P R E F A C E

State Bank of India has been the Convenor, SLBC - Delhi State upto October 2011 and has successfully conducted 65 SLBC Meetings in the State. The assignment of Convenor, SLBC - Delhi State has now been given to Oriental Bank of Commerce w.e.f. November 2011. We are thankful to the Government of India for giving this prestigiousresponsibility to our Bank. This SLBC Meeting is the first meeting Oriental Bank of Commerce is conducting after becoming Convenor. We are also thankful to Reserve Bank of India and State Bank of India for providing us their support and guidance for the smooth functioning of SLBC.

We are pleased to inform that we have received quarterly SLBC Data from all the 33 Member Banks in time and we have been able to incorporate the data of all Member Banks in this Agenda Book. We are quite confident to receive same type of cooperation from all concerned in future also.

With Deep Regards,

Atul Gautam
Field General Manager
Oriental Bank of Commerce
SLBC Convenor – Delhi State

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66TH STATE LEVEL BANKERS’ COMMITTEE MEETING FOR NCT OF DELHI FOR THE QUARTER ENDED DECEMBER 2011

CALENDER OF FORTHCOMING SLBC MEETINGS DURING THE CALENDER YEAR 2012

Sr. No. / Quarter Ended / Date of Meeting / Cut Off Date for Receipt of Data at SLBC Deptt.
1. / March 2012 / 14/05/2012 / 15/04/2012
2. / June 2012 / 14/08/2012 / 15/07/2012
3. / September 2012 / 14/11/2012 / 15/10/2012

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66TH STATE LEVEL BANKERS’ COMMITTEE MEETING FOR NCT OF DELHI FOR THE QUARTER ENDED DECEMBER 2011

KEY INDICATORS

(Rs. In Crores)

S.

NO.

/

ITEMS

/ DEC. 10 / MAR.11 / DEC.11 / BENCH-MARK
1. / DEPOSITS / 510499.06 / 546848.06 / 562387.71
2. / A) ADVANCES / 419221.83 / 470562.76 / 486864.00
B) INVESTMENTS / 605.36 / 605.36 / 2975.12
3. / A)CD RATIO / 82.12 / 86.05 / 86.57 / 60%
B)C+I:D RATIO / 82.24 / 86.16 / 87.10
4. / PRIORITY SECTOR ADVANCES (PSA) / 58423.68 / 67308.30 / 61199.34
5. / % PSA TO TOTAL ADVANCES / 13.94 / 14.30 / 12.57 / 40%
6. / AGRI. ADVANCES / 17974.60 / 21047.37 / 11023.08
7. / % AGRI. ADVS. TO TOTAL ADVS. / 4.29 / 4.47 / 2.26 / 18%
8. / MICRO & SMALL ENTERPRISES ADVANCES (MSE) / 27596.17 / 28077.73 / 30122.47
9. / %AGE OF MSE ADVS. TO PSA / 47.23 / 41.72 / 49.22
%AGE OF MSE ADVS. TO TOTAL ADVS. / 6.58 / 5.97 / 6.19
10. / ADVANCES TO WEAKER SECTION / 1533.45 / 1766.53 / 2183.88
11. / % WEAKER SECTION ADVS. TO TOTAL PSA / 2.62 / 2.62 / 3.57 / 10%
12. / DRI ADVANCES / 8.75 / 9.32 / 11.14
13. / % DRI ADVANCES TO TOTAL ADVANCES / 0.002 / 0.002 / 0.002 / 1%
14. / ADVANCES TO WOMEN / 7452.81 / 8571.04 / 8264.15
15. / %WOMEN ADVANCES TO PSA / 12.76 / 12.73 / 13.50
16. / ADVANCES TO MINORITIES / 3936.06 / 3965.58 / 4147.31
17. / % MINORITIES ADVANCES TO PSA / 6.74 / 5.89 / 6.78
18. / BRANCH NETWORK
A)RURAL
B)SEMI URBAN
C)METROPOLITAN
TOTAL BRANCHES / 97
75
2083
2255 / 99
75
2130
2304 / 116
58
2299
2473

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66TH STATE LEVEL BANKERS’ COMMITTEE MEETING FOR NCT OF DELHI FOR THE QUARTER ENDED DECEMBER 2011

AGENDA NO. 1

CONFIRMATION OF MINUTES OF THE 65TH STATE LEVEL BANKERS’ COMMITTEE MEETING FOR THE QUARTER ENDED SEPTEMBER 2011 HELD ON 11.11.2011

MINUTES OF THE MEETING

The 65th SLBC Meeting, for the quarter ended September 2011, held on the 11th November, 2011 at Hotel 'Le-Meridian', New Delhi, was chaired by Shri B. Sriram, Chief General Manager, State Bank of India, Local Head Office, New Delhi, and Chairman SLBC, NCT of Delhi and attended by the member banks and a few representatives of Government Departments, as per list placed at Annexure-1.

