AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 1

Table of Contents Particulars Page

Abbreviations 6

Adoption of the minutes of the 164/165th SLBC meeting held on 18.09.2017 7

AGENDA NO-1 Action Taken Report of the 164/165th meeting held on 18.09.2017 8-9

AGENDA NO-2 Review of Banking Developments in Madhya Pradesh in Q-2 of FY 2017-18 10-13 a) Key Banking parameters of the state as on 30.09.2016 vis-à-vis 30.09.2017 10 b) Performance highlights of Q-2 of FY 2017-18 11-12 c) Sectorial deployment of Bank’s credit-September 2017 13

AGENDA NO-3 Review of performance under Annual Credit Plan Q-2 of FY 2017-18 14-16

a) Highlights 14-15 b) Agency wise ACP performance FY 2017-18 up to September 30, 2017 15-16

AGENDA No-4 Levy of Penal charges on non-maintenance of minimum balances in savings Bank accounts of beneficiaries of different pension schemes of the Government 17-18

a) Background 17 b) Features of Basic Savings Bank Deposit Accounts (BSBDA) 17 c) Banking facility for senior citizens and differently abled persons 18

AGENDA No-5 Relief measures in drought affected areas 19-21

a) Government notification 19 b) Gist of RBI guidelines for relief measures by Banks in area affected 19-20 by Natural Calamity c) Action by various stake holders 21

AGENDA No-6 Mukhya Mantri Krishak Udyami Yojana & amendments in 22-24 Mukhya Mantri Self-employment Schemes

a) Mukhya Mantri Krishak Udyami Yojana 22 b) Mukhya Mantri Yuva Udyami Yojana 22 c) Mukhya Mantri Swarojgar Yojana 23 d) Mukhya Mantri Arthik Kalyan Yojana 23 e) Growth pattern in flagship employment generation programmes of the 24 State government during last three years & current fiscal

AGENDA No-7 Progress under other government sponsored schemes 25-29 a) Prime Minister Employment Generation Programme (PMEGP) 25 b) National Rural Livelihood Mission (NRLM) 26 c) Pradhan Mantri Mudra Yojana (PMMY) 26 d) Stand-up India schemes (SUI) 27 e) Pradhan Mantri Awas Yojana (PMAY)-Urban 28 f) Issues related to government sponsored schemes 29

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 2

Particulars Page

AGENDA No-8 Opening of Banking Outlets in villages having population 5000 & above 30

AGENDA No-9 Credit Deposit Ratio 31-33

a) Important indicators 31 b) District with CD ratio below 40% as on 30.09.2017 32 c) Action taken report on minutes of special DLCC meeting held on 27.04.2017 32-34 At Umaria-status as on 30.11.2017

AGENDA No-10 Digital Transactions 34

a) Status report country and Madhya Pradesh 34

AGENDA No-11 Financial Inclusion 35-39

a) Status as on 30.11.2017 35 b) Bank wise Aadhaar authentication status as on 30.11.2017 35-36 c) Aadhaar seeding process to be followed for obtaining consent from the customer 36 d) Opening of Aadhaar enrollment centres in M.P.-status as on 30.11.2017 37 e) Performance of Rural Self Employment Training Institutes (RSETIs) 38 f) Opening of RSETI in agar Malwa district 38 g) Status of pending claims of RSETIs with DRDA/NRLM for settlement 39 h) Social Security Schemes-status 39 i) Atal Pension Yojana-status 39

AGENDA No-12 Non-Performing Assets 40-44

a) Status as on 30.09.2017 40 b) Sector wise NPA 40 c) Non-performing Assets under government sponsored schemes 41-42 d) Revenue Recovery Certificates (RRCs) 42 e) BRISC status period from (01.04.2010 to 10.12.2017) 43 f) Pending applications with Dist. Administration for taking physical possession of the Properties under Sec-14 of SARFAESI Act as on 30.11.2017 44

AGENDA No-13 Micro, Small & Medium Enterprises (MSMEs) 45-47

a) Status as on 30.09.2017 45 b) Performance under Annual Credit Plan FY 2017-18 under MSMEs 46 c) Framework for Revival and Rehabilitation of Micro, Small & Medium Enterprises 47 d) Suggestions for increasing MSME financing and resolving 47 bottleneck faced by MSMEs48

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 3

Particulars Page

AGENDA No-14 Other Agenda 48-49

a) Engagement of Lead District Managers (LDMs) in activities other than 48 Prescribed by RBI b) On-line web portal for data collection for DCC/DLRC meetings 49 c) Automatic SMS alert facility in SAMAST portal 49

AGENDA No-15 50-52

a) Self Help Groups bank linkages 50 b) Start-up village Entrepreneurship Development Programme (SVEP) 50 c) NPA in SHGs in Madhya Pradesh-Study Findings by NABARD 50-51 d) Credit facility to Minority Communities, SC/ST & Women 51-52

AGENDA No-16 Education Loans 53

a) Status in Madhya Pradesh b) Central Scheme to provide Interest Subsidy on education loans c) Higher Education loan Guarantee Scheme & Higher Education Loan Settlement Scheme d) FY target vis-à-vis achievement up to September 2017

AGENDA No-17 Agenda of National Scheduled Caste Finance & Development Corporation 54

Any other agenda with permission of the Chair

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 4

DATA TABLE

Table Page Contents of Data Table showing progress in Madhya Pradesh as on 30.09.2017 No. No. 1 Bank wise position of branches/ATMs as on 30.09.2017 55 2 Centre wise information regarding Deposits, Advances and CD Ratio 56 3 Bank wise total Deposits, Advances and CD Ratio 57 3i District wise Credit Deposit Ratio as 0n 30.09.2017 58 4 Bank wise outstanding of Agriculture under Priority Sector advances 59 5 Bank wise outstanding of MSMEs under Priority Sector advances 60 Bank wise outstanding of Export Credit, Education, Housing, Social Infrastructure, 6 61 Renewable Energy & others under Priority Sector advances 7 Advances to Weaker Sections 62 8 Bank wise outstanding of Non-Priority Sector advances 63 9(i) Target and ACP FY 2017-18 achievement of Farm Credit & crop loans under Agriculture 64 Target and ACP FY 2017-18 achievement under Agriculture Infrastructure, Ancillary 9(ii) 65 activities under Agriculture 10 Target and ACP FY 2017-18 achievement of MSMEs under Priority Sector 66 Target and ACP FY 2017-18 achievement of Export Credit, Education & Housing under 11(i) 67 Priority Sector Target and ACP FY 2017-18 achievement of Social Infrastructure, Renewable Energy 11(ii) 68 & others under Priority Sector 12 Target and ACP FY 2017-18 achievement under Non-Priority Sector 69 13 Bank wise position of NPA 70 14 Bank wise NPA under Priority Sector advances 71 15 Bank wise NPA under Non-Priority Sector advances 72 16 Bank wise NPA under Govt. Sponsored Schemes 73 17 Progress under Kisan Credit Card 74 18 Progress under Higher Education loans 75 19 Position of SHGs bank linkage programme 76 20 Loans outstanding to Minority Communities 77 21 Loans disbursed to Minority Communities 78 22 Loans outstanding to SC/STs 79 23 Loans disbursed to SC/STs 80 24 Advances to women 81 25 Bank wise progress under Pradhan Mantri Jan Dhan Yojana 82 26 Bank wise progress under Atal Pension Yojana 83 27 Bank wise progress under Social Security Schemes 84 28 Progress under Rural Self Employment Training Institutes (RSETIs 85 29 Bank wise progress under MUDRA Yojana 86 30 Bank wise progress under Standup India Scheme 87 31 District wise progress under Standup India Scheme 88 32 Annexure-1 (State Governments’ Notification on Drought) 89

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 5

ABBREVIATION ACP : Annual Credit Plan ACS : Additional Chief Secretary APC : Agriculture Production Commissioner APY : Atal Pension Yojana BRISC : Bank Recovery Incentive Scheme CA : Chartered Accountants CAGR : Compound Annual Growth Rate CDR : Credit Deposit Ratio DCC : District Consultative Committee DCCB : District Central Cooperative Banks DFS : Department of Financial Services EWS : Economically Weaker Sections FLCC : Financial Literacy Credit Counseling Centres GCA : Gross Cropped Area GDP : Gross Domestic Products GLC : Ground Level Credit GVA : Gross Value Added HFC : Housing Finance Company IBC : Indian Bankruptcy Code JLG : Joint Liability Group KCC : Kisan Credit Card LDM : Lead District Manager LWE : Left Wing Extremism M.M : Margin Money MIG : Middle Income Group MMAKY : Mukhya Mantri Arthik Kalyan Yojana MMSY : Mukhya Mantri Swarojgar Yojana MMYUY : Mukhya Mantri Yuva Udyami Yojana MSME : Micro, Small & Medium Enterprises MSP : Minimum Support Price NPA : Non Performing Asset NSSO : National Sample Survey Office PMAY : Pradhan Mantri Awas Yojana PMJDY : Pradhan Mantri Jan Dhan Yojana PMJJBY : Pradhan Manti Jeevan Jyoti Bima Yojana PML : Prevention of Money Laundering PMMY : Pradhan Mantri Mudra Yojana PMSBY : Pradhan Mantri Suraksha Bima Yojana PSL : Priority Sector Lending RRB : Regional Rural Bank RRC : Revenue Recovery Certificate SARFAESI : Securitization & Reconstruction of Financial Assets & Enforcement of Security Int. Act SCB : Scheduled Commercial Banks SHG : Self Help Group SLBC : State Level Bankers’ Committee SOF : Scale of Finance SUI : Stand-up India UIDAI : Unique Identification Authority of India TReDS : Trade Receivables Discounting System GeM : Government e-Market Place

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 6

ADOPTION OF THE MINUTES OF THE 164th /165th SLBC MEETING HELD ON 18.09.2017

The Minutes of 164th /165th meeting of SLBC held on 18th September 2017 were circulated to all concerned and were uploaded on website of SLBC (www.slbcmadhyapradesh.in ) and website of Directorate of Institutional Finance, Government of Madhya Pradesh (www.dif.mp.gov.in). The actionable points have been indicated for desired actions. SLBC received a communication from NABARD, Bhopal for modification in point no. 5-G of the minutes as under:

“CGM, NABARD suggested that, to enable Lead Banks to organize the Bank-Prospective Entrepreneurs Interface Meeting at block level, wherein all banks representatives will be invited, it is better to conduct the same after the BLBC meeting where all stakeholders including representative of Banks, NABARD, DIC etc. will also be present.”

NO OTHER AMENDMENTS/SUGGESTIONS WERE RECEIVED THEREFORE, THE HOUSE IS REQUESTED TO CONFIRM THE ABOVE CHANGES AND ADOPT THE MINUTES.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 7

AGENDA NO-1 ACTION TAKEN REPORT ON ACTION POINTS OF 164th /165th SLBC MEETING HELD ON 18.09.2017 Sr. Agenda Item/Action Points Action Taken Report 1 The Chief Secretary, Govt. of M.P mentioned that CD ratio of Scheduled Commercial Banks (SCBs) scheduled commercial banks need to increase their CD was 67.69% as of June-2017, which is increased ratio. to 70.21% during Sep-17 quarter. 2 Export Credit exhibited negative Y-O-Y growth during  Export credit registered a growth of 18.27% June 2017 quarter. Banks were advised to focus on this year on year during Sep-17 quarter. The sector as state is large producer of oilseed. fertile Malwa plateau produces around 20% of Country’s soyabean. Around 80% of the crop used are exported to other countries in the form of soyabean oil/meal.  As of 30.09.2017, only five banks had exposure towards export credit. In view of potentiality available at SEZs, Garment industry, spices park and soya oil, banks need to explore possibilities for increasing the export credit. 3 Performance of banks in the state under agriculture, Credit deployment to micro enterprises has priority sector, small & marginal farmers and weaker shown growth of 15.72% year on year. During sections was above the Norm as on June 30, 2017. current financial year, it has also shown growth However, it was marginally lower for micro enterprises of 2.83%. The State Government has been of MSME sector. Banks need to extend credit to this supporting entrepreneurs/ Self-Employment by sector. providing a conducive environment for job creation and entrepreneurship. Further, bankers are continuously extending their support, which was resulted in growth in micro enterprises. 4 It was suggested to from a task force on Standup India The Industry Commissioner, Govt. of M.P. has scheme. The task force will examine the reasons of low given the consent about the constitution of the progress specially in tribal dominated districts and proposed task force. However, formal meeting is submit the ways for improvement before the next SLBC yet to be convened. meeting. 5 Opening of “Banking Outlets” in villages having Out of 32 remaining unbanked centres, 28 population more than 5000 and above-The house centres have been covered through Banking approved the allotment of 32 remaining unbanked Outlets manned by BCs till 15th December 2017. villages to the banks based on respective Sub Service 4 more unbanked centres are yet to be covered. Areas (SSAs) of the centres. Concerned banks were advised to open “Banking Outlets” latest by 31st December 2017. 6 The agriculture growth rate of the state in the last five As of 30th September 2017, ratio of term loan to years has been around 20% which is near the growth total agriculture credit was 24.72% for all the rate of agriculture credit by Banks. However, Banks Banks. RRBs and cooperative Banks are required were asked to extend loans to farmers for capital to increase their investment credit loans in formation also. agriculture so that it can be increased for the state. As of 30th Sep-17, ratio of term loan to total agriculture credit for RRBs and cooperative banks was 9.59% and 7.79% respectively.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 8

