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STATE LEVEL BANKERS' COMMITTEE, TAMIL NADU

CONVENOR: INDIAN OVERSEAS BANK

MINUTES OF THE 126th S L B C MEETING

HELD ON 29.06.2011

126th SLBC Meeting of Tamil Nadu was held at Chennai on 29 th June, 2011. List of

participants is furnished in the Annexure.

Welcome Address :.

Smt. Nupur Mitra, Executive Director, IOB in her welcome address explained

the scope and coverage of the meeting and stressed the need for timely review

and initiation of corrective steps through timely submission and analysis of

data. She mentioned about the Annual Credit Plan for the year 2011-12 which is

prepared on the basis of district credit plans received from all the 31 districts

and emphasized special focus on crop loan disbursement as the key point of this

meeting.

Earlier, ED, IOB extended a warm and cordial welcome to Shri Debendranath

Sarangi IAS., Chief Secretary, Government of Tamil Nadu who attended the

SLBC Meeting for the first time. She also extended a warm welcome to Shri

N S Vishwanathan, Regional Director, RBI, Chennai, Smt. Lalitha Venkatesan,

CGM, NABARD, Chennai, who also attended SLBC Meeting of Tamil Nadu for

the first time.

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Key Note Address:-

Shri M. Narendra, Chairman & Managing Director, Indian Overseas Bank and

Chairman, SLBC, Tamil Nadu in his keynote address reviewed the progress made

by the Banking system in Tamil Nadu under various key parameters and outlined

the action areas for Banks as under: -

During the last few months, southern districts had received good rains, giving

the cherished boost to agriculture in the state. Opening of Mettur dam on 6 th

June followed by opening of other dams like Amaravathy and Manimutharu etc

shortly afterwards have augured well for agriculture. Cauvery Delta area is

poised to have three crops during the current year. All these events present

excellent opportunity and responsibility for Banks to finance farming

operations. CMD, IOB appealed to Banks to provide hassle free credit to

farmers. This is the time to enlarge the coverage of all eligible farmers under

KCC. He observed that the number of KCCs issued has come down during the

year under review and he also appealed to Banks to use this season to increase

issuance of KCCs on a large scale in the current year.

Financial Inclusion:

Currently Financial Inclusion Project focuses on extension of banking services

to villages having population over 2000, which is under close monitoring of

Ministry of Finance as well as RBI.

As per the progress report submitted by Banks, only 2077 villages have been

covered by Banks upto March 2011 against the targeted level of 2188 villages

by March 2011 and another 2197 villages to be covered by 31.12.2011,

aggregating to 4385.

The total number of villages remaining to be covered continues to be high at

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2308 villages. Hence, he appealed to Banks to step up their efforts and ensure

100% coverage by December 2011.

Ministry of Finance, Government of India has already initiated steps for

coverage of villages with population above 1000 in the next stage. 4430 villages

having population between 1000 and 2000 have been identified through

respective DCCs and allotted to Bank Branches for extension of Banking

Services. However, no roadmap has been drawn for coverage of these villages.

CMD, IOB requested all the Banks to prepare their action plans for covering

these villages.

Indian Banks’ Association has been requested to take lead in carrying out a

national level awareness campaign targeting beneficiaries of Financial Inclusion

Plan. The Campaign was formally inaugurated in New Delhi on 10.02.2011. To

take forward this campaign to the gross-roots, an action plan needs to be

chalked out. IBA is participating in the SLBC Meeting to inform us about the

modes and strategies for spreading out the message.

RSETIs & FLCCCs:

(Rural Self Employment Training Institutes and Financial Literacy cum Credit

Counselling Centres)

The total number of RSETIs have been set up in 22 out of the 31 districts of

the State. The remaining 9 RSETIs have to be opened by two allottee Banks.

He requested them to set up RSETIs in their allotted districts expeditiously,

so that Tamil Nadu would be achieving 100% coverage of all districts.

CMD, IOB expressed concern over the slow progress in setting up FLCCCs.

During the deliberations in SLRM 2010 held on 14.12.2010, it was decided to set

up FLCCCs in all the districts by June 2011. But, still 15 districts are yet to be

covered. He appealed to all the three Lead Banks concerned to set up FLCCCs

in their remaining Districts immediately.

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Some banks are showing interest in opening more than their allotted shares of

these institutes. Although the scheme stipulates allotment of land and funding

support to only one RSETI in every district, there are no restrictions on the

total number in any district.

Highlights of Banks’ Performance in Tamil Nadu

He then listed out some of the highlights of the achievements of the Banking

system in Tamil Nadu as at the end of March 2011.

CD Ratio as of March 2011 has reached the level of 114.49%, although in one

district viz., Kancheepuram, it still remains less than 60%.

Deposits have increased by 16.09% in the state during the 12 months period

ended March 2011.

