67TH STATE LEVEL BANKERS’ COMMITTEE MEETING FOR NCT OF DELHI FOR THE QUARTER ENDED MARCH 2012
INDEX - AGENDA ITEMS AND BACKGROUND PAPERS
AgendaNo. / AGENDA ITEMS / Page No.
Calendar of Next SLBC Meetings / 1
Key Indicators / 2
1 / Confirmation of Minutes of 66th SLBC Meeting held on 13th February 2012 / 3
2 / Action Points of the 66th SLBC Meeting / 15
3 / Credit Deposit Ratio / 22
4 / Financial Inclusion / 23
5 / Achievements under Annual Credit Plan for Delhi (Rural) / 26
6 / Advances to Priority Sector / 27
7 / Agriculture Advances / 29
8 / MSE & MSME Advances / 31
9 / Housing Finance / 33
10 / Prime Minister’s Employment Generation Programme (PMEGP) / 35
11 / Swaran Jayanti Shahri Rojgar Yojana(SJSRY) / 36
12 / Recovery of Advances / 37
13 / Kisan Credit Card / 39
14 / Self-Help Groups / 40
14A / Joint Liability Groups / 42
15 / Advances to Women Entrepreneur / 43
16 / Advances to Weaker Sections / 44
17 / Advances to Minority Communities / 45
18 / Credit Flow to Disabled Persons / 47
19 / Differential Rate of Interest Scheme (DRI) / 48
20 / Credit Flow to Ex-Servicemen & Widows of Ex-Servicemen and SEMFEX Scheme / 49
21 / Implementation of revival, reform and restructuring package for Handloom Sector / 50
22 / Automation of State Treasury / 51
Annexures / Annexures to all Agenda Items / 52
Ministry of Finance, GoI Master Circular on Strategy and Guidelines on Financial Inclusion / 104
******
67th STATE LEVEL BANKERS’ COMMITTEE MEETING FOR NCT OF DELHI FOR THE QUARTER ENDED MARCH 2012
CALENDER OF NEXT SLBC MEETINGS DURING THE CALENDER YEAR 2012
Sr. No. / Quarter Ended / Date of Meeting / Cut Off Date for Receipt of Data at SLBC Department1. / June 2012 / 14/08/2012 / 15/07/2012
2. / September 2012 / 14/11/2012 / 15/10/2012
******
67th STATE LEVEL BANKERS’ COMMITTEE MEETING FOR NCT OF DELHI FOR THE QUARTER ENDED MARCH 2012
KEY INDICATORS
S.NO.
/ITEMS
/ MAR.11 / DEC.-11 / MAR.12 / BENCH-MARK1. / DEPOSITS / 530553.32 / 562387.08 / 588739.50
2. / A) ADVANCES / 462411.24 / 481049.88 / 549943.62
B) INVESTMENTS / 2794.44 / 2870.38 / 2798.70
3. / A)CD RATIO / 87.15 / 85.54 / 93.41 / 60%
B)C+I:D RATIO / 87.57 / 85.97 / 93.89
4. / PRIORITY SECTOR ADVANCES (PSA) / 67021.75 / 61276.26 / 69372.17
5. / % PSA TO TOTAL ADVANCES / 14.49 / 12.74 / 12.61 / 40%
6. / AGRI. ADVANCES / 21842.95 / 12065.06 / 15542.23
7. / % AGRI.ADVS. TO TOTAL ADVS. / 4.72 / 2.51 / 2.83 / 18%
8. / MICRO & SMALL ENTERPRISES ADVANCES (MSE) / 27864.21 / 29358.42 / 35261.04
9. / %AGE OF MSE ADVS. TO PSA / 41.57 / 47.91 / 50.83
%AGE OF MSE ADVS. TO TOTAL ADVS. / 6.03 / 6.10 / 6.41
10. / ADVANCES TO WEAKER SECTION / 4273.89 / 4259.12 / 4380.43
11. / % WEAKER SECTION ADVS. TO TOTAL PSA / 6.38 / 6.95 / 6.31 / 10%
12. / DRI ADVANCES / 14.75 / 18.13 / 16.70
13. / % DRI ADVANCES TO TOTAL ADVANCES / 0.003 / 0.003 / 0.003 / 1%
14. / ADVANCES TO WOMEN / 9869.24 / 9409.63 / 9875.79
15. / %WOMEN ADVANCES TO PSA / 14.73 / 15.36 / 14.24
16. / ADVANCES TO MINORITIES / 3982.42 / 4217.73 / 4579.18
17. / % MINORITIES ADVANCES IN PSA / 5.94 / 6.88 / 6.60
