1. District Characteristics Dakshina Kannada District, Known As the “Cradle of Banking”, Is One of the Three Coastal Districts in Karnataka

Dakshina Kannada PLP 2016-17

EXECUTIVE SUMMARY 1. District characteristics Dakshina Kannada district, known as the “cradle of banking”, is one of the three coastal districts in Karnataka. The total geographical area of the district is 4,861 sq. kms. of which 27% is covered by forests. Soils are mainly lateritic and acidic in nature. The Gross Cropped Area (GCA) is 1.59 lakh ha. The Net sown Area (NCA) is 1.31 lakh ha. and forms 27% of the geographical area of 4.77 lakh ha. Small and marginal land holdings account for more than 90% of total land holdings and 61% of the cultivated land. Paddy is grown nearly in one-thirds of the GCA. The other major crops are Coconut (16,296 ha), Arecanut (28,232 ha), Cashew (31,288 ha), Rubber (10,838 ha),etc. Fisheries is another major activity. Agro processing and fish processing are also taken up on a large scale. There are more than 11,000 enterprises in the district providing employment to nearly 44,000 persons. Certain large industrial units like MRPL, MCF, KIOCL, Ultratech Cement, Hindustan Unilever Ltd., etc. are present and employ nearly 10,000 persons. Large IT companies like Infosys have also set up their offices in the IT park at Deralekatte. Beedi rolling is a dominant household activity among women in rural areas. The district has a sea and airport and is well connected to other parts of the State by road. The district is an education hub and also known for religious tourism. Medical facilities available in the district are state of the art. Mangalore, the district headquarters, has been shortlisted in the first list of Smart Cities by the Government of India, recently. 2. Sectoral trends in credit flow: While the banks were able to achieve the ACP targets during 2012-13, they could not achieve the targets during 2013-14 & 2014-15. The disbursements under Priority Sector during 2012-13, 2013-14 & 2014-15 stood at `4528.18 crore, `3,869.58 crore & `5,233.01 crore respectively. The CD ratio in the district which was 52.40% as on 31.3.2013 has been witnessing an increasing trend during the last two years. It stood at 53.64% & 56.47% as on 31.3.2014 and 31.3.2015 respectively. 3. Sector/sub-sector wise PLP projections for 2016-17: The exploitable potential for 2016-17 was estimated at `6,24,850.88 lakh in the base PLP which has been revised to `9,03,608.95 lakh. The realization of potential would depends on the removal of various constraints and developing critical infrastructure. 4 Major constraints Lack of extension services in both agriculture and horticulture sectors, absence of last mile connectivity for access to market by farmers, absence of assured irrigation, inadequate storage facilities like godowns and cold storages, erratic power supply are some of the major constraints faced in the district. Inability of the farmers to access credit from formal financial institutions for cultivating in leased lands without affecting the rights of the owner of the land is another major hurdle which needs to be addressed. 5 Action points/issues to be addressed State Government a. Implementing the Paschima Vahini project on a mission on a priority basis b. Building last mile road and bridge infrastructure c. Creating model horticulture farm and encouraging innovative/hi-tech/export oriented projects. d. Setting up of a disease diagnostic laboratories and training on dairy/poultry activities. e. Early operationalisation of industrial areas identified in Canara Industrial Area. f. Ensure regular & assured power supply and promote use of solar solar roof-tops. g. Recognition to landless cultivators to access farm credit from banks/cooperative institutions Banks a. Adopt alternative modes of lending, including JLGs mode, to boost economic activity in the district. b. Focus on financing activities like land development, irrigation structures, farm mechanization, artificial water recharge structures, new godowns and renovation of existing old godowns to facilitate accreditation and also provide loans to farmers on the strength of Negotiable Warehouse Receipts.

