.

xiii. The Banks/TIIC should submit an utilisation certificate for the actual amount of subsidy utilised in respect of each beneficiary enterprise then and there.

xiv. Any unspent funds allotted for a particular Financial Year shall be carried over to next Financial Year to meet the training/ subsidy/interest subvention/ contingency components after obtaining concurrence from Government.

xv. The entrepreneur has to execute a Tripartite Agreement before the release of subsidy to be signed by the Beneficiary, General Manager, District Industries Centre and the Branch Manager of Bank/TIIC.

22. How to apply:

The scheme will be advertised in leading newspapers by the Commissionerate of Industries and Commerce, Chennai. The applicants aspiring to apply shall submit the application along with a brief project profile at the respective District Industries Centre with copies of relevant certificates such as proof of age, educational qualification and community.

23. Review & Monitoring:

The progress of the scheme will be reviewed by the District Collector at the District Level Bankers meetings conducted periodically with the bankers. At the State level, the progress of the Scheme will be monitored by the State Level Bankers Committee (SLBC). The Industries Commissioner & Director of Industries & Commerce will periodically review the progress of the scheme at the State Level.

24. Fund requirement per year A. Imparting EDP Training to 1000 Entrepreneurs per year (in batches of 25 Trainees). S. No. Item of Expenditure Amount in Rs.

1 Stipend to 25 trainees @ Rs.3,000/- p.m. per trainee for 1 month. (Towards conveyance & food

Rs.75,000

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expenses @ Rs. 120/- per trainee/ working day)

2 Training Expenses to EDI @ Rs.9,200/- per trainee (to meet honorarium charges to guest faculty/ resource persons per batch, rent / hire charges on training hall, administrative expenses to EDI including contingencies, other expenses such as fee for external training coordinators, preparation of course notes, course kit., certificates printing, travel expenses, etc.)

Rs.2,30,000

3. Administrative Expenses (IC&DIC) -including contingencies

Rs.30,000

Total Rs.3,35,000

[For conducting 40 batches, total fund requirement will be Rs.1.34 Crore per year (40 x 3,35,000) ]

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The following Expenses can be incurred by the Commissionerate of Industries and Commerce under Contingency Expenses

a. Conducting Motivation Campaignsb. Conducting Task Force selection meetingsc. Data Entry work engaging Data Entry Operatorsd. Petrol, Oil and Lubrication expenses to Office vehiclese. Printing of Stationery/Purchase of Consumables, accessoriesf. Hiring of vehiclesg. Stamps/postageh. Conducting review meetingsi. Developing application softwarej. Conducting evaluation studies

Funds for training would be provided to EDI by General Managers of District Industries Centre /RJD, Chennai,/CMD, TIIC in advance every quarter based on the training target. The EDI shall send regular monthly progress on completed training district-wise and utilisation certificate to Commissionerate on completion of every quarter.

B. Providing Subsidy Assistance to Trained Entrepreneurs:

Assuming about 800 of the trained Entrepreneurs would be sanctioned Term Loan by Banks/Financial Institutions in a year, and assuming the average Term Loan sanctioned is Rs.50.00 lakhs per enterprise, the Subsidy requirement would be Rs.100.00 crores per annum.

C. Providing 3% Interest subvention to the beneficiaries

The enterprises are eligible to avail 3% Interest rebate if financed by TIIC or 3% back-ended interest subsidy if financed by banks. Assuming the average Term Loan sanctioned is Rs.50.00 lakhs per enterprise, the interest subvention at 3%, the fund requirement would be Rs.7.20 crores per annum.

D. Publicity Expenses73

Fund shall be provided every year for meeting the expenses towards conducting State, Regional and District level workshops, seminars, Awareness camps and printing and publicity charges at the following rates to the Commissionerate of Industries and Commerce.

Sl. No

ItemAmountper year

(Rs.in Lakhs)

1 State level workshops, seminars etc. 5.00

2 District level workshops, seminars, Awareness camps etc., at the rate of Rs.1.00 Lakh per District for 32 Districts

32.00

Total 37.00

Total Fund Requirement for the scheme :

(Rs.in Crores)

Sl. No. Item of Expenditure

Amount

per year

For the year 2012-2013

1. For Imparting EDP Training to 1000 Entrepreneurs

1.34 1.34

2. For Providing Subsidy Assistance to 800 Trained Entrepreneurs:

100.00 100.00

3. For providing 3% Interest subvention to the beneficiaries

7.20 1.80

4. Publicity Expenses 0.37 0.37

Total 108.91 103.51

(Limited to 100.00)

Industries Commissioner & Director

of Industries and Commerce

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ANNEXURE-IEDP COURSE SYLLABUS

Sl. No. ContentI ARE YOU READY TO START YOUR BUSINESS?

1. The Charm of being an Entrepreneur2. You want to be an Entrepreneur?3. How Achievement Motivation Develops4. Entrepreneurial Competency

II SKETCHING DREAMS OF YOUR OWN VENTURE5. Do I Need to Plan?6. Decisions an Entrepreneur needs to take7. Procedures and Formalities for Starting new Venture

III SOURCES OF SUPPORT FOR ENTREPRENEURS8. Sources of Non-Financial Support for SSI Entrepreneurs9. Business Information: Sources, Services and Systems10. Incentives and Benefits Available to SSI Entrepreneurs

IV HOW TO IDENTIFY AND SELECT A GOOD BUSINESS OPPORTUNITY11. Identification and Selection of Business Opportunity12. Searching for an Opportunity and Selecting the Right Project13. Ensuring Your Market: Market Survey and Research14. Techno-Economic Feasibility Assessment: A Preliminary Project Report15. Your Business Plan: A Detailed Project Report

V RAISING MONEY FOR YOUR VENTURE16. Sources of Finance17. Presenting You Case for a Term Loan

VI ESTABLISHING YOUR VENTURE18. Selecting the Right Infrastructure19. Buying Machinery20. Sources and Evaluation of Technology21. Recruitment, Selection and Training of Personnel22. Expediting Project Implementation

VII YOU AND YOUR MARKET23. Marketing for Small Business24. Selling and Sales Promotion25. Giving Credit to Your Customers26. Export Environment, Procedures and Documentation

VIII MANAGING FOR PRODUTION AND PRODUCTIVITY27. Production Planning and Control28. Make Your Enterprise Innovative29. Quality Management

IX MANAGING YOUR SCARCE RESOURCES30. Working Capital Management31. Cost Accounting32. Break-Even Analysis; Concept and Implications

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X KNOWING YOUR GOALS33. Manage Your Business Successfully34. Understand the Language of Your Business35. Know Your Books of Account36. Assess Your Business Performance37. Monitoring Progress through Network Analysis

XI KNOW YOUR TAX LIABILITIES38. Sales Tax39. Central Excise40. Income Tax

XII PLAN FOR SURVIVAL AND GROWTH41. Managing Your Business Crises42. Beware of Pitfalls43. Solve Your Business Problems44. Be An Effective Communicator45. Growth Strategies in the Changing Economic Scenario

XIII LAST OF FIRST PIECE OF ADVICE!46. Tips on Being a Successful Entrepreneur

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ANNEXURE-II1. Any activity directly connected agriculture.2. Sericulture (Cocoon rearing),Animal Husbandry like Pisciculture,

Piggery, Poultry etc.,3. Manufacturing of Polythene carry bags of less than 20 microns

thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing or packaging of food stuff

4. Sugar5. Distilleries, Brewery and Malt Extraction6. Units utilizing Molasses/rectified spirit/de-natured spirit as raw

material for manufacture of potable alcohol.7. Fertiliser manufacture and blending (Except bio-fertilizers)8. Mining and Quarrying Ores, minerals etc.[Excluding polishing, cutting,

crushing, etc. of mined ores/minerals] 9. Aluminium, Iron and Steel Smelting [Excluding foundries]10.Manufacturing of intoxicant items like Beedi/Pan/Cigar/Cigarette etc., 11.Saw Mills12.Cement13.Calcium Carbide14.Slaughter House15.Re-packing of Drugs/Medicine/Chemical, without any processing or

value addition16.Azoic/Reactive Dyes17.Fire Crackers18.Industries manufacturing and or utilizing Ozone depleting substances19.Industries involving hazardous activities/ classified as “Red category”

by Tamil Nadu Pollution Control Board /Central Pollution Control Board

20. Cyanide21.Caustic Soda22.Potassium Chloride23. Nylon ,Rayon & Polyester Fibre manufacturing.[Excluding

manufacture of downstream products from Nylon ,Rayon & Polyester Fibre]

24. Real Estate 25.All types of Business activities.

New Issues 131st SLBC 77

11. Strategy and Guidelines on Financial Inclusion- Opening of Branches by Banks:

Ministry of Finance, Government of India vide their letter dated 21.10.2011 advised the Banks that in the under banked districts, all villages with population of 5000 and above should have a bank branch by September 2012.

Now, Ministry of Finance, Government of India vide their letter dated 16.05.2012, have advised the revised guidelines as follows:

Banks can start with Ultra Small Branch in these villages where opening of a regular brick & mortar branch is not considered viable at present and then convert it into a full-fledged branch when the branch reaches the desired level of business.

In other districts, the banks must try to open as many brick and mortar branches, in their service areas, in habitations having population of 10,000 and above by September 2012.

SLBC vide letter dated 18.05.2012 advised the member banks to take note of the changes in the guidelines and initiate necessary steps to open Ultra Small Branches / Brick and Mortar branches as the case may be in the villages identified by them before September, 2012. Member banks were also advised to submit the monthly progress report to SLBC.

