STATE LEVEL BANKERS’S COMMITTEE,

Action Points of 134th Meeting of SLBC held on 18.06.2013

S.No Action Point Action Taken 1 Financial Literacy camps by SLBC had advised all member to rural branches: As per the conduct Financial Literacy camps in guidelines of Reserve of the villages serviced by their Rural India all the rural branches Branches. IOB, , SBI and should conduct Financial have reported that the Literacy camps. The member camps are conducted by the rural banks are requested to instruct branches by utilising the services of all their rural branches to the FLCCC counsellors. Pandyan Grama conduct Financial Literacy Bank has conducted camps in 83 camps in their command area villages. has conducted in for the benefit of the general 2 villages. has public. conducted 20 literacy camps. reported that their BCs and the Officers visiting USBs every week are providing financial guidance to the villages regularly. 2 Ultra Small Branches: Ultra SLBC advised all the member banks to Small Branches have been complete establishment of Ultra Small established by banks only in Branches in all their FI villages 3367 villages out of 4287 (population above 2000) where they villages where banks have have engaged the services of Business engaged Business Correspondents. The present level as Correspondents. The member on 31.07.2013 is 3509 USBs. banks are advised to ensure 100% establishment of USBs in all their FI villages covered through Business Correspondents.

1

3 Revival of the stalled SLBC advised the member banks to residential projects: National submit the data directly to NHB with Housing Bank requires the a copy to SLBC. So far only 14 banks details of stalled residential have sent their reply(Indian Bank, projects if any, stalled for IOB, SBI, , UCO various reasons including for Bank, , , Dena want of further lending Bank, Andhra Bank, , support. The member banks are South Indian Bank, , Bank requested to advise the details of Baroda, Pandyan Grama Bank) of stalled projects with their Except Bank of India all other banks banks if any immediately to have reported NIL statement. SLBC. NIL report also should be sent.

4 TNSRLM–Common reporting So far 8 banks (IOB, Indian Bank, format for SHG Bank linkage: , Andhra Bank, Ministry of Rural Development, Pandyan Grama Bank, , Government of India designed a , ) have MIS format for reporting of provided the list to SLBC. data periodically on SHG bank linkage. TNCDW requested the banks to provide a list of 5 of their select branches to test the reporting format on a pilot basis. SLBC requested all the banks to provide a list of 5 branches. The list is yet to be submitted by many banks. The member banks are advised to send the list to SLBC immediately.

2

5 Coverage of all the crop loans SLBC advised member banks to ensure sanctioned to notified crops in 100% coverage of crop loans under notified area under Crop crop insurance for the notified crops Insurance: The member banks in the notified areas. Member banks are advised to instruct all their have informed that they have issued branches to cover 100% crop necessary instructions to all their loans sanctioned to notified branches. crops in notified areas under crop insurance.

6 Schemes implemented by SLBC received information from 11 TAHDCO: TAHDCO advised banks that they have instructed their that banks are yet to disburse branches to clear all the pending loans many loans where subsidy has where subsidy has already been already been received. The received from TAHDCO. member banks are advised to instruct all their branches to disburse immediately all the pending loans where subsidy has been received from TAHDCO. 7 Swarnjayanti Gram Swarozgar NABARD provided the bank wise Yojana (SGSY): It was breakup of the reported figure of reported by TNCDW that Rs.1933 crores. SLBC circulated the during 2011-12 banks in Tamil data received from NABARD to all the Nadu have disbursed loans to member banks to enable them to SHG to the tune of Rs.4030 reconcile their figures and requested crores whereas the amount them to confirm the same to TNCDW. reported by NABARD is only Some of the banks like IOB, Pandyan Rs.1933 crores. TNCDW Grama Bank have reconciled their data requested the banks to and confirmed to TNCDW. reconcile their data. SLBC has requested NABARD and TNCDW to provide the district wise / bank wise data for comparison and reconciliation.

3

8 Regional Director, RBI advised As per the advice of Regional that whenever there is problem Director, a special SLBC meeting was with few SME units the banks held on 20.08.2013 to discuss about are hesitant to encourage that the “Development of MSE Sector in sector. To sort out this issue Tamil Nadu”. General Manager& the industry associations and convenor SLBC, DGM, RBI, banks can have a dialogue along GM(MSME), IOB, Additional Director, with the representatives of Dept. of Industries and Commerce, Government and RBI to thrash Government of Tamil Nadu, Senior out the issues. Officials from Banks, representatives of 11 industry associations participated in the meeting. The minutes of the meeting has already been circulated. 9 Chairman, SLBC advised during The data on no. of trained persons review of performance of credit linked has been collected and RSETIS that the data on the reported in the agenda on the no. Of trained persons credit performance of RSETIs for the linked by the banks should be quarter ended June,2013 collected and reported

4

AGENDA No: 1 135th SLBC

CONFIRMATION OF THE MINUTES OF THE EARLIER MEETING The minutes of the 134th meeting of State Level Bankers’ Committee Meeting convened on 18.06.2013 (circulated vide SLBC Letter dated 02.07.2013) may be confirmed.

AGENDA No: 2

New Issues 135th SLBC

1. Swarojgar Credit Card Scheme- Targets for 2013-2014:

NABARD Regional Office, Chennai has advised the bank wise target of 24500 under Swarojgar Credit Card Scheme for Tamil Nadu for the year 2013-14. The member banks are advised to fix district wise targets for their branches and to achieve the targets.

The member banks are also advised to send quarterly progress reports to NABARD in the enclosed formats before 10th of succeeding month without any delay to enable NABARD to submit report to Government of India.

The Bank wise targets and format for sending quarterly progress report are enclosed as annexure.

5

6

7

8

New Issues 135th SLBC

2. Assignment of Lead Bank responsibility in districts of Metropolitan Areas. Allotment of Chennai District to :

In terms of ’s Monetary Policy statement 2013-14 it was decided to bring all districts in metropolitan areas under the fold of Lead Bank scheme. Reserve Bank of India Mumbai vide their notification dated 11.07.2013 assigned the Lead Bank responsibility for Chennai District to Indian Overseas Bank.

The name, address and contact details of the Lead District Manager of Chennai District are given below:

Shri.Ambiti Aruna Kumar Chief Manager -LDM Indian Overseas Bank, Lead Bank Office 15 Hunters Road, Doveton, Chennai-600 112 Phone: 044-25323252(LDM) / 25323272(Off) Mobile: 94441 16801 Email: [email protected] / [email protected]

1) The member banks are requested to advise the details of the LDM to all their branches in Chennai District. 2) The member banks are advised to provide the details of all their branches, ATMs, Currency chests, clearing houses located in Chennai District immediately to the Lead District Manager in the enclosed formats, to enable him to map the branches for conducting regular meetings and also to finalise the plan for Urban Financial Inclusion.

Member banks are also advised to provide the details of their district co-ordinator in the enclosed format immediately to the Lead District Manager.

The members are requested to extend full support and co-operation to the Lead District Manager for implementation of Lead Bank Scheme in the district successfully. We enclose a copy of RBI’s communication dated 11.07.2013 for ready reference.

9

10

11

12

13

14

15

16

17

18

New Issues 135th SLBC

3. Education Loan Scheme of National Backward Classes Finance Development Corporation (NBCFDC) implemented by TABCEDCO in Tamil Nadu:

The educational loan scheme of NBCFDC is implemented in Tamil Nadu through Tamil Nadu Backward Classes Economic Development Corporation Ltd. (TABCEDCO), a State Government organization. Based on the request of TABCEDCO, the scheme was placed in 131st meeting of the SLBC held on 27.09.2012 for adoption and implementation by member banks. No bank has shown interest to sign an agreement with TABCEDCO to become sub- channelising agent to implement the scheme.

The Managing Director, TABCEDCO requested that an agenda point on the captioned scheme to be included once again in the SLBC meeting. A special meeting of the SLBC was held on 23.07.2013 and the queries raised by the member banks were sent to MD, TABCEDCO for their views / clarifications. The Managing Director, TABCEDCO has sent his views / clarifications on the queries vide his letter dated 08.08.2013.

The minutes of the special SLBC meeting held on 23.07.2013 and the reply of MD, TABCEDCO for the queries raised by bankers are enclosed as annexure.

The forum may deliberate on the issue further.

19

STATE LEVEL BANKERS’ COMMITTEE, TAMIL NADU CONVENOR: INDIAN OVERSEAS BANK

Special Meeting of the SLBC, Tamil Nadu on Educational Loan Scheme of NDCFDC Implemented through Tamil Nadu Backward Classes Economic Development Corporation (TABCEDCO)

Minutes of the meeting

A special meeting of the SLBC, Tamil Nadu was held on 23.07.2013 at the Central Office of Indian Overseas Bank to discuss various issues on Educational Loan Scheme of NBCFDC implemented through Tamil Nadu Backward Classes Economic Development Corporation (TABCEDCO). Deputy General Manager, IOB & SLBC, Tamil Nadu, Finance Officer & Manager from TABCEDCO and representatives from member banks were participated in the meeting.

Dr.B.Bandyopadhyay, Deputy General Manager, IOB & SLBC, Tamil Nadu welcomed the participants and explained the forum about the present scenario in educational loans extended by the banks in the State. He has also informed the forum about the target of educational loan fixed by Ministry of Finance, Government of India and progress in the state. Manager, TABCEDCO explained the salient features of the scheme and informed the forum that the scheme can be made use by the banks to cater the educational loan needs of students belonging to Backward Classes, Most Backward Classes & denotifed Communities as notified by Central Government/ State Government from time to time whose annual family income should be below Rs 1,03,000/- for urban areas and 81,000/- for rural areas.

She requested all the commercial banks to become a sub channelising agency (SCA) of TABCEDCO for extending loans with a nominal interest (male students 4 % p.a & female students 3.5% p.a) to the students of backward classes communities. While NBCFDC does 90% funding of the loan amount, TABCEDCO’s share is 5% and the margin to be brought by the student is 5% as per the scheme. She also informed that banks will be given 2-2.5% of service charges for rendering services as SCA as the case may be.