Dakshina Kannada PLP 2016-17 c. Follow appropriate norms for assessing working capital requirements. 6. Thrust areas for 2016-17 6.1 Mainstreaming the financially excluded :The past year has seen a number of steps taken towards promoting financial inclusion in a big way viz., the Pradan Mantri Jan Dhan Yojana (PMJDY), Prime Ministers Social Security Schemes, Mudra Yojana, etc. Mainstreaming these account holders into the banking fold with these new schemes would continue to be the thrust area for 2016-17. 6.2 Accelerating pace of capital formation in agriculture & allied sector: Banks to give thrust for agriculture term loans to farmers which will lead to capital formation in agriculture. 6.3 Promotion of JLGs : Banks need to adopt to JLG mode of lending, at least where lending to individual is not possible due to land title/security related issues and also to finance JLGs of fisherwomen. 6.4 De-risking farm income : Given the uncertainties in yield due to vagaries of nature, there is a need to de-risk the farm incomes. Banks may explore financing mini-dairy units/poultry (broiler) units in a big way. 6.5 Area Development Plan (ADP): Cocoa cultivation in Puttur and Sullia taluks is identified by NABARD for further development during 2016-17. NABARD & Department of Horticulture have promoted a number of FPOs/crop specific clusters in all the taluks. The new organizations are expected to have a demonstrative effect in other parts of the district. Bankers, on their own are encouraged to adopt such models and extend cluster based financing to farmers. 7. The way forward : The projections made in the PLP for 2016-17 call for coordinated approach by all stakeholders viz., Banks, Government departments, extension agencies, etc, which in turn is expected to enhance capital formation in agriculture. Banks are required to ensure timely reporting of credit flow data to the Lead Bank for meaningful review in DCC/DLRC meetings and ensuring timely corrective action. Broad Sector wise PLP projections 2016-17 Sr.No Particulars PLP Projections - 2016-17 (` lakh) A Farm Credit i. Crop Production, Maintenance and Marketing 197268.66 ii. Term Loan for agriculture and allied activities 143910.59 Sub-total 341179.25 B Agriculture Infrastructure 32945.85 C Ancillary activities 43118.50 I Credit Potential for Agriculture (A+B+C) 417243.60 II Micro, Small and Medium Enterprises 84846.88 III Export Credit 34000.00 IV Education 75600.00 V Housing 144000.00 VI Renewable Energy 15175.98 VII Others 129542.50 VIII Social Infrastructure involving bank credit 3200.00 Total Priority Sector (I to VIII) 903608.95

Dakshina Kannada PLP 2016-17

Summary of Sector/Sub-sector wise PLP projections - 2016-17 (` lakh) Sr.No. Particulars PLP Projections I Credit Potential for Agriculture A Farm Credit i. Crop Production, Maintenance and Marketing 1,97,268.66 ii. Water Resources 28,074.15 iii Farm Mechanisation 16,502.63 iv Plantation/Horticulture/Sericulture 35,551.58 v Forestry & Wasteland Development 588.38 vi Animal Husbandry - Dairy 26,514.00 vii Animal Husbandry - Poultry 2,486.25 viii Animal Husbandry - Sheep,Goat & Piggery 3,600.90 ix Fisheries 30,556.71 x Others 36.00 Sub-total 3,41,179.25 B Agriculture Infrastructure i Construction of storage facilities (warehouses, market yards, 4,936.50 godowns, silos, cold storage units/ cold storage units) ii Land development, soil conservation, watershed development 21,509.55 iii Others (Tissue culture, agri bio-technology, seed production, bio 6,499.80 pesticides/fertilisers, vermi composting) Sub-total 32,945.85 C Ancillary Activities i Food and Agro Processing 37037.50 ii Others (Loans to Cooperative societies of farmers for disposing of 6,081.00 their produce, agri clinics/agri business centres, loans to PACS/FSS/LAMPS, loans to MFIs for on lending) Sub-total 43,118.50 Total Agriculture 4,17,243.60 II Micro, Small and Medium Enterprises i MSME, Working Capital 64,850.00

