SLBC of Telangana 4Th Meeting of SLBC State Bank of Hyderabad

SLBC of Telangana 4th Meeting of SLBC State Bank of Hyderabad

4th Meeting of SLBC of Telangana

Conference Hall : ‘C’ Block 4th Floor Telangana Secretariat Hyderabad:

th AgendaDt: 17& Background December 2014Papers At 4.00 p.m.

STATE LEVEL BANKERS’ COMMITTEE TELANGANA

Convener

State Bank of Hyderabad Head Office : Hyderabad

4th SLBC Meeting Agenda – Index

1 SLBC of Telangana 4th Meeting of SLBC State Bank of Hyderabad

1. Adoption of Minutes

S.No. Particulars Page No. 1 Adoption of minutes of 2nd SLBC meeting held on 08/08/2014 & 1st Steering 9 Committee on PMJDY; PMJDY Launching Meeting on 28/08/2014 & adoption of other meetings of SLBC held after 08/08/2014

2. Banking Statistics

S.No. Particulars Page No. 1 Banking at a Glance 9 2 Banking Key Indicators 10 3 Statement of Priority Sector Advances 10

3. Achievement of Annual Credit Plan 2014-15

S.No. Particulars Page No. 1 Achievement as on 30.06.2014 11 2 Annual Credit Plan achievement – Last three year 11

4. Action Points of earlier SLBC / Steering Committee Meetings – Action Taken Report

S.No. Particulars Page No. 1 Allotment of site to RSETIs 12 2 Opening of branches at Utnoor (Adilabad District) & Dacharam 12 (Karimnagar District)

5. Agriculture Sector

S.No. Particulars Page No. 1 Progress in lending short term production loans 13 2 Implementation of Union Budget speech 2014-15 – Interest Subvention 13 Scheme for Short Term Crop Loans during the year 2014-15 3 Vaddi Leni Runalu and Pavala Vaddi Scheme on crop loans from Rabi 13 2013-14: 4 Farm Mechanization 13 5 Reschedulement of loans in Telangana 14 6 Targets for financing Joint Liability Groups (JLGs) 15 7 National Crop Insurance Programme (NCIP) – Extension of cut-off date 16 during Kharif 2014 for MNAIS & WBCIS in Telangana 8 NABARD – Acceptance of Government subsidy claims under Animal 16 Husbandry Schemes – Poultry Venture Capital Fund (PVCF), Integrated Development of Small Ruminants and Rabbits (IDSRR) and Pig

Development 9 Over-dues / NPAs under Agriculture Sector as on 30/06/2014 17 10 Changes in Self-Employment Programme (SEP) component of National 18 Urban Livelihoods Mission (NULM)

6. Micro, Small & Medium Enterprises (MSME) Sector

S.No. Particulars Page No. 1 Position of Lending under MSME sector 19 2 Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTSME) 19 Scheme Progress Made by banks. 3 Rehabilitation of Sick Micro and Small Enterprises 20 4 Overdue / NPAs under MSME sector 21

7. Housing Loans

S.No. Particulars Page No. 1 Position of housing Loans as on 30/06/2014 21 2 Pending reimbursement of Government share of EMIs as per GO MS No. 42 21 by the State Housing Corporation under RGK and Vambay schemes. 3 Over dues / NPAs under housing loans 30/06/2014 22

8. Education loans

S.No. Particulars Page No. 1 Position of Education loans as on 30/06/2014 23 2 Allocation of targets for education loans for 2014-15 23 3 Insisting on Collaterals and Guarantees while sanctioning the education 23 loans 4 Central Scheme to provide Interest Subsidy (CSIS) 23 5 Padho Pardesh – Scheme for Interest subsidy on Education Loans for 24 Overseas studies for the minorities 6 Overdue / NPAs under Education Loans as on 30/06/2014 25

9. Export Credit

S.No. Particulars Page No. 1 Position of Export Credit in Telangana 25 10. Credit flow to Minority Communities

S.No. Particulars Page No. 1 Credit flow to Minority Communities 25

11. Credit flow to Weaker Sectors

S.No. Particulars Page No. 1 Credit flow to Weaker Sections 25

12. Credit flow to SC/STs

S.No. Particulars Page No. 1 Credit flow to SC/STs 26

13. Credit flow to Women beneficiaries

S.No. Particulars Page No. 1 Credit flow to Women beneficiaries 26

14. Government Sponsored Schemes – Government of India

S.No. Particulars Page No. 1 PMEGP / NRLM 27 2 Implementation of Scheme of Interest Subsidy Eligibility Certificate (SEC) 27 Scheme: 3 National Rural Livelihood Mission (NRLM) 28 4 Housing Scheme – RRY 28 5 Handloom Weavers 29 6 Credit under DRI 29 7 Central Sector Scheme of Self Employment Scheme for Rehabilitation of 30 Manual Scavengers (SRMS) – Revision of the scheme 8 Small Farmers’ Agri Consortium (SFAC) 30

15. Government sponsored Schemes – Government of Telangana

S.No. Particulars Page No. 1 SC Corporation schemes 32 2 Rajiv Yuva Shakti (RYS) Scheme 32 3 Washermen Co.op Society 33 4 Kummari / Salivahana Co.op Society 34 5 Krishna Balija / Poosala Co.op Society 34 6 Sagara (Uppara) co.op society 35

7 Viswabrahmin co.op society 36 8 Weaver Credit Card Scheme 36 9 Waddera co.op society 37 10 TS Valmiki / Boya co.op society 38 11 Medara co.op society 38 12 Bhattraja co.op society 39 13 Nayee Brahmins co.op society 40

16. Financial Inclusion

S.No. Particulars Page No. 1 Providing Banking channels / services: 42 a. Providing banking services in all villages with above 2000 42 population - progress as on 30.06.2014 b. Implementation of FIP in below 2000 population – Progress as on 42 30.06.2014 c. Branch Expansion Plan 42 d. Installation of ATMs 42 e. Issuance of Debit Cards 43 f. National Mission on Financial Inclusion Plan – Pradhan Mantri Jan- 43 dhan Yojana (PMJDY) g. Unbanked mandals / Mandals with no bank branches in Mandal Head 44 quarters h. Opening of branches in Tribal areas 44 2 Credit Plus activities a. Financial Literacy Centres 45 b. Rural Self employment Training Institutes 47 c. TSLBC Call Centre 48 3. Others 48 Geographical Information system (GIS) 48

17. Lead Bank Scheme

S.No. Particulars Page No. 1 Implementation of High Level Committee Recommendations 49 2 Conducting of Meetings under Lead Bank Scheme 49 3 Modified Information System under Lead Bank Scheme – Guidelines of RBI 50 4 Attendance in JMLBC / DLRC / DCC meetings 51 5 Information to be submitted quarterly by Banks and LDMs 51 6 Communicating the Decisions taken at SLBC level to the branches by the 51 Controlling Authorities

18. Overdue / NPAs position

S.No. Particulars Page No. 1 Overdue / NPAs position as on 30.06.2014 under various sectors 52

19. Regional Rural Banks (RRBs)

S.No. Particulars Page No. 1 Performance of Regional Rural Banks on important parameters 53

20. Other Items

S.No. Particulars Page No. 1 Inclusion of Members in SLBC meetings 55

21. Circulars issued by Reserve Bank of India

S.No. Particulars Page No. 1 Circulars issued by RBI 55 2 Circulars / letters issued by NABARD 56

22. Annexures

S.No. Particulars – Position as on 30/06/2014 Page No. 1 Bank-wise number of branches 57 2 District-wise number of branches 59 3 Bank-wise Deposits; Advances & CD Ratio 60 4 District-wise Deposits; Advances and CD Ratio 62 5 Bank-wise Priority Sector Advances 63 6 District-wise Priority Sector Advances 65 7 Bank-wise Agriculture Advances (Direct & Indirect) 66 8 District-wise Agriculture Advances (Direct & Indirect) 68 9 Annual Credit Plan 2014-15 : Bank-wise achievement (Agriculture) 69 10 Annual Credit Plan 2014-15 : Bank-wise achievement (MSE & Priority 71 Sector Advances) 11 District-wise achievement of Annual Credit Plan 2014-15 (Agriculture) 73 12 District-wise achievement of Annual Credit Plan 2014-15 (MSE & Priority 74 Sector Advances) 13 Bank-wise Micro; Small & Medium Enterprises (MSME) advances 75 14 Bank-wise Housing Loans 79 15 Bank-wise Education Loans 81 16 Bank-wise Education Loans targets allocated in the State of Telangana 83 17 Bank-wise data on Export Credit 85 18 Bank-wise Advances to Minority Communities 87

