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Agenda 118

Agenda 118

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The 118 th meeting of State Level Bankers’ Committee (SLBC) Haryana will be held on 14 th November, 2011 at 10.15 A.M.

at Hotel Shivalik View, Sector 17, Chandigarh. Following issues shall be taken up for discussions in the meeting:-

ITEM NO. 1

CONFIRMATION OF MINUTES OF 117 TH MEETING OF STATE LEVEL BANKERS' COMMITTEE (HARYANA) HELD ON 10 th AUGUST 2011. 117 th 10.08.2011 09.09.2011 Nil

Last Meeting of SLBC Held on Minutes Emailed/Circulated on Comments Received

The house may confirm the circulated minutes. ITEM NO. 2 ITEM NO. 2(i) PROVIDING KCCs TO ALL NON DEFAULTER FARMERS

The Secretary, Department of Financial Services, Ministry of Finance, Govt. of India vide letter dated 19.08.2011 addressed to the Chairman of Convener Bank, advised that each non defaulter farmer in the State of Haryana be provided with KCC facility by 30.09.2011, which was later extended to 15.10.2011. In order to accomplish this task, Convener SLBC held a meeting with major Banks & Govt. Departments on 20.08.2011 & 23.08.2011. Seeing importance of the matter as also the short period at disposal, the convener SLBC vide letter dated 24.08.2011 also requested the Chief Secretary to Govt. of Haryana to issue suitable instructions to the Dy. Commissioners in the State to actively involve the officials of Revenue, Cooperation, Panchayat, Rural Development Department for identifying such
Agenda & Background Papers of 118th Meeting of SLBC Haryana Page 1

farmers who were not having KCC, for covering them under KCC/ Crop Loan. In this regard, a special SLBC meeting was convened on 12.09.2011 which was chaired by Financial Commissioner & Principal Secretary (Agri.) to Govt. of Haryana, wherein following decisions were taken:1. Special DCC Meetings to be held and Action Plan as per Annexure ‘A’ to letter dated 07.09.2011 of Secretary, Department of Financial Services, MOF, Govt. Of India (circulated in the meeting) in respect of each district be put in place and approved by DCC by 20.09.2011. 2. Each non-defaulter farmer is to be given a Kissan Credit Card by 15.10.2011. The list of farmers in each village can be had from Local Revenue office of the village concerned. The voter list of the village can also provide the information of the names of persons living in the village. The mapping of the list with the list of loanee farmers in the books of the allocated bank under Service Area Approach would give an idea if the farmer has a KCC or not.
3. Each bank is to work out a scheme, if none exists, for giving Savings cum

Overdraft facility to the other families, which do not have any land & live in the Rural Areas. This account is to have an OD limit up to ` 10,000/- against personal guarantee of the villager and he is to use the bank account for savings or for meeting the requirements of consumption purposes on a need base basis.

4. Special Camps to be held in each district Bank-wise/ Block-wise every Wednesday till 15.10.2011 for distribution of KCCs. First KCC Distribution Camp would be held on 21.09.2011. The bankers, LDMs, DDMs, State Govt. officials to actively participate in these camps. Dy Director (Agri) at District level would be the Nodal office to Coordinate the activities relating to KCCs issuance. State Government to ensure active involvement/ presence of officials from Revenue, Cooperative, Panchayat & Rural Development Department in identifying the farmers for KCCs. LDMs will report the progress to SLBC on weekly basis for reviewing the performance.
5. Green Initiatives - Payments of Subsidy/ grant loan to

beneficiaries by

Government Departments

Agenda & Background Papers of 118th Meeting of SLBC Haryana

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It was apprised that Govt. of India, Ministry of Finance has desired that w.e.f 01.10.2011 all payments relating to govt. grants/subsidy be credited through e-payments by the banks. The Directorate of Institutional Finance & Credit Control is requested to take up the matter with concerned department suitably to ensure that the instructions of GOI, MOF are complied with letter and spirit. 6. Other Matters In some of the districts during this period by-election of Lok Sabha, (Hissar Parliamentary Constituency) & SGPC Elections are to be held. State Government was requested to ensure that adequate support from different departments is provided to Banks/ LDMs so that process of providing KCCs to farmers is not hampered. The FC & PS (Agriculture) vide his letter dated 13-09-2011 advised all the Dy. Commissioners of all districts in the State to involve line department functionaries in identifying eligible KCC farmers. LDMs were advised by Convener Bank to accomplish the task by the stipulated date. Position of KCCs issued in the districts of Haryana w.e.f 1-82011upto 15.10.2011
Sl. No. 1 Name District 2 of No. of KCC Camps held 3 Total No. of KCCs issued 4 Amount (` In Lac) 5 KCCs issued to nondefaulters 6 Amount (` In Lac) 7

1. 2. 3. 4. 5. 6. 7. 8. 9.

Panchkula Ambala Yamunanagar Kurukshetra Kaithal Jind Karnal Panipat Sonepat

25 4 2 138 107 44

89 575 1349 1064 3249 6279 2641 1048 1635

277 1303 3893 2768 3555 5403 4752 2309 3088

81 575 1231 1064 3249 112 2056 848 1458

243 1303 3621 2768 3555 183 3624 1770 2638 Page 3

Agenda & Background Papers of 118th Meeting of SLBC Haryana

10 Hissar . 11 Fatehabad . 12 Sirsa . 13 Bhiwani . 14 Rohtak . 15 Jhajjar . 16 Rewari . 17 Narnaul . 18 Mewat . 19 Palwal . 20 Faridabad . 21. Gurgaon Total

43 356 56 21 11 5 160 87 82 15 12 1168

3498 3248 2544 1524 5766 6356 8240 4957 1469 19090 3376 6582 84579

5957 4980 7242 2345 4580 5088 4924 3136 1707 13000 2826 5718 88851

3498 2781 2544 1524 4719 6356 7364 4460 1012 19090 3376 4178 71576

5957 4682 7242 2345 3420 5088 3671 2825 1234 13000 2826 3125 75120

The Office of Director General (Agriculture), Haryana vide communication dated 02.11.2011 advised all the Dy. Directors in the State to coordinate with the LDMs in identification of eligible farmers & issuance of KCCs in the District. The office of the Secretary Department of Financial Services vide letter dated 2410-2011 advised all the Conveners SLBC that Service Area Plan of each district on FIP as per annexure A of their letter dated 7-9-2011 be uploaded on District
Agenda & Background Papers of 118th Meeting of SLBC Haryana Page 4

website maintained by NIC. The Convener Bank has advised all LDMs in the State to comply with the above instructions and send confirmation to Convener SLBC. A meeting of Conveners of SLBC held on 03-11-2011 in the Conference Hall of Department of Financial Services, MOF,GOI, New Delhi was Chaired by Shri DK Mittal, IAS, Secretary, Department of Financial Services wherein following points emerged : All the bankers should ensure that the accounts of the migrant workers and other poor segment of society are opened without any inconvenience to them by following liberalized KYC norms.  Bankers to have more pro customer approach and senior officials may conduct weekly video conferencing to review the number of accounts opened of the above segment.  Bankers to popularize recently launched Swavalamban Project, which envisages an incentive of Rs 1000 to pensioner who saves any amount between `1,000/- to `12,000/- in a year.  Bankers to once again make an effort to sanction KCC loan to the eligible farmers in coordination with district authorities.  Managers of rural branches must visit each and every village, preferably 2 villages in a week.  Banks to formulate General Credit Card (GCC)/ OD linkage scheme for people, who are not eligible for KCCs.  Joint review of the progress of RRBs by Sponsoring Bank, NABARD & RBI instead of individual review by each of them.  Bankers should take up with Chief Secretary/ Concerned Department of the State for E-payments of all State Govt. payments. House may discuss. ITEM NO. 2(ii): NEW STAR RATING – NO. OF CROP LOAN ACCOUNTS

NABARD, RO Chandigarh in terms of communication dated 18.10.2011 has informed that Ministry of Finance, Govt. of India has advised to cover all eligible farmers with KCC immediately and has asked to furnish the data on new crop loan accounts on a monthly basis. All Banks are requested to ensure that the following data in respect of their banks is received by the Convener Bank by 5th of succeeding month starting from October 2011, to enable the Convener Bank to send bank-wise achievement to NABARD positively by 10th of every succeeding month.
Agenda & Background Papers of 118th Meeting of SLBC Haryana Page 5

S. No.

Particulars

New Crop Loan Accounts New KCC A/cs Accounts Cumulative opened during renewed number of the month during the KCC at the month end of the month

1.

Commercial Banks

The Controlling Heads of all the Commercial Banks are requested to submit the above information in time to Convener Bank on monthly basis. ITEM NO. 3 ITEM NO.3(i) STATUS REPORT OF ISSUES FLAGGED IN 117 TH MEETING OF SLBC HARYANA HELD ON 10.08.2011. MANAGEMENT OF LAND UNDER LEASE ARRANGEMENT IN THE EVENT OF DEFAULT IN REPAYMENT OF LOAN.

The Convener Bank was informed by RBI, New Delhi that during the course of meeting between the Hon’ble Chief Minister, Haryana and Hon’ble Governor, RBI on 15.10.2010, it was suggested to RBI that in case of default in the loan account, the land of the farmer held as collateral should not be auctioned instead be managed under lease arrangement under which 50% income may be used to realize the bank dues & rest 50% should go to the farmer. The land mortgaged to the bank be restored to the borrower after full recovery of the loan amount. The issue was discussed in 115th Meeting of SLBC Haryana held on 28.02.2011 wherein it was decided that a sub-committee be constituted to resolve the issue. Accordingly, a sub-committee was constituted under the chairmanship of Shri Roshan Lal, IAS, FC & PS (Agriculture), Govt. of Haryana. The sub-committee held its meeting on 08.04.2011 and after deliberations following views emerged:
 There is no harm in trying the proposed system of management of land under

“lease arrangement” by the banks.  In case the farmer does not give his consent for the same or if the recovery of the loan could not be effected under lease arrangement up-to a specified period say seven years, the bank may resort to the recovery procedure by way of sale of land.  The bankers & NABARD were not in favour of the above recommendations.

Agenda & Background Papers of 118th Meeting of SLBC Haryana

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The issue was taken up in the 116th Meeting of SLBC Haryana held on 11.05.2011 wherein the above views of the Sujb-Committee were discussed in detail and the house decided to refer the matter to RBI as it may have pan India repercussions. The Convener Bank took up the matter with RBI, New Delhi vide letters dated 08.06.2011 & 06.09.2011 for the decision on the issue of Management of Land on Lease Arrangement. Now the Convener Bank has received a communication dated 20-10-2011 from RBI, New Delhi vide which it is informed that the matter has been examined by their central office and it has been advised that such a scheme of lease arrangement will neither be feasible nor viable and it will vitiate the credit atmosphere in the state. It may invite legal complications for banks and credit to agriculture sector might be severely affected. Such a scheme will cause the banks resources to be diverted away from their core activities without making any substantial gain on the recovery front. RBI further stated that as per Section 9 of BR Act 1949 - “No banking company shall hold any immovable property howsoever acquired, except such as it is required for its own use, for any period exceeding seven years from the acquisition thereof or from commencement of this Act.” The act therefore discourages the banks from holding non banking assets beyond a specific period. If this scheme comes into existence, the banks may be forced to hold non banking assets beyond the specific period, as 50% of the lease rentals would not be sufficient to recover the loans within that period. Thus, such a scheme would also be violating the spirit of Section 9 of the Act. Therefore, RBI was not in favour of the proposal made by the State Government. ITEM NO. 3(ii) FINANCIAL LITERACY IN SCHOOL CURRICULUM