20

Representatives from the member banks have made the following observations about certain terms and conditions of the scheme:

S.No Condition Observation 1. It will be obligatory for SCA to The condition may be changed repay the dues to TABCEDCO as “Banks will repay the dues to on the due dates with 3 days TABCEDCO, only when recovery grace period, irrespective of is made from the borrower”. whether the recovery was Grace period of 3 days for made from the beneficiary or remittance of due is not sufficient not for banks due to the practical difficulties at the branch level. Reasonable time should be given. 2. In the event of default of Condition to pay penal interest repayment by SCA, penal of 5% may be waived. Banks will interest @5 % per annum will be repay the dues to TABCEDCO, levied in addition to the normal only when recovery is made from interest for the period of delay the borrower, with a reasonable in making repayment. grace period. 3. In case, the loan amount Condition to pay 13.5% interest drawn from TABCEDCO could on the loan amount remaining not be disbursed by the bank, with the bank due to reasons for any reason, the un- which are beyond the control, disbursed amount shall be may be removed. remitted back to TABCEDCO along with the interest @ 13.5% per annum. 4. All legal action arising out The legal charges for recovery of cheque bouncing cases and loan from the students may be for recovery of dues from the borne by TABCEDCO. beneficiary shall be pursued by SCA and the legal expenses also to be borne by them.

21

5. Service charges to SCA 2 % of additional service charges SCA will be allowed to retain may be provided by TABCEDCO the difference in interest to SCA throughout the recovery amount @2.5% or 2% as the period. case may be as service charge. SCA will also be paid additional service charge of 0.5% on timely repayments.

Further, the representatives of banks made the following observations:

 Coverage of these loans under a Credit Guarantee Scheme should be explored.  The onus of recovery should be with TABCEDCO.  The loan documentation procedure to be clarified. The sample format of documents may be provided by TABCEDCO to the banks for perusal.  The procedure for the subsequent stage releases of the loan throughout the study period to be prescribed.  TABCEDCO may provide refinance to the banks who have already provided educational loans to the backward classes students who fall within the eligibility norms of NBCFDC scheme.  Whether the scheme provides for top up loan for the students, who want to pursue for higher education. This should be clarified.

The Deputy General Manager, SLBC requested the officials of TABCEDCO to provide clarification to the above observations to enable SLBC to place this issue for further discussion in the ensuing meeting of SLBC.

The meeting ended with a vote of thanks by Chief Manager, SLBC.

22

23

24

25

26

27

New Issues 135th SLBC

4. Extension of Direct Benefit Transfer and Direct Benefit Transfer (LPG) in phases in Tamil Nadu districts:

Government of India has decided to extend the Direct Benefit Transfer Scheme to 78 more Districts with effect from 01.07.2013. Three districts namely Ariyalur, Trichy and Pudukottai in Tamil Nadu have been included in the II phase of 78 districts.

In order to implement the DBT scheme, member banks were requested to be in readiness and adhere to the following

 Open accounts for all all the residents in the command area of the bank branches in mission mode.

 Seed all the existing accounts & new accounts with numbers

 Issue debit cards to all account holders

 Install ATMs in all branches

The above actions will facilitate DBT beneficiaries of the district to readily reap the benefit of the scheme as and when the beneficiary list is made available by the State Government authorities and the scheme implemented. The State Government is requested to resolve the issue and to provide the list of beneficiaries at the earliest.

Direct Benefit Transfer (LPG): Now Government of India proposes to launch Direct Benefit Transfer (LPG) in 25 districts of Tamil Nadu among various districts in the country, in a phased manner as detailed below based on the percentage of AADHAR generation in the districts:

28

S.No Date of launch Districts 1 01.10.2013 Ariyalur 2 01.11.2013 Trichy,Madurai,Pudukottai,Nagapattinam 3 01.12.2013 Cuddalore,Perambalur,Karur,Dharmapuri,Salem ,Erode

4 01.01.2014 Thanjavur,Dindigul,Thiruvarur,Namakkal Vellore,Ramanathapuram,Villuppuram,Theni Kanyakumari,Kancheepuram,Thoothukudi Tirunelveli,Krishnagiri

The member banks are advised to seed the AADHAAR details to the bank accounts to enable smooth transfer of subsidy for LPG.

29

New Issues 135th SLBC

5. Tamil Nadu Government’s Old Age Pension scheme. Implementation of second phase in 1660 villages with population 1600-2000:

Tamil Nadu Government’s Old Age Pension scheme was implemented as a first phase in 4445 villages of the state having population above 2000. The member banks have opened accounts for 6.69 lakh beneficiaries so far out of the 6.92 lakh beneficiaries, issued smart cards and pension is paid through Business Correspondents at the doorstep of the beneficiaries. SLBC appreciates all the member banks for their efforts in making this happen.

It was reported in the review meeting held on 26.07.2013 that there is delay in payment of pension in some places in the state. The member banks are advised to ensure that their Business Correspondents are paying the pension within 10 days from the date of credit in to the beneficiaries’ accounts.

It has been also decided that the scheme will be extended further to 1660 Financial Inclusion villages with a population of 1600-2000 in the second phase. The member banks were already advised to open accounts for the beneficiaries of villages in the category of 1600 to 2000 population, biometrics captured and smart cards issued, based on the list obtained from Deputy Collectors (SSS) in the districts.

During the review meeting convened by Joint Commissioner, Revenue Administration, Government of Tamil Nadu on 30.08.2013 it was decided that, 1) The list of beneficiaries is to be handed over to the bank branches by the Deputy Collector (SSS) on or before 07.09.2013. 2) The Banks should immediately initiate steps to engage Business Correspondents in their allotted villages. 3) The process of opening of accounts and capturing biometrics to commence from 16.09.2013 onwards. 4) The smart cards are to be despatched by 30.10.2013.

30

The pension payment in the 1660 villages of the IInd phase has to be made for the month of November in December, 2013.

Member banks are advised to instruct their branches in whose service area the 1660 II phase villages fall to initiate immediate steps to open accounts of the beneficiaries as and when the list is provided to them by the Deputy Collector (SSS). Apart from opening of accounts arrangements to be made for capturing of biometrics and issue of smart cards to the beneficiaries well within the stipulated time to make the II phase implementation a grand success.

31

New Issues 135th SLBC

6. Sponsoring of BPL candidates to RSETI and reimbursement of their training costs:

Joint Secretary (RL), Ministry of Rural Development, Government of India in his letter D.O.No.1-12022/31/2012-SGSY/NRLM dated 18.02.2013 addressed to Principal Secretary, Rural Development, Government of Tamil Nadu advised the State Government to,

1. Sponsor BPL candidates / render assistance to Director RSETI in identifying suitable candidates for the programmes.

2. Reimburse Training cost of BPL candidates.

It is observed from the feedback received from the Directors of RSETIs in Tamil Nadu that,

1) Mahalir Thittam offices in the Districts have not so far sponsored any BPL candidate for training in RSETI. The trainees are mobilized by the RSETIs on their own by releasing advertisements in the News Papers and through other modes.

2) No assistance is being extended to the Directors in identifying suitable candidates for the programmes.

3) It is also observed that training programmes are conducted by Mahalir Thittam offices in the districts by engaging various private training establishments.

4) There is no system of sponsoring BPL candidates to RSETI for training and there is also no system of reimbursement of training costs of BPL candidates.

32

The Managing Director, TNCDW is requested that suitable instructions should be given to the Project Officers of Mahalir Thittam in all districts that all the training programmes for the BPL candidates by all the State Departments should only be conducted through RSETI located in every district and the BPL candidates suitable for the training programmes should be sponsored by the respective Project Officer, Mahalir Thittam and the cost of the BPL trainees should be reimbursed to the RSETIs as directed by Ministry of Rural Development, Government of India.

The above requests if implemented will go a long way in the effective functioning of RSETIs up to the expectations of the Government and the poor beneficiaries will get quality training and further hand holding.

The members are requested to deliberate on this issue.

33

New Issues 135th SLBC

7. Enumeration & Registration of SHGs and creation of a database:

The Self Help Group movement has been very successful in Tamil Nadu. All the Banks have been actively extending finance to the Self Help Groups since the beginning of formation of SHGs in the State. The Banks have also been instrumental in formation & grading of SHGs and have also been supporting them to establish economic activities for their sustained livelihood. The targets set by the Government for SHG-Bank Linkage are achieved year after year without any issues and our state is one among the top states in Self Help Group activities.

The targets are on the increase every year and the target for 2013-14 is Rs.6000 crores, (approved in the 134th Meeting of SLBC held on 18.06.2013) which is an increase of Rs.2000 crores over the last year’s target of Rs.4000 crores. It is pertinent to note that,

1. Self Help Groups are promoted in the State by multiple agencies like Mahalir Thittam, NGOs, Micro Finance Institutions (MFI), Post Tsunami Livelihood Project, Pudu Vazhvu Project, Banks and others.

2. Of late, instances of same person becoming a member of multiple groups and the same member availing finance from various agencies are on the increase.

3. Consequent to the above, the delinquency rate is also increasing and the recovery percentage shows a steady decline.

34

Many banks have represented that this trend should be arrested, especially in the scenario of extending credit assistance of Rs.6000 crores during 2013-14 and in the process of implementation of NRLM in a big way in the state. They have also represented that it is high time for the enumeration of the groups and compulsory registration of the SHGs formed so far under various banners and also to be formed in the future.

The member banks have also requested that Tamil Nadu Corporation for Development of Women being the flagship organization for the SHG movement in the State, should initiate steps in the above direction and should lay down necessary procedures for compulsory registration of each SHG and its members with Mahalir Thittam and also a data base of all the SHGs should be maintained by TNCDW to enable the bankers to verify the same before financing any group.

The Tamil Nadu Corporation for Development of Women is requested to initiate suitable action at the earliest possible time to enumerate all the SHGs in the state and also to make registration with TNCDW compulsory, which will definitely help the banks to identify the right group for extending financial assistance and to achieve the targets hassle free. It is also requested that the details of the SHGs be made available in the Government website to enable banks to access.

The members are requested to deliberate on this issue.

35

New Issues 135th SLBC

8. Administrative approval from Government of India for implementation of centrally sponsored “Poultry Development” scheme during 2013-14:

Department of animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, Government of India advised the continuation of the captioned scheme for the year 2013-14.

The Government of India circular dated 18.06.2013 is enclosed for the ready reference of member banks.

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

New Issues 135th SLBC

9. Continuation of Tamil Nadu Government’s Scheme for Poultry Development during 2013-14:

Tamil Nadu Government vide G.O.(Ms) No.171 dated 09.07.2013 extended implementation of Poultry Development Scheme during 2013-14 and allocated a sum of Rs.25.00 crores as subsidy for the scheme.

