STATE LEVEL BANKERS’ COMMITTEE, · PDF fileprivate sector Bank for availment of crop...

STATE LEVEL BANKERS’ COMMITTEE, TAMILNADUCONVENOR: INDIAN OVERSEAS BANK

STATE LEVEL REVIEW MEETING – 2009: GROUP DISCUSSIONGROUP I – AGRICULTURE & ALLIED ACTIVITIES

Leader: Rapporteur:Shri. V M Venkatachalam Shri. S. SiddarthanSenior Manager Senior ManagerIndian Bank Lead Bank DepartmentHead Office Indian Overseas BankChennai 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 (2009-10) 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)

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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.


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.

V. 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)

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.

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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”.


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. National Agricultural Insurance Scheme (NAIS) (Referred by CommissionerComm. Of Agri, GOTN)

VIII. 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.


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.



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.


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 Govt. Departments should provide both forward and backward linkages such as training and skill development, procurement of raw materials at reasonable prices and marketing etc which are not adequately done at present. NGOs are also not

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taking much interest in this area. This has led to failure and render the units with low key activities unviable.


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 DISCUSSIONGROUP –II: INDUSTRIES & SERVICES_________________________________________________________Leader: Rapporteur:Shri. Rajendran Shri. T.R. SanthanamChief Manager Senior ManagerCanara Bank Lead Bank DepartmentCircle Office Indian Overseas BankChennai 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

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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.

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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 TahsildharsIssue:

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

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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.

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STATE LEVEL BANKERS’ COMMITTEE, TAMILNADUCONVENOR: INDIAN OVERSEAS BANK

STATE LEVEL REVIEW MEETING – 2009: GROUP DISCUSSIONGROUP –III: LEAD BANK SCHEME AND OTHER MATTERS

Leader: Rapporteur:Sri Rajmohan Shri. N. SampathChief Manager Senior ManagerState Bank of India Lead Bank DepartmentLocal Head Office Indian Overseas BankChennai 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 Format2. 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 Interest4. Disbursement Stages 5. Subsidy administration – mode of drawing subsidy6. Sponsoring Agency7. Target

Consensus:

a. Loan Application Format:

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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 be decided by the respective Banks/Branches.

e. Subsidy Administration :

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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

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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:

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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 orb) each borrower has to be insured for pro rata loan amount orc) 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)

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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 the NREGS payment through banks.

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.

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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.

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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)

S.No.

Name Age M/F Relationship Educational qualification

Business activity

Monthly Income

Annual Income

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11. Family’s total annual Income:

12. Whether having accounts with Bank : Yes / No If yes: Name of the Bank: Branch: 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: District:

Total area of the plot: Built in area of the house/plot:

Plinth area in the case of the flat: 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 :

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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 : Rs.

Loan Amount required : Rs.

Repayment period required : 180 months / 240 months

1. 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: Applicant(s) Signature

Encl: Copies of 1. Family Ration card

2. Copy of Voter’s ID card 3. Copy of Patta / Title Deed / Approved Plan4. 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 Tamilnadu Empowerment and Poverty Reduction Project

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 special credit

requirements are not being fully met. 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.

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• 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.

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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.

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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

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• 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.

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• 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.

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• 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 Mechanism Participants Periodicity1 PLF and SHG visit Bank Managers / Block,

TNCDW,VKP officials Fortnightly or As and when required

2. Block Level Co-ordination Committee Meeting (BLCC)

Bank Managers / Block, TNCDW,VKP officials and PLF office bearers

Once in a month

3 Block-level Bankers Meeting (BLBC)

LDM, AGM(NABARD), Block Bankers, Block officials, APO of MT(zonal officer for the block and PLF office bearers

Once in a quarter

4 District Project Coordination Committee Meeting (DPCC)

District Collector, PIU Officials, Convenor of lead Bank, AGM of NABARD, NGOs, District Coordinators of all banks and BLCC/ Federation representatives

Once in a month.