Aggregate Credit Outstanding increased by 21.83% during the year ended

March 2011

The share of Priority Sector advances to total credit is 47.49% as of March

2011 against the national norm of 40%.

The share of agricultural advances as on March 2011 was 19.18% against the

national norm of 18%.

The share of advances to weaker sections increased to the level of 11.84% as

on March 2011 against the national norm of 10%.

He congratulated all Banks for having achieved the annual target and surpassed

the national norm in three important key parameters, viz., Priority Sector

Advances, Agricultural Advances and Advances to Weaker Sections.

Government Sponsored Schemes:-

Under Swarnajayanti Gram Swarozgar Yojana (SGSY), Banks have disbursed

Rs.507.97 Crores in the current year upto March 2011 against the annual target

of Rs.243.94 Crores. CMD, IOB, congratulated the Tamil Nadu Corporation for

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Development of Women Limited as well as all Banks for this remarkable

achievement under SGSY.

He noted that credit subsidy ratio for economic activity has attained the level

of 2.95 just a shade less than 3.

Under Swarna Jayanti Sahari Rozgar Yojana (SJSRY), subsidy utilization has

been upto the level of 70.50% upto March 2011. He appealed to member Banks

to dispose of the pending loan applications under SJSRY immediately so as to

ensure 100% utilization of subsidy in the current programme year.

Action: Member Banks / Dept. of Municipal Admn.

Performance under Annual credit Plan (2010-11) upto March 2011.

As per quick information reports received, under Annual Credit Plan 2010-11

Banks in Tamil Nadu have disbursed Rs.52,224 Crores upto March 2011,

achieving 110% of the annual target of Rs.47,428 crores.

Credit flow to the agricultural sector amounted to Rs.31,404 crores while

Credit flow to Non Farm Sector was for Rs.10,375 crores. Other Priority

Sectors got Rs.10,445 crores.

Annual credit Plan for 2011-12

Annual Action Plan for the state for the current financial year has been drawn

up on the basis of District Credit Plans received from the districts.

For the current year, an allocation of Rs.56,622 Crores has been made under

ACP 2011-12. Farm Sector accounts for Rs.31,017 Crores while the allocation

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for Non Farm Sector is Rs.12,582 Crores. Other Priority Sector accounts for

Rs.13,022 Crores. He appealed to Member Banks to ensure 100% achievement

under Annual Credit Plan in the current year too.

He recalled to renew his request to State Government to notify, under

Transfer of Property Act, all banked centers in the State as done by

Government of Kerala and some other states. This would help the borrowers

and beneficiaries to avail loans without having to go to another place to deposit

their title deeds for creating mortgage.

Chairman, SLBC acknowledged the whole hearted and continued support

received from the various Departments of Government of Tamil Nadu, Reserve

Bank of India, NABARD and the member Banks both at the State level and at

the Districts level and thanked them for the same.

Inaugural Address:-

Shri Debendranath Sarangi I.A.S., Chief Secretary, Government of Tamil

Nadu, in his inaugural address made the following observations:-

Chief Secretary noted that Banks have exceeded the national targets in

important sectors like Agriculture, Priority Sector & Weaker sections and

pointed out that from the dynamism of Banks & Bureaucracy in Tamil Nadu the

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achievement is no surprise to him.

He called upon Banks to ensure exemplary performance in the current year

especially in increasing credit disbursement.

He appraised the forum that the new Government has a Development Agenda to

give a big impetus to sectors like Agriculture, Dairy, infrastructure,

development of women & children etc. , and pointed out that Banks have also

responsibility in developing these sectors.

Chief Secretary also added that State Government is in the process of

preparing visual document 2020-25 for overall development of the State, which

will be ready within 4 to 6 months. The visual document will be made available

to Banks stating that the role of Banks will be crucial in the schematic

investment, he appealed to Banks to actively promote investments / deploy

credit in the identified sectors. He also assured full support from the

Government for the Bank’s endeavors in this regard.

SPECIAL ADDRESS:-

Shri K. Shanmugam, IAS., Principal Secretary, Finance, Government of Tamil

Nadu observed as under in his Special Address:-

As regards performance of Banks under key parameters and Government

sponsored schemes, the Southern Region in general and Tamil Nadu in particular

always do well. In the meeting at Hyderabad last year, the performance of

Southern Region especially Tamil Nadu was observed to be excellent. He

expressed confidence that there will not be any problem in achieving the

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targets in the current year also.

He appealed to Banks to prepare a Model Scheme to extend credit to Rural

Unemployed Youth for setting up “Agro Processing Centre”, to sort out labour

shortage problem and to increase the use of machinery & farm implements.

Drip Irrigation is a priority area, the Government is focusing on. So far the

coverage under Drip Irrigation is only to the tune of 1 Lac hectares which is

very very small portion of net sown area.

