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STATE LEVEL BANKERS' COMMITTEE, TAMIL NADU
CONVENOR: INDIAN OVERSEAS BANK
MINUTES OF THE 126th S L B C MEETING
HELD ON 29.06.2011
126th SLBC Meeting of Tamil Nadu was held at Chennai on 29 th June, 2011. List of
participants is furnished in the Annexure.
Welcome Address :.
Smt. Nupur Mitra, Executive Director, IOB in her welcome address explained
the scope and coverage of the meeting and stressed the need for timely review
and initiation of corrective steps through timely submission and analysis of
data. She mentioned about the Annual Credit Plan for the year 2011-12 which is
prepared on the basis of district credit plans received from all the 31 districts
and emphasized special focus on crop loan disbursement as the key point of this
meeting.
Earlier, ED, IOB extended a warm and cordial welcome to Shri Debendranath
Sarangi IAS., Chief Secretary, Government of Tamil Nadu who attended the
SLBC Meeting for the first time. She also extended a warm welcome to Shri
N S Vishwanathan, Regional Director, RBI, Chennai, Smt. Lalitha Venkatesan,
CGM, NABARD, Chennai, who also attended SLBC Meeting of Tamil Nadu for
the first time.
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Key Note Address:-
Shri M. Narendra, Chairman & Managing Director, Indian Overseas Bank and
Chairman, SLBC, Tamil Nadu in his keynote address reviewed the progress made
by the Banking system in Tamil Nadu under various key parameters and outlined
the action areas for Banks as under: -
During the last few months, southern districts had received good rains, giving
the cherished boost to agriculture in the state. Opening of Mettur dam on 6 th
June followed by opening of other dams like Amaravathy and Manimutharu etc
shortly afterwards have augured well for agriculture. Cauvery Delta area is
poised to have three crops during the current year. All these events present
excellent opportunity and responsibility for Banks to finance farming
operations. CMD, IOB appealed to Banks to provide hassle free credit to
farmers. This is the time to enlarge the coverage of all eligible farmers under
KCC. He observed that the number of KCCs issued has come down during the
year under review and he also appealed to Banks to use this season to increase
issuance of KCCs on a large scale in the current year.
Financial Inclusion:
Currently Financial Inclusion Project focuses on extension of banking services
to villages having population over 2000, which is under close monitoring of
Ministry of Finance as well as RBI.
As per the progress report submitted by Banks, only 2077 villages have been
covered by Banks upto March 2011 against the targeted level of 2188 villages
by March 2011 and another 2197 villages to be covered by 31.12.2011,
aggregating to 4385.
The total number of villages remaining to be covered continues to be high at
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2308 villages. Hence, he appealed to Banks to step up their efforts and ensure
100% coverage by December 2011.
Ministry of Finance, Government of India has already initiated steps for
coverage of villages with population above 1000 in the next stage. 4430 villages
having population between 1000 and 2000 have been identified through
respective DCCs and allotted to Bank Branches for extension of Banking
Services. However, no roadmap has been drawn for coverage of these villages.
CMD, IOB requested all the Banks to prepare their action plans for covering
these villages.
Indian Banks’ Association has been requested to take lead in carrying out a
national level awareness campaign targeting beneficiaries of Financial Inclusion
Plan. The Campaign was formally inaugurated in New Delhi on 10.02.2011. To
take forward this campaign to the gross-roots, an action plan needs to be
chalked out. IBA is participating in the SLBC Meeting to inform us about the
modes and strategies for spreading out the message.
RSETIs & FLCCCs:
(Rural Self Employment Training Institutes and Financial Literacy cum Credit
Counselling Centres)
The total number of RSETIs have been set up in 22 out of the 31 districts of
the State. The remaining 9 RSETIs have to be opened by two allottee Banks.
He requested them to set up RSETIs in their allotted districts expeditiously,
so that Tamil Nadu would be achieving 100% coverage of all districts.
CMD, IOB expressed concern over the slow progress in setting up FLCCCs.
During the deliberations in SLRM 2010 held on 14.12.2010, it was decided to set
up FLCCCs in all the districts by June 2011. But, still 15 districts are yet to be
covered. He appealed to all the three Lead Banks concerned to set up FLCCCs
in their remaining Districts immediately.
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Some banks are showing interest in opening more than their allotted shares of
these institutes. Although the scheme stipulates allotment of land and funding
support to only one RSETI in every district, there are no restrictions on the
total number in any district.
Highlights of Banks’ Performance in Tamil Nadu
He then listed out some of the highlights of the achievements of the Banking
system in Tamil Nadu as at the end of March 2011.
CD Ratio as of March 2011 has reached the level of 114.49%, although in one
district viz., Kancheepuram, it still remains less than 60%.
Deposits have increased by 16.09% in the state during the 12 months period
ended March 2011.