As per the monthly progress report submitted by Banks as on 31.07.2012, Banks have opened 58 branches in under-banked districts and 108 branches in other districts, totaling to 166 branches out of the total number of 279 villages identified by them.

All member banks are requested to expedite to complete the branch opening in the identified centers before September 2012 taking into account the revised guidelines of Ministry of Finance, Government of India.


12. Ultra Small Branch (USB)

Ministry of Finance, Government of India issued the following Guidelines for opening of Ultra Small Branches (USBs) in Rural Areas:

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At places where the opening a conventional Brick & Mortar Branch is presently not viable, the Bank may set up USBs, which will have the following characteristics.

1) The Ultra Small Branch will have an area of 100-200 square feet.2) A BCA should be engaged for the service area to deal with all cash

transaction and other routine work. The BCA shall operate from the USB.

3) One of the Officers of the Bank will visit the Branch on predetermined day, at least once a week, along with a laptop which should have VPN connectively to the CBS. He would clear applications for new account opening, loans, recovery follow-up and business development. He can give information to the account holders about the account balance or a print out of the bank statement, etc.

4) The Officer would not be dealing with cash transactions, which would be handled by the BCA.

5) The frequency of visit by the Bank Officer can be progressively enhanced depending upon the business growth in the service area of the bank.

6) When the Bank reaches the desired level of business, the USB can be upgraded into a regular Bank Branch.

In Tamil Nadu banks have covered 4445 villages with a population of 2000 and above under Financial Inclusion. Banks have opened 2982 USBs in the State as on 31.08.2012. The bank wise data on USBs opened in the state is enclosed.

Member banks are requested to expedite opening of Ultra Small Branches in the remaining villages wherever BCs are engaged and ensure 100 % achievement as per the guidelines of Ministry of Finance. Bank wise data on Ultra Small Branches opened is enclosed.

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13. Capturing of data entry module for Geographical Information System (GIS) for Financial Inclusion through Web site of DFS, MOF, Government of India

Ministry of Finance, Government of India, have directed the Public Sector Banks to identify geographical location and enter data for every bank branch, ATM, Business Correspondent, Clearing House and Currency Chest in the Districts where they have Lead Bank responsibility.

The URL (Uniform Resource Locator) for the application is http://financialservices.gov.in/gis/default.aspx. List of user ids / passwords for PSBs and the State/Districts where these banks are lead banks along with a write up containing the process flow for entering the data by the DLCC convenor Bank was furnished to all Banks.

Salient features of GIS for Financial Inclusion:1) A web based application is accessible through a hyper link on website of Department of Financial Services (http://financialservices.gov.in).

2) Public Sector Banks (PSB) are provided with the Login ID and Password.3) Each Bank is required to enter the data in respect of the district(s) for which it is the Lead Bank.

4) The guidelines required for user-ids and passwords were provided to respective Banks directly.

A live demonstration of the data entry was done by SLBC for the benefit of all the LDMs of the State during the LDMs’ conference held on 11.04.2012.

Ministry of Finance, Government of India vide their letter dated 05.07.2012 informed the position of the Lead Banks in the State key in the data in the MOF website in respect of branches, ATMs, Business Correspondents, Clearing Houses and Currency Chests in their Lead Districts. A Copy of the Ministry of Finance letter along with annexure of pending districts on GIS is enclosed.

All the districts in Tamil Nadu have commenced data entry except Chennai District which is allotted to State Bank of India by MOF. We request State Bank of India to start data entry in respect of Chennai District on MOF website immediately.

Further, Ministry of Finance, Government of India vide their communication dated 18.07.2012 has advised that data in GIS module is to be regularly updated by the LDMs whenever the new branches get opened, BCAs are engaged, ATMs are installed and Currency Chest / Clearing Houses are get opened at least on a monthly basis.

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http://financialservices.gov.in/

http://financialservices.gov.in/gis/default.aspx

We advise the Lead District Managers and member banks to comply with the above guidelines and ensure that the data in GIS module is updated on a monthly basis without fail.

All member banks are advised to issue direction to the respective district coordinator of the bank to provide the necessary data such as bank branch, ATM, Business Correspondent, Clearing House and Currency Chest in the Districts to the Lead District manager.

District-wise GIS data entry position is enclosed as an annexure.

LDMs are also advised to ensure 100 % completion of uploading the data in the MOF website immediately.

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84

PLEASE REFER SCANNED IMAGE NO.

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86


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New Issues 131st SLBC 14. Detection of Counterfeit Bank Notes –Revised Procedure Advised by RBI:

SLBC placed a detailed agenda in its 127th Meeting held on 16.09.2011 along with the detailed circular issued by Reserve Bank of India dated 25.07.2011 and requested all the member banks to submit monthly progress report in the following format:

Particulars of the tenderer

Date of detection Denomination or pieces

Security features breached

SLBC requested the member banks vide their letter 09.05.2012 and also through several reminder letters to submit the monthly progress report by 5th of every succeeding month. The member banks were also reminded over phone for submission of the report.

Despite all the above attempts, data from the following banks was not received for the month of August 2012:

Corporation Bank City Union BankState Bank of Patiala Federal Bank Ltd.Vijaya Bank HDFC Bank Ltd. Andhra Bank Jammu Kashmir BankBank of Baroda Dhanalakshmi BankBank of India Catholic Syrian Bank Ltd.Central Bank of India Indus Ind Bank Ltd. State Bank of Mysore Karnataka Bank Ltd.Punjab & Sind Bank Karur Vysya Bank LtdPunjab National Bank ICICI Bank

State Bank of B & JTamilnadu State Apex Co-op. Bank

State Bank of India Bank of CeylonState Bank of Travancore Citi BankSyndicate Bank HK&SBUCO Bank SBO MUnion Bank of India AEBUnited Bank of India BNPIndian Bank Cr.LyonAxis Bank Ltd

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All the member banks are requested to submit the progress report before 5th of every succeeding month without fail. A –NIL- statement is to be submitted if there is nothing to report.

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New Issues 131st SLBC 15. MSME Clusters

Ministry of MSME, Government of India has advised the list of clusters identified in Tamil Nadu. They have advised the banks to provide adequate banking facilities / services in the clusters having insufficient banking facility.

All the member banks and LDMs are requested to make assessment of the banking facilities in the clusters identified by the Ministry of MSME and ensure that adequate banking facilities are provided in such clusters.

The list of clusters identified in Tamil Nadu by Ministry of MSME, Government of India is enclosed as an annexure. The list is also displayed in our SLBC website (www.slbctn.com).

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http://www.slbctn.com/


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16. Financial Inclusion – Drive to open Bank Accounts for Migrant labourers, Street Vendors / Hawkers in Urban Areas

Ministry of Finance, Government of India advised Banks to initiate a special drive to open accounts of migrant labour and street vendors / hawkers in Urban Areas in order to inculcate saving habits and to extend banking facilities to them.

The Government desires that to begin with, accounts of all migrant labour and street vendors / hawkers who are working within 500 metres of the bank branches in Urban and Metro areas should be opened. The Government also directed that, the marketing staff of branches should contact personally all street vendors / hawkers who are working within 500 meters of the branch to open their accounts. Thereafter the process should be extended to beyond 500 meters to get all such persons financially included.

SLBC placed an agenda in the 130th Meeting held on 28.06.2012.All banks are requested to issue necessary directions to all the branches in Tamil Nadu State to launch special campaigns in all the urban centers.

Member banks are also requested to advise their branches to complete the first level of opening of accounts of those who are working within 500 meters from the bank branches by 31.10.2012.


17. Revival, Reform and Restructuring Package for Handloom Sector

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The Revival, Reform and Restructuring package is announced by Government of India to promote the weavers/handloom sector and the implementation process of the same has already commenced from 2011-12. Government of Tamil Nadu has signed the MOU with Government of India and NABARD on 16.08.2012 towards implementation of the Handloom package in Tamil Nadu.

Operational guidelines in respect of claims for interest subvention and waiver of individual weaver loans have been issued to all banks vide our letters dated 25.01 2012 and 17.02.2012.

Only few banks have submitted the claim to NABARD so far. Member banks are advised to submit the consolidated claim to NABARD at the earliest.

Government of India allocated a target of 20,000 Weavers Credit Cards for Tamil Nadu. The district wise allocation of the target is enclosed as annexure. Department of Handlooms and Textiles have so far sent 16000 applications to banks through LDMs of the 20 implementing districts.

A special SLBC meeting was conducted on 10.08.2012 to review the progress in submission of claims of individual weavers by banks and also the progress in sanctioning of Weavers’ Credit Cards. The targets were allotted during June,2012. It was reported during the 4th SIMRC meeting held on 24.08.2012 that banks have issued only 300 cards so far out of the 16000 applications sent to them.

The member banks are advised to dispose of all the pending applications on merits before 15.10.2012. The Districtwise / bankwise list of pending applications is enclosed as annexure.