The scheme has got Government subsidy support and when used with high tech

farm practices like precision farming will increase productivity and income. He

appealed to Banks to enlarge credit to farmers adopting Drip Irrigation.

He also suggested that credit for high density cultivation for Horticulture

crops may be tied up with Drip Irrigation.

He also called for financing potato cultivation especially in urban surroundings &

also fruits & vegetables.

The Principal Secretary, Finance, Government of Tamil Nadu advised Banks to

focus on setting up Agro Processing Centres for perishables like vegetables,

fruits etc., so that the supply is evened out and sudden fluctuation in price to

the disadvantage of farmers is avoided.

State Government is attaching lot of importance to Animal Husbandry which

provides supplementary income to farmers. Banks may think of a scheme for

providing 3 to 5 milch animals on a client basis for establishing milch route, cold

storage etc.

He also added that Government will be bringing a scheme to improve the lot of

MSE sectors and advised Banks to keep their focus on enhancing credit

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disbursement to the MSE Units.

He noted that 50% coverage is low under Financial Inclusion. Pointing out that

some banks are yet to cover even one village under Financial Inclusion, he

appealed to all Banks to evince interest in the project and enlarge 100%

coverage by December 2011.

As regards setting up of RSETIs, he suggested that existing infrastructure like

RTC / SIRD can be utilized for setting up RSETI.

Shri N.S.Vishwanathan, Regional Director, RBI, Chennai in his special address

to the forum made the following observations:-

RD, RBI expressed satisfaction that Banks have done well in key parameters on

global basis. But in specific areas, Banks need to do better.

Under Financial Inclusion Project, coverage of villages with population over

2000, few Banks, to whom 608 villages have been allotted are yet to start the

coverage.

As part of Platinum Jubilee celebration, RBI laid emphasis on Financial

Inclusion, Financial Literacy etc. He pointed out that RBI Governor has already

advised to move from the target based approach to substantive financial

inclusion. The performance has to be not merely number of No-Frills accounts

opened, smart cards issued etc., but enabling the poor to gain access to various

financial services from Banks. This is the area where Banks & Government need

to focus on.

Lack of financial knowledge is the cause for many credit related problems. It is

necessary to ensure speed of financial literacy. In fact RBI had requested

some State Governments to include financial literacy in the school syllabus so

that students at very early stage get imbibed in financial literacy.

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RD, RBI emphasized on the development of MSME sector and especially quick

rehabilitation of sick units.

He pointed out that Government of India has set a target of Rs.4.75 lacs crores

credit disbursement to agriculture which has to be dovetailed to ACP in all the

States. He advised to look at ACP through the Budget allocation of Rs.4.75 lacs

crores.

In January-February 2010, RBI advised Banks to prepare a Board approval plan

for Financial Inclusion. In the first step, Banks were advised to extend banking

services to villages having population over 2000. Now smaller villages having

population between 1000 and 2000 have to be covered. Such villages have been

identified and allocated to Banks.

Banks need to prepare an action plan for the same. BC Model & Technology help

to extend banking services in a cost effective manner. BC Model needs to be

stabilized so as to evolve confidence among people.

He expressed confidence that with the support of State Government, Banks will

not only repeat but even better their performance in the current year.

Smt. Lalitha Venkatesan, Chief General Manager, NABARD, Chennai observed

as under in her special address:

Planning Commission has set up a working group on outreach of Institutional

Finance to Corporations and Risk Management under the 12 th Five Year Plan

under the Chairmanship of Dr. Y.S.P. Throat, Former Chairman, NABARD and

Dr. Prakash Banshi is the Member Secretary.

The field level credit target to Agriculture for 2011-12 for the country as a

whole is Rs.4,75,000 crores. State-wise target were fixed and the target for

Tamil Nadu is Rs.40,556 crores. But ACP 2011-12 has set the farm credit

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target of Rs.31,017 crores. Pointing out that the achievement for 2010-11

itself is more than the target of 2011-12 set under ACP, CGM, NABARD advised

Banks to take Rs.40,556 crores as the target for farm credit.

Further the achievement in 2010-11 is to the extent of 123%. In the current

year, the Government of India target of Rs.40,556 crores is 129% of ACP 2011-

12 farm credit target and hence within the reach of the people especially in the

content of the various sectors outlined by Principal Secretary (Finance) &

target of 1,50,000 tons of food grains set by the Agriculture Production

Commissioner.

CGM, NABARD drew the attention to the directive of Hon’ble Union Finance

Minister for year on year increase by 20% both in number & amount and

appealed to Banks to enlarge the concept of farmers under KCC accordingly.

CGM, NABARD appealed to Banks to give wide publicity to Weather based Crop

Insurance and enhance coverage of crops under the same.

NABARD has launched a proposal for payment of pension for rural poor and

SHG members from the Financial Inclusion Fund. The scheme is being

implemented on a pilot basis in 4 states viz., Bihar, Odisha, U.P & Tamil Nadu.

