MINUTES OF THE 71st STATE LEVEL BANKERS’ COMMITTEE MEETING FOR THE QUARTER ENDED MARCH 2013 HELD ON 13.05.2013

MINUTES OF THE MEETING

The 71st SLBC Meeting of Delhi State, for the quarter ended March 2013, was held on 13th May, 2013 at Hotel 'Le-Meridian', New Delhi. The meeting was chaired by Shri Bhupinder Nayyar, Executive Director, Oriental Bank of Commerce and attended by the representatives of the Reserve Bank of India; Govt. of NCT of Delhi; NABARD; NHB and member banks as per the list placed at Annexure-1.

Smt. Vidyavati Rudra, SLBC Convenor and General Manager, Oriental Bank of Commerce welcomed Shri Bhupinder Nayyar, Executive Director, OBC; Shri Deepak Singhal, Regional Director, RBI; Ms. Sonali Sen Gupta, General Manager, RBI; Ms Joan R. Blah, AGM, NABARD and other officials from various Govt. departments and member banks.

She congratulated all member banks on the achievement of targets for Annual Credit Plan(ACP) for the Financial Year 2012-13. She stated that the concerned banks have provided loans of Rs. 299 crore against commitment of Rs. 293.59 crore. She also stated that ACP for Financial Year 2013-2014 has been finalised with a total amount of Rs. 316.68 crore for Priority Sector Advances. She requested all member banks to ensure the quarter wise achievement of ACP targets. She showed concern over pending 178 applications under PMEGP and 147 applications under SJSRY as on 31st March 2013. She urged the concerned banks to take all these application to a logical end at the earliest.

She stated that CD ratio of the State has increased by 4.62% from 94.04% as on March 2012 to 98.66% as on March 2013 and CD Ratio of Delhi Rural has decreased on YOY basis from 111.67% to 110.37%. The Priority Sector Advances have increased by Rs. 5,082 crore on YoY basis to reach Rs. 70,619 crore as on March 2013, which represents the growth of around 10% and expressed that this increase should be at least 25% to 30%. She also explained that low increase of Priority Sector Advances in comparison to increase in Total Advances has been the reason for decline in percentage of Priority Sector Advances to Total Advances from 11.60% to 11.19% YOY basis. As regards FI, all the 110 villages having population 2000 and above have been covered and 21 villages having population below 2000 have been allotted to member banks and out of these villages 2 villages are covered and rest are to be covered by March-2014.

She stated that 6 more districts are to be covered under Direct Benefit Transfer in Delhi State with effect from 1st July 2013. District Authorities are organizing camps for account opening and Aadhaar enrolment.

Smt. Rudra stated that Delhi Government has introduced new welfare scheme Dilli Annshree Yojana on 15th Dec, 2012. It is an important program and the State Govt. is conducting meetings with the bankers on regular basis. Member Banks have to ensure the timely opening of the accounts of the beneficiaries and seeding/mapping of aadhaar numbers. Opening of the accounts of the school children has also gathered momentum and good progress has been made in the matter.

She also pointed out the need for correction in the data of identified Sick units. She requested all member banks to pay attention to it and also ensure that the viability study is conducted in a time bound manner.

She concluded her address by requesting Shri Bhupinder Nayyar, Executive Director, Oriental Bank of Commerce to preside over the Meeting and deliver Key Note Address.

ADDRESS BY SHRI BHUPINDER NAYYAR, EXECUTIVE DIRECTOR, OBC

Shri Bhupinder Nayyar welcomed Shri Deepak Singhal, Regional Director RBI; Smt. Sonali Sen Gupta, General Manager, RBI and other officials from various Govt. departments and member banks.

Shri Nayyar stated that the Monetary Policy Statement for 2013-14 was announced by the Reserve Bank of India on 3rd May, 2013. The growth has decelerated continuously and steeply. The Reserve Bank’s current assessment is that activity will remain subdued during the first half of this year with a modest pick-up in the second half, subject to appropriate conditions ensuing. The Reserve Bank has reduced policy repo rate under the Liquidity Adjustment Facility by 25 basis points from 7.50% to 7.25%. Consequently, the reverse repo rate has been calibrated to 6.25%. The measures taken by the Reserve Bank in the Monetary Policy are expected to have positive impact on the Indian Economy in the coming time.