The broiler scheme is further expanded to Theni, Sivagangai and Vellore districts. The native chicken scheme is implemented in 17 districts. A copy of the G.O.(Ms)171 is enclosed for ready reference of the member banks.

The member banks are requested to instruct their branches to process the applications sent to them under the scheme without any delay.

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

New Issues 135th SLBC

10. Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS)

Ministry of Finance, Government of India advised that the external audit conducted to verify the beneficiaries assisted under SRMS scheme in Gujarat, Maharashtra, Rajasthan and Tamil Nadu have reported that many beneficiaries who were provided loan and capital subsidy for taking up self employment project for their rehabilitation, under the scheme, have not utilized the assistance for the purpose for which it was sanctioned.

Further, Ministry of Social Justice and Empowerment has requested Ministry of Finance to issue necessary instructions to banks concerned to identify and investigate all cases of misutilisation of funds under the scheme and to take appropriate consequential measures to recover the funds which might have been misutilised.

A meeting of the special Committee of SLBC was conducted on 22.07.13 to discuss about the modalities to be followed in compliance with the instructions of Ministry of Finance to verify the all the cases of misutilisation of funds in SRMS scheme in Tamil Nadu.

It was decided in the meeting that,

a) 10% verification of the accounts by each bank will be conducted. b) Such verification should be spread over the State and not restricted to one or two districts. c) Verification should be done jointly by banks and TAHDCO. d) SLBC to devise a common format for verification of the accounts. e) The exercise has to be completed within 15 days after getting communication from SLBC.

68

The list of the 10352 beneficiaries assisted under the scheme by all the banks in Tamil Nadu is available in the website of TAHDCO. SLBC has designed a format for verification of the accounts by banks jointly with TAHDCO. Member banks may take assistance by contacting the District Manager, TAHDCO of their respective districts.

SLBC had already advised the list of beneficiaries assisted under the scheme separately along with the format to all the banks on 27.08.2013 and requested the member banks to verify 10% of their accounts jointly with TAHDCO.

The member banks are advised to verify 10% of their accounts and submit a report to SLBC in 15 days time to enable us to submit a report to Government of India.

69

70

New Issues 135th SLBC

11. Permission in writing for creation of mortgage of immovable properties owned by Private Colleges / Private Schools:

Banks are taking mortgage of immovable properties of Private colleges and Schools as a security for the loans and advances extended to the educational institutions i.e. colleges and schools. As per the Tamil Nadu Private Colleges (Regulation) Act,1976, previous permission in writing has to be obtained from the competent authority before alienating the property of a private college.

Many banks report that when their clients apply to the Director of Collegiate Education or Director of School Education for permission in writing, only an acknowledgement is received from the authorities. There is a likelihood of the mortgage becoming voidable at a later date in the absence of permission in writing.

The State Government is requested to look in to the matter urgently and to instruct the respective Departments to issue permission in writing in addition to acknowledgement.

71

New Issues 135th SLBC

12. Common Effluent Treatment Plants –Non receipt of 3rd instalment of subsidy from Government of India and Tamil Nadu State Government:

Housing and Urban Development Corporation Limited (HUDCO) advised vide their letter dated 23.08.2013 that the 3rd instalment of subsidy of the Government of India and Government of Tamil Nadu in respect of Common Effluent Treatment Plants of Tiruppur is yet to be released. The accounts have already been classified as NPA and the delay in receipt of subsidy adds further difficulty.

The State and Central Governments are requested to release the 3rd instalment of subsidy at the earliest.

72

AGENDA No: 3 135th SLBC

REVIEW ON BANKING DEVELOPMENTS IN TAMILNADU IN KEY PARAMETERS AS OF JUNE 2013

KEY PARAMETERS (Amount – Rs.in Crores)

Variation & % of June Parameters June 2013 growth over June 2012 2012 No. of Branches 7494 8140 646 Deposits 390518.57 448066.55 57547.98 14.74% Advances 458306.55 532304.92 73998.37 16.15% CD Ratio 117.36% 118.80% Investments 2764.39 5427.81 2663.42 Credit + Investment to Deposit 118.07% 120.01% Ratio Priority Sector Advances 177629.42 213873.84 36244.42 20.40% % of Priority Sector Advances 39.54% 40.09% to Total Advances Agricultural Advances 77402.66 96938.79 19536.13 25.24% % of Agricultural Advances to 17.23% 18.17% Total Advances Micro & Small Enterprises 60771.14 70305.03 9533.89 15.69% (MSE) Of which Micro enterprises 22434.76 31659.85 9225.09 41.12% Micro Credit 3299.61 4213.42 913.81 27.69% Education 12364.79 14208.18 1843.39 14.91% Housing 23492.12 28208.42 4716.30 20.08% Advances to Weaker Sections 51451.74 57260.48 5808.74 11.29% % of Weaker Section Advances 11.45 10.73 to Total Advances DRI Advances 224.59 109.09 -115.50 -51.43% % of DRI Advances to Total 0.05 0.02 Advances

73

BRANCH NETWORK

As at the end of June 2013, the total number of Bank Branches in Tamil Nadu increased to 8140 from 7494 in June 2012. Group wise spread of Bank branches in Tamil Nadu as of June 2012 and June 2013 are given below:

Name of the Group June 2012 June 2013 Variation

State Bank Group 1059 1161 102 Nationalised Banks 4117 4347 230 Other Public Sector Banks 66 75 9 Private Sector Banks 1883 2159 276 RRBs 345 374 29 Foreign Banks 24 24 0 TOTAL 7494 8140 646

DEPOSIT GROWTH

Deposits of the Banks in Tamil Nadu have increased from Rs.390518.57 crores as of June 2012 to Rs.448066.55 crores as of June 2013, registering an increase of Rs.57547.98 crores. The year on year incremental deposit growth is 14.74%.

CREDIT EXPANSION

The total advances increased from Rs.458306.55 crores as of June 2012 to Rs.532304.92 crores as of June 2013, an increase of Rs.73998.38 crores. The incremental growth is 16.15%.

CD RATIO

The Credit Deposit Ratio of Commercial Banks in Tamil Nadu increased from 117.36% as of June 2012 to 118.80% as of June 2013.

74

PRIORITY SECTOR ADVANCES

The percentage of priority sector advances is 40.09% as of June 2013 as against the national norm of 40%.

The share of Priority Sector Advances have slightly increased from 39.54% as of June 2012 to 40.09% as of June 2013.

AGRICULTURAL ADVANCES

The aggregate of agricultural advances extended by Banks in Tamil Nadu have increased from Rs.77402.66 crores as of June 2012 to Rs.96938.79 crores as of June 2013, thus registering an increase of Rs.19536.13 crores in absolute terms and 15.69 in percentage terms. The share of agricultural credit in total advances as of June 2013 is 18.17% against the national norm of 18%.

MICRO & SMALL ENTERPRISES (MSE)

The advances to Micro & Small Enterprises sector (MSE) during the period under review have witnessed an increase by Rs.9533.89 crores, from Rs.60771.14 crores as at June 2012 to Rs. 70305.03 crores as at June 2013. The incremental growth is 15.69%.

EDUCATION LOAN

Educational Loans have increased from Rs.12364.79 crores in June 2012 to Rs.14208.18 crores as of June 2013. The increase of Rs.1843.39 crores under Educational Loans represents a growth rate of 14.91%.

HOUSING LOAN

The outstanding under Housing Loans has increased from Rs.23492.12 crores as of June 2012 to Rs.28208.42 crores in June 2013. The increase of Rs.4716.30 crores under housing loan represents a growth rate of 20.08%.

75

ADVANCES TO WEAKER SECTIONS

The advances to Weaker Sections increased from Rs.51451.74 crores as of June 2012 to Rs.57260.48 crores as at the end of June 2013, registering a growth rate of 11.29%. At this level, advances to Weaker Sections constituted 10.73% of the total credit against the national norm of 10%.

DRI ADVANCES

The outstanding advances under DRI has decreased from Rs.224.59 crores as of June 2012 to Rs. 109.09 crores as of June 2013.

The percentage of DRI advances to total advances is 0.02%.

76

PERFORMANCE OF COMMERCIAL BANKS UNDER THE STIPULATED NATIONAL NORMS ARE AS UNDER: (Amount Rs.in Crores) National Norms for Achievement upto March 2014 June 2013 Particulars % Target % Amount Amount Priority Sector Advances to 40.00% 213407.88 40.09% 213873.85 Total Advances Agricultural Advances to Total Advances 18.00% 96033.55 18.17% 96938.78 Weaker Section Advances to Total Advances 10.00% 53351.97 10.73% 57260.48

The share of Priority Sector advances stands at 40.09% as against the National Norm of 40%. The percentage of Priority Sector Advances to total Advances has shown a marginal increase from 36.90 % as at the end of June 2012 to 40.09% as at the end of June 2013.

The percentage of Agri Advances to total advances has increased from 17.23% as at the end of June 2012 to 18.17% in June 2013.

CREDIT + DEPOSIT RATIO

CD Ratio as of June 2013 is as follows:

(a) Commercial Banks : 118.80%

(b) Including Co-operative Banks : 117.62%

77

DISTRICTWISE PERFORMANCE OF COMMERCIAL BANKS IN TAMILNADU

A comparative analysis of the performance of the Commercial Banks in Tamil Nadu indicates the following: a) Theni district has the highest CD ratio at 222% followed by Ariyalur district (220%) & Dharmapuri district (200%). b) All the 32 districts in the state have achieved the desired CD ratio of 60% or more.

Agricultural advances to total advances in the following district is below 18% norm.

Coimbatore -- 12.01%

78

REVIEW OF OPERATIONS OF CO-OPERATIVE BANKS IN TAMILNADU AS AT THE END OF JUNE 2013

As at the end of June 2013, there were 834 branches of Co-operative Banks (both, District Central Co-operative Banks and State Agricultural and Rural Development Banks) in Tamil Nadu. The details are furnished for the information of the members.