47

5 District Consultative Committee/DLRC/Standing Committee Meeting (DCM)

District Collector, PIU Officials, Convenor of lead Bank, AGM of NABARD, NGOs, District Coordinators of all banks and BLCC/ Federation representatives

Once in a month.

Special Agenda: 2 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

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.

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.

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.

B) Implementation of Weather Based Crop Insurance Scheme (WBCIS) on pilot basis in select Districts of Tamil Nadu during Rabi 2009-10

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 India Ltd

Ariyalur,Dharmapuri, Perambalur, Salem, Virudhunagar

2 ICICI Lombard General Insurance Company Ltd

DindigulVillupuram

3 IFFCO-Tokio General Insurance Company Ltd

Coimbatore

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 co-ordinate 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.

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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 Sub-Committee 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.

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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.

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Annexure IS.No Name of the Bank 'No-Frills’ a/c

opened (Nos)

General Purpose

Credit Cards issued (Nos)

Overdraft granted in No-Frills SB a/c

(Nos)

1 Allahabad Bank 1655 0

2 Andhra Bank 3009 5

3 Axis Bank Ltd. 8924

4 Bank of Baroda 27911 121

5 Bank of India 41383

6 Bank of Rajasthan Ltd. 51 29

7 Bank of Maharashtra 556

8 Canara Bank 262606 11278

9 Central Bank of India 29788 1220

10 Corporation Bank 49442 1159

11 City Union Bank Ltd. 32788

12 Dena Bank 1867 20

13 Dhanalakshmi Bank Ltd. 6641

14 Federal Bank Ltd. 3998 484

15 HDFC Ltd. 15405

16 ICICI BANK LTD. 156870

17 Indian Bank 1427679 5645 17702

18 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. 3169

22 Lakshmi Vilas Bank Ltd. 19645

23Oriental Bank of Commerce 1976

S.No Name of the Bank'No-Frills’ a/c

opened (Nos)

General Purpose

Credit Cards issued (Nos)

Overdraft granted in No-Frills SB a/c

(Nos)

Progress under Financial Inclusion by Banks - Cumulative position As on September 2009

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24 Pallavan Grama Bank 187097 308

25 Pandyan Grama Bank 396981 350

26 Punjab National Bank 13999 205 0

27 Punjab & Sind Bank 121

28 South Indian Bank Ltd. 39165 614

29 State Bank of India 419507

30State Bank of Bikaner & Jaipur 12

31 State Bank of Mysore 2896 19

32 State Bank of Patiala 31470 1

33State Bank of Travancore 2514

34 Syndicate Bank 17743 253

35Tamil Nadu Mercantile Bank Ltd. 20869 184

36Tamil Nadu State Apex Co.op Bank 133252 3597

37 Union Bank of India 52148 540

38 United Bank of India 38

39 UCO Bank 2081 3

Total 4193301 37144 24035

Annexure IIDistrict wise data on Financial Inclusion – Cumulative position

As on September 2009

S.NoName of the

District

'No-Frills’ a/c opened (Nos)

General Purpose Credit Cards issued (Nos)

Overdraft granted in SB a/cs (Nos)

1 Ariyalur 108614 2 Coimbatore 58980 2847 343 Cuddalore 452450 1057 100984 Dharmapuri 84115 164 467

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5 Dindigul 398821 2460 1426 Erode 121772 7 Kancheepuram 122890 8 Kanyakumari 157927 3132 41559 Karur 42172 635 771810 Krishnagiri 212386 335 114411 Madurai 479859 5846 12 Nagapattinam 137043 274 13 Namakkal 83020 541 26014 Nilgiris 43195 412 15 Perambalur 75312 16 Pudukottai 178756 17 Ramanathapuram 156848 18 Salem 325261 31 1019 Sivaganga 171083 19296 24420 Thanjavur 142365 21 Theni 71769 22 Thiruvannamalai 70253 850 4223 Tiruchirapalli 26610 363 1224 Tirunelveli 90169 35 1025 Tiruvallur 230107 65 26 Tiruvarur 92909 10 27 Tuticorin 188531 188 5428 Vellore 226877 888 529 Villupuram 65548 803 30 Virudhunagar 3374 71 257

Total 4619016 40303 24652Special Agenda: 4 SLRM: 2009

SETTING UP OF FINANCIAL LITERACY & CREDIT COUNSELLING CENTRES (FLCCC)

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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.