In the 117th meeting of SLBC Haryana held on 10.08.2011, it was informed by the Director, IF & CC, Haryana that Secretary, Board of School Education has referred the matter to NCERT and to the committee of experts for their view on the issue and further progress in the matter is awaited. In the above-mentioned meeting Regional Director, RBI, Chandigarh stated that it is being implemented in the States like Karnataka & Kerala and the Govt. of Haryana should pursue the issue appropriately. The representative of IF & CC may apprise the latest position in this regard.
Agenda & Background Papers of 118th Meeting of SLBC Haryana Page 7

ITEM NO. DEBT SWAP SCHEME – RAISING THE LIMIT FROM `50,000/3(iii) TO `1,00,000/In the 117th Meeting of SLBC Haryana held on 10.08.2011, the house was informed that Boards of PNB, OBC, UBI, HGB & SBI ,BOI, SBOP have approved raising the debt swap limit from `50,000/- to `1,00,000/-. The Regional Director, RBI, Chandigarh mentioned that SLBC has already approved the enhancement of debt swap limit, therefore there should not be any problem in approving the same by the remaining banks. The remaining banks are again requested to appraise the house of the decision of their respective boards on the above issue. ITEM NO. 3(iv) PROGRESS UNDER DEBT SWAP SCHEME As per Extant guidelines, at least 3% of the disbursements for Agriculture are earmarked for extending loans under “Debt Swap Scheme”. The summarized position of achievement up to September, 2011 under Debt Swap Scheme is as under:(`In Lakh)
Lending institution Public Sector Banks Private Banks Regional Rural Banks Coop. Banks Total Disbursement under Agriculture 797608 60151 174060 313160 1344979 Target (3% of Disb. Under Agriculture) 23927 1805 5222 9395 40349 Achievement under Debt Swap Scheme 10913 (46%) 0 (0%) 1588 (30%) 0 (0%) 12501 (31%)

The Bank wise position is available in Annexure No. 1. From the data, it is observed that an amount of ` 125.01 Crore has been granted under the captioned scheme upto September 2011, which is only 31% of the allocated target. Achievement of Pvt. Banks & Co-operative is NIL

Agenda & Background Papers of 118th Meeting of SLBC Haryana

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The Controlling Heads of banks are requested to advise their field functionaries to lend liberally under the scheme and get the farmers out of clutches of money lenders. The house may deliberate. ITEM NO. 4 PROVIDING BANKING SERVICES IN EVERY UNBANKED VILLAGE HAVING POPULATION OF OVER 2000 BY MARCH 2012

1838 unbanked villages in the State of Haryana with population of more than 2000 were allocated to different banks on the basis of service area approach for implementation of Financial Inclusion Plan, the Controlling Heads of the Banks were requested to get approved the roadmap from the respective boards specifically mentioning the time period (roadmap) and the mode of technology to be used in this regard. Status of Financial Inclusion Plan-Road Map & Progress PROGRESS UNDER FINANCIAL INCLUSION PLAN (FIP) The break-up of villages allocated to Public Sector Banks/ Pvt. Sector Banks/ RRBs is as under:Sr. No. 1. 2. 3. Category of Banks Public Sector Banks Private Sector Banks RRBs Total Number of Banks 18 2 2 22 Villages Allocated 1338 2 498 1838

The target date for covering the allocated villages was initially fixed for 31.03.2011 and was further extended to March 2012. Banks have revised their road maps and the consolidated revised road map submitted by the member banks to Convener Bank & progress made is given as under:Villages proposed to be covered during year 2010-11 2011-12 Total 1135 703 1838
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Agenda & Background Papers of 118th Meeting of SLBC Haryana

The progress (cumulative) made by banks under FIP as on 30.09.2011 is as under:Progress up to Brick & ICT Based BC Total Mortar Model Branch 31.03.2011 30.06.2011 30.09.2011 Remaining to be covered 29 47 59 1026 1131 1355 1055 1178 1414 424

The progress made by Banks up to September 2011 vis-à-vis the roadmap provided by them is given below:Name of the Bank No of villag es alloca ted 502 23 7 19 164 62 42 10 97 3 101 216 230 10 21 1 32 268 27 1 2 1 1838 Model to be Adopted ICT Based 468 23 7 19 159 40 42 10 97 3 101 213 201 10 21 1 22 265 27 1 2 1 1732 Brick & Mortar 34 5 22 3 29 10 3 106 Road Map March 11 490 19 88 62 11 10 8 3 60 190 127 9 8 10 24 13 1 2 1 1135 March- 12 12 23 7 76 31 89 41 26 103 1 13 1 22 244 14 703 Progress upto March 2011 438 19 88 57 11 10 8 3 60 190 91 9 17 29 24 1 1055 Progress upto June 2011 443 1 19 88 57 11 10 8 3 60 199 187 10 21 30 30 1 1178 Progress upto Sept. 2011 443 1 19 144 57 11 10 8 3 84 216 225 10 1 30 151 1 1414

PNB Allahabad Bank Bank of Baroda Bank of India SBOP Syndicate Bank Canara Bank Corp. Bank CBI IOB OBC SBI GGB Indian Bank UCO Bank ICICI Bank UBI HGB PSB SBBJ BOM HDFC Bank Total

Agenda & Background Papers of 118th Meeting of SLBC Haryana

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ITEM NO. 4(i)

EVOLVING ACTION PLAN FOR REMAINING UNBANKED VILLAGES WITH POPULATION 1000-2000

While reviewing the progress of banks on FIP in the 117th meeting of SLBC, held on 10.08.2011, it was desired by the House that banks should first complete the process of FIP in respect of villages with population more than 2000 by January 2012, so that time is available with the banks to chalk out the strategies under second phase of FIP in respect of villages with population 1000-2000. In the said meeting the allocation of villages made by LDMs to banks in DCCs meetings, was also approved. However, some realignment was made by the LDMs in the number of unbanked villages with population 1000-2000. The District-wise and Bank-wise allocation of 1716 unbanked villages is given on Annexure no. 2 The House may discuss & approve. ITEM NO. 4(ii) SWAPPING OF VILLAGE

The Convener Bank has received a communication from Head Office of State Bank of Patiala vide which it is requested that 16 villages with population more than 2000 earlier allotted to their bank for FIP purpose in District – Fatehabad, Rohtak & Jind be allocated to Punjab National Bank as Village Morkheri in district Rohtak has been allotted to PNB by the Lead District Manager. Similarly, Village - Dhand & Kirdhan in District Fatehabad have been allotted to PNB by the Lead District Manager. Further, it is also recommended that following 13 villages where BCs of Punjab National Bank are working, be reallocated to PNB and delete the same from the list of State Bank of Patiala:

(Villages - Beharkha, Sudkain Khurd, Sudkain Kalan, Tarkha, Jheel, Kheri Safa, Kabarchha, Kharakbura, Lodhar, Kheri Gaindawala, Kheri Masania, Alipura & Malvi – District Jind). Before placing the matter of reallocation of villages from SBOP to PNB to SLBC for final approval, Convener bank has requested the concerned LDMs to get the same approved in DCC meetings. The House may discuss. ITEM 5 NO. AGRICULTURE DEBT WAIVER & DEBT RELIEF SCHEME (ADWDRS), 2008 - GRANTING OF FRESH LOANS
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Agenda & Background Papers of 118th Meeting of SLBC Haryana

5.1 Debt Waiver The progress report of disbursement of fresh loans to beneficiaries under Debt Waiver up to 30.09.2011 is as under:(Amount ` in Lac) Lending Institutions Public Sector Banks Private Sector Banks RRBs Cooperative Banks Total Crystallization of Claims Under Waiver Accounts 82364 280 19017 310754 412415 Amount 40563 461 7692 102682 151398 Fresh Loans Disbursed to beneficiaries of Waiver Accounts Amount 30037 24627 0 0 7257 6849 71336 33186 108630 64662

Bank-wise/ District-wise information is as per Annexure No. 3.1 Observations Banks in Haryana have provided fresh credit amounting to ` 646.62Crore, which is 43 % of total waiver by covering 108630 accounts i.e 26 % of farmers benefited under the scheme.

• The Public Sector Banks have provided fresh loans to the extent of 61% of the amount waived, covering 36% of farmers under the scheme. • RRBs have provided fresh loans to the tune of 89% of the amount waived & 38% of farmers have been covered under the scheme. The cooperative banks have given fresh loans amounting to ` 331.86 Crore i.e.32 % of the amount waived, covering 23% of the farmers under the scheme.

• The Private Sector banks have not given any fresh loan to the eligible farmers. 5.2 Debt Relief The progress report of disbursement of fresh loans to beneficiaries under Debt Relief up to 30.09.2011 is as under:(Amount ` in Lac)
Agenda & Background Papers of 118th Meeting of SLBC Haryana Page 12

Lending Institutions Public Sector Banks Private Sector Banks RRBs Cooperative Banks Total

Crystallization of Claims Under Relief Accounts 59248 677 6896 100103 166924 Amount 19480 227 2232 17877 39816

Fresh Loans Disbursed to beneficiaries of Relief Accounts Amount 15731 22546 0 0 3184 5845 79698 42995 98613 71386

Bank-wise/ District-wise information is as per Annexure No. 3.2 Observations Banks in Haryana have provided fresh credit amounting to ` 713.86 Crore, which is 179% of total relief, covering 98613 accounts i.e 59% of farmers benefited under the scheme.

• The Public Sector Banks have provided fresh loans to the extent of 114% of the amount of relief, covering 9.7% of farmers under the scheme. • RRBs have provided fresh loans to the tune of 262% of the amount of relief & 46 % of farmers have been covered under the scheme. The cooperative banks have given fresh loans amounting to `429.95 Crore i.e. 240% of the amount of relief, covering 80% of the farmers under the scheme.

• The Private Sector banks have not given any fresh loan to the eligible farmers. The Controlling Heads of Banks are requested to analyze the reasons for less coverage of farmers under fresh lending and also consider all farmers for fresh lending, who had received the benefit under the ADWDR Scheme 2008. ITEM 6: NO. ELECTRONIC BENEFIT GOVERNMENT SCHEMES TRANSFER (EBT) FOR

The EBT implementing banks are requested to step up the pace of opening of pension accounts of the remaining beneficiaries so that all of them are able to get the pension through EBT.

Agenda & Background Papers of 118th Meeting of SLBC Haryana

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As at 21.10.2011, of 2118497 pensioners under EBT Scheme in the State of Haryana, 1796037 are drawing pension through banks. The banks that have been allocated districts for EBT are requested to step up the pace of opening of pension accounts of the remaining beneficiaries so that all the beneficiaries are able to get pension through banks electronically. The progress of banks implementing EBT in the State of Haryana as at 21.10.2011 is given as under:Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13 14. 15. 16. 17. 18. 19. 20.A Name of the District Kurukshetra Panchkula Hisar Panipat Sonepat Bhiwani Ambala Karnal Kaithal Sirsa Palwal Faridabad Yamunanagar Jhajjar Rewari Narnaul Fatehabad Mewat Jind Rohtak Total Rohtak Name of the Bank to whom allotted HDFC Bank Ltd. Corporation Bank State Bank of India ICICI Bank Ltd. ICICI Bank Ltd. ICICI Bank Ltd. ICICI AXIS Bank Ltd. AXIS Bank Ltd. “ do “ “do” “ do “ ICICI ICICI Union Bank of India “ do “ “ do” “do” OBC Punjab National Bank Non-EBT Accounts Punjab National Bank Total Beneficiaries as per Banks 91891 27876 158621 83360 131921 159282 93280 137107 113538 133096 79692 66796 106901 92839 80023 85500 107020 75065 134366 20387 1978561 81776 Pension Accounts with banks 79364 23229 147588 76023 114515 148691 85046 124841 104924 126933 75812 53412 84625 78122 77561 82181 103279 62915 128040 18936 1796037 68019
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20.B

Agenda & Background Papers of 118th Meeting of SLBC Haryana

21.

