STATE LEVEL BANKERS’ COMMITTEE, TAMILNADU
CONVENOR: INDIAN OVERSEAS BANK
STATE LEVEL REVIEW MEETING – 2009: GROUP DISCUSSION
GROUP I – AGRICULTURE & ALLIED ACTIVITIES
Leader:
Shri. V M Venkatachalam
Senior Manager
Indian Bank
Head Office
Chennai
Rapporteur:
Shri. S. Siddarthan
Senior Manager
Lead Bank Department
Indian Overseas Bank
Central Office, Chennai
I.
2% Interest subvention scheme for short-term crop loans in
2009-10
Issue
a. As per communication dated 8.10.2009 of Dept of Financial Services
Ministry of Finance, GOI, interest subvention is available to farmers
from the date of disbursement till the date of repayment subject to a
maximum period of one year. But the guidelines advised by RBI vide
their circular RBI/2009-10/186/RPCD.No.PLFS.BC.33/05.04.02/2009-10
dated 22.10.2009 restrict the subvention period to March 31st 2010 for
loans disbursed during for Kharif season and June 30th 2010 for loans
disbursed duringfor Rabi season.
Suggestions & Consensus arrived:
Benefit of Interest subvention be given to all farmers from the date of
availment of loan till the regular repayment period or a maximum of one year
whichever is less. Restricting interest subvention to seasonality which is not
uniform throughout the country leads to
 All farmers should be given Interest subvention for maximum period of
one year or till repayment whichever is less, from the date of availment
of loan. There should not be any cap on the time restricting the
subvention period, as it leads to
 Cumbersome procedure of crediting interest subvention relating to
varying periods to thousands of farmers and
 Denying full benefit of interest subvention during crop/repayment
period to the farmers.
b. Short Term Crop Loans disbursed by Private Banks: (Referred by
Tamilnad Mercantile Bank Ltd.TMB)
Issue :
Farmers who avail short term crop loans from Private Sector Banks are
deprived of interest subvention benefit. Hence, farmers do not prefer
private sector Bank for availment of crop loan.
Consensus :
AsInterest subvention to farmers is available only when they avail short
term crop loans from Public Sector Banks / Regional Rural Banks /
Cooperative Banks. Farmers who avail short term crop loans from Private
Sector Banks are not being extended interest subvention benefit. Hence
many farmers are switching over to Public Sector Banks operating in their
area. Private Sector Banks are also haverequired to achieve the various
norms under priority lending,18% and 10% norm in respect of agricultural
advances and advances to weaker sections. Lack of interest subvention for
short term crop loans disbursed by Private Banks make the task of attaining
the national norm of 18% and 10% very difficult due to loss of such business
to nearby PSBs/RRBs/Coop Banks. Hence interest subvention has to be
made available for short term crop loans disbursed by Private Sector Banks
also.
The forum is requested to deliberate and offer its views.
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Suggestions & Consensus arrived:
 The forum suggested that interest subvention has to be made available in
respect of STPLs availed by farmers from Private Sector Banks also
II.
1% additional interest subvention scheme (Referred by IOB)
Issue :
Additional 1% interest subvention is eligible for farmers who repay within
one year of disbursement. Loans given to farmers during March 2010 and
repaying the same before March 2011 are eligible for 1% interest
subvention. Banks can make this claim only after March 2011 subject to
repayment by borrower within one year. However as per RBI Circular, Banks
have to claim before 31.7.2010, that too, as one-time claim. This anomaly
may be clarified.
As per RBI communication dated 22.10.2009, it is stated that Banks have to
credit the additional 1% subvention to the farmers account only after their
prompt repaymentThe forum may deliberate and seek reimbursement from
RBI, by submitting ONE TIME consolidated claim for the entire year (200910) latest by
July 31, 2010offer its views / suggestions.
For crop loan disbursed during Rabi 2009-10, the repayment date extends
beyond July 2010. Whether additional interest subvention of 1% will be
available for such loans repayable after July 2010.
Suggestions & Consensusarrived:
 RBI is to clarify the Banks regarding 1% additional interest subvention
scheme. Suggestion is time cap to be removed as enumerated above.
III.
Forced sale of fertilizers in Cuddalore District (Referred by (.
IV.
NABARD)
3
Issue:
, Chennai has drawn the attention to the complaint of Welington Reservoir
Irrigation Farmers Association that Murugangudi and Pennadam Branches of
Canara Bank in Tittagudi Taluk in Cuddalore District have been compelling
the sugarcane farmers of Ambiga Sugar Mills for lifting fertilizers as kind
component under cop loan from Mustang Trading & Investment Coy (MTC)
which is a sister concern of Ambiga Sugar Mills.
Pointing out that they have removed the restriction on compulsory issue of
the kind component to the farmers, NABARD, Chennai have advised for a)
extending the freedom of cash disbursement, and b) to ensure phased
purchase of fertilizers in consonance with the spirit of KCC endeavour.
Suggestions & Consensusarrived:
 Representatives of Canara Bank clarified that now their Bank is not
compelling the farmers for lifting fertilizers from MTC. Noting the same
the forum reiterated that NABARD’s instructions in this regard have to
be complied with strictly by all the banks.
IV. Flow of Credit – Submission of weekly MIS (Referred by
Commissioner of Agriculture, Govt.of Comm. Of Agri, GOTN)
The details of disbursement of credit through Co-operative Banks are
available on weekly basis. But, the same details through Commercial Banks
are made available only in the Agenda papers of DCC / SLBC meeting being
convened once in a quarter. This type of belated information on credit flow
is of little use to Agriculture Dept., Government Tamil Nadu)
V.
Issue:
. Hence, the Agricultural Production Commissioner and Secretary to
Government during the 119th SLBC meeting held on 25.9.2009 has
emphasized that the details of progress made in the credit disbursement
should be provided to Lead District Managers on weekly basis.
In this
regard, the SLBC has already advised Member Banks for providing credit
flow information to district level JDAs.
4
Suggestions & Consensusarrived:
As
 LDMs informed that submitting weekly reportingprogress report is very
difficult, the. The forum suggested monthly reporting of crop loan data.,
instead of weekly reporting by LDMs
 The forum also suggested that Department of Agriculture may d design a
simplified format
 The forum advised Controlling offices of Banks to instruct their
Branches to submit monthly data to LDM for providing consolidated
report to the District Administration / Government.
VI.
Kisan Credit Card (KCC) (Referred by Commissioner of Agriculture,
Govt.of Tamil NaduComm. Of Agri, GOTN)
Issue:
While the details of KCCs issued during the quarter is made available in the
SLBC agenda, the cumulative data on Kisan Credit Cards issued since
inception is not readily available.
Further in the 119th SLBC meeting, the Agricultural Production Commissioner
and Secretary to Government has requested the banks to issue KCC on
Mission Mode citing the reason that KCC will also serve as an identity card
for availing subsidy in future as per the reference made by the Hon’ble
Prime Minister of India that the “subsidy should go directly to the farmers”.
Suggestions & Consensusarrived:
 The forum requested to provide cumulative data on KCCs issued in the
SLBC Agenda.
 The forum noted that SLBC has already advised Banks to cover all eligible
and willing farmers under KCC on mission mode and reiterated that the
same should be accomplished without any further loss of time. The
forum also advised Banks to furnish the details of KCCs issued to both
LDMs and SLBC.
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VII.
VIII.
National Agricultural Insurance Scheme (NAIS) (Referred by
CommissionerComm. Of Agri, GOTN)
It is observed that the number of Agriculture, Govt.of Tamil Nadu)
Issue :
Coverage of Non loanee farmers covered under NAIS has increased from
898 (109416 in 2000-01) to 988148 ( to 289349 in 2008-09) whereas; the
coveragenumber of loanee farmers increased from 109416 to 289349 which
is not commensurate with non loanee farmers. Consequently, subsidy
utilization is poor.covered during the same period has increased from 898 to
988148. Hence, the sanctioned subsidy on premium under the NAIS scheme
could not be utilized in full besides depriving the farmers from availing loss
compensation. In this context, the following issues need consideration.
•
For jewel loans, the insurance premium is not deducted.
•
Even under crop loan, the insurance premium is not collected
•
The Government policy to motivate and involve more farmers under
insurance scheme is not able to be implemented to the extent envisaged
with the result premium subsidy remains unutilized.
•
State Government and Central Government are paying 2.5% as service
charge to Banks for the implementation of NAIS on 50:50 basis. Hence,
banks may consider opening a separate cell in their branches exclusively
to deal with NAIS for collection of premium from loanee farmers and
timely remittance of the premium to Agricultural Insurance Company.
Suggestions & Consensusarrived:
 All crop loans for notified crops in notified areas including crop loans
against jewels should be compulsorily covered under NAIS.
 The forum suggested for rationalization of the premium and suggested to
subsidize 100% of premium to at least MF/SF.
 Separate cell at controlling offices should be formed to look after NAIS
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 The forum advised Officials of AIC to attend DCC meetings, wherein
progress made under NAIS should be reviewed on a regular basis.
 AIC should intensify Awareness Camps/Mass media publicity through
TV/AIR.
 AIC to approach Director of Public Relations, Information and
Broadcasting Department for making film script on NAIS
VII. Weather Based Crop Insurance Scheme (WBCIS)
Issue:
Weather Based Crop Insurance Scheme (WBCIS) will be implemented in
select Districts of Tamilnadu viz. Dharmapuri, Salem, Ariyalur,
Perambalur,Virudhunagar,Coimbatore, Villupuram and Dindigul Districts
on a pilot basis. The salient aspects of WBCIS are furnished below.

WBCIS will be implemented on pilot basis in select districts of Tamilnadu
as per the guidelines of Govt. of India.

Three insurance companies viz., Agricultural Insurance Company of India
Ltd, M/s IFFCO-TOKIO General Insurance Company Ltd and M/s ICICI
Lombard General Insurance Company Ltd are involved in the Pilot Project.

Under WBCIS in the select districts loanee farmers should be
compulsorily covered and non-loanee farmers will be covered on voluntary
basis.
The forum is requested to deliberate and offer its views.
Suggestions & Consensusarrived:
 One day sensitization programme is to be organized by AIC and other
implementing insurance companies for Bankers on the subject.
 Awareness Camps to be organized for farmers at district/Block levels.
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VIII.
National Agriculture Insurance Scheme (NAIS) – (Referred by
(SBI)
–
Issue:
Farmers feel the premium is very high with regard to sugarcane and banana
crops under NAIS. For sugarcane, individual mills have tie-up with one of the
General Insurance Companies. Accordingly, branches debit insurance
premium and send the amount to the Company. In such cases lands of
individual farmers are taken into account for claim settlement whereas
under NAIS, Firka level damage is taken into account. Farmers prefer
individual level settlement. Under National Agricultural Insurance Scheme,
for finance made through Sugar Cane Tie Up Scheme, settlements are not
made in proportion to the loss or outstanding but only minimum amounts.
In case of Banana also due to high rate of premium, the farmers are
reluctant to join the NAIS scheme. The above issues need to be addressed.
Suggestions & Consensusarrived:
 AIC to clarify whether second Insurance can be taken under NAIS, for
sugarcane farmers, who have already insured the crop with some other
Insurance Company, under tie up with sugar mills, and in case of crop
failure whether both the agencies will be settling the claim amount.
IX.
SGSY (Referred by SBI)
Issue:
Under Economic Activities (SGSY-EA), the
provide both forward and backward linkages
development, procurement of raw materials
marketing etc which are not adequately done at
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Govt. Departments should
such as training and skill
at reasonable prices and
present. NGOs are also not
taking much interest in this area. This has led to failure and render the units
with low key activities unviable.
Suggestions & Consensusarrived:
 The forum suggested that Government may facilitate supply of raw
materials to and assist in marketing of products by SHGs at reasonable
prices, earmarking certain amount of Government departments may
purchasepurchases from SHGs, marketing infrastructure near activity
clusters, branding etc.
X. ANIMAL HUSBANDRY
The forum after deliberations also recommended the following in respect of
animal husbandry sector.
 The forum requested Department of Animal Husbandry to ensure
participation of their officials in the District Level meetings.
 The forum also suggested that
Department of AH may act in
coordination with RSETI’s if any on Training modules for AH activities
for the benefit of farmers
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STATE LEVEL REVIEW MEETING – 2009: GROUP DISCUSSION
GROUP –II: INDUSTRIES & SERVICES
_________________________________________________________
Leader:
Rapporteur:
Shri. Rajendran
Shri. T.R. Santhanam
Chief Manager
Senior Manager
Canara Bank
Lead Bank Department
Circle Office
Indian Overseas Bank
Chennai
Central Office, Chennai
I.
Prime Minister’s Employment Generation Programme (PMEGP)
Secretary, MSME Department is conducting review of progress made under
the scheme during the current year. The following points have emerged
form the review meetings.
Issues:
 The progress made in sanction / disposal of loan applications is poor.
 Delay in disbursement of sanctioned loans.
 Delay in claiming subsidy, which needs to be claimed immediately after
the first disbursement.
 Delay in submission / non submission of MIS.
Consensus:
 The forum noted that there is no specific target fixed to Bank Branches
under PMEGP. Controlling offices of banks should review the progress
made by their branches under PMEGP Scheme and ensure expeditious
disposal of loan applications received under PMEGP.
 Loan applications should be forwarded to Bank Branches under Regd Post
Ack Due. Copy of Loan applications / List of loan applications sent to
Branches has to be forwarded to Controlling Offices of Banks to enable
them to monitor the progress made by their branches.