TARGETS FOR WCC TO BE ISSUED -DISTRICT WISE-(Revised)

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Sl NO District Name Target for WCC Cards to be issued

1 KANCHEEPURAM 11962 VELLORE 6753 TIRUVALLUR 3404 SALEM 13305 COIMABTORE 13306 ERODE 34007 TRICHY 3408 MADURAI 3409 VIRUDHUNAGAR 825

10 THANJAVUR 100011 KARUR 70012 CUDDALORE 100013 TIRUVARUR 14014 TIRUPPUR 100015 TIRUVANNAMALAI 300316 KANYAKUMARI 55017 TIRUNELVELI 34018 RAMNAD 82519 NAMAKKAL 132620 DINDIGUL 340

TOTAL 20000

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18. Creation / Release of Online charge by banks on land holdings:

Ministry of Finance, Government of India desires that mortgage on land holdings of farmers are to be created online by banks to secure the loans availed by the farmers. As a first step the land records should be made available online for the entire State and the same should be integrated with the banking system for easy verification and creation of online charge over the landed properties. This would help the farmer to avail loans easily from the banks and he need not go to various places and spend time and money for this purpose.At present the mortgages created in favour of the banks are registered with a Central Registry under SARFAESI Act, 2002. Steps may be initiated to integrate the State Registration Offices with the Central Registry to facilitate hassle free registration of mortgages.An agenda was placed on this in the 130th meeting of the SLBC held on 28.06.2012. The State Government is requested to provide the details of land records online and creation of mortgage online at the earliest.

New Issues 131st SLBC19. Government of India’s Revised KCC Scheme -Implementation of First Phase in Select 4 Districts

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Reserve Bank of India has issued guidelines on the revised Kisan Credit Card Scheme to all the Banks vide their letter dated 11.05.2012. Ministry of Finance, Government of India advised that SLBC in each State should select 2-4 districts, and every eligible household in such select districts should be issued a KCC as per the new scheme before June, 2012. This must be expanded to cover remaining districts by September, 2012.Accordingly SLBC in consultation with all the four lead banks in the State selected the following 4 districts for the implementation of the revised KCC scheme:

1) Kanyakumari - Lead Bank, Indian Overseas Bank2) Salem - Lead Bank, Indian Bank3) Theni - Lead Bank, Canara Bank4) Ariyalur - lead Bank, State Bank of India

The member banks were requested to instruct all their branches and Regional / Zonal Offices in the four districts to launch campaigns immediately to cover all the eligible households in their service area under KCC before June, 2012.We have also advised DCC Convenors and Lead District Managers of the above four districts to convene special DCC meeting for this purpose and monitor the progress with the banks in their district. Progress in issuance of ATM enabled revised Kisan Credit Card is very slow. The performance as at the end of June, 2012 in the pilot districts is given below:

S.No

Name of the District No. of households covered under

revised KCC scheme1 Kanyakumari 202 Salem 523 Theni 04 Ariyalur 435

Total 507The member banks are requested to cover all the eligible farmers in the state under revised KCC scheme and report correct figures to SLBC for onward submission to Ministry of Finance. The LDMs are advised to follow up with the member banks. New Issues 131st SLBC 20. Mahatma Gandhi National Rural Employment Generation Scheme (MGNREGS)

On 14.10.2011 it was decided in a meeting held at the office of the Commissioner of Rural Development that the MGNREGS wages would be directly credited electronically to the accounts of the beneficiaries by the nodal branches of the banks located in Chennai.

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SLBC placed an agenda in the 130th Meeting of SLBC held on 28.06.2012, that in some districts, the Village Panchayat Presidents deposit cheques in the branches, asking them to credit the amount to numerous accounts. It is also reported that in some cases the Panchayat Presidents deposit huge amounts of cash for credit of accounts of many beneficiaries after which cash withdrawals are demanded on the account. This is not in line with the principles and procedures of Electronic Benefit Transfer. The branches of banks are put to lot of hardships and there are instances of public unrest and disturbances.

The e-payment norms of the Ministry of Finance envisage discontinuance of cheques so that credits would be only through ECS. Depositing of cash to enable withdrawal of cash on the spot is also not in keeping with the e-payment norms.

The forum requested that the State Government channelize the MGNREGS payment only through ECS as in the case of the Old Age Pension Scheme. This was accepted by Shri.Ponniah, Additional Director, Rural Development who informed the forum that Government of India had developed software which was operationalised on 29.05.2012. He also informed that another meeting will be held during first week of July and the modalities will be worked out therein and he assured that credits will be made in to the accounts of the beneficiaries only electronically.

However, so far no meeting was conducted by Dept.of Rural Development. SLBC continue to receive reports on instances of depositing cheques and cash from many districts and the branches are put in to severe stress and pressure.

The members are requested to deliberate on this issue.

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New Issues 131st SLBC 21. Awareness camps to be jointly organized by Agricultural Insurance Company, Department of Agriculture, Government of Tamil Nadu and Banks.

In the special meeting conducted on 04.07.2012 during the visit of the Governor of RBI visit to Chennai the Secretary, Agriculture, Government of Tamil Nadu pointed out that banks are not adequately covering crops under Crop Insurance in the State.

The Governor, Reserve Bank of India advised SLBC to identify initially 3 to 4 districts for implementation of the sensitization scheme by which the Agricultural Insurance Company officials, Agri. Dept. officials and the Regional Heads of the banks meet the borrowers and explain to them about crop insurance and solicit business.

A special meeting was convened on 24.07.2012 by the Commissioner of Agriculture at the Secretariat, to discuss the modalities of implementation. Three pilot districts viz. Thiruvarur (lead bank IOB), Ariyalur (lead bank SBI) and Salem (lead bank Indian Bank) were selected for this purpose.

Agricultural Insurance Company and Department of Agriculture, Government of India are requested to arrange for publicity and to arrange for awareness camps. The member banks are advised to participate very actively in all the camps at the Block level and also at the District level. The copy of the minutes of the meeting held on 24.07.2012 is enclosed.

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22. Automation of State Government Treasuries:

Ministry of Finance, Government of India advised that full automation of the State Government Treasuries with banks has immense benefits for all the stake holders including the concerned State Governments, the banks and the beneficiaries, such as, convenient and smooth processes, instant fund transfer and quick credits to all the beneficiaries’ accounts, elimination of risks associated with human interference, cost and time efficient transactions, quick settlement of claims, automatic instant reconciliation of transactions, substantially reduced paper work, efficient fund management, effective budgeting exercise easy and perfect record keeping in digital form etc.

This issue was discussed in the 129th SLBC held on 19.03.2012.

The State Government is once again requested to undertake the exercise to fully automate the treasury operations including their interface with the banks at the earliest.

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23. National Horticulture Board- Back ended subsidy scheme:

National Horticulture Board advised vide their letter dated 31.08.2012 that NHB releases part subsidy (50%) based on the release of the term loan from the bank. The bank branches are expected to claim the 2nd and final subsidy after successful completion of the project and full release of the term loan.

However NHB advises that in 59 cases bank branches have not claimed the 2nd and final portion of the subsidy from NHB. The district wise list of 59 cases is given in the annexure. Member banks are requested to submit the 2nd and final claim immediately.

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24. National Commission for Scheduled Castes:

SLBC is furnishing hitherto data on share of SC/ST in the total credit portfolio of the banks in the agenda for review in every meeting of the SLBC as per the format provided under the Lead Bank Scheme prescribed by Reserve Bank of India. The data on bank finance under TAHDCO scheme is also provided separately which is exclusively meant for SC/ST.

Now, National Commission for Scheduled Castes, State Office, Chennai (Tamil Nadu & Puducherry) advised that the issue of furnishing separate data on SC/ST beneficiaries under DRI Loans and Government Sponsored Schemes may be taken up for discussion in SLBC.

The members are requested to deliberate on this issue.

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25.T.N.Government’s Unemployed Youth Employment Generation

Programme(UYEGP Scheme)

The Commissioner, Department of Industries & Commerce advised that a total of 8796 applications with a subsidy out lay of Rs.2857.73 lakhs were forwarded by the Department to the banks in the State during 2012-13 against the target of 5000 applications with a subsidy outlay of Rs.1500 lakhs.

So far 959 applications have been sanctioned by banks with a subsidy outlay of Rs.303.04 lakhs. Out of the 959 applications sanctioned 81 persons are trained and the remaining 878 are yet to be trained by the Department.

We advise the member banks to dispose of the pending applications on merits at the earliest.

We request Department of Industries and Commerce to advise the bank wise data and also the no. of applications returned by the banks.

The details may be provided by the Department on quarterly basis to enable SLBC to review the performance.

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26. Convergence of Insurance facilities with FI initiatives:

Ministry of Finance, Government of India issued Strategies & Guidelines on Financial Inclusion vide their letter dated 21.10.2011. They have issued the guidelines regarding preparation of District / State Financial Services Plan which were placed as a separate agenda in the 130th meeting of SLBC.The Public Sector insurance companies were advised to finalise the District Insurance plans for all the 31 districts both life and non life at the earliest.The District Insurance Plan has not been received from any of the Districts. The Public Sector Insurance Companies are requested to finalise their district plans before 15.10.2012 and advise the same to LDMs for their onward transmission to SLBC.

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Agenda No. 3 131st SLBC

Financial Inclusion & Green Initiatives - Electronic transfer of benefit payments

Banks have already opened a large number of no-frills accounts for reaching out to the door steps of the people in villages having population of over 2000. The State Government already commenced disbursement of Old Age Pension through Banks from September, 2011 on a pilot basis in one taluk each in three Districts viz. Trichy, Cuddalore and Kanyakumari. Now, it has been decided to expand the scheme to all the villages with a population of 2000 or more identified under the Financial Inclusion Plan in the State which is scheduled to be completed before September 2012.

The payment of grants / subsidies is routed through banks accounts in the following schemes also:

1. Dr. Muthulakshmi Maternity benefit scheme2. Lean period assistance for coastal fishermen

B) RBI, Chennai vide letter dated 17.12.2009 has called for statistical data (in a prescribed format) on ICT based Financial Inclusion from member Banks in Tamil Nadu. SLBC is collecting, compiling and submitting to RBI. All the member Banks are requested to furnish the data on time to SLBC.

C) The progress made by the Member Banks under Financial Inclusion as of June 2012 is furnished in the Annexure.