7 Financial Inclusion a) Monitoring of Business Correspondents through GPS a) Some major banks viz. SBI, BOB, BOI, CBoI Banks were requested to submit the proposal to their etc. have informed that they have corporate offices for installing GPS tracking system for approached their corporate office for business correspondents. installation of GPS tracking system for BCs. Action: All Concerned Banks b) Appointment of Bank Sakhi as business b) 214 and 32 Bank Sakhis are appointed by correspondent agents Narmada Jhabua Gramin Bank and Bank of Banks were advised to issue an advisory to their India respectively and they are also Technical Service Providers (TSPs) to approach Bank working as business correspondents. Sakhi when engaging BCs in the vacant SSAs (if any). Action: All Concerned Banks For other banks, it has been informed that they have issued an advisory to their TSPs to approach Bank Sakhi while engaging BCs in the vacant SSAs. 8 Disposal of pending RRCs- the Chief Secretary stated  Data of BRISC portal shows that 1753 RRCs that there is a meeting scheduled on 27th September of Rs. 1.04 crore were disposed of by the 2017 of Revenue Officers. Disposal of pending RRCs is District Administration during a year (From one of the agenda items of the meeting. Banks expected 22.11.2016 to 21.11.2017) as against 4.28 that after this deliberation, disposal of pending RRCs lakh demand notices issued by Revenue would be accelerated. officers.  BRISC portal shows that some districts did not dispose of even a single RRC between the periods 01.04.2010 to 22.11.2017. Those districts are Anuppur, Ashoknagar, Bhind, Datia, Dindori, Jabalpur, Jhabua, Khandwa, Mandla, Sheopur, Sidhi, Singrauli & Umaria. 9 Disposal of pending cases under Sec-14 of SARFAESI Cases are still pending with district Act & providing Police escort in time for physical administration. Detailed list is enclosed in agenda possession of the properties- As of June 30, 2017, there no. 11. were 168 cases pending with District administration under Sec-14 for physical possession of the properties. The State Government assured banks to expedite recovery proceedings. 10 Hon’ble Chief Minister mentioned that despite achieving In order to minimize rejection rate, MSME more than 100% targets by banks there department of the state government has issued were some dissatisfaction among the beneficiaries. This an instruction/advisory to implementing agencies is because of more cases are being sponsored than of the respective schemes to sponsor proposal of targets. He asked implementing agencies of the State 125% of the target. Govt. of above schemes, to sponsor quality cases to However, It has been reported that uniform banks equivalent to the targets, so that there should be distribution of applications for loan under minimum rejection, otherwise, it gives the scope of different government sponsored schemes is still corruption. not happening at the field level.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 9

AGENDA NO-2 REVIEW OF BANKING DEVELOPMENT IN MADHYA PRADESH in Q-2 of FY 17-18

KEY BANKING PARAMETERS OF THE STATE AS ON 30.09.2016 vis-à-vis 30.09.2017 Outstanding amount in Rs. crores % Y-o-Y Y-o-Y Variation Sr. Parameters Sep-16 Mar-17 Jun-17 Sep-17 variation variation from Mar- % 17 1 Total number of Branches 7105 7218 7259 7294 189 2.66 1.05 2 Total number of ATMs 9266 9284 9316 9263 -3 -0.03 -0.23 3 Credit Deposit Ratio 72.38 71.25 69.84 73.88 1.50 1.50 3.70 4 Total Deposits 304013 336950 340488 348872 44859 14.76 3.54 5 Total Advances 220042 240064 237792 257744 37702 17.13 7.36 6 Total Business [4+5] 524055 577014 578280 606616 82561 15.75 5.13 7 Agriculture advances 75942 92362 85142 88963 13021 17.15 -3.68 8 Crop Loans out of total agriculture 52638 67659 62920 66973 14335 27.23 -1.01 % of Agriculture advances to Total 9 advances 34.51 38.47 35.81 34.52 0.00 0.00 -3.95 [RBI Norm: 18%] 10 MSME 37747 40887 40254 40898 3151 8.35 0.03 10a Micro Credit out of total MSME 15591 17546 17389 18042 2451 15.72 2.83 % of credit of Micro Enterprises to 11 Total advances 7.09 7.31 7.31 7.00 -0.09 -0.09 -0.31 (RBI Norm: 7.5%] 12 Export Credit 104 148 42 123 19 18.27 -16.89 13 Education 2044 2018 1880 1939 -105 -5.14 -3.91 14 Housing 18732 19363 19804 20677 1945 10.38 6.79 15 Social Infrastructure 139 141 118 103 -36 -25.90 -26.95 16 Renewable Energy 666 675 480 58 -608 -91.29 -91.41 17 Others 3372 2823 1326 6184 2812 83.39 119.06 Total Priority Sector Advances 18 138746 158417 149046 158945 20199 14.56 0.33 [7+10+12+13+14+15+16+17] % of Priority Sector advances to 19 Total advances 63.05 65.99 62.68 61.67 -1.39 -1.39 -4.32 [RBI Norm: 40%] 20 Total Non-Priority Sector Advances 81296 81647 88746 98799 17503 21.53 21.01 21 Advances to small & marginal farmers 23239 26242 23370 25559 2320 9.98 -2.60 % of advances to small & marginal 22 farmers to total advances 10.56 10.93 9.83 9.92 -0.64 -0.64 -1.01 [RBI Norm: 8% by Mar-17] 23 Total NPA 13682 16445 18773 19895 6213 45.41 20.98 24 % of NPA to total advances 6.22 6.85 7.89 7.72 1.50 1.50 0.87 25 Advances to Weaker Sections 49259 55917 46647 51109 1850 3.76 -8.60 % of advances to Weaker Sections 26 to total Advances 22.39 23.29 19.62 19.83 -2.56 -2.56 -3.46 [RBI Norm: 10%]

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 10

PERFORMANCE HIGHLIGHTS OF Q-2 of FY 2017-18

BRANCH NETWORK

. Presently, banking services in the State are covered through a network of 7259 branches. Of which 2667 (37%), 2320 (32%) and 2307 (32%) branches comprised rural, semi urban & urban branches respectively. . At the end of September 2017, net increase of 189 new bank branches have been registered Y-o-Y. . Out of 189 new branches opened during a year, 6 branches were opened in rural centres whereas, 70 & 113 branches were opened in semi-urban and urban centres respectively

. Between June and September this year, the total number of ATMs in the state decreased by 53. . ATMs of Bank of Baroda, PNB, HDFC and Canara Bank were reduced from previous quarter. Move towards digital transactions led to reduction of ATMs. Due to low hits and high operational costs some banks closed their ATMs. . In contrast, ATMs increased at a compounded rate of 3.60 percent over the past four years

DEPOSITS Amount in crores Deposits growth 348872 336949

302863 303070 304013

.Sep-15 .Mar-16 .Sep-16 .Mar-17 .Sep-17

. Deposits grew by 3.54% during Apr- Sep’17 compared with 0.31% of growth witnessed in the corresponding period last year. On a year on year basis too growth in deposits was 14.76% against 0.38% last year and it is in line with last five years average growth. . Out of total deposits of Banks as of September 30, 2017, the share of Public Sector Banks, Private Banks, Regional Rural Banks and Cooperative Banks were 79.72%, 8.74%, 5.52% and 6.02% respectively. . Out of total 278124 crore deposits of Public Sector Banks, share of CASA was 46.49% during Sep-17.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 11

CREDIT Amount in crores Credit growth 257744 220042 220042 240064 195127

.Sep-15 .Mar-16 .Sep-16 .Mar-17 .Sep-17

. Bank’s credit grew by 7.36% during Apr-Sep’17, higher compared with 5.84% growth recorded in the comparable period last year. On a year on year basis too growth in credit was around 17.13%, higher than the growth of 12.77% witnessed in the last year. . In total Bank’s credit, the share of Public Sector Banks, Private Banks, Regional Rural Banks and Cooperative Banks were 67.33%, 16.73%, 4.44% and 11.50% respectively as of September 30, 2017.

BUSINESS

. Total business of the Banks increased to Rs. 606616 crore from Rs. 524055 crore registering a growth of Rs. 82561 crore and in percentage terms 15.75% on Y-o-Y basis. . This growth is in line with the previous growth rate of five years.

CREDIT DEPOSIT RATIO

. Credit-Deposit Ratio (CD ratio) of Madhya Pradesh has increased to 73.88% during Q-2 of current fiscal from 72.38% in previous year i.e. Sep-16. CD Ratio- Agency wise 141.86% 141.48% 141.19% 150.00% 101.72% 100.00% 63.60% 61.27% 62.40% 59.31% 50.00% 0.00% .Sep-16 .Sep-17

PSBs Pvt. Banks RRBs Coopeative

NON-PERFORMING ASSETS

. Total NPA of the banks stood at 7.72% of total credit as of September 30, 2017. . Gross NPA for both Private Banks and PSBs continued to move in upward direction and it increased by Rs. 6213 crore from previous year. . The NPA ratio of PSBs, Private Banks, RRBs and Cooperative Banks was 7.51%, 3.09%, 13.93% and 13.25% respectively as of Sep-17.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 12

SECTORIAL DEPLOYMENT OF BANK’S CREDIT-SEPTEMBER 2017

. Credit to agriculture and allied against a decline of 2.54 percent a activities increased by 17.13% in year ago. September 2017 year on year, less . Export credit registered growth by than the increase of 19.38% in 18.27% y-o-y, while education, social September 2016. infrastructure and renewable energy . As of 30th September 2017, ratio of sectors registered negative growth by term loan to total agriculture credit was 5.14%, 25.90% and 91.29% 24.72%. It was 29.33%, 51.50%, respectively. 9.59% and 7.79% for PSBs, Private . Banks in Madhya Pradesh has shown Banks, RRBs and cooperative Banks commendable performance under respectively. Priority Sector Lending (PSL). . Credit to industry grew by 8.35 per Percentage of priority sector loans to cent (y-o-y) in September 2017. total advances was 61.67% during . Micro, small and medium segment September 2017 quarter as against borrowings increased by 15.72%, the RBI Norm of 40%. In contrast to the 12.32% and 6.84% respectively. trend in total credit, the priority sector . Within the services sector, credit offtake lending registered Y-o-Y growth of by the real estate sector grew by 10.8 12.75 percent during September 2017 percent on a y-o-y basis, in September as against 18.07% last year. 2017 as compared to 6.94 percent in . Under retail segment, personal loans the previous year. On a financial year has shown growth of 6.88% year on basis, it grew by 6.79 percent as year.

Sectorial growth in credit Amount in crore Y-o-Y Growth Sector Sep-15 Sep-16 Sep-17 Sep-16 Sep-17 Gross Bank Credit 195127 220042 257744 12.77 17.13 Agriculture & Allied Activities 63616 75942 88963 19.38 17.15 Industry 27662 37747 40898 36.46 8.35 Micro 14587 15591 18042 6.88 15.72 Small 14814 16252 18254 9.71 12.32 Priority Sector 117510 138746 158945 18.07 14.56 Housing 17432 18732 20677 7.46 10.38 Education 2051 2044 1939 -0.34 -5.14 Personal loans * 10162 10913 * 7.39 *Data not available

This agenda is put up for information/discussion

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 13

AGENDA NO-3 REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN Q-2 OF FY 2017-18 Amount in crores FY 2016-17 Financial Year 2017-18 [April to Sep-2016] Sr. Sector Target No. Achievement Achievement Achi. for FY Achi. % Target Q-2 of 16-17 % 2016-17 Q-2 of FY 2017-18 Amt. Amt. Amt. No. Amt. No. Amt. Amt. 1 Agriculture 80988 32142 39.69 3700878 94868 2944263 35977 37.92 1a Farm Credit 75927 30135 39.69 3418692 88374 2903346 33625 38.05 1b Crop loan out of 1a 58521 26137 44.66 2594512 67229 2666192 28943 43.05 Agriculture 1c 3184 579 18.18 187088 3905 8139 343 8.79 Infrastructure 1d Ancillary Activities 1877 1428 76.08 95098 2589 32778 2009 77.61 2 MSME 16123 10408 64.55 444309 18441 249780 10809 58.61 2a Micro Enterprises * 4780 * 315927 11493 224149 5297 46.09 2b Small Enterprises * 3961 * 21729 2865 17466 3707 129.38 2c Medium Enterprises * 1165 * 11803 1101 1805 1446 131.36 2d KVIC * 46 * 11183 910 585 27 2.92 2e Other under MSME * 457 * 83667 2072 5775 333 16.05 3 Export Credit 425 175 41.12 2518 529 85 309 58.36 4 Education 1435 184 12.81 28775 1138 14086 211 18.51 5 Housing 5948 1783 29.98 188147 6996 52388 1769 25.29 6 Social Infrastructure 3914 15 0.39 90492 1410 51 11 0.77 7 Renewable Energy 271 1 0.31 31470 356 40 8 2.37 8 Others 0 2526 0.00 118795 3141 125899 1603 51.03 9 Total Priority Sector 109104 47233 43.29 4605384 126879 3386592 50697 39.96 Total Non-Priority 10 3252 15146 465.74 156715 5076 826761 32796 646.10 Sector Total Credit Plan 11 112356 62379 55.52 4762099 131955 4213353 83493 63.27 (9+10)

Bank wise performance is shown in Table no. 9(i), 9(ii), 10, 11(i), 11(ii) & 12

HIGHLIGHTS

. The potential credit outlay FY 2017-18 for 43.29% during corresponding period of priority sector lending was estimated as Rs. previous financial year. 126879 crore, with an increase of 16.29% over the projections of the previous financial . The Banks disbursed Rs 35977 crore to the year. agriculture sector against the target of Rs 94868 crore and achieved 37.92% of the . As against the target of Rs 1,31,955 crore target as against the achievement of 39.69% (priority & non-priority), under Annual Credit during same period of FY 2016-17. Plan for FY 2017-18, an amount of Rs 83,493 Achievement of Commercial banks, regional crore was disbursed till September 30, 2017, rural banks & cooperative banks were recording an achievement of 63.27 percent 40.58%, 22.36% & 39.12% respectively above than corresponding period of last year, during Sep-17 quarter of current fiscal. which was 55.52%. . Crop loans outlay of Rs. 67229 crores for FY . The Banks disbursed Rs 50697 crore to the 2017-18, constitutes a major share (51%) in priority sector against the target of Rs the credit plan. The credit flow to this sector 126878 crore with achievement index of was Rs 28943 crore with achievement of 39.96%, which is below the achievement of 43.05 percent during Q-2 of FY 2017-18.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 14

. Banks performed well under Ancillary credit off take was Rs 1769 crore at the end activities category and achieved 77.61% of of second quarter of current fiscal and the targets during Sep-17. Loans up to Rs. 5 achievement index was 25.29%. crore to co-operative societies of farmers, Loans for setting up of Agri-clinics and . Under MSME (priority sector), banks disbursed Agribusiness Centres, Loans for Food and Rs. 10809 crores during second quarter of FY Agro-processing up to an aggregate 2017-18 as against the target of Rs. 18441 sanctioned limit of Rs100 crore per borrower crores and achieved 58.61% of the target , Loans to Custom Service Units , loans to lower than the achievement of 64.55% during Primary Agricultural Credit Societies (PACS), same period of previous financial year. Farmers’ Service Societies (FSS) etc. come under ancillary activities. . Performance under Social Infrastructure & Renewable Energy sectors are yet to be . Against the allocation of Rs 6996 crore credit picked up as achievement during 2017-18 for the housing sector (priority sector), the was only 0.77% & 2.37% respectively.