Gurgaon Grand Total

CBI

58160 2118497

33508 1897564

All the Controlling Heads of Banks implementing the Scheme are requested to initiate suitable steps for its timely disbursement of social benefits as per terms & conditions of the MOU. The representative from the Social Welfare Department, Haryana may apprise the progress in the house. House may review. ITEM NO. 7 CENTRAL SCHEME TO PROVIDE INTEREST SUBSIDY ON EDUCATION LOAN

The Convener Bank has not yet received any communication from the State Govt with regard to designating an officer to issue income certificate to the students of the economically weaker section of the Society for availing interest subsidy on the education loans raised from the banks. A list received from the office of IBA indicating the authority appointed in the different states for the purpose was also sent to the office of IF&CC and Revenue Department, Govt. of Haryana for taking early decision in the matter. The representative from IF & CC, Haryana informed in the 3nd Steering Committee Meeting held on 21.10.2011 that the matter has been taken up with Revenue Department and the response is awaited. With a view to discuss the issue, a meeting is scheduled to be held in the office of Director, IF & CC, Haryana on 08.11.2010. The representative from IF & CC is requested to apprise the outcome of the meeting as also the decision taken by the Revenue Department, Haryana on the issue. ITEM NO. 7(i): BANKWISE SCHEME PROGRESS UNDER EDUCATION LOAN

The performance of Banks under this scheme is given below: (Amt. ` In Crore) Year September2009 No. of A/cs 30091 Balance Outstanding 701.25 Increase Absolute 200.49 %age 40.0 PPs
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Agenda & Background Papers of 118th Meeting of SLBC Haryana

September2010 33616 812.07 September2011 37072 877.03 Bank-wise data is given in Annexure No. 4

110.82 64.96

15.8 PPs 8.0 PPs

During the review period, the education loans in the state registered an increase of ` 64.96 Crore from ` 812.07 Crore as at Sept. 2010 to ` 877.03 Crore as at Sept. 2011, thus showing YOY growth of 8 %. During the period ended Sept. 2011, banks have disbursed ` 84.38 Crore to 5208 students. Keeping in view the requirement of financial support to the meritorious students who wish to study further and also the importance of education being attached by Haryana Government, all banks are requested to improve the performance under Education Loan scheme. ITEM 8: NO. SETTING UP OF RURAL SELF EMPLOYMENT TRAINING INSTITUTES (RSETIs) UNDER SGSY.

Presently 9 RSETIs are functioning in the State of Haryana. With a view to open RSETIS in all the Districts of the State, it was resolved in the 116th SLBC meeting held on 11-05-2011 that State Govt should allot the land at the earliest for establishing the remaining RSETIs. Financial Commissioner & Principal Secretary (Development & Panchayat Department), Govt. of Haryana vide endorsement letter no. SBA-1-2011 dated 04.07.2011 addressed to all the Dy. Commissioners in the State of Haryana has informed that the State Government has decided in principle that the identified Gram Panchayats may be permitted to make available its shamilat land half (½) an Acre for the purpose of establishing and running of Rural Self Employment Training Institutes (RSETIs) subject to the condition that bank would have to pay usage charges at the rate of Rs. 12,000/- per half an Acre per year to the Gram Panchayats and signing of Tripartite Memorandum. A detailed draft of Memorandum of Agreement to be used in this regard has been prepared in consultation with Rural Development Department, Haryana and Convener (SLBC) Haryana. In the 3rd steering Committee meeting held on 21-10-2011, the representative of Rural development department informed that possession of land has been taken in District Rewari and Mewat The remaining LDMs are requested to coordinate with district authorities and concerned Panchayats for taking possession of the land for establishing RSETIs. From the performance of RSETIs as at 30.09.2011, it has been observed as under:-

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• In total 604 batches, skill development programmes for 22604 trainees were held for self-employment under different fields like Agriculture EDPs, Skill EDPs, General EDPs, PMEGP/ Govt. Sponsored Programmes. • Of 604 batches, 414 programmes were held for SC/ ST and other minority communities. • In 267 batches, 7063 women participated in the training programmes. • In one batch, 158 handicapped participated in the skill development training programme. Performance of the RSETIs functioning in the State up to September 2011 is given in Annexure No. 5 The house may review. ITEM 9 NO: FINANCIAL LITERACY AND CREDIT COUNSELING CENTRES (FLCCs)

Banks have set up 21 FLCCs in the State of Haryana. Following 2 FLCCs were functioning on old model. Name of the District 1.Rewari 2. Mewat Name of the Bank Gurgaon Gramin Bank Syndicate Bank Date of Opening 22.02.2008 09.07.2007

The Convener Bank took up the matter with Gurgaon Gramin Bank & Syndicate Bank for switching over the functioning of their FLCCs at Rewari & Mewat respectively to New Model. The Gurgaon Gramin Bank has now informed that the FLCC of their bank at Rewari has been closed. LDM Rewari has been requested to discuss the issue in the DCC meeting and then inform the outcome to SLBC. The General Manager, Syndicate Bank was also requested to open FLCC at Gurgaon at the earliest as it was informed in the 116th Meeting of SLBC Haryana that FLCC at Gurgaon would be opened in the month of June 2011. The response from Syndicate Bank is awaited. The representative of Syndicate Bank is requested to inform the latest progress to the house. The progress made by Financial Literacy & Credit Counselling Centres as at September, 2011 is given in Annexure No. 6

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• As per the data, 37180 persons contacted FLCCs and made enquiries regarding deposit accounts, loan accounts, debt swap scheme and sought guidance regarding investment avenues. • After making enquires in FLCCs, 16227 persons have availed different financial services from the banks up to the period under review. • FLCCs also organised 375 seminars wherein 18626 persons participated and were made aware in respect of Financial Inclusion, preventive counselling and Customer Rights. The House may review the progress. ITEM 10 10.1 NO. REVIEW OF PERFORMANCE AS AT THE END SEPTEMBER 2011 (COMMERCIAL BANKS AND RRBs) BASIC STATISTICAL DATA (KEY PARAMETERS) OF

The comparative position of Key Banking Parameters is given below: (Amt. ` in Crore)
Parameters Sept. 2009 Sept. 2010 Sept. 2011 Variation &%age growth (Sept. 10/ Sept. 09) Variation &%age growth (Sept. 11/ Sept. 10)

No .of 2205 2410 2653 205 (9.2%) Branches Deposits 90271 105704 126891 15433 (17.1%) Advances 60814 78328 92320 17514 (28.8%) PS 32743 39757 45630 7014 (21.4%) Advances Agriculture 16808 19131 21348 2323 (13.8%) Adv. To Dir. 12393 14362 16520 1969 (15.9%) Agri. MSE 8970 12154 15790 3184 (35.5%) Other PS 6965 8471 8492 1506 (21.6%) Advances to 6385 8070 11406 1685 (26.4%) WS Advs. To 3.98 7.68 8.59 3.70 (92.9%) DRI Bank-wise data is given on Annexure No. 7.1-7.6

243 (10%) 21187 (20%) 13992 (18%) 5873 (15%) 2217 (12%) 2158 (15%) 3636 (30%) 21 (0.25%) 3336 (41%) 0.91 (12%)

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Page 18

While reviewing the progress under key-parameters, following trends have been observed: 10.2 BRANCHES During the period October 2010 to September 2011,243 branches of Commercial Banks and RRBs have been added thereby raising the total number of bank branches in the State to2653 as at September 2011 from 2410 branches as at September 2010. Area wise analysis in regard to Branch Expansion is summarized below:No. of Branches Rural Semi Urban Urban Total Observations: During the review period, increase of number of branches of banks in urban areas was of the order of 66. Semi-urban area registered an increase of 96 branches, whereas the increase of branches in rural area is 81. Sept. 2009 793 520 892 2205 As At Sept. 2010 842 570 998 2410 Sept. 2011 923 666 1064 2653 Variation Sept. Sept. 10/09 11/10 (Absolute) (Absolute) 49 81 50 96 106 66 205 243

This is for information of the House.

10.3 EXPANSION OF BANKING NETWORK 154 branch licenses were pending as at 30.09.2011 with banks for opening of new branches. Some of the major banks with pending licenses are: Canara Bank (17), Corporation Bank (9), SBI (9), UCO Bank (10), AXIS Bank (11), IDBI (18), HDFC Bank (16). Controlling Heads of these banks are requested to take steps for opening of these branches at the earliest. This is for information of the House.
Agenda & Background Papers of 118th Meeting of SLBC Haryana Page 19

Bank wise and district wise position of licenses in hand is available at Annexure No. 7.7 10.4 DEPOSITS

Total deposits have increased by `21713 Crore from `105718 Crore as at September 2010 to ` 126891 Crore as at September 2011, thereby shows a growth of 21%. Further, area-wise analysis of Deposit Mobilization has been summarized below: (` in Crore) Aggregate Deposit Rural Semi Urban Urban Total Observations • During the review period, the growth of deposit mobilization in urban area is 20 %. • In rural area the deposit grew by17% and in semi-urban area the growth was22%. 10.5 ADVANCES

As At Variation Sept. Sept. Sept. Sept.10/09 Sept.11/10 2009 2010 2011 (Absolute) %age (Absolute) %age 15316 16636 19523 1320 8.6 2887 17% 19100 20375 24936 1275 6.7 4561 22% 55855 68692 82431 12837 22.9 13739 20% 90271 105178 126891 15432 17.1 21713 21%

Total advances have increased by `14217 Crore from `78103 Crore as at Sept. 2010 to ` 92320 Crore as at Sept. 2011 showing a growth of18%.

Further, area-wise analysis of Aggregate Advances has been summarized below: Aggregate Adv. Rural Semi Urban Urban Total As At Sept. 2010 10874 14088 53366 78103 (Amt. ` In Crore) Variation Sept. 10/09 Sept. 11/10 (Absolute) %age (Absolute) %age 2258 26.2 1384 13% 1415 11.2 2358 17% 13841 35.0 10250 19% 17514 28.8 14217 18%

Sept. 2009 8616 12673 39525 60814

Sept. 2011 12258 16446 63616 92320

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Observations • The growth in urban area was19%. • The growth in semi-urban area was17%,whereas the advances in rural area witnessed growth of 13%. 10.6 PS ADVANCES Advances under Priority Sector have increased from `39757 Crore as at September 2010 to `45630 Crore as at September 2011, thus showing an increase of `5873 Crore or 15%. The share of incremental PS advances to incremental total advances during the period under review is 42%. 10.7 AGRICULTURE ADVANCES Total outstanding under agriculture advances increased from `19131Crore as at September 2010 to `21348Crore as at September 2011, showing an increase of ` 2217Crore or 12 %. The share of incremental agriculture advances to incremental total PS advances during the period under review is 38%. 10.8 MICRO & SMALL ENTERPRISES (MSE) Advances to Micro & Small Enterprises have increased to `15790 Crore as at September 2011 from ` 12154 Crore as at September 2010, thereby showing an increase of ` 3636 Crore (30%). The share of incremental advances to Micro & Small Enterprises to incremental total PS advances during the period under review is 45%.

10.9 WEAKER SECTOR ADVANCES Weaker Sector advances increased by `3336 Crore on year-on-year basis from ` 8070 Crore as at September 2010 to ` 11406Crore as at September 2011, showing a growth of41% as compared to 26% growth during the same period last year. 10.10 DRI ADVANCES

The DRI advances have increased by ` 0.91Crore from ` 7.68Crore as at September 2010 to ` 8.59Crore as at September 2011, registering a growth of12%.
Agenda & Background Papers of 118th Meeting of SLBC Haryana Page 21

The performance of all Scheduled Banks in lending under DRI scheme is far below the stipulated target of 1% of aggregate advances of the previous year. Adequate number of persons falling within the bracket of above mentioned income criteria is available in the society. The banks should take suitable steps to extend finance to eligible persons under DRI. ITEM 11 NO. REVIEW OF PROGRESS UNDER DRI ADVANCES VIS-À-VIS TARGETS

As per the revised targets at least 10 loans per rural branch per quarter are to be made by all the Scheduled Commercial Banks instead of earlier five loans per branch per quarter. The progress achieved so far is summarized as under:Lending Institutions Public Sector Banks Private Sector Banks TOTAL Targets Sept. 2011 (In Nos.) 11580 480 12060 Achievement Account Amount 1395 143 1395 143 (Amt. ` in Lacs) %age Achievement 12% 12%

Bank-wise position is available at Annexure No. 8 The house may review.