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 Review should be done in the BLBC Meetings also the by BLBC Convenor /
LDM with representatives of nodal agencies.
 Noting that in some banks, branches are not empowered to sanction loans
and loan processing is done by their Central Processing Units, the forum
suggested that branches should be empowered to sanction loans under
the scheme within branch powers to avoid delay.
 Forum called for better co-ordination between DIC, KVIB, KVIC at
district level.
 Loan Applications should be sponsored in reasonable proportion to the
district target and sponsoring of a large number of loan applications has
to be avoided.
 All eligible loans under PMEGP to be covered under CGTMSE. The data
required for covering loans under CGTMSE should be made available in
common application form.
 Identified beneficiaries must be imparted mandatory training without
delay.
 There should be a follow up/review for disbursement of the sanctioned
loans also.
 Bank branches after sanction should claim subsidy immediately.
 Nodal Agencies were requested to send claim forms to branches for
claiming subsidy (as is being done by DIC, Tiruvallore) along with loan
application.
 In some banks, processing/subsidy claim is done by nodal offices,
resulting in delay in preferring claim, which needs to be rectified.
 Awareness programmes should be conducted by KVIC at state level.
 Sensitization programmes at districts for officials of both banks and
nodal agencies must be conducted.
 Controlling Offices of Banks must ensure prompt and error free report
on performance by their Branches.
II.
Financing of Common Facility Centres (CFC) in recognized clusters
Cluster based financing is now under focus due to importance of clusters in
industrial production and economic growth. Clusters can be strengthened and
made more viable by creation of CFCs for the benefit of all units operating
in the clusters. Central and State Governments are granting subsidy for
establishment of CFCs, under cluster development programmes. Few
11
examples are Safety Match Clusters in Virudunagar Dist and Brick Clusters
in Tirunelveli Dist.
Issues:
Banks can play crucial role in setting up of CFCs by financing the CFCs to
bridge the gap between the grant amount and project cost.
Consensus:
 Addl Director of Industries & Commerce, Govt. of Tamil Nadu explained
that upto 80% grant is available for procuring machineries for CFCs
which are set up by forming Special Purpose Vehicles. He added that
Banks may finance towards promoter’s equity, civil works etc., besides
financing clusters. The forum requested the Director of Industries to
provide the details regarding clusters under Common Facility centers
(CFC) and the finance requirements including detailed project reports, so
that bankers can take positive view on financing CFCs
III. Credit flow to Non Farm Sector
Issue:
Credit flow to Handloom/power loom, Tiny Sector, Village industries and
Rural Artisans under ACP hover around 20 to 50% of the allocation. The
forum may discuss and suggest ways for increasing credit flow to Micro &
Small Enterprises in general and the above sectors in particular.
Consensus:
 Branch Managers to be sensitized regarding credit to rural non-farm
sector so that pressure on agriculture is reduced in rural areas.
 Specialized micro finance branches can be opened.
 Dept of Industries & Commerce may consider promoting Activity based
groups/JLGs on the lines done by Agricultural Department in respect of
farmers.
 DIC to promote tiny sector estates and facilities for tiny sector sheds
should be made available by SIPCOT.
12
 Interest subvention given to agriculture sector may be considered to
non-farm tiny sector also.
 Need based restructuring of loans on an ongoing basis should be made
available.
 Liberal working capital assessment to the sector should be made
available.
 Business facilitator/business correspondents system to be implemented
by all banks.
 Banks to focus on financing Agro processing sector.
 The pending loan applications of handloom weavers group should be
disposed off immediately.
IV.
Classification of Retail Trade under MSME sector:
Recently RBI has advised banks vide circular dated 18.09.2009 to classify
Retail Trade under services part of Micro and Small Enterprises based on
investment norms (para 2). Point No.3 of the circular states that retail
traders with credit limits not exceeding Rs.20 lac would hence forth be part
of the Small (Service) Enterprises.
Issue:
Inclusion of credit to private retail traders with credit limit of more than Rs
20 Lacs under priority sector (MSEs) subject to investment norms as per
MSMED Act 2006 needs to be clarified. Panel may discuss this aspect.
Consensus:
The forum after deliberations advised that retail trade has to be classified
under MSME on the basis of investment norms as per para 2 of RBI Circular
dated 18.09.2009 unless any instructions to the contrary are received from
RBI.
V.
Recovery of PMRY Loans by Special Deputy Tahsildhars
Issue:
Special Deputy Tahsildhars were deputed for recovery of PMRY Loans. As
PMRY Scheme has since been abolished, the forum may discuss and offer its
views on utilizing their services for recovery of loans under other
13
Government Sponsored Schemes in addition to existing PMRY loans with
concurrence of State Government. (LDM, Pudukottai)
Consensus:
 The forum suggested that Special Tahsildhars deputed for recovery of
loans under PMRY may be utilized for recovery of loans under other
Government sponsored schemes as well.
 The forum advised that bank branches should coordinate with the special
tahsildhars for improving their recovery performance.
 The forum also requested the Government of Tamil Nadu to post Special
Tahsildhars for all the 32 districts of the state.
VI.
Release of subsidy under PMRY
PMRY Scheme has been abolished with effect from the programme year
2008-09.
Issue:
Subsidy is yet to be received for the years 2006-07 and 2007-08.
Consensus:
The forum noted that the subsidy claims of Banks under PMRY are under
process at RBI, Mumbai and subsidy will be released to banks shortly.
14
STATE LEVEL BANKERS’ COMMITTEE, TAMILNADU
CONVENOR: INDIAN OVERSEAS BANK
STATE LEVEL REVIEW MEETING – 2009: GROUP DISCUSSION
GROUP –III: LEAD BANK SCHEME AND OTHER MATTERS
Leader:
Sri Rajmohan
Chief Manager
State Bank of India
Local Head Office
Chennai
Rapporteur:
Shri. N. Sampath
Senior Manager
Lead Bank Department
Indian Overseas Bank
Central Office, Chennai
A. Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)
(Referred by TNHB)
The salient features of the above Scheme were discussed in 118th SLBC
Meeting held on 26.06.2009.
Issues:
1. Loan Application Format
2. List of Documents to be furnished by the beneficiaries for construction
of new house / purchase of ready built house. – Viz. approved plan,
evidence of ownership etc.
3. Rate of Interest
4. Disbursement Stages
5. Subsidy administration – mode of drawing subsidy
6. Sponsoring Agency
7. Target
Consensus:
a. Loan Application Format:
15
The forum after deliberation designed an application format (furnished in
the annexure) and advised that the format may be adopted by all the Banks
in bi-lingual form.
b. List of Documents to be furnished by the beneficiaries for construction
of new house/purchase of ready built house/Allotment by TNHB:
i.
Authenticated copy of Family Ration Card/Voter ID Card
ii.
Copy of Patta/Title Deeds/Approved Plan with estimate
iii.
Copy of Income Certificate issued by competent authority (to
ascertain the eligible loan amount ie.,EWS or LIG)
EWS : Economically weaker section (Family income not above
Rs.3300/- per month)
LIG : Low Income Group (Family income between R.3301 –
Rs.7300/- per month)
Except the legal opinion all the documents are to be annexed to the
application and routed through the Sponsoring Agency. [ Subsequently in a
meeting held in TNHB, Banker concurred that any photo ID approved by RBI
for KYC can also be taken in lieu of Ration Card or Voter ID Card].
c. Rate of Interest:
Individual Banks will decide ; but forum suggested 9%.
d. Disbursement of loan in stages as may
Banks/Branches.
e. Subsidy Administration :
16
be decided by the respective
The Scheme is Interest Subsidy scheme – Front ended. Respective banks to
enter into MOU with NHB/HUDCO (Nodal Agency) .
f. Sponsoring Agency:
Tamil Nadu Housing Board (TNHB) will be the sole agency for sponsoring the
applications.
g. Target:
The forum noted that Ministry of Finance, Government of India have already
advised that the coverage under ISHUP could be decided at a decentralized
level at the Municipality / district / State level by involving Urban local
bodies and State Government. Hence the targets have to be fixed based on
the number of beneficiaries in the identified clusters of EWS / LIGs.
Hence the forum concluded that TNHB would inform district-wise target to
the respective LDMs, to enable them to allocate among Banks and also to
inform to SLBC for consolidation .
The forum also advised that the performance against such allocation /
target should be monitored and reviewed regularly in DCC Meetings
B. Educational Loans (Referred by LDM, Pudukottai, Indian Bank, Bank
of India)
Issues:
(i) Service Area concept may be introduced for Education Loans so that
Banks can on the one hand respond to education loans positively and on the
other hand multiple finance can be avoided. (LDM, Pudukottai)
As per IBA guidelines “If the parents / guardians of the student are located
in the same district of the branch in which the application is received, there
17
is no need for the same to be sent to another bank on grounds of Service
Area other than bank being closer to residence of applicant.” (Indian Bank)
(ii) Eligibility: Sanction of education loans to all students who got admission
through a merit based selection process, including admissions under
Management Quota. Some Banks have stipulated a condition that the parent
of the student who got admission under Management quota should be an
income tax assessee. (Indian Bank)
(iii) Fee Structure: Mr. Justice Balasubramanian Committee was constituted
for fixing the fee structure for various courses in Self Financing Colleges.
The committee has submitted its report which is yet to be communicated by
Government Order. Communication of the fee structure will enable banks in
arriving at the quantum of the loan.
(iv) Private Banks like ICICI / HDFC Banks are not granting loans stating
that their Banks have separate eligibility criteria. (LDM, Karur)
Consensus:
(i) Service Area: Adoption of Service Area concept for educational loans is
preferred in the interest of the student community for timely availment of
loan and for equitable distribution of loans among the banks. Ultimate
implementing decision should be taken at district level depending on local
situation.
(ii) Eligibility:
Banks should follow eligibility criteria as per IBA
guidelines without adding any extraneous conditions by the banks.
(iii) Fee Structure:
The forum requested Government of Tamil Nadu
to release Justice Balasubramanian Committee report on Fee structure
which will enable banks to arrive at the quantum of loan.
(iv) Private Sector Banks should also involve themselves in providing
education loans as per IBA guidelines.
C. Roadmap for Financial Inclusion:
18
Issue:
High Power Committee of RBI has recommended that a Sub-Committee of
the District Consultative Committee (DCC) should draw up a road map to
provide services through a banking outlet at every village with a population
of over 2000 at least once a week on a regular basis. By March 2010, the
Sub-Committee should come out with a time frame within which this can be
achieved and the time frame to cover all eligible villages should not be later
than March 2011.
Consensus:
 Forum suggested that Banks have to adopt BC (Business
Correspondent) /BF (Business Facilitator) route to expedite the goal of
providing banking services to villages having population of more than 2000
by March 2011.
 Forum also advised that DCCs have to form Sub Committee immediately,
enumerate villages with population of 2000 which are not having banking
facilities, allocate such villages to bank branches and draw up a schedule
for various stages to be completed.
D. Direct transfer of Social Security Pension into bank accounts of
beneficiaries. (Referred by RBI, Chennai)
Issue: During the meeting of the Group set up to examine the feasibility of
direct transfer of social security pension to the beneficiaries’ accounts, it
was pointed out that there were delays in transferring funds by the Nodal
Bank to the disbursing branches of banks and this has resulted in delayed
payments to the beneficiaries. It was suggested that a system should be
put in place to ensure that the accounts of the beneficiaries are credited on
scheduled date so that the beneficiary is free to withdraw the amount on
any day.
Consensus:
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 Banks have to evolve a system and ensure that the beneficiaries’ accounts
are credited on scheduled date and the RBI direction in this regard
should be complied with in letter and spirit.
E. Special Package Housing - Insurance Coverage for borrowers
As per the guidelines issued by IBA, Free Life Insurance Cover for the
entire amount of outstanding loan has to be provided to the borrower by
the bank.
Issue:
In the case housing loans availed jointly by more than one borrower,
whether
a)
all the joint borrowers are to be insured or
b)
each borrower has to be insured for pro rata loan amount or
c)
each borrower is to be insured for the entire loan amount.
Consensus:
 Forum suggested that all borrowers may be covered on pro rata basis
under insurance so that Total insurance in case of joint accounts is equal
to the Loan amount.
F. Participation of Private Sector Banks under Lead Bank Scheme &
Government Sponsored Schemes. (Referred by LDM, Ooty)
High Power Committee has recommended that Private sector banks should
involve themselves more actively by bringing in their expertise in strategic
planning and leveraging on information technology.
Issue: (i)
Participation in DCC/DLRC/SC Meetings in the District is at a
low level.
(ii)
Implementation of Government sponsored Schemes by Private Sector
Banks is minimal.
Consensus:
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 Forum advised Private Sector Banks to take note of the recommendation
of the High Power Committee and involve themselves actively in the
implementation of Lead Bank Scheme, besides actively participating in
various Lead Bank Meetings at appropriate level.
G. Allocation of areas / villages / wards ( Referred by SBI)
Issue:
a)
Arbitrary allocation of villages / Wards to the existing as well as
new branches without placing at the BLBC meetings / Dt Level
meetings.
b)
Villages with high NPA, which are far away are allotted to SBI
even though other Bank branches are functioning nearby.
The above has resulted in difficulty for SBI branches to dispose letters or
applications in respect of Educational Loans and Grievance Day petitions
received by LBO.
Consensus:
The forum reiterated that allocation of villages/wards to respective bank
branches to be discussed at the BLBC Meetings and approved by DCC
concerned.
J. Indira Awas Yojana – (Referred by SBI)
Issue: Persons who have not started construction are approaching the
Branches for loans.