Shri H.R. Jat, AGM (Lead Bank), SBI, Local Head Office, New Delhi welcomed Shri B. Sriram, Chief General Manager, State Bank of India, Local Head Office, New Delhi & Chairman SLBC, NCT of Delhi, Shri Chandan Sinha, Regional Director, Reserve Bank of India, New Delhi, Dr. Tarsem Chand , Director, Ministry of Finance, Government of India, Shri Rakesh Puri, General Manager, State Bank of India, Ms. Sonali Sen Gupta, General Manager RPCD, Reserve Bank of India, New Delhi, Shri R.K. Ahuja, Dy. Secretary Finance, Government of NCT of Delhi, Shri Akhilesh Kumar, Dy. General Manager (SME), State Bank of India, Shri K. Sapru, Dy. General Manager, NABARD, Shri Atul Gautam, Field General Manager, Oriental Bank of Commerce and representatives of Central/State Government and banks. Shri Jat requested Shri B. Sriram, the Chairman SLBC, to deliver keynote address.

Address by Sh. B. Sriram, Chief General Manager, S.B.I.

At the outset, Shri Sriram welcomed all the participants and informed them that as per the directions of Ministry of Finance, Government of India, the responsibility of SLBC convenor for NCT of Delhi has been shifted from State Bank of India to Oriental Bank of Commerce and, as such, this would be the last SLBC Meeting hosted by State Bank of India. He also assured Shri Atul Gautam, Field General Manager, Oriental Bank of Commerce full co-operation from State Bank of India.

Shri Sriram covered the following points :-

C D RATIO: (Bench Mark 60%)

ALL BANKS: 81.92% - increased by 757 bps over Sept. 2010 with a growth in both deposits & advances.

C D Ratio of Rural Branches increased from 56.11% to 69.75% over Sept. 2010.

FINANCIAL INCLUSION (FI)

As regards coverage of villages having 2000+ population in Delhi, Shri Sriram informed the House that originally there were 113 villages out of which names of 3 villages, which are not traceable/ do not exist have been deleted as per the recommendations of the relative standing sub-committee. As such, the net number of villages, required to be covered for providing of banking facilities is 110. Out of 110, banking facilities have since been provided in 60 villages and 50 villages still remain to be covered. As the stipulated date for coverage of all villages i.e. 31.03.2012 is drawing very near, Shri Sriram appealed to all the Banks, which are yet to achieve their targets, to initiate urgent action with a view to extending banking facilities in atleast 90-95% of the villages by 31.12.2011. He applauded the performance of banks, including State Bank of India , Union Bank , Allahabad Bank and State Bank of Patiala, who have achieved their targets by covering all the villages allotted to them.

Shri Sriram informed the participants that around 17 lacs "No- Frills accounts" have been opened by various banks but most of these accounts are lying inoperative. He emphasized that mere opening of these accounts does not serve any purpose and Financial Inclusion in true sense would be by identifying and fulfilling the credit needs of these people. He expressed displeasure and stated that despite repeated requests at various forums, including SLBC meetings, concrete action is not visible as yet.

ACHIEVEMENT UNDER ANNUAL CREDIT PLAN DURING 2011-12

Shri Sriram expressed displeasure on dismal performance of all banks in the area of Annual Credit Plan. Against the budgeted targets of 540 crores, achievement is only 167 crores which comes to only 30%. He requested NABARD and all the Banks to work together with a view to improve performance in this area. He expressed hope that better results will come out in near future.

PRIORITY SECTOR LENDING : (Bench mark 40%)

As regards Priority Sector Lending, Shri Sriram expressed displeasure as the achievement was only 11.78% against the benchmark of 40%. Out of total advances of Rs.401459 crores Priority Sector Advances are only Rs. 47308 crores which comes to 11.78% only. Worrying factor is that total Priority Sector figures have come down by Rs. 5502 crores over September 2010.

Thirteen banks have reported negative growth in their Priority Sector lendings. Out of these thirteen banks 5 banks, have reported decline of more than 500 crores. They should examine the reasons for huge variations and report the same to us. We have huge potential in Delhi for Service Sector and MSE which is needed to be tapped.

Sub-Committee constituted last time to examine the reasons for low ratio of Priority Sector Advances met on 09.09.2011. The minutes of sub-committee are also kept in the Agenda booklet.

