State Level Bankers’ Committee, Tamil Nadu
Convenor: Indian Overseas Bank
Minutes of the 137th Meeting of SLBC
Held on 21.03.2014
137th meeting of SLBC, Tamil Nadu was held at Chennai on 21st March, 2014. List
of participants is furnished as an annexure:
Welcome Address:
Shri.Atul Agarwal, Executive Director, Indian Overseas Bank, welcomed the
participants to the 137th meeting of SLBC, Tamil Nadu. He has highlighted the
various special SLBC meetings held after the 136th meeting of SLBC held on
23.12.2013. He has advised the Lead Banks to extend necessary support to
SLBC to carry out the proposed study / survey on the functioning of Business
Correspondents engaged by various banks in Tamil Nadu.
Inaugural Address:
In his inaugural address, Shri.M.Narendra, Chairman & Managing Director,
Indian Overseas Bank and Chairman, SLBC, Tamil Nadu welcomed the
participants and informed the forum that the performance upto the third
quarter of the year 2013-14 is to be reviewed in the 137th meeting of SLBC.
Highlight of performance of banks in Tamil Nadu during 2013-14:
Chairman, SLBC highlighted the achievements of the banking system in Tamil
Nadu. He has expressed his happiness that the State’s CD ratio continues to be
above 100%. He has also informed the forum that Deposits have increased by
16.38 percent and Credit increased by 14.93 percent on year on year basis.
Further he informed that the priority credit stood at 42.64 percent,
Agricultural advances stood at 18.90 percent and Advances to weaker sections
stood at 12.09 percent as of December, 2013 which are above the targeted
level.
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He also expressed his happiness on the achievement under various parameters
under ACP and congratulated the bankers for such commendable performance.
He listed the achievements under ACP upto the quarter ended December,2013.
Chairman, SLBC informed the forum that banks have achieved 101 percent of
target under ACP. He further informed that achievement under Farm Sector
was 102%, 98% under MSE, 105%, 93% and 111% under Education, Housing and
others respectively.
Chairman SLBC was very happy to inform the forum that banks in Tamil Nadu
have covered under Financial Inclusion, all the allotted 7816 villages with
population less than 2000. With this our State has achieved 100% coverage
of Financial Inclusion in the State.
He has requested the member banks to widen the domain of inclusion by opening
no-frill accounts and also provide affordable credit to holders of these no-frill
accounts, so that objective of the financial inclusion is fulfilled.
1. Agriculture:
Chairman, SLBC has informed the forum that the State has achieved
Rs.50594.42 crores up to December, 2013 against the credit plan of
Rs.65481.25 crores under agriculture for the year 2013-14. He has also
informed that during Hon’ble Union Finance Minister’s meeting with Heads of
Banks held on 05.03.2014 the following action points emerged:
a) Government has earmarked Rs.8.00 lakh crores credit flow to Agriculture
in the budget for 2014-15.
b) While lending to short term agricultural loans is good, the share of
investment credit is comparatively low, which need to be stepped up.
c) Capital formation will take place only if term loans are financed.
d) Activities like drip irrigation, solar power units are to be given priority.
e) Joint Liability Groups are to be promoted for the purpose of investment
credit like dairy, poultry, farm machinery, minor irrigation etc.
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Chairman, SLBC informed the forum that NABARD in their recently released
State Focus Paper for Tamil Nadu has projected an outlay of Rs.78789 crores
under Agriculture for 2014-15. He has requested the member banks to focus on
investment credit.
2. Educational Loans:
Chairman, SLBC informed the forum that the banks in the State have achieved
90% under amount and 85% in no. of accounts till December, 2013.
He further advised that the detailed guidelines are expected on the recently
announced Government of India’s moratorium period for educational loans
availed up to 31.03.2009 and outstanding as of December, 2013. This will assist
the banks to reduce their NPA and also will help the students to repay their
dues without much burden.
3. Self Help Groups(SHGs):
Chairman, SLBC informed the forum that as of December, 2013 banks have
achieved only 57% of the credit linkage target of Rs.6000 crores for 2013-14.
The following are the main reasons for low credit dispensation:
a) Sanctioning amount lower than recommended.
b) Additional dosages are not being sanctioned.
c) Under reporting the sanctioned / disbursed details whenever officials
from Government call on branches.
d) Part / stage release in cash credit accounts are not reported.
e) Delay in processing / sanctioning.
He requested the member banks to double their efforts and instruct their
branches to sanction all the pending applications immediately and achieve 100%
before March,2014.
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4. Financial Literacy and Credit Counselling Centres(FLCCC):
Chairman, SLBC informed the forum that SLBC had printed Financial Literacy
posters and circulated to all the banks/ RSETIs/FLCCCs. Now, SLBC estimated
a requirement of 6400 Financial Literacy Guides and 6.96 lac Financial Literacy
Diaries to be printed and circulated in the State. He also added that NABARD
has given the necessary in principle approval for reimbursement of cost of
printing and SLBC has already started the process.
Chairman, SLBC appealed to the State Government to address the following
issues:
1. Enumeration of SHG in the State and their registration with TNCDW.
2. Extension of Revenue Recovery Act to commercial banks for recovery of
chronic NPAs.