Agency wise ACP performance FY 2017-18 up to September 30, 2017

Chart showing agency wise ACP achievement % against target FY 2017-18

160.00 139.47 140.00 120.00 100.00 88.94 79.93 80.00

60.00 47.50 36.79 39.12 37.88 37.17 40.00 28.30 27.64 22.36 23.88 23.15 17.06 17.47 19.36 20.00 1.75 4.67 4.90 0.48 0.00 Agriculture MSME Housing Education Priority Sector

PSBs RRBs Cooperative Banks Pvt. Banks

. Data suggests that private banks are . Regional Rural Banks could achieve only disbursing move towards agriculture and 22.36% up to Sep 30, 2017 under MSME sectors and achieved 79.93% and agriculture. RRBs need to give a serious 139.47% of their targets respectively for FY thought to the issue and increase finance to 2017-18 during first quarter of current fiscal. agriculture sector as they are among the Achievement index of cooperative banks drivers of agricultural credit in the State, under agriculture sector was 39.12% up to which is primarily an agrarian economy. September 30, 2017.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 15

. The MSME sector contributes significantly to incentives. The MSME sector in Madhya the State’s manufacturing output, employment Pradesh has witnessed significant and exports and is credited with generating transformation in recent times wherein new high employment. The Government of business opportunities have come up and Madhya Pradesh is poised to enable several diverse investments are being entrepreneurship through access to resources undertaken by the public and private sector and support in terms of infrastructure and players.

. Private Banks achieved 139.47% of their crore during second quarter of current fiscal, targets under MSME during Sep 30, 2017. they disbursed Rs. 183. Private Banks could However, targets given to private sector disburse only Rs. 24 crores. banks constitute only 15.21% of total targets under MSME, while it is 75.55% for Public . Under priority sector, Public Sector Banks Sector Banks. Looking to the performance of achieved 37.88 percent of the credit target private sector banks, their targets need to be for FY 17-18 and private banks achieved revised. 88.94% of their targets. However, PSBs disbursed Rs. 30027 crores, Pvt. Sector Banks . While Public Sector Banks disbursed Rs. 1561 could disbursed only Rs. 8453 crores. crores to housing sector with achievement index of 27.64%, Private sector Banks . Co-operative banks and Regional rural disbursement of Rs. 135 crores and achieved banks disbursed Rs. 9008 crores and 3208 17.47% of the targets. State Bank of India crores under priority sector and achieved was in the top with disbursement of Rs. 873 37.17% & 23.15% of the target crores. respectively.

. Public Sector Banks were pioneer in disbursement of education loans (Loans up to This issue is presented for discussion. 10 lakh). Out of total disbursement of Rs. 211

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 16

AGENDA NO-4 LEVY OF PENAL CHARGES ON NON-MAINTENANCE OF MINIMUM BALANCES IN SAVINGS BANK ACCOUNTS OF BENEFICIARIES OF DIFFERENT PENSION SCHEMES OF THE GOVERNMENT.

Background In the above matter Board of some banks have already exempted pensioners, minors It has been brought to the notice of the State and beneficiaries of social benefits from Government that due to wrong classification of government from the requirement of the savings accounts, opened for the purpose of minimum balance in savings account. getting pension under different schemes of the Government, some banks are charging penalty If, it is not exempted their ordinary savings on non-maintenance of minimum monthly accounts may be converted into BSBDA (Basic balance. Further to this, some banks are Savings Bank Deposit Accounts). This collecting charges for receiving Social Security account shall not have the requirement of any Pension. minimum balance.

With regard to levy of penal charges on non- Features of BSBDA maintenance of minimum balances in savings bank accounts, the banks have been prescribing a) While there will be no limit on the number the minimum balance to be maintained taking of deposits that can be made in a month, into consideration the cost involved in account holders will be allowed a maximum maintaining and servicing such accounts and also of four withdrawals in a month, including levying specific charges, if minimum balance is ATM withdrawals. not maintained. There is, however, no uniform b) Facility of ATM card or ATM-cum-Debit approach in this regard. Card. c) Holders of 'Basic Savings Bank Deposit RBI circular no. RBI/2014- Account' will not be eligible for opening any 15/308/DBR.Dir.BC.No.47/13.03.00/2014- other savings bank deposit account in that 15 dated 20.11.2014 on Levy of penal charges bank. If a customer has any other existing on non-maintenance of minimum balances in savings bank deposit account in that bank, savings bank accounts stipulates that he / she will be required to close it within 30 days from the date of opening a 'Basic  The policy on penal charges to be so Savings Bank Deposit Account'. levied may be decided with the d) If such account is opened on the basis of approval of Board of the bank. simplified KYC norms, the account would  Banks should inform customers additionally be treated as a 'Small Account' regarding the requirement of minimum and would be subject to conditions balance at the time of opening the stipulated for such accounts as indicated in account in a transparent manner. Any paragraph 2.7 of Master Circular of RBI no. subsequent changes in this regard DBOD.AML.BC.No.11/14.01.001/2012- should also be intimated to the account 13 dated July 02, 2012 on KYC norms. holders.  Instead of levying penal charges for non-maintenance of minimum balance in The matter is presented for discussion. ordinary savings bank accounts, banks should limit services available on such accounts to those available to Basic Savings Bank Deposit Accounts and restore the services when the balances improve to the minimum required level.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 17

BANKING FACILITY FOR SENIOR CITIZENS AND extend any banking facilities at the premises of DIFFERENTLY ABLED PERSONS their customers, without obtaining the required permission from Reserve Bank of India. However, Reserve Bank of India vide circular no. RBI/2017- in view of several requests received from various 18/89 DBR.No.Leg.BC.96/09.07.005/2017-18 government departments for making available dated 09.11.2017 instructed banks to put in place banking services including collection of cash at explicit mechanisms for meeting the needs of senior their premises and representations from banks, RBI citizens and differently abled persons with the advised banks to formulate a scheme for providing following specific provisions. services at the premises of a customer within the framework of Section 23 of Banking Regulation a) Dedicated Counters/Preference to Senior Act, 1949 with the approval of their Boards and Citizens, Differently abled persons submitted to the Reserve Bank for approval. Banks are advised to provide a clearly According to above mentioned framework, banks identifiable dedicated counters or a counter which can provide the following services to Individual provides priority to senior citizens and people who Customers/Natural persons: are differently abled including visually impaired (i)Pick up of cash, (ii) Pick up of instruments & (iii) persons. Delivery of demand drafts b) Ease of submitting Life Certificate These facilities can be provided either through own Pensioners can submit physical Life Certificate form employees or through Agents. Where banks at any branch of the pension paying bank. Banks engage the services of Agents for delivery of shall ensure that when a Life Certificate is services, it should be ensured that the policy submitted in any branch, including a non-home approved by the Board lays down the board branch, of the pension paying bank, the same is principles for selection of Agents and payment of updated/ uploaded promptly in CBS by the fee/commission etc. receiving branch itself, to avoid any delay in credit Further to that viewing of the difficulties faced by of pension. senior citizens of more than 70 years of age and c) Cheque Book differently abled or infirm persons (having medically certified chronic illness or disability) Banks are advised to provide minimum 25 cheque including those who are visually impaired, banks leaves every year, if requested, in savings bank were advised by RBI to make concerted effort to account, free of charge. Banks shall not insist on provide basic banking facilities, such as pick up of physical presence of any customer including senior cash and instruments against receipt, delivery of citizens and differently abled persons for getting cash against withdrawal from account, delivery of cheque books whenever a request is received, demand drafts, submission of Know Your Customer through a requisition slip. (KYC) documents and Life certificate at the premises/ residence of such customers. d) Automatic conversion of status of accounts All Banks have been advised to implement these Banks are advised that a fully KYC compliant instructions by December 31, 2017 in letter and account should automatically be converted into a spirit and give due publicity in their bank ‘Senior Citizen Account’ based on the date of birth branches. available in bank’s records. e) Door Step Banking The matter is put up for information/discussion RBI vide circular no. DBOD.No.BL.BC.42/C-168- 83 dated May 24, 1983 advised the Banks not to

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 18

AGENDA NO-5 RELIEF MEASURES IN DROUGHT AFFECTED AREAS

Government’s Notification The State Government vide its Gazette notification (Attached as Annexure-1) dated 02.11.2017 has declared 133 Tehsils of 18 districts drought affected area of a severe/moderate nature, having taken into account the conditions as arising from rainfall deficiency, decline in the availability of ground and surface water, poor crop conditions, and parameters related to remote sensing and socio- economic parameters etc. The affected districts are: Sr. Moderate Nature Sr. Severe Nature 1 Bhind 12 Ashok Nagar 2 Chhatarpur 13 Damoh 3 Panna 14 Gwalior 4 Satna 15 Sagar 5 Sidhi 16 Shivpuri 6 Shajapur 17 Tikamgarh 7 Sheopur 18 Vidisha 8 Morena 9 Datia 10 Shahdol 11 Umaria

In terms of RBI circular no. FIDD  Zonal Managers of commercial banks should No.FSD.BC.2/05.10.001/2016-17 dated be vested with certain discretionary powers so 01.07.2016 on “Relief Measures by Banks in that they do not have to seek fresh approvals Areas Affected by Natural Calamities”, from their central offices to the line of action Directorate of Institutional Finance, Govt. of M.P. agreed to by the district/State level bankers’ vide its letter no. 3916 dated 28.11.2017 committees (SLBCs) addressed to all Banks, LDMs and Collectors of affected districts has advised to provide relief Short Term Agriculture Loans measures to affected farmers. Gist of RBI Guidelines for Relief Measures by  All short-term loans, except those which are Banks in Area affected by Natural Calamity overdue at the time of occurrence of natural calamity, should be eligible for restructuring.  The banks’ contribution in providing relief The principal amount of the short-term loan as relates to rescheduling of existing loans and well as interest due for repayment in the year sanctioning of fresh loans as per the emerging of occurrence of natural calamity may be requirements of the borrowers. converted into term loan.  In case the calamity has affected only a small  The repayment period of restructured loans part of the State/few districts, the conveners may vary depending on the severity of of the District Consultative Committees (DCC) calamity and its recurrence, the extent of loss of the affected districts should convene a of economic assets and distress caused. A meeting immediately. In these special DCC maximum period of repayment of up to 2 meetings, the position in the affected areas years (including the moratorium period of 1 should be assessed to ensure speedy year) is to be allowed if the loss is between formulation and implementation of suitable 33% and 50%, and if the crop loss is 50% or relief measures by banks. more, the restructured period for repayment  The common thread to extend relief may be extended to a maximum of 5 years measures is that the crop loss assessed (including the moratorium period of one year). should be 33 per cent or more.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 19

Agriculture Loans - Long term (Investment) Sanctioning of Fresh Loans Credit  Once the decisions on the rescheduling of loans is taken by SLBC/DCC, pending such  Natural Calamities where only crop for that conversion of short-term loans, banks shall year is damaged and productive assets are grant fresh crop loans to the affected farmers not damaged, the banks may reschedule the which will be based on the scale of finance for payment of installment during the year of the particular crop and the cultivation area, as natural calamity and extend the loan period per the extant guidelines. by one year. Under this arrangement the  Banks shall also grant consumption loans up to installments defaulted wilfully in earlier years Rs. 10,000/- to existing borrowers without will not be eligible for rescheduling. The banks any collateral. The limit may, however, be may also have to postpone payment of enhanced beyond Rs. 10,000/- at the interest by borrowers. discretion of the bank.

Other Loans Utilization of Insurance Proceeds.

 A view needs to be taken by SLBC/DCC  The proceeds of insurance claim from National depending on the severity of the calamity for Crop Insurance Programme should be adjusted reschedulement of all other loans like allied to Restructured Accounts. However, it should be activities, rural artisan, traders, micro/small done in cases where banks have granted fresh units etc. If decision is taken to postpone loans to the affected farmers. recovery of all the loans by the specified period, banks will assess the requirement of the individual borrowers depending on the Asset Classifications nature of his account, repayment capacity and  The restructured portion of the short-term as the need for the fresh loans. The primary well as long-term loans can be treated as consideration will be viability of the venture current dues and need not be classified as after the rehabilitation programme is NPA (non-performing asset). Nevertheless, implemented. banks are required to make higher provisions

for such restructured standard advances.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 20

ACTION BY VARIOUS STAKE HOLDERS Sr. Action by the State Status Sr. Action by Banks Status Government A Declaration of Natural Done A Convening special DCC meetings Spl. DCC/DCC Calamity in the State in affected 18 districts meetings were held in Satna, Datia,Chhatarpur, Panna,Tikamgarh, Vidisha, Sidhi & Bhind districts till 12.12.2017. Other 10 districts have to convene such meeting.