Consensus:
 Loans under the IAY scheme are TOPUP loans meant for completion of
construction. The loan component has to be disbursed to the beneficiary
on utilization of eligible subsidy and margin.
K. NREGS – (Referred by SBI)
21
Issue: Though large number of no-frill a/cs are opened, payment of wages
are not routed through the accounts.
Consensus:
 Forum Requested the State Govt. to consider routing
payment through banks.
the NREGS
L. Recovery of loans given under Govt. Sponsored Programmes - (Referred
by SBI)
Issue: District Administration should have machinery to help the banks to
recover loans.
Consensus:
 The forum requested State Government to strengthen the Recovery
Mechanism by positing Special Deputy Tashildars to all Districts
exclusively for recovery of loans granted under various Govt. Sponsored
Schemes.
M. SHGs - (Referred by SBI)
Issue: New NGOs are poaching into the existing group members of SHGs
organized by other NGOs by luring them with high amount of loans. Hence,
there are chances of multiple borrowings which may ultimately result in over
dues and non recovery of loans due from SHGs.
Consensus:
 Details regarding poaching of SHGs by certain NGOs may be placed
before DCC with a request to the District Administration to take
suitable action.
 A central Registry for SHGs is also required to be maintained. ID cards
for SHGs may be issued.
22
N. Loans to groups having mentally challenged people as members under
Vazhndhu Kattuvom Project.
(Referred by LDM, Cuddalore)
Under the above scheme mentally challenged people are also enrolled as
members of SHGs. Banks open SB accounts in the names of such SHGs.
Issue: Now Project Authorities are requesting to credit link SHGs with
mentally challenged people.
Consensus:
 Loans to SHGs with mentally challenged people as members can be
granted against documents executed by the guardian of the mentally
challenged people appointed by the Court or under National Trust for
the Welfare of persons with autism, cerebral palsy, mental retardation
and multiple Disabilities Act.
O. Submission of MIS / Lead Bank Returns
Issue: LDMs continue to face delay in Submission / non submission of MIS /
Lead Bank Returns by banks.
Consensus:
 Forum suggested that Controlling Offices of Banks to take the
responsibility of generating the returns in the System and provide the
same for compilation by LDM. Rationalizations of Lead Bank Returns is
also suggested.
P. Issue: Notified Centres for creation of Equitable Mortgage:
Consensus:
The forum requested State Government to notify all centres with bank
branches in the State for the purpose of creation of equitable mortgage.
23
NAME OF THE BANK
……………………………… Branch
Application for loan under Interest Subsidy Scheme for Housing the Urban Poor
(ISHUP)
Loan No.
Photo
I hereby apply for a loan of Rs……………(Rupees……………………………………….. ,
…..…………………………………………..) repayable in …….. monthly instalments for
the purpose of construction/acquisition of house/flat under the ISHUP scheme.
I/we confirm having understood the terms and conditions for the above scheme and
agree to abide by the same.
1. Name of the Applicant(s) :
2. Sex
:
Male / Female
3. Father’s / Husband’s Name:
4. A) Present Residential Address: **
B) Permanent Residential Address
**How long residing in the above address :
5. Phone / Cell Number
:
6. Voter’s ID No.
:
Ration Card No.:
7. Age
:
Date of birth
8. Marital status
:
: Married / Unmarried
9. Whether belongs to SC / ST / BC / MBC / Minority / Phy. Handicapped
(strike out the non relevant categories )
-2 10. Applicant family details: (Family Ration card copy should be enclosed)
Name
Age M/F
Relationship
Educational
Business
Monthly
S.No.
qualification
activity
Income
24
Annual
Income
11. Family’s total annual Income:
12. Whether having accounts with Bank
If yes: Name of the Bank:
Branch:
: Yes / No
A/c. Number:
13. Whether owns any house in his/her or dependent’s name: Yes / No
14. Whether owns any plot in his/her or dependent’s name
: Yes / No
If yes, furnish the Location & Address details:
15. Details of property proposed to be purchased/constructed:
 Location and address:
Survey No.:
Plot No./Door No.:
Street:
Town/City:
Taluk:
Total area of the plot:
Built in area of the house/plot:
Plinth area in the case of the flat:
District:
Market Value:
 Whether plan for construction has been approved / sanctioned by appropriate
authority
: Yes
/
No
(copy of approved plan to be enclosed)
 Whether plot/property is free of encumbrance : Yes
/
No
(Legal opinion on the property is to be obtained before sanction of loan from Bank’s
Approved Lawyer)
 If the construction / acquisition is made through a Co-operative
Society/Association whether the bye-laws of the Society/Association are submitted
: Yes
/
No
 Age of the house (for purchase of already built house/flat):
16. Details of third party guarantee (If the loan amount exceeds Rs. one lakh)
Name & Address:
Occupation
:
25
Worth
: Rs.
17.How the cost is going to be met
 Total cost of construction
: Rs.
(Estimate/valuation report from the Bank approved Engineer is to be submitted for
construction/ acquisition)
 Margin money
1.
: Rs.
 Loan Amount required
: Rs.
 Repayment period required
: 180 months / 240 months
I agree to offer the proposed Dwelling Unit as prime security for the loan.
2. I will take care the assets created out of the bank loan & promise you to repay the
loan installment promptly.
3. I/We hereby declare that the particulars given above are true and correct to the best
of my / our knowledge and belief.
4. I hereby authorize the Bank to claim the eligible Interest Subsidy and credit the same
to my loan account.
5. It will be in order for the bank to disqualify me / us from receiving any credit facilities
from the bank in case it is proved that any of my / our declarations turns out to be
false / i
Place:
Date:
Signature
Applicant(s)
Encl: Copies of
1. Family Ration card
2. Copy of Voter’s ID card
3. Copy of Patta / Title Deed / Approved Plan
4. Copy of Income Certificate issued by Competent Authority
PART -B
REVIEW NOTE: 1
SLRM 2009
Report on the follow up action on the decision of SLRM 2008 held on
24.12.2008
GROUP III –
26
Waiver of Stamp duty for the documents of SHG:
Waiver of Stamp duty for SHG documents may be recommended to the
State Govt. by the SLBC.
Tamil Nadu Corporation for Development of Women Ltd have advised that
Government of Tamil Nadu have issued GO No.158 dated 05.11.2009
exempting the following instruments / documents executed by SHGs /
Panchayat Level Federations (PLFs) promoted by Rural Development &
Panchayat Raj Department from duty chargeable under Indian Stamp Act,
1899.




Instruments of Agreement for Finance
Inter se Agreement among members
Deed of Hypothecation
Deed of Mortgage executed by SHGs
Copy of the GO No.158 dated 05.11.2009 has been circulated to Member
Banks vide SLBC letter dated 10.12.2009.
Member Banks are requested to take note of the remission of stamp duty.
27
REVIEW NOTE: 2
SLRM:2009
Special Agenda: 1
Panchayat Level Federations (PLF) – Grading of PLFs & PLF Credit
Guidelines.
A)
MD, TNCDW Ltd has advised that Government of Tamil Nadu vide
their GO dated 21.07.2008 ordered for restructuring of the PLFs with the
objective of making them more inclusive, transparent, participatory and to
improve their governance and sustainability.
Government of Tamil Nadu vide GO MS No.465 RD & PR (CGS 3) dated
23.07.2009 and letter dated 12.08.2009 have issued the parameters for
grading the PLF. Accordingly,
 The grading will be done in a 100 point scale consisting of 7 parameters.
 On completion of 6 months from restructuring, the PLF becomes eligible
for grading.
 PLF Grading will be an independent exercise carried out by a team
consists of two community professionals, one representative from bank
and one Assistant Project Officer, Mahlir Thittam / Assistant Project
Manager or Team leader, VKP as the Convenor.
The above GOs are furnished in the annexure. Member Banks are requested
to take note of the same.
B) MD, TNCDW has also forwarded the draft credit guidelines based on the
workshop held on 05.12.2009 – furnished in the annexure.
The forum may deliberate and accord its approval.
28
29
30
31
32
33
34
35
Draft PLF Credit Guidelines
1. Mahalir Thittam:
The SHG movement, which was started in 1989 in a small way, has
emerged as a powerful and vibrant movement spread over the length and
breadth of the state. As on 30.11.2009 there are 4,15,573 SHGs under Mahalir
Thittam. Mahalir Thittam”, is implemented in partnership with Non-Governmental
Organisations (NGOs) and Banks.
A SHG is a small homogeneous group of poor women consisting of 12 to
20 members voluntarily formed to promote savings and mutually agreeing to
contribute a common fund to be lent to its members as per the group’s decision.
The members have to be in the age group of 18-60 years.
The great merit of the SHG is its ability to inculcate among its members
sound habits of thrift, savings and banking. SHGs have been recognised as
useful vehicles to help the poor in accessing financial resources not available to
them previously and help them break away from the grip of exploitative
moneylenders. One of the primary reasons for the success of the SHGs has
been their excellent track record of repayment of loans. The SHGs in existence
for 6 months become eligible for credit rating. Those SHGs, which have passed
credit rating successfully, become eligible for credit linkage.
1.1 World Bank-Aided
Reduction Project
Tamilnadu
Empowerment
and
Poverty
While Mahalir Thittam and other initiatives have been successful in
mobilizing and forming SHGs of the poor, more efforts are required to
•
Reach the poorest of the poor and vulnerable groups
•
Strengthen existing SHGs to enhance their skills, capacities and
resources to make them self-sufficient and self-reliant.
36
•
Provide financial resources and linkages required for generating
significant increase in income of SHG members and thereby enhance
their livelihoods.
•
Promote greater interaction and stronger linkages among the SHGs
and Gram Panchayats.
With these objectives in mind and building on the strong foundation
already laid by Mahalir Thittam, Tamil Nadu Empowerment and Poverty
Reduction Project is being implemented with the World Bank assistance.
This Project is a community driven development based project with shift in
focus to livelihood promotion and economic empowerment. The project is
implemented in 2517 village Panchayat in 70 backward blocks spread over 15
districts.
1.2 Panchayat Level Federations:
The vision of the Mahalir Thittam is to reach out and empower women
below poverty line through self reliant and sustainable grass root people’s
organisations. The success achieved in the project has prompted the State
Government to further strengthen the movement and make it sustainable by
forming federations of SHGs at Village Panchayat level
PLF is a registered society of all functioning SHGs in a village Panchayat,
promoted and managed for and by the member SHGs, for the attainment of their
common goals of economic and social empowerment.
The Panchayat Level Federation provides a common platform for the
SHGs to share their experiences and to voice their problems. The PLF can help
achieve what individual SHGs cannot, by pooling in their talents and resources
and exploiting economies of scale both in production and marketing. They can
also guide and monitor the functioning of SHGs in a Village Panchayat and also
form and train new SHGs.
Strengthening PLFs is the key to achieving
sustainability of the SHG movement in the long run
37
1.2.1 Membership in PLF:
SHGs in the village Panchayat which are 6 months old and have passed
the first credit rating are eligible to become members of PLF. All types of SHGs
that are functioning as per norms (except youth SHGs) in a Village Panchayat
irrespective of their promoters can become members of PLF.
1.2.2 Role of PLF:
•
To empower the rural women, disabled and vulnerable.
•
To train and build the capacities of SHGs.
•
To monitor functioning of SHGs, facilitating credit linkages within
Banks and repayment of loan, facilitating micro finance planning,
grading, auditing of SHGs.
•
To resolve conflict among SHGs or its members. To certify the claims
made by NGOs for SHG formation, training and monitoring
•
To provide other services including financial services to member SHGs
like micro insurance etc.
•
To borrow funds from national and international agencies and lend to
member SHGs and repay the loan promptly. To take up all activities
that would benefit the SHGs and their members without affecting the
livelihood options of individual SHGs.
•
To purchase, construct and maintain infrastructure facilities which
would be required for fulfilling the aims and objects of the Society. To
receive and manage common infrastructure facilities for the benefit of
SHGs.
1.2.3 Institutional structure for the PLF:
The federation of the SHGs will be at two levels i.e at habitational level
and at Panchayat Level. ach habitation with atleast 5 SHGs will constitute a
Habitation Level Forum (HLF) with representation from every credit rated SHG.
38
Each Village Panchayat with atleast 10 SHGs will have a Panchayat Level
Federation. In case the number of SHGs in the Village Panchayat is less than 10
there will be no PLF and the SHGs may join the nearest PLF of their choice.
The PLF will have an Executive Committee and a General Body. All the
members of federated SHGs will constitute the General Body of PLF. Executive
Committee of PLF will be constituted with representatives from Habitation Level
Forums and both PLF and HLF will have office bearers to discharge their
functions effectively.
1.2.4 Institutional Status:
PLF is registered under Tamil Nadu Societies Registration Act, 1975 and
renewed annually.
1.2.5 Capacity Building:
The PLFs are imparted the following trainings through reputed Training
Institutions in the State
1.
PLF Governance
: 3 days residential training
Programme for the Office Bearers of PLF.
2.
Financial management
: 3 days residential training programme
for the PLF Office Beares and Book
keeper.
3.
PLF EC members Training : 3 days training programme for PLF
EC
members
4.
HLF Office Bearers Training : 2 days training programme for the
HLF Office Bearers .
5. Training on Business Opportunities for PLFs
6. Exposure Visit to Office bearers
39
2. Bulk Loan for PLFs
2.1.