ITEM NO. 12

NATIONAL GOALS GOAL ACH. ACH. Sept. 09 Sept. 10 67% 74% 56% 65% 66% 69% 66% 55% 29% 27% ACH. Sept. 11 73% 63% 66% 50% 23%
Page 22

CD Ratio (Total) CD Ratio (Rural) CD Ratio (S Urban) PS to total Advances Agri. to total Advances

60% 60% 40% 18%

Agenda & Background Papers of 118th Meeting of SLBC Haryana

Direct Agriculture In-direct Agriculture

13.5% 4.50%

21% 8%

20% 7%

18% 5%

DRI Advs. to total 1% 0.006% 0.011% 0.09% Advs. WS Advances to Total 10% 11% 11% 12% Adv. The Bank-wise position under National Goals is available at Annexure No. 9 Highlights of performance of Banking Sector under prescribed National Goals are as under: Under Priority Sector, the performance of the banking system has been commendable as the achievement 50% is well above the prescribed National goal of 40%.
a) b)

Under Agriculture Sector, the achievement is 23 % which is also well above the National goal of 18%. Under Direct Agriculture Sector the achievement is18 % as against target of 13.50% whereas under Indirect Agriculture the achievement is 5% against the target of 4.50%. The ratio of WS Advances to total advances is12% as against the National Goal of 10%. Under DRI Advances, there has been growth of 0.09% but the National Goal of 1 % is yet to be achieved by the banks.

c)

d)

e)

OVERALL CD RATIO The comparative position of overall CD Ratio is as below: Period September 2009 September 2010 September 2011 Observations: During the period under review, Overall CD Ratio of Banks in State of Haryana declined by 1% from 74% as on September 2010 to73% as on September 2011.
Agenda & Background Papers of 118th Meeting of SLBC Haryana Page 23

CD Ratio %age 67% 74% 73%

Variation -2PPs 7PPs -1PPs

CD RATIO – RURAL AREA The comparative position of CD Ratio of Rural Areas in Haryana is as follows: Period Sept 2009 Sept 2010 Sept 2011 Observations: During the review period, the CD Ratio of rural areas declined by 2 PPs from 65 % as at September 2010 to 63% as at September 2011. Deposit 15315 16636 19523 Rural Advances 8616 10874 12258 Variation CD Ratio 56% 65% 63% -11PPs 9 PPs -2 PPs

CD RATIO – SEMI URBAN AREAS The comparative position of CD Ratio of Semi Urban Areas in Haryana is as follows: Period Sept 2009 Sept 2010 Sept 2011 Deposit 19100 20375 24936 Semi-Urban Advances 12673 14088 16446 Variation CD Ratio 66% 69% 66% -6%pps 3%PPs -3%PPs

Observations: During the review period, the CD Ratio of Semi Urban areas declined by3 PPs from 69% as at September 2010 to 66% as at September 2011. This is for information of the house. ITEM NO. 12.1: CD RATIO OF FINANCIAL SYSTEM: (COMMERCIAL BANKS, RRBs, COOPERATIVE BANKS WITH RIDF)
GOAL CD Ratio (TOTAL) September 2009 September 2010 September 2011

Agenda & Background Papers of 118th Meeting of SLBC Haryana

Page 24

-Banking System(CBs & RRBs) -Financial System including Cooperative Bank

60%

67%

74%

73%

60% with 60%

72% 77%

78% 83%

77% 82%

CD Ratio RIDF

(Financial

System)

• Overall CD Ratio in respect of Commercial Banks, RRBs & Cooperative Banks as at September 2011 is 77%.

The CD Ratio shows further improvement by 5PP i.e. from 77 % to 82% when the amount in respect of RIDF i.e. `6587crore as informed by NABARD is included in total credit.

• No district of Haryana is having CD Ratio below 40% • However, CD Ratio of District Ambala (50%), Gurgaon (53%), Sonepat (48%), Narnaul (46%), Rohtak (51%) and Rewari (41%) is still below the stipulated level of 60% which needs further improvement. • The CD ratio of Andhra Bank (47%),BOB(56%) Corp Bank (40%), Indian Bank (27%), State Bank of Hyderabad (59%), State bank of Travencore(16%) Syndicate Bank (46%), United Bank of India (27%), Union Bank of India(52%), HDFC Bank (51%), Karur Vysya Bank (24%), IndusInd Bank (24%) and AXIS Bank (44%) needs improvement as the same is low. The District-wise/ Bank-wise performance has been given at Annexure No. 10 The house may review. ITEM NO. 12.2 CREDIT+ INVESTMENT IN STATE GOVT. BONDS TO DEPOSIT RATIO: After adding the figures of `6587 Crore of investment made by banks in the State Govt. Bonds with total credit of all banks amounting to ` 101002 Crore, the credit + investment to deposit ratio works out to 82%. This indicates that besides credit deployment, large funds have also been invested by the banking system in State Government securities, which are ultimately utilized for the economic development of the State. The Bank-wise position is given at Annexure No. 11
Agenda & Background Papers of 118th Meeting of SLBC Haryana Page 25

This is for information of the house. ITEM 13 NO. PERFORMANCE UNDER ANNUAL CREDIT PLAN 2011-12

The achievement under Annual Credit Plan (2011-12) up to September 2011 is given below:(Amount ` in Crore) Targets for the Ach. for the % Ach. for the period ended period ended period ended September September September 2011 2011 2011 Agri. 15823 13450 85% MSE 3364 3595 107% Others 3106 2424 78% Total 22293 19469 87% Bank-wise/ District-wise position is given in Annexure No. 12.1-12.2 Observations:

As against target of ` 22293 crore upto Sept 2011, Banks have disbursed loans to the order of ` 19469 crore. The achievement comes to 87%. As against target of ` 15823 crore under agriculture & allied sector, Banks have disbursed loans to the order of ` 13450 crore. The achievement comes to 85 %. Banks disbursed loans amounting to ` 3364 crore against the target of ` 3595 crore set forth for Micro & Small Enterprises Sector. The achievement comes to 107%. Banks disbursed loans to the tune of ` 2424 crore under Other Priority Sectors against the target of ` 3106 crore. The achievement comes to 78%.

District wise Analysis The perusal of district-wise progress for the period ended September 2011 under ACP 2011-12, reveals as under: The overall targets have been exceeded in 4 districts namely Faridabad, Panipat, Rohtak & Sirsa & missed by 17 districts.  Similarly, the targets under Agriculture & Allied Sector have been achieved in 4 districts namely Kaithal, Panipat, Rohtak and Sirsa.

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The targets under Small & Micro Enterprises have been exceeded in 8 districts namely Ambala, Bhiwani, Faridabad, Kaithal, Panchkula, Panipat, Rohtak & Sonepat & remaining 13 districts missed the targets.  The targets under Other Priority Sector have been achieved by Faridabad, Fatehabad, Gurgaon, Kurukshetra & Narnaul & missed by varying margins in 16 districts.

Bank wise Progress The analysis of banking group-wise progress reveals as follows:Total Priority Sector
 

As against target of ` 15756 Crore, the Commercial Banks, have disbursed loans amounting to ` 14007 Crore. The achievement works out to 89%. The RRBs have disbursed loans amounting to ` 1898 crore under PS advances as against target of ` 1649 crore, thus showing achievements of 115%. Whereas, the Cooperative Banks have disbursed loans amounting to ` 3325 Crore against targets of ` 4815 crore. The achievement comes to 69%.

Agriculture & Allied Activities

 

As against target of ` 9885 crore under this sector, the Commercial Banks, have disbursed loans amounting to ` 8578 crore, the achievement comes to 87%. The RRBs have disbursed loans amounting to ` 1741 crore under this sector as against target of `1509 crore, thus achieving the target by 115 %. The Cooperative Banks have disbursed loans amounting to ` 3132 crore against target of ` 4430 crore, thus achieving the target by 71%.

MICRO & SMALL ENTERPRISES/ NON FARM SECTOR

 

As against target of ` 3121 crore under this sector, the Commercial Banks, have disbursed loans amounting to ` 3245 crore. The achievement comes to 104%. RRBs have disbursed loans amounting to ` 31 crore under this sector as against target of ` 24 crore, the achievement comes to 128%. The Cooperative Banks have disbursed loans amounting to ` 80 crore against target of ` 145 crore, the achievement works out to 55%.
Page 27

Agenda & Background Papers of 118th Meeting of SLBC Haryana

Other Priority Sector

 

As against target of ` 2750 Crore under this sector, the Commercial Banks have disbursed loans amounting to ` 2185 crore. The achievement works out to 79%. RRBs have disbursed loans amounting to ` 126 crore under agriculture sector as against target of `115 crore, thus showing achievement of 109%. The Cooperative Banks have disbursed loans amounting to `113 crore against targets of ` 240 crore. The achievement comes to 47%. CREDIT VIS-À-VIS

ITEM NO. 13.1: REVIEW OF PRODUCTION INVESTMENT CREDIT

The Convener Bank has collected the position of Crop Loans (production credit) & investment credit under Agriculture Sector. The analysis of the position is as under:Crop Loan/Production Credit Target Achievement % Achievement 11925 9892 83% (Amt. ` in Crore) Investment Credit Achievement % Achievement 3558 91%

Target 3899

The Bank wise & District wise position is available in Annexure No. 12.3-12.4 The analysis of the data given in the above table indicates as under: Out of total Agri. Credit disbursements of ` 13450 Crore, a sum of ` 9892

Crore has been given for production credit.  The credit for investment purposes was disbursed to the tune of ` 3558 Crore against the target of ` 3899 Crore showing an achievement of 91%. The house may review. ITEM NO. 14 GOVERNMENT SPONSORED PROGRAMMES ITEM NO. 14(i): SWARAN JAYANTI GRAM SWAROZGAR YOJNA (SGSY) PERFORMANCE REVIEW – 2011-12 - Progress up to 30.09.2011
Agenda & Background Papers of 118th Meeting of SLBC Haryana Page 28

A) Total Assistance (Amt. ` in Lakh) Particulars 2010- 11 2011- 12 30.09.2010 30.09.2011 No. Amt. No. Amt. Total number of Beneficiaries 10198 Not 8012 NA (both SHGs & Individual Applicable Swarozgaris) to whom loans have been sanctioned Out of which SC Beneficiaries 5632 1619 4168 1706 (Target being 50%) (55%) (52%) Women Beneficiaries 8743 2440 6895 2717 (Target being 40%) (86%) (86%) Handicapped Beneficiaries 120 31 64 25 (Target being 3%) (1.18%) (0.80%) Target of Credit Not 6110 Not 7130 Disbursement Applicable Applicable Total Credit Disbursed Not 3849 Not 2678 Applicable Applicable % age Achievement Not 63% Not 37% Applicable Applicable

B) Through Self Help Groups Particulars Number of Self Help Groups formed Number of SHGs undertaking economic activities Number of members of SHGs undertaking economic activities Out of which SC Beneficiaries (Amt. ` in Lakh) 2010- 11 2011- 12 30.09.2010 30.09.2011 No. Amt. No. Amt. 22569 N.A. 25159 NA 915 9765 5535
N.A. N.A.

733 13359 3987

NA NA

N.A.

NA
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Agenda & Background Papers of 118th Meeting of SLBC Haryana

(Target being 50% of total) Women Beneficiaries (Target being 40% of the total) Handicapped Beneficiaries (Target being 3% of the total) Loan disbursed Subsidy disbursed Total assistance Average assistance per member (Target) Average assistance (Achievement)

(57%) 8505 (87%) 92 (0.94%) 915 Not Applicable Not Applicable

N.A. N.A.