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.

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1. Tirunelveli & Trichy - Indian Overseas Bank2. Salem, Tiruvallur & Vellore - Indian Bank3. Dindigul, Theni, Erode & The Nilgris - Canara Bank4. Tuticorin & Ariyalur - State Bank of India

In the following Districts the assignee Banks have already set up RSETIs.

1. Tirunelveli District by Indian Overseas Bank2. 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.


Coverage of Unbanked / Under banked areas of the State:

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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:-

SlNo

Name of the District

Name of the Block

Total Geographical Area of the

Block in Sq. Kms

Total Population of the Block

Bank Branch SCB or RRB

1SalemKonganapuram 119.28 56875 Indian Bank,

Konganapuram

Kolathur 361.36 116511 Indian Bank, Kolathur

2Sivaganga Kannangudi 243.20 28839 Pandyan Grama Bank, Kannangudi

3Thiruvannamalai Jawadhu Hills 240.50 32153 Indian Bank, Jamanamarathur

4Villupuram Kalrayan Hills 600 49081 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.


Request for opening a branch of nationalized branch at Nachikulam in Thiruvarur District.

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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.


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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.

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STATE LEVEL BANKERS' COMMITTEE, TAMILNADUCONVENOR : INDIAN OVERSEAS BANK

PROGRESS IN DOUBLING OF AGRICULTURAL CREDITBY THE BANKING SYSTEM IN TAMILNADUFOR THE PERIOD 01.04.2009 TO 31.10.2009

Provisional(Rs. in lacs)

Sl.No

Particulars Co-op RRBS Comm.Bks

Total

1 Loans Issued: 83573.24 55450.16 1120178.97 1259202.37

1A Crop Loans 79788.85 51328.71 984075.78 1115193.34

1B Term Loans 3784.39 4121.45 136103.19 144009.03

2 No. of New Farmers Financed 44764 27671 320795 393230

3 No. of Agri Clinics Financed 20 0 9 29

4 % of New Loans issued of 1B above 12.36 22.96 31.54 33.64

5 Of 1 above, loans issued in respect of farmers who have been extended relief for

5a Distress 350 0 1126 1476

5b Arrears 10 0 1543 1553

5c OTS 8 0 1261 1269

6 SHGs formed for Tenant Farmers

Number 71 0 211 282

Amount 38.20 0 187.36 225.56

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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 31st 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.

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REVIEW ON BANKING DEVELOPMENTS IN TAMILNADU ON KEY PARAMETERS AS OF SEPTEMBER 2009

KEY PARAMETERS (Amount – Rs. in crores)

Parameters SEPT. 2008

SEPT.2009

VARIATION & % OF GROWTH OVER

SEPT.2008No. of Branches 5619 6078 459 Deposits

206877.19 251532.69 44655.50 (21.59%)Advances 247263.84 283604.36 36340.52 (14.70%)CD Ratio

120% 113% -7% Investments 1895.08 1665.91 -229.17 Credit + Investment to Deposit Ratio 120% 113% -7% Priority Sector Advances 92025.64 111865.03 19839.39 (21.56%)% of Priority Sector Advances to Total Advances 40.11 41.50 Agricultural Advances 33069.71 44506.66 11436.95 (34.58%)% of Agricultural Advances to Total Advances 14.41 16.51 Micro & Small Enterprises (MSE) 23319.39 40287.01 16967.62 (72.76%)% of MSE to Total Advances 10.16 14.95 Other Priority Sector Advances 35636.54 27071.36 -8565.18 -ve% of OPS Advances to Total Advances 15.53 10.04 Advances to Weaker Sections 17021.45 23318.25 6296.80 (36.99%)% of Weaker Section Advances to Total Advances 7.42 8.65 DRI Advances 45.96 86.33 40.37 (87.84%)% of DRI Advances to Total Advances 0.02 0.03

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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 SEPT. 2008

SEPT.2009

Variation

State Bank Group 817 887 70Nationalised Banks 3244 3471 227Private Sector Banks 1276 1418 142RRBs 259 280 21Foreign Banks 23 22 -1Total 5619 6078 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.