Need for Bulk Loan:
The primary objective of the PLF is to provide financial and non financial
support and services to member SHGs thereby ensuring sustainability of the
SHG movement. The financial intermediation by PLF has become very essential
to minimize the impact of micro finance institutions who usually charge
exploitative rates of interest
The studies undertaken by TNCDW have revealed that the entire financial
requirement of the SHG members particularly seasonal and
requirements are not being fully met.
special credit
To bridge this gap and to provide an
additional source of finance to the SHGs to borrow and support its members,
PLFs are encouraged to take up financial intermediary role by availing bulk loan
from banks.
The PLF Bulk loan will result in financial empowerment of the community
based organizations which will bring in sustainability in SHG movement
2.2.
Advantages of PLF Loan
•
Lower Transaction cost
•
Simple documentation / procedure
•
Higher Repayment rate
•
Easier Supervision & transparent
•
Targeted credit delivery to poor and downtrodden
•
Better quality of lending
•
Prompt repayment through effective peer pressure
2.3. Pre Sanction Appraisal and Eligibility criteria:
The PLF should fulfill the following conditions to avail bulk loan.
40
•
The PLFs recognized by Tamil Nadu Corporation for Development of
Women (TNCDW)/Tamil Nadu Vazhnthu Kattuvom Project (TNVKP),
registered under Tamilnadu Societies Registration Act 1975, and are
in existence for more than 6 months (from the date of restructuring).
•
Completion of training by PLF office bearers on Governance and
Finance Management
•
The PLFs securing ‘A’ (>80 marks) & ‘B’ grade (>60 marks) in the PLF
grading (Max 100 marks).
•
Preparation and approval of annual credit plan based on
requirement of the individual members of the member SHGs.
2.4 Grading:
The Government vide G.O. Ms. No. 465 R.D & P.R. (CGS 3) Department,
dated 23.07.2009 have issued the parameters for grading the PLF. The grading
will be done in a 100 point scale consisting of 7 parameters. On completion of 6
months from restructuring, the PLFs become eligible for grading. PLF Grading
will be an independent exercise carried out by a team consisting of
two
community professionals, one representative from bank and one Assistant
Project Officer, Mahalir Thittam /Assistant Project Manager or Team leader, VKP
as the convener. Successfully graded PLFs become eligible for financial linkage
2.5. Assessment of credit:
•
Requirement of individual members will be assessed and
consolidated at SHG level. At the PLF level, it will be aggregated after
taking into consideration, the quantum of the active loans availed by
the SHGs.
41
•
The seasonal demands and the special requirement of the
members of the constituent SHGs will be assessed and included in the
PLF credit plan.
•
Requirement of the default SHGs will not be included in the PLF
credit plan
2.6. Fixing of credit limits:
•
Credit limit should be based on proper need assessment of all SHGs in
the PLF which should also cater to the entire seasonal demands in
financial years.
•
Adhering to the RBI norms the maximum active loan amount that an
individual member will be able to access from SHG direct linkages/
Revolving Fund and PLF loan will be Rs.50,000/.-. PLF should obtain
undertaking from member SHGs to this effect. However this limit may
be exceeded, at the discretion of manager concerned.
•
The present system of SHG interface with the banks is the most crucial
tool for empowerment and hence this interface should continue. The
current level of direct linkage and financing between the bank and the
SHG will continue and if required, the quantum can be increased. The
PLF bulk loan is an additional source of finance for SHGs and should
not be construed as replacement for the present system of bank-SHG
linkage
2.7 Loan-Purpose:
Purpose of the loan is left to the discretion of PLF. It may be used for a
common / group activity or specific enterprise by individual SHGs/members.
Number of SHGs/members to whom the loan is to be distributed is also left to
PLF’s decision. The loan may be utilised for economic activity or for
consumption.
42
2.8 Lending Powers:
It is left to the discretion of individual banks. However, the banks may
consider delegation of sanctioning powers to Regional level Authorities of the
respective banks to sanction PLF bulk loan irrespective of limits. This will
facilitate quick processing of PLF bulk loan application.
2.9 Margin:
No Margin is required irrespective of the quantum of loan (as applicable to
SHG Bank linkage program). Subsidy is not being contemplated under the
scheme.
2.10 Rate of Interest to PLF by the Bank:
Interest chargeable to the PLFs will be as stipulated by NABARD / RBI to
SHGs. The minimum RoI should be charged by banks to enable the PLFs to
charge reasonable RoI from the member SHGs so that the ultimate interest
charged will not be more than 15% p.a. Interest should be charged on monthly
basis.
2.11 Types of Loan:
•
Since most members will utilize SHG loans for rural farm and non-farm
activities, which generate income at regular intervals, PLF bulk loan can
be sanctioned as term loans.
•
Bulk lending can be extended to the PLFs as Cash Credit facility also.
43
2.12 Security:
•
Hypothecation of the Book debts/ receivables arising out of Bank loan
shall be the Primary security. Hypothecation / assignment of fixed assets/
movable assets like building, Machinery, vehicles. Stocks, livestock etc
created out of Bank loan shall be taken as security.
•
PLF members and the members of constituent SHGs will be jointly
/severally liable for the loan obtained by the PLF. No further collateral
security is required
2.13 Credit documentation:
Following documents have to be executed by the PLF for availing bulk
loan from bank.
2.13.1 Primary document

Application form (along with passport size photographs of office
bearers of the PLF) signed by Secretary and Treasurer of PLF
•
Sponsorship letter from Project Officer: Mahalir Thittam/ Project Manager:
Vazhndu Kattuvom Project.
•
Resolution passed by PLF
•
Copy of registration under TN Societies Act 1975 & Bye Laws/ Rules and
Regulations of the PLF.
•
Copy of resolution from PLF seeking credit assistance to PLF with details
of the requirements of the member SHGs.
•
Copy of Grading Sheet of PLF
44
•
Copy of credit plan
•
Letter of assignment for assigning the assets created by the member
SHGs/SHG members of the member SHGs in favour of the Bank.
2.13.2. Other Documents
•
List of SHGs in the PLF with address and names of the animator and
representatives, Office bearers of PLF and members of PLF – EC
authenticated by Mahalir Thittam / Vazhndu Kattuvom Project.
•
Sanction Ticket to be issued in duplicate and one copy acknowledged by
the PLF to be kept with the documents.
•
Demand Promissory Note signed by the authorized signatories of PLF.
•
Loan Agreement as per bank norms with PLF
•
Agreement of hypothecation of movables in case movables are taken as
additional securities.
•
PLF and SHGs should obtain legally enforceable documents while lending
to SHG/members to effect recovery in case of default. The document
should also include hypothecation of assets besides assignment of assets
to PLF & Bank.
2.14 Disbursement:
•
Whenever the PLF bulk loan is sanctioned as term Loan it will be released
in one lump sum or in stages, as requested by PLF as per the resolution
of PLF executive committee.
•
The amount disbursed out of the loan amount should be credited to
the SB a/c of PLF only.
•
The disbursement of loan by the PLF to the SHGs should take
place simultaneously, through the SB a/c of the SHGs. No cash payment
be permitted from Bank to PLF/ PLF to SHGs.
•
Such transactions should be cashless and routed through the
accounts of PLF and member SHGs maintained with the branch.
45
•
Each stage of release should be supported by resolution of PLF
containing detailed information on SHG wise loan amount.
•
The Credit Linkage Monitoring sub committee of PLF shall ensure
the end use, monitor asset maintenance by members of SHG including
insurance and maintain the records.
•
The bills and other documents as proof of asset creation shall be
maintained by PLF and produced to the Bank for verification by Branch
Manager, as and when required.
•
Branch Manager/Bank’s Official should also visit the PLF and its
member SHGs and ensure the end use/asset creation.
2.15 Repayment:
•
Term Loan with 3-5 years repayment will be on equated monthly installments
(EMIs) arrived at in consultation with PLFs. The repayment tenor should be
worked out from the date of release of I installment of the loan.
•
The PLF shall make regular periodic repayment of the loan installments
and interest as and when due irrespective of whether their entire borrower
SHGs have made similar payments to PLF or not in time.
2.16 Other Terms and conditions:
•
PLF should submit minutes of the General body meeting to the branch every
quarter.
•
PLF should verify the end use by the SHG/ maintenance of assets/ insurance
by forming Credit Linkage monitoring subcommittee.
•
PLF can fix a slightly lesser number of installment to SHGs to ensure timely
repayment of loan
•
PLF may access further assistance from other financial sources if required
with the concurrence of bank that has sanctioned bulk loan.
•
Auditing of accounts should be made once in a year and a copy of the audit
report should be submitted to the bank branch.
46
•
Position of PLF advances and issues shall be reported to Lead Bank for
discussion in each DCC.
•
Any Change in office bearers should be immediately intimated to the Bank
along with proper resolution and photographs of the new office bearers.
2.17 ROI and other charges by the PLF to the member SHGs:
The PLF may charge the member SHGs (by way of interest and other
charges) upto 3.5% over the Bank’s rate of interest or 15% which ever is less.
2.18 Post sanctions follow up measures:
Necessary post sanction follow up measures will be undertaken by Project
Officers/Asst Project Officers of TNCDW, District Project Managers/Asst. Project
Managers from VKP and Block officials in assistance with bankers. The order of
periodicity as listed below:
2.19 Monitoring:
S.N
1
Mechanism
PLF and SHG visit
2.
Block Level Co-ordination
Committee Meeting
(BLCC)
3
Block-level Bankers
Meeting (BLBC)
4
District Project
Coordination Committee
Meeting (DPCC)
Participants
Periodicity
Bank Managers / Block,
Fortnightly or As
TNCDW,VKP officials
and when required
Bank Managers / Block,
Once in a month
TNCDW,VKP officials and PLF
office bearers
LDM, AGM(NABARD), Block
Bankers, Block officials, APO
of MT(zonal officer for the
block and PLF office bearers
District Collector, PIU Officials,
Convenor of lead Bank, AGM
of NABARD, NGOs, District
Coordinators of all banks and
BLCC/ Federation
representatives
47
Once in a quarter
Once in a month.
5
District Consultative
Committee/DLRC/Standin
g Committee Meeting
(DCM)
Special Agenda: 2
District Collector, PIU Officials, Once in a month.
Convenor of lead Bank, AGM
of NABARD, NGOs, District
Coordinators of all banks and
BLCC/ Federation
representatives
SLRM:2009
CROP INSURANCE SCHEMES
A)
National Agricultural Insurance Scheme (NAIS) – Procedure for
settlement of additional claims arising due to Mistakes / Errors /
Omissions / Commissions of Financial Institutions
Regional Manager, Agriculture Insurance Company Ltd. (AIC), Chennai had
advised vide letter dated 24.06.2009 that Government of India, Ministry
of Agriculture sought the views of the Banks / State Government on the
draft procedure for dealing with the above mentioned cases.
In the 119th SLBC meeting held on 25.09.2009 the above issues were
discussed and member Banks were requested to send their responses to
SLBC / AIC for drafting procedure for settlement of additional claims
under the above stated circumstances.
Pandyan Grama Bank and Pallvan Grama Bank had sent their suggestions.
Other Member Banks are requested to offer their suggestions /
recommendations if any, on the above at the earliest.
B)
Implementation of Weather Based Crop Insurance Scheme
(WBCIS) on pilot basis in select Districts of Tamil Nadu during
Rabi 2009-10
Commissioner of Agriculture, Government of Tamil Nadu advised that
Weather Based Crop Insurance Scheme (WBCIS) would be implemented in
select Districts of Tamil Nadu on a pilot basis.
The salient aspects of WBCIS are as under.
48
 WBCIS will be implemented on pilot basis in select districts of Tamil
Nadu as per the guidelines of Government of India.
 Three insurance companies viz., Agricultural Insurance Company of
India Ltd, M/s IFFCO-TOKIO General Insurance Company Ltd and
M/s ICICI Lombard General Insurance Company Ltd are involved in
the Pilot Project.
 Under WBCIS in the select districts loanee farmers should be
compulsorily covered and non-loanee farmers will be covered on
voluntary basis.
The names of the Districts allotted to the above 3 insurance companies are
indicated below.
Sl.No
Name of the Insurance Company
Districts allotted
1
Agricultural Insurance Company of Ariyalur,
India Ltd
Dharmapuri,
Perambalur,
Salem,
Virudhunagar
2
ICICI Lombard General Insurance Dindigul
Company Ltd
Villupuram
3
IFFCO-Tokio General Insurance Coimbatore
Company Ltd
Commissioner of Agriculture, Government of Tamil Nadu has advised the
premium rates quoted for various crops under WBCIS. SLBC vide letter
dated 29.10.2009 requested the respective Lead District Managers to coordinate with the Insurance Company for effective implementation of the
above scheme.
Member Banks are requested to ensure active participation of their
branches in the districts in the crop insurance scheme.
49
Special Agenda: 3
SLRM: 2009
Financial Inclusion
Reserve Bank of India has enlarged the category of persons that can act as
Business
Correspondent
(BC)
vide
circular
No.
DBOD
No.BL.BC.63/22.01.009/2009-10 dated 30.11.2009 keeping in view the
regulatory and supervisory framework and consumer protection issues.
Accordingly Banks are permitted to engage the following entities as BCs in
addition to the entities already advised by RBI.
1. Individual kirana/medical /fair price shop owners
2. Individual Public Call Office (PCO) operators
3. Agents of Small Savings schemes of Government of India/Insurance
Companies
4. Individuals who own Petrol Pumps
5. Retired teachers
6. Authorised functionaries of well run Self Help Groups (SHGs) linked
to banks.