Dakshina Kannada PLP 2016-17

Sr.No. Particulars PLP Projections ii MSME - Investment Credit 19,996.88 Total MSME 84,846.88 III Export Credit 34,000.00 IV Education 75,600.00 V Housing 1,44,000.00 VI Renewable Energy 15175.98 VII Others (Loans to SHGs/JLGs, Loans to distressed persons to prepay 1,29,542.50 institutional lenders, PMJDY, loans to state sponsored organisations for SC/ST) VIII Social infrastructure involving bank credit 3,200.00 Total Priority Sector 9,03,608.95

Dakshina Kannada PLP 2016-17

Dakshina Kannada District Profile 1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) 4861 Agro-climatic Zone Western Plains and Ghat- Coastal Midland(Zone-12) No. of Sub Divisions 19 Climate Dry Sub Humid and Per Humid No. of Blocks 5 Soil Type Laterite, red loamy, coastal Alluvium No. of Villages (Inhabited) 354 No. of Panchayats 203 3. LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER

Total Area Reported 477381 Rainfall [mm] Normal Actual 2012 2013 2014 Forest Land 128476 3934 3238 4218 4224 Area Not Available for Cultivation 126006 Variation from Normal -696 +284 +290 Permanent Pasture and Grazing Land 18823 Avail. Of Net annual Net annual draft Balance Land under Misc. Tree Crops 31446 gr.water31279 -Ham recharge- 20645 10634 Cultivable Wasteland 30146 5. DISTRIBUTION OF LAND HOLDING Current Fallow 6168 Classification Holding Area Other Fallow 5512 Nos. % to Total Ha. % to Total Net Sown Area 130804 <= 1 Ha 153155 73 58357.23 33 Total or Gross Cropped Area 158682 >1 to <=2 Ha 37460 18 50799.96 28 Area Cultivated More than Once 27878 >2 Ha 18482 9 69258.01 39 Cropping Intensity [GCA/NSA] 121.3% Total 209097 100 178415.2 100 6. WORKERS PROFILE -2011 Census 7. DEMOGRAPHIC PROFILE [in '000]-2011 census

Cultivators 33810 Category Total Male Female Rural Urban Of above, Small/Marg. Farmers NA Population 2090 1035 1055 1094 996 Agricultural Labourers 29274 Sch. Caste 148 73 75 103 45 Workers in Household Industries 188207 Sch. Tribe 82 41 41 66 16 Workers in Allied Agro-activities NA Literate 1666 864 803 828 838 Other workers 746430 8. HOUSEHOLDS (2011 census) 9. HOUSEHOLD AMENITIES (2011 census)

Total Households 425291 Having brick/stone roofs 419337 Having electricity supply 386164 Rural Households 167040 Having drinking water source 421038 Having indep. toilets 394245 BPL Households 204990 Access to banking services 368727 Having radio/tv sets 285370 10. VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos] Villages Electrified 354 Anganwadis 2102 Dispensaries 79 Villages having Agriculture Power Supply 354 Primary Health Centre 65 Hospitals 196 Villages having Post Offices 354 Prim. Health Sub Cent 7 Hospital Beds 22688 Villages having Banking Facilities 354 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE Villages having Primary Schools 352 Fertiliser/Seed Outlets [Nos] 235 Agriculture Pumpsets[Nos] 97814 Villages having Primary Health Centres 64 Total N/P/K Consumption 17742 Pumpsets Energised [Nos] 97814 Villages having Potable Water Supply 354 Certified[MT] Seeds Supplied [MT] 2.8 Agro Service Centres [Nos] NA Villages connected with Paved Approach 345 Pesticides Consumed [MT] NA Soil Testing Centres [Nos] 1 Roads 13. IRRIGATION COVERAGE [Ha] Agriculture Tractors [Nos] 341 Plantation nurseries [Nos] 9 Total Area Available for Irrigation (NIA + 83731 Power Tillers [Nos] 335 Farmers' Clubs [Nos] 220 IrrigationFallow) Potential Created 72051 Threshers/Cutters [Nos] Nil Krishi Vigyan Kendras[Nos] 1