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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:

Parameter SEPT. 2008

SEPT.2009

Variation over Sept.2008

CD ratio of Commercial Banks 120% 113% -7%

Credit + Investment to deposit 120% 113% -7%

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%.

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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 2007- September 2008) was 9.98%.

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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

National Norms for March 2010

Achievement upto September 2009

% Target Amount

% Amount

Priority Sector Advances to Total Advances 40 107824.42 41.50% 111865.03

Agricultural Advances to Total Advances 18 48520.99 16.51% 44506.66

Weaker Section Advances to Total Advances 10 26956.11 8.65% 23318.25

DRI Advances to Total Advances of previous year 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.

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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 : 113%(b) Including Co-operative Banks : 113%(c) Credit + Invest. Deposit Ratio (Comm.Bks.) : 113%(d) Credit + Investment Deposit Ratio : 115%

(including Co-operative Banks)

DISTRICTWISE PERFORMANCE OF COMMERCIAL BANKS IN TAMILNADU

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%.

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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 -- 11.67%Tiruppur -- 15.59%Tiruvallur -- 15.37%Virudhunagar -- 11.58%

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REVIEW OF OPERATIONS OF CO-OPERATIVE BANKS IN TAMILNADU AS AT THE END OF SEPTEMBER 2009

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.

Classification of BranchesSEPT. 2008

SEPT.2009

Rural 283 244Semi-Urban 183 216Urban 205 187

Metro 111 139TOTAL 782 786

(Amount – Rs. in Crores)

ParticularsSEPT. 2008

SEPT.2009

Deposits 13042.53 17452.14Advances 15241.70 19322.24Investments 5988.43 5845.84

CD Ratio 116.86% 110.72%Credit + Investment to Deposit Ratio 162.78% 144.21%

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(Amount – Rs. in Crores)

S.No. ParticularsSEPT. 2008

SEPT.2009

1 Agricultural Advances 2161.24 2317.57 Of which, Direct Advances 396.96 1140.052 Micro & Small Enterprises 648.69 840.633 Education 470.63 518.154 Housing 35.93 68.975 Micro Finance & Others 350.41 813.50 TOTAL PRIORITY SECTOR ADVANCES 3666.90 4558.82

ADVANCES UNDER SPECIAL PROGRAMMES / SCHEMES / SECTORS

(Amount – Rs. in crores)

SEPT. 2008

SEPT.2009

Total Advances to Weaker Sections 1367.64 2486.84 Of which,

(i) Advances under SC/ST 313.87 385.25 (ii) Advances under IRDP/SGSY 62.51 40.06 (iii) Advances under DRI 9.75 282.81

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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.

Amount in Rs. crores

SectorCredit Allocation Credit Disbursed

% of AchievementApril 2009 to

September 2009April 2009 to September 2009

Farm 11005.73 11334.78 103Non-Farm 5056.17 4507.42 89OPS 4847.62 4609.30 95

TOTAL 20909.52 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.

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A COMPARATIVE POSITION OF DISBURSEMENT UNDER ACP UPTO QUARTERS ENDED SEPTEMBER 2008 AND SEPTEMBER 2009 IS FURNISHED BELOW:

Amount Rs. in crores

SectorCredit disbursed from April 2008 to Sept.2008

Credit disbursed from April 2009 to Sept.2009

Variation in percentage

Farm 9534.94 11334.78 18.88Non-Farm 3784.23 4507.42 19.11OPS 3997.16 4609.30 15.31TOTAL 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

% of Achieve-

ment

Sl. No.