In Tamil Nadu, it is implemented in the districts of Cuddalore and Madurai,

when it was inaugurated on 6/6/2011.

CGM, NABARD also pointed out that formation of 3 lacs SHGs and enlargement

of KCC action plan has to be drawn up jointly by Banks, Government & NABARD.

The number of KCC, Amount & JLG/SHG go in tandem and achievement under

KCC will ensure achievement of farm credit target.

For Smart card & POS machines, financial support is available from NABARD to

Commercial Banks, who can make use of the same.

NABARD has recently introduced Capital Subsidy Scheme for solar panels

under Jawaharlal Nehru National Solar Mission. Both capital subsidy and

interest subsidy can be availed under the scheme.

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NABARD has already issued circulars on all these schemes. CGM, NABARD also

noted that the utilization of various scheme is on a higher rate in Tamil Nadu.

Ms. Surinder Kaur, Under Secretary, Department of Financial Services,

Government of India made the following observations:-

Financial Inclusion is one of the major concerns of Government of India. Upto

March 2011, only 2077 villages are covered which is less than 50%. 18 Banks to

which 608 villages have been allotted are yet to cover a single village. She

appealed to Banks to ensure coverage within the stipulated date.

After these addresses by Dignitaries, the Agenda was taken up for discussion.

AGENDA: 1

Confirmation Of The Minutes Of The Earlier Meeting

The forum confirmed the minutes of the 125 th SLBC Meeting held on 28.02.2011.

AGENDA: 2

Follow-up Action on the decision of the earlier meetings

Notification of Centres for Deposit Of Title Deeds for Creation of Equitable

Mortgage Transaction (EMT)

Taking note that the matter has been taken up many a time in the past with State

Government & Chairman, SLBC, Tamil Nadu has also made a request in this regard,

the forum appealed to State Government to expedite notifications of all the

centres where Bank Branches are located as notified centres as done in Kerala.

Action: State Govt.

AGENDA: 3 New Issues

1. Providing banking services in every village having population of 1000 Plus

Shri S.N. Misra, GM, IOB, explained that currently Banks are in the process of

extension of Banking services to villages having population over 2000. In the next

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phase villages having population between 1000 and 2000 need to be covered for

which the villages in Tamil Nadu have been mapped. There are 4494 villages having

population between 1000 and 2000 in Tamil Nadu of which 4430 have been

identified and allotted to Banks by respective DCCs. The details of villages with

District wise / Bank wise allotment have already been forwarded to Member Banks

(soft copy). DCCs have also advised Banks with regard to allotment within the

District. Banks need to cover these villages also simultaneously with villages having

population over 2000 wherever feasible / contiguous and cover the rest of the

villages (1000+) in the next stage.

Shri M. Narendra, Chairman & Managing Director, IOB & Chairman, SLBC, Tamil

Nadu advised Banks to apprise on the action plan for covering villages having

population of 1000 plus.

Banks informed that in certain cases they have already stated covering these

villages on their own & having plans to cover all these villages in a phased manner.

After the deliberations, the forum advised Banks to ensure time bound action plan

to cover the contiguous 1000 plus villages concurrently with “over 2000” and

others subsequently.

Action : Banks

2. Providing banking services in every village having population of over 2000

Shri M. Narendra, CMD, IOB & Chairman, SLBC, Tamil Nadu advised the Banks

which are yet to cover even a village by March 2011 to advise the current position

and also when such Banks are likely to ensure coverage.

Shri R. Gopalakrishnan, Zonal Manager, Bank of India informed that all the 1 10

villages have been covered and reported to Bank’s Head Office. Regretting for the

misreporting, he assured to submit a letter to SLBC immediately.

Smt. Usha Ananthasubramanian, GM, Bank of Baroda informed that 44 villages have

been covered and the rest will be covered in the current year before December

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2011.

Shri Praveen Anand, AGM, Punjab National Bank informed that no-frill accounts

have been opened and BCs have been appointed. Only technology tie up is to be

done and assured that coverage will be achieved by December 2011.

Shri S.K. Bhasyam, GM, Union Bank of India apprised the forum that the work of

opening of no-frills account, appointment of BCs etc., are in progress and assured

that coverage will be done by September 2011.

Shri M. S. Alagan, Chief Manager, UCO Bank informed that all the villages have

been covered, 7 by mobile van and rest through ICT model.

Shri K. Thangarajan, Regional Manager, Pallavan Grama Bank informed that

technology provider has since been identified & coverage will be achieved within

the deadline viz., December 2011 set by the forum.

Mr. R. Ravindran, AGM, Tamilnad Mercantile Bank Ltd., assured the forum that the

coverage will be done by July 2011.