Dakshina Kannada PLP 2016-17

Net Irrigated Area(Total area irrigated at 72051 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING least once) Area irrigated by Wells 40655 Rural/Urban Mandi/Haat [Nos] NA Wholesale Mkt. [Nos] 13 Area irrigated by Tubewells 9718 Length of Pucca Road [Km] 4484.55 Godown [Nos] NA Area irrigated by LIS 129 Length of Railway Line [Km] 118.63 Godown Capacity[MT] 72500 Area irrigated by Other Sources 21549 Public Transport Vehicle [Nos] 21907 Cold Storage [Nos] 11 Irrigation Potential Utilized (Gross Irrigated 73863 Goods Transport Vehicle [Nos] 27168 Cold Storages [MT] 387 Area) 15. AGRO-PROCESSING UNITS 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS

Type of Processing Activity No Cap.[MT] Crop 2012-13 2013-14 Avg. Food-Rice/Flour/Dal/Oil/Tea/Coffee) 1243 NA Area (Ha) Prod. (MT) Area (Ha) Prod. Yield(Kg/ (MT) Ha) Sugarcane (Gur/Khandsari/Sugar) ---- NA Paddy 54204 194385 55081 137673 2499 Fruit (Pulp/Juice/Fruit drink) 180 NA Arecanut 27921 67985 28232 20282 719 Spices (Masala Powders/Pastes) 650 NA Cashewnut 31119 28586 31288 27542 880 Dry-fruit (Cashew/Almond/Raisins) 625 NA Rubber 10645 21480 10838 21860 2017 Cotton (Ginning/Spinning/Weaving) 170 NA Coconut (lakh nuts) 16163 2149 16296 1701 0.10 Milk (Chilling/Cooling/Processing) 360 NA Banana 3135 78140 3274 64973 19845 Meat (Chicken/Mutton/Pork) 70 NA Note :Arecanut and cashewnut production figures for 2013-14 are in Animal feed(Cattle/Poultry/Fishmeal) 325 NA respect of processed variety. Figures not comparable with earlier year. 17. ANIMAL POPULATION AS PER CENSUS 18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES (2012 Livestock census) Category of animal Total Male Female Veterinary Hospitals/ Dispensaries 96 Animal Markets [Nos] 1 & Primary Veterinary Centres [Nos] Cattle - Cross bred['000] 140 NA NA Mobile Veterinary Clinics [Nos] 5 Milk Collection Centre 378 Cattle – Indig ['000] 113 NA NA Artificial Insemination Centre [Nos] 7 [Nos]Fishermen Societies 23 Buffaloes[No] 3700 NA NA Animal Breeding Farms [Nos] 1 Fish[Nos] seed farms [Nos] 1 Sheep - Cross bred Nil NA NA Animal Husbandry Tng Centres -No 3 Fish Markets [Nos] 86 Sheep – Indigenous (No) 265 NA NA Dairy Cooperative Societies [Nos] 378 Poultry hatcheries [Nos] Nil Goat (No) 24628 NA NA Improved Fodder Farms [Nos] 2 Slaughter houses [Nos] 2 Pig - Cross bred (No) Nil NA NA 19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY Pig – Indigenous (No) 6463 NA NA Fish Production [MT] 149378 Per cap avail. [gm/day] 196 Rabbits 1166 NA NA Egg Production [Lakh Nos] 518 Per cap avail. [nos/p.a.] 25 Poultry - Cross bred (000) 17219 NA NA Milk Production ['000 MT] 198 Per cap avail. [gm/day] 259 Poultry - Indigenous Nil08 NA NA Meat Production [MT] 3898 Per cap avail. [Kg/p.a.] 1.9 Sources (1) District Statistical Handbook – 2014 (2) Census -2011 (3) Livestock Census 2012 (4) Perspective District Industrial Plan – 2013-17 – Dakshina Kannada district.