Aggregate Credit Outstanding increased by 21.83% during the year ended
March 2011
The share of Priority Sector advances to total credit is 47.49% as of March
2011 against the national norm of 40%.
The share of agricultural advances as on March 2011 was 19.18% against the
national norm of 18%.
The share of advances to weaker sections increased to the level of 11.84% as
on March 2011 against the national norm of 10%.
He congratulated all Banks for having achieved the annual target and surpassed
the national norm in three important key parameters, viz., Priority Sector
Advances, Agricultural Advances and Advances to Weaker Sections.
Government Sponsored Schemes:-
Under Swarnajayanti Gram Swarozgar Yojana (SGSY), Banks have disbursed
Rs.507.97 Crores in the current year upto March 2011 against the annual target
of Rs.243.94 Crores. CMD, IOB, congratulated the Tamil Nadu Corporation for
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Development of Women Limited as well as all Banks for this remarkable
achievement under SGSY.
He noted that credit subsidy ratio for economic activity has attained the level
of 2.95 just a shade less than 3.
Under Swarna Jayanti Sahari Rozgar Yojana (SJSRY), subsidy utilization has
been upto the level of 70.50% upto March 2011. He appealed to member Banks
to dispose of the pending loan applications under SJSRY immediately so as to
ensure 100% utilization of subsidy in the current programme year.
Action: Member Banks / Dept. of Municipal Admn.
Performance under Annual credit Plan (2010-11) upto March 2011.
As per quick information reports received, under Annual Credit Plan 2010-11
Banks in Tamil Nadu have disbursed Rs.52,224 Crores upto March 2011,
achieving 110% of the annual target of Rs.47,428 crores.
Credit flow to the agricultural sector amounted to Rs.31,404 crores while
Credit flow to Non Farm Sector was for Rs.10,375 crores. Other Priority
Sectors got Rs.10,445 crores.
Annual credit Plan for 2011-12
Annual Action Plan for the state for the current financial year has been drawn
up on the basis of District Credit Plans received from the districts.
For the current year, an allocation of Rs.56,622 Crores has been made under
ACP 2011-12. Farm Sector accounts for Rs.31,017 Crores while the allocation
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for Non Farm Sector is Rs.12,582 Crores. Other Priority Sector accounts for
Rs.13,022 Crores. He appealed to Member Banks to ensure 100% achievement
under Annual Credit Plan in the current year too.
He recalled to renew his request to State Government to notify, under
Transfer of Property Act, all banked centers in the State as done by
Government of Kerala and some other states. This would help the borrowers
and beneficiaries to avail loans without having to go to another place to deposit
their title deeds for creating mortgage.
Chairman, SLBC acknowledged the whole hearted and continued support
received from the various Departments of Government of Tamil Nadu, Reserve
Bank of India, NABARD and the member Banks both at the State level and at
the Districts level and thanked them for the same.
Inaugural Address:-
Shri Debendranath Sarangi I.A.S., Chief Secretary, Government of Tamil
Nadu, in his inaugural address made the following observations:-
Chief Secretary noted that Banks have exceeded the national targets in
important sectors like Agriculture, Priority Sector & Weaker sections and
pointed out that from the dynamism of Banks & Bureaucracy in Tamil Nadu the
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achievement is no surprise to him.
He called upon Banks to ensure exemplary performance in the current year
especially in increasing credit disbursement.
He appraised the forum that the new Government has a Development Agenda to
give a big impetus to sectors like Agriculture, Dairy, infrastructure,
development of women & children etc. , and pointed out that Banks have also
responsibility in developing these sectors.
Chief Secretary also added that State Government is in the process of
preparing visual document 2020-25 for overall development of the State, which
will be ready within 4 to 6 months. The visual document will be made available
to Banks stating that the role of Banks will be crucial in the schematic
investment, he appealed to Banks to actively promote investments / deploy
credit in the identified sectors. He also assured full support from the
Government for the Bank’s endeavors in this regard.
SPECIAL ADDRESS:-
Shri K. Shanmugam, IAS., Principal Secretary, Finance, Government of Tamil
Nadu observed as under in his Special Address:-
As regards performance of Banks under key parameters and Government
sponsored schemes, the Southern Region in general and Tamil Nadu in particular
always do well. In the meeting at Hyderabad last year, the performance of
Southern Region especially Tamil Nadu was observed to be excellent. He
expressed confidence that there will not be any problem in achieving the
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targets in the current year also.
He appealed to Banks to prepare a Model Scheme to extend credit to Rural
Unemployed Youth for setting up “Agro Processing Centre”, to sort out labour
shortage problem and to increase the use of machinery & farm implements.
Drip Irrigation is a priority area, the Government is focusing on. So far the
coverage under Drip Irrigation is only to the tune of 1 Lac hectares which is
very very small portion of net sown area.