Progress under Financial Inclusion by Banks - Cumulative position As of June 2012

S.No Name of the Bank 'No-Frills’ a/c

opened(Nos)

General Purpose Credit Cards

Overdraft granted in No-Frills SB a/c

Smart Cards issued

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issued (Nos) (Nos) (Nos.)

1 Allahabad Bank 14267 0 0 7772 Andhra Bank 4221 4 19 12383 Axis Bank Ltd. 24037 0 0 04 Bank of Baroda 55237 144 0 54125 Bank of India 203414 2451 11445 315106 Bank of Maharashtra 1315 0 295 07 Canara Bank 1134844 66803 732 695528 Central Bank of India 90648 5124 73 513529 Corporation Bank 132814 5149 228 6519

10Catholic Syrian Bank Ltd. 2384 4 0 490

11 City Union Bank Ltd. 65506 0 0 1802612 Dena Bank 25436 20 0 0

13Dhanalakshmi Bank Ltd. 16841 0 0 16841

14 Federal Bank Ltd. 8003 9 0 015 HDFC Bank Ltd. 97204 2663 0 30516 ICICI Bank Ltd. 138017 33 0 017 Indian Bank 1997930 3084 18144 62776418 Indian Overseas Bank 2287764 4833 2502 25281219 Indus Ind Bank Ltd. 15399 0 0 020 IDBI Bank 19802 1 0 021 ING Vysya Bank Ltd. 595 0 8 0

22Jammu & Kashmir Bank Ltd. 3 0 0 0

S.No Name of the Bank'No-Frills’

a/c opened(Nos)

General Purpose Credit Cards issued (Nos)

Overdraft granted in No-

Frills SB a/c

(Nos)

Smart Cards issued (Nos.)

23 Karur Vysya Bank Ltd. 45071 0 0 443224 Karnataka Bank Ltd. 14726 0 3 0

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25 Kotak Mahindra Bank Ltd. 7702 0 0 026 Lakshmi Vilas Bank Ltd. 28513 0 0 4687

27Oriental Bank of Commerce 1180 1 0 0

28 Pallavan Grama Bank 246195 491 18921 193729 Pandyan Grama Bank 612459 350 0 609230 Punjab National Bank 94351 1402 0 201131 Punjab & Sind Bank 1586 0 0 032 South Indian Bank Ltd. 74880 643 1 400533 State Bank of India 1076190 92 23824 13652

34State Bank of Bikaner & Jaipur 2157 0 0 0

35 State Bank of Mysore 3576 130 17 036 State Bank of Patiala 776 11 1 037 State Bank of Travancore 83312 1070 0 99338 Syndicate Bank 72039 2815 109 1366

39Tamil Nadu Mercantile Bank Ltd. 132090 560 0 2982

40Tamil Nadu State Apex Co.op Bank 36847 0 0 0

41 Union Bank of India 169590 716 0 5344242 United Bank of India 956 0 0 043 UCO Bank 83734 7 10 601244 Vijaya Bank 27307 558 355 195 Total 9150918 99168 76687 1184404

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AGENDA No: 4 131ST SLBC

REVIEW ON BANKING DEVELOPMENTS IN TAMILNADU ON KEY PARAMETERS AS OF JUNE 2012

KEY PARAMETERS (Amount – Rs.in Crores)

Parameters JUNE2011

JUNE2012

VARIATION & % OF GROWTH

No. of Branches 6767 7494 727 (11%) Deposits

327180.69 390518.57 63337.88(19.36%

)Advances

383022.33 458306.55 75284.22(19.66%

)CD Ratio

117.07% 117.36% 0.29% Investments 2474.81 2764.39 289.58 Credit + Investment to Deposit Ratio 117.82% 118.07% 0.24% Priority Sector Advances

150720.85 177629.42 26908.57(17.85%

)% of Priority Sector Advances to Total Advances 40.09 39.54 Agricultural Advances

60947.29 77402.66 16455.37(27.00%

)% of Agricultural Advances to Total Advances 16.21 17.23 Micro & Small Enterprises (MSE) 53440.34 60771.14 7330.80

(13.72%)

Of which Micro Enterprises17435.42 22426.60 4991.18

(28.63%)

Micro Credit3695.98 3299.61 -396.37

Education10519.44 12364.79 1845.35

(17.54%)

Housing 22117.80 23492.12 1374.32 (6.21%)Advances to Weaker Sections 35878.73 51451.74 15573.01

(43.40%)

% of Weaker Section Advances to Total Advances 9.54 11.45

DRI Advances 151.13 224.59 73.46(48.61%

)% of DRI Advances to Total Advances 0.04 0.05

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BRANCH NETWORK

As at the end of June 2012, the total number of Bank Branches in Tamil Nadu increased to 7494 from 6767 in June 2011. Group wise spread of Bank branches in Tamil Nadu as of June 2011 and June 2012 are given below:

Name of the Group JUNE2011 JUNE 2012 Variation

State Bank Group 992 1059 67Nationalised Banks 3731 4117 386Other Public Sector Banks 56 66 10Private Sector Banks 1646 1883 237RRBs 318 345 27Foreign Banks 24 24 0Total 6767 7494 727

DEPOSIT GROWTH

Deposits of the Banks in Tamil Nadu have increased from Rs.327180.69 crores as of June 2011 to Rs.390518.57 crores as at June 2012, registering an increase of Rs.63337.88 crores. The year on year incremental deposit growth is 19.36% as against the growth of 14.17% from June 2010 to June 2011.

CREDIT EXPANSION

The total advances increased from Rs.383022.33 crores as of June 2011 to Rs.458306.55 crores as of June 2012, an increase of Rs.75284.22 crores. The incremental growth is 19.66% as against the growth rate of 22.79% recorded in the previous year.

CD RATIO

The Credit Deposit Ratio of Commercial Banks in Tamil Nadu slightly increased from 117.07% as of June 2011 to 117.36% as of June 2012.

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PRIORITY SECTOR ADVANCES

The percentage of priority sector advances is 39.54% as against the national norm of 40%.

Priority Sector Advances have grown by 17.85% Y.O.Y as against 23.74% during June 2010 to June 2011.

AGRICULTURAL ADVANCES

The aggregate of agricultural advances extended by Banks in Tamil Nadu have increased from Rs.60947.29 crores as of June 2011 to Rs.77402.66 crores as of June 2012, thus registering an increase of Rs.16455.37 crores in absolute terms and 27% in percentage terms. [The growth rate during the period June 2010 to June 2011 was 23.46%]. The share of agricultural credit in total advances as of June 2012 is 17.23% against the national norm of 18%.

MICRO & SMALL ENTERPRISES (MSE)

The advances to Micro & Small Enterprises sector (MSE) during the period under review has witnessed an increase by Rs.7330.80 crores, from Rs.53440.34 crores as at June 2011 to Rs.60771.14 crores as at June 2012. The incremental growth is 13.72% as against the growth rate of 27.77% recorded in the previous year.

The share of MSE advances in total advances as of June 2012 was 13.53%. The share of Micro Enterprises in Micro & Small Enterprises (MSE) is only 36.90% as against the stipulated norm of 60%. Member Banks are advised to concentrate more on Micro Enterprises.

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EDUCATION

Educational Loans have increased from Rs.10519.44 crores in June 2011 to Rs.12364.79 crores as of June 2012. The increase of Rs.1845.35 crores under Educational Loans represents a growth rate of 17.54%.

Year-on-year (June 2010 to June 2011), there is an increase of Rs.2487.19 crores in Educational Loans outstanding, recording a growth rate of 30.97%.

HOUSINGThe outstanding under Housing Loans has registered an increase of Rs.1374.32 crores from Rs.22117.80 crores in June 2011 to Rs.23492.12 crores in June 2012, registering a growth rate of 6.21%. During the corresponding period of the previous fiscal, there was an increase of Rs.2176.70 crores in Housing Loans outstanding with 10.92% growth rate.

ADVANCES TO WEAKER SECTIONS

The advances to Weaker Sections increased from Rs.35878.73 crores as of June 2011 to Rs.51451.74 crores as at the end of June 2012, registering a growth rate of 43.40%. At this level, advances to Weaker Sections constituted 11.45% of the total credit against the national norm of 10%.

The growth during last year (June 2010- June 2011) was 27.72%.

DRI ADVANCES

The outstanding advances under DRI has increased from Rs.151.13 crores as on June 2011 to Rs.224.59 crores as of June 2012, registering a growth rate of 48.61%

The percentage of DRI advances to total advances is 0.05%.

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NATIONAL NORMS

PERFORMANCE OF COMMERCIAL BANKS UNDER THE STIPULATED NATIONAL NORMS ARE AS UNDER:

(Amount Rs.in Crores)

ParticularsNational Norms for March 2013

Achievement upto June 2012

% Target Amount % Amount

Priority Sector Advances to Total Advances 40 179704.91 39.54

% 177629.42Agricultural Advances to Total Advances 18 80867.21 17.23

% 77402.66Weaker Section Advances to Total Advances 10 44926.23 11.45

% 51451.74Micro Enterprises 60 36462.68 36.90

% 22426.60

The share of Priority Sector advances stands at 39.54% as against the National Norm of 40%. The percentage of Priority Sector Advances to total Advances has shown a marginal decline from 40.09% as at the end of June 2011 to 39.54% as at the end of June 2012.

The percentage of Agricultural advances to total advances as at the end of June 2012 works out to 17.23%. The percentage of Agri Advances to total advances has increased from 16.21% as at the end of June 2011 to 17.23% in June 2012.