Noting that 2077 villages have been covered upto March 2011, the forum advised

Banks to ensure 100% coverage by December 2011.

Action : Banks

The forum noted that the representative of Lakshmi Vilas Bank Ltd., has not

attended the meeting and advised the Bank to inform the current position to SLBC

immediately.

Action : Lakshmi Vilas Bank

3. Financial Inclusion

The forum noted that 64.28 lacs no-frills accounts have so far been opened by

Banks in Tamil Nadu. The forum advised Banks to submit data on no frill account

promptly to SLBC.

Action : Banks

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The forum also requested State Government to route the benefit payments

through respective Bank Branches who have covered the villages under financial

inclusion.

Action : State Govt.

4. Setting up of Rural Self-Employment Training Institutes (RSETIs)

Shri M. Balakrishnan, DGM, Indian Bank informed the forum that RSETI in the

remaining 7 Lead Districts would be set up before September 2011.

Shri Joseph Mathew, DGM, State Bank of India, informed that they have already

set up RSETIs in Ariyalur & Tuticorin Districts.

Shri S. Rajagopal, Senior Manager, Canara Bank informed the forum that RSETIs

in the remaining two Districts viz., Madurai & Coimbatore will be set up by

September 2011.

The forum after deliberations advised Lead Banks to take up the matter with

respective District Collectors for allotment of land / existing infrastructure. The

forum also requested State Govt. to expedite allotment of land and issue necessary

instructions to District Collectors in this regard.

Action : Banks / State Govt.

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

Shri M. Balakrishnan, DGM, Indian Bank informed the forum that FLCCC in the

remaining 9 Lead Districts would be set up in July – September 2011 in a phased

manner.

After deliberations, the forum advised other 2 Lead Banks also to set up FLCCCs in

their Lead Districts immediately.

Action : Indian Bank / Canara Bank/ State Bank of India

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6. Study Report on verification of borrowers and end use of funds under

Government Sponsored Schemes - NIRD Report

The forum advised Banks and Government to take note of the observation of the

Study Report, viz., only financial targets achievement is given importance and

qualitative aspects and schemes with high orientation of subsidy perform worse

than others. The forum also advised banks to remove the shortcomings in the

implementation of Govt. Sponsored Programme as per the above study report. The

forum pointed out that DCCs also should orient their deliberation/action plan to

adjust the shortcomings brought out by the study report.

Action : SLBC / DCC / Banks / Govt. Depts.

7. Closure of Dyeing Units in Tiruppur

The forum appealed to State Government to permit adjusting of the subsidy

amount lying in SB A/c. to respective loan accounts.

The forum also appealed to State Government to do the needful for restoration of

functioning of units.

Action: Govt. of Tamil Nadu

8. Crop Insurance Schemes

Shri K. Arulmozhi, IAS., Agriculture Production Commissioner (APC), Government

of Tamil Nadu informed the forum that the coverage under National Agriculture

Insurance Scheme (NAIS) gone upto 3 lacs loanee farmers and 5 lacs non-loanee

farmers in 2010-11. He pointed out that Government of Tamil Nadu is meeting 50%

of the premium for both loanee & non-loanee farmers. He added that crop loan

against jewels are not covered under NAIS & appealed to Banks to advise their

branches to cover crop loan against jewels also under insurance. He also explained

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the efforts taken by State Government to improve the productivity of crops like

sugarcane, paddy etc., and requested Banks to expand finance for cultivation of

sub crops.

Shri M. Narendra, CMD, IOB & Chairman, SLBC suggested that the scheme details

may be made available to SLBC for circulation among member banks. It can be

correlated with NABARD scheme and improved further.

APC also referred to letter of Chief Secretary to RBI for ensuring compulsory

coverage under insurance for meeting crop loss. Loans not covered under insurance

ineligible to be classified as Agri / Priority loans.

Shri N.S. Vishwanathan, Regional Director, RBI, Chennai responded that making

insurance coverage compulsory rests with Government of India, which formulated

the scheme. As regards making crop loans / crop loans against jewels, ineligible to

be classified as Priority Sector advances if not covered under insurance, he

pointed out that coverage under Priority Sector based on end use and so long as

the loan is utilized for agriculture, it would be difficult to make the same ineligible

for being classified under Priority Sector.

Shri C. Anbarasu, Regional Manager, Agriculture Insurance Company of India Ltd.,

(AICI) explained that under Weather Based Crop Insurance Scheme (WBCIS), the

credit limit has to be taken into account for calculating the premium. The premium

is sanctioned limit x acreage x percentage which amounts to sizable amount. This

is the Government of India directives and Banks need to implement the same. But

the coverage under WBCIS is very poor.

The forum after deliberations reiterated that crop loans including crop loans

against jewels should be covered under insurance for all the notified crops in

notified areas.

The forum also advised to cover to specified crops in specified districts under

WBCIS taking sanctioned limit into account.