Coming to the Delhi State, Shri Nayyar complimented all banks for achieving CD Ratio of 98.66% as on 31/03/2013. He showed concern over low increase in Priority Sector Advances. He stated that the percentage of Priority Sector Advances to Total Advances has declined from 11.60% as on March 2012 to 11.19% as on March 2013. We are far behind the prescribed benchmark for Priority Sector lending. MSE advances increased by Rs. 8,401.55 crore during 2012-13 in absolute terms. However, we are far behind the prescribed benchmark for MSE advances also despite the fact that Delhi offers good scope of lending to MSEs.

Shri Nayyar also complimented the member banks for achieving ACP targets. He complimented Bank of Maharashtra and Vijaya Bank especially for having surpassed ACP targets with handsome margin. He informed that Canara Bank, Corporation Bank, Oriental Bank of Commerce, State Bank of India and HDFC Bank achieved the targets whereas 11 banks failed to achieve the ACP targets. He expressed hope that all concerned banks shall achieve ACP targets for the financial year 2013-14.

As regards Financial Inclusion Plan, Shri Nayyar informed that all 110 villages with population 2000 and above stand covered. Out of 21 villages with population below 2000, only 2 villages have been covered so far. He requested the concerned banks to cover the remaining villages at the earliest without waiting for the timeline of 31st March, 2014. In the matter of Direct Benefit Transfer, he informed that 78 additional districts have been identified by the Govt. of India for starting DBT wef 01/07/2013. Out of these 78 districts, 6 districts are related to Delhi State. He requested all banks to cooperate with the State Govt. in opening of accounts of beneficiaries and seeding/mapping of aadhaar numbers in already opened bank accounts.

Shri Nayyar requested all the controlling heads for timely disposal of loan applications under all Govt. schemes like PMEGP and SJSRY.

ADDRESS BY SHRI DEEPAK SINGHAL, REGIONAL DIRECTOR, RBI

Shri Singhal started his speech by wishing Shri Bhupinder Nayyar, Executive Director, OBC and other officials from various Govt. departments and member banks.

Shri Singhal thanked Shri Nayyar for giving synopsis of the agenda. He stated that the bankers deserve to be complimented on more than 100% achievement of the ACP target. He also pointed out that the targets for 2013-14 should be set by doing due diligence and should be realistic. He further complimented the 11 banks on achieving/surpassing the given targets. He showed concern over non achievement of ACP targets by some banks individually.

He stated that 22 villages with population below 2000 were identified as uncovered, out of which 1 village is non- existent. So 21 villages are to be covered by the respective banks. SBI has reported coverage of 2 villages out of these 21 villages. He advised all the concerned banks to cover the remaining 19 villages allotted to them at the earliest. He informed the House that some member banks have not yet submitted their Disaggregated Financial Inclusion Plan for year 2013-2016 to Reserve Bank of India and it is a matter of concern. He advised the banks to submit their three years Disaggregated Financial Inclusion Plan to RBI at the earliest. He further stated that for Financial Literacy there is comprehensive literacy material available on RBI website and the member banks can access the website to get this material. By means of this material they can impart the knowledge during the camps that are to be organized atleast once in a month.

He informed that RBI Governor on 3rd May, 2013 has said that all metropolitan centers also will be put under Lead Bank Scheme. As such, all the 11 districts in Delhi shall have LDMs. He suggested to find out the major three banks in each district and ask them if any of them is willing to take up the responsibility as LDM. This exercise should be done in consultation with SLBC convenor.

Speaking on the matter of the fake currency notes, Shri Singhal observed that 97% of the reporting of the fake currency notes is done by the Foreign Banks or private banks, only 3% are reported by Nationalized and PSU banks. He expressed his concern on this matter as 98%-99% of the currency chest are with PSU Banks and only 3% of the total fake currency are reported by PSU banks. He appreciated that data on the fake currency notes has been incorporated in the agenda. He further said that till now banks had to lodge a FIR for even a single fake currency notes but now this requirement has been substantially diluted . There is no requirement to file a FIR if less than 5 fake currency notes are detected in a particular lot or if a customer tenders upto 4 fake currency notes across the counter. Only in case of fake currency notes exceeding five, FIR has to be lodged. He advised that all fake currency notes tendered across the counter must be confiscated. The banks can provide a photocopy of that confiscated note to the tendering customer on his request. The frontline staff should be adequately trained on identification of fake currency notes. The banks should do right reporting both to Police Authority and RBI at the earliest. He urged all bankers especially PSBs to rise to the occasion and report detection of fake currency notes.