The share of advances to weaker sections has also increased from the level of 9.54% in June 2011 to 11.45% in June 2012.

ACTION AREAS:-

1. Member Banks have to enhance their lending under Priority Sector so as to achieve the annual target of Rs.179704.91 crores by March 2013.

2. Similarly credit disbursement to Farm Sector has to be accelerated for achieving the March 2013 target of 80867.21 crores.

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CREDIT + DEPOSIT RATIO

CD Ratio as of June 2012 is as follows:

(a) Commercial Banks : 117.36%

(b) Including Co-operative Banks : 118.03%

DISTRICTWISE PERFORMANCE OF COMMERCIAL BANKS IN TAMILNADU

A comparative analysis of the performance of the Commercial Banks in Tamil Nadu indicates the following:

a) Theni district has the highest CD ratio at 194% followed by Tiruppur district (183%) & Ariyalur district (176%).

b) Of the 31 lead districts, the CD ratio of 30 districts is above the RBI norm of 60%.

c) Kancheepuram District is having CD ratio of 55% which is less than the National Norm of 60% and Member Banks are requested to evolve suitable strategies to improve their lending so as to achieve the National Norm for CD Ratio in that district.

Agricultural advances to total advances in the following district is below 18% norm.

Tiruppur -- 16.73%

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REVIEW OF OPERATIONS OF CO-OPERATIVE BANKS IN TAMILNADU AS AT THE END OF JUNE 2012

As at the end of June 2012, there were 798 branches of Co-operative Banks (both, District Central Co-operative Banks and State Agricultural and Rural Development Banks) in Tamil Nadu. The details are furnished for the information of the members.

Classification of Branches JUNE 2011 JUNE 2012Rural 261 270Semi-Urban 200 197Urban 192 185Metro 139 146TOTAL 792 798

(Amount – Rs. in Crores)Particulars JUNE 2011 JUNE 2012

Deposits 18954.57 22476.44Advances 25518.38 29149.56Investments 6180.34 7001.70CD Ratio 134.63% 129.69%Credit + Investment to Deposit Ratio 167.24% 160.84%

(Amount – Rs. in Crores)S.No. Particulars JUNE 2011 JUNE 2012

1 Agricultural Advances 2819.11 3592.58 Of which, Direct Advances 122.86 426.742 Micro & Small Enterprises 1558.04 2061.743 Education 16.21 3.224 Housing 281.02 169.515 Micro Finance & Others 1240.22 320.27

TOTAL 5914.60 6147.32

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ADVANCES UNDER SPECIAL PROGRAMMES / SCHEMES / SECTORS

(Amount – Rs. in crores)

JUNE 2011 JUNE2012

Total Advances to Weaker Sections 3270.65 4195.84 Of which, (i) Advances under SC/ST 1152.85 1534.09 (ii) Advances under IRDP/SGSY 138.52 1082.48 (iii) Advances under DRI 31.49 121.98

NPA POSITION IN PRIORITY SECTOR ADVANCES – MARCH 2012(Amount Rs. in Crores)

NPA Amount

% of NPA

i) NPA in Housing loans 18.81 12.45%ii) NPA in Education loans 6.75 28.74%iii) NPA in Agriculture Loans 384.20 10.32%iv) NPA in Loans to MSE 30.30 1.35%v) NPA in Loans under Weaker Section of Priority Sector Lending

106.99 2.11%vi) NPA in over all Priority Sector Lending 440.06 6.22%

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PLEASE REFER DATA SHEET NO.1

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131

AGENDA No: 5 131st SLBC

REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN 2012 – 2013: APRIL 2012 TO JUNE 2012

As per the quick information report obtained from the Lead District Managers, Banks in Tamil Nadu have disbursed total credit of Rs.17127.49 crores under Annual Credit Plan during 2012-13 as against the proportionate plan allocation of Rs.20628.04 crores, representing 83% achievement under ACP for the year 2012-13.

Amount in Rs. crores

SectorCredit Allocation

Credit Disbursed % of

AchievementApril 2012 to June 2012

Farm 13081.25 10920.19 83Non-Farm 3573.27 3005.87 84OPS 3973.52 3201.43 81TOTAL 20628.04 17127.49 83

A comparative position of disbursement under ACP upto the quarters ended June 2011 and June 2012 is furnished below:-

Amount Rs. in crores

Sector

Credit disbursed from April

2011 to June 2011

Credit disbursed from April

2012 to June 2012

Variation in percentage

Farm 7292.74 10920.19 49.74Non-Farm 2597.57 3005.87 15.72OPS 2737.03 3201.43 16.97TOTAL 12627.34 17127.49 35.64

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District wise performance:

District wise/Major Sector wise performance for the period ended June 2012 is furnished in Annexure – I. Banking System in Tamil Nadu has achieved 83% of the plan allocation during the period under review. The performance of the individual districts varies from 18% to 109%. 4 districts have achieved more than 100% of the target.

Sector wise performance:

A. Farm Sector (Agriculture and Allied Activities):The performance under Farm Sector is satisfactory with 83% achievement during the first quarter ended June 2012. 5 districts have achieved 100% or more under Farm Sector. Tuticorin district shows an achievement of 27% under Farm Sector which is far below the desired level.

B. Non-Farm Sector – Industries:Performance of Banks in Tamil Nadu under Non-Farm Sector works out to 84% of the proportionate plan allocation during the first quarter ended June 2012. 9 districts have achieved 100% or more under Non-Farm Sector.

The performance of Banks in the following 5 districts is much below 50%. LDMs need to bestow their attention and impress upon Member Banks in their respective districts to improve the performance under Non-Farm Sector during the current year.

Sl.No.

District % Sl.No. District %

1 TIRUNELVELI 33 4 TUTICORIN 72 PERAMBALUR 26 5 KANYAKUMARI 33 VIRUDHUNAGAR 13

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C. Other Priority Sector:

Performance of Banks in Tamil Nadu under Other Priority Sector Advances works out to 81% of the proportionate plan allocation during the first quarter ended June 2012. 7 districts have achieved more than 100% of the target.

While Banks in the remaining districts have to increase their disbursement under OPS category during the current year, in the following 3 districts where the performance is under 50%, Banks have to focus on scaling up disbursement.

Sl.No.

District %

1 PERAMBALUR 252 KANYAKUMARI 233 TUTICORIN 8

The details of progress made under ACP 2011-12 upto the quarter ended March 2012 (District-wise / Bank-wise / Activity-wise) have also been furnished in the Annexure for information.

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139

AGENDA No: 5A 131st SLBC

ANNUAL CREDIT PLAN 2012-13

The Annual Credit Plan for 2012-13 was placed in the 130th SLBC Meeting held on 28.06.2012 for approval. However, since NABARD advised the revised farm sector target for the State subsequently, the district-wise revised farm sector target was advised to the LDMs for allocation among the member banks.

Accordingly, the revised consolidated Annual Credit Plan for the Financial year 2012-13 incorporating the changes advised by NABARD for the State of Tamil Nadu is placed below for the approval of the forum.

The credit plan for the year 2012-13 envisages a total credit flow of Rs.82513.77 crores under the 3 major sectors which represents an increase of Rs.25892.13 crores in absolute terms representing an incremental growth of 45.73% over the previous year’s ACP outlay. The sector-wise details are given below:

Sector Allocation % of Increase2011-12 2012-13Farm Sector 31017.09 52325.53 68.70%Non-Farm Sector

12582.48 14293.54 13.60%

OPS 13022.07 15894.70 22.06%Total 56621.64 82513.77 45.73%

The District-wise / Bank-wise / Activity-wise Allocation under ACP for 2012-2013 is enclosed.

Active involvement of all the Banks in Tamilnadu is sought for the successful implementation of the Annual credit plan 2012-13. Various Departments and agencies of the Government are also requested to extend support in filling up the infrastructure gaps, if any.

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Prime Minister’s Employment Generation Programme (PMEGP)

KVIC, Chennai vide their letter dated 07.08.2012 has advised the target sanctioned for 2012-13 under PMEGP, as given below:-

TENTATIVE TARGET UNDER PMEGP – 2012-13

TARGET (Projects, Emp in No’s & M.M. in Rs. in lakhs)Agency Projects M.M. EmpKVIC – SO 317 728.49 2536KVIC – DO 151 346.89 1208KVIC-TN 468 1075.38 3744KVIB 467 1075.37 3736DIC 624 1433.83 4992GRANDTOTAL 1559 3584.58 12472

The State Level Monitoring Committee on PMEGP has decided that all the pending claims of Margin Money available with the Nodal Banks should be cleared first on top priority as per the procedure in vogue and then only new target should be taken up by the agencies for implementation.

In the case of Chennai Region, the target sanctioned will be sufficient enough to meet the pending claims and if any additional target for new programme is received, the same will be placed before SLBC with the details of Bank-wise & District-wise.

KVIC, Madurai will clear the pending claims first to the tune of Rs.17.51 lacs and then start the implementation of PMEGP Scheme in Madurai Region for achieving the remaining target. Hence, the Bank-wise and District-wise Target for Madurai Region during the year 2012-13 is furnished in the Annexure 1 & 2. PMEGP Bank-wise Cumulative Performance for the year 2012-13 as on 03.08.2012 is furnished in Annexure 3.

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ANNEXURE 1

DISTRICT WISE TARGET UNDER PMEGP -2012-13 IN MADURAI REGION

S.No. DISTRICT PROJECT (Nos.)

SUBSIDY (Rs.Lacs)

EMP. (Nos.)