19 Bank-wise Advances to Weaker Sections 89 20 Bank-wise Advances to SC / ST borrowers 91 21 Bank-wise Advances to Women 93 22 Bank-wise Advances under DRI scheme 95 23 Bank-wise SHG Bank-linkages 97 24 Short Term Crop Production Loans : Bank-wise position on overdue / NPAs 99 25 Agri. Term Loans including Allied Activities : Bank-wise position on 101 overdue / NPAs 26 Agri. Term Loans including Allied – Indirect Loans : Bank-wise position on 103 overdue / NPAs 27 Total Agriculture advances : Bank-wise position on overdue / NPAs 105 28 Micro & Small Enterprises : Bank-wise position on overdue / NPAs 107 29 ‘Others’ under Priority Sector Advances : Bank-wise position on overdue / 109 NPAs 30 Total Priority Sector Advances : Bank-wise position on overdue / NPAs 111 31 Non-Priority Sector Advances : Bank-wise position on overdue / NPAs 113 32 Total Advances : Bank-wise position on overdue / NPAs 115 33 Educational Loans : Bank-wise position on overdue / NPAs 117 34 Housing Loans : Bank-wise position on overdue / NPAs 119 35 SHGs Bank Linkage : Bank-wise position on overdue / NPAs 121 36 Vaddi leni Runalu – GO of Govt. of Telangana 123 37 Guidelines for implementation of Farm Mechanization 124 38 RBI letter – Reschedulement of Crop Loans 151 39 Bank-wise targets of JLGs (Joint Liability Groups) 154 40 National Agricultural Insurance Scheme – GO of Govt. of Telangana 155 41 Acceptance of Government subsidy claims under Animal Husbandry 179 Schemes NABARD letter 42 RBI Circular on Education Loan 180 43 Scheme guidelines of Padho Pardesh Scheme of interest subsidy on 187 Educational Loans 44 FIP <2000 District-wise and Bank-wise position 201 45 PMJDY – Progress report 203 46 List of Financial Literacy Centres 205 47 FLC Report for the quarter ended 30/06/2014 207 48 Minutes of 1st SLBC Meeting 211 49 Minutes of 2nd SLBC Meeting 214 50 Minutes of 3rd SLBC Meeting (PMJDY) 219 51 Minutes of 1st Steering Committee Meeting 222 52 Minutes of 1st SLIIC Committee Meeting 229

Agenda 1:

Adoption of the minutes of 1 st SLBC meeting held on 04/06/2014

The minutes of 2nd SLBC meeting on 8th August 2014; 1st Steering Committee meeting and 3rd SLBC Meeting (launching of PMJDY) were circulated to the members of SLBC, LDMs and Government Departments concerned. These minutes may be taken as approved by the house as no amendments / changes were received by SLBC of Telangana.

Agenda 2:

1. Banking at a glance in Telangana as on 30/06/2014

Rural Semi-urban Urban Metro Total 1595 1066 608 1329 4598

(Rs. In cr) S.No. Particulars Amount 1 Total Deposits 286891.12 2 Total Advances 318400.20 3 Credit Deposits Ratio (%) (RBI Norm 60%) 110.98 4 Total Priority Sector Advances 105102.84

5 % of Priority Sector Advances to total Advances (RBI Norm 40%) 33.01 Of which a Agriculture advances 50463.83 % of Agri. Advances to Total Advances 15.85 b Non-farm Sector / Micro & Small Enterprises 30050.41 % to Total Advances 9.44 c Others' under Priority Sector Advances 24588.60 % to Total Advances 7.72 Of which i. Educational Loans 2422.80 ii. Housing Loans 16585.29 iii. SHGs 39.02 6 Advances Weaker Sections 28583.37 Advances to Women 17453.59 Advances to SC/ST 8702.44 Advances to Minorities (RBI Norm 15% on Priority Sector Adv. 12339.89

2. Banking Key Indicators of Telangana (Rs. In cr)

S.No. Particulars Mar'12 Mar'13 Mar'14 June'14 1 Number of Branches Rural 1296 1450 1584 1595 Semi-urban 839 955 1056 1066 Urban 648 662 595 608 Metro 1044 1115 1318 1329 Total 3827 4182 4553 4598 2 Deposits 219503 254728 285879 286891 Incremental Deposits (% of 35225 31151 1012 3 increase) (16.05%) (12.23%) (0.35%) 4 Advances 253497 301912 324964 318400 Incremental Advances (% of 48415 23052 -6564 increase) (19.09%) (7.63%) (-2.02) 4 CD Ratio (RBI Norm 60%) 115.49% 118.52% 113.67% 110.98%

3. Statement of Priority Sector Advances (Outstanding)

(Rs. In cr) S.No. Particulars Mar'12 Mar'13 Mar'14 June'14 1 Short Term Production Loans 13544 19704 25178 25481 Agri. Term Loans including 2 allied activities 22929 27140 24386 24982.83 3 Total Agriculture Advances 36473 46844 49564 50463.83

% of Agri. Advances to Total 4 Advances 14.39 15.52 15.25 15.85 Non-Farm Sector / Micro & 5 Small Enterprises 17391 22589 29301 30050.41 % of Non-Farm Sector / Micro & Small Enterprises to total 6 advances 6.86% 7.48% 9.01% 9.44% Others' under Priority Sector 7 Advances 23358 26957 23752 24588.60 % of ‘Other’ under Priority Sector advances to total 8 advances 9.21% 8.92% 7.31% 7.72% 9 Total Priority Sector Advances 77222 96390 102617 105102.84 % of Priority Sector Advances to 10 total advances 30.46% 31.92% 31.58% 33.01%

Note : Percentage calculated on total Advances due to non-availability of ANBC & Net Bank Credit.

Agenda: 3

Achievement of Annual Credit Plan 2014-15

1. Achievement as on 30/06/2014 (Rs. In cr)

Achievements % of Target (Disbursements S.No. Particulars achieve- 2014-15 01/04/14 to ment 30/06/14)

1 Short Term Production Loans Kharif 12389.7 4223.49 34.09 Rabi 6328.25 Total 18717.95 4223.49 22.56 2 Agriculture Term Loans 6238.48 2241.35 35.93 3 Allied to Agriculture 2277.16 1767.32 77.61 4 Total Agriculture 27233.59 8232.16 30.23 5 Micro &small Enterprises 6587.96 6024.03 91.44 Others' under priority Sector Adv. 6724.96 1557.97 23.17 Total Priority Sector Advances 40546.51 15814.16 39.00 Non-Priority Sector Advances 22501.11 20796.97 92.43 Total Credit Plan 63047.62 36611.13 58.07

2. Annual Credit Plan Achievements – Last three years:

2011.12 2012-13 2013.14 S.No Particulars Achieve- Achieve- Achieve- . Target Target Target ment ment ment (Combined State of Andhra Pradesh) Short Term 1 Production Loans 20753 24664 25504 36093 35549 37058 Agriculture Term 2 Loans 11124 10947 10150.00 13967 11468 12716 4 Total Agriculture 31877 35611 35654 50060 47017 49774 Micro &small 5 Enterprises 5069 4245 5593.00 6312 7000 9427 Others' under priority Sector Adv. 10165 7108 12205.00 9198 12939 5527 Total Priority Sector Advances 47111 46964 53452 65570 66956 64728

Agenda : 4

Action Points of earlier SLBC/Steering Committee Meetings—ATR

1. Allotment of site to RSETIs

 Land allotment has not been done for RSETIs sponsored by State Bank of Hyderabad at Khammam & Karimnagar. District Administration of Khammam and Karimnagar to expedite allotment of sites. RSETI sponsored by State Bank of India at Mahabubnagar has also not been provided the site. A representation to this affect was given to the District Administration for providing a piece of land near Jadcherla.  Andhra Bank has given a representation for approval to open RSETI at Siddipet in Medak district. The SLBC has already taken up the issue with State Administration for allotment of land to Andhra Bank.

2. Opening of branches at Utnoor town, Adilabad district and Dacharam village in Karimnagar District

 A letter addressed by Sri Gajjela Devraj, TRS State General Secretary is received through Reserve Bank of India requesting for banking facilities at Dacharam (and other Villages) of Karimnagar Dist. The SLBC has advised Lead District Manager of Karimnagar to keep it as an agenda item for discussion in the DCC meeting of Bankers.