June 2012 June 2013 Classification of Branches Rural 270 261 Semi-Urban 197 220 Urban 185 203

Metro 146 150 TOTAL 798 834

(Amount – Rs. in Crores) Particulars June 2012 June 2013 Deposits 22476.44 26399.82 Advances 29149.56 25753.88 Investments 7001.70 8336.62 CD Ratio 129.69% 97.55% Credit + Investment to Deposit Ratio 160.84% 129.13%

(Amount – Rs. in Crores) S. June June No. Particulars 2012 2013 1 Agricultural Advances 3592.58 4236.01 Of which, Direct Advances 426.74 407.22 2 Micro & Small Enterprises 2061.74 2258.74 3 Education 3.22 2.28 4 Housing 169.51 178.93 5 Micro Finance & Others 320.27 562.63 TOTAL PRIORITY SECTOR ADVANCES 6147.32 7238.59

79

ADVANCES UNDER SPECIAL PROGRAMMES / SCHEMES / SECTORS

(Amount – Rs. in crores) June 2012 June 2013 Total Advances to Weaker Sections 4195.84 5141.42 Of which, (i) Advances under SC/ST 1534.09 1154.91 (ii) Advances under IRDP/SGSY 1082.48 123.52 (iii) Advances under DRI 121.98 12.16

NPA POSITION IN PRIORITY SECTOR ADVANCES – March 2013 (Amount – Rs. in crores) NPA % of NPA Amount i) NPA in Housing loans 13.58 7.90% ii) NPA in Education loans 1.97 83.83% iii) NPA in Agriculture Loans 245.04 5.07% iv) NPA in Loans to MSE 2.72 0.11% v) NPA in Loans to Micro Credit 59.77 13.27% vi) NPA in over all Priority Sector Lending 195.13 2.43%

80

81

82

83

AGENDA No: 4 135th SLBC

REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN 2012 – 2013: (APRIL 2012 TO MARCH 2013)

The tentative Annual Credit Plan achievement for the year 2012-13 was placed in the 134th SLBC Meeting held on 18.06.2013.

Now, the final Annual Credit Plan achievement for the financial year 2012-13 for the State of Tamil Nadu is placed below for the information of the forum. (Amount in Rs. Crores) Credit Allocation Credit Disbursed % of Sector April 2012 to March 2013 Achievement

Farm 53325.53 58259.02 111 Non-Farm 14293.54 12639.87 88 OPS 15894.70 16008.45 98

TOTAL 82513.77 86907.34 105

The details of progress made under ACP 2012-13 Districtwise/bank- wise/activity-wise is furnished in the annexure for information.

84

85

86

87

88

AGENDA No: 5 135th SLBC

ANNUAL CREDIT PLAN 2013-14

The tentative Annual Credit Plan for 2013-14 was placed in the 134th SLBC Meeting held on 18.06.2013.

Now, the final Annual Credit Plan for the financial year 2013-14 for the State of Tamil Nadu is placed below for the information of the forum.

(Number of accounts in actual and Amt. in Thousands) Sr. Yearly Targets under No Sector Sub-Sector ACP Number Amount 1 Agriculture & allied - Direct 11481720 614035971 2 Agriculture & allied - Indirect 430210 40776513 Agriculture & allied – 3 Sub Total = 1+2 11911930 654812484 Priority 4 MSE 985725 193265160 5 Education 274359 30117577 6 Housing 196577 51110048 7 Others 1129183 121192490 Total (Priority) 14497774 1050497759

8 Heavy Industries 82 8650000 9 Medium Industries 672 32230408 10 Non- Education 1216 1940498 11 Priority Housing 3649 11623164 12 Others 1832206 113803217 14 Total (Non Priority) 1837825 168247287 15 Total (Priority+ Non Priority) 16335599 1218745046

Active involvement of all the Banks in Tamilnadu is sought for the successful achievement of the Annual credit plan 2013-14. Various Departments and agencies of the Government are also requested to extend support in filling up the infrastructure gaps, if any.

The detailed 1. District-wise /sector-wise & 2. Bank-wise /sector-wise Annual Credit Plan is enclosed as annexure.

89

AGENDA No: 5A 135th SLBC

REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN 2013-14 APRIL 2013 TO JUNE 2013

As per quick information report obtained from the Lead District Managers, banks in Tamil Nadu have disbursed total credit(both priority and non priority) of Rs.25833.60 crore against proportionate plan allocations of Rs.28636.45 crore representing 90% achievement under ACP for the year 2013-14 (April 2013 to June 2013).

The consolidated sector-wise achievement is given below.

(LBS MIS II) (Number of accounts in actual and Amt. in Thousands)

Disbursement during the quarter ended Outstanding as of June Sr June 2013 2013 No Sub-Sector Number Amount Number Amount 1 Agriculture & allied - Direct 2258998 136870820 11098671 819849944 2 Agriculture & allied - Indirect 44174 4988422 401689 69081956 Agriculture & allied - 3 Sub Total=1+2 2303172 141859242 11500360 888931900 4 MSE 194369 39923981 2188494 448393800 5 Education 43426 4611252 939440 124156800 6 Housing 54777 12296976 770269 184834400 7 Others 222830 23637387 1321630 41114100 Priority Total 2818574 222328838 16720193 1687431000 8 Heavy Industries 18 2207500 234 20992369 9 Medium Industries 131 6621773 129976 54956755 10 Education 103 162452 74003 2533691 11 Housing 364 1631967 93980 26225739 12 Others 334087 25383538 5164411 836395646 Non Priority Total 334703 36007230 5462604 941104200 Grand Total 15 (Priority + Non Priority) 3153277 258336068 22182797 2628535200

90

(LBS MIS III) (Number of accounts in actual and Amt. in Thousands) Achievement for the % of achievement Target for the quarter quarter ended June for the quarter Sr Sub-Sector ended June 2013 2013 ended June 2013 No Number Amount Number Amount Number Amount (%) (%) Priority Agriculture & allied - 1 Direct 2683330 146967975 2258998 136870820 84 93 Agriculture & allied - 2 Indirect 83888 7694186 44174 4988422 53 65 Agriculture & allied - 3 Sub Total=1+2 2767217 154662161 2303172 141859242 83 92 4 MSE 228292 49293165 194369 39923981 85 81 5 Education 67179 6744890 43426 4611252 65 68 6 Housing 53067 12211859 54777 12296976 103 101 7 Others 229889 23898597 222830 23637387 97 99 Priority Total 3345644 246810672 2818574 222328838 84 90 Non Priority 8 Heavy Industries 22 2375000 18 2207500 82 93 9 Medium Industries 143 6956556 131 6621773 92 95 10 Education 208 323876 103 162452 50 50 11 Housing 654 2047264 364 1631967 56 80 12 Others 410398 27851191 334087 25383538 81 91 Non Priority Total 411425 39553887 334703 36007230 81 91 Grand Total (Priority 15 + Non Priority) 3757069 286364559 3153277 258336068 84 90

District wise performance:

District wise/ Sector wise performance for the period ended March 2013 is furnished in Annexure – I. Banking System in Tamil Nadu have achieved 90% of the plan allocation during the period under review.

91

Sector wise performance:

A. Farm Sector (Agriculture and Allied Activities- Direct & Indirect): The performance under Farm Sector is satisfactory with 92% for the quarter ended June 2013. 12 districts have achieved 100% or more under Farm Sector.

B. MSE Sector – Industries:

Performance of Banks in Tamil Nadu under MSE Sector works out to 81% of the proportionate plan allocation for the quarter year ended June 2013. 9districts have achieved 100% or more under MSE Sector.

B. Other Priority Sector (Education, Housing & Others): Performance of Banks in Tamil Nadu under education, housing & others works out to 68%, 101% & 99% of the proportionate plan allocation respectively for the quarter ended June 2013 The details of 1. Districtwise / Sector-wise disbursement (LBS MIS II) and 2. district-wise /Sector-wise achievement (LBS MIS III) for the quarter ended June 2013 under ACP is enclosed as annexure.

92

93

94

95

96

97

98

99

AGENDA No: 6 135th SLBC

MICRO & SMALL ENTERPRISES (MSE) SECTOR

Credit flow to MSE Sector for the quarter ended June 2013 is furnished in the annexure. Credit flow to Micro and Small Enterprises amount to Rs.3477.23 crores & Rs 3277.91 crores respectively.

The MSE disbursement made during the first quarter 2013-14 is Rs.6755.14 crores compared to Rs.4243.34 crores disbursed in the corresponding period last year (incremental growth 59.19%).

The share of advance to Micro Enterprises to total MSE for the quarter ended June 2013 (April 2013 to June 2013) is 51.48%. During the corresponding period last year it was 41.41%.

Though there is a significant improvement when compared to the corresponding period last year, the Member Banks should speed up the flow of credit to Micro Enterprises so that the 60% norm could be achieved.

The share of Micro Enterprises in credit flow to MSE are furnished in the annexure (Bank-wise).

Special SLBC Meeting on Development of MSE Sector in Tamil Nadu:

A special meeting of SLBC, Tamil Nadu was held on Development of Micro and Small Enterprises in Tamil Nadu. General Manager& Convenor SLBC, DGM, RBI, GM(MSME), IOB, Additional Director, Dept. of Industries and Commerce, Government of Tamil Nadu, Senior Officials from Banks, representatives of 11 industry associations participated in the meeting. The minutes of the meeting has already been circulated to all the member banks.

Reserve Bank of India vide their letter 03.09.2013 clarified that switching over to 180 days norms of Income Recognition and Asset Classification was not found feasible and banks are advised vide circular RPCD.Co.MSME & NFS.BC.40/06.02.31/2012-13 dated 01.11.2012 to strictly adhere to revised guidelines for rehabilitation of sick units in the MSE sector.

100

101

AGENDA No:7 135th SLBC

Prime Minister’s Employment Generation Programme (PMEGP)

KVIC, Chennai vide their letter dated 22.08.2013 has advised the target & achievement for 2013-14 under PMEGP Loan Scheme as on 30.06.2013, as given below:- (Rs. in Lakhs) Name of Target Achievement the Projects Margin Emp Projects Margin Emp Agency Money Money KVIC 716 1647.09 5728 33 47.89 213 KVIB 716 1647.09 5728 0 0.00 0 DIC 954 2196.12 7632 0 0.00 0 Total 2386 5490.30 19088 33 47.89 213

During the first quarter the progress of the scheme is very low. Member banks are requested to speed up the sanction / disposal of the pending loan application immediately.