B Notifying Done B Providing relief measures in districts/Tehsil/Village terms of RBI circular no. FIDD hit/affected by the No.FSD.BC.2/05.10.001/2016- calamity 17 dated 01.07.2016 on “Relief C Conducting a survey for * C Measures by Banks in Areas assessment of the Affected by Natural Calamities” percentage of loss in standing crops in districts D Providing list of farmers Annewari D with certificate of loss certificates have (Annewari Certificate) been issued in incurred in their standing Tikamgarh, crops, to banks for further Umaria, Sidhi, action Morena, Gwalior & Sagar districts till 10.12.2017

This issue is put up for discussion.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 21

AGENDA NO-6 MUKHYA MANTRI KRISHAK UDYAMI YOJANA AND AMENDMENTS IN MUKHYA MANTRI SELF EMPLOYMENT SCHEMES

MSME department, Government of Madhya Pradesh vide letter no. F2-121/2017/A-73 dated 16.11.2017 has launched a new scheme namely “Mukhya Mantri Krishak Udyami Yojana” and amended 3 flagship self-employment generation schemes. A brief note is given below: Mukhya Mantri Krishak Udyami Yojana (New Mukhya Mantri Yuva Udyami Yojana Scheme) Amendments- This scheme has been launched for farmer’s (i) Project cost increased from Rs. 1 son/daughter to establish agriculture crore to Rs. 2 crore based/allied a new manufacturing and service (ii) (ii) Income- applicant's family unit e.g. agro processing, food processing, milk should not be an income tax processing, cold storage, cattle feed, poultry payer. feed, fish feed, custom hiring Centre, tissue (iii) (iii) Interest subsidy- Maximum culture, cattle feed, vegetable dehydration, Dal cap will be 5 lakh per year mill, rice mill, oil mill, flour mill etc. (iv) Eligible units- New clause “Eligible to get CGTMSE cover” is Project cost- Rs. 10 lakh to 2 crores added. Eligibility  Age- 18-40 years Project cost- Rs. 10 lakh to 2 crores  Educational Qualification- Minimum 10th pass Eligible project- Industry (Manufacturing) and  Income- No limit but the applicant's family Services Sector (eligible to get CGTMSE cover) should not have already established any Applicable for new units only. business or industry and should not be an income tax payer. Eligibility  Financial assistance  Age- 18-40 years a) Margin money-  Educational Qualification- Minimum 10th  15% of the project capital pass cost (Max 12 lakh) for  Income- No limit but the applicant's family General category should not have already established any  20% of the project capital business or industry and should not be an cost (Max 18 lakh) for BPL income tax payer. category  Financial assistance b) Interest subsidy-6% per year of the a) Margin money- project capital cost for women & 5%  15% of the project capital per year for others for 7 years (max cost (Max 12 lakh) for 5 lakh per year) General category c) CGTMSE Guarantee fees- At the  20% of the project capital prevailing rate for 7 years. cost (Max 18 lakh) for BPL  Farmer’s son/daughter will be those category whose parents or self-have agriculture b) Interest subsidy-6% per year of the land and they are not an income tax project capital cost for women & 5% payer. per year for others for 7 years (max 5 lakh per year) c) CGTMSE Guarantee fees- At the prevailing rate for 7 years. Security- No collaterals required. Loans will be covered through credit guarantee schemes.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 22

Mukhya Mantri Swarojgar Yojana Mukhya Mantri Arhik Kalyan Yojana Amendments- Amendment- (i) Income- applicant's family should (i) Margin money subsidy-Minority & Vimukt not be an income tax payer. ghumakkad & Ardh ghumakkad added (ii) (ii) Interest subsidy- Specifically women is added and it would be 6% Project cost- Maximum Rs. 50000 (iii) (iii) Eligible units- New clause “Eligible to get CGTMSE cover” is Eligible project- Street vendor, Kesh Shilpi, added. Haath Thela, Cycle/Rikshaw driver & Potter Applicable for new units only. Project cost- Rs. 50000 to 10 lakh Eligibility Eligible project- All Industry (Manufacturing),  Age- 18-55 years Service and trading (eligible to get  Educational Qualification- No any CGTMSE/CGFMU cover) Applicable for new  Income- Member of National Food units only. Mission/PDS card holder  Financial assistance Eligibility d) Margin money-  Age- 18-45 years  15% of the project cost for  Educational Qualification- Minimum 5th pass General category  Income- No limit but the applicant's family  50% of the project cost for should not have already established any BPL/SC/ST/Women/Handicapp business or industry and should not be an ed/Minority/OBC (except income tax payer. creamy layer) /Vimukt  Financial assistance Ghumakkad & Ardh Dhumakkad a) Margin money- Tribes (maximum Rs. 15000)  15% of the project cost (Max. 1 lakh) for General category Security- No collaterals required.  30% of the project cost (Max 2 lakh) for This issue is put up for discussion. BPL/SC/ST/Women/Handicap ped/Minority/OBC (except creamy layer) category b) Interest subsidy-6% per year of the project cost for women & 5% per year for others for 7 years (max 25000 per year) c) CGTMSE Guarantee fees- At the prevailing rate for 7 years.

Security- No collaterals required. Loans will be covered through credit guarantee schemes.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 23

GROWTH PATTERN IN FLAGSHIP EMPLOYEMENT GENERATION PROGRAMMES OF THE STATE GOVT. DURING LAST THREE YEARS & CUURENT FISCAL

 In Madhya Pradesh, 30% of population is in the age group of 15-30 years; huge potential for employment growth.  Madhya Pradesh Government has been supporting entrepreneurs/ Self-Employment by providing an enabling environment for job creation and entrepreneurship.  In the year 2014, 13 self-employment schemes of Madhya Pradesh Government were merged into following 3 major flagship schemes.

 The below mentioned figures show growth and coverage of these schemes, which resulted in achievement of 100% against target. Number of beneficiaries Mukhyamantri Yuva Udyami Yojana Year Target Disbursement Achievement % 2014-15 1000 995 99.50 2015-16 1500 1510 100.67 2016-17 2000 2030 101.50 2017-18* 2000 544 27.20 Mukhyamantri Swarojgar Yojana Year Target Disbursement Achievement % 2014-15 31600 32611 103.20 2015-16 54000 54318 100.59 2016-17 68000 68386 100.57 2017-18* 85400 29021 33.98 Mukhyamantri Arthik Kalyan Yojana Year Target Disbursement Achievement % 2014-15 20700 17953 86.73 2015-16 16000 17848 111.55 2016-17 30000 31079 103.60 2017-18* 43600 13249 30.39 Total (all 3 Self Employment Schemes) Year Target Disbursement Achievement % 2014-15 53300 51559 96.73 2015-16 71500 73676 103.04 2016-17 100000 101495 101.50 2017-18* 131000 42814 32.68

*Up to 31st October 2017

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 24

AGENDA NO-7 PROGRESS UNDER OTHER GOVERNMENT SPONSORED SCHEMES

Amount in crore Beneficiary Financial Target Year (Margin Money) Margin Money Number Achievement % disbursed 2014-15 81.82 2847 95.63 116.87%

2015-16 81.27 1979 81.16 99.86%

2016-17 99.72 1941 83.42 83.65%

Progress report FY 2017-18

M.M.-Margin Money amount in crores As on 31.10.2017 DISBURSEMENT BY SANCTIONED BY TARGET FORWARDED TO BANK BANK Achi% BANK (ONLINE+OFFLINE) NO. M.M. NO. M.M. NO. M.M. NO. M.M. M.M. AGENCY DIC 3825 75.87 3528 172.98 816 35.30 409 17.41 46.53

KVIB 2868 56.90 1154 46.37 324 14.02 173 6.71 24.64

KVIC 2868 56.90 750 31.69 286 12.31 111 5.49 21.63

Total 9561 189.68 5432 251.04 1426 61.63 693 29.61 32.49

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 25

Achievement up to 30.09.2017 Amt. in crore

FY 2017-18 Particulars Number Amt. Target 65122 734.37 Cases submitted 25567 367.39 Sanctioned 15320 214.9 Disbursed 12315 163.86 Achievement% (Disbursed) 19 22 Sanctioned % over submission of 60 58 cases

As on 31.10.2017 Amount in crores BANK TYPE TARGET SHISHU KISHORE TARUN TOTAL ACHI FY No. Amt. No. Amt. No. Amt. No. Amt. % 17-18 AMT. PUBLIC SECTOR 5000 39127 83 48637 1059 14958 1066 102722 2207 44.15 BANKS PVT. SECTOR 752 264256 724 9863 184 1516 93 275635 1002 133.19 BANKS RRBS 675 11084 40 6133 100 457 28 17674 169 25.01 BANK'S 6427 314467 848 64633 1343 16931 1187 396031 3378 52.56 SUB-TOTAL MFIS 3283 900284 2181 1818 12 4 0 902106 2194 66.82 NBFCS 40652 93 2375 47 30 2 43057 142 SMALL FINANCE 40189 100 4264 117 1134 75 45587 292 BANKS TOTAL 9710 1295592 3222 73090 1518 18099 1265 1386781 6006 61.85

Bank wise list is given in Table no.29

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 26

Disbursed amt. in crores As on 31.03.2017 As on 31.10.2017 Category Number Amt. Number Amt.

Female 1392 309.89 1844 423.15 General 1089 245.83 1480 346.25 Minority 71 17.64 79 19.26 OBC 161 32.56 195 39.31 SC 54 10.07 71 12.55 ST 17 3.79 19 5.78 Male 323 60.79 375 69.13 SC 231 43.74 264 48.85 ST 92 17.05 111 20.28 Total 1715 370.68 2219 492.29

Bank wise performance is shown in Table no.30

Performance of Top 10 Districts (Number) in M.P. under Standup India Scheme Amt. in crore As on 31.10.2017 Sr. Name of the District Number Amount 1 Indore 384 88.92 2 Bhopal 281 64.16 3 Jabalpur 175 41.13 4 Gwalior 155 39.03 5 Ujjain 118 24.47 6 Rewa 59 14.98 7 Narsinghpur 54 10.09 8 Hoshangabad 53 8.28 9 Chhindwara 51 12.11 10 Dhar 51 9.11

Bank wise performance is shown in Table no.31

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 27

AMENDMENT The Cabinet has recently approved the increase in the carpet area of houses eligible for interest subsidy under the credit linked subsidy scheme for the middle income group under Pradhan Mantri Awas Yojana (PMAY). a) After the latest amendment is incorporated, carpet area has been increased in the middle income group (MIG-I) category of credit linked subsidy scheme (CLSS) from the existing 90 square metre to up to 120 square meter. b) In respect of the middle income group (MIG) II category of credit linked subsidy scheme, Carpet area has been raised from the existing 110 square meter to up to 150 square meter. c) The CLSS for MIG covers two income segments in the MIG, including Rs. 6 lakh to Rs. 12 lakh (MIG-I) and Rs. 12 lakh to Rs. 18 lakh (MIG-II) per annum. d) In the middle income group 1 category, an interest subsidy of 4% is allowed for loan amounts up to Rs. 9 lakh while in the middle income group 2 category an interest subsidy of 3% is allowed for loan amount of Rs. 12 lakh. Housing loans above 9 lakh and 12 lakh will be at non-subsidized rates. e) The interest subsidy will be calculated at 9% NPV over maximum loan tenure of 20 years or the actual tenure, whichever is lesser. f) The above changes are effective from 01.01.2017. g) The CLSS for MIG is currently effective up to 31.03.2019. Progress under PMAY-Urban

Cumulative up to Cumulative up to FY 2017-18 Particulars 31.03.2017 30.11.2017 No. of sanctioned cases 1874 5242 3368 (Banks & HFCs) Subsidy released 32 98.05 66.05 Rs. in crores

ISSUES

 With a view to provide easy Home loans to EWS beneficiaries, Urban Administration and Development (UAD) has issued guidelines and model tripartite agreement during last SLBC meeting. Under Affordable Housing in Partnership (AHP) Vertical of Pradhan Mantri Awas Yojana 1,30,682 EWS houses have been sanctioned. Loan tie-ups for EWS beneficiaries is to be done by banks and FIs. – Review of progress under this vertical and future course of action shall be discussed.  Government of Madhya Pradesh is committed to provide Pucca House to all the Houseless Urban Poors. Till now state has got sanction of more than 4 lakh houses under Pradhan Mantri Awas Yojana(Urban). For faster implementation of the scheme and time-bound completion of EWS houses, Urban Administration and Development (UAD) is planning to raise Rs. 1500 Crores Funding from Bank/FIs – UAD will be floating tender in this regard and shall expect participation from Banks/FIs.  Any other issue from Central Nodal Agency, Bank/HFI or SLNA side with the permission of Chairperson.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 28

ISSUES RELATED TO GOVT. SPONSORES SCHEMES Improper distribution of loan applications

 It has been reported that uniform distribution of applications for loan under different government sponsored schemes is not happening at the field level, which results in a situation in which some of the bank branches find themselves saddled with quite a large number of applications whereas many other branches receive relatively less number of applications.  Ideally, uniform distribution of applications amongst bank branches is desirable in the interest of expeditors processing and completion of associated formalities for consideration of loan applications on merit by branches. This will also help in achieving of the targets allotted to braches within the time limits.  Implementing agencies of various government sponsored schemes may be advised to ensure proper distribution of applications amongst bank branches for effective implementation of the schemes.  In order to reducing the rejection rate, submitted proposal should not be more than 125% of the targets (as decided in the last SLBC meeting).

DAY-NULM

It is informed by Municipal Corporation, Bhopal that proposals of DAY-NULM under Mukhya Mantri Arthik Kalyan Yojana/Swarojgar Yojana are pending with the following banks.

Period 01.04.2017 to 08.12.2017 Amount in crores No. of No. of No. of No. of Application Sr. Application Application for Application Bank Returned/Rejected No Received sanctioned Disbursed No Amt. No Amt. No Amt. No Amt. 1 Axis Bank 185 1.83 0 0.00 2 0.02 0 0.00 2 Bank of Baroda 423 4.95 71 0.84 14 0.13 7 0.03 3 Dena Bank 108 1.21 37 0.39 16 0.20 11 0.15 4 Federal Bank 13 0.19 0 0.00 0 0.00 0 0.00 5 HDFC Bank Ltd. 106 1.02 0 0.00 0 0.00 0 0.00 6 IDBI Bank Ltd. 43 0.55 9 0.12 0 0.00 0 0.00 7 Indian Bank 73 1.10 18 0.23 10 0.12 0 0.00 8 Indian Overseas Bank 200 2.35 98 1.17 4 0.04 0 0.00 9 Karnataka Bank 18 0.16 0 0.00 0 0.00 0 0.00 10 Oriental Bank of Comm. 246 2.81 0 0.00 7 0.07 0 0.00 11 Punjab & Sindh Bank 69 0.85 51 0.61 7 0.09 0 0.00 12 State Bank of India 1811 20.85 392 4.21 126 0.86 6 0.04 13 UCO Bank 217 2.35 31 0.26 6 0.12 6 0.12 14 United bank of India 44 0.50 1 0.01 0 0.00 0 0.00 15 Vijaya Bank 90 1.22 2 0.01 4 0.04 0 0.00 Grand Total 3646 41.93 710 7.86 196 1.68 30 0.33

The matter is put up for discussion.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 29

AGENDA NO-8 OPENING OF “BANKING OUTLETS” IN VILLAGES HAVING POPULATION 5000 AND ABOVE

 During last SLBC meeting held on 18.09.2017, the house approved the allotment of 32 remaining unbanked villages to the banks based on respective Sub Service Areas (SSAs) of the centres. Concerned banks were advised to open “Banking Outlets “latest by 31st December 2017. It was mentioned that RRBs are not granted permission by the RBI. After discussion, it was decided that the sponsor banks of the Central Madhya Pradesh Gramin Bank and Madhyanchal Gramin Bank should shoulder the responsibility of its own RRB and if RRBs are unable to open banking outlet then sponsor bank should open the banking outlets at those places.