18. / BRANCH NET WORK
RURAL
SEMI URBAN
METROPOLITAN
TOTAL BRANCHES
/ 9975
2130
2304 / 116
58
2299
2473 / 116
47
2381
2544
67th STATE LEVEL BANKERS’ COMMITTEE MEETING FOR NCT OF DELHI FOR THE QUARTER ENDED MARCH 2012
AGENDA NO. 1
CONFIRMATION OF MINUTES OF THE 66TH STATE LEVEL BANKERS’ COMMITTEE MEETING FOR THE QUARTER ENDED DECEMBER 2011 HELD ON 13TH FEBRUARY 2012
MINUTES OF THE MEETING
The 66th SLBC Meeting, for the quarter ended December 2011, held on the 13th February, 2012 at Hotel 'Le-Meridian', New Delhi, was chaired by Shri Nagesh Pydah, Chairman & Managing Director, Oriental Bank of Commerce and Chairman SLBC, NCT of Delhi and attended by the representatives of Government Departments, Reserve Bank of India and member banks as per list placed at Annexure-1.
Shri Atul Gautam, Field General Manager, Oriental Bank of Commerce welcomed Shri Nagesh Pydah, Chairman & Managing Director, Oriental Bank of Commerce, Shri S.C. Sinha, Executive Director, Oriental Bank of Commerce, Shri Chandan Sinha, Regional Director, Reserve Bank of India, New Delhi, Ms. Sonali Sen Gupta, General Manager RPCD, Reserve Bank of India, New Delhi, Shri K. Sapru, Dy. General Manager, NABARD, Shri R.K. Ahuja, Dy. Secretary Finance, Government of NCT of Delhi, Shri J.S. Sindhu, Addl. Commissioner (Industries), Govt. of NCT of Delhi and other officials from MoF, RBI, NABARD, Delhi Government and Member Banks.
Shri Atul Gautam, informed that State Bank of India has been the Convenor SLBC-Delhi State upto October, 2011 and OBC has become Convenor SLBC – Delhi State w.e.f. November 2011. He stated that OBC feels privileged and is thankful to the Government of India for giving this prestigious responsibility.
Shri Gautam further stated that it was a matter of satisfaction to convene this SLBC Meeting in time as per the schedule already decided and that OBC has received full cooperation and support from RBI and State Bank of India in taking over the charge of SLBC Convenor and extended thanks to them.
Shri Gautam informed that OBC has received over whelming response from all SLBC Member Banks and has received Data from all the 33 member banks in time, OBC is confident to receive same type of cooperation from all concerned in future also and requested them to continue to provide the data with same zest and zeal even while providing the monthly data and any other data as and when required by Govt./RBI so that the same may be compiled and submitted on time.
Shri Gautam requested Shri Nagesh Pydah, the Chairman SLBC to deliver keynote address.
ADDRESS BY SH. NAGESH PYDAH, CHAIRMAN & MANAGING DIRECTOR, OBC
Shri Pydah started his address by welcoming all the participants and expressed thanks to the Department of Financial Services, Government of India for instilling confidence in Oriental Bank of Commerce in having bestowed the responsibility as a convenor bank of SLBC during the last reshuffle. He further informed that this is the maiden meeting after OBC took over the responsibility.