3. Village wise enumeration of farmers and providing the list to banks.
4. Digitalistion of land records and registration of online charge and
integration of State Registry with Central Registry set up under
SARFAESI, Act 2002.
Chairman, SLBC acknowledged the support received from RBI, Government of
India, Government of Tamil Nadu & NABARD.
Keynote Address:
ShriT.Udhayachandran, I.A.S., Secretary (Expenditure), Government of Tamil
Nadu observed the following in his keynote address:
1. The role played by all banks in achieving various targets and the amount
of credit flow is commendable.
2. Even though the performance is commendable, there are certain areas
which are to be addressed.
3. Though there is an improvement in absolute terms in the performance
over December 2012, there is a drop in percentage terms in certain
parameters.
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4. There is a slight decrease in CD ratio when compared to December, 2012
level.
5. There is a decrease in Micro Credit disbursement when compared to last
year. However there is a slight increase in weaker section advances.
6. The NPA is comparatively high in education and MSE sectors. While this
could be attributed to the general slowdown in the sectors, the reason
for higher level of NPA under Micro Credit is a matter of concern.
7. Government of Tamil Nadu has launched new schemes like NEEDS &
UYEGP. The data indicates that the performance under these schemes is
not satisfactory.
8. It is quite interesting to note that a study is going to be conducted by
SLBC to analyse the functioning of banking correspondents. It is a
welcome study. Economic & Political weekly recently published a report on
a similar study conducted at Andhra Pradesh.
9. During the study factors like
a) Qualification of the Business Correspondents
b) Commission paid by different banks to BCs
c) Ceiling fixed for BCs to operate by different banks
d) Radius of operation of each BC
e) No. of transactions done by BCs in a month
f) Feedback from the customers, are to be included.
Special Address:
Shri.Anandrao Vishnu Patil, Director, Ministry of Finance, Government of India
in his special address, appreciated the performance of banks, LDMs, controlling
offices for achieving most of the financial targets. He also appreciated that all
the identified villages under Financial Inclusion are covered by Banks in Tamil
Nadu. Director, DFS was happy to note that SLBC is conducting a study / survey
to assess the functioning of Business Correspondents in the State. He has
advised SLBC to include the points suggested by Secretary (Expenditure) in the
survey format.
Director, DFS observed that though there is an increase in the quantum of
loans disbursed under Agriculture and other sectors, there is a slight drop in
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percentage terms. Government of India has planned a credit flow of Rs.8.00
crores during 2014-15 for agricultural loans. Though there is a significant
increase in the short term loans there is a decline under investment credit. This
needs to be addressed immediately.
He has advised the banks to guard against double reporting of data. He
appreciated that the weaker section advances are above the national norm of
10%. However he has advised the banks to take care to achieve the targets in
all the backward / minority concentrated districts to avoid regional imbalances.
Director, DFS expressed his happiness about the establishment of RSETIs and
FLCCCs by 4 Lead Banks in all the districts in their lead districts in the State.
He advised that RBI- Financial Literacy materials like posters, guides and
diaries printed and circulated by SLBC should be used effectively by all rural
branches / FLCCCs in conducting Financial Literacy Camps.
He also advised the banks/LDMs to review the performance of Business
Correspondents periodically and convene meetings at district level or Zonal level
regularly. He appreciated the credit flow to women beneficiaries which is above
the national norms. He further advised the Department of Agriculture / AIC to
organise awareness camps on crop insurance in the districts.
Director, DFS observed that credit flow to Micro sector is only 47% against
the national norm of 60%. Performance under PMEGP is also not up to the mark
and it should be addressed immediately by the member banks and all the
pending applications are to be processed immediately.
He also advised that NPA figures under MSE, Education and Micro Credit are
causing concern. He has requested that, help and co-operation of State
Government to be extended to banks in recovering NPAs.
Dr.J.Sadakkadulla, Regional Director, Reserve Bank of India, Chennai mentioned
the following in his special address:
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1. It is very heartening to note that Government of India and Government
of Tamil Nadu are taking special interest in the SLBC matters and
rendering all support to banks.
2. Micro Insurance schemes should be taken to the people. It is a priority
area and the Insurance Companies should take initiative towards this.
3. RBI will be calling shortly the 4 lead Banks along with Department of
Rural Development for a meeting on effective utilisation of Business
Correspondents.
4. RBI in their circular dated 31.01.2014 emphasised the need for
continuous three phased approach regarding Financial Literacy campaigns.
5. The LDOs from RBI will be participating in such meetings. There will be a
follow up meeting after a fortnight and the third and final phase will be
held after 2 months.
6. RBI issued a circular on 02.12.2013 on the revised General Purpose Credit
card. It does not prevent bank from issuing any Credit Card to a person
to whom General Purpose Credit Card has been issued already.
7. At present the sub targets under DRI, Women in weaker sections &
minorities are all included in the overall target for Weaker Section. Banks
should ensure that the above category beneficiaries are adequately
supported.
8. Minutes of the previous meeting of SLBC should be a part of the next
agenda.
The Regional Director, RBI appreciated the performance by banks in achieving
various targets.
After the addresses of the dignitaries, the agenda was taken up for discussion
by Shri.S.Balachander, General Manager, IOB and convenor, SLBC, Tamil Nadu.
Convenor, SLBC advised the forum about the action taken on the action points
of 136th meeting, held on 23.12.2013.