Bank-wise performance under PMEGP is given below, (Rs. in Lakhs) S. Margin No Name of the Bank Projects. Money Emp 1 State Bank of India 6 7.73 37

2 Indian Overseas Bank 12 7.20 46

3 Indian Bank 2 5.09 32

4 1 7.09 23

5 of India 1 8.75 26

6 Bank of Baroda 1 0.35 0

7 5 0.70 13

8 1 7.94 27

9 Tamilnadu Mercantile Bank 4 3.04 9

TOTAL 33 47.89 213

102

Information on share of SC/ST under PMEGP Loan Scheme

As advised by National Commission for SC, Government of India, KVIC have furnished the SC/ST performance on PMEGP scheme 2013-14 as on 30.06.2013. Out of the total number of 33 projects sanctioned during the 1st quarter ending June, 2013, the share of SC/ST is “Nil” as per the report submitted by KVIC,Chennai.

Member banks are requested to o speed up the sanction / disposal of the pending loan application of the SC/ST beneficiaries immediately.

103

AGENDA No:8 135th SLBC

Setting up of Rural Self-Employment Training Institutes (RSETIs)

All the Four Banks having Lead District responsibilities have since opened RSETIs in the lead districts allotted to them (Total 30 RSETIs).

IOB has opened a RSETI at Kothagiri in Nilgiris District to impart skill training to Tribal People of the Nilgiris District.

Performance of the RSETIs during April to June 2013:

Total No of No of Of which No of No. of Number training persons SC/ST Minority OBC Others persons trained of programme trained secured persons RSETI conducted employment/ Credit during self Linked April to employment June 2013

31 111 3060 766 236 1901 157 1563 391

All the 31 RSETIs in the State should endeavour to obtain A+ grade during the current year. The Monitoring Cell of National Academy of RUDSETIs had advised certain parameters to all the RSETIs for grading them. The RSETIs should comply with the requirements to get A+ grade.

A sub-committee of SLBC on RSETI consisting representatives from 4 major banks namely Indian Overseas Bank, Indian Bank, Canara Bank & State Bank of India, Principal Secretary, Department of Rural Development, Government of Tamil Nadu and The Managing Director, Tamil Nadu Corporation for Development of Women (TNCDW) as members had been constituted to review the performance of RSETIs.

104

AGENDA No.9 135th SLBC

Setting up of Financial Literacy & Credit Counselling Centres (FLCCC)

Four Lead banks namely IOB, Indian Bank, Canara Bank & State Bank of India have completed establishment of FLCCCs in their lead districts (31 districts). Apart from the four lead banks, Bank of India and ICICI Bank Ltd have opened FLCCC each one at Chennai.

FLCCC Progress Report for the Quarter ended June 2013.

Sl. Name of the No of No. of No. of No of Bank FLCCC persons Outdoor persons No Counselled activities participated during the undertaken in outdoor quarter during the activities Quarter during the Quarter 1 IOB 13 1185 156 12634

2 Indian Bank 10 1093 30 3223

3 Canara Bank 7 2119 272 29156

4 SBI 2 356 12 1004

5 BOI 1 36 0 0

6 ICICI Bank Ltd 1 108 2 110 TOTAL 34 4897 472 46127

All the member banks are advised to instruct their rural branches suitably to undertake financial Literacy activities and submit their consolidated progress details to SLBC and RBI. The necessary publicity materials will be printed and circulated to member banks. RBI is taking steps to bring out publicity materials in local language. The posters will be printed and sent to banks as and when the publicity materials in local language are received from RBI.

105

AGENDANo.10 135th SLBC

Progress under Financial Inclusion in Tamil Nadu as on 31.07.2013

SLBC identified and allotted 1660 villages to various banks with population over 1600 to 2000 as per 2001 census.

As desired by Hon’ble Chief Minister of Tamil Nadu, Banks have decided to provide banking facilities in all the villages in the State irrespective of the population. Total no. of villages identified and allotted is 5622 in 31 districts under the category of 0 to 1600 population.

As advised by Reserve Bank of India, SLBC identified 534 villages as unbanked villages which were not identified earlier due to the presence of PACB/PACS and allotted to various banks for coverage before March, 2013.

Total No. of villages under all the categories are 7816 villages. As per the monthly progress report submitted by banks 7250 villages have been covered as of July 2013.

As the progress report is to be keyed in directly in the website of Ministry of Finance by SLBC before 5th of every month, all the participating banks are requested to submit the monthly progress report in SW3- format to SLBC by 5th of every succeeding month without fail.

Bank-wise progress report as on 31.07.2013 is enclosed.

106

107

AGENDA No. 11 135th SLBC

Ultra Small Branch (USB)

Ministry of Finance, Government of India advised that at places where the opening of conventional Brick & Mortar Branch is presently not viable, the Bank may set up USBs. When the Bank reaches the desired level of business, the USB can be upgraded into a regular Bank Branch.

In Tamil Nadu banks have covered 4445 villages with a population of 2000 and above under Financial Inclusion. Banks have opened 3509 USBs in the State as on 31.07.2013. The bank wise data on USBs opened in the state is enclosed.

Member banks are requested to expedite opening of Ultra Small Branches in the remaining villages wherever BCs are engaged and ensure 100 % achievement as per the guidelines of Ministry of Finance.

The member banks are requested to furnish the progress to SLBC on or before 5th of every succeeding month without fail.

108

109

110

AGENDA No.12 135th SLBC

Campaign to ensure at least one Bank Account for each family in all villages and urban areas.

Ministry of finance, Government of India advised banks to launch a campaign to ensure each family living in the FI villages has a Bank account to facilitate Direct Benefit Transfer of subsidies under the 26 schemes of Govt. of India

Ministry of Finance, Government of India has clarified that opening of accounts should not be restricted only to FI Villages and the campaign should cover all the rural villages and urban areas by banks in their service area.

All the member banks and Lead Districts Managers are requested to carry on the campaign for opening of accounts as per the directives. All member banks are requested to submit the monthly progress report on or before 4th of every succeeding month to SLBC.

The latest bank wise position as on 31st July, 2013 in opening bank accounts for each family is enclosed. The percentage of households having bank accounts in the State has gone up to 98.04% from 52.50% after the launch of the campaign. All the member banks are requested to expedite to complete coverage of 100% of the households by September 2013.

111

STATE LEVEL BANKERS' COMMITTEE, TAMIL NADU CONVENOR : INDIAN OVERSEAS BANK

Total number of accounts opened by banks during the Campaign to Ensure at Least One Bank Account for each family in all villages and urban areas Total Number of Accounts Opened S.No Name of the Bank upto July 2013

1 Allahabad Bank 57432 2 Andhra Bank 17113 3 Ltd., 1317 4 Bank of Baroda 171214 5 Bank of India 97871 6 1312 7 Canara Bank 553254 8 Catholic Syrian Bank Ltd. 20814 9 82517 10 City Union Bank Ltd. 32413 11 8012 12 Dena Bank 9799 13 Dhanalakshmi Bank Ltd. 812 14 Federal Bank Ltd. 615 15 HDFC Bank Ltd 2214 16 ICICI Bank Ltd 20080 17 IDBI Bank Ltd 3906 18 Indian Bank 2175911 19 Indian Overseas Bank 1457462 20 Indus Ind Bank Ltd 53410 21 ING Vysya Bank Ltd. 39601 22 Jammu & Kashmir Bank Ltd 432 23 Ltd. 318 24 Karur Vysya Bank Ltd. 11175 25 Kotak Mahendra Bank Ltd 53

112

STATE LEVEL BANKERS' COMMITTEE, TAMIL NADU CONVENOR : INDIAN OVERSEAS BANK

Total number of accounts opened by banks during the Campaign to Ensure at Least One Bank Account for each family in all villages and urban areas 26 Lakshmi Vilas Bank Ltd. 5631 27 Oriental Bank of Commerce 3112 28 31517 29 Pandyan Grama Bank 275420 30 Punjab & Sind Bank 118 31 109458 32 South Indian Bank Ltd. 60097 33 State Bank of Bikaner & Jaipur 218 34 4152 35 State Bank of India 821245 36 5241 37 State Bank of Patiala 4154 38 State Bank of Travancore 134900 39 95487 40 Tamilnadu Mercantile Bank Ltd 13402 41 U C O Bank 24537 42 Union Bank of India 49543 43 315 44 Vijaya Bank 8758 TOTAL 6466362

113

AGENDA NO.13 135th SLBC

Financial Inclusion & Green Initiatives - Electronic transfer of benefit payments

As advised by RBI the statistical data (in a prescribed format) on ICT based Financial Inclusion from member Banks in Tamil Nadu is collected by SLBC and submitted to RBI.

All the member Banks are requested to furnish the data before 5th of every succeeding month to SLBC, as the consolidated statement has to be submitted to RBI before 7th.

The progress made by the Member Banks under Financial Inclusion as of July 2013 is furnished in the Annexure.