 Similarly, a request received from Sri Pavan Kumar & others and other for opening of a 2nd bank branch in Utnoor town has also been sent to Lead District Manager, Adilabad to discuss in DCC meeting as an agenda item.

Agenda : 5:

Agriculture sector

1. Progress in lending short term production loans:

Against the Kharif Target of Rs.12389.70 crore for the Financial Year 2014-15, the disbursements during April-June Rs.4223.49 crore and achievement is 34.09%. There was slow progress due to delayed monsoons and the debt waiver scheme announced by State Government of Telangana in process.

2. Implementation of Union Budget speech 2014-15 –Interest Subvention Scheme for Short Term Crop Loans during the year 2014-15

In the Union Budget for the year 2014-15, Hon’ble Union Finance Minister announced that under the interest subvention scheme for short term crop loans, banks are extending loans to farmers at a concessional rate of 7%. The farmers get a further incentive of 3% for timely repayment. This scheme will continue in 2014-15

3. Vaddi Leni Runalu and Pavala Vaddi Scheme on crop loans from Rabi 2013-14:

Govt. of Andhra Pradesh (combined State) has issued memo copy of no. 652/FP.II/2014 dt. 21/04/2014 for continuation of VLR / Pavala Vaddi Scheme on crop loans fro Kharif 2013-

14. After formation of Telangana State, the Government of Telangana has agreed to continue the scheme for Rabi 2013-14 also vide lr no. Credit/12/2014 dt. 08/07/2014. Copy of the letter is enclosed as annexure 36. SLBC has circulated the same to all member banks and LDMs.

4. Farm Mechanisation:

The Government of Telangana vide its lr. no. FM(1) 200/14 dt. 13.10.2014 informed the details of its Farm Mechanisation Scheme 2014-15. The guidelines of the scheme and the Bankers role in implementation of the scheme are given in annexure 37.

5. Reschedulement of loans in Telangana

Reserve Bank of India vide its Lr No. RPCD.FSD.1764/5.10.04/2014-15 dated 7th August, 2014 addressed to Chief Secretary, Government of Telangana considering the request of the Government of Telangana, Executive Director of RBI advised as under.

RBI is agreeable to allow reschedulement of some farm loans. However, based on normative criteria: reschedulement is restricted to the three districts of Medak, Ranga Reddy and Adilabad and would cover loans extended by only Commercial Banks, Cooperative Banks and RRBs. Further, this would cover only short term production loans for allied activities. Additionally, the reschedulement would be subject to conditions as under:

 The following loans/ accounts are NOT eligible under the Crop loan Scheme for reschedulement.

a. Advances against pledge or hypothecation of agricultural produce other than standing crop b. Tied loans c. Closed crop loan accounts

 Reschedulement will be limited to a period of three years, comprising one year moratorium, and two years’ reschedulement  Banks will not forgo the right to recovery from farmers if the loan remains overdue after the period of three years has lapsed.

 The eligible amount for reschedulement would be limited to the amount of crop loan together with applicable interest which is disbursed between April and October, 2013 as of 31st March 2014 or Rs.1.00 lac per farmer, whichever is lower. Where the amount is paid by Government, it must be deposited in cash directly in the farmer’s account.  SLBC already circulated these guidelines to the controlling authorities of all banks and LDMs .

The letter of RBI is enclosed as annexure 38.

6. Target for financing of JLGs during the year 2014-15

NABARD on the captioned subject has informed that in view of the Union Budget announcement of provision of finance to 5 lac joint farming groups of “Bhoomi Heen Kisan”, it has been decided that at least 5 lac joint farming groups will be financed through JLG mode of financing during the current year. Accordingly district-wise targets are allocated to Telangana for the current year. This may be achieved through extension of fresh finance to the existing stock of JLGs and through promotion & financing of new Joint Farming Groups. Financing of JLGs for Non-Farm activities will continue, over and above the allotted target for Joint Farming group. Bank-wise targets are as per annexure 39.

Dist-wise targets are as under:

Sr.No Districts Target for DDMs Rural Branches Branch-wise target @10 JLG per branch

1 Adilabad 1000 129 1290

2 Karimnagar 1500 196 1960

3 Khammam 1500 153 1530

4 Mahabubnagar 1500 180 1800

5 Medak 1000 189 1890

6 Nalgonda 2000 172 1720

7 Nizamabad 1000 193 1930

8 Warangal 1500 166 1660

9 Ranga Reddy 500 201 2010

Total 11500 1579 15790

These targets shall be achieved by the banks by financing to the existing JLGs and promotion / financing of new Joint Farming Groups. Financing of JLGs for non-farm activities will continue, over and above the allocated targets for Joint Farming Groups.

7. National Crop Insurance Programme (NCIP) – Extension of cut-off date during Kharif 2014 for MNAIS & WBCIS in Telangana:

Dept of Agriculture, Govt. of Telangana vide GO Rt. No. 63 dt. 11/08/2014 communicated the guidelines for extension of cut-off date upto 31/08/2014 for implementation of Modified National Agriculture Insurance Scheme (MNAIS) & Weather Based Crop Insurance Scheme (WBCIS) Kharif 2014 in the State of Telangana.

The cut-off date is applicable for enrolment of non-loanee farmers in respect of all notified crops under NAIS vide GO RT. no. 79 dt. 22/08/2014. However, vide GO RT No. 84 dt. 25/08/2014, Government of Telangana has further informed to de-notify ‘Cotton and Red Chilly Crops’ under Weather Based Crop Insurance Scheme and Notify ‘Cotton (irrigated) & (un-irrigated) and Red Chilly (irrigated) crops’ and Areas (District-wise) for implementation of Manadal Insurance Unit / Group Mandals / District as Insurance Unit Scheme in respect of loanee farmers under NAIS during Kharif 2014 season. The GOs issued by Government of Telangana are enclosed as annexure 40.

SLBC has already circulated these guidelines to the controlling authorities of all Banks and LDM.

8. NABARD – Acceptance of Government subsidy claims under Animal Husbandry Schemes – Poultry Venture Capital Fund (PVCF), Integrated Development of Small Ruminants and Rabbits (IDSRR) and Pig Development.

NABARD Regional Office, Hyderabad vide Cir. No. APRO/ HYD/ DoR/ 4382/ IDSRR/2014-15 dt. 18th September 2014 on the captioned subject wherein it is informed that all the subsidy applications under the above schemes, where first installment of the loan was released by banks up to 31st March 2014 shall be accepted by Regional Office, NABARD latest by 15th October 2014. No further subsidy claims for this period (Loan disbursed up to

31st March 2014) are permitted for release of subsidy during the year 2014-15. Hence it is advised that banks submit the claims, complete in all the respects, through proper channel, to NABARD, Regional office, Hyderabad on or before 15 th October 2014. The copy of the circular is enclosed as annexure 42.

SLBC has circulated the same to the controlling authorities of all banks / LDMs vide No. SLBC(T)/Gr.II/F.8/550 dt. 30/09/2014.

9. Overdues / NPAs under agriculture sector as on 30/06/2014 (A/c in lac & Amt in crore)

Outstanding Overdues NPAs S.N A/c. Amt No. of Total Actual No.of Amount Particulars o. overdue Balance in overdue A/c. A/c. overdue amount accounts 1 Short Term Production 45.36 25481.00 1.45 10008.48 6446.44 2.57 1768.56 Loans 2 Agriculture Term Loans including Agri. 9.38 16064.52 2.99 3822.75 2081.56 1.10 1385.43 Allied activities advancs 4 Agri. And allied – 1.03 8918.31 0.15 1892.21 1171.02 0.08 707.65 Indirect 5 Total Agriculture 55.77 50463.83 4.59 15723.44 9699.02 3.75 3861.64 Advances

(SLBC has not received data from some of the member banks. Hence the figures are indicative)

SLBC is requesting the Government of Telangana to create machinery in the Agriculture Department to help the banks in recovery of chronic dues in Agriculture sector. This will help the banks in better recycling of funds and increase credit flow to agriculture sector.

10. Changes in Self-Employment Programme (SEP) component of National Urban Livelihoods Mission (NULM)

SLBC received a communication Ministry of Housing & Urban Poverty Alleviation, New Delhi vide Lr.no D.O.No.K-14014/58(10)2012-SLSU-SNPUPR dated 18th September, 2014 on the captioned subject. A communication to the controlling offices of all the banks has been sent on 18/10/2014.