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Action Taken Report for the 136th meeting of SLBC
1. Scheme for Rehabilitation of Manual Scavengers (SRMS):
Convenor, SLBC informed the forum that the following banks are yet to submit
the joint verification report despite repeated reminders.
1. State Bank of India, 2. State Bank of Mysore, 3. State Bank of Travancore ,
4. Bank of India, 5. Canara Bank, 6. Corporation Bank, 7. Central Bank of India,
8. Punjab National Bank, 9. Syndicate Bank, 10. Union Bank of India, 11. Vijaya
Bank, 12. Catholic Syrian Bank, 13.ICICI Bank, 14.South Indian Bank, 15.
Tamilnad Mercantile Bank, 16.Tamil Nadu State Apex Co-op Bank
He requested the above banks to submit their joint verification report before
15.04.2014 to SLBC for onward submission to Govt. of India.
Action: Banks
2. Performance of Banks under Direct Linkage to SHGs – Inclusion of Cash
Credit figures in the achievement data
Convenor, SLBC requested the banks to report the SHGs disbursement data
after inclusion of details of disbursements through Cash Credit and send the
cumulative disbursement (both term loan and cash credit) data from 01.04.2013
on monthly basis to TNCDW/NABARD.
Action: Banks
3. Coverage of all villages with population below 2000 before 31.01.2014.
Convenor, SLBC informed the forum that all the 7816 villages with population
<2000
have
been
covered
by
the
member
banks
through
Business
Correspondents, Branch model, Satellite branches and Mobile van model. He
conveyed his appreciation to the member banks for 100% coverage of villages
under Financial Inclusion.
He requested the member banks that a minimum of 5% of covered FI villages
(each bank) through BCs need to be converted into brick and mortar branches.
Action: Banks
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4. Collection of deposits by “Pengal Palnokku Kootamaippu” from Self Help
Groups
LDM, Salem has submitted a report dated 14.03.2014 wherein it is mentioned
that the PPK is registered as a Society under Tamil Nadu Societies Registration
Act, 1975. The LDM is of the opinion that the “savings” collected by PPK from
the members of SHGs amount to “deposits” only.
SLBC has forwarded a copy of the report to RBI for their necessary action in
this matter. Secretary (Expenditure) advised TNCDW to take up with the
District Collector.
5. Awareness campaign on crop insurance schemes to be conducted among
the farmers in more number of districts in addition to the 6 districts
already identified by Dept. of Agriculture, Govt. of Tamil Nadu:
Convenor, SLBC once again requested the Department of Agriculture and AIC to
arrange for the awareness campaigns in all the districts and to inform the
schedule in advance to SLBC for sending the information to Banks and LDMs for
active participation.
Action: Dept. of Agriculture / AIC
AGENDA No: 1
The forum confirmed the minutes of the 136th meeting of the State Level
Banker’s Committee held on 23.12.2013.
AGENDA No: 2
New Issues
1. Department of Fisheries, Government of Tamil Nadu’s Scheme for
financing Tuna Long Liners
Secretary (Expenditure), Govt. of Tamil Nadu informed that State Government
had recently launched a scheme for Tuna liners which is a very important and
ambitious scheme to assist the sensitive sector of Fishermen community.
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Further, he informed that the State Govt. looks at taking the entire fishermen
community to the next level. With that particular aim, this scheme has been
conceptualized and launched. He requested the banks to support the scheme and
actively involve implementing the scheme.
Director, Dept. of Fisheries, Government of Tamil Nadu has informed the forum
that Tamil Nadu is having 1776 km coastal line consisting 13 marine districts and
906 villages. Further, he informed that due to the pressure in the inshore sea
water for harvesting the fishes, State Govt. decided to diversify the fishing
activity to off shore water i.e. deep sea fishing, and launched the scheme. He
also explained elaborately about the processing methods of tuna fish and the
potential available for tuna fishing, demand, marketing and importance of tuna.
He informed the forum that each Tuna liner costs Rs. 60.00 lacs, of which
State Govt. is providing a subsidy of 50 % i.e. Rs. 30 lacs. Further, he informed
that the Dept. of Fisheries has received 271 applications and it will be
processed and forwarded to the banks shortly. He requested the banks to
support the scheme actively.
Chairman of SLBC requested the Dept. of Fisheries to scrutinise the
applications with due diligence and fix the target to all banks and send the
applications to the banks early.
Director, Ministry of Finance, GOI informed the forum that the scheme is very
good for bank finance. He has also advised the banks to implement the scheme
actively.
The scheme was approved by the forum.
Action: Banks/Dept. of Fisheries
2. Equity Grant and Credit Guarantee Fund Scheme for Farmer Producer
Companies of Government of India
Convenor, SLBC informed the forum that the scheme of Equity Grant and Credit
Guarantee Fund Scheme for Farmer Producer Companies is like CGTMSE and it
will be very useful for banks to cover the risk. Further, he informed that SLBC
has already organized a special meeting wherein the officials from SFAC have
made a presentation on the scheme to the member banks. He requested the
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banks to percolate the scheme to the branches and popularize the scheme at
the gross root level.