 During the quarter, 28 more centres have been covered though banking outlets manned by business correspondents. Now, out of 47 identified centres, 43 centres have been covered by banks till 15.12.2017. 15 Centres have been covered through brick and mortar branches and 28 centres have been covered through Baking Outlets manned by business correspondents.

 4 centres still remain to be covered. Sub service areas of these village in Bhind districts fall under Central Madhya Pradesh Gramin Bank (CMPGB). Since, neither CMPGB nor it’s sponsored bank i.e. Central Bank of India are not in a position to open their banking outlets due to some genuine reasons, the house is requested to deliberate on the issue and allot these centres to some other banks, which have presence in Bhind district.

The matter is placed for discussion.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 30

AGENDA NO-9 CREDIT DEPOSIT RATIO

SR. IMPORTANT INDICATORS SEPTEMBER-16 SEPTEMBER-17

1 (i) Aggregate Deposits (crore) 304013 348872 (ii)Bank Credit (crore) 220042 257744 2 Population wise share in total deposits (Percent) (i) Rural 14.21 14.41 (ii) Semi-urban 57.22 60.83 (iii) Urban 28.58 24.76 2A Population wise share in total advances (Percent) (i) Rural 18.93 18.61 (ii) Semi-urban 53.40 56.56 (iii) Urban 27.67 24.83 3 All SCB-Annual Growth Rates (Percent) (i) Aggregate Deposits -3.73 15.29 (ii) Bank Credit 11.68 13.81 3A Bank Group-Annual Growth Rates (Percent) Public Sector Banks (i) Aggregate Deposits -5.30 14.96 (ii) Bank Credit 9.20 12.78 Private Banks (i) Aggregate Deposits 14.09 18.45 (ii) Bank Credit 23.54 18.14 Regional Rural Banks (i) Aggregate Deposits 24.22 6.70 (ii) Bank Credit 13.62 3.30 4 Credit Deposit Ratio (Percent) Commercial Banks 71.12 70.21 Regional Rural Banks 61.27 59.31 Cooperative Banks 101.72 141.19 Madhya Pradesh 72.38 73.88* All India (SCBs) 72.80 73.30

 On a year-on-year (y-o-y) basis, aggregate deposits grew at the rate of 14.75% in all population groups (except in urban areas); on the other hand, however, bank credit decelerated across all population groups except in semi urban areas.  Semi-urban bank branches continued to hold the largest share of aggregate deposits (60.83 %) and total bank credit (56.56%).  Annual growth rate in aggregate deposits of scheduled commercial banks (PSBs & Pvt. Banks) was 15.29%, whereas it was 13.81% for credit.  The credit-deposit (C-D) ratio of all SCBs in the state came down to 70.21% by Sep- 2017 from 71.12% a year ago.  However, CD ratio of the state increased from 72.38% a year ago to 73.88% during Sep- 2017.

*The above CD ratio excludes credit portfolio, which have been financed from outside the state but credit facilities are being availed here. Hence, the actual CD ratio will be on a higher side. Bank wise deposits, advances & CD Ratio is shown in Table no. 3(i)

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 31

DISTRICTS WITH CD RATIO BELOW 40% AS ON 30.09.2017 Amount in crores DEPOSITS ADVANCES CD RATIO% SR. DISTRICTS LEAD BANK 30.06.17 30.09.17 30.06.17 30.09.17 30.06.17 30.09.17 1 UMARIA SBI 1736 1824 425 447 24.47 24.50 2 DINDORI CBOI 1020 978 293 281 28.72 28.68 3 SHAHDOL CBOI 3453 3528 1107 1122 32.05 31.80 4 MANDLA CBOI 2521 2567 907 911 35.99 35.50 5 TIKAMGARH SBI 3128 3126 1143 1210 36.53 38.71

District wise deposits, advances & CD Ratio as on 30.09.2017 is shown in Table no. 3(ii)

 Where Dindori, Shahdol, Mandla & Umaria districts always fall under the category of low CD ratio districts, Tikamgarh district ever go out of this category and then come back.  A special DCC meeting was conducted in Umaria district on 27.04.2017 to draw monitor able action points to increase the credit deposit ratio.

Action taken report on Minutes of Special DLCC meeting held on 27.04.2017 at UMARIA- Status as on 30.11.2017 Sr. Action Point Department Action Taken 1 Agriculture loan melas should be arranged Banks and Dy. The Banks and District Administration have arranged with the help of district adminnistration and Director following loan camps to provide informations to Banks to provide information regarding loans Agriculture farmers :- (1). Kisan Vigyan Mela 24.05.17. (2). on low intrest rate, intrest subvention on timely Hariyali Mahotsav on 10.07.17 (3). Krishi Melas from repayment and financial institutions. 15th Sept. To 30th sept 17 in three Blocks. (4) Krishi Mela on 03.11.2017. (5) Swarojgar mela on 02.12.2017. Large number of people visited the camps and sight. 2 For recovery of Banks loan a recovery team Banks and District administration has informed that Bank consisting of Bank’s Officials and Tehsildar District Officials are not coming forward for recovery with should be formed. They will visit5 large administration the support of them. District administration has borrowers of village with the helpo of Police. assured for their whole hearted support. It will create awareness among farmers to repay the Bank loans. 3 Employement and income of farmers may be Banks and Dy. 29 dairy cases have been sanctioned out of 229 increased by encouraging Dairy Director applications forwarded to Banks. A few banks are in activity.Collector has requested that each Veternary the process of execution of Tripartite Agreement with Banks should finance minimum 10 dairy loans M.P Dugdha Sangha. to large farmers to increase CD ratio of A few banks are insisting for a collateal security due distrrict.Bankers has given consent to provide to their Corporate policies. However, they have taken loans in. viable cases up the issue with their Controlling Officers for guidance. 4 Scale of Finance for crop loan should be Banks and Dy. The scale of finance has been fixed based on the revised and agricultre loan to be increased by Director recommendations of a committee comprising of sanctioning new crop loans and increasing Agriculture District Collector DCCB & Agri Department. The same existing crop loans. is being reviewed every year. The banks will follow the scale of finance fixed by the committee. 5 Mudra loans should be sanctioned by Banks in Banks and DIC We have provided the list of Trainees of RSETI to SME segment, specially to youths have ITI, Govt. Departments to prepare loans cases under Polytechnic and RSETI training. various Govt. Sponsored Schemes. The forms have been made available at RSETI and duly filled in forms are being forwarded to respective

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 32

departments for onward submission to banks.

6 Possibility of finance for Bamboo cultivation Banks and Dy. Farmers are being encouraged for Bamboo should be searched on the line of Amlai Paper Director plantation with the help of Horticulture and Mill financed. Agriculture Agriculture Department. 7 Stand up India scheme should be popularised DIC Efforts are being made by all Banks to finance all to increase advance of district. viable cases. 8 Collector has directed to Dy. Director Banks and Dy. Banks have arranged 5 Kisan Mela from May,17 to Agriculture to provide list of farmers who has Director december,17 to create awareness among the not availed loan from Banks with the help of Agriculture farmers about the huge of loans available for Chief Executive Officer Janpad Panchayat. Agriculture purpose. Effortsa are being made by He should also informed that crops that can Banks, but due to huge level of NPA, bankers are not be cultivated. enthusiative about the same. 9 Awareness to be created among Farmers for Banks and Dy. Farmers have been provided information regarding cultivation of Cash crops by arranging camps Director advantage of cash crop by arranging 5 camps from jointly by Banks and Agriculture department. Agriculture May,17 to December,17 by Banks. 10 Collection Centers for forest produce to be Dy. Director Effort are contnued with the help of Forest established to increase income of Farmers. Agriculture department. 11 Loan to Farm Mechenisation, Power Tillers, Banks and Dy. The survey has been completed by the Agriculture Tractors, Pump set,Solar Pump to be provided Director Department. Banks will provide finance to all such to increase advance.Financing of Power Tillers Agriculture Agriculturist subject to eligibility. should be given importance due low land holding. 12 Loans should be provided to Self Help groups Banks and Jila The Banks and SRLM Department are working in of ladies, because their repayment of loan is Panchayat/ close liasioning and have been pursuading for good. Janapad opening of accounts of SHGs. Panchayat 13 Banks should give preference to construction Banks and Dy. Agriculture department is encouranging big farmers of Warehoue,because District has shortage of Director for construction of warehouse. godown for warehousing of crops. Agriculture 14 Flyash is available in the district, hence Banks and DIC Efforts are being made by DIC to mobilise Industries related to flyash should be enterpreneurs for such industry . encouraged. 15 Establishment of Agro based industries such as Banks and DIC DIC is conducting market survey for entreprenuer for Rice Mill, Dal Mill, Edible Oil Mill etc Should these activities. be given preference. 16 Minerals exploration work is undertaken Banks and DIC Presently large entities from outside from Umaria mainly in Umaria district, hence loan for district are engaged in these activities and do not related work as Transport Operators, Cargo transact with Banks of Umaria. These entities are Operators and exploration’s Machines may availing Banking facilities from their Corporate be provided preferably. Offices situated outside. However, Banks are trying for their business. 17 Education loans to Students of Umaria district Banks Banks are sanctioning education loans to students on to be given preferably. Committee has priority. opinion that Banks should have positive 18 Banks should complete 100% targets of Bank and DIC Position of GSS as on 30.11.2017 is as under:- different GSS schemes as MMYUY, MMUSY, Scheme Target Appl sent sanction MMAKYetc. MMYU 11 13 08 MMYSY 771 1629 513 MMAKY 410 616 191 PMEGP 61 25 03 Banks will ensure achievement of targets under various Govt. Sponsored Schemes. 19 Banks should preferably sanction loans for Banks Banks are sanctioning loans to Personal Banking House, Car, and Personal Loan segment on regular basis.

This issue is presented for discussion.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 33

AGENDA NO-10 DIGITAL TRANSACTIONS

STATUS Chart showing volume of digital transactions of country (Number in crores) Y-o-Y growth % Y-o-Y growth Mode of Digital Txn. Sep-15 Sep-16 Sep-17 Sep-16 % Sep-17 RTGS 0.78 0.84 0.96 7.69 14.29 NEFT 9.85 12.01 15.77 21.93 31.31 Mobile Banking 2.71 7.26 8.63 167.90 18.87 Source-www.rbi.org.in  The pattern of above mode of digital transactions show that there is sharp increase in mobile banking transactions between Sep-16 to Sep-17. Whereas, growth is slowed down between Sep-16 to Sep-17.  RTGS and NEFT transactions have shown a growth at the rate of 7.69% and 21.93 % respectively during the period Sep-15 to Sep-16. Whereas, it was 14.29% and 31.31% respectively during Sep-16 to Sep-17 and the behavior of electronic payments suggests that the surge in digital activity has been sustained now after demonetization. (Number in crores) Debit and DATE CTS IMPS NACH UPI USSD* Credit Cards PPI at POS 16-Sep 8.71 3.62 15.25 0.03 0.07 20.55 5.9 17-Sep 9.22 8.29 17.6 3.08 2.03 24.03 8.75 Y-o-Y growth % 6 129 15 10167 2800 17 48 Source-npci.org.in

 Above data reveal that IMPS, UPI and Mobile Banking are gaining popularity amongst other modes of digital payments and their volumes increased by 129%, 10167% and 18.87% respectively year on year during September 2017.

Digital transactions status Madhya Pradesh as on 30.09.2017 Number in lakh Total no. of No. of txn. No. of txn. txn. During Between Between Sr. Mode of Digital txn. half year 01.04.2017 to 01.07.2017 to of current 30.06.2017 30.09.2017 fiscal 1 UPI 22.55 89.40 111.95 2 USSD 0.02 0.08 0.10 3 Aadhaar Pay 0.78 4.14 4.92 4 IMPS 39.74 140.32 180.06 5 Debit Cards@ATMs 2277.21 1472.04 3749.25 6 Bharat QR Code 0.13 0.10 0.23 7 Debit/Credit cards @POS 178.39 220.35 398.74 8 Mobile Banking 56.51 88.55 145.06 9 Internet Banking 590.97 455.07 1046.04 Total 3166.30 2470.05 5636.35

Above data pertain to 20 major banks, which shows that 56.36 crore (No.) digital transactions have been made against the annual target of 129 crore set for the current year and we may project that such target will be achieved.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 34

AGENDA NO-11 Financial Inclusion

Status as on 30.11.2017 Number & amount in lac Particulars Status Madhya Pradesh [A] Operative CASA Accounts 31.03.2017 30.06.2017 30.11.2017 Progress over Mar-17 No. of operative CASA bank a/c 520.53 529.91 588.53 68.00 No. of a/c seeded with Aadhaar 357.8 366.85 463.25 105.45 Aadhaar seeding % 68.74 69.23 78.71 9.98 No. of a/c seeded with mobile no. 309.31 316.79 378.67 69.36 Mobile seeding % 59.42 59.78 64.34 4.92 [B] PMJDY Accounts 0.00 No. of PMJDY Accounts 248.58 258.03 266.19 17.61 Balance held in the accounts 283274 307189 305838 22564 Average Bal. in the accounts (Rupees actual) 1140 1190 1149 9.00 No. of Zero Balance a/cs 67.79 68.13 57.93 -9.86 % of Zero Balance accounts 27.27 26.40 21.76 -5.51 No. of Aadhaar seeding 160.26 184.42 203.1 42.84 Aadhaar seeding % 64.47 71.47 76.30 11.83 RuPay card issued 179.65 186.4 190.54 10.89 RuPay card activation % 34.46 42.12 43.44 8.98 Bank wise data is given in Table No. 25

. As on 30th November 2017, there were 5.89 crores operative savings accounts including PMJDY accounts. Total numbers of PMJDY accounts were 2.66 crores in the State. . Out of total operative SB accounts, percentage of Aadhaar and mobile seeding was 78.71% and 64.34% respectively. . In PMJDY accounts, percentage of Aadhaar seeding was 76.30%. . 21.76% PMJDY accounts are still inoperative and there were no balance in these accounts as of 30th Nov- 2017. . Total balance in PMJDY accounts was Rs. 3058 crores, which comes to Rs. 1149 per account on an average. . During current fiscal, 17.61 lakh new PMJDY accounts were opened till 30.11.2017. Outstanding balance in PMJDY accounts also increased by Rs. 225 crores during the period Mar to Nov-2017.