 A new component of SHG Bank Linkage has been introduced under NULM. Under this component, SHGs in urban areas can avail bank loan on 7% rate of interest. Further, an additional 3% interest subvention will be provided to all women SHGs in all the cities who repay their loan in time. The difference between 7% or 4% as the case may be and the prevailing rate of interest will be provided to banks under NULM (RBI Cir RPCD.CO.GSSD.BC.No. 26/09.16.03/2014-15)  As per the targets and classification of Priority Sector mentioned by RBI vide circular No. RPCD.CO.Plan.BC10/04.09.01/2014-15 dated 1st July 2014, the loans of Swarna Jayanti Shahri Rozgar Yojana (SJSRY) now restructured as NULM, are included under weaker sections under the priority sector lending by banks. The loans of NULM henceforth, should be included in the priority sector and deal on priority by the Banks.

Agenda: 6:

Micro, Small & Medium Enterprises (MSME) Sector

1. Position of lending to MSME sector

(Rs. In cr)

Outstanding as on 31/06/2014 S.No. Particulars A/c. Amt 1 Micro Enterprises 379006 16479.45 2 Small Enterprises 139011 21836.80 3 Total SME 518017 38316.25 4 % of Micro enterprises to total MSE 73.16 43.01 5 % of Small enterprises to total MSE 26.84 56.99 6 Medium Enterprises 88279 11527.03 7 Total MSME 606296 49843.28

2. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme and achievement in Telangana

During 36th E.C. and 101st SLIIC meetings of MSME held on 31st July, 2014 held at RBI, it was suggested that banks should submit monitorable action plans to improve the CGTMSE coverage . Some of the banks informed that premium of 1.25% of the loan amount is hurdle for the borrowers to be covered under the scheme.RBI advised the banks to give publicity about benefits of the coverage. In this connection controllers of the Banks are advised to:

 Sensitize the Branch Managers to extend coverage of all new eligible micro & small units under the scheme  Display at bank branches and at prominent places on the availability of Collateral free loans.  All loan applications are to be acknowledged  Explore the possibility of opening of Special branches in SME clusters.  Banks shall have monitorable action plan as suggested by RBI.

All Banks are requested to make all out efforts to reach the target set for coverage of CGTMSE units during the current year.

3. Rehabilitation of Sick Micro and Small Enterprises

Analysis reveals that the identification of sickness in MSE enterprises is delayed so much late that the possibilities of revival turns remote.

As per revised guidelines that are issued for rehabilitation of sick units in the MSE sector as given in Annex.1 of RBI/2012-13/273,RPCD.CO.MSME & NFS.BC.040/06.02.31/2012-13, dated November 1, 2012, the emphasis of the revised guidelines is to hasten the process of identification of a unit as sick, early detection of incipient sickness, and to lay down a procedure to be followed by banks before declaring a unit as unviable.

RBI emphasize that timely and adequate assistance to potentially Viable MSE units which have already become sick or are likely to become sick is of the utmost importance not only from the point of view of the financing banks but also for the improvement of the economy, in view of the sector’s contribution to the overall industrial production, exports and employment generation.

The banks should therefore take a sympathetic attitude and strive for rehabilitation, in respect of units in the MSE sector, particularly wherever the sickness is on account of circumstances beyond the control of entrepreneurs. However, in cases of units, which are not capable of revival, banks should make efforts for a settlement and/or resort to other recovery measures, expeditiously.

4. Overdue/NPAs under MSE Sector as on 30.06.2014

(Rs. In cr) Outstanding Overdues NPAs

Total Particu- No. of Actual S.No. Balance in No.of lars A/c. Amt overdue overdue Amount overdue A/c. A/c. amount accounts

1 MSE 740650 38316.24 143678 9312.88 4984.30 83422 2060.03

The total balance in overdue accounts to outstanding MSE is 24.30% and the over-dues in real terms are Rs.4984.30 cr which is 13.08% of total outstanding. The ratio of NPAs is 5.37%

In view of the mounting of overdues in SME sector in general and PMEGP in particular, SLBC is requesting the Secretary, Industry & Commerce, MSME Department, Government of Telangana to constitute a recovery mechanism that helps the banks to recover the overdues which in turn increase in credit flow to MSME sector.

Agenda: 7

1. Position of Housing Loans as on 30.06.2014

(Rs. In cr) Period Outstanding Disbursement No. of a/c. Amount No. of a/c. Amount June 2014 311722 16585.29 13723 496.77

2. Pending reimbursement of Government share of EMIs as per GO MS No. 42 by the State Housing Corporation under RGK and Vambay schemes.

SLBC has taken up the matter with AP State Housing Department (Telangana Unit) requesting to settle the claims of the banks as banks were given to understand that there is inordinate delay in settling the claims by the Housing Corporation.

In response to the above, the Housing Department vide their letter no. 7185/MGR/FIN/2014 dt. 10.10.14 stating that the issue was referred to Government and orders are awaited. SLBC has communicated this to all members vide letter No. F/8/574 dt. 18.10.2014.

It is being informed by banks that though there are several cases of mis-utilisation of loans allocated under weaker section housing programme and repayments are not forth coming, steps are not being initiated for re-allocation of houses. SLBC is requesting Housing Department to re-allocate at least some cases for demonstration, which will have positive impact on recovery.

3. Overdue/NPAs under Housing Loans as on 30.06.2014

Total Particu- No. of Actual S.No. Balance in No.of lars A/c. Amt overdue overdue Amount overdue A/c. A/c. amount a/c.

1 Housing Loans 311722 16585.29 81459 3860.61 905.66 31047 629.72

Total overdues in housing loans constitute 23.27% of the Housing Loans outstanding whereas the NPAs constitute 3.80% of the Housing Loans outstanding.

Agenda – 8:

Education Loans

1. Position of Education Loans as on 30.06.2014 (Rs. In cr)

Period Outstanding Disbursement No. of a/c. Amount No. of a/c. Amount June 2014 88404 2422.80 7336 90.18

2. Allocation of targets for Educational Loans for 2014-15

Department of Financial Services, Ministry of Finance, Government of India vide letter No.F.No.1(1)/2011-CP dated June 23, 2014 advised convener SLBC to allocate targets for 2014-15 under Educational Loans keeping a minimum growth 10% in number of accounts and 15% in loan outstanding. Further it is advised to monitor the progress in the SLBC

21 SLBC of Telangana 4th Meeting of SLBC State Bank of Hyderabad meetings regularly. The proposed targets were allocated based on the provisional information furnished by banks as on 30.06.2014. The targets allocated are kept as annexure No. 16.

3. Insisting on Collaterals and Guarantees while sanctioning the educational loan

Reserve Bank of India, Hyderabad advised SLBC to communicate the extant guidelines of educational loan scheme, wherein it was advised that no security be insisted for loans up to Rs.4 lac.

SLBC has advised the controllers of all the banks to reiterate the circular instructions to their branches (adhere the guidelines of RBI contained in circular no. RPCD.PLNFS.BC.No. 83/06.12.05/2000-01 dt. 28/04/2001 regarding Education Loan Scheme). Copy of the RBI circular instructions is enclosed as annexure 42

4. Central Scheme to provide interest Subsidy (CSIS):

RBI Hyderabad vide Lr. No. RPCD (H)/LBS/370/02.03.03/2014-15 dated September 17, 2014 informed that some of the banks in the state are not extending the benefit of CSIS to the eligible students who have been sanctioned education loans after March 31, 2009. In this context, RBI advised as per the central government as well as IBA guidelines, the CSIS is applicable to all eligible students who pursue technical and professional education studies in India beginning from the academic year 2009-10.

SLBC circulated these guidelines to controlling authorities of all banks for compliance.

5. Padho Pardesh—Scheme for Interest subsidy on Education loans for Overseas studies for the Minority Communities:

Government of India , Ministry of Minority Affairs has formulated a scheme for interest subsidy on education loans for overseas studies to promote educational advancement of students from economically weaker sections of notified minority communities of the society. The scheme is introduced by Government of India by name Padho Pardesh –scheme effective from 2013-14 for interest subsidy on Educational loans for Overseas Studies i.e., Masters, M. Phil & Ph. D for the studies belonging to the Minority communities viz., Muslims, Christians, Sikhs, Budhists, Jains and Parsis. The scheme guidelines are placed as annexure 43.

6. Overdue/NPAs under Education Loans as on 30.06.2014

Total Particu- No. of Balance Actual S.No. No.of lars A/c. Amt overdue in overdue Amount A/c. A/c. overdue amount a/c.

1 Education 884.04 2422.80 28732 541.88 208.19 10905 195.35 loan

The percentage of balance in overdue accounts & NPAs to outstandings is 22.36% and 8.06% respectively.