CGM, NABARD, informed the forum that this scheme has been announced in the
Union Budget last year and NABARD also associates with SFAC to implement
the scheme. Further, she informed that Farmers Clubs are assisted by the
banks so long wherein NABARD is also helping to them and many Farmers Clubs
are now registered as a federation. She also informed that if these federations
are upgraded as farmer producer companies, banks can take an advantage to
finance to them as there is 85 % credit coverage is available.
CGM, NABARD informed the forum that they are initiating, identifying and
sponsoring the federations, if bank financial assistance given, it will help to
boost their investment credit. She also pointed out that SFAC also financing to
Farmers Producer Companies for preparation of Equity Grant Application and
Detailed Project Reports (DPR). She requested the banks to actively participate
to finance in the scheme.
Director, Dept. of Financial Services, GOI informed the forum that Secretary,
SFAC already written about the scheme to CMDs of all banks.
Action: Banks
3. Taking possession of securities under SARFAESI ACT 2002 through the
District Magistrates (District Collectors)
Convenor, SLBC requested the State Government to advise the District
Collectors for speedy disposal of the applications filed by the banks before
them under SARFAESI Act 2002 so that the banks can able to recover NPA
immediately.
Action: State Government
4. Rajiv Rinn Yojana (RRY)
Convenor, SLBC informed the forum that district-wise target for 2013-14 has
already been advised by SLBC to Lead District Managers and instructed the
LDMs to sub allot the target to banks in their districts. He requested the
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member banks to issue necessary guidelines to their branches and achieve the
allotted target.
Representative from NHB informed that the nodal agency for RRY scheme
implementation is Tamil Nadu Slum Clearance Board.
Representative from Municipal Administration Dept. informed the forum that
nodal agency for RRY scheme implementation for the year 2013-14 is National
Housing Board and Tamil Nadu Slum Clearance Board. Further, he informed that
the RRY target achieved by both NHB and Tamil Nadu Slum Clearance Boards
for 2013-14, since they have already collected applications and forwarded to
the banks.
He also informed that Tamil Nadu Slum Clearance Board in slums in urban areas
and Commissionerate, Municipal Administration in urban areas other than slums
are nodal agency for 2014-15 onwards.
Action: Banks/ LDMs/ NHB/ Tamil Nadu Slum
Clearance Board/ Municipal Administration
5. “Prohibition of Employment as Manual Scavengers and their Rehabilitation
Act, 2013” – Scheme for Rehabilitation of Manual Scavengers (SRMS)
General Manager, TAHDCO informed the forum that this scheme is re
introduced
by
the
Central
Government
and
the
Dept.
of
Municipal
Administration is in the process of survey. Further he informed the forum that
the rehabilitation activity will be undertaken by TAHDCO once the survey
completed.
Representative from Municipal Administration informed the forum that format
for survey is already finalized and survey will be completed soon after
completion of Lok Sabha election.
Action: TAHDCO/Municipal Administration
6. Standardised Financial Literacy Material Provided by Reserve Bank of
India
Convenor, SLBC informed the forum that Financial Literacy posters were
already printed by SLBC and circulated to the controlling office of the banks
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for onward distribution to their rural branches. Further, he informed that SLBC
is in the process of printing of 6400 copies of Financial literacy Guide and 6.96
lacs Financial Literacy Diary and they will be circulated to the banks shortly. He
requested the member banks to instruct their branches to conduct outdoor
financial literacy camps using the financial literacy materials.
He thanked NABARD for funding the whole process of printing of financial
literacy material.
Action: Banks/ SLBC
7. VIP references regarding opening of bank branches in the state of Tamil
Nadu
Convenor, SLBC informed that VIP reference is the matter of concern for SLBC
when there is no response from the member banks and Lead District Managers.
He requested the Banks and Lead District Managers to submit the updated
position on the branch opening to SLBC immediately.
Action: Banks/LDMs
8. Centrally Sponsored Schemes of Integrated Development of Small
Ruminants and Rabbits (IDSRR) – Delay in submission of claims to NABARD.
Convenor, SLBC requested the member banks to instruct their branches to
ensure timely submission of claims to NABARD.
Action: Banks
9. Pending applications of Scheduled Caste beneficiaries under various
Government sponsored schemes- Meeting with National Commission for
Scheduled Castes
Convenor, SLBC informed the forum that National Commission for SC has
conducted a series of meetings at the district level in which bank branches and
LDMs have participated in the meeting and National Commission for SC was
satisfied with the response given by the banks.
He requested the member banks to avoid any complaints from National
Commission for SC and also requested the banks to respond the letters of
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National Commission for SC immediately. He also requested the member banks
to issue suitable instruction to their branches.
Action: Banks
10. Study on the functioning of Business Correspondents engaged by banks
in Tamil Nadu by SLBC
Convenor, SLBC informed the forum that study of functioning of Business
Correspondents is an idea mooted by RBI. Further, he informed that General
Manager, RBI has taken very active role in the special meeting conducted by
SLBC with major four banks and analyzed the functioning of business
correspondents.
He requested the member banks, Lead District Managers to extend the
cooperation to SLBC for conducting a meaningful survey and makes the Tamil
Nadu project as a model project for the country.
General Manager, RBI requested the forum to fix the time frame for survey.
The forum decided that due to the yearend work for the banks, the survey may
be undertaken from 3rd week of April 2014 to June 2014.