Roadmap for Financial Inclusion:
A High Level Committee set up by RBI has recommended that a SubCommittee of the DCC may draw up a roadmap to provide banking services in
any form (such as brick and mortar branch, mobile banking, extension
counters, satellite offices or Business Correspondents) to every village with
a population of over 2000 at least once in a week on a regular basis by March
2011 and in States where banking penetration is better, the population
criteria could be suitably reduced.
By March 2010, the Sub-Committee should come out with a time frame
within which this can be achieved and the time frame to cover all villages
having a population of more than 2000 with a banking outlet not later than
March, 2011. In States where the banking penetration is better, the date
may be advanced suitably.
50
SLBC vide letter dated 10.12.2009 had advised the DCC Convenors as under:
1. Form a Sub Committee of DCC, which should meet on a monthly basis
for reviewing and monitoring the progress made in this regard.
2. Identify the villages and ensure provision of banking facilities to such
villages within the time frame as advised by RBI.
3. Send a list of such villages identified to SLBC.
4. Furnish the progress report in the RBI prescribed format not later
than 10th of every month.
Member Banks are requested to utilize the newly added entities as BCs and
increase the outreach of banking services.
The progress made by the Member Banks under Financial Inclusion as on
September 2009 is furnished in the Annexure I.
The District-wise data as on September 2009 received from the Lead
Districts is furnished in the Annexure II. DCC Convenors /LDMs are
requested to ensure submission of the data on financial inclusion to SLBC for
review on time.
51
Annexure I
S.No
Name Financial
of the Bank
GeneralpositionOverdraft
Progress under
Inclusion'No-Frills’
by Banksa/c
- Cumulative
opened
Purpose
granted in NoAs on September
2009
(Nos)
Credit Cards
issued (Nos)
1
Allahabad Bank
1655
0
2
Andhra Bank
3009
5
3
Axis Bank Ltd.
8924
4
Bank of Baroda
27911
5
Bank of India
41383
6
Bank of Rajasthan Ltd.
7
Bank of Maharashtra
8
Canara Bank
9
51
Frills SB a/c
(Nos)
121
29
556
262606
11278
Central Bank of India
29788
1220
10
Corporation Bank
49442
1159
11
City Union Bank Ltd.
32788
12
Dena Bank
1867
13
Dhanalakshmi Bank Ltd.
6641
14
Federal Bank Ltd.
3998
15
HDFC Ltd.
16
ICICI BANK LTD.
17
Indian Bank
18
20
484
15405
156870
1427679
5645
17702
Indian Overseas Bank
757183
11129
6305
19
ING Vysya Bank Ltd.
939
0
8
20
Karur Vysya Bank Ltd.
19923
0
21
Karnataka Bank Ltd.
22
Lakshmi Vilas Bank Ltd.
Oriental Bank of
Commerce
23
S.No
Name of the Bank
3169
19645
1976
'No-Frills’ a/c
opened
(Nos)
52
General
Purpose
Credit Cards
issued (Nos)
Overdraft
granted in NoFrills SB a/c
(Nos)
24
Pallavan Grama Bank
187097
308
25
Pandyan Grama Bank
396981
350
26
Punjab National Bank
13999
205
27
Punjab & Sind Bank
28
South Indian Bank Ltd.
29
30
State Bank of India
State Bank of Bikaner &
Jaipur
31
State Bank of Mysore
2896
19
32
State Bank of Patiala
State Bank of
Travancore
31470
1
17743
253
20869
184
36
Syndicate Bank
Tamil Nadu Mercantile
Bank Ltd.
Tamil Nadu State Apex
Co.op Bank
133252
3597
37
Union Bank of India
52148
540
38
United Bank of India
39
UCO Bank
33
34
35
121
39165
12
2514
38
2081
3
4193301
37144
Annexure II
District wise data on Financial
As on September 2009
Name of the
District
614
419507
Total
S.No
0
24035
Inclusion – Cumulative position
'No-Frills’ a/c
opened (Nos)
General Purpose
Credit Cards
issued (Nos)
Overdraft
granted in SB
a/cs (Nos)
1
2
Ariyalur
Coimbatore
108614
58980
2847
34
3
4
Cuddalore
Dharmapuri
452450
84115
1057
164
10098
467
53
5
6
Dindigul
Erode
398821
121772
2460
142
7
8
Kancheepuram
Kanyakumari
122890
157927
3132
4155
9
10
Karur
Krishnagiri
42172
212386
635
335
7718
1144
11
12
Madurai
Nagapattinam
479859
137043
5846
274
13
14
Namakkal
Nilgiris
83020
43195
541
412
260
15
16
Perambalur
Pudukottai
75312
178756
17
18
Ramanathapuram
Salem
156848
325261
31
10
19
20
Sivaganga
Thanjavur
171083
142365
19296
244
21
22
Theni
Thiruvannamalai
71769
70253
850
42
23
24
Tiruchirapalli
Tirunelveli
26610
90169
363
35
12
10
25
26
Tiruvallur
Tiruvarur
230107
92909
65
10
27
28
Tuticorin
Vellore
188531
226877
188
888
54
5
29
30
Villupuram
Virudhunagar
65548
3374
803
71
257
4619016
40303
Total
Special Agenda: 4
24652
SLRM: 2009
SETTING UP OF FINANCIAL LITERACY & CREDIT COUNSELLING
CENTRES (FLCCC)
54
With a broad objective of providing free financial literacy /education and
credit counselling, RBI had advised Banks to set up FLCCC.
As per the decision of SLBC, a Sub-committee meeting was constituted to
monitor the progress in setting up of FLCCCs by member Banks in
Tamil
Nadu.
In the State of Tamil Nadu, the following Banks had set up FLCCCs.
Sl.No
Name of FLCCC
Sponsoring Bank
Place
1
ABHAY
Bank of India
Chennai
2
DISHA
ICICI Bank Ltd
Chennai
3
FLCCC
Indian Bank
Dharmapuri
4
SNEHA
Indian Overseas Bank
Kanyakumari
SLBC had urged the member Banks to explore the possibilities of setting up
FLCCCs in more places.
Central Bank of India and City Union Bank Ltd advised that they would start
FLCCC in Villupuram and Tiruvarur districts respectively. The developments in
this regard may be advised to RBI and SLBC.
Member Banks are requested to identify uncovered / unallotted districts
for setting up of FLCCCs.
Special Agenda: 5
SLRM 2009
Setting up of Rural Self-Employment Training Institutes (RSETIs)
Following districts have been assigned to member Banks for setting up
RSETIs in the State.
55
1.
2.
3.
4.
Tirunelveli & Trichy
Salem, Tiruvallur & Vellore
Dindigul, Theni, Erode & The Nilgris
Tuticorin & Ariyalur
-
Indian Overseas Bank
Indian Bank
Canara Bank
State Bank of India
In the following Districts the assignee Banks have already set up RSETIs.
1. Tirunelveli District by Indian Overseas Bank
2. Salem, Vellore and Tiruvallur Districts by Indian Bank
The assignee Banks are requested to expedite setting up of RSETIs in the
allotted districts at the earliest and report the same to SLBC.
Indian Overseas Bank had expressed willingness to set up RSETI in
Thanjavur District which may be allotted to them.
Providing Land for construction of RSETIs:
Deputy Director General, NIRD, Hyderabad had advised that pursuant to
the decision taken in the first National Level Steering Committee meeting
held on 16.09.09 the Ministry of Rural development, GOI had set 31.12.2009
as the deadline to complete the land allotment process to the approved
RSETIs by the respective State Government.
SLBC has requested vide letter dated 04.12.2009 addressed to the
Secretary, Rural Development Department, Government of Tamil Nadu to
provide suitable land to the respective Banks to set up the training
institutes. SLBC may be informed on the present position of land allotment
by Government of Tamil Nadu.
Member Banks are requested to identify uncovered / unallotted districts
for setting up of RSETIs and advise their willingness to SLBC for approval in
the Sub Committee of SLBC on RSETI.
Special Agenda:
6
SLRM 2009
Coverage of Unbanked / Under banked areas of the State:
56
Ministry of Finance, Government of India vide their letter dated 18th August
2009 advised to identify unbanked* / under banked** areas in the State and
take steps to ensure that the unbanked / under banked areas approach the
national average in terms of average population per bank branch.
There is no unbanked block in Tamil Nadu. However there are 5 under
banked blocks in 4 districts of the State as under:-
Sl
No
Name of the
District
Total
Total
Name of the Geographical Population Bank Branch SCB
Block
Area of the
of the
or RRB
Block in Sq. Kms Block
Konganapuram
119.28
56875
Kolathur
361.36
116511
Kannangudi
243.20
28839
240.50
32153
600
49081
1 Salem
2 Sivaganga
3 Thiruvannamalai Jawadhu Hills
4 Villupuram
Kalrayan Hills
Indian Bank,
Konganapuram
Indian Bank,
Kolathur
Pandyan Grama
Bank, Kannangudi
Indian Bank,
Jamanamarathur
Indian Bank,
Vellimalai
SLBC has taken up the matter with DCC Convenors of the above four
districts for preparation of Roadmap for under banked areas and achieve
financial inclusion with a target of covering under banked areas with at least
one branch of the Commercial bank or the RRB by 31.03.2010.
So far no proposal has emanated from Member Banks for opening branches
in these 4 blocks. Hence, Member Banks are again requested to consider
opening branches in the under banked blocks mentioned above in coordination
with DCCs concerned.
Special Agenda: 7
SLRM 2009
Request for opening a branch of nationalized branch at Nachikulam in
Thiruvarur District.
57
Reserve Bank of India, Mumbai, vide their letter dated 26.11.2009 has
forwarded a copy of letter dated 21.08.2009 (copy furnished in the
annexure) received from Consumer Protection, Environment & Human Rights
Centre, requesting for opening of a branch at Nachikulam of Thiruvarur
District which has population of 5500 of which 2200 persons are working in
foreign countries.
RBI has advised to discuss the matter in the SLBC Meeting with a view to
exploring the possibility of opening a bank branch on merits and as per
relevant norms.
The forum is requested to deliberate and offer its views.
58
59
Special Agenda: 8
SLRM 2009
FLOW OF CREDIT TO AGRICULTURE
The target under farm credit disbursement by Banks for the current year
2009-10 is Rs.22611.76 Crores.
The performance details of Banks in respect of credit disbursement to Farm
Sector for the 7 months period from 01.04.2009 to 31.10.2009 are
furnished in Annexure.
As against the Annual Target of Rs.22611.76 Crores, disbursement during
the current year (2009-10), upto October 2009 amounted to Rs.12592.02
Crores which works out to 55.69%.
Member Banks are requested to accelerate the credit flow to Farm Sector
and ensure 100% achievement under Farm Credit.
60
STATE LEVEL BANKERS' COMMITTEE, TAMILNADU
CONVENOR : INDIAN OVERSEAS BANK
PROGRESS IN DOUBLING OF AGRICULTURAL CREDIT
BY THE BANKING SYSTEM IN TAMILNADU
FOR THE PERIOD 01.04.2009 TO 31.10.2009
Sl.N
Particulars
o
1 Loans Issued:
1A Crop Loans
1B Term Loans
Provisional
(Rs. in lacs)
Comm.
Total
Bks
Co-op
RRBS
83573.24
55450.16 1120178.97
1259202.37
79788.85
51328.71 984075.78
1115193.34
3784.39
4121.45 136103.19
144009.03
2
No. of New Farmers Financed
3
No. of Agri Clinics Financed
4
% of New Loans issued of 1B
12.36
22.96
31.54
33.64
above
Of 1 above, loans issued in respect of farmers who have been extended relief for
5
5a Distress
5b Arrears
5c OTS
6
SHGs formed for Tenant
Farmers
Number
Amount
61
44764
27671
320795
393230
20
0
9
29
350
0
1126
1476
10
0
1543
1553
8
0
1261
1269
71
0
211
282
38.20
0
187.36
225.56
Special Agenda: 9
SLRM:2009
Government of India’s Agricultural Debt Waiver & Debt Relief
Scheme 2008
The extended period for payment of 75% of overdue portion by Other
Farmers (OF) under ADWDRS 2008 is coming to the end by 31.12.2009.
As only a few days are left, Member Banks are requested to step up their
efforts to provide relief to maximum number of eligible other farmers.
The details of progress as on 30.11.2009 received from Member Banks are
furnished in the Annexure III B. Loans pertaining to 11.01 lacs Small /
Marginal farmers’ to the tune of Rs.2247.32 crores have been waived and
2.57 lacs Other Farmers have been offered relief to the extent of
Rs.594.33 crores.
Member Banks are requested to note that 31 st January, 2010 will be last
date for receiving grievances by all agencies as communicated vide SLBC
letter dated 31.07.2009.
The details with regard to complaints / grievance petitions received by
Lending Institutions as on 30.11.2009 are also furnished in the Annexure.
Member Banks are requested
 To inform the progress (Annexure IIIA) every Monday to SLBC to enable
SLBC to submit the consolidated report on every Tuesday to RBI.
 To dispose the pending complaints and advise progress to SLBC on
monthly basis.
 To send soft copies of the data for each district, to the DCC Convenors /
Lead District Managers concerned immediately, as LDMs are required to
keep the CDs containing data for their respective lead districts as per
the directions of the Ministry of Finance, Government of India.