Under both insurance schemes, the forum advised Banks to enlarge coverage

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substantially. Action: Banks

9. Government of India’s Agricultural Debt Waiver & Debt Relief Scheme 2008

– CAG Audit

Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu explained that the scheme

is subject to CAG Audit and Banks were advised to submit Performance Audit

Report & Grievance Details both in hard & soft form as early as July 2010. But a

few Banks are still to submit the same and the names of the Banks are furnished in

the agenda. These Banks are requested to submit the details immediately.

In May 2011, CAG team visited SLBC Office as part of commencement of audit. An

Entry Conference was held in which the Deputy Accountant General, Chennai

participated.

Bank Branches which will be visited and audited were announced. In all, CAG has

selected 40 branches, the details of which have already been forwarded to

respective Banks. CAG apart from scrutinizing the books of accounts, will also be

meeting farmers at branches. Branches concerned need to put up notice in their

Notice Board that CAG audit is being carried out and farmers will be met. CAG

team will be distributing the questionnaire to farmers for drawing their views as

part of the survey.

After the deliberations, the forum advised the defaulting Banks to submit the

performance audit and grievances details to SLBC immediately.

The forum also advised Banks to extend their cooperation to the CAG Audit Team

and put up the notice as advised.

The forum also noted that towards the completion of audit, there will be an Exit

Conference.

Action: Banks

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10. Indira Gandhi Matritva Sahyog Yojana (IGMSY) – A Conditional Maternity

Benefit Scheme

Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu explained that under the

scheme, a cash incentive of Rs.4000/- is provided in 3 instalments to every

pregnant and lactating woman aged 19 & above subject to certain conditions. Banks’

role is to open No-Frills accounts to such beneficiaries for receiving the amount

through Bank.

The forum advised Banks to open No Frills A/c. to such beneficiaries and facilitate

payment in coordination with Nodal Department.

11. Reservation for SC / STs – Follow up of Bogus Caste Certificate Cases

Shri Joseph Mathew, DGM, SBI informed that the issue of false caste

certificates has been discussed in SLBCs of other States and hence SBI wanted to

draw the attention of authorities concerned for doing the needful through the

forum of SLBC.

Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu responded that the

problem is issuance of false caste certificates due to which wrong people have

entered the service. Hence, the role of SLBC in mitigating the same is limited.

The forum requested State Government to ensure against issuance of false caste

certificates.

Action : State Govt.

AGENDA No: 4

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REVIEW ON BANKING DEVELOPMENTS IN TAMILNADU ON KEY

PARAMETERS AS OF MARCH 2011

The forum noted that Deposit & Credit growth was to the extent of 16.09% &

21.83% respectively.

The forum also advised Banks to accelerate lending under DRI Scheme.

Action: Banks

AGENDA No: 5

REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN

2010 – 2011: APRIL 2010 TO MARCH 2011

The forum took on record that achievement under ACP 2010-11 is to the extent of

110% with the achievement under Farm Sector, Non-farm Sector & Other Priority

Sector being 123%, 94% & 96% respectively.

The forum advised Banks to ensure 100% achievement under ACP 2011-12 under all

the three sectors.

Action : Banks

AGENDA No: 5A

ANNUAL CREDIT PLAN 2011-12

Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu explained that ACP is

prepared on the basis of PLP released by NABARD as per RBI guidelines. The

preparation of ACP is a bottom up approach wherein bank branches prepare the

plan at branch level which is then aggregated at Block, Taluk & District level.

District Credit Plan received from all the Districts are aggregated to arrive at the

State Plan. However from last year onwards Govt. of India is also advising targets

through NABARD, which is higher than the one projected at District level. He

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sought the view of Banks.

Shri K. Arulmozhi, IAS., Agriculture Production Commissioner (APC), Government

of Tamil Nadu pointed out that for certain crops like pulses etc., the allocation is

less than the previous year and bulk of the plan viz., 11020 Crores is classified

under miscellaneous and would break-up for the same.

Shri Joseph Mathew, DGM, SBI pointed out that winter crops like turmeric etc.,

has not been captured.

APC pointed out that turmeric is grown in one lac h.a. is a major crop, similar is the

case for Tapioca.

Shri M. Balakrishnan, DGM, Indian Bank pointed out that Banana is also not listed

separately. Further crop loans for plantation of horticulture crops also come under

Miscellaneous category.

Representative of Department of Agriculture called for the details of major crops

under Miscellaneous category. Further the allocation for pulses has actually come

down while the State Government is going all out to increase the production.

Shri M. Narendra, CMD, IOB & Chairman, SLBC, Tamil Nadu suggested that

instructions may be sent to the LDMs of these Districts which reduced the plan

size for pulses in ACP 2011-12 to review the same and inform the Banks in the

Districts.