The scheme has got Government subsidy support and when used with high tech
farm practices like precision farming will increase productivity and income. He
appealed to Banks to enlarge credit to farmers adopting Drip Irrigation.
He also suggested that credit for high density cultivation for Horticulture
crops may be tied up with Drip Irrigation.
He also called for financing potato cultivation especially in urban surroundings &
also fruits & vegetables.
The Principal Secretary, Finance, Government of Tamil Nadu advised Banks to
focus on setting up Agro Processing Centres for perishables like vegetables,
fruits etc., so that the supply is evened out and sudden fluctuation in price to
the disadvantage of farmers is avoided.
State Government is attaching lot of importance to Animal Husbandry which
provides supplementary income to farmers. Banks may think of a scheme for
providing 3 to 5 milch animals on a client basis for establishing milch route, cold
storage etc.
He also added that Government will be bringing a scheme to improve the lot of
MSE sectors and advised Banks to keep their focus on enhancing credit
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disbursement to the MSE Units.
He noted that 50% coverage is low under Financial Inclusion. Pointing out that
some banks are yet to cover even one village under Financial Inclusion, he
appealed to all Banks to evince interest in the project and enlarge 100%
coverage by December 2011.
As regards setting up of RSETIs, he suggested that existing infrastructure like
RTC / SIRD can be utilized for setting up RSETI.
Shri N.S.Vishwanathan, Regional Director, RBI, Chennai in his special address
to the forum made the following observations:-
RD, RBI expressed satisfaction that Banks have done well in key parameters on
global basis. But in specific areas, Banks need to do better.
Under Financial Inclusion Project, coverage of villages with population over
2000, few Banks, to whom 608 villages have been allotted are yet to start the
coverage.
As part of Platinum Jubilee celebration, RBI laid emphasis on Financial
Inclusion, Financial Literacy etc. He pointed out that RBI Governor has already
advised to move from the target based approach to substantive financial
inclusion. The performance has to be not merely number of No-Frills accounts
opened, smart cards issued etc., but enabling the poor to gain access to various
financial services from Banks. This is the area where Banks & Government need
to focus on.
Lack of financial knowledge is the cause for many credit related problems. It is
necessary to ensure speed of financial literacy. In fact RBI had requested
some State Governments to include financial literacy in the school syllabus so
that students at very early stage get imbibed in financial literacy.
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RD, RBI emphasized on the development of MSME sector and especially quick
rehabilitation of sick units.
He pointed out that Government of India has set a target of Rs.4.75 lacs crores
credit disbursement to agriculture which has to be dovetailed to ACP in all the
States. He advised to look at ACP through the Budget allocation of Rs.4.75 lacs
crores.
In January-February 2010, RBI advised Banks to prepare a Board approval plan
for Financial Inclusion. In the first step, Banks were advised to extend banking
services to villages having population over 2000. Now smaller villages having
population between 1000 and 2000 have to be covered. Such villages have been
identified and allocated to Banks.
Banks need to prepare an action plan for the same. BC Model & Technology help
to extend banking services in a cost effective manner. BC Model needs to be
stabilized so as to evolve confidence among people.
He expressed confidence that with the support of State Government, Banks will
not only repeat but even better their performance in the current year.
Smt. Lalitha Venkatesan, Chief General Manager, NABARD, Chennai observed
as under in her special address:
Planning Commission has set up a working group on outreach of Institutional
Finance to Corporations and Risk Management under the 12 th Five Year Plan
under the Chairmanship of Dr. Y.S.P. Throat, Former Chairman, NABARD and
Dr. Prakash Banshi is the Member Secretary.
The field level credit target to Agriculture for 2011-12 for the country as a
whole is Rs.4,75,000 crores. State-wise target were fixed and the target for
Tamil Nadu is Rs.40,556 crores. But ACP 2011-12 has set the farm credit
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target of Rs.31,017 crores. Pointing out that the achievement for 2010-11
itself is more than the target of 2011-12 set under ACP, CGM, NABARD advised
Banks to take Rs.40,556 crores as the target for farm credit.
Further the achievement in 2010-11 is to the extent of 123%. In the current
year, the Government of India target of Rs.40,556 crores is 129% of ACP 2011-
12 farm credit target and hence within the reach of the people especially in the
content of the various sectors outlined by Principal Secretary (Finance) &
target of 1,50,000 tons of food grains set by the Agriculture Production
Commissioner.
CGM, NABARD drew the attention to the directive of Hon’ble Union Finance
Minister for year on year increase by 20% both in number & amount and
appealed to Banks to enlarge the concept of farmers under KCC accordingly.
CGM, NABARD appealed to Banks to give wide publicity to Weather based Crop
Insurance and enhance coverage of crops under the same.
NABARD has launched a proposal for payment of pension for rural poor and
SHG members from the Financial Inclusion Fund. The scheme is being
implemented on a pilot basis in 4 states viz., Bihar, Odisha, U.P & Tamil Nadu.