62
63
64
65
66
REVIEW NOTE: 3
SLRM 2009
REVIEW ON BANKING DEVELOPMENTS IN TAMILNADU ON KEY
PARAMETERS AS OF SEPTEMBER 2009
KEY PARAMETERS
Parameters
No. of Branches
Deposits
Advances
CD Ratio
Investments
Credit + Investment to
Deposit Ratio
Priority Sector Advances
% of Priority Sector
Advances to Total Advances
Agricultural Advances
% of Agricultural Advances to
Total Advances
Micro & Small Enterprises
(MSE)
% of MSE to Total Advances
Other Priority Sector
Advances
% of OPS Advances to Total
Advances
Advances to Weaker Sections
% of Weaker Section
Advances to Total Advances
DRI Advances
% of DRI Advances to Total
Advances
SEPT.
2008
(Amount – Rs. in crores)
VARIATION & % OF
SEPT.
GROWTH OVER
2009
SEPT.2008
5619
6078
459
206877.19
251532.69
44655.50
(21.59%)
247263.84
283604.36
36340.52
(14.70%)
120%
113%
-7%
1895.08
1665.91
-229.17
120%
113%
-7%
92025.64
111865.03
19839.39
(21.56%)
40.11
33069.71
41.50
44506.66
11436.95
(34.58%)
14.41
16.51
23319.39
40287.01
16967.62
(72.76%)
10.16
14.95
35636.54
27071.36
-8565.18
15.53
17021.45
10.04
23318.25
6296.80
(36.99%)
7.42
8.65
45.96
86.33
40.37
(87.84%)
0.02
0.03
67
-ve
BRANCH NETWORK
As at the end of September 2009, the total number of Bank Branches in
Tamilnadu increased to 6078 from 5619 in September 2008. Group wise
spread of Bank branches in Tamilnadu as of September 2008 and September
2009 are given below:
Name of the Group
State Bank Group
Nationalised Banks
Private Sector Banks
RRBs
Foreign Banks
Total
SEPT.
2008
817
3244
1276
259
23
5619
SEPT.
2009
887
3471
1418
280
22
6078
Variation
70
227
142
21
-1
459
The Population per Bank Branch in Tamil Nadu now stands at 10267 as
against national average of 15000 (based on 2001 census viz., 6,24,05,679).
DEPOSIT GROWTH
Deposits of the Banks in Tamil Nadu have increased from Rs.206877.19
crores as of September 2008 to Rs.251532.69 crores as at
September 2009, registering an increase of Rs.44655.50 crores. The year
to year incremental deposit growth works out to 21.59% as against the
growth of 22.03% from September 2007 to September 2008.
CREDIT EXPANSION
Advances by Banks in Tamil Nadu increased from Rs.247263.84 crores as of
September 2008 to Rs.283604.36 crores as of September 2009, registering
an increase of Rs.36340.52 crores with a growth rate of 14.70% as against
the growth rate of 25.48% recorded in the previous year.
CD RATIO
The Credit Deposit Ratio of Commercial Banks in Tamilnadu decreased from
120% as of September 2008 to 113% as of September 2009.
68
CREDIT + INVESTMENT TO DEPOSIT RATIO
The Credit + Investment to Deposit ratio in Tamilnadu decreased from 120%
in September 2008 to 113% in September 2009.
Overall CD ratio in the State of Tamilnadu is shown as under:
SEPT.
2008
SEPT.
2009
Variation over
Sept.2008
CD ratio of Commercial Banks
120%
113%
-7%
Credit + Investment to deposit
120%
113%
-7%
Parameter
PRIORITY SECTOR ADVANCES
Priority Sector advances of Commercial Banks including Foreign Banks have
gone up from Rs.92025.64 crores as of September 2008 to Rs.111865.03
crores as of September 2009, thereby showing an increase of Rs.19839.39
crores which represents 21.56% growth. The share of Priority Sector Credit
to total Credit, as at the end of September 2009 was 41.50% as against the
national norm of 40%.
Priority Sector Advances have shown an incremental growth of 22.50%
during the period September 2007 to September 2008.
AGRICULTURAL ADVANCES
The aggregate agricultural advances extended by Banks in Tamil Nadu have
increased from Rs.33069.71 crores as of September 2008 to Rs.44506.66
crores as of September 2009, thus registering an increase of Rs.11436.95
crores in absolute terms and 34.58% in percentage terms. [The growth rate
during the period September 2007 to September 2008 was 15.67%]. The
share of agricultural credit in total advances as of September 2009 was
16.51% against the national norm of 18%.
69
MICRO & SMALL ENTERPRISES (MSE)
As per the revised Priority Sector guidelines, Micro & Small Enterprises
(MSE) comprises of both Manufacturing and Service Enterprises viz.,
Professional & Self employed, Small Business, Road Transport Operators etc.
Now, RBI has recently advised that Retail Trade under Priority Sector would
come under MSE.
Accordingly, the outstanding level of credit to MSE Sector stood at
Rs.40287.01 crores as of September 2009 amounting to 14.95% of total
credit.
As on September 2008 credit to SSI sector amounted to Rs.23319.39
crores.
OTHER PRIORITY SECTOR ADVANCES
As per the revised Priority Sector guidelines, Other Priority Sector
Advances now consists of Micro Credit, Education, Housing & State
Sponsored Organisation for SC/ST only.
The outstanding Advances to Other Priority Sector by Banks as of
September 2009 was Rs.27071.36 crores.
As on September 2008, Other Priority Sector credit stood at Rs.35636.54
crores.
ADVANCES TO WEAKER SECTIONS
The advances to Weaker Sections under Priority Sector Credit by the
Commercial Banks in Tamil Nadu registered an increase of Rs.6296.80 crores
representing 36.99% growth. The outstanding amount has increased from
Rs.17021.45 crores as of September 2008 to Rs.23318.25 crores as of
September 2009. At this level, advances to Weaker Sections constituted
8.65% of the total credit. The growth during last year (September 2007September 2008) was 9.98%.
70
DRI ADVANCES
The DRI advances have increased from Rs.45.96 crores as on September
2008 to Rs.86.33 crores as of September 2009, registering a growth rate
of 87.84%.
NATIONAL NORMS
PERFORMANCE OF COMMERCIAL BANKS UNDER THE STIPULATED
NATIONAL NORMS ARE AS UNDER:
(Amount Rs.in Crores)
Particulars
Priority Sector Advances to
Total Advances
Agricultural Advances to Total
Advances
Weaker Section Advances to
Total Advances
DRI
Advances
to
Total
Advances of previous year
National Norms for
March 2010
%
Target
Amount
Achievement upto
September 2009
%
Amount
40
107824.42
41.50%
111865.03
18
48520.99
16.51%
44506.66
10
26956.11
8.65%
23318.25
1
2695.61
0.03%
86.33
ACTION AREAS: Credit disbursement to Farm Sector has to be accelerated for achieving
the March 2010 target of Rs.48520.99 crores. Member Banks are
requested to focus on improving the credit flow to agriculture by their
branches in the districts of Coimbatore, Tiruppur, Tiruvallur and
Virudhunagar districts as the share of Agri Advances to total credit in
these districts is below the National Norm of 18%,
 The share of advances to weaker sections has gone up from the level of
7.42% in September 2008 to 8.65% in September 2009. Member Banks
are requested to step up their lending to weaker sections so that this
national norm of 10% is achieved for this category of advances also.
71
 Regarding the share of DRI advances to total advances also, it continues
to remain below the National Norm of 1%. Hence Member Banks are
requested to evolve suitable strategies for increasing the advances under
DRI to achieve the National Norm.
CREDIT + INVESTMENT TO DEPOSIT RATIO
Commercial Banks including Regional Rural Banks have invested
Rs.1665.91 crores in Government securities, shares, Bonds, Debentures etc.,
apart from credit outstanding of Rs.283604.36 crores.
Hence, the Credit + Investment to Deposit Ratio as of September 2009 is
113%.
Overall CD Ratio as of September 2009 is as follows:
(a)
Commercial Banks
:
(b)
Including Co-operative Banks
:
(c)
Credit + Invest. Deposit Ratio (Comm.Bks.) :
(d)
Credit + Investment Deposit Ratio
:
(including Co-operative Banks)
DISTRICTWISE
TAMILNADU
PERFORMANCE
OF
113%
113%
113%
115%
COMMERCIAL
BANKS
IN
A comparative analysis of the performance of the commercial banks in
Tamilnadu indicates the following:
a) Tiruppur district has the highest CD ratio at 174% followed by
Virudhunagar district (161%) & Theni (150%) .
b) Of the 31 lead districts, the CD ratio of 29 districts is above the RBI
norm of 60%.
72
c) Kancheepuram and Tiruvallur Districts are having CD ratio of 47% and
55% respectively which is less than the National Norm of 60% and
Member Banks are requested to focus their attention to improve their
lending so as to achieve the National Norm for CD Ratio in those
districts.
Agricultural advances to total advances in the following districts is below
18% norm.
Coimbatore
Tiruppur
Tiruvallur
Virudhunagar
-----
11.67%
15.59%
15.37%
11.58%
73
REVIEW
OF
OPERATIONS
OF
CO-OPERATIVE
TAMILNADU AS AT THE END OF SEPTEMBER 2009
BANKS
IN
As at the end of September 2009, there were 786 branches of Co-operative
Banks (both, District Central Co-operative Banks and State Agricultural and
Rural Development Banks) in Tamilnadu. The details are furnished for the
information of the members.
SEPT.
2008
Classification of Branches
SEPT.
2009
Rural
283
244
Semi-Urban
183
216
Urban
205
187
Metro
111
139
TOTAL
782
786
(Amount – Rs. in Crores)
SEPT.
SEPT.
2008
2009
Particulars
Deposits
13042.53
17452.14
Advances
15241.70
19322.24
Investments
5988.43
5845.84
CD Ratio
116.86%
110.72%
Credit + Investment to Deposit Ratio
162.78%
144.21%
74
S.No.
1
(Amount – Rs. in Crores)
SEPT.
SEPT.
2008
2009
Particulars
Agricultural Advances
Of which, Direct Advances
2161.24
2317.57
396.96
1140.05
2
Micro & Small Enterprises
648.69
840.63
3
Education
470.63
518.15
4
Housing
35.93
68.97
5
Micro Finance & Others
350.41
813.50
3666.90
4558.82
TOTAL PRIORITY SECTOR ADVANCES
ADVANCES UNDER SPECIAL PROGRAMMES / SCHEMES / SECTORS
(Amount – Rs. in crores)
SEPT.
SEPT.
2008
2009
Total Advances to Weaker Sections
1367.64
2486.84
313.87
385.25
62.51
40.06
9.75
282.81
Of which,
(i) Advances under SC/ST
(ii) Advances under IRDP/SGSY
(iii) Advances under DRI
75
76
77
78
REVIEW NOTE: 4
SLRM 2009
A. REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN
2009 – 2010: APRIL 2009 TO SEPTEMBER 2009
As per the quick information report obtained from the Lead District
Managers, Banks in Tamil Nadu have disbursed total credit of
Rs.20451.50 crores under Annual Credit Plan upto the second quarter ended
September 2009 as against the proportionate plan allocation of Rs.20909.52
crores, representing 98% achievement under ACP for the year 2009-10.
Sector
Farm
Non-Farm
OPS
TOTAL
Credit Allocation
April 2009 to
September 2009
11005.73
5056.17
4847.62
20909.52
Amount in Rs. crores
Credit Disbursed
% of
April
2009
to
Achievement
September 2009
11334.78
103
4507.42
89
4609.30
95
20451.50
98
Credit flow to Farm Sector aggregates to Rs.11334.78 crores as against the
proportionate plan allocation of Rs.11005.73 crores, representing 103%
achievement.
Under Non-Farm Sector the disbursement upto the second quarter works
out to Rs.4507.42 crores against the proportionate plan allocation of
Rs.5056.17 crores, which comes to 89%. Under the category of Other
Priority Sector Advances, the achievement by Banks upto the second
quarter was Rs.4609.30 crores as against the proportionate plan allocation
of Rs.4847.62 crores, which works out to 95% of the allocation.
79
A COMPARATIVE POSITION OF DISBURSEMENT UNDER ACP UPTO
QUARTERS ENDED SEPTEMBER 2008 AND SEPTEMBER 2009 IS
FURNISHED BELOW:
Amount Rs. in crores
Credit disbursed Credit disbursed
Variation in
Sector
from April 2008 from April 2009
percentage
to Sept.2008
to Sept.2009
Farm
9534.94
11334.78
18.88
Non-Farm
3784.23
4507.42
19.11
OPS
3997.16
4609.30
15.31
TOTAL
17316.33
20451.50
18.11
District wise performance:
District wise/Major Sector wise performance for the period ended
September 2009 is furnished in Annexure – I. Banking System in Tamilnadu
has achieved 98% of the proportionate plan allocation during the period
under review. The performance of the individual districts varies from 42%
to 126%. The following 19 districts have achieved 100% of the target.
Sl.
No.
District
1.
2.
3.
4.
5.
6.
7.
8.
9.
VELLORE
DHARMAPURI
TIRUCHIRAPPALLI
VIRUDHUNAGAR
KARUR
T.V.MALAI
DINDIGUL
TIRUVALLUR
CUDDALORE
% of
Achievement
126
125
117
116
110
108
106
105
104
10.
RAMANATHAPURM
103
Sl.
No.
District
11.
12.
13.
14.
15.
16.
17.
18.
19.
KRISHNAGIRI
MADURAI
TIRUPPUR
NILGIRIS
SALEM
ERODE
THENI
COIMBATORE
KANCHEEPURAM
% of
Achievement
103
102
102
101
101
101
101
100
100
The performance of Banks in Tuticorin District (42%) is very low and Banks
have to improve their performance vastly under ACP 2009-10 in the
remaining months.