District % ofAchieve-

ment1. VELLORE 126 11. KRISHNAGIRI 1032. DHARMAPURI 125 12. MADURAI 1023. TIRUCHIRAPPALLI 117 13. TIRUPPUR 1024. VIRUDHUNAGAR 116 14. NILGIRIS 1015. KARUR 110 15. SALEM 1016. T.V.MALAI 108 16. ERODE 1017. DINDIGUL 106 17. THENI 1018. TIRUVALLUR 105 18. COIMBATORE 1009. CUDDALORE 104 19. KANCHEEPURAM 10010. RAMANATHAPURM 103

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.

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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. District

% of Achieve-

ment

Sl.No. District

% of Achieve-

ment1. VIRUDHUNAGAR 177 13. TIRUPPUR 1032. TIRUCHIRAPPALLI 133 14. KRISHNAGIRI 1033. VELLORE 129 15. MADURAI 1024. KARUR 127 16. PERAMBALUR 1025. DHARMAPURI 117 17. TIRUVALLUR 1016. RAMANATHAPURM 116 18. KANCHEEPURAM 1017. CUDDALORE 116 19. THENI 1018. T.V.MALAI 114 20. NILGIRIS 1009. SIVAGANGA 112 21. COIMBATORE 10010. SALEM 109 22. ERODE 10011. DINDIGUL 108 23. KANYAKUMARI 10012. NAGAPATTINAM 104

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.

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Sl.No. District % Sl.No. District %1. VELLORE 225 8. MADURAI 1022. TIRUCHIRAPPALLI 124 9. THENI 1023. DHARMAPURI 120 10. TIRUPPUR 1024. TIRUVALLUR 113 11. KARUR 1005. NILGIRIS 104 12. COIMBATORE 1006. DINDIGUL 104 13. KANCHEEPURAM 1007. ERODE 102

Sl.No. District % Sl.No. District %1. SIVAGANGA 44 4. NAMAKKAL 342. CUDDALORE 44 5. NAGAPATTINAM 93. TIRUVARUR 43 6. TUTICORIN 8

C. Other Priority Sector:

Sl.No. District % Sl.No. District %1. PUDUKOTTAI 293 10. DINDIGUL 1022. VIRUDHUNAGAR 184 11. TIRUPPUR 1023. DHARMAPURI 149 12. THENI 1024. KRISHNAGIRI 123 13. KARUR 1015. VILLUPURAM 120 14. NILGIRIS 1016. VELLORE 108 15. COIMBATORE 1017. TIRUVALLUR 105 16. ERODE 1018. SALEM 103 17. THANJAVUR 1019. MADURAI 102 18. KANCHEEPURAM 100

Districts other than the above have registered less than 100% achievement.

The performance of Banks in the following districts under Non-Farm Sector 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.

Performance of Banks in Tamilnadu under Other Priority Sector Advances works out to 95% of the proportionate plan allocation upto the second quarter ended September 2009. Performance of the following 18 districts is 100% & above.

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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.

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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.

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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.

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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 31.10.2009Amount in Rs. Lacs

S.No. PARTICULARSOCTOBER 2009

ECONOMIC ACTIVITY REVOLVING FUND TOTAL

SHG INDIVIDUALS TOTAL 1 No. of Loans granted 2522 4821 7343 30410 377532 Swarozgaris 34057 4821 38878 468987 5078653 Amount Disbursed 7699.30 304.75 8004.05 15205.00 23209.054 % of Credit disbursment to Annual Target 109.38%5 Subsidy Utilised 2506.45 122.08 2628.53 3041.00 5669.536 Credit Subsidy Ratio 3.07 2.50 3.05 5.00 4.097 Coverage Under:- SC/ST 17791 2041 19832

% (Norm 50%) 52.24 42.34 51.01 WOMEN 33082 2728 35810 % (Norm 40%) 97.14 56.59 92.11 DISABLED 886 1908 2794 % (Norm 3%) 2.60 39.58 7.19

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.