Shri Pydah highlighted the importance of Delhi in terms of banking developments by mentioning that Delhi has a well spread network of 2473 bank branches, Rs 5,62,387 crore of deposits and Rs 4,86,864 crore of advances, which make its rank second, after Maharashtra, among all States in terms of total banking business.
Shri Pydah showed concern that lending to Priority Sector has lagged and is only 12.57% against the norm of 40%.
He expressed that present achievement of 42.51% under ACP requires renewed efforts on the part of all to expedite credit dispensation as per the Plan.
Despite extensive branch network, 110 villages in the State were unbanked. These are to be offered banking services under Financial Inclusion Plan. So far, banks have covered 67 villages. There is urgent need to cover the remaining 43 villages before March 2012. He requested the concerned banks to ensure that BCs are engaged immediately and are trained to provide banking services.
He requested all Banks to launch awareness camps in every village/ ward etc.
Shri Pydah highlighted that Delhi State banks have achieved lending of Rs. 49858 crore to MSME Sector and there is lot of scope to lend in this segment. Banks should increase their lending to MSME Sector especially to MSE Sector. There is urgent need to extend financial help to micro enterprises, particularly in services sector.
He further mentioned about two centrally sponsored credit Schemes which are presently being implemented in the State, viz. Prime Minister Employment Generation Programme (PMEGP) and Swarn Jayanti Shahari Rozgar Yojna (SJSRY) and noticed that implementation of both Schemes is beset with two hurdles, high rejection rate and high pendency of applications.
He further stated that there is a big gap in mandated share of lending to special categories of borrowers like women, minority communities, SCs/STs, weaker sections and physically challenged persons who deserve preferential treatment.
He also informed the House regarding Scheme for relief, revival and rehabilitation of Handloom Sector implemented by the Govt. and Scheme for e-payment of benefits in 32 various Schemes and requested banks to create awareness among masses for e-remittances like NEFT/ RTGS.
He further brought to the notice of the State Govt. Representative that a Draft Recovery Act for Delhi was submitted by SLBC forum in August 2010 which awaits its promulgation, requesting for expedition in the matter.
Shri Pydah concluded his speech by thanking all those who spared their valuable time to deliberate on various issues.
ADDRESS BY SH. CHANDAN SINHA, REGIONAL DIRECTOR, RBI
Shri Sinha initiated his address by congratulating OBC for taking over responsibility of SLBC –Delhi and stated that Delhi is a difficult State as performance related numbers are far from satisfactory level as compared to other States like Haryana and Punjab where achievements are 100 to 130% to targets whereas in Delhi it is around 30% to 40% of the targets. Shri Sinha stressed on the need of finding the reasons for under-performance in Delhi State and stated that there could be two reasons for the same, either the targets are unrealistic or it is due to indifference but this year the targets were set realistically and were voluntarily accepted by all Banks. He further stressed that the problem of under-performance must be resolved for once and all as there is reputation risk associated with the people associated with SLBC which is a highest level body towards development. Shri Sinha showed satisfaction over achievement of three times of commitment in MSE sector.
Shri Sinha showed concern on poor data quality and poor reporting by Banks. He noticed that decision has been taken to repeat the previous quarter data of the Bank when current data has not been provided by it. Shri Sinha stated that it is difficult to understand the reason for non submission of data in Delhi which has all kind of communication facilities as compared to other large states having large rural areas. While stating that in absence of data integrity and data quality it is difficult to measure the performance.
While reviewing the overall performance, Shri Sinha showed displeasure over low and insignificant progress since last meeting. He expressed that there is hardly any progress in Roadmap for banking facilities to villages, opening of new FLCCs, Micro enterprises and overall Priority sector.
He further noted that achievement under credit plan is only 42 % to targets and there is huge under performance in agriculture and other Priority Sectors. Showing displeasure over achievement of approx 7765 KCC’s, Shri Sinha urged bankers to achieve the targets.