In Tamil Nadu, it is implemented in the districts of Cuddalore and Madurai,
when it was inaugurated on 6/6/2011.
CGM, NABARD also pointed out that formation of 3 lacs SHGs and enlargement
of KCC action plan has to be drawn up jointly by Banks, Government & NABARD.
The number of KCC, Amount & JLG/SHG go in tandem and achievement under
KCC will ensure achievement of farm credit target.
For Smart card & POS machines, financial support is available from NABARD to
Commercial Banks, who can make use of the same.
NABARD has recently introduced Capital Subsidy Scheme for solar panels
under Jawaharlal Nehru National Solar Mission. Both capital subsidy and
interest subsidy can be availed under the scheme.
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NABARD has already issued circulars on all these schemes. CGM, NABARD also
noted that the utilization of various scheme is on a higher rate in Tamil Nadu.
Ms. Surinder Kaur, Under Secretary, Department of Financial Services,
Government of India made the following observations:-
Financial Inclusion is one of the major concerns of Government of India. Upto
March 2011, only 2077 villages are covered which is less than 50%. 18 Banks to
which 608 villages have been allotted are yet to cover a single village. She
appealed to Banks to ensure coverage within the stipulated date.
After these addresses by Dignitaries, the Agenda was taken up for discussion.
AGENDA: 1
Confirmation Of The Minutes Of The Earlier Meeting
The forum confirmed the minutes of the 125 th SLBC Meeting held on 28.02.2011.
AGENDA: 2
Follow-up Action on the decision of the earlier meetings
Notification of Centres for Deposit Of Title Deeds for Creation of Equitable
Mortgage Transaction (EMT)
Taking note that the matter has been taken up many a time in the past with State
Government & Chairman, SLBC, Tamil Nadu has also made a request in this regard,
the forum appealed to State Government to expedite notifications of all the
centres where Bank Branches are located as notified centres as done in Kerala.
Action: State Govt.
AGENDA: 3 New Issues
1. Providing banking services in every village having population of 1000 Plus
Shri S.N. Misra, GM, IOB, explained that currently Banks are in the process of
extension of Banking services to villages having population over 2000. In the next
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phase villages having population between 1000 and 2000 need to be covered for
which the villages in Tamil Nadu have been mapped. There are 4494 villages having
population between 1000 and 2000 in Tamil Nadu of which 4430 have been
identified and allotted to Banks by respective DCCs. The details of villages with
District wise / Bank wise allotment have already been forwarded to Member Banks
(soft copy). DCCs have also advised Banks with regard to allotment within the
District. Banks need to cover these villages also simultaneously with villages having
population over 2000 wherever feasible / contiguous and cover the rest of the
villages (1000+) in the next stage.
Shri M. Narendra, Chairman & Managing Director, IOB & Chairman, SLBC, Tamil
Nadu advised Banks to apprise on the action plan for covering villages having
population of 1000 plus.
Banks informed that in certain cases they have already stated covering these
villages on their own & having plans to cover all these villages in a phased manner.
After the deliberations, the forum advised Banks to ensure time bound action plan
to cover the contiguous 1000 plus villages concurrently with “over 2000” and
others subsequently.
Action : Banks
2. Providing banking services in every village having population of over 2000
Shri M. Narendra, CMD, IOB & Chairman, SLBC, Tamil Nadu advised the Banks
which are yet to cover even a village by March 2011 to advise the current position
and also when such Banks are likely to ensure coverage.
Shri R. Gopalakrishnan, Zonal Manager, Bank of India informed that all the 1 10
villages have been covered and reported to Bank’s Head Office. Regretting for the
misreporting, he assured to submit a letter to SLBC immediately.
Smt. Usha Ananthasubramanian, GM, Bank of Baroda informed that 44 villages have
been covered and the rest will be covered in the current year before December
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2011.
Shri Praveen Anand, AGM, Punjab National Bank informed that no-frill accounts
have been opened and BCs have been appointed. Only technology tie up is to be
done and assured that coverage will be achieved by December 2011.
Shri S.K. Bhasyam, GM, Union Bank of India apprised the forum that the work of
opening of no-frills account, appointment of BCs etc., are in progress and assured
that coverage will be done by September 2011.
Shri M. S. Alagan, Chief Manager, UCO Bank informed that all the villages have
been covered, 7 by mobile van and rest through ICT model.
Shri K. Thangarajan, Regional Manager, Pallavan Grama Bank informed that
technology provider has since been identified & coverage will be achieved within
the deadline viz., December 2011 set by the forum.
Mr. R. Ravindran, AGM, Tamilnad Mercantile Bank Ltd., assured the forum that the
coverage will be done by July 2011.