20. Dakshina Kannada is one of the 3 coastal districts of the state, with predominantly horticultural and industrial economy. There are 5 taluks with, 203 gram panchayats and 354 inhabited villages. Population is 20.90 lakh (2011 census) with rural area accounting for 52.34% . The average population density was 430 as per 2011 census and ranks fifth in the State. It embodies a number of religious centres and educational institutions. Kannada, Tulu and Konkani are the main languages. The literacy rate of the district is 88.6% [Census 2011] making it the highest among all the districts in the State of Karnataka.

21. The total geographical area is 4,861 sq. kms., of which 27% is covered by forests. There are no medium or major irrigation projects. The topography of the district is undulating. The average altitude of

Dakshina Kannada PLP 2016-17

BANKING PROFILE

State : Karnataka Lead Bank : Syndicate Bank

1. NETWORK & OUTREACH (As on 31/03/2015)

Agency No. of No. of Branches No. of non-formal agencies Per Branch Outreach Banks associated Total Rural Semi- Urban mFIs/mF SHGs/JLGs BCs/BFs Villages Household Soc. Commercial Banks 43 477 191 urban 98 215 O 5 104 0.74 891.60s Regional Rural Bank 1 25 15 5 5 2 -- --- 14.16 17011.64 Dist.Cent.Coop. Bank 1 44 40 11 7 3 --- 8.05 9665.70 PCARDB 5 5 4 1 -- --- 70.00 85058.00 PACS 117 266 266 -- --- 3.02 1598.83 Others ( KSFC) 1 1 1 1 -- --- 354.00 425291 All Agencies 168 860 516 115 229 10 104 0.41 494.52 2. DEPOSITS OUTSTANDING FOR THREE YEARS – 2012-13 TO 2014-15 Agency No. of accounts Amount of Deposit [` lakh] 31-Mar-13 31-Mar-14 31-Mar-15 Growth Share 31-Mar-13 31-Mar-14 31-Mar-15 Growth Share (%) (%) (%) (%) Commercial Banks NA NA NA ------2228140 2627145 2979994 13.43 93.34 Regional Rural Bank NA NA NA ------31748 26874 24934 -7.22 0.78 Dist.Cent.Coop. Bank NA NA NA ------113036 144577 184421 27.56 5.78 Others NA NA NA ------2244 3309 47.46 0.10 All Agencies NA NA NA ------2372924 2800840 3192658 13.99 100.00 3.LOANS & ADVANCES OUTSTANDING FOR THREE YEARS – 2012-13 TO 2014-15 Agency No. of accounts Amount of Loan [`lakh] 31-Mar-13 31-Mar-14 31-Mar-15 Growth Share 31-Mar-13 31-Mar-14 31-Mar-15 Growth Share (%) (%) (%) (%) Commercial Banks 312771 ------1115598 1362524 1617020 18.68 89.70 Regional Rural Bank 19883 ------15495 1768 20539 1061.71 1.14 Cooperative Banks 166901 ------105602 114426 155671 36.05 8.64 Others 3029 ------6919 7747 9540 23.14 0.53 All Agencies 502584 ------1243614 1486465 1802770 21.28 100.00 4. CD-Ratio 5. Performance under Financial Inclusion Accounts Agency CD Ratio(%) Agency During 2014-15 Cumulative-31.3.2015

31-Mar-13 31-Mar-14 31-Mar-15 Deposit Credit Deposit Credit Commercial Banks 50.06 51.86 54.26 Commercial Banks NA NA 524624 - Regional Rural Bank 48.80 65.79 82.37 Regional Rural NA NA 58003 - Cooperative Banks 93.42 79.14 84.41 BankCooperative Banks NA NA 6548 - Others ( KSFC) -- 348.33 52.98 Others NA NA - - All Agencies 52.40 53.64 56.47 All Agencies NA NA 589175 - 6. PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2015) Agency Priority Sector Loans Loans to Agr. Sector Loans to Weaker Loans under DRI Loans to Women Sections Scheme Amount % of Amount % of Amount % of Total Amount % of Total Amount % of [` lakh]] Total [` lakh] Total [` lakh]] Loans [` lakh]] Loans [` lakh]] Total Loans Loans Loans Commercial Banks 839513 83.03 282833 77.27 196960 73.10 284 100.00 139771 75.47 Regional Rural Bank 15899 1.57 7281 1.99 12719 4.72 -- -- 1244 0.67 Cooperative Banks 150517 14.89 74159 20.26 58488 21.71 -- -- 41153 22.22 Others ( KSFC) 5201 0.51 1753 0.48 1280 0.48 -- -- 3025 1.63 All Agencies 1011130 100.00 366026 100.00 269447 100.00 284 100.00 185193 100.00