Action: Banks/ LDMs
AGENDA No: 3
Review on Banking Developments in Tamil Nadu in Key Parameters as of
December 2013
The forum noted that year on year incremental deposits & credit growth was
16.38% and 14.93 % respectively over December 2012. The CD ratio has slightly
decreased from 121.79% as of December 2012 to 120.28 % as of December
2013. The share of agricultural advances was 18.90 % against the national norms
of 18%.
Chairman, SLBC advised the forum that percentage of CD ratio, priority sector
advances, Agricultural advances; Micro credit and DRI loans are low compare to
the previous year. He requested the member banks to improve their portfolio in
these sectors.
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Lead District Officer, RBI requested the forum to discuss as to why DRI
advances are not picking up. He also pointed out that district co-ordinators of
some Banks are not participating in the DCC/DLRC meeting regularly and their
co-operation with lead bank of the district is very poor.
Secretary (Expenditure) Govt. of Tamil Nadu informed that the central Govt.
have linked the DRI scheme for housing loan purpose under Indira Awas Yojana
(IAY) , and State Govt. has also came up with idea to link the DRI scheme for
construction of Chief Minister’s Solar powered Green house. He requested the
member banks to lend in this segment.
General Manager, RBI suggested that awareness campaign may be conducted by
line departments, District authorities and banks among the targeted group, so
that banks will lend more under DRI.
Forum noted that percentage of agricultural advances is very low in Coimbatore
i.e less than 18%. Secretary (Expenditure) Govt. of Tamil Nadu that this may be
due to the high industrial exposure when compared to agricultural advances out
of the total advances. CGM, NABARD pointed out that CD ratio in Theni,
Ariyalur and Dharamapuri Districts are high compared to Kancheepuram
district.
GM RBI informed the forum that this is mainly because of the fact that units
located in Kancheepuram District are financed by banks located in Chennai
District which is reported in Chennai District’s achievement.
Chairman, SLBC requested banks to report the disbursement details in respect
of Kancheepuram district correctly. Secretary (Expenditure) Govt. of Tamil
Nadu explained that CD ratio is less in Kancheepuram district as deposits are
more than credit.
Action: Banks
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AGENDA No: 4
REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN
2013 – 2014: (APRIL 2013 TO SEPTMBER 2013)
The forum took on record the final achievements under ACP 2013-14 up to
September 2013. The banks in Tamil Nadu have achieved 99% under Farm
Sector, 87 % under Non farm sector and 95 % under other priority sector.
AGENDA No: 5
REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN 2013-14
APRIL 2013 TO DECEMBER 2013
The forum took on record the achievements for the half year ended April 2013
to December 2013 under ACP 2013-14. The banks in Tamil Nadu have achieved
102 % under agriculture, 98 % under MSE sector, 105 % under education, 93 %
under housing, 111 % under other priority sector and 98 % under non priority
sector.
Director, Dept. of Financial Services, GOI advised the SLBC to discuss in the
next meeting about the banks, who have not achieved their ACP target, so that
such banks can be accelerated to achieve their allotted target.
Action: Banks/SLBC
AGENDA No: 6
Micro & Small Enterprises (MSE) sector
The Convenor, SLBC informed the forum that a sum of Rs. 14115.94 Crores & Rs.
15428.03 Crores was disbursed from April 2013 to December 2013 to Micro &
Small Enterprises respectively. Convenor, SLBC advised the member banks to
speed up credit flow achieve 60% norms.
Convenor, SLBC informed the forum that RBI has taken lot of initiatives for the
development of MSE sector in the State and has conducted several Town Hall
meetings in Ambur, Madurai etc. wherein an interface was arranged with
bankers, State Government, Industrialists and RBI.
Action: Banks
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AGENDA No: 7
Prime Minister’s Employment Generation Programme (PMEGP)
Representative from KVIC informed the forum that as on date 31.69 crores of
margin money have achieved against the target of 58.40 crores, of which 132
and 6 projects were financed in this scheme to SC and ST respectively. He also
informed that the performance in Ariyalur, Thiruvarur and Nagapattinam
districts is very low.
Lead District Officer, RBI informed that representatives of KVIC and KVIB
are not participating in the district level meeting regularly so that the
performance of the scheme could not be reviewed at the district level meetings.
Secretary (Expenditure), Govt. of Tamil Nadu advised KVIC and KVIB to ensure
that the representatives of KVIC and KVIB regularly participate in all the
district level meetings with necessary particulars.
Secretary(Expenditure) requested the bankers to take care of the districts
like Perambalur, Ariyalur, Nagapattinam, Thiruvarur and ensure proper credit
flow in all sectors to ward of the regional imbalances if any.
Representative from DIC informed the forum that performance of DIC under
PMEGP is very good and they have got sanctioned 1243 projects with tune of
29.52 crores which is ahead of the target of 23.35 crores. He also informed
that loan has disbursed for 871 projects, 20.50 crores.
Chairman, SLBC advised the banks to actively involve in this scheme and dispose
all the pending applications immediately.
Action: Banks/ KVIC/ KVIB
AGENDA No: 8
Performance under New entrepreneur-cum-Enterprise Development Scheme
(NEEDS)
Representative from DIC informed the forum that against the target of 1000
beneficiaries and subsidy component of 100 crores, DIC has recommended 1219
applications with subsidy of 125 crores. DIC has received the provisional
sanction for 728 cases with subsidy component 76.87 crores. He requested the
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member banks to give provisional sanction immediately to enable them to send
the beneficiaries for the compulsory EDP training for one month.