Noting that 2077 villages have been covered upto March 2011, the forum advised
Banks to ensure 100% coverage by December 2011.
Action : Banks
The forum noted that the representative of Lakshmi Vilas Bank Ltd., has not
attended the meeting and advised the Bank to inform the current position to SLBC
immediately.
Action : Lakshmi Vilas Bank
3. Financial Inclusion
The forum noted that 64.28 lacs no-frills accounts have so far been opened by
Banks in Tamil Nadu. The forum advised Banks to submit data on no frill account
promptly to SLBC.
Action : Banks
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The forum also requested State Government to route the benefit payments
through respective Bank Branches who have covered the villages under financial
inclusion.
Action : State Govt.
4. Setting up of Rural Self-Employment Training Institutes (RSETIs)
Shri M. Balakrishnan, DGM, Indian Bank informed the forum that RSETI in the
remaining 7 Lead Districts would be set up before September 2011.
Shri Joseph Mathew, DGM, State Bank of India, informed that they have already
set up RSETIs in Ariyalur & Tuticorin Districts.
Shri S. Rajagopal, Senior Manager, Canara Bank informed the forum that RSETIs
in the remaining two Districts viz., Madurai & Coimbatore will be set up by
September 2011.
The forum after deliberations advised Lead Banks to take up the matter with
respective District Collectors for allotment of land / existing infrastructure. The
forum also requested State Govt. to expedite allotment of land and issue necessary
instructions to District Collectors in this regard.
Action : Banks / State Govt.
5. Setting up of Financial Literacy & Credit Counselling Centres (FLCCC)
Shri M. Balakrishnan, DGM, Indian Bank informed the forum that FLCCC in the
remaining 9 Lead Districts would be set up in July – September 2011 in a phased
manner.
After deliberations, the forum advised other 2 Lead Banks also to set up FLCCCs in
their Lead Districts immediately.
Action : Indian Bank / Canara Bank/ State Bank of India
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6. Study Report on verification of borrowers and end use of funds under
Government Sponsored Schemes - NIRD Report
The forum advised Banks and Government to take note of the observation of the
Study Report, viz., only financial targets achievement is given importance and
qualitative aspects and schemes with high orientation of subsidy perform worse
than others. The forum also advised banks to remove the shortcomings in the
implementation of Govt. Sponsored Programme as per the above study report. The
forum pointed out that DCCs also should orient their deliberation/action plan to
adjust the shortcomings brought out by the study report.
Action : SLBC / DCC / Banks / Govt. Depts.
7. Closure of Dyeing Units in Tiruppur
The forum appealed to State Government to permit adjusting of the subsidy
amount lying in SB A/c. to respective loan accounts.
The forum also appealed to State Government to do the needful for restoration of
functioning of units.
Action: Govt. of Tamil Nadu
8. Crop Insurance Schemes
Shri K. Arulmozhi, IAS., Agriculture Production Commissioner (APC), Government
of Tamil Nadu informed the forum that the coverage under National Agriculture
Insurance Scheme (NAIS) gone upto 3 lacs loanee farmers and 5 lacs non-loanee
farmers in 2010-11. He pointed out that Government of Tamil Nadu is meeting 50%
of the premium for both loanee & non-loanee farmers. He added that crop loan
against jewels are not covered under NAIS & appealed to Banks to advise their
branches to cover crop loan against jewels also under insurance. He also explained
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the efforts taken by State Government to improve the productivity of crops like
sugarcane, paddy etc., and requested Banks to expand finance for cultivation of
sub crops.
Shri M. Narendra, CMD, IOB & Chairman, SLBC suggested that the scheme details
may be made available to SLBC for circulation among member banks. It can be
correlated with NABARD scheme and improved further.
APC also referred to letter of Chief Secretary to RBI for ensuring compulsory
coverage under insurance for meeting crop loss. Loans not covered under insurance
ineligible to be classified as Agri / Priority loans.
Shri N.S. Vishwanathan, Regional Director, RBI, Chennai responded that making
insurance coverage compulsory rests with Government of India, which formulated
the scheme. As regards making crop loans / crop loans against jewels, ineligible to
be classified as Priority Sector advances if not covered under insurance, he
pointed out that coverage under Priority Sector based on end use and so long as
the loan is utilized for agriculture, it would be difficult to make the same ineligible
for being classified under Priority Sector.
Shri C. Anbarasu, Regional Manager, Agriculture Insurance Company of India Ltd.,
(AICI) explained that under Weather Based Crop Insurance Scheme (WBCIS), the
credit limit has to be taken into account for calculating the premium. The premium
is sanctioned limit x acreage x percentage which amounts to sizable amount. This
is the Government of India directives and Banks need to implement the same. But
the coverage under WBCIS is very poor.
The forum after deliberations reiterated that crop loans including crop loans
against jewels should be covered under insurance for all the notified crops in
notified areas.