(30%) 6691 NA (50%) 38 NA (0.28%)

2706 2513 733 943 729 3649 3242 ` 25000 Not ` 25000 Applicable ` 37743 Not ` 42860 Applicable (Amt. ` in Lakh) 2011-12 30.09.2011 No. Amt.
N.A. N.A. N.A. N.A. 838 757 181 204 NA NA NA NA

C) Individual Swarozgaris Progress Particulars Number of cases sponsored Cases sanctioned SC Beneficiaries (Target being 50% of total) Women Beneficiaries (Target being 40% of the total) Handicapped Beneficiaries (Target being 3% of the total) Loan disbursed Subsidy disbursed Total assistance Average assistance per member (Target) Average assistance (Achievement) 2010-11 30.09.2010 No. Amt.
1009 435 97 238

28

N.A.

26

NA

162 38 433 200 N.A. ` 25000 N.A. ` 46298

164 39 457 203 N.A. ` 25000 N.A. ` 45312

Agenda & Background Papers of 118th Meeting of SLBC Haryana

Page 30

District-wise position is given in Annexure no. 13.1- 13.3 Observations:

• • • •

As against annual target of ` 7130 lakh for credit disbursement, banks up to September, 2011 have disbursed loans amounting to ` 2678 lakh, the %age achievement works to 37% as against 63% during the corresponding period last year. The targets of average assistance stand achieved both under individual swarozgaris as well as under SHGs. Similarly, the cumulative targets of assistance to women & SC beneficiaries have also been exceeded. However, the benchmark for providing assistance to handicapped beneficiaries has been missed. On cumulative basis, 52% SC beneficiaries have been sanctioned loan against target of 50% under the scheme and 86% women beneficiaries have been sanctioned loan, against the target of 40% under the scheme, whereas the achievement of handicapped beneficiaries is 0.80% against the goal of 3%, which may be due to non-availability of eligible beneficiaries. The House may review the performance.

ITEM NO. 14 (ii)

NATIONAL RURAL LIVELIHOOD MISSION (NRLM)

The Convener Bank has received a copy of the order dated 6th October 2011, issued by Ministry of Rural Development, Govt of India that it has now been decided to rename the National Rural Livelihood Mission (NRLM) as” Aajeevika” with immediate effect. This is for the information of the house. ITEM NO. 14 (iii) PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP)

During current financial year, the progress made by the banks up to 30.09.2011 is as under:(MM ` in lakh)
Agenc Target 2011Fresh Cases Pending Cases Sanctioned Cases

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Page 31

y

12

Case s forwa rded **

as on 01.04.2011 (pertaining to 2010-11)

Disbursed/MM released*

No. KVIC KVIB DIC Total 270 270 360 900

MM 378.38 378.37 504.50 1261.2 5

No. 18 6 24

No. 66 224 250 540

MM 181.65 472.28 394.35 1048.2 8

No. 25 18 92 135

MM 61.42 59.59 104.23 225.24

No. 86 162 244 492

MM 236.47 376.53 396.18 1009.18

Observations: • Upto the period ended Sept 2011, 24 fresh cases have been forwarded to the banks, besides 540 cases pending as at the end of March 2011 have also been carried forward to the current year.
• •

Out of 540 applications forwarded to the banks, 135 cases involving margin money of ` 225.24 lac have been sanctioned by the banks. Banks have disbursed 492 cases involving margin money of ` 1009.18 lac.

All the Member Banks are requested to take immediate steps for the clearance of pending cases at their branches. ITEM NO. 14(iv) SWARAN JAYANTI SHAHRI ROZGAR YOJNA (SJSRY) As the progress under the scheme could not be provided by the department till the finalization of Agenda papers, the comparative position could not be placed. The representative from the office of SUDA Haryana informed telephonically that progress will be provided in the meeting itself as the same is under compilation. Particulars Target Cases Sponsored to banks Cases Sanctioned by banks Cases Disbursed by banks Ach. of sanction vis-à-vis target 2010-11 (Sept 2010) 660 1353 683 536 103% 2011-12 (Sept 2011) 1716 1229 346 147 20%
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Agenda & Background Papers of 118th Meeting of SLBC Haryana

Ach. of disbursement vis-à-vis target

81%

8.56%

DISTRICT-WISE POSITION OF TARGETS VIS-À-VIS ACHIEVEMENT AS AT SEPT. 2011 IS GIVEN IN ANNEXURE NO. 14 All the Banks are requested to achieve the targets under the scheme allocated by the LDMs in each district. The Representative of SUDA is requested to apprise the latest progress. The House may review. ITEM NO. 14(v) IMPLEMENTATION OF THE RECOMMENDATIONS OF THE HIGH LEVEL COMMITTEE TO REVIEW LEAD BANK SCHEME – CONSTITUTION OF SUBCOMMITTEES

The Convener SLBC has received a communication dated 10.10.2011 from RBI, Chandigarh vide which it is desired that SLBC, owing to its large membership, constitute Sub-Committees for Special Tasks to examine the specific issues in depth and should devise solutions/ recommendations for its consideration. It is also advised in the said letter that Sub-Committees be constituted specifically for Govt. Sponsored Schemes, MSMEs, Export Promotion & FIP and hold periodical meetings for focussed discussion on listed agenda. In the 3rd Steering Committee Meeting held on 21.10.2011 following SubCommittees were constituted for different purposes. The house resolved that these committees should have regular members as well as members on rotational basis for participation in the meetings to be convened for discussions on different issues. The detail of Sub-Committees is as under:Sl.N o 1. Purpose for constitution of SubCommittee Govt. Sponsored Schemes Regular Members of the Sub-Committee RBI, NABARD, Convener Bank, Sponsoring Agency, Director IF & CC, SBI, SBOP, OBC, UBI, Members to be on rotation HGB, CBI, Canara Bank,HDFC Bank & ICICI Bank, GGB, AXIS Bank, BOI, PSB, BOB, Corpn. Bank, Indian Bank,
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Agenda & Background Papers of 118th Meeting of SLBC Haryana

Allahabad Bank, Syndicate Bank, Dena Bank 2. MSMEs RBI, SIDBI, Director (Industries), Director MSME, Director IF & CC, Representatives from Haryana Chamber of Commerce & Industries, Convener Bank, SBI, SBOP, OBC, UBI, , CBI, Canara Bank, RBI, EXIM Bank, Representative from Haryana State Small Industries & Export Corporation Ltd., Director IF & CC, Convener Bank, SBI, SBOP, OBC, UBI, RBI, DIF & CC, Convener Bank, SBI, SBOP, Syndicate Bank, Canara Bank, CBI, OBC, GGB, HGB, HGB, CBI, Canara Bank, HDFC Bank & ICICI Bank, GGB, AXIS Bank, BOI ,PSB, BOB, Corp Bank, Indian Bank, Allahabad Bank, Syndicate Bank, Dena Bank, Entrepreneurs of MSMEs CBI, Canara Bank, HDFC Bank & ICICI Bank, , AXIS Bank, BOI,PSB, BOB, Corp Bank, Indian Bank, Allahabad Bank syndicate Bank, Dena Bank NABARD, Allahabad Bank, BOB, BOI, Corp Bank, IOB, PSB, BOM, Indian Bank, Indian Bank, UCO Bank

3.

Export Promotion

4.

Financial Inclusion Plan

House may discuss and approve. ITEM NO. 14 (vi): SELF HELP GROUPS (SHGs)

The performance as at September 2011 is as under:SHGs maintaining SF A/cs 25836 (22692) 19117 (17115) 44953 (39807) Linked % age with bank linked with credit bank credit 17279 67% (15252) (67%) 9781 51% (9112) (53%) 27060 60% (24364) (61%) Women % age of SHGs Women SHGs 17255 67% (15201) (67%) 15528 81% (13886) (81%) 32783 73% (29107) (73%)

SGSY Non SGSY Total

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Page 34

(Figures in bracket are for corresponding period last year) HIGHLIGHTS OF PERFORMANCE
 SHG maintaining SF accounts : There is an increase in number of SHGs

maintaining SF accounts with banks both under SGSY and non-SGSY schemes. The total number of SHGs has increased to 44953 as on September 2011 from 39807 as on September 2010 i.e. an increase of 5146 SHGs showing a growth of 13% during the period under review.
 Credit Linkage : The credit linkage has also improved as 27060 SHGs

have been linked with bank credit up to September linkage of 24364 SHGs upto corresponding period last 2696 SHGs or 11%, which is satisfactory. Bankers improve the performance keeping in view the thrust Inclusion.

2011 as against credit year, i.e. an increase of are requested to further on SHGs and Financial

 Women SHGs : 73% of the SHGs is women SHGs. Since September 2010, 3676

more women SHGs have been added to the existing number of 29107 raising the total number of women SHGs to 32783 as at September 2011. Detailed Bank wise and District wise position up to September 2011 is available at Annexure No. 15.1-15.4 The house may review the performance.

Item No. 15(i)

RECOVERY UNDER PRIORITY SECTOR ADVANCES

The comparative position of sector wise priority sector recovery is as follows:
Sector %age Recovery Sept.09 74 79 70 74 Sept. 10 72 85 72 74 Sept. 11 73 87 77 76 Variation Sept 10/09 - 2 PPs +6 PPs +2 PPs No Change Variation Sept 11/10 1 PPs 2 PPs 5 PPs 2 PPs

Agriculture MSE Other PS Overall PS

(Bank wise recovery is given in Annexure- 16) Observations
Agenda & Background Papers of 118th Meeting of SLBC Haryana Page 35

• The overall recovery of PS Advances as at September 2011 is 76%. • The recovery under Agriculture has shown an increase of 1 PPs from 72% as at Sept 2010 to 73% as at Sept 2011. • The recovery under MSE has increased by 2 PPs from 85% as at Sept 2010 to 87% as at Sept 2011. • Whereas, the recovery under Other Priority Sector has witnessed an increase of 5 PPs from 72 % as at Sept 2010 to 77 % as at Sept 2011. • Some of the banks have not provided the information of recovery under different segments of Priority Sector. Therefore, the actual position of recovery in the State of Haryana under Agriculture, MSME, Territory & overall Priority Sector could not be ascertained. The House may review. Item No. 15(ii) RECOVERY SCHEMES UNDER GOVT. SPONSORED

The comparative position of recovery under various Government sponsored schemes is as follows:
Scheme %age Recovery Sept.09 45 51 58 75 78 Sept. 10 49 54 54 60 71 Sept. 11 37 63 52 78 78 Variation Sept 10/09 +4 PPs +3 PPs -4 PPs -15 PPs -7 PPs Variation Sept 11/10 -12 PPs 9 PPs -2 PP 18 PPs 7 PPs

PMRY/PMEGP SJSRY SGSY SHGs Under SGSY Under other SGSY

than

(Bank wise recovery is given in Annexure- 17

Observations • The recovery under PMEGP has declined from 49% as at Sept 2010 to 37 % as at Sept 2011. • The recovery under SJSRY has shown an increase of 9 PPs from 54% as at Sept 2010 to 63 % as at Sept 2011. • The recovery under SGSY has declined by 2 PPs from 54% as at Sept 2010 to 52% as at Sept 2011. • The recovery of SHG under SGSY has shown an increase of 18 PPs from 60% as at Sept 2010 to 78% as at Sept 2011.
Agenda & Background Papers of 118th Meeting of SLBC Haryana Page 36

• The recovery of SHG under other than SGSY has also shown an increase of 7 PPs from 71% as at Sept 2010 to 78 % as at Sept 2011. The House may review.
ITEM NO. 15 (iii) RECOVERY UNDER HACOMP ACT

The position of recovery certificates as at September 2011 is given hereunder: (Amt. `in Crore) A/cs Amount 2332 34.42 540 10.42 117 1.74 2755 43.10 664 266 824 1001 12.52 6.89 12.69 11.00