Bank wise Aadhaar authentication status as on 30.11.2017 Number in lakh Sr. Bank Name Number of Number of % of Number of % CASA operative Aadhaar CASA Authenticated authentication CASA seeded CASA Aadhaar CASA seeding 1 Allahabad Bank 17.74 15.12 85.23 10.23 57.67 2 Andhra Bank 1.39 0.90 64.75 0.87 62.59 3 Bank of Baroda 20.44 15.33 75.00 10.36 50.68 4 Bank of India 65.71 53.03 80.70 32.27 49.11 5 Bank of Maharashtra 14.12 10.29 72.88 5.06 35.84 6 Canara Bank 8.88 6.99 78.72 4.25 47.86 7 Central Bank of India 41.28 36.02 87.26 25.23 61.12 8 Corporation Bank 4.00 3.36 84.00 3.14 78.50 9 Dena Bank 3.54 3.24 91.53 2.06 58.19 10 IDBI Bank Ltd. 4.66 3.20 68.67 2.30 49.36 11 Indian Bank 1.79 1.35 75.42 0.47 26.26 12 Indian Overseas Bank 1.78 1.31 73.60 0.71 39.89

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 35

13 Oriental Bank of Commerce 4.32 2.80 64.81 2.53 58.56 14 Punjab & Sind Bank 0.93 0.78 83.87 0.60 64.52 15 Punjab National Bank 29.07 25.07 86.24 17.39 59.82 16 State Bank of India 216.00 170.74 79.05 88.30 40.88 17 Syndicate Bank 3.92 3.16 80.61 1.59 40.56 18 UCO Bank 11.39 8.61 75.59 2.90 25.46 19 Union Bank of India 26.11 19.78 75.76 9.53 36.50 20 United Bank of India 0.51 0.34 66.67 0.20 39.22 21 Vijaya Bank 2.40 1.75 72.92 1.66 69.17 PSBs Sub-total 479.98 383.17 79.83 221.65 46.18 22 Airtel Payment Bank 14.28 14.28 100.00 14.28 100.00 23 Axis Bank Ltd 5.96 3.85 64.60 3.57 59.90 24 Bandhan Bank 2.45 0.00 0.00 0.00 0.00 25 Catholic Syrian Bank Ltd 0.02 0.02 100.00 0.00 0.00 26 City Union Bank Ltd 0.04 0.02 50.00 0.00 0.00 27 DCB Bank Limited 0.37 0.21 56.76 0.01 2.70 28 Dhanalakshmi Bank Ltd 0.01 0.00 0.00 0.00 0.00 29 Federal Bank Ltd 0.28 0.22 78.57 0.17 60.71 30 HDFC Bank Ltd 7.02 4.59 65.38 4.59 65.38 31 ICICI Bank Ltd 7.24 4.59 63.40 4.05 55.94 32 IDFC Bank Ltd. 1.73 1.55 89.60 1.49 86.13 33 IndusInd Bank Ltd 1.03 0.89 86.41 0.89 86.41 34 Jammu & Kashmir Bank Ltd 0.03 0.01 33.33 0.00 0.00 35 Karnataka Bank Ltd 0.36 0.23 63.89 0.09 25.00 36 Karur Vysya Bank 0.12 0.07 58.33 0.03 25.00 37 Kotak Mahindra Bank Ltd 0.92 0.72 78.26 0.64 69.57 38 Lakshmi Vilas Bank Ltd 0.05 0.03 60.00 0.00 0.00 39 RBL Bank Ltd 1.61 1.28 79.50 0.95 59.01 40 South Indian Bank Ltd 0.07 0.05 71.43 0.03 42.86 41 Tamilnadu Mercantile Bank 0.04 0.04 100.00 0.00 0.00 Ltd 42 Yes Bank Ltd 0.53 0.31 58.49 0.18 33.96 Pvt. Banks Sub-total 44.16 32.96 74.64 30.97 70.13 43 NJGB 20.30 15.62 76.95 9.66 47.59 44 CMPGB 22.18 18.05 81.38 11.69 52.71 45 MGB 21.93 13.47 61.42 0.00 0.00 RRBs Sub-total 64.41 47.14 73.19 21.35 33.15 588.55 463.27 78.71 273.97 46.55

. As of 18.08.2017 Aadhaar authentication percent on CASA accounts were only 17.9%, now it is 46.55%. . Now the deadline to link Aadhaar with bank accounts has been expended to March 31, 2018.

Aadhaar seeding process to be followed for obtaining consent from the customer

One of the important aspect of Aadhaar Seeding is obtaining explicit consent from the customer for receiving subsidy and other credits as per mapper data. Currently, consent is obtained from the customers in two ways. a) Paper based consent & b) Electronic form

NPCI vide circular number NPCI/2017-18/NACH/Circular No.251 dated 26.10.2017 informed that as per the mapper design, if more than one bank uploads the Aadhaar number in NPCI mapper, the mapper will hold the last record updated. NPCI has advised that Aadhaar seeding is carried out only after obtaining the declaration from the customers as specified in the circular referred above.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 36

All Banks are requested to comply with the above instructions of NPCI.

OPENING OF AADHAAR ENROLLMENT CENTRES IN M.P.-STATUS AS ON 30.11.2017

No of Centres Sr. Banks Opened Remaining Present status to be opened 1 Allahabad Bank 21 0 21 Verifier cum supervisor training is completed. 2 Axis Bank 13 13 0 All are opened. 3 Bank of Baroda 44 0 44 Verifier cum supervisor training is completed. 4 Bank of India 43 11 32 Verifier cum supervisor training is completed. 5 Bank of Maharashtra 18 0 18 Training of Master Trainers is yet to complete 6 Canara Bank 22 0 22 Verifier cum supervisor training is completed. 7 Central Bank of India 47 0 47 Verifier cum supervisor training is completed. 8 CMPGB 46 0 46 Verifier cum supervisor training is completed. 9 Corporation Bank 6 0 6 Verifier cum supervisor training is completed. 10 Dena Bank 9 9 0 All are opened. 11 HDFC 13 0 13 * 12 ICICI 24 5 19 5 13 IDBI Bank 9 0 9 * 14 Indian Bank 3 0 3 * Narmada Jhabua Gramin Verifier cum supervisor training is completed. The bank 15 41 0 41 Bank has applied for enrollment agency ID to UIDAI. 16 Oriental Bank of Commerce 6 0 6 Will complete in 15 Days 17 Punjab & Sindh Bank 4 0 4 Yet to provide training to staff 18 Punjab National Bank 30 0 30 * 19 Ratnakar Bank Ltd 2 0 2 * Verifier cum supervisor training is completed. 20 State Bank of India 114 0 114 Engagement of outside agency is in process. 21 Syndicate Bank 11 0 11 * 22 UCO Bank 50 0 50 * 23 Union Bank of India 28 0 28 * 24 Vijaya Bank 7 0 7 Verifier cum supervisor training is completed. 25 Yes Bank 3 0 3 * Grand Total 614 38 576 *Bank to respond. The matter is put up for discussion.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 37

PERFORMANCE OF RURAL SELF EMPLOYMENT TRANING INSTITUTES (RSETIs)

. The 50 Rural Self Employment Training Institutes (RSETIs) and 1 RUDSETI in the State, an initiative of Ministry of Rural Development (MoRD), are imparting training and skill up-gradation to rural youth encourage towards entrepreneurship development. Recently, the scheme has been aligned with the common norms for Skill Development schemes notified by Ministry of Skill Development and Entrepreneurship, GoI. . In the state of Madhya Pradesh minimum settlement rate is 64.76%, which needs to be achieved minimum 70% for trained candidates within one year of training. ‘Settlement’ in RSETI means either self-employment or wage employment in the ratio of 90:10 respectively. . Some of the ways suggested by the Joint Secretary (Skills), Ministry of Rural Development, GOI vide letter addressed to the Additional Chief Secretary, Panchayat & Rural Development, GoMP are as given below:

a) Sensitizing RSETIs in the state on the need to organize demand driven training courses with high prospects of settlement through regular interaction with the industry/businesses. b) Monitoring of bank linkage of trained candidates and evaluation with RSETI Directors with Banks and specially in SLBCs. c) Direct involvement of local state officials in mobilization of candidates to ensure right and deserving candidates are given training. d) Regular tackling of the candidates for one year after completion of training with focused hand holding support to facilitate credit linkages/placements.

Performance highlights of RSETIs in the State as on 30.11.2017 FY 2017-18

. There was a target of 1231 number of programmes for financial year 2017-18, out of which 670 training programs were conducted till 30th November 2017. . Out of the target of total 35570 trainees for FY 2017-18, 17528 candidates were trained up to 30.11.2017. . Out of total trained candidates, 2044 were from SC/ST category, 2176 from OBC, 213 from minority and 9611 were from other categories. . Since inception, 6247 programmes have been conducted wherein, 172371 candidates were trained.

Opening of RSETI is Agar Malwa District It has been brought to the notice that no full-fledged RSETI is functioning in Agar Malwa district, which is the lead district of Bank of India. The Lead Bank of this district is supposed to establish a RSETI for imparting training and skill up-gradation to rural youth. The matter is placed for discussion.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 38

STATUS OF PENDING CLAIMS WITH DRDA/NRLM FOR SETTLEMENT

As many as, claims of Rs. 3.42 crores are pending for reimbursement of training expenses of BPL candidates incurred by RSETIs with SRLM of the State for settlement. Even some of the claims for settlement are pending since last 7 years. Details are as under: Amount in Rs. lakh 17-18. UP Sl. Name of the 10-11 11-12 12-13 13-14 14-15 15-16 16-17 No. RSETI TO Total 30.11.2017 1 AshokNagar 2.75 1.74 0.00 11.74 9.57 1.21 2.38 29.39 2 Nowgaon 0 0.00 0.00 0.00 1.14 11.67 7.44 20.25 3 Damoh 0 17.93 6.99 15.19 1.10 10.96 9.85 62.02 4 Guna 0 0.00 0.00 4.49 4.30 9.99 2.52 21.30 5 Harda 0 0.00 0.00 0.00 0.00 4.90 3.94 8.84 6 Katni 0 0.00 0.00 0.00 0.00 15.57 10.06 25.63 7 Neemuch 0 0.00 0.00 0.00 0.00 8.63 4.95 13.58 8 Panna 0 0.00 0.00 3.05 10.91 13.52 4.84 32.32 9 Sheopur 0 0.00 0.00 0.00 0.00 2.26 9.28 11.54 10 Shivpuri 0 0.00 0.00 0.00 0.00 6.02 3.10 9.12 11 Tikamgarh 0 0.00 0.00 0.00 0.00 20.63 13.62 34.25 12 Umaria 0 0.00 0.00 0.00 5.28 12.37 8.06 25.71 13 Vidisha 0.51 5.47 6.74 6.06 5.15 1.60 15.58 6.72 47.83 Sub Total 0.51 8.22 26.41 13.05 39.62 33.9 133.306 86.764 341.78

The State government is requested to settle the claim at the earliest.

This agenda is placed for discussion.

SOCIAL SECURITY SCHEMES-STATUS (Numbers in actuals) as on 30.11.2017 Bank Type PMJJBY PMSBY 30.06.17 30.11.17 Variation 30.06.17 30.11.17 Variation PSBs 1210868 1263168 52300 4935225 5107202 171977 Private Banks 47695 49235 1540 166332 194081 27749 RRBs 183337 175185 -8152 1182971 1180712 -2259 Co-operative 101164 101172 8 590329 590331 2 Total 1543064 1588760 45696 6874857 7072326 197469

Bank wise data is given in Table No. 26 & 27

Atal Pension Yojana (APY)-Status Numbers in actuals Banks 2015-16 2016-17 31.10.2017 30.11.2017 Public Sector Banks 81537 82353 99484 114682 Pvt. Sector Banks 5029 8266 7354 8590 Regional Rural Banks 47050 24482 15322 16050 Cooperative Banks 2096 492 16 2556 Dept. of Post 177 468 146 167 Grand Total 135889 116061 122322 142045

Bank wise data is given in Table No. 26 & 27

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 39

AGENDA NO-12

NON-PERFORMING ASSETS (NPA)

Stressed assets have been consistently rising for the past few years. Here’s a look at the non-performing asset (NPA) in the chart.

Chart showing NPA amount & NPA % to total advances Amount in crore 25000 9.00% 7.72% 8.00% 20000 7.00% 6.22% 6.00% 15000 3.82% 5.00% NPA 4.00% 10000 19894 NPA% to Total Advances 3.00% 5000 11606 2.00% 7462 1.00% 0 0.00% .Sep 2015 .Sep 2016 .Sep-2017

SECTOR WISE NPA (Amount in crores) % NPA Total % of the Y-o-Y Variation exposure Y-o-Y variation portfolio Sector 16-Sep 17-Mar 17-Sep variation over O/s as variation over as on % Mar-17 on Mar-17 30th 30.09.17 Sep-17 Agriculture 6480 7398 8769 2289 35.32 1371 18.53 88963 9.86% MSME 2807 3220 3678 871 31.04 458 14.24 40898 8.99% Education 121 110 118 -2 -2.02 8 7.41 1939 6.09% Housing 532 539 802 270 50.75 263 49.43 20677 3.88% Others 666 575 575 -91 -13.66 0 0.00 6469 8.89% Priority 10606 11842 13943 3337 31.46 2101 17.74 158947 8.77% Sector Non-Priority 3075 4601 5951 2876 93.54 1350 29.35 98797 6.02% Total NPA 13681 16443 19894 6213 45.41 3451 20.99 19894 Total 220042 240064 257744 37702 17.13 17680 7.36 257744 Advances NPA % 6.22 6.85 7.72 1.50 1.50 0.87 0.87 7.72

*Others include-Social infrastructure, Renewable energy, loans to SHGs/JLGs, Loans to distressed persons other than farmers etc.