114

Progress under Financial Inclusion by Banks - Cumulative position As of July 2013

Number of Overdrafts Smart S. Name of the Bank No-frills in no frills GCCs Cards No accounts accounts issued 1 Allahabad Bank 14267 5684 0 2121 2 Andhra Bank 12665 0 2 1324 3 Bank of Baroda 56100 0 24 60941 4 Bank of India 203414 11445 2451 37060 5 Bank of Maharashtra 1314 295 0 0 6 Canara Bank 1766780 25688 71868 48320 7 Central Bank of India 130224 0 0 102848 8 Corporation Bank 132814 0 5149 0 9 Dena Bank 30936 0 2 0 10 Indian Bank 2846450 18812 145567 1329911 11 Indian Overseas Bank 3476757 3495 5332 635782 12 Oriental Bank of Commerce 1180 0 1 0 13 Punjab & Sind Bank 1586 0 0 0 14 Punjab National Bank 94351 0 1402 2011 15 State Bank of B & J 2157 0 0 0 16 State Bank of Hyderabad 0 0 0 0 17 State Bank of India 1215000 0 0 318546 18 0 0 0 0 19 State Bank of Mysore 3191 7 72 0 20 State Bank of Patiala 776 1 11 0 21 State Bank of Travancore 83312 0 0 2300 22 Syndicate Bank 85937 109 2478 1585 23 UCO Bank 141000 10 141 21010 24 Union Bank of India 145027 0 0 60225 25 United Bank of India 921 0 0 0 26 Vijaya Bank 27307 355 558 0 27 Axis Bank Ltd 24037 0 0 0 28 Ltd. 104 0 33 0 29 Catholic Syrian Bank Ltd. 11055 0 4 1731 30 City Union Bank Ltd. 89425 12 0 26711

115

Number of Overdrafts Smart S. No-frills in no frills Cards No Name of the Bank accounts accounts GCCs issued 31 Dhanalakshmi Bank Ltd. 16841 0 0 16841 32 Federal Bank Ltd. 7833 0 5 20 33 HDFC Bank Ltd. 97204 0 2663 305 34 ICICI Bank Ltd. 138017 0 33 29776 35 IDBI Bank Ltd. 19802 0 1 0 36 Indus Ind Bank Ltd. 19677 0 0 0 37 ING Vysya Bank Ltd. 1619 8 0 0 38 Jammu & Kashmir Bank Ltd. 3 0 0 0 39 Karnataka Bank Ltd. 17114 0 0 0 40 Karur Vysya Bank Ltd 32728 0 0 25213 41 Ltd. 7702 0 0 0 42 Lakshmi Vilas Bank Ltd. 28513 0 0 19350 43 South Indian Bank Ltd. 92989 19 0 12517 44 Tamilnad Mercantile Bk Ltd. 146969 0 591 17432 44 Pandyan Grama Bank 563675 10586 24 33484 45 Pallavan Grama Bank 29673 73 491 18465 Tamilnadu State Apex 46 Coop.Bank 36847 0 3597 0 TOTAL 11855293 76599 242500 2825829

116

AGENDA NO.14 135th SLBC

Allocation of Targets for Educational loans by Government of India (2013-14):

Ministry of Finance, Government of India has advised the allocation of educational loan outstanding target for the state of Tamil Nadu with 20 % incremental growth in No. of accounts and amount outstanding over March 2013 figures. The total educational loan outstanding target for Tamil Nadu is Rs 16851.08 Crore with a physical target of 1085560 accounts for the year 2013-14.

Based on the above instruction, SLBC allocated this year’s target to all the banks with 20% growth in No. of accounts and amount outstanding over March 2013.

Banks have reached the educational loan outstanding of Rs.14557.80 crore against the target of Rs.16851.08 crore and No. of accounts is 912942 against 1085560 accounts as of June 2013.

Bank-wise educational loan outstanding position as of June 2013 is enclosed.

All the member Banks are requested to achieve the education loan target for 2013-14 and submit monthly progress report in the following format on 5th of every succeeding month to enable us to send the progress report to Ministry of Finance.

Name of the State : Tamil Nadu Progress report for the Month of ______

Name of the Bank Educational loan O/S No. of Amount Outstanding Accounts (Rs in crore)

117

STATE LEVEL BANKERS' COMMITTEE, TAMIL NADU CONVENOR : INDIAN OVERSEAS BANK

PROGRESS REPORT ON EDUCATIONAL LOAN AS ON 30.06.2013 (Rs in Crore) Position as on Target for 2013-14 Sl. 30.06.2013 Bank No No. of Amount No. of Amount A/Cs O/S A/Cs O/S Public Sector Banks 1 Allahabad Bank 3824 74.06 2614 63.47 2 Andhra Bank 7337 125.62 6164 107.92 3 Bank of Baroda 22013 343.20 18715 291.16 4 Bank of India 37340 577.20 30978 504.20 5 Bank of Maharashtra 1537 29.02 1295 25.40 6 Canara Bank 130898 2077.15 110906 1803.11 7 Central Bank of India 48152 653.52 39127 576.60 8 Corporation Bank 20018 348.00 16847 296.63 9 Dena Bank 2359 40.79 1920 32.45 10 Indian Bank 212471 3542.35 178609 3030.00 11 Indian Overseas Bank 192063 2542.27 162140 2209.17 12 Oriental Bank of Commerce 4602 85.78 3811 74.78 13 Punjab National Bank 18128 293.76 15201 254.99 14 Punjab & Sind Bank 236 4.38 185 3.47 15 State Bank of B & J 2336 28.79 935 24.01 16 State Bank of Hyderabad 1973 46.70 1683 44.17 17 State Bank of India 210841 3295.69 175079 2861.97 18 State Bank of Mysore 5052 118.62 4919 96.69 19 State Bank of Patiala 533 12.60 499 11.51 20 State Bank of Travancore 17064 354.41 13790 241.11 21 Syndicate Bank 32657 538.82 27601 469.14 22 UCO Bank 17882 320.70 14919 280.72 23 Union Bank of India 34769 533.98 29229 470.62 24 United Bank of India 1277 29.21 1131 25.15 25 Vijaya Bank 6046 98.18 5056 84.36 26 IDBI 1480 30.95 1396 28.78 Total 1032890 16145.75 864749 13911.58

118

STATE LEVEL BANKERS' COMMITTEE, TAMIL NADU CONVENOR : INDIAN OVERSEAS BANK

PROGRESS REPORT ON EDUCATIONAL LOAN AS ON 30.06.2013 (Rs in Crore) Position as on Target for 2013-14 Sl. 30.06.2013 Bank No No.of Amount No. of Amount A/Cs O/S A/Cs O/S B Private Sector Bank 1 Axis Bank Ltd. 556 7.97 485 7.09 2 Catholic Syrian Bank Ltd. 1342 22.60 1197 19.31 3 City Union Bank Ltd. 9335 137.96 7831 120.19 4 Dhanalakshmi Bank Ltd. 509 7.86 430 6.83 5 Federal Bank Ltd. 1546 22.00 1318 19.49 6 HDFC Bank Ltd. 1244 21.73 1035 16.41 7 ICICI Bank Ltd. 1621 9.73 1657 9.76 8 Indus Ind Bank Ltd. 58 0.65 52 0.59 9 ING Vysya Bank 432 5.75 377 4.82 10 Jammu & Kashmir Bank Ltd. 84 0.86 70 0.75 11 Karnataka Bank Ltd. 1127 26.72 934 21.17 12 Karur Vysya Bank Ltd. 8702 121.46 7400 108.96 13 Kotak Mahindra Bank Ltd. 1 0.22 1 0.18 14 Lakshmi Vilas Bank Ltd. 7631 98.23 6429 83.21 15 South Indian Bank Ltd. 3116 35.39 6237 68.20 16 Tamilnad Mercantile Bank 11430 151.92 9492 131.08 Sub Total (B) 48733 671.05 44945 618.04

C Regional Rural Banks 1 Pandiyan Grama Bank 1692 20.48 1394 16.98 2 Pallavan Grama Bank 773 10.73 636 8.92 Sub Total ( C ) 2465 31.21 2030 25.90

D Cooperative Banks 1472 3.07 1218 2.28 Sub Total (D) 1472 3.07 1218 2.28

GRAND TOTAL(A+B+C+D) 1085560 16851.08 912942 14557.80

119

AGENDA No: 15 135th SLBC

Review of Performance of Educational Loans for the quarter ended June 2013

A) The details of educational loans granted by member banks are furnished in the annexure.

As per the reports received, 28788 loans to the tune of Rs.360.04 crores have been granted during April 2013 to June 2013 of which Engineering/Medical account for 19676 loans amounting to Rs.213.95 Cr, 787 loans for study Abroad amounting to Rs.72.46 Cr and 8325 loans to Others, to the tune of Rs.73.62 Cr.

Out of 28788 Educational loans granted to the tune of Rs. 360.04 crores, SC/ST, Minority Communities & Women accounts for 3827 loans amounting to Rs.52.96 Cr, 2788 loans amounting to Rs.46.05 Cr and 7590 loans to the tune of Rs.118.00 Cr respectively.

The following Banks who have not furnished the data on Educational Loans as of June 2013 are requested to submit the same immediately.

Sl. Sl. Name of the Bank No. Name of the Bank No. 1 SBBJ 2 HDFC Bank Ltd

Government of India, Ministry of Finance has advised an outstanding target of ` 16851.08 crore as on 31.03.2014 for educational loans in Tamil Nadu.

Bank-wise target for no. of loans and amount outstanding has already been advised to all member banks.

All the member banks are requested to achieve educational loan target before March, 2014.

120

B) As per the details received from the Member Banks the status of loan applications received / sanctioned / rejected / pending are as under. Bank- wise data is enclosed in the annexure 2.

(Amount in Lacs) Loan Loan Loan Applications Education Loans Applications Applications Received Sanctioned Rejected Pending No. Amount No. Amount No. Amount No. Amount 30711 43518.78 28788 36003.76 750 2525.65 1173 4989.37

Member Banks are requested to expedite disposal of the pending loan applications.

121

122

123

AGENDA No:16 135th SLBC

SWARNA JAYANTI SHAHARI ROZGAR YOJANA (SJSRY)

SJSRY Programme consists of two special schemes namely (i) Urban Self- Employment Programme (USEP) and (ii) Urban Women Self-Help Programme (UWSP).

The progress made under SJSRY for the programme year 2012-13 as on 31.07.2013 is furnished below: (Amount Rs.in Lacs) SJSRY- SJSRY- NO. PARTICULARS TOTAL USEP UWSP 1 No. of Applications sent to Banks 13640 2803 16443 2 No. of Applications sanctioned 10534 2292 12826 4 No. of Applications Pending 3106 511 3617 5 Subsidy allotted 1462.72 1206.44 2657.96 6 Subsidy utilized 788.95 736.24 1525.19 7 Subsidy pending 673.77 470.20 1143.97 8 % of subsidy utilization 54 61 57

Subsidy utilization level for the programme year 2012-13 as on 31.07.2013 so far is 54% & 61% under USEP and UWSP scheme respectively. Member Banks are advised to speed up the sanction / disposal of the pending loan applications and ensure 100% utilization of the subsidy allotted under SJSRY.

124

AGENDA NO:17 135th SLBC

Interest Subsidy for Housing the Urban Poor (ISHUP)

As per the information given by Tamil Nadu Housing Board, the target is 2 lac beneficiaries against which No. of applications received is 72301. Of these, 55712 applications were sent to Banks and 4623 loans have been sanctioned. 16890 applications were returned by Banks.