Total cases pending as at 30.06.2011 Cases filed during the quarter ended 30.09.2011 Cases disposed of during the quarter ended 30.09.11 Cases pending as at September, 2011 Pendency level Up to 6 months 6 months to 12 months 1 year to 3 years Above 3 years

Bank wise and District wise position of recovery under State Agricultural Recovery Act called HACOMP (Haryana Agricultural Operations & Misc. Provisions) Act, 1973, is given in Annexure No. 18.1-18.2 PERFORMANCE HIGHLIGHTS
 No. of cases pending as at 30.09.2011 are 2755 as against 2332 as at

30.06.2011.  During the quarter under review, banks have filed 540 Recovery Certificate Cases amounting to `10.42crore.  As many as 117 cases amounting to ` 1.74 Crore have been disposed of during the period under review.  1001 cases are pending for more than three years involving an amount of ` 11 Crore. All the LDMs are requested to closely follow up with Revenue authorities and get the pendency cleared at the earliest. The pendency may also be got reconciled with the record available with Revenue Department. Revenue Department, Haryana is also requested to provide support to the Banks/LDMs for clearance of old recovery cases.
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The house may review. ITEM NO. 16 INTEREST SUBSIDY SCHEME URBAN POOR (ISHUP) FOR HOUSING THE

The Government of India, Ministry of Housing & Urban Poverty Alleviation (MH & UPA), has launched the Interest Subsidy Schemes of Housing for the Urban Poor (ISHUP) to address urban housing shortage in the country. The scheme provides for interest subsidy of 5% per annum on loan amount upto Rs. 1 lakh for the economically weaker section (EWS) and Rs. 1.60 lakh for lower income group (LIG) in the urban areas for construction or acquisition of a new house. District-wise progress under the scheme is given at Annexure No. 19. The representative from SUDA is requested to apprise the latest progress under the scheme. The House may discuss. ITEM 17 NO. SWAROZGAR CREDIT CARD SCHEME (SCC) – NODAL AGENCY: NABARD

The progress achieved in implementing Swarozgar Credit Card Scheme up to 30.09.2011 reveals that against an annual target of 10000 SCCs, 2351 cards have been issued which is 23.51% of the annual target. The data received from banks is given in Annexure No. 20 The house may review. ITEM NO. 18 ADVANCES TO INDUSTRIAL SECTOR CREDIT TO MICRO, SMALL & MEDIUM

ITEM NO. 18.1: FLOW OF ENTERPRISES (MSMEs):

In terms of the recommendations of Prime Minister’s Task Force on Micro, Small & Medium Enterprises (MSMEs) under Chairmanship of Shri TKA Nair banks are advised as under; I. Achieve a 20% Year on Year growth in credit amount to micro and small enterprises to ensure enhanced credit flow,

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II. The allocation of 60% of MSE advances to the micro enterprises is to be achieved in stages viz. 50% in 2010-11, 55% in the year 2011-12 and 60% in the year 2012-13, III. Achieve a 10% annual growth in number of micro enterprise accounts. IV. It is further advised that banks should open more SME focused branch offices at different MSE clusters which can also act as Counseling Centers for MSEs. Each Lead Bank of a district may adopt at least one MSE cluster. The comparative position of credit outstanding to MSME is as follows:Particulars Micro Enterprises Small Enterprises Micro & Small Enterprises (MSE) Share of advances to Micro Enterprises / MSE Medium Enterprises (ME) MSME September, 2010 A/cs Amount 158848 4724 (18%) (18%) 54903 8324 213751 13048 74% 2650 216401 36% 3284 16332 (Amt. `in Crore) September, 2011 A/cs Amount 182800 5993 (15%) (27%) 62429 9603 245229 15596 (75%) 10066 255295 (38%) 7567 23163

Bank-wise performance is as per Annexure No. 21.1-21.3 Observations In the State of Haryana, banks up to Sept. 2011 have provided credit to the tune of ` 5993 crore to 182800 Micro Enterprises as against ` 4724 Crore to 158848 units as at Sept. 2010, thus registering a growth of 15% & 27% in terms of number of units financed & outstanding credit respectively.  As at Sept. 2011, the banks have financed 62429 Small Enterprises amounting to ` 9603 crore as against 54903 units amounting to ` 8324 crore as at Sept. 2010.  The share of advances under micro enterprises to total MSE as at Sept. 2011 is 75% against stipulated level of 50%.  Banks up to Sept. 2011 have financed 10066 Medium Enterprises amounting to ` 7567 crore.  Banks in the State have financed 255295 MSME units amounting to ` 23163 crore as against 216401 units amounting to ` 16332 crore as at Sept. 2010.

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The house may review ITEM NO. 18.2: EXTENDING FORMAL CREDIT TO NEW UNITS The Commercial Banks and RRBs are required to add on an average at least five new tiny, small and medium enterprises at each of their semi urban and urban branches per year. Summarized position of new units financed by banks during the period ended Sept. 2011 is as under: Institution Commercial Banks RRBs Total No. of No. of new Per branch new SU/Urban units financed SME a/cs opened Branches 1623 2751 1.70 107 48 0.45 1730 2799 1.62

The above data reveals that 1730 Semi-Urban and Urban branches of commercial banks and RRBs in Haryana have provided finance to 2799 new SME units during the current year up to Sept. 2011. The average per SU/Urban branch is 1.62 units in respect of Commercial Banks and RRBs as against target of 5 Units per SU/Urban branch. Many Banks operating in the State of Haryana have not submitted the data on New SME units financed during the quarter ended Sept. 2011. Bank wise data of semi urban and urban branches and new units financed during the quarter ended Sept. 2011 is placed at Annexure No. 21.4 ITEM NO. 18.3: SPECIALIZED SSI/SME BRANCHES 53 specialized SSI/ SME Branches in Haryana have sanctioned ` 323.03 Crore in 1115 cases during the year ended Sept. 2011 and disbursement has been made in 1088 cases amounting to ` 282.53 Crore, including cases disbursed which were sanctioned during previous quarters. A total outstanding advance as at Sept. 2011 is ` 2250.21 Crore to 16245 units. Bank wise position is given on Annexure No. 21.5

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The house may review. ITEM NO. 18.4: POSITON OF SICK SMEs The position of sick SME units as at Sept. 2011 is as follows: SME units SME units classified as identified as sick as at 30.09.2011 Units Amt. Viable Non Viable Units Amt. Units Amt. 2274 11312 3 427 2271 10885 (Amt. ` in lac) (Out of Units where viable Units) Viability Units under decision yet nursing to be taken Units Amt. Units Amt. 2 426 2 12

The bank wise data is available at Annexure No. 21.6-21.7 ITEM NO. 18.5: Collateral Free Loans Upto ` 10 lakh to MSE The progress of financing by the banks under Collateral free loans upto `10 lakh to MSE sector as at Sept. 2011 is summarized below:(Amount `in Lakh) New MSEs loans upto `10 lakh Out of which collateral free loans No. of units Amount No. of units Amount 9660 21472 4456 10885 (46%) (51%) Bank wise information is as per Annexure No. 21.8 The study of above data reveals that banks have provided loans upto `10 lakh to 9660 MSE units and out of which collateral free loans have been provided to 4456 units, which means the coverage is 51%. ITEM NO.18.6: Credit Guarantee Scheme of CGTMSE: The Credit facility upto ` 100 Lakh sanctioned to MSEs (both Manufacturing & Service Sector) are eligible to be covered under CGTMSE. During the SLBC meetings, all Banks were requested to avail the benefit of the Scheme and to get all eligible units covered under the Scheme. Progress under the scheme up to September 2011 is given below:(Amount `in Lac)
Coverage Coverage 2011Increase in no. %age Cumulative

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2010- 11 upto Sept. 10 A/cs Amt. 1495 13148

12 upto Sept. 11 A/cs Amt. 1098 9203

of cases Sept. 11 / Sept. 10 A/cs Amt. -397 -3944

growth A/cs -26 Amt. -30

position as at Sept. 11 A/cs 9642 Amt. 63953

Bank wise & District wise information of accounts covered under the scheme is given in Annexure No. 21.9 The data reveals that 1098 cases have been covered during the year up to Sept. 2011 as against 1495 cases covered under the scheme during the corresponding period last year showing negative growth of 26%. Total number of applications approved since inception is 9642. ITEM NO. 18.7: Flow of Institutional Credit to Identified SSI Clusters: Credit requirement of identified SSI clusters are being reviewed as a regular agenda item of SLBC Meetings. District Consultative Committees prepare separate Annual Credit Plans for these clusters. The performance of these clusters up to Sept. 2011 is as under: District Clusters Annual Target 2011-12 Amt. `in Crore 741 42 282 36 80 Ach. Upto Sept. 2011 Amt. `in Crore 291 8 117 25 9 %age Ach.

Kurukshetra Gurgaon Karnal Karnal Yamuna Nagar

Rice Milling Auto Mobile Rice Milling Agri. Implements Plywood Industries

39% 18% 42 69 11%

From the table given above, it is observed that performance of banks in the clusters except Agri. Implements (Distt. Karnal) is not satisfactory. The house may review. ITEM 19 NO. CREDIT FLOW TO MINORITY COMMUNITIES UNDER PRIME MINISTER’S 15 POINT ECONOMIC PROGRAMME

PERFORMANCE REVIEW
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The comparative position of outstanding advances to minority communities is given below: Community Muslim Sikh Christian Buddhist Zorastrian Total Outstanding as on Outstanding as Sept. 2009 on Sept. 2010. Account Amount Account Amount 121137 73880 120364 84154 222780 210542 225977 254470 1206 1817 1006 5237 1039 520 366 250 7 8 8 8 346169 286767 347721 344119 (`In lacs) Outstanding as on Sept. 2011 Account Amount 144469 136351 215708 370942 2135 6476 1137 490 49 34 363498 514293

Bank wise data on loans outstanding as at Sept. 2011 is given on Annexure No. 22.3 It is observed that the total outstanding to Minority Community in the State is ` 5142.93 Crore to 363498 beneficiaries up to Sept. 2011 as against `3441.19 Crore as at Sept. 2010 which shows YOY growth of 49 % during the review period. ITEM 20 NO. DATA ON MINORITY COMMUNITIES IN IDENTIFIED DISTRICTS OF MEWAT AND SIRSA

The RBI has identified 121 districts with concentration of Minority Communities, out of which, two districts of Haryana have been identified for this purpose. The progress is as under:-

ONLY DISTRICT MEWAT
(Amount `in Lac) Community Outstanding as on 30.09.10 (Gurgaon including Mewat) A/c 206 Disbursement (01.04.11 – 30.09.11) (Only for District Mewat) Amt. A/c Amt. 413 Outstanding as at 30.09.2011(Only of District Mewat) A/c Page 43 Amt. -

Christians

Agenda & Background Papers of 118th Meeting of SLBC Haryana

Muslims Budhists Sikhs Zoroastrians Total ‘A’ (Total to Minority Communities) Others ‘B’ (Total to other communities) Total PS Advs. in identified District ‘C’ DISTRICT SIRSA

81936 0 1333 0 83475 83475

43810 0 6660 0 50884 335042 385926

22433 0 5 0 22438 7324 29762

14552 0 2 0 14554 4443 18997

83116 0 6 0 83122 83122

44511 0 18 0 44529 22463 66992

(Amt. ` In lac) Outstanding as at 30.9.10 A/cs Amt. 7 3 34 161 00 0 56598 73849 0 0 56950 74013 91042 147992 107274 181287 Disbursement (01.04.11– 30.9.11) A/cs 5 27 23158 0 23190 34280 57470 Amt. 1 34 46756 0 46791 85561 132352 Outstanding as at 30.9.11 A/cs Amt. 5 1 314 205 57312 82053 0 0 57631 82259 100816 158447 168060 250319

Community Christians Muslims Budhists Sikhs Zoroastrians Total ‘A’ (Total to Minority Communities) Others ‘B’ (Total to Other Communities) Total PS Advs.