Dakshina Kannada PLP 2016-17

7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS *** Agency 2012-13 2013-14 2014-15 Average Target Ach. Ach. Target Ach. Ach. Target Ach Ach Ach[%] (` lakh) (` lakh) [%] (` lakh) (` lakh) [%] (` lakh) (` lakh) [%] last 3 years Commercial Banks 292251. 361484. 123.69 392190.0 268773.00 68.53 475088 287832 60.58 79.18 Regional Rural Bank 7700.0032 11281.071 146.51 104660.00 100229.00 95.77 11073 19815 178.95 106.39 Cooperative Banks 86110.2 76248.20 88.55 8160.000 11981.00 146.83 140259 215220 153.44 129.39 Others ( KSFC) 1638.480 3804.003 232.17 14990.00 5975.00 39.86 13780 434 3.15 33.59 All Agencies 387700. 452817. 116.80 520000.0 386958.00 74.42 640200 523301 81.74 88.06 8.00 SECTOR -94WISE PERFORMANCE0 UNDER ANNUAL CREDIT PLANS *** Broad Sector 2012-13 2013-14 2014-15 Average Ach[%] Target Ach. Ach. Target Ach. Ach. Target Ach Ach last 3 (` lakh) (` lakh) [%] (` lakh) (` lakh) [%] (` lakh) (` lakh) [%] years

Crop Loan 91410.3 93692.14 102.50 135350 130555 96.45 157350 90296 57.39 81.89 Term Loan (Agr) 104289.7 89943.11 86.24 94750 68931 72.75 147500 124630 84.49 81.81 Total Agri. 195700 183635.25 93.84 230100 199486 86.69 304850 214926 70.50 81.85 NonCredit-Farm 39800 79085.00 198.71 75700 86878 114.77 115750 98687 85.26 114.44 OtherSector Priority 152200 190097.69 124.90 214200 100594 46.96 219600 209688 95.49 85.39 TotalSector Priority 387700 452817.94 116.80 520000 386958 74.42 640200 523301 81.74 88.06 Sector 9. RECOVERY POSITION ++

Agency 2009-10 2010-11 2011-12 Average Rec. Demand Recovery Recovery Demand Recovery Recovery Demand Recovery Recovery [%] in last 3 [`’000] [`’000] [%] [`’000] [`’000] [%] [`'000] [`’000] [%] years Commercial Banks NA NA NA NA NA NA NA NA NA NA Regional Rural NA NA NA NA NA NA NA NA NA NA CooperativeBank Banks NA NA NA NA NA NA NA NA NA NA Others NA NA NA NA NA NA NA NA NA NA All Agencies NA NA NA NA NA NA NA NA NA NA *** as per SLBC feedback. ++ data not available with LDMs office.

10. Performance of credit agencies: The total business of the banks was `49,954 crore. Total deposits stood at `31,927 crore as on 31.03.15 while advances as on that date stood at `18,027 crore. The increasing trend in CD ratio at 56.47% was an encouraging trend. Banks need to step up lending to term loans which result in capital formation and increased crop loans for farm activities and working capital for MSMEs. Under the Annual Action Plan, banks were not able to achieve the DCP target of ` 6402.00 crore for 2014-15. The disbursements stood at `5,233.01 crore. While the performance under Primary Sector stood at 70.5%, the performance under Secondary sector stood at 85%. The performance under OPS stood at 95.49%.