The forum also advised to cover to specified crops in specified districts under
WBCIS taking sanctioned limit into account.
Under both insurance schemes, the forum advised Banks to enlarge coverage
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substantially. Action: Banks
9. Government of India’s Agricultural Debt Waiver & Debt Relief Scheme 2008
– CAG Audit
Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu explained that the scheme
is subject to CAG Audit and Banks were advised to submit Performance Audit
Report & Grievance Details both in hard & soft form as early as July 2010. But a
few Banks are still to submit the same and the names of the Banks are furnished in
the agenda. These Banks are requested to submit the details immediately.
In May 2011, CAG team visited SLBC Office as part of commencement of audit. An
Entry Conference was held in which the Deputy Accountant General, Chennai
participated.
Bank Branches which will be visited and audited were announced. In all, CAG has
selected 40 branches, the details of which have already been forwarded to
respective Banks. CAG apart from scrutinizing the books of accounts, will also be
meeting farmers at branches. Branches concerned need to put up notice in their
Notice Board that CAG audit is being carried out and farmers will be met. CAG
team will be distributing the questionnaire to farmers for drawing their views as
part of the survey.
After the deliberations, the forum advised the defaulting Banks to submit the
performance audit and grievances details to SLBC immediately.
The forum also advised Banks to extend their cooperation to the CAG Audit Team
and put up the notice as advised.
The forum also noted that towards the completion of audit, there will be an Exit
Conference.
Action: Banks
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10. Indira Gandhi Matritva Sahyog Yojana (IGMSY) – A Conditional Maternity
Benefit Scheme
Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu explained that under the
scheme, a cash incentive of Rs.4000/- is provided in 3 instalments to every
pregnant and lactating woman aged 19 & above subject to certain conditions. Banks’
role is to open No-Frills accounts to such beneficiaries for receiving the amount
through Bank.
The forum advised Banks to open No Frills A/c. to such beneficiaries and facilitate
payment in coordination with Nodal Department.
11. Reservation for SC / STs – Follow up of Bogus Caste Certificate Cases
Shri Joseph Mathew, DGM, SBI informed that the issue of false caste
certificates has been discussed in SLBCs of other States and hence SBI wanted to
draw the attention of authorities concerned for doing the needful through the
forum of SLBC.
Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu responded that the
problem is issuance of false caste certificates due to which wrong people have
entered the service. Hence, the role of SLBC in mitigating the same is limited.
The forum requested State Government to ensure against issuance of false caste
certificates.
Action : State Govt.
AGENDA No: 4
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REVIEW ON BANKING DEVELOPMENTS IN TAMILNADU ON KEY
PARAMETERS AS OF MARCH 2011
The forum noted that Deposit & Credit growth was to the extent of 16.09% &
21.83% respectively.
The forum also advised Banks to accelerate lending under DRI Scheme.
Action: Banks
AGENDA No: 5
REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN
2010 – 2011: APRIL 2010 TO MARCH 2011
The forum took on record that achievement under ACP 2010-11 is to the extent of
110% with the achievement under Farm Sector, Non-farm Sector & Other Priority
Sector being 123%, 94% & 96% respectively.
The forum advised Banks to ensure 100% achievement under ACP 2011-12 under all
the three sectors.
Action : Banks
AGENDA No: 5A
ANNUAL CREDIT PLAN 2011-12
Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu explained that ACP is
prepared on the basis of PLP released by NABARD as per RBI guidelines. The
preparation of ACP is a bottom up approach wherein bank branches prepare the
plan at branch level which is then aggregated at Block, Taluk & District level.
District Credit Plan received from all the Districts are aggregated to arrive at the
State Plan. However from last year onwards Govt. of India is also advising targets
through NABARD, which is higher than the one projected at District level. He
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sought the view of Banks.
Shri K. Arulmozhi, IAS., Agriculture Production Commissioner (APC), Government
of Tamil Nadu pointed out that for certain crops like pulses etc., the allocation is
less than the previous year and bulk of the plan viz., 11020 Crores is classified
under miscellaneous and would break-up for the same.
Shri Joseph Mathew, DGM, SBI pointed out that winter crops like turmeric etc.,
has not been captured.
APC pointed out that turmeric is grown in one lac h.a. is a major crop, similar is the
case for Tapioca.
Shri M. Balakrishnan, DGM, Indian Bank pointed out that Banana is also not listed
separately. Further crop loans for plantation of horticulture crops also come under
Miscellaneous category.
Representative of Department of Agriculture called for the details of major crops
under Miscellaneous category. Further the allocation for pulses has actually come
down while the State Government is going all out to increase the production.
Shri M. Narendra, CMD, IOB & Chairman, SLBC, Tamil Nadu suggested that
instructions may be sent to the LDMs of these Districts which reduced the plan
size for pulses in ACP 2011-12 to review the same and inform the Banks in the
Districts.