Agenda – 9:

1. Position of Export Credit in Telangana:

SLBC will take up with Export & Industry Associations and Banks for identifying issues to be discussed in Export Sub-committee Meetings, as no issued have been brought to the notice of the SLBC so far.

The position of export credit as on 30/06/2014 is as under: (Rs. In cr) Period Outstanding Disbursement No. of a/c. Amount No. of a/c. Amount June 2014 1322 3278.92 139 275.10

Bank-wise position as on 30.06.2014 is given in the annexure 17.

Agenda- 10:

Credit flow to Minority Communities :

The position of credit to minority communities as on 30/06/2014 is as under: (Rs. In cr) Period Outstanding Disbursement No. of a/c. Amount No. of a/c. Amount June 2014 758725 12339.88 57006 753.86

Bank wise position as on 30.06.2014 is given in the annexure 18.

Agenda – 11:

Credit flow to Weaker sections :

The position of credit flow to weaker sections as on 30/06/2014 is as under:

Agenda – 12:

1. Credit Flow to Scheduled Castes/Scheduled Tribes :

The position of credit flow to SC/STs as on 30/06/2014 is as under:

Agenda – 13:

1. Credit flow to Women beneficiaries:

The position of credit flow to women as on 30/06/2014 is as under:

Agenda -14:

Position of implementation of Government sponsored schemes during the financial year 2014-15 –

Government of India schemes:

1. Prime Ministers Employment Generation Programme (PMEGP):

Targets – 2014-15: District wise targets have been sent to respective Lead District Managers to allocate bank-wise targets in consultation with DLCC and submit the report to SLBC.

(Rs. In lac) District KVIC SO APKVIB DIC Rural DIC Urban Total No. of Margin No. of Margin No. of Margin No. of Margin No. of Margin Projects Money Projects Money Projects Money Projects Money Projects Money

Adilabad 60 84.03 60 84.03 40 56.02 36 50.24 196 274.32 Hyderabad 0 0 0 0 0 0 40 58.09 40 58.09 Karimnagar 60 84.03 60 84.03 40 56.02 36 50.24 196 274.32 Khammam 60 84.03 60 84.03 40 56.02 36 50.24 196 274.32 Mahabubnagar 60 84.03 60 84.03 40 56.02 36 50.24 196 274.32

Medak 60 84.03 60 84.03 40 56.02 36 50.24 196 274.32 Nalgonda 60 84.03 60 84.03 40 56.02 36 50.24 196 274.32 Nizamabad 62 86.92 62 86.92 40 56.02 36 50.24 200 280.10 RR Dist 62 86.92 62 86.92 42 58.91 36 50.24 202 282.99 Warangal 62 87.13 62 87.13 42 58.91 36 50.24 202 283.41 Total 546 765.15 546 765.15 364 509.96 364 510.25 1820 2550.51

KVIC is requested to furnish the issues to be placed before the core committee to workout model project report & standardized processing template for processing at district level taks force for PMEGP.

KVIC is requested to organise DLTFC in all the districts to identify the eligible applicants to be covered under the scheme for the year 2014-15.

2. Implementation of Scheme of Interest Subsidy Eligibility Certificate (SEC) Scheme:

The scheme is the major source of funding for the Khadi programme. This was introduced in May 1977 to mobilize funds from banking institutions to fill the gap in the actual fund requirement and its availability from budgetary sources. Under the scheme, credit at concessional rate of interest of 4 per cent per annum for capital expenditure as well as working capital is given as per the requirement of the institutions. The difference between the lending rate and 4 per cent is paid by the Central Government through KVIC to the lending bank and funds for this purpose are provided under the Khadi grant head to KVIC.

3. National Rural Livelihood Mission (NRLM)

SHG-Bank linkage programme – position as on 30/06/2014

The position as SHG-Bank Linkage as on 30/06/2014 is as under:

Overdue / NPA position as on 30/06/2014 (Rs. In cr)

Outstanding Overdues NPAs

Total Particu- No. of Balance Actual S.No. No.of lars A/c. Amt overdue in overdue Amount A/c. A/c. overdue amount a/c.

1 NRLM 63379 1211.15 10550 193.12 31.52 3415 29.06

The percentage of outstanding overdue & NPAs to total outstandings is 15.94% and 2.40% respectively.

4. Housing Schemes – RRY:

Rajiv Rinn Yojana (Revised Interest Subsidy Scheme) for housing to Weaker Sections Launched by the Ministry Housing & Uran Poverty Alleviation, GOI.

Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) was being implemented by Government of India as a supportive measure for expending credit flow to housing for the Economically Weaker Sections (EWS) and Low Income Groups (LIG) upto Sep. 2013.

The Ministry of Housing and Urban Poverty Alleviation (HM&UPA), Govt. Of India designed a revised Interest Subsidy Scheme – renamed as Rajiv Rinn Yojana (or Rajiv Loan Scheme), as an additional instrument for addressing the housing needs of the EWS/ LIG segments in urban areas. The scheme envisages the provision of a fixed interest subsidy of 5% on interest charged on the admissible loan amount to EWS and LIG segments to enable them to buy or construct a new house or for carry out addition to the existing building. MH&UPA has already launched the captioned scheme formally and issued guidelines of the scheme to all banks. All members banks are requested to send a word of communication for having communicated the scheme guidelines to all the branches in Telangana and instructed them to implement this new scheme in place of ISHUP.

5. Handloom Weavers

The Handloom sector is providing employment to a large number of persons in the state and the sector needs to be given the required thrust as there is a good potential.

The position of credit flow to handloom weavers as on 30/06/2014 is as under: (Rs. In cr) Period Outstanding Disbursement No. of a/c. Amount No. of a/c. Amount June 2014 4511 22.47 142 0.80

Banks are advised to extend finance to the sector and issue of more Weaver Credit Cards.

6. Credit under DRI:

The position of credit flow under DRI scheme as on 30/06/2014 is as under:

(Rs. In cr) Period Outstanding Disbursement No. of a/c. Amount No. of a/c. Amount

June 2014 16534 49.90 1891 29.01

All the banks are requested to make all out efforts to identify the eligible beneficiaries under DRI scheme and to extend finance as per guidelines.

7. Central Sector Scheme of Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS) – Revision of the scheme

Indian Banks’ Association, Mumbai vide their letter no. SB/CIR/SRMS/ GOVT/ 8723 dated 22nd January 2014 along with Ministry of Finance letter no. 3(2)/2009(VOL-ii)-CP dt. January 2014 communicated the revised guidelines of the above scheme.

Indian Banks’ Association vide letter no. SB/CIR/SRMS/GOVT/9380 dt. 10th May 2014 directed the State (Combined Andhra Pradesh) that Ministry of Social Justice and Empowerment has informed that financing is crucial to rehabilitation and so far banks have been reluctant to provide this assistance to manual scavengers and their families.

It is advised that the issue regarding earmarking 1% of district level total sanctioning powers for soft loans to redeemed manual scavengers may be examined. All banks are requested to be guided accordingly.

8. Small Farmers’ Agri Consortium (SFAC):

SFAC would provide Venture Capital to qualifying projects on the recommendation of the bank / financial institution financing the project. This venture capital will be repayable to SFAC after the repayment of term loan of lending bank / financial institution as per original repayment schedule or earlier.

SFAC would provide venture capital to agri. Business projects by way of soft loan to supplement the financial gap worked out by the sanctioning for term loan under Means of Finance with respect to cost of project subject to the fulfilment of the following conditions:

The main objectives of the scheme area:

 To facilitate setting up of agri. Business ventures in close association with all banks / financial institutions notified by the Reserve Bank of India where the ownership of the Central / State Government is more than 50% such as Nationalized banks, SBI &its subsidiaries, IDBI, SIDBI, NABARD, NCDC, NEDFI, Exim Bank, RRBs & Financial Corporations  To catalyze private investment in setting up of agri. Business project and thereby providing assured market to producers for increasing rural income and reemployment.  To strengthen backward linkages of agri. Business projects with producers.  To assist farmers, producer groups, and agriculture graduates to enhance their participation in value chain through Project Development Facility.  To arrange training and visits, etc. of agripreneurs in setting up identified agri. business projects.  To augment and strengthen existing set up of State and Central SFAC.

It is observe that the programme is not stabilized in the newly carved state of Telangana. Dept. of Horticulture should take necessary initiatives to popularize the scheme in the state.

Agenda - 15:

Position of implementation of Government sponsored schemes during the financial year 2014-15 – Government of Telangana schemes:

1. SC Corporation:

Targets – 2014-15: District wise targets have been sent to respective Lead District Managers with an advise to allocate bank-wise targets in consultation with DLCC and submit the report to SLBC.