Shri Sinha further informed the House that changes in the definition of sick MSME is being contemplated to help in speedier identification of sick units. Shri Sinha further stated that the quality of data on sickness of units is not at desired level and suggested that it should be taken from CBS system of Banks instead of current practice of manual collection. He further informed the House that in subsequent SLBC meetings the data on MSME sector sickness shall be reviewed by the House. Shri Sinha concluded his speech with this.
SHRI K. SAPRU, DY. GENERAL MANAGER, NABARD
Shri Sapru started his address stating that for the first time he is able to start his address on a
positive address as for the first time five Banks are observed to have achieved their targets of
Priority Sector lending.
While stressing on the importance of Priority Sector, Shri Sapru stated that Branch Managers must give due importance to priority sector. He requested all present bankers to call a meeting of their Branch Managers of Delhi State and convey them the concerns of Government with regards to priority sector lending.
Shri Sapru further stated that all Banks should take initiative as there is still vast potential in the area of SHG, JLG, Education and Housing loans. He noted that SHG’s formation is picking up and there is need to finish the target before Feb/March. He further noted that credit linking to SHG’s is lagging behind. Shri Sapru suggested that SBI being the lead Bank, should evolve some system so that information regarding JLG’s is collected by them and passed on to SLBC regularly so that it could be reviewed quarterly. While reviewing the performance under KCC, Shri Sapru suggested that KCC targets should be met by the Banks in the first two quarters of the year itself as KCC’s are required by farmers during May-July and then Sep-Nov.
Shri Sapru informed the House that Handloom package has been announced by the Government, which is being implemented from 2011-12, although Delhi is yet to sign for the package MOU, Bankers should be prepared for the same. Shri Sapru further informed that the entire package is being governed by NABARD, Delhi office and Bankers can contact him personally in case of any query/clarification.
SH. R K AHUJA, DY. SECRETARY, GOVT. OF DELHI.
Sh Ahuja wished all present and informed that he had taken up the matter of Recovery of Monies Bill on priority with Revenue Department of Delhi State. He also informed that matter of NOC from Revenue Department for Mortgage of Land had also been taken-up with concerned department and the same shall be resolved soon.
SH. ATUL GAUTAM, FGM, ORIENTAL BANK OF COMMERCE.
Shri Gautam reviewed the performance of SLBC Member Banks during the quarter ended December 2011 and touched the following points-
AGENDA WISE DISCUSSION
CONFIRMATION OF MINUTES OF 65TH SLBC MEETING.
The minutes of 65th SLBC meeting were already sent to all concerned. Since no suggestions were received, the minutes were taken as confirmed.
ACTION POINTS OF 65TH SLBC MEETING.
Action points emerged in the 65th Meeting and Action Taken on the same was also discussed. It
was informed that the matter of Enactment of Public Monies Recovery Act was still pending at the level of Delhi Government.
C D RATIO: (BENCH MARK 60%)
CD ratio of all member Banks of NCT of Delhi is 86.57% as on Dec-2011. CD Ratio of all member Banks operating in Delhi Rural has increased from 60.39 % to 99.52% over December 2010. All Banks were requested to further improve the same.
FINANCIAL INCLUSION (FI)
Total Number of Villages allotted to Banks are 110, Out of which, 67 Villages have been covered upto Dec 2011. SBI, UBI, Allahabad Bank, Canara Bank, Syndicate Bank, ICICI Bank and State Bank of Patiala have achieved their targets by covering all the villages allotted to them. PNB has covered one village as on Dec-2011 out of 26 villages allotted to them. Sh. S. R. Sharma, Field General Manager, PNB assured the House that PNB shall achieve their target by end of March-2012. The Banks have opened 19.40 lacs "No-Frill" accounts and 1530 GCCs with loan amount of Rs.302.10 lacs have been issued upto 31.12.2011. During discussion on No-frill accounts, KCC and GCCs, Ms Sonali Sen Gupta, CGM, RBI expressed her displeasure on non-submission of correct data on time pertaining to these Schemes by Banks, she further advised all Banks to submit the required data on regular basis to SLBC so that the same can be further submitted by SLBC to RBI. Shri Nagesh Pydah, CMD, OBC further added that data integrity and data submission is the problem being faced by SLBC, RBI and Govt. He requested all Banks to submit correct and timely data to SLBC. Shri Atul Gautam concluded the discussion of Financial Inclusion by requesting all Banks for submission of monthly data by 1st of each month to SLBC convenor.