1 Dindugal 21 47.89 1682 Kanniyakumari 7 16.10 563 Madurai 16 36.80 1284 Pudukkottai 17 39.10 1365 Ramanathapuram 15 34.50 1206 Sivaganga 14 32.20 1127 Theni 11 25.30 888 Tirunelveli 15 34.50 1209 Thoothukkudi 19 43.70 15210 Virudhunagar 16 36.80 128

TOTAL 151 346.89 1208

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ANNEXURE 2

BANK WISE TARGET UNDER PMEGP -2012-13 IN MADURAI REGION

S.No. Name of the BankPROJECT

(Nos.)SUBSIDY (Rs.Lacs)

EMP. (Nos.)

1 State Bank of India 28 63.41 2212 Canara Bank 23 53.66 1873 Indian Overseas Bank 22 51.22 1784 Indian Bank 19 43.49 1535 Bank of India 9 20.70 726 Union Bank of India 8 19.02 667 Central Bank of India 7 15.61 548 Bank of Baroda 6 14.63 519 Syndicate Bank 5 11.22 3910 Vijaya Bank 4 8.78 3111 Punjab National Bank 4 8.29 2912 Dena Bank 1 2.93 1013 Corporation Bank 1 2.93 1014 State Bank of Travancore 1 1.95 715 UCO Bank 1 1.46 516 Andhra Bank 1 1.46 517 Allahabad Bank 1 2.21 818 Bank of Maharastra 1 1.46 519 Oriental Bank of Commerce 1 1.46 520 Tamilnadu Mercantile Bank 5 13.10 4521 City Union Bank 1 2.64 922 Karur Vysya Bank 1 2.64 923 Lakshmi Vilas Bank 1 2.62 9 TOTAL 151 346.89 1208

146

ANNEXURE 3PMEGP BANKWISE CUMULATIVE PERFORMANCE

FOR THE YEAR 2012-13 ( As on 03.08.12)

S.No Bank Projects

Margin Money

(Rs. Lakhs)

1 Bank of Baroda 48 177.00

2 Bank of India 43 149.97

3 Canara Bank 125 271.4

4 Central Bank of India 51 161.23

5 Corporation Bank 19 79.94

6 Dena Bank 0 0.00

7 Indian Bank 156 319.49

8 Indian Overseas Bank 228 648.86

9 Punjab National Bank 47 122.87

10 State Bank of India 118 267.17

11 State Bank of Travancore 9 53.7

12 Syndicate Bank 36 92.66

13 Union Bank of India 32 105.75

14 Tamilnadu Mercantile Bank 146 584.36

15 Vijaya Bank 10 10.39

Total 1069 3045.84

147


SWARNA JAYANTI SHAHARI ROZGAR YOJANA (SJSRY)

SJSRY Programme consists of two special schemes namely (i) Urban Self-Employment Programme (USEP) and (ii) Urban Women Self-Help Programme (UWSP).

The progress made under SJSRY for the programme year 2011-12 as on 30.06.2012 is furnished below: (Amount Rs.in Lacs)NO. PARTICULARS SJSRY-

USEPSJSRY-UWSP TOTAL

1 Applications sent to Banks 14514 2253 167672 Applications sanctioned 12758 1717 144753 Applications rejected 1756 536 22924 Applications Pending 0 0 05 Subsidy allotted 1969.50 1547.75 3517.256 Subsidy utilized 1287.82 1016.29 2304.117 Subsidy pending 681.68 531.46 1213.148 % of subsidy utilization 65 66 66

Subsidy utilization level for the Programme year 2011-12 as on 30.06.2012 so far is 65% & 66% under USEP and UWSP scheme respectively. Member Banks are advised to speed up the sanction / disposal of the pending loan applications and ensure 100% utilization of the subsidy allotted under SJSRY.

District wise SJSRY Financial Action Plan for the year 2012-2013 under two special schemes USEP and UWSP in terms of Financial out lay and Physical targets is given in the Annexure for the information of the Member banks for achievement during the Financial Year 2012 – 13.

148


149


150


151


152


153


154


155


156


157


158

AGENDA No: 8 131ST SLBC

SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY) / NATIONAL RURAL LIVELIHOOD MISSION (NRLM)

With effect from 31.03.2012, the present SGSY Scheme has been replaced with the new programme named NRLM (National Rural Livelihood Mission).

The objective of the Mission is to reduce poverty among rural BPL by promoting diversified and gainful self-employment and wage employment opportunities which would lead to an appreciable increase in income on sustainable basis. In the long run, it will ensure broad based inclusive growth and reduce disparities by spreading out the benefits from the islands of growth across the regions, sectors and communities.

FINANCIAL ALLOCATION UNDER SGSY/NRLM DURING 2012-13 FOR TAMIL NADU STATE

Ministry of Rural Development, (Rural Livelihoods Division), Govt. of India, New Delhi have advised that the total central allocation for SGSY/NRLM is Rs.102.77 crores and State allocation is Rs.34.26 crores, totaling to Rs.137.03 crores for the year 2012-13.

PHYSICAL TARGETS UNDER SGSY/NRLM DURING 2012-13

The Physical Targets for the year 2012-13 under SGSY/NRLM have also been worked out on the basis of allocation made for Tamil Nadu State, which is furnished below:-

a) No. of SHGs to be assisted with Subsidy and Credit = 8521

b) Total No. of SHGs Swarozgaris to be assisted(Assuming 10 Members per group) = 85210

c) Total No. of Individual Swarozgaris to be assisted = 4672

d) Total No. of Swarozgaris to be assisted = 89882

e) Of which, Total No. of Minorities Swarozgaris to be assisted = 13482( 15%)

Nodal Agency viz., Tamilnadu Women Development Corporation Ltd (TNCDW) is requested to prepare an Action Plan for the implementation of SGSY/NRLM so that the physical targets set for the year 2012-13 are achieved.

159

TNCDW have advised the Economic Assistance -Progress details (District-wise) as on 11.08.2012 under SGSY 2011-12 which is furnished in the Annexure.

160

SGSY - 2011 - 12 Economic Assistance - Progress Details as on 11.08.2012

S. No District

E.A Target

Physical (No.of SHGs)

Subsidy Released to Bank (No.of SHGs)

Credit Disbursed

(No.of SHGs)

% of Credit Disbursed

against achievement (No.of

SHGs)1 2 3 4 5 61 Ariyalur 127 180 157 872 Coimbatore 227 227 227 1003 Cuddalore 327 327 270 834 Dharmapuri 195 195 134 695 Dindigul 242 296 182 616 Erode 184 197 162 827 Kancheepuram 365 365 315 868 Kanniyakumari 162 211 99 479 Karur 142 148 122 8210 Krishnagiri 204 208 150 7211 Madurai 265 265 246 9312 Nagapattinam 204 256 247 9613 Namakkal 196 233 163 7014 Nilgiris 60 60 49 8215 Perambalur 72 72 61 8516 Pudukkottai 197 198 169 8517 Ramnad 177 223 81 3618 Salem 338 388 133 3419 Sivagangai 174 246 240 9820 Thanjavur 297 329 233 7121 Theni 136 170 122 7222 Thirunelveli 329 354 296 8423 Thiruvallur 283 287 268 9324 Thiruvannamal 324 324 181 5625 Thiruvarur 212 212 119 5626 Thoothukudi 240 240 185 7727 Tiruppur 200 234 177 7628 Trichy 222 252 222 8829 Vellore 530 660 584 8830 Villupuram 621 764 185 2431 Virudhunagar 207 251 193 77

TOTAL 7464 8372 5972 71

161


BANK FINANCE UNDER HOUSING SCHEME:

In tune with the National Agenda 'HOUSING FOR ALL' Credit Flow to Housing Sector is identified as one of the major thrust areas by the Banks.As per Reserve Bank of India guidelines, each bank should reach 3% of their incremental deposits of the previous year under housing finance. Accordingly, it is estimated that Rs.3019.59 crores should be extended to Housing Sector from banking system in Tamil Nadu during the year 2012-13.

As per the feedback received from member banks, disbursement to the tune of Rs.973.53 crores has been made during the first quarter ended June 2012.

The Bank wise disbursement details for the first quarter is furnished in the Annexure. It may be noted that 2 Banks marked (*) have not submitted any data as a result of which the aggregate disbursement might have been understated. These banks are requested to submit the data immediately.

Break-up of the portfolio on the basis of loan size is as follows:-(Amount Rs.in Lakhs)

Disbursement made during the quarter ended June 2012 (April’12 to June’12)

Limit Upto Rs.5 Lacs

Limit above Rs.5 lacs - upto Rs.10

Lacs

Limit above Rs.10 Lacs - upto Rs.15

Lacs

Limit above Rs.15 Lacs - upto Rs.25

LacsTotal

No.Amoun

t No. Amount No. Amount No. Amount No.Amoun

t831

818261.76

5857

27003.93

3409

25359.00

2712

26728.68

20296

97353.37

As per revised RBI guidelines, limits sanctioned up to Rs.25 lacs in metropolitan centers with population above Rs. 10 lakhs and Rs.15 lakhs in other centers for purchase /construction of a dwelling unit per family excluding loans sanctioned bank’s own employees are classified as Priority Sector Advanes which may please be noted.

Banks are also advised to include in the above statement, loans given for repairs to damaged dwelling units of families upto Rs 2 lacs in rural and semi urban areas and Rs. 5 lacs in urban and metropolitan areas.

162

Bank Finance under Housing Scheme – Direct Housing FinanceFor the quarter ended June 2012

Amount Rs.in LacsSl. No.