After the deliberations, the forum while apprising the plan advised Banks 1) to
achieve the farm credit target advised by Govt. of India viz., Rs.40556/- crores.
2) to provide break up details for crop loan (Miscellaneous) to LDMs for onward
transmissions to SLBC.
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AGENDA No: 6
SWARNA JAYANTI SHAHARI ROZGAR YOJANA (SJSRY)
Shri N. Parthasarathy, Technical Officer, Municipal Administration department
apprised the forum that as on date subsidy utilization level has gone up to 77%. He
appealed to Banks to ensure disposal of all pending loan applications for the
performance year 2010-11 before first week of August 2011.
He also added that Action Plan for the current year has been advised to all the
Urban Local Bodies without waiting for release of funds from centre. The plan
contains sub target for SC/STs and Minorities and requested Banks to ensure
100% subsidy utilization.
Action: Banks / Municipal Admn. Dept.
AGENDA No: 7
Prime Minister’s Employment Generation Programme (PMEGP)
Smt. Vijayam Sathish, Asst. Director, KVIC informed that Rs.15.00 Crores have
been released and disbursed to Nodal Bank Branches. Another instalment is
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expected in a month’s time. As the funds are released based on the utilization
certificate, she requested Banks to settle Margin Money claim of branches and
inform KVIC.
After deliberations, the forum approved Margin Money Target of Rs.33.23 Crores
for the Current Year 2011-12.
The forum also advised KVIC to arrange for release of Margin Money against
pending claims from Banks.
Action: Banks / KVIC
AGENDA No: 8
SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY)
Shri J Ganesh Kanna, AC (Micro Credit), TNCDW, informed the forum that the
credit mobilization target for SGSY at Rs.297.38 Crores is up to December 2011.
From 2012 onwards NRLM will be implemented for which the Government has sent
its report / view to Centre.
The forum after deliberation advised Banks & TNCDW to work together and
ensure achievement of Target.
Action: Banks / TNCDW AGENDA No: 9
Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)
Shri S.S. Narayanamoorthy, Superintendent Engineer, TNHB apprised the forum
that so far 53,275 loan applications have been forwarded to Banks of which 4328
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loans have been sanctioned. State Bank of India have sanctioned 1607 loans out of
14756 loan applications received by them. Indian Overseas Bank have sanctioned
1314 loans out of 9239 loan applications received by them. He appealed to Banks to
advise their branches to expedite sanction and disposal of loan applications.
Shri W. Christopher Robin, Relationship Manager, NHB pointed out that though
4328 loans have been sanctioned, disbursement has not taken place in respect of
all loans and interest subsidy claim has not been made. He appealed to Banks to
expedite disbursement and submission of claim for subsidy.
Shri Joseph Mathew, DGM, SBI informed that their Bank received around 12000
loan applications and sanctioned 1610 loans. SBI returned around 2200 loan
applications. Some of the reasons for return of loan applications are incomplete
loan applications, non-submission of building estimate, non- compliance of KYC
norms, non-submission of income certificate, non-submission of building plan.
Further ineligible borrowers viz., age above 60yrs, patta not in the name of the
applicant, borrower is already owning a house, applicants who are already
defaulters to the Banks etc. Hence the Nodal Agency has to do preliminary
scrutiny to ensure that the loan applications are full & complete, which point has
been put across in earlier meetings also. Further the beneficiaries are also turning
towards another Government Housing Scheme as the subsidy and loan amount is
higher.
Shri M. Balakrishnan, DGM, Indian Bank concurred that Indian Bank has also faced
similar shortcomings and brought the same in the earlier meetings. The forum
after deliberation advised:
1) TNHB to make preliminary scrutiny and forward the applications in complete
form.
2) Banks to expedite sanction, disbursement and claim of subsidy.
3) Advised Banks to take note of the decision of Steering Committee leaving EMI /
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income ratio be left to the Banks &
4) Advised TNHB / TNSCB the nodal agencies to take note of Steering Committee
on the relaxation of plot size.
Action: Banks / TNHB / TNSCB / LDMs
AGENDA No: 10
BANK FINANCE UNDER HOUSING SCHEME:
The forum took on record that housing loan disbursement was to the tune of
Rs.3269.20 Crores against the target of Rs.1576.77 Crores.
The forum also noted that more number of loans viz., 4818 have been granted
under sub Rs.5 lacs category.
Agenda : 10(a)
GOLDEN JUBILEE RURAL HOUSING FINANCE SCHEME (GJRHFS)
The forum noted that 6682 loans to the tune of Rs.5987.15 Crores have been
disbursed during the year ended March 2011 under the Scheme.
Action: Banks
AGENDA No: 11
Educational Loans
The forum took on record that 157024 loans to the tune of Rs.2663.99 Crores
have been granted during the year ended March 2011, of which SC/ST, Minority
Communities & Women account for 27210 loans, 12967 loans & 44258 loans
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respectively.