S.No. Name of the District No Amount (Rs. In lac) 1 Mahabubnagar 5242 1965.83 2 Hyderabad 4471 1681.14 3 Khammam 3970 1343.54 4 Ranga Reddy 3810 1535.77 5 Nalgaonda 3701 1527.26 6 Warangal 3659 1346.71 7 Medak 3237 1148.97 8 Nizamabad 3109 1084.38 9 Adilabad 2827 937.83 10 Karimnagar 2283 1083.72 Grand Total 36307 13655.16

The Bank-wise performance will be reviewed in the quarterly meeting for the quarter ended Sept. 2014.

2. Rajiv Yuva Shakti (RYS) scheme:

Targets – 2014-15: District wise targets have been sent to respective Lead District Managers with an advise to allocate bank-wise targets in consultation with DLCC and submit the report to SLBC. S.No. Name of the District No Amount (Rs. In lac) 1 Khammam 375 375.00 2 Warangal 475 475.00 3 Adilabad 365 365.00 4 Mahabubnagar 540 540.00 5 Hyderabad 535 535.00 6 Medak 405 405.00 7 Rangareddy 710 710.00 8 Nalgonda 465 465.00 9 Nizamabad 345 345.00 10 Karimnagar 510 510.00 Grand Total 3510 4725.00

3. Telangana Washermen Co.op Society:

Targets – 2014-15: District wise targets have been sent to respective Lead District Managers with an advise to allocate bank-wise targets in consultation with DLCC and submit the report to SLBC.

S.No. Name of the District No Amount (Rs. In cr) 1 Hyderabad 2055 10.275 2 Rangareddy 975 4.875 3 Mahabubnagar 1170 5.850 4 Nalgonda 1395 6.975 5 Medak 1080 5.400 6 Nizamabad 735 3.675 7 Adilabad 690 3.450 8 Karimnagar 1920 9.600 9 Warangal 1125 5.625 10 Khammam 960 4.800 Grand Total 12105 60.525

4. TS Kummari / Shalivahana co.op Society:

Targets – 2014-15: District wise targets have been sent to respective Lead District Managers with an advise to allocate bank-wise targets in consultation with DLCC and submit the report to SLBC. S.No. Name of the District No Amount (Rs. In cr) 1 Hyderabad 150 0.76 2 Rangareddy 525 2.62 3 Mahabubnagar 615 3.08 4 Nalgonda 1125 5.62 5 Medak 525 2.62 6 Nizamabad 525 2.62 7 Adilabad 300 1.50 8 Karimnagar 150 0.76 9 Warangal 1200 6.00 10 Khammam 150 0.76 Grand Total 5265 26.34

5. Krishna Balija / Poosla co.op society

6. Sagara (Uppara) co.op society

7. Viswabrahmin co.op society

8. Weaver Credit Card Scheme:

Targets – 2014-15: District wise targets have been sent to respective Lead District Managers with an advise to allocate bank-wise targets in consultation with DLCC and submit the report to SLBC. S.No. Name of the District No 1 Warangal 2000 2 Khammam 50 3 Karimnagar 1000 4 Adilabad 50 5 Medak 1185 6 Nizambad 100 7 Mahabubnagar 2725 8 Nalgonda 3290 9 Hyderabad 50 10 Rangareddy 50 Grand Total 10050

9. Waddera co.op society

10. TS Valmiki / Boya co.op society

Targets – 2014-15: District wise targets have been sent to respective Lead District Managers with an advise to allocate bank-wise targets in consultation with DLCC and submit the report to SLBC. S.No. Name of the District No Amount (Rs. In cr) 1 Hyderabad 150 0.76 2 Rangareddy 600 3.00 3 Mahabubnagar 1305 6.52 4 Nalgonda 150 0.76 5 Medak 600 3.00

6 Nizamabad 150 0.76 7 Adilabad 300 1.50 8 Karimnagar 450 2.24 9 Warangal 450 2.24 10 Khammam 150 0.76 Grand Total 4305 21.54

11. Medara co.op society

12. Bhattraja co.op society

Targets – 2014-15: District wise targets have been sent to respective Lead District Managers with an advise to allocate bank-wise targets in consultation with DLCC and submit the report to SLBC. S.No. Name of the District No Amount (Rs. In cr) 1 Hyderabad 1095 5.4750 2 Rangareddy 1515 7.5750 3 Mahabubnagar 345 1.7250

4 Nalgonda 333 1.6650 5 Medak 75 0.3750 6 Nizamabad 90 0.4500 7 Adilabad 30 0.1500 8 Karimnagar 225 1.1250 9 Warangal 225 1.1250 10 Khammam 240 1.2000 Grand Total 4173 20.8560

13. Nayee Brahmins co.op society

Overdue / NPAs position under Government sponsored schemes as on 30/06/2014

(Rs. In cr) S.No. Particu-lars Outstanding Overdues NPAs

Total No. of Balance Actual No.of A/c. Amt overdue in overdue Amount A/c. A/c. overdue amount a/c.

1 Central Govt 151599 3115.73 41029 408.12 157.63 23553 131.42 schemes

Of which

SGSY 59140 1161.79 6463 43.88 32.24 4797 28.01

NRLM 63379 1211.16 10550 193.12 31.52 3412 29.06

SJSRY 8443 391.14 3441 16.61 11.94 2346 8.47

PMRY 27889 698.40 19107 128.12 66.09 12084 54.81

PMEGP 722 22.46 155 2.16 1.18 168 1.62 ISHUP 1776 23.01 10.42 15.20 12.48 712 8.86 /RRY State Govt sponsored 3455489 77849.88 1507897 36384.07 14898.86 390238 7092.84 schemes

(SLBC has not received full data from some of the members banks. Hence the figures are indicative)

Central Govt. Sponsored schemes: The percentage of balance in overdue accounts & NPAs to total outstandings is 13.09% and 4.22% respectively.

State Govt. Sponsored schemes: The percentage of balance in overdue accounts & NPAs to total outstandings is 46.73% and 9.11% respectively.

SGSY schemes: The percentage of balance in overdue accounts & NPAs to total outstandings is 3.77% and 2.41% respectively.

SJSRY schemes: The percentage of balance in overdue accounts & NPAs to total outstandings is 4.24% and 2.16% respectively.

PMRY schemes: The percentage of balance in overdue accounts & NPAs to total outstandings is 18.58% and 7.84% respectively.

PMEGP schemes: The percentage of balance in overdue accounts & NPAs to total outstandings is 9.62% and 7.23% respectively.

ISHUP/RRY schemes: The percentage of balance in overdue accounts & NPAs to total outstandings is 66.05% and 38.51% respectively.

Agenda –16:

Financial Inclusion

1. Providing Banking Channels / Services:

a. Providing Banking Services in all villages with above 2000 population – progress as on 30/06/2014:

Banks have completed process of providing Banking services in respect of all identified villages having population of above 2000. Banks are advised to ensure that the number of transactions in the FI villages is improved and the services of BCs are effective.

b. Implementation of FIP in below 2000 population – progress as on 30/06/2014:

SLBC has submitted the Road Map for 6643 identified villages as advised by Reserve Bank of India in respect of below 2000 population. As against the target of 6643 villages to be covered with banking channels 5797 villages have been provided with banking channels. Out of which banking channels are deployed through BCAs in 5700 villages and Brick & Morter branches in 53 villages and through other modes in 44 villages.

Quarterly progress report as on 30/06/2014 are enclosed an annexure 44 .

c. Branch Expansion Plan:

All banks are advised to open branches as per the branch expansion plan approved by their Boards positively.

d. Installation of ATMs:

Government of India has advised all banks including Regional Rural Banks to establish their ATMs at their branches to enable the customers to draw the benefits as per their convenience.

Ministry of Finance has advised banks to go for off-site ATMs wherever there is no possibility of provision of site and other infrastructure readily available at the branch. It is also advised that top priority is to be given for establishment of ATMs in all identified pilot districts under Direct Benefit Transfer Scheme.

On-site ATM means ATM installed at the branch or within 500 meters vicinity of the branch and in case of SBI, ATM of any SBI group of banks located within 500 meters vicinity will be considered as on-site ATM.