80
Sector wise performance:
A. Farm Sector (Agriculture and Allied Activities):
The performance under Farm Sector is satisfactory with 103% achievement
upto the second quarter ended September 2009. In the following 23
districts, the performance is 100% & above of the proportionate plan
allocation for September 2009. Performance in other districts has to be
scaled up to 100%.
Sl.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
District
VIRUDHUNAGAR
TIRUCHIRAPPALLI
VELLORE
KARUR
DHARMAPURI
RAMANATHAPURM
CUDDALORE
T.V.MALAI
SIVAGANGA
SALEM
DINDIGUL
NAGAPATTINAM
% of
Sl.
Achieve- No.
ment
177
13.
133
14.
129
15.
127
16.
117
17.
116
18.
116
19.
114
20.
112
21.
109
22.
108
23.
104
District
TIRUPPUR
KRISHNAGIRI
MADURAI
PERAMBALUR
TIRUVALLUR
KANCHEEPURAM
THENI
NILGIRIS
COIMBATORE
ERODE
KANYAKUMARI
% of
Achievement
103
103
102
102
101
101
101
100
100
100
100
B. Non-Farm Sector – Industries:
Performance of Banks under Non-Farm Sector is 89% of the proportionate
plan allocation. The following districts have performed well by achieving
100% of proportionate target upto the second quarter ended September
2009.
81
Sl.No.
1.
2.
3.
4.
5.
6.
7.
District
VELLORE
TIRUCHIRAPPALLI
DHARMAPURI
TIRUVALLUR
NILGIRIS
DINDIGUL
ERODE
%
225
124
120
113
104
104
102
Sl.No.
8.
9.
10.
11.
12.
13.
District
MADURAI
THENI
TIRUPPUR
KARUR
COIMBATORE
KANCHEEPURAM
%
102
102
102
100
100
100
Sl.No.
District
%
Sl.No.
District
%
Districts other than the above have registered less than 100% achievement.
1.
SIVAGANGA
44
4.
NAMAKKAL
34
2.
CUDDALORE
44
5.
NAGAPATTINAM
9
The performance of Banks in the following districts under Non-Farm Sector
3.
TIRUVARUR
43
6.
TUTICORIN
8
is below 50% and the LDMs of these districts are requested to bestow
their attention and co-ordinate with Member Banks to improve the
performance under Non-Farm Sector during the current year.
C. Other Priority Sector:
Performance ofDistrict
Banks in Tamilnadu
Other Priority
Sector Advances
Sl.No.
% under
Sl.No.
District
%
works
out
to 95% of the proportionate
plan allocation
upto the second
1.
PUDUKOTTAI
293
10.
DINDIGUL
102
quarter
ended
September 2009.
of the following 18
2.
VIRUDHUNAGAR
184 Performance
11.
TIRUPPUR
102
districts
is 100% & above.
3.
DHARMAPURI
149
12.
THENI
102
4.
5.
6.
7.
8.
9.
KRISHNAGIRI
VILLUPURAM
VELLORE
TIRUVALLUR
SALEM
MADURAI
123
120
108
105
103
102
82
13.
14.
15.
16.
17.
18.
KARUR
NILGIRIS
COIMBATORE
ERODE
THANJAVUR
KANCHEEPURAM
101
101
101
101
101
100
Banks have to focus on improving the credit flow to Other Priority Sector in
the district of Tuticorin (28%) .
Banks in other districts have to increase their disbursement under OPS
category. Banks must improve advances to small business entrepreneurs,
professionals and self-employed, rural housing etc.
The details of progress made under ACP 2009-10 (District-wise, Bank-wise &
Activity-wise) upto the quarter ended June 2009 have also been furnished in
the Annexure for information.
B. ANNUAL CREDIT PLAN 2009-10 (ACP 2009-10)
The district-wise allocation under ACP for 2009-10 was placed in the 118th
SLBC Meeting held on 26.06.2009.
Bank-wise and Activity-wise Plan under ACP 2009-10 could not be placed for
want of District Code Number for the newly formed Tiruppur District.
Consequent on the allocation of the same, the Bank-wise/Activity-wise Plan
has since been compiled and furnished as annexure for information of the
forum.
83
84
85
86
87
88
89
90
91
REVIEW NOTE: 5
SLRM 2009
SWARNA JAYANTI SHAHARI ROZGAR YOJANA (SJSRY) -2009-10
Guidelines of SJSRY have been revised with effect from 01.04.2009. The
same has been circulated to Member Banks vide SLBC letter dated
18.09.2009 and the same has been deliberated in 119th SLBC Meeting held on
25.09.2009.
Annual Action Plan for the current year 2009-10 received from Municipal
Administration Department is furnished in the Annexure.
Municipal Administration Department and Member Banks are requested to
take all possible efforts for 100% utilization of the subsidy and ensure
successful implementation of the scheme.
92
93
94
95
96
97
98
99
REVIEW NOTE: 6
SLRM 2009
Prime Minister’s Employment Generation Programme (PMEGP)
For the Programme year 2009-10 against the target of 3517 projects margin
money assistance of Rs.42.20 Crores, Banks have sanctioned 2082 loans
involving margin money of RS.43.29 Crores. (Details furnished in e annexure)
Member Banks are requested to take note of the suggestions & consensus
emerged from the Group Discussion on the implementation of the Scheme
held on 25.11.2009 and ensure expeditious disbursement of loans and
claiming of margin money immediately on first disbursement.
KVIC, Mumbai vide their Circular dated 20.11.2009 have advised as under:Quote:
After detailed discussion, it was decided that revision of targets from one
State to other should not be encouraged as these are decided based upon
certain objective criteria. Looking to the practical field problem, internal
redistribution of target within the State can be taken up with the
agreement between implementing agencies and Secretary Industries of
respective States can send their recommendation to CEO, KVIC.
Expressing concern over the slow progress of the Scheme, it was also
decided that the implementing agencies (KVIC, DICs and State KVIBs)
should make serious efforts to achieve the target of 2009-10 along with the
carried over target of 2008-09 and progress for the same is to be reported
during 2009-10.
To ensure the benefit of the scheme reach to beneficiaries, implementing
agencies may impress upon the banks to play a more pro active role and
extend liberal and faster credit flow to the micro enterprises so as to
create a strong entrepreneurial base in the country.
Unquote:
Member Banks & Nodal Agencies are requested to take note the above
direction of KVIC, Mumbai and ensure successful implementation of the
scheme.
100
101
REVIEW NOTE: 7
SLRM 2009
SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY 2009-10)
During the year 2009-10, Banks in Tamilnadu have disbursed credit to the
extent of Rs.232.09 crores under SGSY against the credit disbursement
target of Rs.212.19 crores thereby achieving 109.38% of the target in 7
months from April to October 2009.
Performance of the Banking System in Tamilnadu under SGSY 2009-10 as on 31.10.2009
Amount in Rs. Lacs
OCTOBER 2009
S.No.
PARTICULARS
ECONOMIC ACTIVITY
REVOLVING
TOTAL
FUND
SHG
INDIVIDUALS
TOTAL
1
2
3
4
5
6
7
No. of Loans granted
Swarozgaris
Amount Disbursed
2522
34057
7699.30
4821
4821
304.75
7343
38878
8004.05
30410
37753
468987
507865
15205.00 23209.05
% of Credit disbursment to Annual Target
Subsidy Utilised
Credit Subsidy Ratio
Coverage Under:SC/ST
% (Norm 50%)
WOMEN
% (Norm 40%)
DISABLED
% (Norm 3%)
109.38%
2506.45
3.07
122.08
2.50
2628.53
3.05
17791
52.24
33082
97.14
886
2.60
2041
42.34
2728
56.59
1908
39.58
19832
51.01
35810
92.11
2794
7.19
3041.00
5.00
5669.53
4.09
I.
Performance under Economic Activity:
a.
For the period ended 31.10.2009, Banks have extended credit
assistance to the tune of Rs.7699.30 lacs along with subsidy
assistance of Rs.2506.45 Lacs for taking up economic activities to
2522 Self Help groups benefiting 34057 swarozgaris.
b.
During this period, Rs.304.75 lacs with a subsidy of Rs.122.08 Lacs
has been granted to 4821 individual swarozgaris to take up economic
activities.
102
II.
Performance under Revolving Fund:
Revolving Fund assistance of Rs.15205.00 lacs has been extended to 30410
Self Help Groups with a subsidy assistance of Rs.3041.00 Lacs.
III. Achievement under Sub-sector Norms:
The Sub-sector norms for Economic Activity Viz. 50% for SC/ST, 40% for
Women and 3% for Disabled have surpassed by achieving 51.01%, 92.11% and
7.19% respectively.
DETAILS OF ECONOMIC ASSISTANCE (AGENCY WISE) AND
REVOLVING FUND DISBURSED UNDER SGSY 2009-10 AS AT
THE END OF OCTOBER 2009
Amount in Rs. Lacs
AGENCY
CREDIT DISBURSED
Economic Activity
Commercial Banks
RRBs
Co-operative Banks
Other Banks
TOTAL CREDIT UNDER ECONOMIC ACTIVITY
CREDIT UNDER REVOLVING FUND
TOTAL CREDIT TO SGSY
5748.49
625.84
1442.63
187.09
8004.05
15205.00
23209.05
Subsidy Credit Ratio:
Banks in Tamil Nadu have achieved a Subsidy Credit Ratio of 1 :4.09 and
surpassed the stipulated subsidy credit ratio of 1:3 during the first 7
months period ended October 2009. Member Banks and TNCDW are
requested to carry forward the same during the rest of the financial year.
(Amount Rs. in Lacs)
103
S.No
DISTRICT / AGENCYWISE CREDIT DISBURSED UPTO THE MONTH OF OCTOBER 2009
District
Revised
Revolving
Credit Disbursed for Economic Activity
Total
Target
Fund
Credit
Com.Bks Co-op Bks
RRBs
Others
1 Ariyalur
359.29
265.00
92.70
0.00
0.00
0.00
357.70
2 Coimbatore
973.65
528.00
105.40
32.50
15.90
0.00
681.80
3 Cuddalore
884.55
1000.00
33.00
0.00
0.00
0.00
1033.00
4 Dharmapuri
551.47
600.00
149.63
12.18
56.00
0.00
817.80
5 Dindigul
669.01
226.00
133.88
126.75
0.00
45.00
531.63
6 Erode
770.36
262.50
165.64
151.05
0.00
0.00
579.19
7 Kancheepuram
975.74
662.00
304.00
24.00
0.00
0.00
990.00
8 Kanniyakumari
467.23
158.00
71.23
18.70
31.80
0.00
279.73
9 Karur
413.43
310.50
73.30
15.80
0.00
33.75
433.35
10 Krishnagiri
601.19
211.50
359.21
10.12
10.12
0.00
590.95
11 Madurai
768.82
420.00
371.85
65.03
60.67
0.00
917.55
12 Nagapattinam
568.42
659.50
91.50
4.65
0.00
0.00
755.65
13 Namakkal
557.91
551.00
37.10
26.20
0.00
0.00
614.30
14 Nilgiris
168.33
79.00
119.00
0.00
0.00
0.00
198.00
15 Perambalur
211.04
150.00
31.95
6.00
0.00
0.00
187.95
16 Pudukkottai
546.99
282.00
101.98
54.03
8.97
0.00
446.98
17 Ramanathapuram
499.85
391.50
36.35
23.50
18.00
0.00
469.35
18 Salem
990.62
700.00
231.50
88.20
0.00
0.00
1019.70
19 Sivagangai
493.50
288.50
170.34
9.22
9.22
0.00
477.28
20 Thanjavur
869.32
372.00
557.00
127.00
0.00
0.00
1056.00
21 Theni
398.26
341.00
156.45
24.45
0.00
0.00
521.90
22 Tirunelveli
939.28
933.50
87.59
16.56
62.24
25.14
1125.03
23 Tiruvallur
807.10
640.50
140.85
7.50
0.00
0.00
788.85
24 Tiruvannamalai
938.93
532.50
197.60
129.60
38.00
83.20
980.90
25 Tiruvarur
600.97
862.50
53.09
8.39
24.78
0.00
948.75
26 Thoothukudi
707.45
678.00
217.36
57.83
23.24
0.00
976.43
27 Tiruchirapalli
649.97
315.50
393.00
60.00
0.00
0.00
768.50
28 Vellore
1483.10
1338.00
471.45
0.00
0.00
0.00
1809.45
29 Villupuram
1748.26
1217.00
524.34
279.35
79.75
0.00
2100.44
604.94
189.50
211.72
54.28
177.41
0.00
632.90
40.00
58.50
9.75
9.75
0.00
118.00
15205.00
5748.49
1442.63
625.84
187.09
23209.05
30 Virudunagar
31 Tirupur
TOTAL
REVIEW NOTE:
21218.98
8
SLRM 2009
104
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%.
As the recovery under the loans granted to Women Self Help Groups is
encouraging, Banks are requested to maximise their credit flow to women by
involving NGOs / SHGs besides Tamilnadu Corporation for Development of
Women Ltd., (TNCDW Ltd.,).