Secretary (Expenditure), Govt. of Tamil Nadu pointed out that the pending
applications in the scheme are more in Cuddalore, Kancheepuram Pudukottai,
Thanjavur, Vellore and Villupuram.
Secretary (Expenditure), Govt. of Tamil Nadu and Chairman, SLBC advised the
banks to concentrate in these districts and instruct their branches to dispose
all the pending applications immediately.
Action:
Banks
AGENDA No.9
Rural Self-Employment Training Institutes (RSETIs)
Chairman, SLBC advised the banks to endeavour to obtain A /AA grade in all
their RSETIs. He also advised the banks to inform SLBC the grades obtained by
their RSETIs for placing the matter in the upcoming SLBC meeting. He advised
the banks to maintain 70% of the settlement rate i.e trained candidates and
self employment as per national norms.
Representative from TNCDW informed the forum that as per the guidelines of
Monitoring Cell of RSETIs, TNCDW has engaged a retired State Government
official as State Project Co-ordinator to monitor and mentoring the RSETIs in
the state. He has also advised that under NRLM Rs.2.13 crores allotted for
RSETIs for providing training to BPL candidates. Further, he informed that SBI
RSETIs have only submitted the claim proposal and remaining banks RSETIs are
yet to submit the claims. Chairman, SLBC advised the banks to submit the claims
to TNCDW immediately.
Chief Manager, SBI informed the forum that land allotment is yet to be made in
Thoothukudi District. He also informed that initially a land was offered in the
Collectorate, Thoothukudi but however now there is a hesitation issue to offer
the land. He requested the State Govt. to look in the matter.
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Secretary (Expenditure) Govt. of Tamil Nadu informed the forum that they will
impress upon the District collectors to offer suitable land to RSETIs.
Director, Ministry of Finance, Govt. of India advised SLBC to submit the status
report of land allotment to State Govt., so that the allotment of land can be
done immediately.
Action: RSETIs/ Lead Banks/ State Govt./ SLBC
AGENDA No.10
Financial Literacy & Credit Counseling Centers (FLCCC)
Convenor, SLBC advised the member banks to instruct their rural branches to
conduct Financial Literacy Campaigns every month using the financial literacy
materials and a consolidated report should be submitted to RBI / SLBC.
GM, RBI advised the FLCCCs and banks to conduct the Financial Literacy in line
with the DCC/ DLRC meeting dates, so that the Lead District Officer, RBI also
participates in the camps.
Chairman, SLBC advised the banks to submit the outcome of the camps like
account opened, credit disbursed, deposits mobilized etc., to SLBC.
Action: Banks
AGENDA No.11
Progress under Financial Inclusion in the state:Chairman, SLBC appreciated the banks for coverage of all the 7816 villages in
the state. Chairman advised the banks to take it forward in very successful
manner.
GM, Reserve Bank of India advised the member banks to submit the revised plan
duly incorporating the 5% of brick and mortar branches in their allotted
villages.
Action: Banks
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AGENDA No: 12
Ultra Small Branches:The Convenor, SLBC informed the forum that banks have opened 3915 Ultra
Small Branches in the State of Tamil Nadu as on 28.02.2014. He advised the
member banks to complete establishment of USBs in the remaining villages,
wherever BCs are engaged as per the guidelines of Ministry of Finance.
Action: Banks
AGENDA No:13
Financial Inclusion and Green Initiatives – Electronic transfer of Benefit
Payments:Convenor, SLBC advised member banks to submit data on ICT based financial
inclusion before 5th of every succeeding month to SLBC without fail for
consolidation and outward submission to RBI.
Action: Banks
AGENDA No: 14
Allocation of targets for Education Loans by Government of India:The Convenor, SLBC informed the forum that banks have reached the
educational loan outstanding of Rs.15250.15 Crores as on 31.12.2013 against the
target of Rs.16851.08 Crores (90.49%). The number of accounts remained at
928356 against the target of 1085560 accounts (85.52%).
Convenor, SLBC advised the member banks to achieve educational loan targets
assigned by Government of India before 31.03.2014.
Director, DFS, advised Co-operative banks to submit the correct figure of
Educational Loan outstanding and NPA, since the report shows 975 NPA under
educational loan.
Action: Banks/Apex Co-operative Bank
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AGENDA No: 15
Review of performance of Educational Loans for the quarter ended
December, 2013:The forum took note that banks in Tamil Nadu have disbursed 91613 educational
loans to the tune of Rs.1438.81 Crores during April 2013 to December 2013, of
which Engineering/Medical courses account for 66637 amounting to Rs.850.99
Crore, 2474 loans for study abroad amounting to Rs.334.60 crores and 22502
loans to others to the tune of Rs.253.21 Crores.
Out of the 91613 educational loans granted to the tune of Rs.1438.81 Crores,
SC/ST, Minority Communities & Women account for 14796 loans amounting to
Rs.212.28 Crores, 10304 loans amounting to Rs.138.07 Crores and 25594 loans
to the tune of Rs.367.73 Crores respectively.