 As District Mewat has been carved out of Gurgaon District, the progress of advances made to minorities during the half year ended 30.09.2011 is placed for review.  During the period under review 22433 beneficiaries of Muslim community have been extended advance to the tune of Rs. 145.52 Crore.  To other communities Rs. 44.43 Crore has been extended in 7324 accounts.
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 In District Sirsa, the outstanding advances to Minority communities have gone up by 38% as at Sept 2011 compared to the position of Sept 2010.
ITEM NO. FINANCIAL ASSISTANCE TO WOMEN BENEFICIARIES 21 The empowerment of women is one of the Primary objectives of Government of India. RBI has already issued instructions to the banks to advance at least 5% of their Net Bank Credit to Women Beneficiaries. This aspect is being closely monitored at DCC as well as at SLBC levels. The comparative position of advances to women beneficiaries is given below: (` in Crore) Year Balance O/s Increase %age to Net Bank Credit Absolute %age Sept 2009 2921 706 32% 5% Sept 2010 3364 443 15% 5% Sept 2011 4158 794 24% 5% It is observed that Commercial Banks and RRBs have achieved the target of 5% as prescribed by RBI. The Overall Advances to Women Beneficiaries witnessed an increase of `794Crore from `3364Crore as at Sept 2010 to `4158 Crore as at Sept 2011, thus registering a growth of 24%. During the quarter ended Sept. 2011, the Banks have disbursed advances to the tune of `123.03 Crore to 12486 women beneficiaries. Bank-wise data depicting the performance during the year up to September 2011 is given in Annexure No.23 The house may review.

ITEM NO.22:

HOUSING FINANCE

The comparative position of outstanding advances under Housing Finance is as follows; (Amount Rs. in crore) As At Accounts Amount Increase Absolute %age
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September 09 September 10 September 11

137955 167201 150447

7270.37 7883.00 7396.59

1081.98 612.63 -486.41

17.5 8.43 -6.17

(Bank wise position as at September 2011 is given in Annexure No.24.124.3)

During the review period, the outstanding advances under Direct Housing Finance have registered decline of Rs. 486.41 crore from Rs. 7883.00 crore as at September 2010 to Rs. 7396.59 crore as at September 2011. ITEM NO 23: NATIONAL AGRICULTURE INSURANCE SCHEME (NAIS) ITEM 23(i) NO. IMPLEMENTATION OF WEATHER BASED CROP INSURANCE SCHEME (WBCIS) IN PADDY CROP ON PILOT BASIS DURING KHARIFF, 2011

The Office of Director General (Agriculture), Haryana vide their communication no. 5416-19/Stat dated 04.07.2011 has informed that the Weather Based Crop Insurance Scheme will be implemented by the Insurance Companies as under:1. Ambala – II Block of District Ambala by ICICI Lombard GIC Limited. 2. Babbain Block of District Kurukshetra by Agriculture Insurance Co. of India Ltd. 3. Tohana Block of District Fatehabad by IFFCO – Tokyo GIC Ltd. 4. Madlouda Block of District Panipat by HDFC – ERGO GIC Ltd. The Scheme has been implemented as per guidelines issued by Agriculture Department, Govt. of Haryana as well as Govt. of India. The scheme was compulsory for Loanee farmers having sanctioned credit limit for Paddy Crop and optional for Non-Loanee farmers. Modified National Agriculture Insurance Scheme during Khariff 2011 National Agriculture Insurance Company launched modified National Agriculture Insurance Scheme during Khariff 2011 for Paddy Crop in District Karnal and Kaithal on pilot basis. As per the scheme, cut-off date for receipt of consolidated declaration of Loanee & Non-Loanee farmers by Insurance Company from Nodal Banks was 20.09.2011, which was later extended to 27.09.2011 as per Govt. of Haryana notification no. 7778-80/Stat dated 16.09.2011.
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The Kissan Union lodged a protest with the banks by handing over a memorandum to the banks in Karnal wherein it is mentioned that Modified Agriculture Insurance Scheme in its present form cannot be accepted. The representative from NAIS & Agriculture Department, Govt. of Haryana apprised in 3rd Steering Committee meeting held on 21-10-2011 that the scheme is beneficial for the farmers, however, adequate awareness could not be created amongst the farmers about the benefits of the scheme. The house may deliberate. ITEM 24: No. NATIONAL HORTICULTURE HORTICULTURE BOARD MISSION/ NATIONAL

During the period ended Sept 2011, total 12 projects have been received by National Horticulture Board and of this only one project has been processed and remaining 11 projects are pending for decision. District wise/ Bank wise detail of pending cases is given in Annexure No. 25. The house may review. ITEM NO. 25: YEARLY CALENDAR OF HOLDING SLBC MEETINGS

The approved calendar of holding of SLBC Meetings during the current year has already been conveyed to the banks by the Convener Bank with the request to submit the data timely & error free to convene the meeting on the pre-decided dates.

As already informed that the Convener Bank has developed a SLBC Data Portal https://www.mypnb.in/slbc for Collection & Consolidation of Quarterly Progress Report by uploading the data by the banks on-line for the period ended June 2011. All the Member Banks had also been given Password & Login ID for access to the portal in the training programme held at Regional Staff College, Panchkula of Convener Bank.
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As some of the banks have not yet uploaded the data for the period ended June & Sept 2011, it is again requested that the same be done immediately so that System is stabilized. The banks were required to submit data for September 2011 by 15.10.2011 for SLBC meeting fixed for 14.11.2011 through Email/ physical form as also push it electronically to Web Portal but the same was yet to be received from some banks & LDMs very late. The house may discuss. ITEM NO. 26: NON-SUBMISSION OF DATA

Despite the laid down guidelines of Reserve Bank of India for the submission of data prescribed within time limit of 45 days from close of the quarter to SLBC, following banks have submitted the information to Convener Bank on the dates mentioned below against their names The non-submission of data within time schedule makes it difficult for the Convener Bank to compile/ consolidate the data for the preparation of Agenda papers. The Convener Bank also made follow-up through email & telephonically with the defaulting banks but the data for the previous quarter has to be repeated. Sr. Name of Bank No. 1. IDBI Bank 2. Federal Bank 3. Kotak Mahendra Bank Ltd. 4. United Bank of India 5. Karnataka Bank 6. Karur Vysya Bank ltd. Date of submission of Data Not submitted upto 5-11-2011 Not submitted upto 5-11-2011 Not submitted upto 5-11-2011 Not submitted upto 5-11-2011 Not submitted upto 5-11-2011 Not submitted upto 5-11-2011

ITEM NO. : INDIRA

GANDHI

MATRITVA

SAHYOG

YOJNA
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27

(IGMSY)

The Ministry of Women & Child Development has introduced a new scheme for Pregnant & Lactating women called Indira Gandhi Matritva Sahyog Yojna (IGMSY), which is a conditional Cash Transfer Scheme. The Scheme aims to improving the health and nutrition of Pregnant and Lactating women. Under the Scheme, a cash incentive of ` 4000/- is to be provided in three installments to every Pregnant and Lactating Woman, 19 years and above, subject to certain conditions. The amount shall be disbursed through a Bank or Post Office account only. The programme is being implemented in Haryana on pilot basis in Panchkula District through Department of Women & Child Development, Haryana The representative from Department of Women & Child Development, Haryana to apprise the steps initiated in this regard in Panchkula District. ITEM NO. 28 INSTALLATION OF ATMS IN FINANCIAL INCLUSION VILLAGES – APPROVAL OF COMMON VENDOR

In the Special DCC Meeting of district Mewat held on 16.09.2011, it was informed by the LDM that one of the issues emerged in the Video Conference held with Secretary, Department of Financial Services, Ministry of Finance, Govt. of India, was installation of Rural ATMs in the Financial Inclusion Villages by the banks with Common Service Provider. The Lead District Manager Mewat vide his letter dated 22.09.2011 has mentioned that issue of common vendor be got approved in SLBC so that common tender can be floated. The bank-wise detail of 39 Rural ATMs to be installed in the Rural Areas is as under:S.No. 1 2 3 Name of the Bank Syndicate Bank Canara Bank GGB Name of the Villages for Rural ATMs Tauru, Chharora, Ferozpur Namak, Tain, Chilla, Niwana, Agone (7 Villages) Dadoli, Punahana (2 Villages) Ghasera, Sudakar, Revasan, Aakera, Indana, Indri, Jamalgarh, Punhana, Jiwant, Singlheri, Hathan, Gulalta, Saroli, Khoriskhokha, Bhadas, Nagina, Ghaghas, Tigaon, Khori Kalan, Nai, 21 Tauru, Ferozpur Jhirka (22 Villages) Rehna (1 Village) Sahpur Nagli, Tapkan, Devla Nagli, Sanghel,
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4 5

Union Bank of India SBI

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6

Oriental Bank of Commerce

Sohinga Kalan (5 Villages) Khanpur Ghati, Rithath (2 Villages)

It has also been informed by Syndicate Bank that during the course of meeting with Secretary, Deptt. Of Financial Services, Ministry of Finance, Govt. of India, it has been directed to advise all Banks in District Mewat that whenever an off-site new ATM is installed, same should be preferably located in the premises of the Cooperative Banks or Farmer’s Credit Society Office or Primary Agriculture Credit Society office or any other such financial organization so as to derive maximum mileage. All the member banks are requested to deliberate on the issue. ITEM NO. 29 FINANCING OF TENANT FARMERS/ ORAL LESSEES AND SHARE CROPPERS - LEGISLATIVE PROVISION

Convener Bank received a communication from the NABARD, Regional Office, Haryana, Chandigarh, vide letter dated 27.09.2011 that enactment of a Law on the lines of Government of Andhra Pradesh be taken up with the State Government and include this as Agenda item in next SLBC meeting. This will facilitate adequate provision of institutional credit to tenant farmers/ oral lessees and share croppers in the State. The Official from NABARD may brief the house about the same and House may deliberate. ITEM NO. 30: ANY OTHER ISSUE WITH THE PERMISSION OF CHAIR. ########

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ITEM NO. 31 PERFORMANCE IN COMMITTEE NORMS

IMPLEMENTATION

OF

NAYAK

As on September 2011, Banks have sanctioned working capital limits to 4877 small manufacturing units amounting to ` 1079.76 Crore out of which 4163 working capital limits were sanctioned as per Nayak Committee Norms. Thus, banks have sanctioned 85% cases as per Nayak Committee Norms during the period under review. Bank-wise data is given in Annexure No. 26. This is for information of the House. ITEM NO. 32 GOLDEN JUBILEE RURAL HOUSING FINANCE SCHEME OF NATIONAL HOUSING BANK

The comparative position under the scheme is as under: Period Sept 2009-10 Sept 2010-11 Sept 2011-12 Disbursements A/cs Amt. 3005 3120 869 118 102 39 (Amt. ` in Crore) SC/ST Share A/cs %age to total no 176 6% 214 7% 55 6%

The Banks have disbursed ` 39Crore to 869 beneficiaries during the period ended Sept. 2011 as compared to `102Crore disbursed to 3120 beneficiaries during same period of last year. Out of 869 beneficiaries, the share of SC/ STs is 6 %. Bankers are requested to further increase the credit disbursement under this sector as loans are fully secured and percentage of Recovery is also satisfactory. As per the guidelines, banks should include all the housing loans made in rural areas under this scheme irrespective of the amount of loan advanced. The data provided by Banks is given in Annexure No. 27. ITEM NO. 33 GENERAL PURPOSE CREDIT CARD SCHEME (GCC)

It is observed that the banks have issued 40810 cards amounting to ` 9913.62 lac up to 30.09.2011 since inception of the scheme. Since there is great thrust of RBI/ Government of India on total Financial Inclusion, banks are requested to issue maximum number of GCCs as the maximum amount under the scheme is only ` 25000/- and the procedure for identification and issuance of cards is very simple. The data received from banks is given in Annexure No. 28.
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ITEM NO. 34