The issue is put up for discussion

OVBSERVATIONS

. Gross NPA to Gross Advances in banks grew from 3.82% in FY15 to 7.72% in FY17. Y-o-Y increase in NPA was Rs. 8288 crores as of 30th September 2017. . Private sector banks maintained lowest gross non-performing assets to gross advances at 3.09 % in Sep-17 as against 7.51% for Public sector banks.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 40

. Agriculture sector at 9.86% NPA of the portfolio was top amongst other sectors, followed by MSME at 8.99% during September-17 quarter.

TOP 20 BANKS IN M.P. AS ON 30.09.2017 IN TERMS OF NPA% TO TOTAL ADVANCES

Indian Overseas Bank 28.92 MGB 26.04 IDBI Bank 24.30 United Bank of India 24.05 Bank of Maharashtra 22.86 Dena Bank 18.42 Oriental Bank of Comm. 18.39 Bank of Baroda 16.52 Syndicate Bank 16.02 CMPGB 15.19 UCO Bank 14.90 NPA % Allahabad Bank 13.93 DCCB 13.29 Jammu and Kashmir Bank 12.17 Central Bank of India 11.54 Indian Bank 11.01 Punjab National Bank 8.64 Punjab and Sindh Bank 6.93 Union Bank of India 6.79 Canara Bank 6.46 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00

Bank wise position is shown in table no. 13

NON-PERFORMING ASSETS UNDER GOVERNMENT SPONSORED SCHEMES

TRENDS (NPA Accounts in numbers) 18830 85346 17850 13866 15586 57819 12667

25933 0

CMRHM MMYUY/MMSY SHGs

.Sep-15 .Sep-16 .Sep-17 .Sep-15 .Sep-16 .Sep-17 .Sep-15 .Sep-152 .Sep-17

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 41

STATUS (as on 30.09.2017) Amount in crores Outstanding NPA NPA% Name of the scheme No. Amt. No. Amt. No. Amt. MMYUY/MMSY 113334 2909.00 18830 201.79 16.61 6.94 PMEGP 26686 826.44 4136 100.15 15.50 12.12 CMRHM 598365 4593.02 85346 551.93 14.26 12.02 SHGs 121598 631.04 17850 69.29 14.68 10.98

OBSERVATIONS

. Increasing delinquencies in government sponsored schemes appear to be on a high side and a matter of concern for the Banks. . In terms of number of accounts, delinquency ratio is more than 10% of the portfolio, whereas overdue position is also alarming. . It is gathered that the Task Force meetings have become a routine meeting and the purpose for which they have been formed is defeated. In this regard, some suggestions are as given below.

a) The proposals received from the entrepreneurs should be screened by a committee consisting of professionals, including banker to evaluate the capability of the applicant both technical and financial. This should be an ongoing process and not an event. The report of screening committee should be placed before the task force for approval. b) To provide hand-holding support to the prospective entrepreneurs. c) Training to the entrepreneurs through Entrepreneurship Development Programmes (EDPs). The EDPs should be more objective and professional, so that required traits can be inculcated in the entrepreneurs. d) Monitoring and hand-holding support after financing needs to be in place. e) Forward and backward linkages to these entrepreneurs may be explored.

REVENUE RECOVERY CERTIFICATES

. To facilitate the banks in recovery of their dues with borrower, the state Government passed “The Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam in 1987. . Purpose was to recover the public money and reutilized for their developments. . The Collector or his subordinate officer specified on receiving the certificate shall take steps to recover the amount stated therein. . To encourage the respective officers/staff for recovery, incentive scheme BRISC (Bank Recovery Incentive Scheme) was introduced on 1st April 1995. . But it is observed that purpose of the scheme is not getting desired result, which is evident from the below mentioned table.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 42

BRISC STATUS [Period from 01.04.2010 to 10.12.2017] Amount in crores Sr. Number Particulars Amount in lac 1 Submitted by Banks 7.03 9913 2 Forwarded by Their Nodal Dist. Branch(s) 6.21 8569 3 Allotted by District Administration to Revenue Officers 5.73 7915 4 Demand Notice issued by Revenue Officers 4.32 6295 5 Recovery received against Demand Notices 0.32 293 6 Disposed of RRC(s) By District Administration 0.04 25 7 RRC(s) Pending for Disposal 4.28 6003 Source: BRISC Portal, DIF, Govt. of M.P.

The following districts did not dispose off even a single RRC during the period from 01.04.2010 to 10.12.2017 Numbers in actuals & Amount in crores Demand Notice Disposed Off RRC(s) Pending for Sr. District Name issued by Revenue RRC(s) By District Disposal Officers Administration No. Amount No. Amount No. Amount 1 Anuppur 1097 11.41 0 0 1097 11.41 2 Ashoknagar 11906 178.06 0 0 11906 178.06 3 Bhind 9015 151.84 0 0 9015 151.84 4 Datia 4423 53.43 0 0 4423 53.43 5 Dindori 3410 679.95 0 0 3410 679.95 6 Jabalpur 8540 102.61 0 0 8540 102.61 7 Jhabua 6657 46.41 0 0 6657 46.41 8 Khandwa 7446 75.65 0 0 7446 75.65 9 Mandla 2855 20.79 0 0 2855 20.79 10 Sheopur 2822 35.69 0 0 2822 35.69 11 Sidhi 1006 18.87 0 0 1006 18.87 12 Singrauli 722 11.19 0 0 722 11.19 13 Umaria 1310 8.73 0 0 1310 8.73 Source: BRISC Portal, DIF, Govt. of M.P.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 43

PENDING APPLICATIONS WITH DISTRICT ADMINISTRATION FOR TAKING PHYSICAL POSSESSION OF THE PROPERTIES UNDER SEC-14 OF THE SARFAESI ACT AS ON 30.11.2017

Total no. of Total no. of pending Sr. District pending Sr. District cases cases 1 Anuppur 14 19 Khargone 2 2 Barwani 1 20 Mandsaur 4 3 Balaghat 5 21 Morena 1 4 Betul 2 22 Narsinghpur 1 5 Bhind 8 23 Neemuch 1 6 Bhopal 52 24 Raisen 6 7 Chhindwara 7 25 Ratlam 1 8 Datia 5 26 Rewa 7 9 Dewas 4 27 Sagar 5 10 Dhar 2 28 Satna 2 11 Dindori 8 29 Sehore 5 12 Guna 1 30 Seoni 4 13 Gwalior 3 31 Sidhi 1 14 Hoshangabad 13 32 Shahdol 21 15 Indore 71 33 Shajapur 5 16 Jabalpur 29 34 Ujjain 4 17 Katni 9 35 Umaria 4 18 Khandwa 4 36 Vidisha 12 TOTAL 324

. Despite raising the issue of pending applications with district administration for taking physical possession of the properties under Section 14 of SARFAESI Act on several platforms, things are not moving satisfactorily. . Cases are not being disposed off within stipulated timeline. . Some District Magistrate (DM), while acting upon the application moved by banks, are still taking a long time in handing over possession of the secured assets. . It has been reported by the field functionaries that even the orders passed by District Magistrates for handing over physical possession of the secured assets are not being executed by the Tehsildars. They start hearing afresh, which inordinately delay the process and is against the provision of SARFAESI Act; beyond their jurisdiction. . In case of any discrepancies, cases either should be rejected or appropriate order need to be passed. . We request the state government to issue a suitable instruction to district administration to comply with the amended provision of Section 14 of SARFAESI Act 2016, which stipulates that DM will have to pass suitable orders for the purpose of taking possession of the secured asset within a period of Thirty Days from the date of application. If no order is passed within said period for reasons beyond the control of DM, he may after recording reasons, pass orders within such further period but not exceeding in aggregate sixty days.

This issue is put up for discussion.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 44

AGENDA NO-13

MICRO, SMALL & MEDIUM ENTERPRISES (MSMEs)

 MSME is the largest employment creator after primary sector. There are around 3 lakh registered units of MSMEs in Madhya Pradesh. In the state, 30% of population is in the age group of 15-30 years; indicates huge potentiality for employment growth. Madhya Pradesh Government has been supporting entrepreneurs/ Self-Employment by providing an enabling environment for job creation and entrepreneurship.  Monitory Policy of RBI has channelized the flow of credit. Accordingly, all banks operating in India have to necessarily lend 40% of their total loans to priority sectors. Out of this, 7.5 percent of ANBC should go to micro enterprises. Outstanding amount in crores Chart showing growth in MSME financing by Banks of last 6 years 45000 40887 40898 40000 35000 30082 30000 26509 25000 22349 20000 17227 Bank's Credit to MSMEs 15000 Linear (Bank's Credit to MSMEs) 10000 5000 0 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 upto Sep- 17 STATUS MSME (PRIORITY SECTOR) AS ON 30.09.2017 Amt. in crores 30.09.2016 31.03.2017 30.09.2017 % % Y-o-Y variation Sr. Particulars variation over No. Amt. No. Amt. No. Amt. (Amt.) Mar-17 (Amt.) Total of MSE Advances (Micro & Small A 863151 31843 954142 35561 1120842 36296 13.98 2.07 Enterprises) % age of lending to Micro B 89.71 48.96 89.83 49.34 90.56 49.71 0.74 0.37 enterprises to MSE C Total advances to Micro Enterprises 774329 15591 857096 17546 1015038 18042 15.72 2.83 % of advances to Micro Enterprises D 6.67 7.09 6.36 7. 31 8.97 7.00 -0.09 -0.31 to total advances E Total advances to Small Enterprises 88822 16252 97046 18015 105804 18254 12.32 1.33 F Total advances to Medium Enterprises 4568 3734 5213 4098 5111 3989 6.84 -2.66 G Khadi & Village Industries 5660 177 5977 149 5076 121 -31.72 -19.04 H Others under MSMEs 10337 1994 15231 1076 16418 492 -75.31 -54.24 Total advances to MSME I 883716 37747 980563 40884 1147447 40898 8.35 0.03 Enterprises (Total of A,F,G &H) J Total Advances 11600603 220042 13474467 240063 11316770 257744 17.13 7.37 K NPA under MSMEs 180317 2807 197980 3220 223059 3678 31.04 14.24 L % NPA of the portfolio 20.40 7.44 20.19 7.88 19.44 8.99 1.56 1.12 Bank wise outstanding advances to MSME under Priority Sector is shown in Table no. 5

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 45

OBERVATIONS:

. The advances to MSME sectors under priority sector constitutes 25.73% of advances to priority sector and 15.87% of the total credit of the banks. . Year on year, growth rate of MSME advances was registered 8.35% as of Sep-17. . Out of total MSME advances of Rs. 40898 crores as on 30th September 2017, advances to Micro Enterprises was Rs. 18042 crores which is 7.00% of total credit, which is below the prescribed Norm of 7.5%. . Lending to micro enterprises is 49.71% of total MSE advances, which is less than regulatory prescription of 60% as on September 30, 2017. . However, number of micro enterprise accounts is showing 31% annual growth during 30th September2017, which is above the regulatory Norm i.e. 10%. . Year-on-year growth in credit to micro and small enterprises was 13.98% during September 30, 2017, which is less than the prescribed Norm of RBI i.e. 20%.

BANK’S ROLE IN EMPLOYMENT GENERATION THROUGH 3 FLAGSHIP SCHEMES OF THE STATE GOVERNMENT. Year wise number of employment generation through bank finance 120000 101495 100000 73676 80000 51559 60000 42814 3 Mukhyamantri Employment 40000 Generation Schemes 20000 0 2014-15 2015-16 2016-17 2017-18 upto Sep-17

Apart from above, banks are playing an important role in employment generation in the state though financing under PMEGP, NRLM, NULM, Mudra, Stand-up India schemes etc.

PERFORMANCE UNDER ANNUAL CREDIT PLAN FY 2017-18 UNDER MSMEs Amount in crores Achievement during Target for the FY Q-2 of FY Financial Year 2016-17 2017-18 2017-18 Achievement Sr. Sub Sector Achieveme % (Amt.) Achiev Target nt during No. Amt. No. Amt. ement (Amt.) Q-2 of % FY16-17 1 Micro Enterprises 315927 11493 224149 5297 46.09 * * 2 Small Enterprises 21729 2865 17466 3707 129.38 * * 3 Medium Enterprises 11803 1101 1805 1446 131.36 * * 4 KVIC 11183 910 585 27 2.92 * * 5 Other under MSME 83667 2072 5775 333 16.05 * * 6 Total MSME 444309 18441 249780 10809 58.61 16123 10408 64.55 *There were no specific target

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 46

FRAMEWORK FOR REVIVAL AND REHABILITATION OF MICRO, SMALL AND MEDIUM ENTERPRIESES

The Ministry of Micro, Small and Medium Enterprises, Government of India vide their Gazette Notification fated may 29, 2015 has notified a “Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises”. The objective was to create a simpler and faster mechanism to address the stress in the accounts of MSMEs and to facilitate the promotion and development of MSMEs.

The revised framework on rehabilitation of sick micro and small enterprises, is applicable to MSMEs having loan limits up to Rs. 25 crore, including accounts under consortium or multiple banking arrangement. Corrective action plan (CAP) may include rectification or restructuring or restructuring.

RBI has also advised all Scheduled Commercial Banks (excluding RRBs) to put in place a board to address the stress in the accounts of MSMEs.

The following action points are required from the Banks

. Confirmation of formation of a committee for this purpose and holding meeting on regular basis. . Number of cases resolved under the framework. Also out of these, number of case recommended for rectification, restructuring and recovery. . Details of other options explored by Banks to resolve the stress in the accounts.

All Banks are requested to provide above information on quarterly basis along with the data of SLBC.

The matter is placed for discussion.