The details of performance of the Banks in Tamilnadu under credit flow to
women entrepreneurs as of September 2009 are furnished below:
(Amount in Rs. Crores)
S.No
PROGRAMME
1
SGSY
2
PMRY */PMEGP
3
DRI
4
Micro & Small
Enterprises
5
OTHERS
TOTAL
Disbursement made
during the Quarter
Accounts
Amount
Outstanding position as
of September 2009
Accounts
Amount
7130
112.08
98706
533.27
33
0.32
29973
98.05
2508
8.40
18294
28.95
2206
136.31
59568
1085.19
323438
3057.96
2590955
12905.73
335315
3315.07
2797496
14651.19
* PMRY was discontinued w.e.f 01.04.2008
At the level of Rs.14651.19 crores, advances to women constitute 5.16% of
total Bank credit as against the national norm of 5%.
REVIEW NOTE:
9
SLRM: 2009
105
SELF HELP GROUPS (SHGs)
The Self-Help Group is an effective tool for delivering credit to rural poor
for their economic empowerment and social development.
As approved in the 118th SLBC held on 25.06.2009, the SHG credit linkage
target for 2009-10 is Rs.2400 crores including the Non Mahalir Thittam
Groups. In the current year up to 31.10.2009 disbursement to SHGs
amounted to Rs.1074.53 Crores against the annual target of Rs.2400 Crores.
Reserve Bank of India & Government of India are closely monitoring the
observance of one day in a week as "SHG Banking Day". Hence, Member
Banks are requested to ensure that "SHG Banking Day" is being observed by
their Bank Branches in Tamil Nadu.
The District wise performance under Mathi and NonMathi groups in the
current year as on 31.10.2009 is furnished in the Annexure I.
The nodal agency viz., TNCDW Ltd is requested to furnish the details like
number of SHGs formed, graded and credit linked cumulatively and also
during the current year.
Annexure I
106
SHGs-Bank Credit linkage-District wise Performance – 2009-10
As on 31.10.2009
Sl.
No.
District
Mahalir Thittam
Target
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Ariyalur
Chennai
Coimbatore
Cuddalore
Dharmapuri
Dindigul
Erode
Kancheepuram
Kanyakumari
Karur
Krishnagiri
Madurai
Nagapattinam
Namakkal
Nilgiris
Perambalur
Pudukottai
Ramnad
Salem
Sivagangai
Thanjavur
Theni
Thirunelveli
Thiruvallur
Thiruvannamalai
Thiruvarur
Thoothukudi
Tiruppur
Trichy
Vellore
Villupuram
Virudhunagar
Total
REVIEW NOTE:
Achi.
(Rs.in Crores)
Non - Mahalir
Total
Thittam
Target
Achi.
Target
Achi.
32.00
103.00
50.00
65.00
85.00
44.00
57.00
70.00
75.00
34.00
35.00
58.00
45.00
45.00
26.00
14.00
58.00
32.00
65.00
45.00
58.00
50.00
90.00
58.00
60.00
39.00
45.00
40.00
52.00
75.00
75.00
48.00
2.00
39.75
14.89
29.58
56.58
6.38
17.31
31.96
29.21
13.53
10.47
26.01
23.50
21.02
6.78
5.60
15.70
6.54
20.99
12.64
9.17
19.81
46.69
23.80
37.33
8.63
17.23
10.63
25.21
26.77
40.56
15.90
7.00
91.00
13.00
22.00
55.00
6.00
13.00
17.00
24.00
3.00
85.00
22.00
16.00
6.00
6.00
1.00
39.00
19.00
13.00
6.00
12.00
13.00
29.00
23.00
23.00
13.00
9.00
14.00
13.00
14.00
26.00
19.00
1728.00
672.17
672.00
10
107
1.01
20.38
4.25
4.73
28.46
9.10
6.01
14.10
18.85
3.53
121.00
14.86
3.52
5.11
5.91
0.47
11.16
5.08
23.05
6.79
4.95
8.28
19.22
8.66
9.73
3.89
6.55
1.15
9.79
4.85
9.99
7.93
39.00
194.00
63.00
87.00
140.00
50.00
70.00
87.00
99.00
37.00
120.00
80.00
61.00
51.00
32.00
15.00
97.00
51.00
78.00
51.00
70.00
63.00
119.00
81.00
83.00
52.00
54.00
54.00
65.00
89.00
101.00
67.00
3.01
60.13
19.14
34.31
85.04
15.48
23.32
46.06
48.06
17.06
131.47
40.87
27.02
26.13
12.69
6.07
26.86
11.62
44.04
19.43
14.12
28.09
65.91
32.46
47.06
12.52
23.78
11.78
35.00
31.62
50.55
23.83
402.36 2400.00 1074.53
SLRM: 2009
CREDIT FLOW TO MINORITY COMMUNITIES
The progress made by the banks in Tamil Nadu under Credit Flow to Minority
Communities as of September 2009 is furnished below:
Sl.
No.
1.
2.
3.
4.
5.
Amount in Rs. Crores
Outstanding Position as of
September 2009
Account
Amount
734631
4703.66
933504
5778.52
1022
77.66
214
58.46
10760
40.98
1680131
10659.28
Name of the
Community
Muslim
Christian
Sikh
Zorastrian
Neo Buddist
Total
Ministry of Finance, Govt.of India has informed that Public Sector Banks
have given a roadmap to step up lending to Minority Communities to 15% of
Priority Sector Advances by 31st March 2010. On the basis of the targets
advised by PSBs State wise target has been fixed and in respect of
Tamilnadu State the target for lending to Minorities is fixed at Rs.11892.93
Crores (constituting 12.63% of PSA) for the year 2009-10.
In Tamil Nadu, Kanyakumari District has been identified as a Minority
Concentration District and Member Banks are requested to improve credit
flow to the clusters of Micro, Small and Medium entrepreneurs to the
Minority Communities residing in the district.
Member Banks are requested to submit the details of credit flow to
Minority Communities to SLBC on a quarterly basis.
REVIEW NOTE: 11
SLRM:2009
108
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 attain a share of
3% of their incremental deposits of the previous year under housing finance.
Accordingly, it is estimated that around Rs.1140.30 crores of credit should
be extended to Housing Sector from banking system in Tamil Nadu during
the year 2009 – 2010.
As per the feed- back received from member banks, disbursement to the
tune of Rs. 527.27 crores has been made during the quarter ended
September 2009.
(Rs. in crores)
Disbursement made during the
Quarter ended June 2009
346.42
Disbursement made during the
Quarter ended September 2009.
527.27
Total disbursement made during the
Current year i.e., April 2009 to September 2009
873.69
The Bank wise disbursement details are furnished in the Annexure. Other
Member Banks are requested to furnish the data to SLBC in time.
109
Annexure
Bank Finance under Housing Scheme – Direct Housing Finance
Progress Report during the quarter ended September 2009
Sl.No.
(Rs.in Lacs)
Credit Disbursement
Name of the Bank
1
Allahabad Bank
2
Andhra Bank
3
Bank of Baroda
4
Bank of Maharashtra
5
Canara Bank
3724.58
6
City Union Bank Ltd.
3535.45
7
Corporation Bank
1883.82
8
Dena Bank
9
Federal Bank Ltd.,
10
ICICI Bank Ltd.
11
Indian Bank
9318.00
12
Indian Overseas Bank
8950.00
13
Ing Vysya Bank Ltd.
14
Jammu & Kashmir Bank Ltd.
15
Karnataka Bank Ltd.,
134.56
16
Lakshmi Vilas Bank Ltd.
586.87
17
Oriental Bank of Commerce
647.78
18
Pandyan Grama Bank
189.80
19
Pallavan Grama Bank
187.06
20
Punjab National Bank
1436.91
21
Punjab & Sind Bank
22
State Bank of Mysore
23
State Bank of Patiala
24
Tamilnadu Mercantile Bank
3749.65
25
UCO Bank
2422.00
26
Union Bank of India
5004.70
27
United Bank of India
69.63
28
Vijaya Bank
611.25
15.00
709.90
2374.60
272.00
138.00
3207.00
790.00
623.55
1.25
27.81
1986.00
130.23
Total Direct Housing
52727.40
110
REVIEW NOTE: 11(A)
SLRM:2009
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, 1414 loans amounting
to Rs.3903.74 lacs were disbursed under Golden Jubilee Rural Housing
Finance Scheme during the Quarter ended September 2009 as shown below:
Amount in Rs. Lacs
Particulars
Scheduled
Castes
No.
Amt.
Total Loans
sanctioned during 309 611.78
the Quarter
Total Loans
disbursed during 256 506.78
the Quarter
Scheduled
Tribes
Others
No.
Amt.
No.
27
39.15
26
38.15
Amt.
Total
No.
Amt.
1426 3880.76
1762
4531.69
1132
1414
3903.74
3358.18
Member Banks are requested to furnish the details of housing loans under
Golden Jubilee Rural Housing Finance Scheme on quarterly basis to SLBC.
111
REVIEW NOTE: 12
SLRM: 2009
KISAN CREDIT CARD SCHEME (KCC)
As per the progress report submitted by member Banks, 651117 KCCs to the
tune of Rs.2283.08 Crores have been issued during the period April 2009 to
September 2009.
SLBC has requested DCC Convenors vide letter dated 25.09.2009 to
formulate an action plan and also launch campaigns to provide KCCs to all
eligible and willing farmers on a mission mode in coordination with State
Agricultural Department.
Hence Member Banks are requested to advise their Branches in Tamil Nadu
to actively participate in the campaign and ensure that all the eligible and
willing farmers are provided with KCCs at the earliest.
SLBC had requested the Lead District Managers to submit a Quarterly
Progress Report on KCCs containing details like KCCs as at beginning of the
quarter, issued during the quarter, position at the end of the quarter and
cumulative position since inception of the scheme. The data is required in
respect of both crop loans and term loans. Member Banks are therefore
requested to arrange to furnish the details on the progress made under KCC
to the LDMs concerned to enable consolidation of data at the district level
and for smooth flow of MIS to NABARD and SLBC.
Member Banks are requested to furnish the data in the revised format to
SLBC on time to enable timely review.
112
PERFORMANCE OF BANKS UNDER KISAN CREDIT CARD SCHEME
FROM APRIL 2009 TO SEPTEMBER 2009
Sl.
Name of the Bank
No.
1
Allahabad Bank
2
(Amount in Rs.Lacs)
Term Loans
Total
No
Amount
No
Amount
Crop Loans
No
Amount
70
51
0
0
70
51
Andhra Bank
396
193
0
0
396
193
3
AXIS Bank
397
1198
350
1290
747
2488
4
Bank of Baroda
1115
785
345
143
1460
928
5
Bank of India
18967
5798
1794
232
20761
6030
6
Canara Bank
26967
11592
1285
1155
28252
12747
7
Central Bank of India
493
116
91
19
584
135
8
City Union Bank Ltd.
54
39
0
0
54
39
9
Corporation Bank
2623
900
44
884
2667
1784
10
Dena Bank
13
10
0
0
13
10
11
Federal Bank Ltd.
6
33
0
0
6
33
12
HDFC Ltd.
25
71
1335
2429
1360
2500
13
Indian Bank
30296
16003
603
784
30899
16787
14
Indian Overseas Bank
71306
34492
5190
2844
76496
37336
15
ING Vysya Bank Ltd.
15
9
3
1
18
10
16
Karur Vysya Bank Ltd.
186
47
3
1
189
48
17
Pallavan Grama Bank
6473
2420
1047
2278
7520
4698
18
Pandyan Grama Bank
27957
1982
0
0
27957
1982
19
Punjab National Bank
1306
1243
0
0
1306
1243
20
South Indian Bank Ltd.
22
12
1
1
23
13
21
State Bank of India
148045
70103
0
0 148045
70103
22
State Bank of Mysore
644
354
0
0
644
354
110
42
170
58
280
100
268783
53747
4710
1045 273493
54792
6130
4015
4808
2897
10938
6912
14787
6030
2024
844
16811
6874
124
108
0
0
124
108
16905 651117
228308
23
24
Tamilnadu Mercantile
Bank Ltd.
Tamilnadu State Apex
Co-op.Bank Ltd.
25
UCO Bank
26
Union Bank of India
27
Vijaya Bank
TOTAL
627314
113
211403 23803
REVIEW NOTE: 13
SLRM 2009
Self Employment Scheme for Rehabilitation of Manual Scavengers
(SRMS)
As directed by Ministry of Finance, Government of India, SLBC had advised
Member Banks to dispose the pending loan applications immediately and in
any case by 31.12.2009.
As per the information furnished by Tamil Nadu Adi Dravidar Housing &
Development Corporation Ltd. (TAHDCO), 156 applications are pending with
Banks as on 9th December, 2009.
Bank-wise / District-wise details of pending applications are furnished in the
Annexure.
Member Banks are requested to co-ordinate with TAHDCO officials and
Lead District Managers concerned to rehabilitate all eligible scavengers and
their dependants and ensure immediate disposal of pending loan applications
under SRMS.
LOAN APPLICATIONS PENDING WITH BANKS / DISTRICTS UNDER
SRMS AS ON 09.12.2009
S.No Name of the Bank
DISTRICTS
1
Andhra Bank
2
Bank of Baroda
3
Bank of India
1
12
4
Canara Bank
3
3
5
C.B.I
6
Corporation Bank
7
Indian Bank
8
I.O.B.
9
ING Vysya Bank
10
P.G.B (Pandyan)
11
P.N.B
1
12
S.B.I
1
13
S.B.T
14
UCO Bank
TOTAL
T
Chennai Coimbatore Madurai Ramnad Thanjavur Virudhunagar
1
1
9
9
13
4
4
8
22
19
4
23
5
5
1
8
22
1
9
4
6
33
1
1
1
25
1
4
1
1
2
2
1
11
1
1
36
26
1
29
10
114
17
25
39
156
115