GOVERNMENT SPONSORED IMPLEMENTED THROUGH NABARD

SCHEMES

BEING

The Regional Office of NABARD, (Haryana) Chandigarh has informed that there are total 6 types of credit linked Govt. sponsored schemes, where subsidy is routed through NABARD. The Cumulative Position of sanctions under various Govt. Sponsored Programmes implemented through NABARD, in the State of Haryana is as under: (` In Lacs) S. No. 1. 2. 3. 4. 5. 6. Category Cold Storage Rural Godown ACABC CLCSS AMI NPOF Cases 113 1243 3 235 824 129 Financial Bank Subsidy Outlay Loan Sanctioned 13575.96 7804.66 2573.89 30756.12 20659.53 4380.45 26.9 14.2 6.93 16489.49 9484.16 1228.21 20906.09 14236.46 3768.11 981.16 593.70 148.88

This is for information of the members. ITEM 35 NO. FARMERS’ CLUBS FORMED BY BANKS

The comparative position of Farmers’ Clubs formed by the banks in the State of Haryana is as under: Year As on Sept. 2009 As on Sept. 2010 As on Sept. 2011 Number 1477 1699 2119 Absolute Increase 214 222 420

Banks have formed 2119 Farmers’ Clubs up to Sept. 2011 (Cumulative) as against 1699 up to Sept. 2010. However, out of 2119 clubs, 1972 are active and 147 are dormant. All Banks are requested to form more such clubs and create awareness amongst farmers about the banking facilities and help them in becoming knowledgeable farmers. This will also help in bankers’ drive towards Complete Financial Inclusion. NABARD is also requested to advise their DDMs to coordinate with LDMs for launching of these Clubs wherever launching is pending.
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Bank wise position is given at Annexure No. 29. ITEM 36 NO. SCHEME FOR FINANCING FARMERS FOR PURCHASE OF LAND FOR AGRICULTURE PURPOSES.

The data reveals that 99 farmers were sanctioned loans with disbursement of ` 5.12 Crore for purchase of land during the current financial year upto Sept 2011. The progress has been reported by PNB (3), Syndicate Bank (2), HGB (30), HARCO Bank (3), HSARDB (58) & Canara Bank (3). Bank-wise position is given at Annexure No. 30. This is for information of the members. ITEM NO. 37 ARTISANS CREDIT CARD SCHEME (ACCs)

Upto Sept. 2011, the banks have issued 194 cards amounting to ` 217.23 lac. The cumulative position under ACC scheme since inception is 4525 cards amounting to ` 2812.27 lac of which 698 cards are covered under CGTMSE with an amount of ` 292.11 lac. Major participating banks in the scheme are PNB (2405), SBOP (729), Syndicate Bank (335), SBI (417), Bank of Baroda (134), Bank of India (163), OBC (59) and UCO Bank (91). The data also reveals that some of the banks have not implemented the scheme so far. The data received from Banks is given in Annexure No. 31. ITEM NO. 38 PROGRESS OF CASES FILED UNDER LOK ADALATS

It is observed that 613 cases involving ` 183.41 Lac were filed before the Lok Adalats out of which 266 cases amounting to ` 79.34 Lac were settled during the year upto Sept 2011. Bank wise data is given in Annexure No. 32. ITEM NO. 39 CREDIT FACILITIES GRANTED TO EX-SERVICEMEN AND WIDOWS OF EX-SERVICEMEN

It is observed that Banks have sanctioned 3029 cases amounting to ` 2584 lac during the year ended Sept. 2011. Disbursement has been made in 3026 cases
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amounting to ` 2545 lac. Loans outstanding as at 30.09.2011 were ` 22325 lac in 42976 cases as compared to ` 19527 lac in 42238 cases as at 30.09.2010. Bank-wise and district-wise data is given on Annexure No. 33.1-33.2 ITEM NO. 40 L LOANS GRANTED TO DISABLED PERSONS

From the data, it is observed that banks have disbursed ` 273 lac to 252 borrowers up to the period ended Sept. 2011. (Amt. `in lac) During the year ended Sept. 2011 Sanctioned Disbursed A/c Amt. A/c Amt. 270 308 252 273 Bank wise data is given on Annexure No. 34. ITEM 41 Area Category Rural Semi-Urban Urban Total NO. POSITION OF ATMs INSTALLED BY BANKS IN THE STATE OF HARYANA ATMs as on 31.03.2011 197 424 1084 1705 ATMs installed during the year upto Sept. 2011 34 61 115 210 ATMs as on 30.09.2011 231 485 1199 1915

Bank wise position is given on Annexure No. 35. ITEM NO. 42 PROVIDING KISAN CREDIT CARDS (KCCs) TO ALL THE ELIGIBLE & WILLING FARMERS

Position as on 30.09.2011: S.No. 1. 2. 3. 4. Particulars KCCs outstanding as at 31.03.2005 KCC issued since inception of the Scheme Amount Sanctioned Outstanding Card Nos. Data 1447178 Amount outstanding `5224.69 Crore 2802030 ` 24132.66Crore 1927829
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5.

Amount Outstanding

` 15575.44 Crore

The number of farmers as per the data available with the Agriculture Department, Haryana, is as under:Sr. No. 1. 2. 3. Classification of Farmers Small Farmers Marginal Farmers Other Farmers Total Numbers 2.94 lakh 7.04 lakh 5.30 lakh 15.28 lakh

It may be observed from the above data that the no. of KCCs outstanding as on 30.09.2011 is more than the no. of farmers in the State. The difference may be on account of issuance of more than one KCC to a farmer family depending upon the land ownership in the Revenue Record provided by the farmer to the Lending Institution. This is for the information of the House. Bank-wise data of progress under Kissan Credit Card Scheme as at 30.09.2011 is given in Annexure No. 36. ITEM NO. 43 IMPLEMENTATION OF CAPITAL SUBSIDY-CUM-REFINANCE SCHEME FOR INSTALLATION OF SOLAR OFF-GRID (PV) – DECENTRALIZED APPLICATIONS UNDER JNNSM

GIST OF THE SCHEME Background The Ministry of New & Renewable Energy (MNRE), Government of India has introduced a subsidy linked credit scheme for Solar Off-grid (Photo-voltaic & thermal). The scheme provides for routing the capital subsidy & the interest subsidy on bank loan availed by the clients from the banking system for solar energy conversion/ user systems and devices under the scheme through NABARD. Objectives To promote off-grid application of solar energy both (PV & Solar Thermal) and to encourage replacement of non-renewable energy sources like fossil fuels, kerosene and diesel with solar energy to energy requirement. Scope/ Coverage of the Scheme The scheme will be co-terminus with phase-I of the Jawaharlal Nehru National Solar Mission i.e. up-to March 2013 and is applicable throughout the country.
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Models/ Systems MNRE (Ministry of New & Renewable Energy) in consultation with IREDA & NABARD has approved 11 models. Eligible Institutions All commercial banks including private banks and RRBs are eligible to avail refinance from NABARD. Capital Subsidy Presently the capital subsidy would be to the tune of 30% of benchmark subject to the boundaries conditions. Release of Subsidy The eligible capital subsidy would be released upfront to the banks on receipt of the drawl application format after sanction of the loan by the bank. The capital subsidy component would, however, be released to the supplier on behalf of the borrower by the financing bank. Margin Money – Borrower is to contribute 20% of the project cost. Loan Period – Maximum period not exceeding 5 years with minimum locking period of 3 years for availing the benefit of subsidy. Rate of Interest – 5% Per Annum. Security – As per the existing RBI guidelines. Refinance and Repayment Schedule The banks would be eligible to draw 100% of the loan outstanding as refinance from NABARD on an automatic basis. The refinance would carry an interest rate of 2% p.a. Repayment of refinance alongwith interest would be made by the banks to NABARD on a half-yearly basis. Monitoring MNRE/NABARD/IREDA will monitor the scheme.

ITEM NO. 44

CASES SPONSORED BY HARYANA SCHEDULED CASTES FINANCE & DEVELOPMENT CORPORATION

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In the 117th SLBC meeting held on 10.08.2011 while reviewing the progress of disposal of cases sponsored by Haryana Scheduled Castes Finance & Development Corporation, it was observed that large no. of cases were pending in the bank branches for disposal and banks were requested to expeditiously dispose of the same. However, from the position of pending cases as at September 2011 received by our office, it has been noticed that 9199 cases out of 14848 cases sponsored to different banks were still pending. The detail of pending cases district-wise is given on Annexure no. 37. The Controlling Heads of all Banks are requested to advise branches of their banks in Haryana to dispose of the cases on merits within the prescribed time frame. Lead District Managers are also requested to review the progress under the scheme in DCC/ DLRC Meetings. HSCFDC Department, Govt. of Haryana is also requested to advise their District Manager to personally visit the branches where the pendency is old and is on higher side. The house may discuss. ITEM NO. 45: FINANCING TO PERSONS WITH DISABILITY (PwDs)REFINANCING BY NATIONAL HANDICAPPED FINANCE AND DEVELOPMENT CORP (NHFDC) TO PUBLIC SECTOR BANKS/ REGIONAL RURAL BANKS UNDER CREDIT GUARANTEE SCHEME(CGS)

The Managing Director, Haryana Backward Classes and Economically Weaker Sections Kalyan Nigam, convened a meeting to discuss the modalities and scope for implementation of collateral free lending to PwDs under Credit Guarantee Scheme. The meeting was chaired by Shri Harsh Bahl, IIS, CMD, NHFDC and representatives, among others, from our office, both RRBs in the State of Haryana also attended the same. It was apprised in the meeting that there were 4.55 lakh PwDs in the State and approximately 7000 have so far been financed by different agencies. In order to boost lending to PwDs, Govt. of India has launched Credit Guarantee Scheme under which collateral free loans are to be provided. Besides the lending, bankers will be refinanced by NHFDC. The main features of the scheme of NHFDC to promote Socio Economic Development of PwDs are as under:1. The PSBs & RRBs will provide loan to the persons with disability (PwDs) as per the norms and provisions of the Credit Guarantee Scheme of Government of India. Guarantee cover is provided under Credit Guarantee Scheme. Hence, there is no need to take collateral security from the borrower.
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2. The loan to eligible persons with disability (PwDs) will be provided by PSBs/

3. 4.

5.

6. 7.

RRBs at the National Handicapped Finance & Development Corporation (NHFDC) interest rates. The applicant should have a certificate for 40% or more disability and the maximum loan shall be limited to ` 25 lakhs. The PSBs/ RRBs will be allowed to retain 3% interest margin as per the provision of the lending policy of NHFDC. NHFDC will refinance all such loans given to eligible persons with disabilities by the PSBs/ RRBs. The refinance shall be repaid by PSBs/ RRBs in accordance with the schedule of repayment/ quarterly demand notices raised by NHFDC. Under this collaborative arrangement, NHFDC will not insist on guarantee from the implementing agency or State Government. Also the implementing agency will not take any collateral guarantee from the beneficiaries as stipulated in the Credit Guarantee Scheme. The one time Guarantee fee and annual service fee under Credit Guarantee Scheme will be charged as per the norms and procedure of the PSBs/ RRBs. In case of default by the borrower, the lending PSBs/ RRBs can recover upto 85% of loan under procedures laid down in Credit Guarantee Scheme

Two RRBs in the State of Haryana and our Bank, being the lead Bank have been identified for lending to PwDs under the above scheme. It was also apprised in the meeting that NHFDC has already taken up the matter with our Corporate Office for associating our bank under the scheme on Pan India basis. Keeping in view the interest margin of 3% available to the banks as also the guarantee cover upto 85% of the loan amount in case of default, we request you to examine the scheme for implementation by the bank branches in the State of Haryana and decision may kindly be advised to us. ______

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