ELECTRONIC BENEFIT TRANSFER
Shri Gautam requested all Banks to work on implementation of Electronic Transfer of Benefits under 32 Govt. Sponsored Schemes as per the latest guidelines.
ACHIEVEMENT UNDER ANNUAL CREDIT PLAN DURING 2011-12
42.51% of ACP has been achieved upto December 2011. DSCB has achieved only 17.67% and private sector banks have not made any progress under ACP. Shri Sapru, DGM, NABARD assured the House that they shall provide the details of villages in Delhi where farming is actually being done by the farmers, which shall help Banks to deploy concentrated efforts to those villages for achievement of their targets. Shri Sapru further advised all participant Banks to sensitize their Branch Managers of various subsidies Schemes of NABARD.
PRIORITY SECTOR LENDING : (BENCH MARK 40%)
PSAs have increased by Rs. 2775.66 crs. over Dec. 2010. The present %age of PSAs is 12.57% as against bench- mark of 40% which is very low. Shri Gautam urged all Banks to identify the segments where it can be increased. Members Banks showing negative variation should do self-introspection to find out how priority sector lending can be increased.
AGRICULTURAL ADVANCES : (BENCH MARK 18%)
Agriculture Advances have decreased by 5694.55 crore over December 2010. The present
percentage of Agriculture Advances is 2.26% against benchmark of 18%. Shri Gautam requested all Banks to explore the scope of agriculture advances in the State and increase the same.
MICRO, SMALL & MEDIUM ENTERPRISES (MSME) ADVANCES :
MSE Advances have increased by 2526.30 crore over December 2010. Total MSME Advances have increased by 7246.68 crore over December 2010. All Banks were requested to increase MSME particularly MSE advances.
HOUSING FINANCE
Total Housing Finance has increased by Rs.4137.35 crore over the year. The 1% Interest Subvention Scheme of the Govt. of India has been extended for FY 2011-12 with increase in the Housing Loan Limit from the earlier Rs. 10 lacs to Rs. 15 lacs and the cost of unit from the earlier Rs. 20 lacs to Rs. 25 lacs respectively. Shri Gautam requested all Banks to publicize public awareness about the benefits of the Scheme and ensure vigorous implementation of the Scheme.Shri Niladri Bose, representing National Housing Bank, informed the House that NHB is the nodal agency for 1% interest subvention Scheme and requested all Banks to immediately submit their claims to NHB since it is nearing Financial Year. Shri Bose further informed the House of another Scheme called “ISHUP” and requested all Banks to utilize the benefits of this Scheme also.
PMEGP/SJSRY:
Shri Gautam stated that all Banks who are having pending applications should take-up the matter with their branches for early disposal of the same. Shri J. S. Sindhu, Additional Commissioner, Delhi Government, highlighted the need for disbursement of all such applications which have been sanctioned but not disbursed. He further requested all the Banks to disbursed the amount of loan for all sanctioned applications and clear all pending applications. Ms. Vandana Singh from Mission Convergence suggested that such applications should be sent directly to the Bank Branches for speedy disposal instead of routing through regional offices, to which, after deliberations House concluded that present Hybrid Model is working fine. Shri S.S. Dhankar from KVIC, informed the House about e-tracking system for finding the status of applications through online mode and informed the URL and user-id/password for accessing the system.