District-wise and Bank-wise details of applications as on 30.06.2013 is furnished as detailed below:-

Annexure 1 – Progress Report on ISHUP Annexure 2 – Details of applications sent to Banks Annexure 3 – Valid applications Received Annexure 4 – Details of Loan Sanctioned by Banks

125

126

127

128

129

Agenda No: 18 135th SLBC

Bank Finance under Housing Scheme:

As per the feed- back received from member banks, disbursement to the tune of Rs. 1203.12 crores has been made during the quarter ended June 2013. The Bank wise disbursement details for the quarter ended June 2013 is furnished in the Annexure. It may be noted that the following 3 Banks have not submitted any data as a result of which the aggregate disbursement might have been understated. These banks are requested to submit the data immediately.

SBBJ Corporation Bank Kotak Mahindra Bank

Break-up of the portfolio on the basis of loan size is as follows:- (Amount Rs.in Lakhs)

Disbursement made during the quarter ended June 2013 (April’13 to June’13)

Limit above Rs.5 Limit above Rs.10 Limit above Limit Upto Rs.5 lacs - upto Rs.10 Lacs - upto Rs.15 Rs.15 Lacs - upto Total Lacs Lacs Lacs Rs.25 Lacs

No. Amount No. Amount No. Amount No. Amount No. Amount

6469 11310.49 4962 28945.06 3481 28291.79 4152 51764.35 19064 120311.69

130

BANK FINANCE UNDER HOUSING SCHEME – DIRECT HOUSING FINANCE FOR THE QUARTER ENDED JUNE 2013

(Amount Rs in Lacs)

Disbursement made during the quarter ended Sl. Name of the Bank June 2013 No. ( April 2013 to June 2013) No. Amount 1 Allahabad Bank 70 904.76 2 Andhra Bank 158 1653.61 3 Bank of Baroda 213 1809.04 4 Bank of India 643 5379.01 5 Bank of Maharashtra 10 54.00 6 Canara Bank 2099 13614.79 7 Central Bank of India 308 2417.16 8 Corporation Bank * 0 0.00 9 Dena Bank 35 324.00 10 Indian Bank 3029 22514.08 11 Indian Overseas Bank 887 5983.00 12 Oriental Bank of Commerce 95 1014.85 13 Punjab & Sind Bank 27 235.91 14 Punjab National Bank 110 914.57 15 Syndicate Bank 552 3568.00 16 UCO Bank 143 1644.90 17 Union Bank of India 357 1882.78 18 United Bank of India 58 810.39 19 Vijaya Bank 207 858.83 20 Axis Bank Ltd.*** 0 0.00 21 Catholic Syrian Bank 11 203.05 22 City Union Bank Ltd. 541 1728.16 23 Dhanalakshmi Bank Ltd. 32 353.26 24 Federal Bank Ltd 293 2636.92 25 HDFC Bank Ltd. 356 346.43

131

Disbursement made during the quarter ended Sl. Name of the Bank June 2013 No. ( April 2013 to June 2013) No. Amount 26 ICICI Bank Ltd. 632 4778.00 27 IDBI Bank Ltd. 293 1456.35 28 Indus Ind Bank Ltd.*** 0 0.00 29 ING Vysya Bank Ltd. 11 6.14 30 Jammu & Kashmir Bank Ltd. 6 41.50 31 Karnataka Bank Ltd., 70 611.85 32 Karur Vysya Bank Ltd. 236 1475.40 33 Kotak Mahindra Ltd * 0 0.00 34 Lakshmi Vilas Bank Ltd. 60 457.64 35 South Indian Bank Ltd. 548 2092.00 36 Tamilnadu Mercantile Bank 421 3759.25 37 *** 0 0.00 38 Pandyan Grama Bank 7 73.50 39 Pallavan Grama Bank 23 136.43 40 State Bank of Bikaner & Jaipur * 0 0.00 41 State Bank of Hyderabad*** 0 0.00 42 State Bank of India 6223 32129.00 43 State Bank of Mysore 63 496.21 44 State Bank of Patiala 44 481.92 45 State Bank of Travancore 193 1465.00 GRAND TOTAL 19064 120311.69

*Data not received for the quarter ended June 2013

*** Banks have reported “Nil” data

132

AGENDA No:19 135th SLBC

GOLDEN JUBILEE RURAL HOUSING FINANCE SCHEME (GJRHFS)

As per the feedback received from the member banks, 429 loans amounting to Rs.2705.80 lacs have been disbursed under Golden Jubilee Rural Housing Finance Scheme during the quarter ended June 2013 as shown below:

(Amount in Rs. Lacs) Scheduled Scheduled Castes Tribes Others Total Particulars No. Amt. No. Amt. No. Amt. No. Amt. Total Loans disbursed during the Quarter 49 238.65 15 71.95 365 2395.2 429 2705.80

Member Banks are requested to furnish the details of housing loans under Golden Jubilee Rural Housing Finance Scheme on quarterly basis to SLBC.

133

AGENDA No.20 135th SLBC

Revival of the stalled Residential Projects

National Housing Bank advised the Convenors of SLBCs to collect a list of stalled residential projects financed by banks, which have got stalled for various reasons, including for want of further lending support from the banks. SLBC circulated a copy of NHB’s letter to all the member banks vide letter dated 01.02.2013 and advised all the member banks to submit a list of such semi-constructed projects with their location details (approvals received / not received) together with remarks about non completion/semi completion etc to with a copy to SLBC.

SLBC had also sent a reminder on 18.04.2013 requesting all the banks to submit the details by 11.05.2013 to enable us to place an agenda. Member banks were also reminded several times over phone. A separate agenda point was also placed in the 134th meeting held on 18.06.2013. Despite the above attempts, only the following banks have submitted the data to SLBC/NHB.

Indian Overseas Bank Indian Bank State Bank of India State Bank of Patiala UCO Bank Vijaya Bank Bank of India Dena Bank Andhra Bank Bank of Baroda Pandyan Grama Bank Karur Vysya Bank South Indian Bank Federal Bank

Member banks are advised to submit the data immediately to National Housing Bank with a copy to SLBC. Member banks are also advised to send a NIL report if they have nothing to report.

134

AGENDA No: 21 135th SLBC

CREDIT FLOW TO WOMEN

Government of India and Reserve Bank of India have advised banks to strengthen the credit flow to women and ensure that their share in Bank Credit is increased to the desired level of 5% or more.

The details of performance of the Banks in Tamil Nadu under credit flow to women entrepreneurs as of June 2013 are furnished below:

(Amount in Rs. Crores)

Disbursement made during the Quarter Outstanding position as ended June 2013 of June 2013 PROGRAMME Accounts Amount Accounts Amount 1 SGSY 360 4.33 146993 696.43 2 PMRY */PMEGP 7 0.18 15928 146.60 3 SJSRY 320 2.47 11083 44.24 4 DRI 2517 5.36 25473 39.44 5 MSE 4635 146.17 163786 3351.08 6 OTHERS 224793 2069.58 6790258 33853.23 TOTAL 232632 2228.09 7153521 38131.02

* PMRY was discontinued w.e.f 01.04.2008

At the level of Rs.38131.02 crores, advances to women constitute 7.16% of total Bank credit as against the national norm of 5%.

135

AGENDA No:22 135th SLBC

CREDIT FLOW TO MINORITY COMMUNITIES

As per the feedback received from the member banks, 171303 Loans amounting to Rs.1861.67 crores were disbursed to Minority Communities during the quarter ended June 2013 as shown below:-

(Amount in Rs.Crores) Sl. Name of the Disbursement during the quarter ended No. Community JUNE 2013 All Banks Public Sector Banks

Account Amount Account Amount 1 Muslim 83388 948.81 50501 685.41 2 Christian 87394 906.03 49329 526.60 3 Sikh 183 3.94 125 3.43 4 Zorastrian 122 1.03 110 0.87 5 Neo Buddist 216 1.86 108 0.76 Total 171303 1861.67 100173 1217.07

Total outstanding advances to Minority Communities by all banks stood at Rs.22275.03 crores as of June 2013 is furnished below.

(Amount in Rs. Crores) Sl. Name of the Outstanding Position as of No. Community JUNE 2013 All Banks Public Sector Banks Account Amount Account Amount 1 Muslim 1054203 10199.40 698984 7773.75 2 Christian 1308395 11947.28 697355 8902.85 3 Sikh 1726 26.37 1479 21.63 4 Zorastrian 6487 76.24 6403 75.03 5 Neo Buddist 2761 25.74 1447 14.44 Total 2373572 22275.03 1405668 16787.70

136

The bank wise outstanding position on specified minority communities as of June 2013 is enclosed as an annexure (Public Sector Banks).

Ministry of Finance, Govt. of India has advised that the share of credit flow to minority communities of Public Sector Banks (PSB) should be 15% of the Priority Sector Advances.

All the Public Sector Banks requested to increase their Minority Sector Lending outstanding to achieve the target fixed by Ministry of Finance.

137

OUTSTANDING ADVANCES TO SPECIFIED MINORITY COMMUNITIES BY PUBLIC SECTOR BANKS – JUNE 2013

(Amount Rs.in Crores)

PRIORITY O/s. of SECTOR advances to ADVANCES Minority % S. AS ON Communities NO NAME OF THE BANK 30.06.2013 30.06.2013 1 STATE BANK OF BIKANER & JAIPUR 149.56 8.87 5.93 2 STATE BANK OF HYDERABAD 438.33 84.85 19.36 3 STATE BANK OF INDIA 32181.81 3700.68 11.50 4 STATE BANK OF MYSORE 780.61 57.59 7.38 5 STATE BANK OF PATIALA 435.98 13.39 3.07 6 STATE BANK OF TRAVANCORE 2880.75 993.19 34.48 7 ALLAHABAD BANK 863.70 36.50 4.23 8 ANDHRA BANK 1278.71 136.12 10.65 9 BANK OF BARODA 4218.93 199.05 4.72 10 BANK OF INDIA 4696.31 436.34 9.29 11 BANK OF MAHARASHTRA 712.66 36.14 5.07 12 CANARA BANK 21954.35 1385.15 6.31 13 CENTRAL BANK OF INDIA 5457.26 1089.72 19.97 14 CORPORATION BANK 6628.08 252.98 3.82 15 DENA BANK 639.55 68.44 10.70 16 IDBI BANK LTD. 3147.93 128.11 4.07 17 INDIAN BANK 22937.86 2632.32 11.48 18 INDIAN OVERSEAS BANK 26334.99 3760.28 14.28 19 ORIENTAL BANK OF COMMERCE 1255.37 88.74 7.07 20 PUNJAB & SIND BANK 2577.20 186.17 7.22 21 PUNJAB NATIONAL BANK 465.52 2.46 0.53 22 SYNDICATE BANK 4802.38 564.61 11.76 23 UCO BANK 2792.52 374.85 13.42 24 UNION BANK OF INDIA 4977.01 356.49 7.16 25 UNITED BANK OF INDIA 395.23 0.51 0.13 26 VIJAYA BANK 1853.90 194.15 10.47 TOTAL PUBLIC SECTOR BANKS 154856.49 16787.70 10.84

138

AGENDA No:23 135th SLBC

KISAN CREDIT CARD SCHEME (KCC)

Kisan Credit Card Scheme introduced in August 1998 has since stabilized with major share of crop loans being routed through this scheme. Reserve Bank of India has advised that investment credit requirements of farmers viz. allied and nonfarm activities may also be covered under the Scheme. All KCC Holders have to be covered under Personal Accident Insurance Scheme (PAIS).