AGRICULTURAL ADVANCES : (Bench mark 18%)

Shri B. Sriram informed the participants that Agriculture Advances consist of around 2% of Total Advances, which is extremely low and the worrying factor is that total agriculture advances have decreased by Rs. 11312 crores over the year. He, therefore, requested the participant banks to look into the reasons for low performance in the Agriculture Segment. Only 4 banks, viz. Canara Bank, State Bank of India, State Bank of Patiala and Vijaya Bank have shown positive growth. It appears that the focus in Delhi is towards non-agriculture sectors. He, therefore, urged the participants not to undermine the importance of Agriculture and reminded them of the penalty by way of putting the funds in RIDF if the performance is less than 18%.

MICRO, SMALL & MEDIUM ENTERPRISES (MSME) ADVANCES :

MSME advances decreased by Rs.389 crores over the year. Shri Sriram regretted that Agriculture Advances, MSME and all other Priority Sector Advances have come down due to continuous negative growth during the last year. He appealed to all the participants to ponder over this factor and to adopt corrective measures to bring the performance to the 2010 level and then make further achievement. He expressed hope that all the banks will make necessary efforts in this direction.

GOVT. SPONSORED SCHEMES :

PMEGP: Against target of 304 projects only 120 loans have been sanctioned and 64 loans disbursed upto 30.09.2011. Some cases of last year are still pending with few Banks. Despite holding of various monitoring committee meetings, desired results were not evidenced. He, therefore, requested the participating banks to make necessary efforts to achieve the targets.

RECOVERY POSITION IN PMRY

Only 33.32%. Considering the low level of recovery, Sh. Sriram re-emphasized the need for early promulgation of “Public Monies Recovery Act" by Delhi State Government.

DRI ADVANCES (Benchmark 1%)

Out of total advances of Rs. 401459 crores, the DRI figures form only Rs. 11 crores i.e. 0.002% against the benchmark of 1%. The figure is negligible and the banks appeared to have done nothing in this area. Shri Sriram referred to the recommendations of Sub-committee and requested the member banks to hold atleast one Credit Camp in each quarter to create enthusiasm and awareness amongst Branch Managers. He requested the member banks to take care of economically weaker segment and their needs through this Scheme.

He also made a mention of the mega DRI loan function organized by State Bank of India on 18.09.2011 at Mavalankar Hall which was graced by the Chief Secretary, Delhi Government as Chief Guest. The function was attended by RBI, NABARD and executives of other Banks. In this function 1539 beneficiaries were disbursed loan of Rs. 115.42 lacs and 168 Self Help Groups were linked involving amount of Rs. 84.00 lacs.

ADVANCES TO SPECIFIED MINORITY COMMUNITIES :

Advances to Specified Minority Communities increased by Rs. 440 crores over the year. Shri Sriram requested all banks to explore potential among these classes of beneficiaries.

FLCC

Shri Sriram informed the House that FLCCs of State Bank of India and Punjab National Bank are functioning actively. The FLCC opened by SBI at Najafgarh Village has conducted 18 programmes. 377 persons have so far visited the FLCC. 164 persons have been benefitted by way of opening of accounts including housing loans and education loans.

As regards opening of another FLCC by State Bank of India, he informed the House that several surveys at different locations, i.e., Alipur and Kanjhawala blocks have since been carried out and continuous efforts are being made to find a suitable space. He expressed hope that second FLCC will be opened by State Bank of India very soon. He also requested the representatives from Corporation Bank and Union Bank of India to apprise the House of the developments in this regard.

SUBMISSION OF SLBC DATA

The Chairman SLBC urged the member banks to submit their data in time and accurately to enable the convenor bank to hold SLBC meeting within 45 days. He also mentioned that 5 banks have failed to submit their data till printing of the booklet (i.e. 25.10.2011). Names of these Banks have been mentioned in the booklet as well as reported to RBI. IDBI Bank submitted incomplete data.

REGISTRATION OF CONVEYANCES IN NEW DELHI

As several cases of multiple finance on the same property have surfaced in some Banks due to difficulties faced during search of records in the office of Registrar as records in offices of Registrar are not updated property wise, the Chairman SLBC repeated his request to the State Govt. to take up the matter for streamlining the procedure of registration of records.

ESTABLISHMENT OF DIRECTORATE OF INSTITUTIONAL FINANCE(DIF)

As loans to various priority sectors are not being channelized properly it was proposed to Delhi State Government in the previous SLBC to set up Directorate of Institutional Finance (DIF) on the lines of several other States. Shri Sriram requested the State Govt. to take positive steps in this direction. This will help in improving credit flow to various priority sector segments in the State.

As the overall performance of all the Banks in all Segments was not satisfactory Shri B. Sriram, Chairman, SLBC, concluded his address with a request to all member banks to make necessary efforts with a view to improve their overall performance. He expressed hope that the position will improve in the next two quarters.