Action: Banks
AGENDA No: 12
MICRO & SMALL ENTERPRISES (MSE) SECTOR
Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu pointed out that coverage
under CGTMSE is poor in respect of many Banks and also in a few districts, which
needs to be improved.
Shri N.S. Vishwanathan, Regional Director, RBI explained that at the ground level
people have comfort with collateral security rather than guarantee. Further the
awareness level of the scheme at ground level is also very low.
Shri S.N. Misra, GM, IOB added that even plan outlay is very poor for Non Farm
Sector in districts like Ariyalur, Nagapattinam, Pudukottai, Perambalur,
Thiruvannamalai, Tiruvarur etc., and advised the Lead Banks of these districts to
revise the plan allocation to NFS and enhance the same.
The forum took on record the disbursement to MSE during the quarter ended
March 2011 to the extent of Rs.2442.66 crores & Rs.2868.61 Crores respectively.
Noting that only in respect of 5 Banks the share of Micro enterprises is 50% &
above consequent on which the State as a whole could not achieve 50% norms. The
forum advised Banks to ensure the share of Micro enterprises is enhanced to 55%
by March 2012.
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Action : Banks AGENDA No: 13
CREDIT FLOW TO WOMEN
The forum noted that the share of credit to women constituted 8.41% as of March
2011
Action: Banks
AGENDA No: 14
SELF HELP GROUPS (SHGs)
Shri Ganesh Kanna, AC(MC), TNCDW thanked the Banks for the excellent
cooperation in executing credit linkage target of 3000 crores by achieving
disbursement of Rs.3474.20 Crores.
He added that for the Current Year 2011-12 tentative target of Rs.5200 Crores
has been fixed and the district wise targets are furnished.
He also requested Banks to consider granting multiple doses of credit to SHGs to
meet their production & consumption needs.
The forum also advised Banks to consider the request of TNCDW on sharing the
data on MFI.
After the deliberations, the forum approved the tentative target of Rs.5000
Crores and advised Banks & TNCDW to work together for achieving the target in
the Current Year.
Action: Banks / TNCDW
AGENDA No: 15
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CREDIT FLOW TO MINORITY COMMUNITIES
Shri T. Rizwan Ahmed, Manager, TAMCO, called for details of credit disbursement
in addition to outstanding advance details.
The forum noted that only 5 Public Sector Banks have achieved the target in 2010-
11.
The forum after deliberations, advised Public Sector Banks to increase their
lending to Minority Communities so as to achieve the target of Rs.16281 Crores in
the Current Year.
The forum also advised Banks to provide disbursement details and advised SLBC to
revise the format.
Action : Public Sector Banks / SLBC
AGENDA No: 16
KISAN CREDIT CARD SCHEME (KCC)
Smt. Lalitha Venkatesh, CGM, NABARD pointed out that while the amount
disbursed under KCC has increased, the number of KCCs could not have gone down
in the year 2010-11. CGM, NABARD & Regional Director, RBI called for the details
of Banks which reported lesser number of cards during 2010-11 in comparison to
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2009-10.
Agriculture Production Commissioner requested for details of number of KCCs
issued by Banks up to June 2011 in Tamil Nadu in the Current Year.
The forum after deliberations suggested that the Action Plan for promotion of
JLGs / SHGs – KCC linkage advised by the Secretary, Agriculture Department,
Govt. of India at Block / Village level for aggregation at District / State level.
Action : Banks / LDMs /Agri.Dept.
AGENDA No: 17
Progress Report on Economic Development Schemes implemented by TAHDCO
Shri K. Harikrishna Pillai, Company Secretary, TAHDCO pointed out that subsidy
amount is released by TAHDCO with a stipulation that the loan has to be
sanctioned within 6 months from the date of release. However in 2010-11, Banks
returned subsidy to the tune of Rs.4.00 Crores thereby denying the benefit to
1600 beneficiaries. He appealed to Banks to avoid such return of subsidy in the
Current Year.
Action: Banks / TAHDCO
AGENDA No: 18
REVIEW OF NPA ACCOUNTS IN PRIORITY SECTOR LENDING –
DECEMBER 2010
The forum noted that NPA under Educational Loans is substantial.
The forum advised Banks to focus on reducing NPA by strengthening appraisal and
recovery procedures.
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Action: Banks / Nodal Agencies / LDMs
AGENDA No: 19
Success Story
Shri S.N. Misra, GM, IOB appealed to Banks to advise success stories to SLBC.
SLBC plans to publish the same as a separate booklet if more number of success
stories are received.
The meeting came to a conclusion with the vote of thanks proposed by Shri S.N.
Misra, GM, IOB & Convenor, SLBC, Tamil Nadu.