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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. LacsAGENCY CREDIT DISBURSED

Economic ActivityCommercial Banks 5748.49RRBs 625.84Co-operative Banks 1442.63Other Banks 187.09TOTAL CREDIT UNDER ECONOMIC ACTIVITY 8004.05

CREDIT UNDER REVOLVING FUND 15205.00TOTAL CREDIT TO SGSY 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)

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DISTRICT / AGENCYWISE CREDIT DISBURSED UPTO THE MONTH OF OCTOBER 2009S.No District Revised

TargetRevolving

FundCredit Disbursed for Economic Activity Total

CreditCom.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

30 Virudunagar 604.94 189.50 211.72 54.28 177.41 0.00 632.90

31 Tirupur 40.00 58.50 9.75 9.75 0.00 118.00TOTAL 21218.98 15205.00 5748.49 1442.63 625.84 187.09 23209.05


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 PROGRAMMEDisbursement made during the Quarter

Outstanding position as of September 2009

Accounts Amount Accounts Amount

1 SGSY 7130 112.08 98706 533.27

2 PMRY */PMEGP 33 0.32 29973 98.05

3 DRI 2508 8.40 18294 28.95

4 Micro & Small Enterprises 2206 136.31 59568 1085.19

5 OTHERS 323438 3057.96 2590955 12905.73

TOTAL 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 (Rs.in Crores)Sl. No.

District Mahalir Thittam Non - Mahalir Thittam

Total

Target Achi. Target Achi. Target Achi.1 Ariyalur 32.00 2.00 7.00 1.01 39.00 3.012 Chennai 103.00 39.75 91.00 20.38 194.00 60.133 Coimbatore 50.00 14.89 13.00 4.25 63.00 19.144 Cuddalore 65.00 29.58 22.00 4.73 87.00 34.315 Dharmapuri 85.00 56.58 55.00 28.46 140.00 85.046 Dindigul 44.00 6.38 6.00 9.10 50.00 15.487 Erode 57.00 17.31 13.00 6.01 70.00 23.328 Kancheepuram 70.00 31.96 17.00 14.10 87.00 46.069 Kanyakumari 75.00 29.21 24.00 18.85 99.00 48.0610 Karur 34.00 13.53 3.00 3.53 37.00 17.0611 Krishnagiri 35.00 10.47 85.00 121.00 120.00 131.4712 Madurai 58.00 26.01 22.00 14.86 80.00 40.8713 Nagapattinam 45.00 23.50 16.00 3.52 61.00 27.0214 Namakkal 45.00 21.02 6.00 5.11 51.00 26.1315 Nilgiris 26.00 6.78 6.00 5.91 32.00 12.6916 Perambalur 14.00 5.60 1.00 0.47 15.00 6.0717 Pudukottai 58.00 15.70 39.00 11.16 97.00 26.8618 Ramnad 32.00 6.54 19.00 5.08 51.00 11.6219 Salem 65.00 20.99 13.00 23.05 78.00 44.0420 Sivagangai 45.00 12.64 6.00 6.79 51.00 19.4321 Thanjavur 58.00 9.17 12.00 4.95 70.00 14.1222 Theni 50.00 19.81 13.00 8.28 63.00 28.0923 Thirunelveli 90.00 46.69 29.00 19.22 119.00 65.9124 Thiruvallur 58.00 23.80 23.00 8.66 81.00 32.4625 Thiruvannamalai 60.00 37.33 23.00 9.73 83.00 47.0626 Thiruvarur 39.00 8.63 13.00 3.89 52.00 12.5227 Thoothukudi 45.00 17.23 9.00 6.55 54.00 23.7828 Tiruppur 40.00 10.63 14.00 1.15 54.00 11.7829 Trichy 52.00 25.21 13.00 9.79 65.00 35.0030 Vellore 75.00 26.77 14.00 4.85 89.00 31.6231 Villupuram 75.00 40.56 26.00 9.99 101.00 50.5532 Virudhunagar 48.00 15.90 19.00 7.93 67.00 23.83

Total 1728.00 672.17 672.00 402.36 2400.00 1074.53REVIEW NOTE: 10 SLRM: 2009

107

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:

Amount in Rs. CroresSl. No.