Reserve Bank of India has issued guidelines on the revised Kisan Credit Card Scheme to all the Banks vide their letter dated 11.05.2012. Progress in issuance of ATM enabled revised Kisan Credit Card is very slow. Henceforth, all member banks are requested to issue ATM enabled Kisan Credit Card and furnish the progress report on monthly basis to SLBC in the following format.

Name of the Bank : Month :

Of which Total No.of Amount of Cumulative No. Cumulative Number of ATM KCC issued Loan Disbursed ATM enabled Amount of loan enabled KCCs during the during the KCCs issued Disbursed issued during Month month (Rs in Lacs) the month (Rs in Lacs)

As per the progress report submitted by Member Banks, during the period from April 2013 to June 2013, Banks in Tamil Nadu have issued 610492 Kisan Credit Cards to the tune of Rs.4632.55 crores. The details are furnished in the annexure.

139

CROP INSURANCE

State Level Co-ordination Committee on Crop Insurance Scheme (SLCCCI) has permitted to implement the National Agricultural Insurance Scheme in all the districts and as pilot scheme the Modifies National Agricultural Insurance Scheme in three districts (Cuddalore, Sivaganga & Namakkal) during 2013-14 form 1st April 2013 onwards.

SLCCCI also decided to continue to implement the Coconut Palm Insurance Scheme during 2013-14 in all the districts as per the Administrative approval of GOI.

All the member banks are advised to ensure 100% coverage of crop loans sanctioned to notified crops in notified areas under crop insurance scheme.

Further, we also request AIC to provide data relating to coverage of crop loans under crop insurance to SLBC to review the progress.

140

141

AGENDA No: 24 135th SLBC

SELF HELP GROUPS (SHGs) /NRLM:

As per the data provided by TNCDW, credit disbursement to SHGs by banks amounts to Rs.201.17 Crores as on 30.06.2013 against the yearly (2013-14) target of Rs 6000.00 crores.

The District wise performance to Self Help Groups under Mathi (through Tamil Nadu Women Development Corporation Ltd.), Pudhu Vazhvu Project (PVP) and Non-Mathi (direct lending) as on 30.06.2013 is furnished in Annexure 1 (data provided by TNCDW).

The member banks are requested to speed up the sanction /dispose all pending applications immediately.

142

143

AGENDA No: 25 135th SLBC

Progress Report on Economic Development Schemes implemented by TAHDCO

The details of performance under various economic development schemes implemented by TAHDCO during the financial year 2013-14 as of June 2013 are furnished in the annexure.

So far banks have sanctioned 3214 loans against the yearly target of 19420 under the economic development scheme.

Government of Tamil Nadu have issued GO. No 45 dated 09.07.2013 on action plan and comprehensive guidelines for implementation of various TAHDCO schemes under Special Central Financial Assistance for 2013-14. A copy of the GO is enclosed as annexure

The Member Banks are requested to actively involve themselves in the implementation of these schemes and dispose all the pending applications immediately.

144

145

146

147

148

149

150

151

152

153

154

155

156

157

158

159

160

161

162

163

164

165

166

167

168

169

170

171

172

AGENDA No: 26 135th SLBC

REVIEW OF NPA ACCOUNTS IN PRIORITY SECTOR LENDING – MARCH 2013

The position of NPA under categories of Priority Sector Advances as of March 2013 is furnished below.

NPA POSITION AS ON MARCH 2013

S No. Particulars (Rs in Crore) % of NPA

1 NPA in Housing loans 639.60 2.58 2 NPA in Education loans 1282.07 9.13 3 NPA in Agriculture Loans 3312.81 3.37 4 NPA in Loans to MSE 3203.09 4.77

5 NPA in Micro Credit 364.26 8.90 NPA in over all Priority Sector 6 8801.83 4.23 Lending NPA in Loans under Weaker Section 7 1066.62 1.92 of Priority Sector Lending

It is observed that NPA position under educational loan has increased over December 2012. DCCs are also requested to review NPA position every quarter and arrange recovery drives with the help of District Administration for Government sponsored schemes.

The State Government is requested to consider invocation of Revenue Recovery Act to improve recovery, as done in the neighbouring State of Kerala.

173

174

AGENDA No: 27 135th SLBC

1. Success story of HDFC Bank

1) Kalavathi, one of the members of Guru Thatchanamoorthy Mahalir Suya Uthavi Kuzhu, Thiruvarur, Tamil Nadu is an expert in stitching various kinds of garments. With the Viable Finance she purchased a sewing machine. Bank also facilitated to get work orders for stitching school uniforms from Social Welfare Department. Post this linkage, she now earns a monthly income of Rs.8000/-.

2) 14 clients from 8 SHG’s in Kovilpatti, Tamil Nadu underwent a handicraft training (making artificial jewellery, soft toys etc.) conducted by Khadi Bhavan. Post completion of the training, clients were provided with membership card and they were also certified as trainers for future training programs. In addition to this, Khadi Bhavan will also purchase the goods produced by them.

3) Aprose Begum from Trichy, Tamil Nadu runs a soup shop. She availed the Viable Finance from our bank to purchase a mobile cart with the help of which she and her son is able to cover more areas to sell soups. Post credit utilization, her monthly income has increased by 20%. Aprose said: “In HDFC Bank, loan processing is very quick with least documentation. I not only got loan, but also a savings account along with an ATM card with the help of which I can withdraw money anytime. This is the first time that I am using ATM card and I feel very proud about owning it. Thanks to HDFC Bank for making me feel independent”.

4) Two groups namely Sri Kaleeshwariamman and Sri Amman Self Help groups from Kumbakonam, Tamil Nadu underwent a veterinary training for their milch animals. During the training, doctors emphasized on the importance of proper animal care and also on the importance of insuring their milch animals which will help them during cattle theft or death. Post training, bank facilitated to get cattle insurance for 20 members from a government insurance company. Rasathi, one of the group members said: "During the training, bank not only emphasized on the importance of cattle insurance but also provided us with the same on the spot. We are happy that our cattle, which are our only source of income, are insured. Thanks to HDFC Bank".

175

5) Suguna, our SLI (Sustainable Livelihood Initiative) client from Dharmapuri, Tamil Nadu runs a small idly shop. The timely credit support from the bank helped her to purchase sufficient stock of food materials which helped her to expand her business and earn extra income.

6) Ezhilarasi from Thiruvarur, Tamil Nadu runs a fruit shop. Due to low working capital, Ezhilarasi used to earn minimal income. SLI credit support helped her to purchase increased varieties of fruits thereby in-creasing her customer base and income.

7) Around 6 groups with a total number of 95 members are engaged in dairy activity in Tiruvannamalai, Tamil Nadu. These members practised only traditional methods of dairy activities. With our training intervention, clients were trained on modern dairy practices including the type of fodder, disease prevention methods and techniques for increasing the production of milk were taught to the clients. Post our training, the groups started implementing the modern methodologies which is not only providing them with better income but also educated and empowered them economically.

Training on protection of indigenous cattle breeds: Training on protection of traditional cattle breeds was organized by HDFC Bank in association with a private animal care trust in Erode, Tamil Nadu which was attended by our SLI clients. During the training, clients were oriented on the importance of rearing indigenous cattle breeds rather than foreign one, type of fodder which would increase quality of milk etc were discussed during the training.

Training on designing saree: Around 194 clients were trained on designing saree with stone work from Namakkal, Tamil Nadu. Post training, some clients showed interest in taking up this activity as designer sarees are in good demand.

176

2. SUCCESS STORY FROM PANDYAN GRAMA BANK

SOLAR LIGHTING IN DHANUSHKODI

Solar Lights financed by Pandyan Grama Bank have brightened the prospects of the fisherfolk of Dhanushkodi.

Without electricity facility, the fishermen colonies of Dhanushkodi were in the dark during night times since the Tsunami of 1964. With a tough sea life, their life during night times was still tougher amid the roaring sea and the surrounding darkness. When our bank came to understand their problems without electricity, took all the initiatives to bring light to their colonies. As a first step, 9 families have been assisted with solar electricity panel with a power to electrify two lights, one night lamp and one mobile charger in coordination with Sellco Solar Pvt. Ltd. for installation. Each panel costs Rs. 12850 / Rs.16100, breakup details are furnished below.

For 3 members For 6 members 7 Watts panel 15 Watts panel Bank Loan Rs. 10280 Rs. 12880 With NABARD’s backend subsidy Rs. 1944 Rs. 4570 Members contribution Rs. 2570 Rs. 3220 Total Rs. 12850 Rs. 16100

The fishermen are now happy that they can mend their fishing nets and undertake all the preparative works during night times in the light of Solar Lamps and can utilize their day time fully for fishing in the sea. Their income has increased as their fish catch has increased due to increased fishing time. They can save the high expenditure on kerosene for the kerosene lamps hitherto used in nights.

Mr.Mari, a member of Santhanamariamman Men SHG and one of the 9 beneficiaries says that the amount thus saved has been repaid in the loan accounts. He says that their 48 years’ struggle has come to an end with the rescue from PGB. They are also satisfied that they need not suffer in darkness as before.

Bank’s assistance for Solar Lighting started with illuminating the Kanikudiyiruppu, the tribal hamlet of Western Ghats and is still continuing with assisting 203 units so far. Be it in the hills or in the plains or in the coasts, Pandyan Grama Bank is always with the needy people to bring lights in their lives.

177