Name of the BankDisbursement made during

the quarter ended June 2012 (April’12 to June’12)

No. Amount1 Allahabad Bank 67 255.782 Andhra Bank 266 1240.983 Axis Bank Ltd. 0 0.004 Bank of Baroda 304 2479.775 Bank of Maharashtra 25 338.006 Bank of India 648 3011.007 Canara Bank 2461 8351.238 Catholic Syrian Bank 12 139.609 Central Bank of India 124 903.9110 City Union Bank Ltd. 294 1802.5711 Corporation Bank 341 3517.6112 Dena Bank 20 153.0013 Dhanalakshmi Bank Ltd. 2 12.5014 Federal Bank Ltd., *15 HDFC Bank Ltd. 1236 1259.1416 ICICI Bank Ltd. 450 3533.0017 Indian Bank 3849 17852.5218 Indian Overseas Bank 2332 16595.0019 IDBI Bank Ltd. 355 1339.0820 Indus Ind Bank Ltd. 5 29.1121 Ing Vysya Bank Ltd. 4 17.9022 Jammu & Kashmir Bank

Ltd.6 25.62

23 Karur Vysya Bank Ltd. 269 2748.0824 Karnataka Bank Ltd., 47 306.0225 Lakshmi Vilas Bank Ltd. 50 437.7426 Oriental Bank of

Commerce67 383.53

27 Pandyan Grama Bank 22 82.70

163

Amount Rs.in Lacs

Sl. No.

Name of the Bank

Disbursement made during the quarter ended June 2012

(April’12 to June’12)

No. Amount28 Pallavan Grama Bank 3 9.0029 Punjab National Bank 81 659.3730 Punjab & Sind Bank 18 194.2031 South Indian Bank Ltd. 49 319.60

32State Bank of Bikaner & Jaipur *

33 State Bank of Hyderabad 119 732.0034 State Bank of India 3896 16083.0035 State Bank of Mysore 32 258.3036 State Bank of Patiala 17 78.9837 State Bank of Travancore 144 1395.0038 Syndicate Bank 419 2602.0039 Tamilnadu Mercantile

Bank 1228 4207.8040 UCO Bank 14 117.3441 Union Bank of India 534 2019.8042 United Bank of India 39 442.5943 Vijaya Bank 447 1419.00 GRAND TOTAL 20296 97353.37

164

AGENDA No: 9 (A) 131st SLBC

GOLDEN JUBILEE RURAL HOUSING FINANCE SCHEME (GJRHFS)

The National Housing Bank has formulated the Golden Jubilee Rural Housing Finance Scheme (GJRHFS) in August 1997 on the occasion of the Golden Jubilee of India's Independence.

As per the feedback received from the member banks, 1539 loans amounting to Rs.5898.39 lacs were disbursed under Golden Jubilee Rural Housing Finance Scheme during the first quarter ended June 2012 as shown below:

(Amount in Rs. Lacs)

ParticularsScheduled

CastesScheduled

Tribes Others Total

No. Amt. No. Amt. No. Amt. No. Amt.Total Loans sanctioned during the Quarter 141 352.24 31 44.21 1367 5599.54 1539 5995.99Total Loans disbursed during the Quarter 141 348.99 31 44.21 1367 5505.19 1539 5898.39

Member Banks are requested to furnish the details of housing loans under Golden Jubilee Rural Housing Finance Scheme on quarterly basis to SLBC.

165


Educational Loans

A) The details of educational loans granted by member banks are furnished in the annexure 1.

As per the reports received, 25176 loans to the tune of Rs.321.39 crores have been granted during the first quarter ended June 2012 of which Engineering/Medical account for 19191 loans amounting to Rs.229.97 Cr, 572 loans for study in Abroad amounting to Rs.49.77 Cr and 5413 loans to Others, to the tune of Rs.41.65 Cr.

Out of 25176 Educational loans granted to the tune of Rs.321.39 crores, SC/ST, Minority Communities & Women accounts for 3851 loans amounting to Rs.49.49 Cr, 1639 loans amounting to Rs.35.66 Cr and 7728 loans to the tune of Rs.87.67 Cr respectively.

The following Banks who have not furnished the data on Educational Loans as of June 2012 are requested to submit the same immediately.

Sl. No.

Name of the Bank Sl. No.

Name of the Bank

1 Federal Bank Ltd. 3 ICICI Bank Ltd.2 HDFC Bank Ltd. 4 United Bank of India

The following Banks who have not furnished the break-up regarding SC/ST, Minority & Women are requested to submit the data without fail.

Sl. No.


Name of the Bank

1 J & K Bank Ltd. 3 State Bank of Mysore2 State Bank of Bikaner & Jaipur

Member Banks are requested to advise the progress made in granting of Educational Loans promptly to SLBC and DCCs.

166

B) As per the details received from the Member Banks the status of loan applications received / sanctioned / rejected / pending are as under. Bank-wise data is enclosed in the annexure 2.

(Amount in Lacs)Loan

Applications Received

Education Loans

Sanctioned

Loan Applications

Rejected

Loan Applications

Pending

No. Amount No. Amount No.Amoun

t No. Amount

2615734215.4

1 2517632139.0

3 6331249.4

7 348 826.91

Member Banks are requested to expedite disposal of the pending loan applications.

As advised by Department of Financial Services, Ministry of Finance, Government of India and as informed to member banks vide SLBC letter dated 12.09.12, all member banks should have a grievance redressal cell and grievance redressal mechanism should be in place for education loans. Likewise SLBC shall also have a grievance redressal cell. The name of the official incharge of the cell alongwith phone number should be provided to SLBC.

All member banks should give an advertisement individually about the grievance redressal mechanism and availability of grievance redressal cell alongwith the address of the cell, e-mail ID, name and telephone no. of the official incharge of the cell.

167


168


169


170


171


MICRO & SMALL ENTERPRISES (MSE) SECTOR

Credit flow to MSE Sector during the first quarter ended June 2012 is furnished in the annexure. Credit flow to Micro and Small Enterprises amount to Rs.1757.24 Crores & Rs.2486.10 Crores respectively.

The MSE disbursement made during the first quarter 2012-13 is Rs.4243.34 crores compared to Rs.3781.57 crores disbursed during the last year 2011-12. (12.21% growth)

The share of advance to Micro Enterprises to total MSE for the quarter ended June 2012 (April 2012 to June 2012) is 41.41% against stipulated level of 60%. ( During the corresponding period last year it was 26.42%. Member Banks are advised to speed up the flow of credit to Micro Enterprises and achieve 60% norms)

The share of Micro Enterprises in credit flow to MSE are furnished in the annexure (Bankwise).

172


173


CREDIT FLOW TO WOMEN

Government of India and Reserve Bank of India have advised banks to strengthen the credit flow to women and ensure that their share in Bank Credit is increased to 5%.

The details of performance of the Banks in Tamil Nadu under credit flow to women entrepreneurs as of June 2012 are furnished below:

(Amount in Rs. Crores)

S.No PROGRAMME

Disbursement made during the Quarter ended June 2012

Outstanding position as of June

2012Account

sAmount Accoun

tsAmount

1 SGSY 2476 21.43 142105 735.872 PMRY */PMEGP 2950 25.25 22639 228.183 SJSRY 1039 4.46 27127 49.434 DRI 1917 18.96 30253 65.595 MSE 11448 220.80 176459 3025.366 OTHERS 386884 3967.09 469671

935324.21

TOTAL 406714 4257.99 5095302

39428.64

* PMRY was discontinued w.e.f 01.04.2008

At the level of Rs.39428.64 crores, advances to women constitute 8.78% of total Bank credit as against the national norm of 5%.

174


CREDIT FLOW TO MINORITY COMMUNITIES

As per the feedback received from the member banks, 142721 Loans amounting to Rs.1810.92 crores were disbursed to Minority Communities during the quarter ended June 2012 as shown below:-

Amount in Rs.CroresSl. No.

Name of the Community

Disbursement during the quarter endedJUNE 2012 (April’12 to June’12)All Banks Public Sector Banks

Account Amount Account Amount

1 Muslim 69200 859.10 48405 647.922 Christian 73168 947.22 56035 812.323 Sikh 110 1.37 73 0.594 Zorastrian 29 0.09 3 0.015 Neo Buddist 214 3.13 96 2.10 Total 142721 1810.92 104612 1462.94

The outstanding advances to Minority Communities in the State have increased by Rs.1825.53 crores during the first quarter of the current fiscal. The outstanding advances to Minority Communities stood at Rs.21223.45 crores as at June 2012 is furnished below:-

Amount in Rs.Crores

Sl. No.

Name of the Community

Outstanding Position as ofJUNE 2012

All Banks Public Sector BanksAccount Amount Account Amount

1 Muslim 1038604 9969.64 695957 8042.59

2 Christian 129156411081.8

6 695726 8627.773 Sikh 906 24.74 764 20.974 Zorastrian 936 120.02 78 1.425 Neo Buddist 11871 27.19 885 11.37

Total 234388121223.4

5 1393410 16704.12Ministry of Finance, Govt. of India has advised that the share of credit flow to minority communities of Public Sector Banks (PSB) should be 15% of the Priority Sector Advances.