After the deliberations, the forum while apprising the plan advised Banks 1) to

achieve the farm credit target advised by Govt. of India viz., Rs.40556/- crores.

2) to provide break up details for crop loan (Miscellaneous) to LDMs for onward

transmissions to SLBC.

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AGENDA No: 6

SWARNA JAYANTI SHAHARI ROZGAR YOJANA (SJSRY)

Shri N. Parthasarathy, Technical Officer, Municipal Administration department

apprised the forum that as on date subsidy utilization level has gone up to 77%. He

appealed to Banks to ensure disposal of all pending loan applications for the

performance year 2010-11 before first week of August 2011.

He also added that Action Plan for the current year has been advised to all the

Urban Local Bodies without waiting for release of funds from centre. The plan

contains sub target for SC/STs and Minorities and requested Banks to ensure

100% subsidy utilization.

Action: Banks / Municipal Admn. Dept.

AGENDA No: 7

Prime Minister’s Employment Generation Programme (PMEGP)

Smt. Vijayam Sathish, Asst. Director, KVIC informed that Rs.15.00 Crores have

been released and disbursed to Nodal Bank Branches. Another instalment is

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expected in a month’s time. As the funds are released based on the utilization

certificate, she requested Banks to settle Margin Money claim of branches and

inform KVIC.

After deliberations, the forum approved Margin Money Target of Rs.33.23 Crores

for the Current Year 2011-12.

The forum also advised KVIC to arrange for release of Margin Money against

pending claims from Banks.

Action: Banks / KVIC

AGENDA No: 8

SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY)

Shri J Ganesh Kanna, AC (Micro Credit), TNCDW, informed the forum that the

credit mobilization target for SGSY at Rs.297.38 Crores is up to December 2011.

From 2012 onwards NRLM will be implemented for which the Government has sent

its report / view to Centre.

The forum after deliberation advised Banks & TNCDW to work together and

ensure achievement of Target.

Action: Banks / TNCDW AGENDA No: 9

Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)

Shri S.S. Narayanamoorthy, Superintendent Engineer, TNHB apprised the forum

that so far 53,275 loan applications have been forwarded to Banks of which 4328

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loans have been sanctioned. State Bank of India have sanctioned 1607 loans out of

14756 loan applications received by them. Indian Overseas Bank have sanctioned

1314 loans out of 9239 loan applications received by them. He appealed to Banks to

advise their branches to expedite sanction and disposal of loan applications.

Shri W. Christopher Robin, Relationship Manager, NHB pointed out that though

4328 loans have been sanctioned, disbursement has not taken place in respect of

all loans and interest subsidy claim has not been made. He appealed to Banks to

expedite disbursement and submission of claim for subsidy.

Shri Joseph Mathew, DGM, SBI informed that their Bank received around 12000

loan applications and sanctioned 1610 loans. SBI returned around 2200 loan

applications. Some of the reasons for return of loan applications are incomplete

loan applications, non-submission of building estimate, non- compliance of KYC

norms, non-submission of income certificate, non-submission of building plan.

Further ineligible borrowers viz., age above 60yrs, patta not in the name of the

applicant, borrower is already owning a house, applicants who are already

defaulters to the Banks etc. Hence the Nodal Agency has to do preliminary

scrutiny to ensure that the loan applications are full & complete, which point has

been put across in earlier meetings also. Further the beneficiaries are also turning

towards another Government Housing Scheme as the subsidy and loan amount is

higher.

Shri M. Balakrishnan, DGM, Indian Bank concurred that Indian Bank has also faced

similar shortcomings and brought the same in the earlier meetings. The forum

after deliberation advised:

1) TNHB to make preliminary scrutiny and forward the applications in complete

form.

2) Banks to expedite sanction, disbursement and claim of subsidy.

3) Advised Banks to take note of the decision of Steering Committee leaving EMI /

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income ratio be left to the Banks &

4) Advised TNHB / TNSCB the nodal agencies to take note of Steering Committee

on the relaxation of plot size.

Action: Banks / TNHB / TNSCB / LDMs

AGENDA No: 10

BANK FINANCE UNDER HOUSING SCHEME:

The forum took on record that housing loan disbursement was to the tune of

Rs.3269.20 Crores against the target of Rs.1576.77 Crores.

The forum also noted that more number of loans viz., 4818 have been granted

under sub Rs.5 lacs category.

Agenda : 10(a)

GOLDEN JUBILEE RURAL HOUSING FINANCE SCHEME (GJRHFS)

The forum noted that 6682 loans to the tune of Rs.5987.15 Crores have been

disbursed during the year ended March 2011 under the Scheme.

Action: Banks

AGENDA No: 11

Educational Loans

The forum took on record that 157024 loans to the tune of Rs.2663.99 Crores

have been granted during the year ended March 2011, of which SC/ST, Minority

Communities & Women account for 27210 loans, 12967 loans & 44258 loans

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respectively.