Name of the Community

Outstanding Position as ofSeptember 2009

Account Amount1. Muslim 734631 4703.662. Christian 933504 5778.523. Sikh 1022 77.664. Zorastrian 214 58.465. Neo Buddist 10760 40.98

Total 1680131 10659.28

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 toHousing 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 feedback 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 theQuarter 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

AnnexureBank Finance under Housing Scheme – Direct Housing FinanceProgress Report during the quarter ended September 2009

(Rs.in Lacs)Sl.No. Name of the Bank Credit Disbursement

1 Allahabad Bank 15.00

2 Andhra Bank 709.90

3 Bank of Baroda 2374.60

4 Bank of Maharashtra 272.00

5 Canara Bank 3724.58

6 City Union Bank Ltd. 3535.45

7 Corporation Bank 1883.82

8 Dena Bank 138.00

9 Federal Bank Ltd., 3207.00

10 ICICI Bank Ltd. 790.00

11 Indian Bank 9318.00

12 Indian Overseas Bank 8950.00

13 Ing Vysya Bank Ltd. 623.55

14 Jammu & Kashmir Bank Ltd. 1.25

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 27.81

22 State Bank of Mysore 1986.00

23 State Bank of Patiala 130.23

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 611.25Total 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

ParticularsScheduled Castes

Scheduled Tribes Others Total

No. Amt. No. Amt. No. Amt. No. Amt.Total Loans sanctioned during the Quarter

309 611.78 27 39.15 1426 3880.76 1762 4531.69

Total Loans disbursed during the Quarter

256 506.78 26 38.15 1132 3358.18 1414 3903.74

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

(Amount in Rs.Lacs)Sl. No.

Name of the BankCrop Loans Term Loans Total

No Amount No Amount No Amount1 Allahabad Bank 70 51 0 0 70 512 Andhra Bank 396 193 0 0 396 1933 AXIS Bank 397 1198 350 1290 747 24884 Bank of Baroda 1115 785 345 143 1460 9285 Bank of India 18967 5798 1794 232 20761 60306 Canara Bank 26967 11592 1285 1155 28252 127477 Central Bank of India 493 116 91 19 584 1358 City Union Bank Ltd. 54 39 0 0 54 399 Corporation Bank 2623 900 44 884 2667 178410 Dena Bank 13 10 0 0 13 1011 Federal Bank Ltd. 6 33 0 0 6 3312 HDFC Ltd. 25 71 1335 2429 1360 250013 Indian Bank 30296 16003 603 784 30899 1678714 Indian Overseas Bank 71306 34492 5190 2844 76496 3733615 ING Vysya Bank Ltd. 15 9 3 1 18 1016 Karur Vysya Bank Ltd. 186 47 3 1 189 4817 Pallavan Grama Bank 6473 2420 1047 2278 7520 469818 Pandyan Grama Bank 27957 1982 0 0 27957 198219 Punjab National Bank 1306 1243 0 0 1306 124320 South Indian Bank Ltd. 22 12 1 1 23 1321 State Bank of India 148045 70103 0 0 148045 7010322 State Bank of Mysore 644 354 0 0 644 354

23 Tamilnadu Mercantile Bank Ltd. 110 42 170 58 280 100

24 Tamilnadu State Apex Co-op.Bank Ltd. 268783 53747 4710 1045 273493 54792

25 UCO Bank 6130 4015 4808 2897 10938 691226 Union Bank of India 14787 6030 2024 844 16811 687427 Vijaya Bank 124 108 0 0 124 108

TOTAL 627314 211403 23803 16905 651117 228308

113


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 BankDISTRICTS

TChennai Coimbatore Madurai Ramnad Thanjavur Virudhunagar

1 Andhra Bank 1 12 Bank of Baroda 9 93 Bank of India 1 12 134 Canara Bank 3 3 4 4 8 225 C.B.I 19 4 236 Corporation Bank 5 57 Indian Bank 1 8 98 I.O.B. 22 1 4 6 339 ING Vysya Bank 1 110 P.G.B (Pandyan) 1 25 2611 P.N.B 1 112 S.B.I 1 4 1 1 2 2 1113 S.B.T 1 114 UCO Bank 1 1

TOTAL 36 29 10 17 25 39 156

114

115

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