Shri Chandan Sinha, Regional Director, Reserve Bank of India, New Delhi

Shri Sinha, at the outset, expressed thanks to Shri B. Sriram, Chairman SLBC and Chief General Manager, State Bank of India for successfully managing 65 SLBC meetings for the State of NCT of Delhi. He stated that performance wise, Delhi is more challenging in comparison to other States. As regards the flow of credit, Agriculture is shrinking and industry has also shrunk. Referring to the study conducted by RBI, based on the data publically available, Shri Sinha informed the participants that 93.51% of GSDP of Delhi comes from the Service Sector. Agriculture is roughly about 1%, and industries only about 5%. Agriculture is contributing less as agricultural land in Delhi is shrinking. Industries have moved out due to various reasons including pollution norms and this makes service sector as most important sector and we should focus on this. Even the data available indicates that Service Sector in Delhi is performing well, in some areas beyond targets. Referring to Financial Inclusion, where 50 villages are yet to be covered and comparing the facilities/infrastructure available in Delhi with other State, Shri Sinha expressed serious concern and opined that all the 110 villages should have been covered by now. As such, he agreed with Sh. B. Sriram and urged the participant banks to achieve the target by the end of December 2011. As far as DRI advances are concerned Sh. Sinha stated that DRI loans are shrinking all over the country, but in Delhi the picture is really dismal as the share of DRI has shrunk to 0.002%. As DRI loans entail very low cost, as compared to the market rates of interest, the viability and recovery in these advances can be taken for granted. As regards opening of FLCCs in Delhi, Sh. Sinha opined that there is no dearth of infrastructure and other facilities in Delhi. Besides, almost all banks are having presence in rural areas of Delhi. As such, there is need of very small extra efforts and the banks can easily open and manage FLCCs in Delhi. Referring to delay in submission/submission of wrong SLBC data, he expressed unhappiness as the same has become a perennial problem. Shri Sinha expressed his satisfaction as level of participation of banks has improved and government representation has also improved. He also expected active participation of all the members.

Dr. Tarsem Chand, Director, Ministry of Finance, Government of India.

Referring to the previous speakers, Dr. Tarsem Chand advised the participants to ponder over the reasons of failure in various sectors and take corrective measures for the same. He laid emphasis on Priority Sector Advances including Housing Loan upto 25 lacs, education loan, MSE Sector where the

targets are fixed by Prime Minister Task Force and Reserve Bank of India. He reminded the participants of the importance being attached to Financial Inclusion by the Government of India and requested the banks to achieve the targets allotted to them for extending banking facilities in all the villages. He deplored the fact that in Delhi the banks are lacking in all sectors. Referring to the role of SLBC, Dr. Tarsem Chand expressed the view that this is an open forum where reasons for failure and hardships being faced in achieving the targets can be discussed and member participants can seek guidance from other members of the forum. He also advised the Private Sector Banks to participate actively in SLBC deliberations.

Shri K. Sapru, DGM, NABARD:-

Addressing the participants Shri Sapru laid emphasis on KCC, SHG, JLG and ACP. He regretted that, despite repeated requests and assurances , the banks are not performing in these key areas. Referring to Kisan Credit Cards, he informed the participants that there are around 20000 farmers in Delhi and despite repeated requests even 10000 farmers have not been covered during last two years. Considering the facts that Agriculture land is shrinking in Delhi and proper record of land holding is not available, he suggested that the farmers should be given credit under JLG Scheme. Shri Sapru also advised the participants of incentives being given by NABARD for financing under JLG Scheme. Coming to Self Help Groups, Shri Sapru stated that till date, around 3000 SHGs have been formed, out of which around 2000 have been linked/extended credit facilities. In Delhi the total annual target for formation and credit linkage is 1000 and 600, respectively. In case of difficulties being faced by the bank dues to time and staff constraints, he suggested the banks to seeks support of NGOs for formation of SHGs. He also mentioned that for formation of each SHGs, NABARD is giving grant of Rs. 4000/-. As regards performance of banks under ACP, he agreed that Agriculture land in Delhi is shrinking day by day but there is no lack of potential with a view to meeting the targets under ACP. He suggested the banks to extend credit facilities to farmers under various other Schemes covering green house farming, hybrid crop production, horticulture and floriculture etc. He referred to the sanction of a project by NABARD to I.A.R.I. under which around 240 farmers from four villages will be imparted training for growing hybrid vegetable seeds. He requested the banks to ask their Branch Managers to involve in that process and to contact those farmers for evaluating their needs and extending credit facilities to them. Regarding Financial Inclusion, Shri Sapru agreed with other speakers that despite abundance of availability of infrastructure in Delhi, a few of the banks have not yet extended banking facilities in the villages allotted to them. He also suggested the SLBC Convenor bank to send a D.O. letter to all such banks.