All banks to ensure that Micro ATMs are to be placed in all BC locations immediately to enable the DBT beneficiaries to draw the benefits.

e. Issurance of Debit Cards:

All banks are advised to issue Debit Cards to all the beneficiaries under various schemes taken up under Direct Benefit Transfer Scheme to enable them to draw their benefits at ATMs.

f. National Mission of Financial Inclusion Plan – Pradhan Mantri Jan-dhan Yojana (PMJDY):

PMJDY Programme was launched by Hon’ble Prime Minister of India on 28.08.2014. The six pillars of the programme along with period of implementation detailed as under:

Phase I (2014-2015):

 Universal Banking  Basic Bank account with overdraft facility  Financial Literacy Programme

Phase II (2015-18):

 Creation of credit Guarantee Fund  Micro Insurance  Pension Scheme for unorganised sector

 Universal Access to banking facilities:

Mapping of each district in to Sub Service Area (SSA) catering to 1000-1500 households in such a way that every habitation has access to banking services within a distance say 5 km by 14th August, 2015.

 Providing Basic Banking Accounts with overdraft facility and Rupay debit card to all households:

Our effort would be to first cover all uncovered households with banking facilities by 26th January, 2014 by opening basic bank accounts. Account holder would be provided a Rupay Debit Card . Facility of overdraft to every basic banking account holder would be considered after satisfactory operation/credit history of six months.

Latest position of accounts opened in the state of Telangana as on 31.10.2014 as under: Rural Urban Total All banks 1461951 1144203 2606154

The report is enclosed as annexure 45

 Financial Literacy Programme:

Financial literacy would be an integral part of the Mission in order to le the beneficiaries make best use of the financial services being made available to them.

g. Unbanked Mandal / Mandals in which there is no bank branch in Mandal Head Quarters:

There is no mandal in the State of Telangana left over without bank branch.

h. Opening of branches in Tribal areas:

There is no request has received for opening of branches in tribal areas of Telangana State.

2. Credit Plus Activities

a. Financial Literacy Centre (FLCs)

Reserve Bank of India vide their cir.no. RPCD.FLC.No. 12452/12.01.018/ 2011-12 dt. 06/06/2012 advised that all Lead Banks to set up FLCs in all its LDM offices and the existing FLCC will continue. Financial Literacy activity is to be taken up by all rural branches. RBI has already clarified that the erstwhile FLCCs are also to be terms as FLCs henceforth.

Position in Telangana: Particulars No. of FLCs Number of FLCC operating in the District Head Quarters 10 Number of FLCCs operating in Lead District Offices 10 Number of FLCCs operating in other areas 9 Total 29

Details of FLCs is enclosed as annexure 46.

Financial Literacy activity by rural branches and FLCs:

The Financial Literacy Centres (FLCs) both in districts and LDM offices opened by banks are meant to take up Financial Literacy activities on a regular basis.

Reserve Bank of India, Hyderabad vide letter no. RPCD(H)FI&FL/02.03.031/ 213-14 DT. 22/07/2014 has advised all banks to scale up the Financial Literacy activities by the rural branches and FLCs through conduct of Financial Literacy Camps at least once a month to facilitate financial inclusion. In this regard, it is advised to follow:

 All FLCs and rural branches should prepare an annual calendar of locations for conduct of outdoor financial literacy camps.  At every location, the program should be conducted in three stages to be spread over a period of three moths comprising three sessions on minimum two hours each in terms of RBI circular dated 31/01/2013.  FLCs and rural branches should inform the Lead District Officer (LDO) of RBI about organisation of outdoor financial literacy camps well in advance to enable them to attend some of the camps.

 Quarterly progress reports as at the end of every quarter should be submitted as per annexure-I for the activities undertaken by FLCs and as per annexure II for the activities undertaken by the rural branches and these reports should be submitted to SLBCs by the 10th of the succeeding month of the end of the quarter for consolidation and onward submission to RBI.

As per draft guidelines issued by the Department of Financial Services, Ministry of Finance, Government of India, on implementation of Comprehensive Financial Inclusion Plan, a lot of importance has been attached to Financial Literacy and banks have been advised to undertake Financial Literacy campaigns in a big way to prepare the people for financial planning and availing credit. It is important that the people are made aware of the advantages of the access to basic financial system, savings, credit, importance of timely repayments and building up a good credit history. This has to be achieved by setting up FLCs at the block level and expand the scope of financial literacy with focus on people availing credit from the formal financial system and coming out of the exploitation by informal financial system.

All banks are advised to give suitable instructions to all their rural branches to take necessary steps in this regard and ensure submission of progress made to RBI and SLBC.

Report of conduct of financial literacy camps by rural branches for quarter ended June 2014 is enclosed as annexure 47.

Report of financial literacy activities conducted by FLCs for the quarter ended June 2014 is enclosed as annexure 47.

Telecom connectivity issues:

All the banks are advised to submit the name of the branches where they are getting connectivity problems. After receipt of the same, SLBC has intimated to Dept. of Telecommunications.

b. Rural Self Employment Training Institutes:

Status of allotment of land to RSETIs

Place of RSETI Status Khammam & Karimnagar (SBH) Land allotment has not been done for RSETIs sponsored by State Bank of Hyderabad at Khammam & Karimnagar. District Administration of Khammam and Karimnagar to expedite allotment of sites. Mahabubnagar (SBI) RSETI sponsored by State Bank of India at Mahabubnagar has not been provided the site. A representation to this affect was given to the District Administration for providing a piece of land near Jadcherla Siddipet (AB) Andhra Bank has given a representation for approval to open RSETI at Siddipet in Medak district. The SLBC has already taken up the issue with State Administration for allotment of land to Andhra Bank.

Reimbursement of pending claims of expenditure to Institutes:

Reimbursement of expenditure to RSETIs (Sangareddy & Mahabubnagar) is pending from 2012-13 onwards. SLBC will take up the issue with SERP, Telangana for early settlement of claim.

c. TSLBC Call Centre:

Functioning of TSLBC call centre on behalf of all banks for the purpose of providing guidance to the Public on Financial Inclusion – opening of bank accounts and Seeding of Aadhaar numbers.

As per guidelines of Ministry of Finance, a call centre opened in the state of Telangana as a part of financial inclusion for opening of bank accounts of households and migrant labour. The call centre will function from 8.00 a.m. to 8.00 p.m. The call centre is attending the queries relating to opening of bank accounts, KYC compliance, seeding of Aadhaar numbers etc.

TOLL FREE NO. 1800 425 1825 & for SMS 9000 222 444

It is advised that state level grievance redressal mechanism is to be established at state level. SLBC Telangana Call Centre was designated for receiving the grievances in implementation of PMJDY.

3. Others:

 Geographical Information System (GIS):

The Ministry of Finance informed vide letter dated 23rd October, 2012 that GIS module of Banking Amenities Data for Financial Inclusion is accessible to SLBC Conveners/Lead Banks. The GIS Module is for visualisation and query purposes only and any data to be corrected only through the data entry module. The data thus modified will be reflected in GIS module on a periodic basis. All LDMs and Lead Banks are advised to correct data errors, if any, for which the data is already uploaded and update the data on GIS module on Monthly intervals since the GoI is proposed to place the GIS module in public domain once the data entered is verified by SLBC through LDMs. All LDMs are advised to confirm SLBC that the dta on GIS module is error free.

Agenda – 17:

Lead Bank Scheme

1. Implementation of High level Committee Recommendations:

SLBC-AP (for Combined State) has submitted progress report on implementation of High Level Committee recommendations in June 2014 to Reserve Bank of India.

To strengthen Lead Bank scheme it is requested that :

a. Banking facilities are to be provided in all sub Service Areas mapped. b. Relocating the branches closed/shifted due to security reasons in the past to their original places. c. Opening of branches in unbanked Mandals in the state.

d. Circular instructions were given to extend credit to RSETI trained candidates Women SHGs promoted by Anchor NGOs in LWE districts should be assisted with Bank linkage e. Educational loan target set by Ministry of Finance should be achieved f. State Government to ensure conducive law and order situation, adequate security, un Interrupted Power and water supply and irrigation facilities wherever required.

2. Conduct of meetings under Lead Bank Scheme:

All LDMs are advised to :

o Conduct DCC meetings as per calendar and communicate schedule and agenda to RBI & SLBC in advance. o Include important subjects of current relevance in the agenda points for discussion. o Submit minutes of the meeting to SLBC within a week of completion. o Invite all Public Representatives to the meetings well in advance. o Attendance in JMLBC/DLRC/DCC meetings o All banks are advised to attend all JMLBC/DLRC/DCC meetings regularly and ensure 100% attendance in the meetings and participate in the deliberations. o LDMs are advised to inform the names of absentees to the respective controlling authorities and still not responded may be brought to the notice of SLBC for taking up the matter at appropriate level. o Non-participation by the Controllers of Banks and representatives of Banks in DCC/DLRC meetings were postponed by the district Collectors. All banks are advised to take corrective steps and ensure 100% attendance in JMLBC/DCC/DLRC meetings.