ADDRESS BY SHRI R.K. AHUJA, DY. SECRETARY(FINANCE), GOVT. OF NCT OF DELHI

Shri R.K. Ahuja wished all present. He thanked all member banks for opening No-frill accounts. He especially conveyed his thanks to SLBC for coordinating the implementation of DBT in Delhi State. He informed that Dilli Annshree Yojana, launched on 15th December, 2012, is being successfully implemented by the Delhi Govt. due to the support provided by all participating banks. He requested all banks to provide full support to the State Govt. in the second phase of the DBT which is going to start from Ist July, 2013.

ADDRESS BY MS. SONALI SEN GUPTA, GENERAL MANAGER, RESERVE BANK OF INDIA

Ms. Sonali Sen Gupta stated that assignment of Lead Bank responsibility in metropolitan areas shall make implementation of DBT more effective. She informed that information has been called from all banks regarding their districtwise presence in Delhi. She also informed that for deciding on assignment of Lead Bank responsibility for all the 11 districts of Delhi State, a meeting has been convened on 15th May, 2013. He requested all banks to participate in the meeting.

ADDRESS BY MS. JOAN R. BLAH, DGM, NABARD

Ms. Blah wished all present. She stated that NABARD in coordination with banks & NGOs is promoting various Self Help Groups for various programmes in different parts of Delhi. She reminded all banks that as per RBI guidelines SHGs are to be given CC limits instead of Term Loans. She informed that she has found in various Project Monitoring Meetings that various branch managers of different banks are still giving term loans instead of CC limits to SHGs. She requested all member banks to update all their branch heads about the guidelines and sensitize them to provide CC limits instead of term loans to SHGs.

Speaking on Joint Liability Groups, she stated that the progress in this regard is very slow which is a matter of concern. She informed that SBI, Canara Bank and DSCB are actively participating in the area of JLG. She requested all banks to look into the matter and sensitize their branch heads for the JLG programme.

Speaking on KCC, She appreciated the growth from 7700 to 10000 during the year. The biggest contributor is HDFC bank. She requested linking of KCC with ATM cards.

She also highlighted the performance of SBI which has issued about 800 SCC and asked SBI how they have done such a commendable job. In reply to this, representative of SBI told the House that they have done this by aggressively organizing camps for SCC in nearby villages of Najafgarh block which has huge agriculture land. Ms. Blah requested all banks to take active interest in SCC Scheme.

AGENDA WISE PRESENTATION BY SHRI B. N. JHA, DGM, ORIENTAL BANK OF COMMERCE

Shri Jha welcomed all present and stated that in all the meetings we discuss about the need for timely and correct data submission. However, this time also SLBC had to struggle hard to receive correct data from some of the member banks.

Shri Jha made agendawise presentation as under:-

AGENDA 1. Confirmation of Minutes of 70th SLBC Meeting

The minutes of 70th SLBC Meeting have already been sent to all concerned. Since no suggestion has been received, the minutes may be taken as confirmed. The House confirmed the minutes.

AGENDA 2. Action Points of 70th SLBC Meeting

The Action Points emerging out of the 70th SLBC Meeting and Action Taken on the same were given on page 4 to page 6 of Agenda Book. Few points are still persisting. Priority Sector Lending is not increasing. Loan Applications are still pending under Govt. Sponsored Schemes. 30 USBs are yet to be opened. 19 villages are to be covered under FIP villages having population below 2000. He requested all concerned banks to take action on all action points at the earliest.

AGENDA 3. Credit Deposit Ratio

CD Ratio of all banks has increased from 94.04% as on March 2012 to 98.66% as on March 2013. CD ratio of Delhi Rural has slightly decreased from 111.67 % to 110.37% during the same period. He requested all Member Banks to improve CD Ratio especially by increasing lending in MSME sector as this sector contributes almost 81% of the total GDP of Delhi State.