SUGGESTIONS FOR INCREASING MSME FINANCING AND RESOLVING BOTTLENECK FACED BY MSMEs

a) Standard templates for assessment of SME Credit needs b) Extensive use of Udyami Mitra Portal of SIDBI to fetch loan applications c) Incentive scheme for Industry and banks to promote TReDS platform for discounting of trade receivables d) Cluster based lending approach to well-defined and recognized sectors e) Devise suitable schemes/ products as per the requirement of the clusters f) Leveraging multiple data sources to build sophisticated/ analytics driven credit models to move to “real” cash flows based lending g) Gearing up IT systems to capture and utilize data from GST and UID infrastructure h) Creation of a market place for procurement of Goods & Services, like GeM i) Partial Collateral be permitted in loans guaranteed by CGTMSE j) Capacity building of entrepreneurs- activating EDIs and establishing more EDIs for skilling, mentoring, developing and upgrading the entrepreneurial skills k) Inclusion of Retail Trade under Credit Guarantee Schemes l) MSME definition to be re-visited (turnover of the units may be considered) m) Government Departments may also onboard on TReDS platform

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 47

AGENDA NO-14

OTHER AGENDA

ENAGAGEMENT OF LEAD DISTRICT MANAGERS (LDMs) IN ACTIVITIES OTHER THAN PRESCRIBED BY RBI

In order to implement government sponsored schemes and to have better coordination between the government and the banking fraternity, the “Lead Bank Scheme” was introduced by the RBI under which the Banks are supposed to appoint Lead District Manager in each district. The scheme is working successfully across the country.

The effectiveness of Lead Bank Scheme generally depends upon the dynamism of District Collector and Lead District Manager. RBI in their master circular has clearly defined the role of LDMs, which has been enclosed hereto. As per the scheme, the LDM is expected to undertake leadership for coordinating the efforts of credit institutions and government agencies.

Of late, it has been observed that along with the coordination job, LDMs are also made to work for complaint redressal. The State Government has brought in a very comprehensive grievance redressal mechanism through Chief Minister's help line wherein the different levels of redressal of complaints have been defined by the government. The first level of redressal is L-1 and for all complaints related to activities, the LDM is made grievance redressal officer at Level-1.

Due to vast network of bank branches and large number of schemes under implementation, the volume of complaints received is huge and the time period allotted to the L-1 officer for redressal is 7 days. As such, major chunk of the LDM’s time is being consumed in grievance redressal and in the process, the main focus on coordination and developmental activities in the district gets impaired.

Time and again, this issue has been taken up with Directorate of Institutional Finance of the state government and other appropriate forum. But, it is yet to be resolved.

We suggest that under the grievance redressal mechanism (CM Help Line), the government may assign the role of L-1 officer to an officer of the concerned department of the government whose schemes are being financed by the Banks. This will not only help quick disposal but will also enable the LDMs to concentrate on their primary role of coordination between different stake holders for successful implementation of various schemes. However, the LDM will continue to provide grievance redressal to the extent possible at DLCC meetings.

In the recently held workshop of LDMs organized by RBI on 6th & 7th December 2017, 48 out of 51 LDMs of the State had attended the same. All raised their serious concern about this arrangement as a hindrance to their job role as defined in the LBS scheme.

The matter is placed for discussion.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 48

ON-LINE WEB PORTAL FOR DATA COLLECTION FOR DCC/DLRC MEETINGS

DCC (District Consultative Committee) is an important forum at district level for bankers as well as Government agencies/departments to facilitate coordination in implementing various developmental activities under the Lead Bank Scheme. District Collector is chairman of this committee and its meeting is convened by LDMs at quarter intervals.

It has been observed that collecting data from various banks for preparing the agenda of DCC/DLRC meetings is a difficult task for the LDMs. To facilitate the LDMs in this score, an on-line functionality has been created by SLBC, wherein, all the banks are supposed to upload branch wise/district wise data into the existing portal of SLBC. It will also help the LDMs to get data for the meetings of Block Level Banker’s Committee. This functionality has been created in such a way that Gram Panchayat wise and Block wise data also can be generated.

Since, the above functionality will be operational from December-2017 quarter, the house is requested to adopt this functionality.

The matter is put up for discussion.

AUTOMATIC SMS ALERT FACILITY IN SAMAST PORTAL

Directorate of Institutional Finance, Govt. of M.P. has developed a software portal “SAMAST” (Software Application for Monitoring Achievement of Scheme Target) to monitor the progress under Government sponsored schemes. Banks and other respective departments have been shared login ID and password to access the portal. In order to ease the beneficiaries from visiting the bank branch to know the status of their submitted application, an “automated sms alert facility” has been introduced from 27.11.2017. The beneficiary will receive a sms at 6 various stages completed by the banks/departments on the portal.

This issue is placed for information.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 49

AGENDA NO-15

SELF HELP GROUPS BANK LINKAGES

In the state of Madhya Pradesh, there are around 3 lakh Self Help Groups. Out of this, 2.31 lakh SHGs have been savings linked and 1.22 lakh SHGs have been credit linked cumulatively up to 30th September 2017. During Q-2 of FY 2017-18, 7010 SHG accounts were opened in the Banks. During current fiscal, 7287 SHGs were credit linked.

Sr. Particulars No. 1 No. of Rural Household in the State 11288946 2 Potential to form SHGs@13 members per SHG 868380 3 No. of SHGs cumulatively savings linked up to 30 Sep 2017 231316 4 No. of SHGs that can be formed and savings linked (2-3) 637064 5 No. of SHGs cumulatively credit linked up to 30 Sep 2017 121598 6 No. of SHGs to be credit linked (2-5) 746782 Bank wise data is shown in the table no. 19

Start-up Village Entrepreneurship Development Programme (SVEP)

 The Finance Minister in the budget speech of 2014-15 propose to set up a “Start-up village Entrepreneurship Programme” for encouraging rural youth to take up local entrepreneurship programs.  SVEP is being implemented in MPSRLM in 3 districts (Barwani, Sheopur & Dindori) of Madhya Pradesh.  The objective of SVEP is to provide self-employment to the rural underprivileged group through community managed and structured approach. NPA in SHGs in Madhya Pradesh-Study Findings by NABARD SHG Bank Linkage Programme is one of the leading poverty alleviation programme in India. In the past few years, one issue is being repeatedly raised by the Stake holders that NPAs in SHGs are increasing and there is need for coordinated efforts by all the stake holders to overcome the issue. In this background, NABARD conducted study in 11 districts of Madhya Pradesh covering 18 branches of commercial banks and RRBs. The study was conducted in those branches which were reported as high NPA branches by banks. Major findings of the study are as given below: 1. 83% of the SHG accounts under old SGSY (Swarnjayanti Gram Swarojgar Yojana) were NPAs, but the NPAs in SRLM (State Rural Livelihood Mission) and NABARD supported SHPIs (Self Help Promoting Institutes) are negligible. 2. All NPA accounts covered under the study were financed in the year 2005-2006. 3. The SGSY accounts turned NPAs because the SHGs were not formed as per the basic principles of SHGs viz. homogeneity, proximity, regularity in savings and meetings etc. 4. The activities identified for financing under SGSY was decided at the behest of the promoting institutions/Govt. departments to meet the targets. 5. There was scanty arrangements for capacity and skill building of the members before taking up the project. 6. Branch managers did not interact with group members before sanction of loan though formally groups were graded by the grading team. 7. Branch Manager did not visit to the projects till it turned NPAs.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 50

8. Out of 1184 SHGs under SRLM linked to the branches studied, 32 SHGs were NPAs which account for 3% of the sample. 9. SRLMs NPAs were observed in old SRLM districts viz. Rewa, Shivpuri and Rajgarh. The reasons observed are target approach for higher financing in first dose. 10. Branch Managers do not have time to follow the SHG accounts for regular repayment. They are totally dependent on promoting institutions for follow up. 11. Hand holding support is not provided to SHGs. Etc. Suggestions

. Banks may adopt recovery methods like one time settlement schemes, Lok Adalat and seek support from District Administration for recovery of old loans. . Banks may come out with recovery incentive schemes for SHPIs, BCs/BFs for recovery of loans. . Banks may identify branch wise NPAs and take up the matter with SRLM at State level for recovery of SGSY and SRLM loans. SRLM may involve their community based recovery mechanism for recovery of such loans. . Banks may take help of NABARD SHPIs in recovery of NPAs in their area and give them some recovery incentives. . PSBs may consider having dedicated vertical for financing under SHGs for regular follow-up with SHPI and SHGs also. . Digitization of SHGs can be an effective tool for monitoring the health of SHGs. . The “Going Digital: programme may be used for spreading awareness about SHGs. Etc. This issue is presented for information/discussion.

CREDIT FACILITY TO MINORITY COMMUNITIES, SC/ST & WOMEN

In terms of Reserve Bank's extant guidelines on lending to priority sector, a target of 40 per cent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposures (OBE), whichever is higher, as on March 31 of the previous year, has been mandated for lending to the priority sector by domestic scheduled commercial banks Within this, a sub-target of 10 per cent of ANBC or Credit Equivalent amount of OBE, whichever is higher, as on March 31 of the previous year, has been mandated for lending to weaker sections. The Government of India has indicated that care should be taken to see that minority communities secure, in a fair and adequate measure the benefits flowing from various Government sponsored schemes. All commercial banks have been advised to ensure smooth flow of bank credit to minority communities. The following communities have been notified as minority communities by the Government of India, Ministry of Welfare:

 Sikhs  Muslims  Christians  Zoroastrians  Buddhists  Jains

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 51

Outstanding & Disbursement to Minority Community

Total outstanding loans to minority community were Rs. 9132 crores as of 30th September 2017 and 541258 minority communities have been given loans till date. Banks have disbursed an amount of Rs.1041 Crores covering 40891 beneficiaries of Minority Communities during half year of FY 2017-18.

Bank wise status is shown in Table no. 20 & 21

This issue is presented for information.

Outstanding & Disbursement to Scheduled Castes (SC) & Scheduled Tribes (ST)

As of 30th September 2017, total outstanding loans to scheduled caste & scheduled tribe community were Rs. 13404 crores of 1426630 SC/ST beneficiaries have been given loans till date. With regard to disbursement to SC/ST communities, banks disbursed an amount of Rs.1090 Crores during half year of FY 2017-18.

Bank wise status is shown in Table no. 22 & 23

This issue is presented for information.

Outstanding & Disbursement to Women beneficiaries

As of 30th September 2017, total outstanding loans to women were Rs.22024 crores to 1554233 beneficiaries. Banks disbursed an amount of Rs.3932 crores to 292045 women beneficiaries during half year of FY 2017-18.

Bank wise status is shown in Table no. 24

This issue is presented for information.

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 52

AGENDA NO-16

EDUCATION LOANS

STATUS IN MADHYA PRADESH

As on September 30, 2017, the total exposure of all banks in Madhya Pradesh to education loans was Rs 2363 crore, which is marginally lower than the exposure of previous financial year i.e. 2384 crore. Banks face a 7.49% default on this portfolio – that is Rs. 177 crore.

Out of total exposure of all the banks to education loans, contribution of Private sector banks is negligible and held the share of only 2.93%. Public Sector Banks have a share of 93.22%.

Repayment is better in cases of loans above Rs. 10 lakh. Generally, the borrowers of these loans are settled abroad after study, and they get good employment and are able to repay their dues. Also, such loans are backed by collateral security. Students are very mobile. They move away from their place of study and it becomes very difficult to trace them. Looking to these difficulties, IBA has advised to obtain PAN/ Aadhaar details of the borrower/ co-borrower, however, it is not mandatory. Delinquency is highest in the bracket up to Rs 4.5 lakh

Loans to individuals for educational purposes including vocational courses up to Rs.10 lakh irrespective of the sanctioned amount are classified under priority sector.

Central Scheme to provide Interest Subsidy (CSIS) on education loans

Under this Scheme, Interest Subsidy is given during the moratorium period i.e., Course period plus one year on Education Loan taken from the Scheduled Banks under the Model Education Loan Scheme of Indian Banks Association to students belonging to economically weaker sections whose annual parental income is up to Rs. 4.5 Lakh from all sources. The subsidy is allowed for undergoing recognized Professional/ Technical courses in recognized Institutions in India. This subsidy is allowed only once.

Higher Education Loan Guarantee Scheme & Higher Education Loan Settlement Scheme

The Government of Madhya Pradesh operates a “Higher Education Loan Guarantee Scheme” to provide guarantee to meritorious students, who are unable to provide collateral, in case of loans above Rs. 7.5 lakh. The state government has given guarantee to 92 students of Rs. 12.75 crore till September 30, 2017.

In addition to above, in case of demise/permanent disability of the students, who had taken the education loans and their family is unable to repay the loan, “Higher Education Loan Settlement Scheme” is operational to provide reliefs to the family of the student. As on September 30, 2017, 6 cases has been settled of Rs. 15.46 lakh.

FY 2017-18 TARGET VIS-À-VIS ACHIEVEMENT UP TO SEPTEMBER 2017

Directorate of Institutional Finance, Govt. of Madhya Pradesh allocated a target of 15000 cases of Rs. 300 crore for providing higher education loans by bank during current fiscal. As on September 30, 2017, banks sanctioned 11896 number of cases of Rs. 397 crore. Out of which, Rs. 263 crore was disbursed in 11504 accounts and achievement was 76.69%.

Bank wise achievement was given in Table no. 18

This agenda is put up for information/discussion

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 53

AGENDA NO-17

National Scheduled Castes Finance & Development Corporation (NSFDC)

BACKGROUND

National Scheduled Castes Finance & Development Corporation (NSFDC), a Government of India Undertaking, is providing refinance to Banks for the regular paying accounts of eligible SC borrowers covered by Banks under their self-employment loans. As on date, 8 Public Sector Banks and 37 Regional Rural Banks have signed Memorandum of Agreements (MoAs) with NSFDC to channelize funds under NSFDC schemes to provide low interest benefit to the regular accounts.

The State Governments operate their own schemes providing capital and interest subsidy to the Scheduled Caste entrepreneurs in their States. These subsidies are combined with the Bank loans for self-employment oriented income generating activities intended to reduce the loan burden on the SC borrowers and assist them in economic upliftment. Madhya Pradesh is one such State which implements subsidy schemes through the Banking channel.

NSFDC would be interested in tie up with Banks to provide lower interest for loans to eligible SC borrowers under all the three flagship schemes of the state government i.e. Mukhya Mantri Yuva Udyami Yojana, Mukhya Mantri Swarojgar Yojana & Mukhya Mantri arthik Klayan Yojana.

This agenda is put up for discussion.

Any other issue with permission of the Chair…….

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 54