Action: Banks
AGENDA No: 16
Swarna Jayanti Shahari Rozgar Yojana (SJSRY):-
The representative from Municipal Administration informed the forum that
subsidy utilisation for the programme for the year 2012-13 have achieved 100%
under USEP and 95% under USWP programmes. Further, he informed that the
year 2013-14 the allotment of subsidy of 50% received and remaining amounts
are yet to be received from them. He also informed that achievement under
USEP is 30% and UWSP is 25% as of now, and applications have already been
forwarded to the banks.
Convenor, SLBC advised the member banks to dispose all pending applications.
Action: Banks
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AGENDA No: 17
Bank finance under Housing Scheme:The forum noted that banks in Tamil Nadu have disbursed Rs.4560.42 Crores to
the housing sector (upto Rs.25.00 lakhs) from April 2013 to December 2013.
Convenor SLBC advised member banks to submit data to SLBC in time without
fail.
Action: Banks
AGENDA No 18
Golden Jubliee Rural Housing Finance Scheme (GJRHFS)
The forum noted that banks in Tamil Nadu have disbursed 1402 loans amounting
to Rs.5036.13 lacs from April 2013 to December 2013.
AGENDA No: 19
Credit Flow to Women
The forum noted that the share of credit flow to women in the State constitute
7.24 % of total Bank Credit as against the national norm of 5 % as on
31.12.2013.
AGENDA No:20
Credit Flow to Minority Communities
The forum noted that the achievement under credit flow to Minority
Communities as on 31.12.2013 is 11.62 % against the targeted level of 15 % as
per the guidelines of Ministry of Finance. Convenor, SLBC requested the
member banks to increase the share of credit flow to Minority Communities to
reach the desired target level of 15%.
Action: Banks
22
AGENDA No:21
Kisan Credit Card Scheme (KCC)
The Convenor, SLBC informed the forum that banks in Tamil Nadu have issued
22.96 lakh Kisan Credit Cards to the tune of Rs. 15550.81 Crores from April
2013 to December 2013.
Director, DFS, MOF advised the member banks to issue ATM enabled Kisan
Credit Card to all the eligible borrowers and report to SLBC.
Chairman, SLBC advised Indian Bank to verify and confirm the correctness of
data in respect of No. of KCC issued to SLBC. Convenor, SLBC advised all the
member banks to ensure 100 % coverage of eligible loans under crop insurance
scheme.
Action: Banks/ Indian Bank
AGENDA No: 22
Self Help Groups (SHGs)
Representative from TNCDW informed the forum that the banks have achieved
87% amounting Rs.5196 crores as on 15.03.2014 under direct linkage to SHGs
against the 2013-14 target of Rs. 6000 crores. He informed the forum that the
banks are reporting the SHG disbursement details without including the cash
credit figures. He requested the member banks to verify their data and submit
afresh duly incorporating the cash credit figures.
Secretary (Expenditure) Govt. of Tamil Nadu informed the forum that poor
performance is observed in Theni, Dharmapuri, Cuddalore, Thiruvarur, Tiruppur,
Erode, Nagapattinam and Ariyalur districts. He advised TNCDW to clarify that
why performance in Dharmapuri is very low when compared to Krishagiri
District, since profile of Dharmapuri district is similar to that of Krishanagiri
district like, SHG Population, good bank network , similar non mahalir thittam
SHGs and high rate of recovery.
Representative of TNCDW replied that repeat loans are not given to SHGs in
Dharmapuri district, this is the reasons for poor performance in the district.
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Secretary (Expenditure) Govt. of Tamil Nadu advised the team of banks and
TNCDW officials to look in the matter and sort out this issue immediately. He
also requested the banks to verify their software and ensure to report the
figures duly incorporating Cash Credit figures to TNCDW.
DGM, IOB informed the forum that executives from Central Office has visited
in Thanjavur, Tiruchirapalli and Nagapattinam districts and impressed upon the
branch mangers of IOB to lend more loans to SHGs.
Representative from TNCDW informed the forum that due to visit under taken
by IOB, there is an increase in SHG disbursement in these districts. He
acknowledged the support given by IOB in this regard.
Action: Banks/ LDMs /TNCDW
Agenda No: 23
Progress
Report
on
Economic
Development
Schemes
implemented
by
TAHDCO
General Manager, TAHDCO informed the forum that the banks are keeping
pending 13773 applications for a long time. He informed the forum that out of
13773 pending applications, 5527 applications relating to 2012-13 and 8246
applications relating to 2013-14. He requested the member banks to dispose all
pending applications where subsidy has been received by the banks immediately.
Secretary (Expenditure) Govt. of Tamil Nadu pointed out in the forum that the
performance under land purchase scheme is very poor. He advised TAHDCO to
look in the matter and concentrate to provide assistance in the delta districts,
since the scope for land purchase scheme there is high.
Convenor, SLBC requested the member banks to actively involve themselves in
the implementation of the schemes of TAHDCO and dispose all the pending
applications on priority basis immediately.
Action: Banks / TAHDCO
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AGENDA No: 24
Review of NPA Accounts in Priority Sector Lending – December 2013
Secretary (Expenditure) Govt. of Tamil Nadu pointed out that percentage of
NPA in micro credit is high with State Bank of India. He advised the State Bank
of India to take up with TNCDW and recover the micro credit NPA.