Action: Banks

AGENDA No: 12

MICRO & SMALL ENTERPRISES (MSE) SECTOR

Shri S.N. Misra, GM, IOB & Convenor, SLBC, Tamil Nadu pointed out that coverage

under CGTMSE is poor in respect of many Banks and also in a few districts, which

needs to be improved.

Shri N.S. Vishwanathan, Regional Director, RBI explained that at the ground level

people have comfort with collateral security rather than guarantee. Further the

awareness level of the scheme at ground level is also very low.

Shri S.N. Misra, GM, IOB added that even plan outlay is very poor for Non Farm

Sector in districts like Ariyalur, Nagapattinam, Pudukottai, Perambalur,

Thiruvannamalai, Tiruvarur etc., and advised the Lead Banks of these districts to

revise the plan allocation to NFS and enhance the same.

The forum took on record the disbursement to MSE during the quarter ended

March 2011 to the extent of Rs.2442.66 crores & Rs.2868.61 Crores respectively.

Noting that only in respect of 5 Banks the share of Micro enterprises is 50% &

above consequent on which the State as a whole could not achieve 50% norms. The

forum advised Banks to ensure the share of Micro enterprises is enhanced to 55%

by March 2012.

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Action : Banks AGENDA No: 13

CREDIT FLOW TO WOMEN

The forum noted that the share of credit to women constituted 8.41% as of March

2011

Action: Banks

AGENDA No: 14

SELF HELP GROUPS (SHGs)

Shri Ganesh Kanna, AC(MC), TNCDW thanked the Banks for the excellent

cooperation in executing credit linkage target of 3000 crores by achieving

disbursement of Rs.3474.20 Crores.

He added that for the Current Year 2011-12 tentative target of Rs.5200 Crores

has been fixed and the district wise targets are furnished.

He also requested Banks to consider granting multiple doses of credit to SHGs to

meet their production & consumption needs.

The forum also advised Banks to consider the request of TNCDW on sharing the

data on MFI.

After the deliberations, the forum approved the tentative target of Rs.5000

Crores and advised Banks & TNCDW to work together for achieving the target in

the Current Year.

Action: Banks / TNCDW

AGENDA No: 15

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CREDIT FLOW TO MINORITY COMMUNITIES

Shri T. Rizwan Ahmed, Manager, TAMCO, called for details of credit disbursement

in addition to outstanding advance details.

The forum noted that only 5 Public Sector Banks have achieved the target in 2010-

11.

The forum after deliberations, advised Public Sector Banks to increase their

lending to Minority Communities so as to achieve the target of Rs.16281 Crores in

the Current Year.

The forum also advised Banks to provide disbursement details and advised SLBC to

revise the format.

Action : Public Sector Banks / SLBC

AGENDA No: 16

KISAN CREDIT CARD SCHEME (KCC)

Smt. Lalitha Venkatesh, CGM, NABARD pointed out that while the amount

disbursed under KCC has increased, the number of KCCs could not have gone down

in the year 2010-11. CGM, NABARD & Regional Director, RBI called for the details

of Banks which reported lesser number of cards during 2010-11 in comparison to

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2009-10.

Agriculture Production Commissioner requested for details of number of KCCs

issued by Banks up to June 2011 in Tamil Nadu in the Current Year.

The forum after deliberations suggested that the Action Plan for promotion of

JLGs / SHGs – KCC linkage advised by the Secretary, Agriculture Department,

Govt. of India at Block / Village level for aggregation at District / State level.

Action : Banks / LDMs /Agri.Dept.

AGENDA No: 17

Progress Report on Economic Development Schemes implemented by TAHDCO

Shri K. Harikrishna Pillai, Company Secretary, TAHDCO pointed out that subsidy

amount is released by TAHDCO with a stipulation that the loan has to be

sanctioned within 6 months from the date of release. However in 2010-11, Banks

returned subsidy to the tune of Rs.4.00 Crores thereby denying the benefit to

1600 beneficiaries. He appealed to Banks to avoid such return of subsidy in the

Current Year.

Action: Banks / TAHDCO

AGENDA No: 18

REVIEW OF NPA ACCOUNTS IN PRIORITY SECTOR LENDING –

DECEMBER 2010

The forum noted that NPA under Educational Loans is substantial.

The forum advised Banks to focus on reducing NPA by strengthening appraisal and

recovery procedures.

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Action: Banks / Nodal Agencies / LDMs

AGENDA No: 19

Success Story

Shri S.N. Misra, GM, IOB appealed to Banks to advise success stories to SLBC.

SLBC plans to publish the same as a separate booklet if more number of success

stories are received.

The meeting came to a conclusion with the vote of thanks proposed by Shri S.N.

Misra, GM, IOB & Convenor, SLBC, Tamil Nadu.