175

OUTSTANDING ADVANCES TO SPECIFIED MINORITY COMMUNITIES BY PUBLIC SECTOR BANKS – JUNE 2012

(Amount Rs.in Crores)

S.NO

NAME OF THE BANK

PRIORITY SECTOR

ADVANCES AS ON 30.06.12

O/s. advances to

Minority Communitie

s30.06.12

%

1 STATE BANK OF INDIA 28878.60 3283.15 11.37

2STATE BANK OF BIKANER & JAIPUR 149.83 11.99 8.00

3 STATE BANK OF HYDERABAD 616.96 84.32 13.674 STATE BANK OF MYSORE 646.12 31.47 4.875 STATE BANK OF PATIALA 361.76 13.78 3.816 STATE BANK OF TRAVANCORE 2528.06 1416.70 56.047 ALLAHABAD BANK 758.49 30.07 3.968 ANDHRA BANK 1045.41 118.10 11.309 BANK OF BARODA 3587.42 148.20 4.13

10 BANK OF INDIA 3946.23 399.22 10.1211 BANK OF MAHARASHTRA 427.42 18.49 4.3312 CANARA BANK 16680.15 1913.21 11.4713 CENTRAL BANK OF INDIA 4450.11 661.17 14.8614 CORPORATION BANK 5537.44 337.74 6.1015 DENA BANK 678.93 89.58 13.1916 INDIAN BANK 18904.42 2252.68 11.9217 INDIAN OVERSEAS BANK 20789.14 4004.57 19.2618 ORIENTAL BANK OF COMMERCE 1381.31 54.11 3.9219 PUNJAB NATIONAL BANK 2809.91 168.63 6.0020 PUNJAB & SIND BANK 85.39 2.22 2.6021 SYNDICATE BANK 3878.51 532.55 13.7322 UCO BANK 2369.85 391.08 16.5023 UNION BANK OF INDIA 4123.13 441.59 10.7124 UNITED BANK OF INDIA 332.38 0.00 0.0025 VIJAYA BANK 1652.79 145.61 8.8126 IDBI BANK LTD. 3730.55 153.89 4.13 TOTAL PUBLIC SECTOR BANKS 130350.32 16704.12 12.81

176

AGENDA No:14 131st SLBC KISAN CREDIT CARD SCHEME (KCC)

Kisan Credit Card Scheme introduced in August 1998 has since stabilized with major share of crop loans being routed through this scheme. Reserve Bank of India has advised that investment credit requirements of farmers viz. allied and non farm activities may also be covered under the Scheme. All KCC Holders have to be covered under Personal Accident Insurance Scheme (PAIS).

As per the progress report submitted by Member Banks, during the period from April 2012 to June 2012, Banks in Tamil Nadu have issued 300187 Kisan Credit Cards to the tune of Rs.3611.27 crores. The details are furnished in the annexure.

Member Banks are requested to furnish the data to SLBC in time for timely review.

177

PERFORMANCE OF BANKS UNDER KISAN CREDIT CARD SCHEME FROM APRIL 2012 TO JUNE 2012

(Amount in Rs.Lacs)Sl. No.

Name of the BankCrop Loans Term Loan Total

No Amount NoAmoun

t NoAmoun

t1 Allahabad Bank 116 207 29 52 145 2592 Andhra Bank 1466 178 13 49 271 1743 AXIS Bank 262 1642 247 44563 509 462054 Bank of Baroda 280 301 280 3015 Bank of India 12132 8214 2655 2709 14787 109236 Bank of Maharashtra 7 Canara Bank 5996 4542 3933 2957 9929 74998 Catholic Syrian Bank Ltd. 37 14 37 199 Central Bank of India 2618 1250 2618 1250

10 City Union Bank Ltd. 21 22 50 47 71 6911 Corporation Bank 1006 788 15 40 1021 82812 Dena Bank 4 7 8 16 12 2313 Dhanalakshmi Bank Ltd. 14 Federal Bank Ltd. * 15 HDFC Bank Ltd. 44 176 10537 22646 10581 2282216 ICICI Bank Ltd. 743 330 743 33017 Indian Bank 8107 5197 152 170 8259 536818 Indian Overseas Bank 96681 157873 4906 2332 101587 16020519 Indus Ind Bank Ltd. 20 IDBI Bank Ltd. 2500 4058 2500 405821 ING Vysya Bank Ltd. 40 23 63 34 103 5722 Jammu & Kashmir Bank Ltd. 23 Karnataka Bank Ltd. 24 Karur Vysya Bank Ltd. 70 88 2 5 72 9325 Lakshmi Vilas Bank Ltd. 29 57 29 5726 Oriental Bank of Commerce 10 17 10 1727 Pallavan Grama Bank 9047 6215 1859 2522 10906 873728 Pandyan Grama Bank 9474 2223 9474 222329 Punjab National Bank 776 848 776 84830 Punjab & Sind Bank 31 South Indian Bank Ltd. 2 1 2 132 State Bank of India 32285 23208 273 202 85994 5394633 State Bank of Bikaner & Jaipur 34 State Bank of Hyderabad 35 State Bank of Mysore 74 86 8 20 82 10736 State Bank of Patiala 37 State Bank of Travancore 37 119 37 11938 Syndicate Bank 1110 649 1110 64939 Tamilnadu Mercantile Bank Ltd. 114 47 145 67 259 11440 TNSC Bank Ltd. 76098 54273 1866 1314 77964 5558641 UCO Bank 3955 4165 235 96 4190 426142 Union Bank of India 7774 3706 125 215 7899 392143 Vijaya Bank 87 189 71 357 158 546

TOTAL27299

5 2807152719

2 8041230018

736112

7 Bank marked * has not submitted the data for June 2012

178


SELF HELP GROUPS (SHGs)

The approved target for SHG credit linkage 2012-13 is Rs.4000 Crores including the Non Mahalir Thittam Groups. Credit disbursement to SHGs during the four months period ended 11.08.2012 amounted to Rs.1326.82 Crores. The District wise performance to Self Help Groups under Mathi (through Tamil Nadu Women Development Corporation Ltd.) and Non-Mathi (direct lending) as on 11.08.2012 is furnished in the Annexure 1.

During the visit of Governor of Reserve Bank Of India, on 04.07.2012, the Deputy Governor (KCC) observed that the role of PLF can only be that of a facilitator and cannot become a borrower , thereby attaining the status of a NBFC.

SLBC requested the Managing Director of Tamil Nadu Corporation for Development of Women (TNCDW) vide its letter dated 21.07.2012 to offer their views on the above observation to discuss the issue in SLBC meeting. We have not received reply from TNCDW so far.

The members may deliberate on this.

The District-wise Revolving Fund Progress for 2011-12 upto 11.08.2012 is furnished in the Annexure 2.

179


180


181

AGENDA No: 16 131th SLBC

Progress Report on Economic Development Schemes implemented by TAHDCO

The details of performance under Bank Wise Loan Disbursement during the financial year 2011-2012 submitted by TAHDCO are furnished in the annexure.

Member Banks are requested to actively involve themselves in the implementation of these schemes.

182


183


REVIEW OF NPA ACCOUNTS IN PRIORITY SECTOR LENDING – MARCH 2012

The position of NPA under categories of Priority Sector Advances as on March 2012 is furnished below.

NPA POSITION AS ON March 2012

S No. Particulars (Rs in Crore)

% of NPA

1 NPA in Housing loans 630.26 2.80%2 NPA in Education loans 772.86 6.51%3 NPA in Agriculture Loans 2566.63 3.28%4 NPA in Loans to MSE 2734.01 4.74%

5 NPA in Loans under Weaker Section of Priority Sector Lending 851.99 1.67%

6 NPA in over all Priority Sector Lending

7523.36 4.33%

It is observed that the percentage of NPA has increased under all categories over March 2011. It is also observed that NPA position under all categories is on the lower side over December 2011 quarter. NPA under Priority Sector as of March 2012 has decreased upto 4.33% from 5.05% during December 2011 quarter. DCCs are also requested to review NPA position every quarter and coordinate recovery drive with the help of District Administration.

The State Government is requested to consider invocation of Revenue Recovery Act to improve recovery, as done in the neighbouring State of Kerala.

184

Bank-wise data on NPA in Housing Loans, Education Loans, Agriculture loans, MSE, Weaker Sections & Total Priority Sector Lending as of 31st

March, 2012 is furnished in the annexure. The following Banks who have not furnished the data on NPA as of March 2012 are requested to submit the same immediately.

Sl. No.


Name of the Bank

1 State Bank of Hyderabad 4 City Union Bank Ltd.2 Punjab National Bank 5 Lakshmi Vilas Bank Ltd.3 Syndicate Bank

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186


187


Success Story

One of the recommendations of the High Level Committee on Lead Bank Scheme is “Success stories could be presented in DCC/SLBC meetings to serve as models that could be replicated.

The Success Story received from Pandyan Grama Bank, Nadayaneri branch, Segment: SHG Name: Roja Mahalir SHG.Success story of: Pandyan Grama Bank, Nadayaneri

Mineral Water flows to bring Rural Prosperity

Roja Mahalir Self Help Group was formed by 20 housewives of a Tamil Nadu village who had lot of spare time at their disposal. The SHG provided them a common forum to meet, discuss and start something new which would benefit all of them.

This thought gave rise to a small but profitable project. The group availed credit assistance from the Nadayaneri branch of Pandyan Grama Bank, one of the two sponsored RRBs of IOB. The credit enabled them to start a Mineral Water Plant in their village.

This was not the type of industry where the owners get the work done by engaging workers. All 20 members of the SHG took turns for working in the plant and involved themselves thoroughly in the work. As bottles of packaged pure drinking water rolled out of their plant, their next task was marketing.Their collective efforts brought them success. Their products moved well in the vast market space of packaged water. They bagged bulk orders from the nearby Kalasalingam Group of Technical Institutions which is a deemed university in Virudhunagar District.

Now these twenty house wives are using their spare time and earning decent additional income for the family, thanks to the SHG they formed in 2003. They are themselves maintaining accounts, running machinery and marketing their product without depending on external assistance. This is the magic of India’s unique SHG model.

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