DGM, SBI replied that they have already informed the details of defaulted Self
Help Groups and sponsored NGOs to TNCDW and district authorities. Further,
he informed that they have also requested assistance from State Government
to recover the NPA.
DGM, IOB informed the forum that NPA under micro credit increased due to
breaking the group by the members and forming another groups. These groups
avail fresh loans from some other banks and leave the earlier loan unpaid.
CGM, SBI informed the forum that the splitting of the SHGs and formation of
new groups are the main concerns for NPA. She requested the State Govt. to
enumerate and compulsorily register the SHGs members and NGOs and make
available the details of SHGs to the banks. She also informed the forum that
SBI has with come out the OTS scheme for SHGs with the discount of 30 to
40% of the outstanding loan up to 31.03.2014.
Representative from TNCDW informed that under NRLM, the registration of
the member profile in online is compulsory. Further, he informed that the
registration of the SHGs members in online portal in all the districts are being
done, at present 70 to 80% registration is over. He informed that this will help
in avoiding duplication.
He informed the forum that National level, Tamil Nadu is in 2nd position in
respect of SHGs disbursement and also NPA. He also informed that they have
conducted study and found that NPA under SHGs is higher in non mathi SHGs.
He informed the forum that TNCDW already requested the banks to share
their SHGs NPA details for mathi and also Non mathi SHGs, so far SBI only
submitted, he requested the banks to submit their NPA details to TNCDW
immediately.
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Regional Director, RBI requested TNCDW to complete the registration 100%
and banks should maintain the NPA level at less than 2 % in NPA under micro
credit.
Secretary (Expenditure), Govt. of Tamil Nadu advised TNCDW/ Banks/ LDMs
to bring the details of SHGs quality of lending , target , achievement along with
NPA level and discussed in the meeting and keep informed to the district
collector, so that the remedial measures can be taken immediately.
Director, DFS, MOF advised that Lead District Manager and banks to represent
with details of NPAs in the DCC meeting to District Collector and Tahsildar to
invoke recovery action.
General Manager, Pandyan Grama Bank informed that under NRLM scheme
interest subvention is not available to SHGs financed through PLF. He requested
the Government to consider interest subvention to PLF also. DGM, IOB
informed the forum that as PLF loans are mainly lending for SHGs only, the
interpretation can be that interest subvention is available for such loans also.
He suggested that there is no need of representation to Ministry of Rural
Development, Govt. of India, and decision can be taken by State Govt. itself.
Secretary (Expenditure), Govt. of Tamil Nadu advised TNCDW to refer the
matter with Finance Dept. Govt. of Tamil Nadu to sort out this issue at the
State level.
Action: Banks/TNCDW/ State Government
Agenda No. 25
Success Story
The Convenor, SLBC appreciated Indian Bank and Indian Overseas Banks for
sharing the success stories with SLBC. He requested the banks and State Govt.
to share their success stories with SLBC like the ones shared by Indian Bank,
and IOB.
Action: Banks/ State Govt.
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Table Agenda
1. Bank-wise, District-wise Performance under New entrepreneur-cumEnterprise Development Scheme (NEEDS) and Unemployed Youth Employment
Generation Programme (UYEGP)
The Convenor, SLBC requested the member banks to dispose all pending
applications immediately.
Action: Banks
2. National Horticulture Board – Revised procedure for Letter of Intent
(LOI).
Deputy Director, NHB informed the forum that first time NHB is providing 100
% advance subsidy from 09.12.2013 onwards to all crops, floriculture, honey
bee, cold storage, ripening chamber but this subsidy should be kept 3 years
under frozen account. He also informed that 100% advance subsidy is given by
NHB based on the bank’s loan sanction copy, appraisal note, term loan account
statement and affidavit from the beneficiary.
He informed the forum that from 01.04.2014 onwards the subsidy percentage
for floriculture is increased from 25% to 50% and for cold storage it remains
at 40 % i.e 1.80 crores subsidy.
He also explained the forum that the revised procedure for issuance of Letter
of Intent (LOI).
He requested the member banks to make use of NHB subsidy scheme to lend
more under horticulture sector.
Other issues:
1. Representative from Dept. of Animal Husbandry informed the forum that the
current year achievement under poultry development scheme is only 25%. She
requested the member banks to dispose all the pending applications immediately.
She also informed the banks that SLBC already circulated the bankwise details
of pending applications to the concerned bank. She has also informed the forum
that 60% of loans under this scheme have been given by IOB and thanked IOB
for the same.
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Representative from Karur Vysya Bank informed the forum that the beneficiary
is insisting the bank to credit the subsidy amount to their SB account. He
requested Dept. of Animal Husbandry issue cheque with loan account number.
Action: Banks/Dept. of Animal Husbandry
2.Representative of TABCEDCO informed the forum that the proposal of banks
signing an MOU with them as their sub-channelising agents for implementation
of the educational loan scheme of NBCFDC.
Convenor SLBC advised that this matter was taken up in several meetings and
even a special SLBC meeting was organised to discuss this issue. He also advised
that the onerous clause in the agreement that “even if the party does not repay
banks have to repay the loan to TABCEDCO” is not acceptable to the bankers.
This fact was already advised to TABCEDCO.
The meeting ended with a vote of thanks proposed by Shri. M. Elangovan,
General Manager, Central Bank of India, Chennai.
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