3. Modified information system under Lead Bank Scheme : Strengthening of Management Information System:

In order to main consistency and integrity of data with the all India data of Scheduled Commercial Banks and meaningful review / analysis of data, RBI felt that the ACP and FIP data needs to be grouped separately for Scheduled Commercial Banks and other banks like Sate Co-operative Banks & DCCBs etc., while presenting in the DCC/SLBC meetings and submitting to their Regional Offices. The data of Scheduled Commercial Banks needs to be further grouped into Public Sector Banks, Private Sector Banks and Regional Rural Banks to know the bank group wise position.

All the controlling authorities of all banks and Lead District Managers are advised to submit the data accordingly.

4. Attendance in JMLBC / DLRC / DCC Meetings:

All banks are advised to attend all JMLBC / DLRC / DCC meetings regularly and ensure 100% attendance in the meetings and participate in the deliberations.

LDMs are advised to maintain the attendance of meetings and inform the absentees to their controlling authorities and still not responded may be brought to the notice of the SLBC for taking up the matter at the appropriate level.

5. Information to be submitted Quarterly by Banks/LDMs

All Banks and LDMs are advised to submit the quarterly information to be submitted to SLBC with 15 days from the end of the respective quarter to enable the SLBC to consolidate the position and to convene the SLBC meetings as per schedule. Some banks have not submitted the data pertains to June, 2014 quarter so far in spite of our follow up. The delay in submission leads to delay in conducting of SLBC meetings. Hence, all banks and LDMs are advised to submit the data well in time to adhere to the meetings schedule of SLBC meetings.

6. Communicating the decisions taken at SLBC level to the branches by the Controlling Authorities.

All Banks and LDMs are advised to percolate the decisions taken at SLBC level to their branches to enable them to implement at the field level by the branches and also place before DCC/DLRC meetings to initiate suitable action for implementation.

Agenda – 18:

Overdue / NPA position:

1. Overdue / NPAs position as on 30/06/2014 under various sectors

(A/c. in lac & Amt. in cr.) Sector Outstanding Overdue NPAs No. of Amout A/c. Total Actual A/c. Amount A/c. balance in overdue overdue amount accounts

Short Term crop production advances 45.36 25481.00 14.48 10008.48 6446.44 2.57 1768.56 Agri. Term loans incl. Agric allied activities 9.38 16064.52 2.99 3822.75 2081.56 1.10 1385.43 Agri and allied- indirect 1.03 8918.31 0.15 1892.21 1171.02 0.08 707.65 Total Agri. Advances 55.77 50463.83 17.62 15723.44 9699.02 3.75 3861.64 MSE Sector advances 5.18 30050.41 1.28 8434.31 4304.50 0.80 1956.78 Others'under Priority Sector Advances 6.13 24588.59 1.54 5302.90 1811.64 0.67 1354.61 Total Priority Sector Advances 67.08 105102.83 20.44 29460.65 15815.16 5.23 7173.03

Non-Priority Sector Advances 425.05 213297.36 2.00 43585.25 22488.02 4.92 15918.00 Total advances 492.13 318400.19 22.44 73045.90 38303.18 10.15 23091.03 Education Loans 0.88 2422.80 0.29 541.88 208.19 0.11 195.35 Housing Loans 3.12 16585.29 0.81 3860.61 905.66 0.31 629.72 SHGs 0.59 39.02 0.02 7.61 1.57 0.01 2.37

(The figures are indicative as the data has not received from all the members banks)

Agenda—19:

Regional Rural Banks

1. Performance of Regional Rural Banks on important parameters

Regional Rural Banks’ main focus of lending is to Agriculture and allied activities in rural, semi-urban and urban area. Reserve Bank of India, NABARD and Sponsored Banks are reviewing the performance of RRBS at regular intervals.

Bank Net work S.No Name of the RRB No. of branches as on 30.06.2014

1 DGB 303

2 APGVB 474

TOTAL 777

Deposits (Rs. in cr) S.No Name of the RRB 31.3.2014 30.06.2014

1 DGB 4155.43 4034.93

2 APGVB 4930.00 4811.03

Advances: (Rs.in cr) S.No Name of the 31.3.2014 30.06.2014 RRB

1 DGB 3531.10 3476.48

2 APGVB 5877.00 5904.88

C D Ratio S.No Name of the RRB 31.3.2014 30.06.2014

1 DGB 84.97% 86.16%

2 APGVB 119.20% 122.74%

Total Advances (Rs.in cr) S.No Name of Outstanding as on Total the RRB Agriculture

31.3.2014 30.06.2014 31.03.2014

1 DGB 3531.10 3476.48 2338.66

2 APGVB 5877.00 5904.88 2507.00

Total Agricultural advances (Rs. In cr)

S.No Name of the Crop loans as on Term loans RRB 31.3.2014 30.06.2014 31.03.2014

1 DGB 1299.45 1316.85 113.13

2 APGVB 2374.00 2738.69 133.00

Agenda – 20:

Other Items:

1. Inclusion of members in the SLBC meetings

As per the instructions of DFS, MoF, Government of India, the following members were included as members in SLBC meetings./

 Additional Provident Fund Commissioner / Regional Provident Fund Commissioner vide reference no. 2/6/2011-F1(C-69556) dated 25th August 2014, GoI, MoF, DFS.  LIC and Public Sector General Insurance Companies (PSGICs) vide reference F.No.14013/3/2014-Ins-II dated 27th August 2014, GoI, MoF,DFS

Agenda – 21:

1. Circulars issued by Reserve Bank of India:

i. RBI cir no. RBI/2013-14/653 dt. 24/06/2014 issued guidelines with regard to Financial Inclusion by Extension of Banking Services –use of Business Correspondents. ii. RBI Cir. No. RBI/2014-15/61 dt. 01/07.2014 issued Master Circular on SHG Bank- linkage programme. iii. RBI Cir. No. RBI/2014-15/68 dt. 01/07/2014 issued Master Circular on Housing Finance. iv. RBI Cir. No. 2014-15/73 dt. 01/07/2014 issued Master Circular on Wilful Defaulters. v. RBI Cir. No.RBI/2014-15/82 dt. 01/07/2014 issued Master Circular on Priority Sector lending vi. RBI Cir. No. RBI/2014-15/83 dt. 01/07/2014 issued master Circular on Credit facilities to Schedule Castes (SCs) & Scheduled Tribes (STs). vii. RBI Cir. No. RBI/2014-15/84 dt. 01/07/2014 issued master Circular on guidelines for Relief Measures by Banks in areas affected by natural calamities. viii. RBI Cir. No. RBI/2014-15/93 dt. 01/07/2014 issued master Circular on Micro, Small & Medium Enterprises (MSME) sector.

ix. RBI Cir. No. RBI/2014-15/94 dt. 01/07/2014 issued master Circular on Lead Bank Schemes. x. RBI Cir. No. RBI/2014-15/95 dt. 01/07/2014 issued master Circular on Priority Sector lending targets & classification. xi. RBI Cir. No. RBI/2014-15/118 dt. 01/07/2014 issued guidelines with regard to financial Literacy activities conducted by Financial Literacy Centres and rural branches of banks – monitoring system. xii. RBI, Hyderabad vide letter no. RPCD(H)/LBS/150/02.02.020/2014-15 dated the 11st August 2014 issued guidelines for reschedulement of crop loans in Telangana (Adilabad, Medak & RR districts). xiii. RBI Cir. No. RBI/2014-15/83 dt. 01/07/2014 issued guidelines to Treatment of accounts opened for Credit of Scholarship amounts under Government schemes.

2. Circulars issued by NABARD

i. NB.APRO/HYD/CPD/1941/A-14/2014-15 dt. 12/06/2014 issued circular on Ground level credit targets for agriculture 2014-15 ii. NB.APRO/DOR/2049/Organic Forming/2014-15 dt. 13/06/2014 issued circular on Capital Subsidy Scheme for Commercial Production of Organic Inputs under National Project on Organic Farming. iii. NB.APRO/HYD/DOR/4382/IDSRR/2014-15 dt. 18/09/2014 issued guidelines on acceptance of Government subsidy claims under Animal Husbandry Schemes – Poultry Venture Capital (PVCF), Integrated Development of Small Ruminants and Rabbits (IDSRR) and Pig Development.